Decision details

Following Cabinet’s approval to convert the Council’s street lights to LED in October 2018, Officers have carried out the necessary work to agree the legal and commercial aspects of the Change Agreement and are now ready to proceed to the execution of the Deed of Variation to the PFI Contract.

It was AGREED that:

1.    To approve the final negotiated position with Surrey Lighting Services and authorise them to proceed with the change protocol with their subcontractor, Skanska, and the Principal Lender.

2.    Subject to no material amendments as a result of the above process, the execution of the Deed of Variation and associated documents to enact the Street Lighting LED Conversion Programme.

The preferred solution was well developed between the 2 Cabinet reports being presented (January 2018 and October 2018) with an estimated price of £20.4 million to complete the work over a 3 year period delivering annual savings of £2 million in energy costs once lights were converted (at 2018/19 prices).

The revised price is £19.2 million.  This reduction of £1.2 million is a combination of:

• Clarifying the scope and reducing risk and their associated costs
• Programming work to take advantage of existing maintenance regimes where costs have already been covered under the PFI contract
• Negotiating improved prices for certain aspects

Alternative options were considered as part of the original Cabinet papers in 2018.

None.