{meta} Decision - Request for approval - Contract renewal - Over 100kW Electricity and Unmetered Street Lighting

Decision details

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Decision:

Salford City Council - Record of Decision

 

I Paul Dennett, the City Mayor, in exercise of the powers contained within the City Council constitution do hereby:

  1. Approve that the contract for the supply of unmetered public lighting be awarded to Scottish & Southern electric (SSE). The contract will commence 1 April 2019 for a 24 month period.
  2. Approve that the over 100kW contract for the supply of electricity be awarded to Haven Power. The contract will commence 1 April 2019 for a 24 month period.

The Reasons are following the procurement of the energy contracts via a fully compliant Manchester multi-supplier framework, the above suppliers submitted the most overall economically advantageous contracts. It is anticipated the 24 month contract durations for the unmetered public lighting and over 100kW electricity supplies will result in an overall cost increase of £307,622 and £519,727 respectively per annum.

Options considered and rejected were 12 month fixed contract durations as opposed to the 24 months due to relatively small margin of less than 1% and the potential risk of a significant increase in energy prices in the short term.  The 24 month contracts therefore provide budget certainty at time of rising energy prices.

The contract agreed for both unmetered public lighting and over 100kW electricity are 100% green, therefore showing Salford City Council’s support for the generation of electricity from renewable sources to tackle climate change.

Assessment of Risk           Low

The source of funding is general fund revenue budget and schools responsible for own funding.

Legal Advice obtained from Tony Hatton, Principal Solicitor

Financial Advice obtained from Gemma Singleton, Finance Officer

Procurement Advice obtained from Jennifer Hilton, Category Manager

Contact Officer: Majid Maqbool                         Tel No 607 6987

 

This decision is not subject to consideration by another Lead Member

The appropriate scrutiny panel to call-in the decision is the Growth and Prosperity Scrutiny Panel and the Overview and Scrutiny Board.

 

Signed:         PAUL DENNETT                          Date:    06 March 2019  

                     City Mayor

 

 

*         This decision was published on 06 March 2019.          

*         This decision will come in force at 4.00 pm on 13 March 2019 unless it is called-in in accordance with the Decision Making Process Rules.

 

Publication date: 06/03/2019

Date of decision: 06/03/2019

Decided at meeting: 06/03/2019 - Procurement Board

Effective from: 14/03/2019

Accompanying Documents: