Decision details

FDC require a new streetlight service provider to ensure the continued safe operation and maintenance of the Council’s streetlight assets.

Following a national tendered exercise and completion of a detailed evaluation and analysis of all tender returns, taking into consideration both price and quality for both routine maintenance and replacement works, it is recommended to award and appoint Woodstock Streetlighting Services Ltd as the Council’s new streetlight service provider.

The appointment shall be for an initial period of 3 years with the option to extended for a further two years subject to satisfactory contractor performance and agreement by both parties.

It is requested that the Portfolio Holder delegates authority to the Engineering Manager to extend the contractual agreement for a further two years pending satisfactory contractor performance and providing the contract value is not estimated to exceed the CMDN threshold. Should the contract value look to exceed the value of the CMDN within the further two-year extension period, further governance will be sought.

Decision Taken

To approve the contract award and appointment of Woodstock Streetlighting Services Ltd as the Council’s new streetlight service provider.

The appointment shall be for an initial period of 3 years with the option to extended for a further two years subject to satisfactory contractor performance and agreement by both parties.

It is requested that the Portfolio Holder delegates authority to the Engineering Manager to extend the contractual agreement for a further two years pending satisfactory contractor performance and providing the contract value is not estimated to exceed the CMDN threshold. Should the contract value look to exceed the value of the CMDN within the further two-year extension period, further governance will be sought.

The appointment of a new streetlight service provider is necessary to ensure the continued safe operation and maintenance of the Council’s streetlight assets and to mitigate risk of injury or harm to the public. The contract will also be able to facilitate streetlight replacement and upgrade works, informed either by cyclic testing or life cycle planning, or to reduce energy and maintenance costs.

The District Council has a number of streetlight assets that require replacement or upgrade over the next 5 years. In addition, many of the Parish Councils also have lighting assets which are end of life and will require replacement or upgrade works undertaking.  

District Councils and many Parish or Town Councils have the power to provide lighting as Local Lighting Authorities. The empowerment is by means of the Public Health Act 1984 or the Parish Councils Act 1957.

The provision of lighting on adopted highway falls under section 97 of the Highways Act 1980, however there is no duty on a local lighting or highway authority to provide lighting.

Where existing adopted streetlight assets are in place it is a legal duty of the Local Authority to suitably maintain them and ensure they are electrically and structurally compliant.  Reference can be made to Well Managed Highways Infrastructure Code of Practice 2016, GN22 Asset Management Toolkit – Minor Structures, and IET Electrical Regulations BS 7671:2018+A2:2022.

The Council’s constitution references under table 4 paragraph 74 - To manage the Council’s property and engineering assets. To undertake the Council’s asset management functions.

The Council’s lighting assets have in the past been managed through a shared service agreement with Cambridgeshire County Council. When the shared service agreement ended with the County Council in around 2006, Fenland took back control of its highway related assets which included lighting.

Between 2006 and 2011 Fenland managed its streetlight assets at arm’s length through a service level type agreement with Cambs County Council and their term maintenance/PFI streetlight contractor. This arrangement was based on a set fee per streetlight per year for all routine maintenance works and services, with extra over costs requiring FDC approval for replacement and upgrade works. A similar type of arrangement continued directly with the County Councils PFI contractor for a further 4 years up until 2015.

With an aging lighting portfolio many assets had reached end of life, and the County Council’s contractor was deemed to be providing poor service, prioritising CCC work over that of FDC needs. The set fee for each streetlight was also found to be expensive, and some services being paid for under the agreement by FDC were not being routinely undertaken.

The Council’s Engineering Team took back responsibility for the management and maintenance of FDC’s lighting assets in 2016. With many assets reaching end of life and requiring replacement or upgrade, the Engineering Team tendered a streetlight services contract which came into effect in July 2018. The contract was for a 3-year period with the option to extend for a further 2 years which was agreed up until July 2023. Due to FDC internal resources and ongoing capital funded streetlight replacement works the contract was extended further under an exemption agreement and is scheduled to end on 3^rd November 2024.

Prior to writing and tendering a new streetlighting services contract, the Engineering Team undertook a soft market testing exercise in 2023 to gauge service provider interest and to explore other service provision options such as full external management and service provision based on a set fee per lighting asset per year. Both proved to be expensive models with maintenance and management costs being 2-3 times higher than that enjoyed over the last 5 years.

There isn’t a ‘do nothing’ option. Whilst it is not mandatory for a Council to provide streetlighting, it is mandatory to ensure that existing streetlights are maintained in a safe condition. This includes routine electrical and structural integrity testing.

With external service provision having been explored, the status quo approach to tender a new streetlight contract was found to represent best value for money and has proven to be cost effective in recent years. The new tendered contract will ensure FDC receives good value for money at current market rates and will provide a mechanism for FDC to complete any capital funded streetlight replacements and LED upgrade works.

During the course of the existing streetlight contract, global events have resulted in huge increases in energy, labour and material costs. It is therefore inevitable that costs for the new streetlight service contract have increased and an uplift in the region of 15% is to be expected. 

With experienced streetlight professionals within the Engineering Team, the Council can ensure they meet any mandatory and regulatory requirements for the maintenance and management of their lighting assets. In addition, streetlight services will continue to be offered to the seven Parish Councils and Clarion Housing Association under SLA agreements. The existing SLA agreements will need to be suitably amended to reflect the new streetlight contract offer and should be proposed on a year on year rolling agreement.