Decision details

Bus Shelters contract

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Decisions:

Cabinet received a report seeking approval to the proposed arrangements to put in place a new concession contract with the incumbent supplier to replace the existing concession contract for the cleaning and maintenance of, and advertising on, bus shelters.

 

Commercial bus shelters in North Tyneside, including all those which bore advertisements, were maintained under a concession contract between the Authority and an external supplier. The existing contract did not have provision to generate revenue for the Authority. It also pre-dates the Concession Contract Regulations 2016, which provided greater clarity in relation to distinct types of contracts where the risk in the delivery of the works or service was passed to the contractor in exchange for potential commercial gain from use of the Authority’s publicly owned asset. The existing contract did not include a specific mechanism to maintain ongoing compliance with these regulations.

 

For these reasons and bearing in mind the supplier’s desire to invest in the updating the asset by installing digital advertisements, it was considered preferable to seek to refresh the contractual arrangements at this stage.

 

Discussions with the incumbent supplier over some time had indicated a likelihood that it would be possible to agree a new contract on new terms. It was anticipated that the new terms would involve the supplier having the possibility to install digital advertisements, subject to it securing any necessary approvals such as planning permission, and to remove poster advertisements, while retaining and continuing to maintain existing shelters. Replacing the existing contract with a new contract would also support ongoing compliance with relevant procurement regulations. It was therefore proposed to continue discussions with the incumbent supplier with a view to entering a new concession contract, on new terms, with the incumbent supplier, which would automatically supersede the existing concession contract.

 

The cleaning and maintenance of shelters not covered by the existing contract would continue to be arranged by Nexus who currently had contracts in place for this work and would undertake any procurement required to ensure the continued provision of this service on behalf of the Authority.

 

Cabinet considered the following decision options: to accept the recommendations set out in paragraph 1.2 of the report; or alternatively, to not accept the recommendations.

 

Resolved that (1) the Authority’s existing concession contract for the provision of bus shelters, including cleaning, maintenance and advertising on bus shelters, to be replaced with a new concession contract with the incumbent supplier be agreed;

(2) officers continue discussions with the incumbent supplier on the basis of (1) above; and

(3) the Head of Environment, Housing and Leisure, in consultation with the Deputy Mayor, the Cabinet Member for Environment and Transport, the Head of Corporate Strategy and Customer Service, the Head of Law and Governance and the Head of Resources, be authorised to finalise the details of any new concession contract and if successful to make arrangements for the Authority to enter into the proposed new concession contract which would automatically supersede the existing concession contract.

 

(Reasons for decision:  A new contract for bus shelters cleaning, maintenance and advertising would be expected to have positive outcomes for bus passengers through the continued provision of shelters while supporting ongoing compliance with relevant procurement regulations and has increased potential for income generation compared with current arrangements.)

 

Report author: Philip Scott

Publication date: 09/04/2021

Date of decision: 06/04/2021

Decided at meeting: 06/04/2021 - Cabinet

Accompanying Documents: