Agenda item

The joint report of the Executive Director of Place (Croydon) and Executive Director, Resources & Regeneration (Lewisham) is attached.

The Director of Public Realm (Croydon Council) noted that the report outlined in detail the performance of the Service Provider for the PFI contract and gave an overview of key areas.

Members noted that the Core Investment Programme (Performance Standard 1) had been completed in 2016 with all street lights having been changed and, as such, the contract had moved into maintenance. In terms of planned maintenance, inspection and testing (Performance Standard 2) details were provided at paragraph 3.4 of the report and concentrated on cleaning, electrical testing and visual inspections. As the contractor had achieved the performance level of 99% no financial adjustments had occurred.

Performance Standard 3 (Operational responsiveness and reactive maintenance) was discussed and Members noted that there had been a low level of faults being reported and that emergency faults were being rectified within the required timeframe. However, it was recognised that not all non-emergency faults were being attended in time and that a financial adjustment had been applied.

The Director of Public Realm stated that Performance Standard 4 (Contract management and customer interface) required 95% of all phone calls to be answered within 25 seconds by a person had been met. Whilst difficulties had been experienced, Skanksa had not gone below the contract threshold and the contract managers at the councils had worked with the provider to identify difficulties.

In terms of working practices (Performance Standard 6), the Director of Public Realm noted that no penalties had been levied as it had been found that the provider was performing well in terms of health and safety issues for its own staff and that site conditions were being monitored and being kept in a safe condition for residents.

The Director of Public Realm highlighted section five of the report, financial implications, which stated that under the Co-Operation Agreement the Committee was required to submit final estimates for the contract to each council no later than 30 November and that the final budget was to submitted annually by 15 March. It was noted that the budget for the contract and committee was split 64% (Croydon) and 36% (Lewisham) as per a formula.

Councillor Sophie McGeevor arrived at 6.51pm.

In response to Member questions the Director of Public Realm stated that if there were concerns regarding light levels then this could be raised with the contractor and if levels were below the required standard the contractor would be responsible and  changes could be made to ensure the lighting level was sufficient.

Members were informed that financial forecasts were based on inflation and the PFI agreement. Officers stated that when the PFI was reviewed in 2020 they would ensure it delivered for both councils. Officers further confirmed that a financial forecast would be taken to the next meeting of the Committee for Members to consider.

Members noted that the Service Provider was efficient and was effectively meeting the KPIs. A good relationship with UK PowerNetworks was credited for enabling the contractor to undertake repairs quickly.

Members queried whether there was an opportunity for the lighting stock to be greener as both councils had declared Climate Emergencies and energy efficient lighting was one way to tackle climate change. It was noted that there was the ability to reduce light levels on roads and that LED lighting could be implemented. The challenges in relation to LED lighting was that it would cost in the region of £10m to change the lighting on the network and that money would not be realised through savings. If lighting was to be changed to LED as the lighting was required to be replaced a variation in the contract with Skanska would be required. The Director of Public Realm confirmed a briefing paper on the differences of LED versus the current lighting would be circulated to Members which would help with discussions on how the council could be more sustainable in future.

The Director of Public Realm stated that energy procurement was not part of the contract and that it could be reviewed. There was a pan-London review of energy which was looking at getting the right tariff for energy. It was suggested that this would be the most efficient way of getting energy for street lighting in future.

Members requested that there be a discussion ahead of the committee meeting in October 2020 on additional items to be discussed at the meeting.

The Committee RESOLVED to:

1.     Note the performance of the Service Provider in respect of the street lighting PFI for September 2018 to August 2019; and

2.     Approve the proposed unitary charges for 2019/20 of £2.567m for Croydon and £1.44m for Lewisham (based on 64% to 36% split).