Decision details

RESOLVED:

1.    That the application of the contract mechanism to refinance the Street Lighting contract which will result in a saving to the Council in the amount it pays for these services either as an annual cost reduction, a one-off saving or a combination of both be approved in principle.

2. That the final decision be delegated to the Executive Director for Environment, Transport and Infrastructure (ETI) and the Executive Director for Resources, in consultation with Cabinet Member for Transport and Cabinet Member for Resources.

Reason for Decision:

The principal of refinancing the street lighting PFI contract has been explored a few times over the past 10 years and until now any financial benefit from doing so has been outweighed by the costs associated with the refinancing itself.  Despite the latest review having been conducted in the months since Covid-19 has impacted the Country, the refinancing gain available has improved significantly.

The balance of the financial return from refinancing is assessed to outweigh any amended/increased risk to the Council.

If the Council were not to proceed with the refinancing exercise, it would be paying more for the service than it needed to and so would not be securing Best Value.

[The decisions on this item can be called in by the Communities, Environment and Highways Select Committee]