Issue - meetings

Water Utility Procurement Plan

 

 

Meeting: 25/07/2019 - Cabinet (Item 25)

25 Water Utility Procurement Plan pdf icon PDF 99 KB

Report of the Head of Corporate Resources

Minutes:

 

The Cabinet considered the report of the Head of Corporate Resources that detailed the options available to Sefton Council in the procurement of water services, with a subsequent recommendation that the Council becomes “Self-Supply” in the water market and appoints a managing agent as partner for market entry, data collection and billing.

 

Decision Made:  That:

 

(1)

the purchase of Water and Wastewater Wholesale services directly from United Utilities as the sole wholesale provider for all Council buildings, including all Local Authority supported schools, and that this service be made available to partners (New Directions and Academies) currently included in existing utility supply contracts, be approved;

 

(2)

an advanced request for a quotation exercise to appoint a management agent, that will be published in the Governments Contracts Finder and on the chest portal, for a contract duration of 2 years, be approved;

 

(3)

authority be delegated to the Head of Corporate Resources in consultation with the Cabinet Member - Regulatory, Compliance and Corporate Services to award the contract for a managing agent resulting from the procurement, be approved;

 

(4)

authority be delegated to Head of Corporate Resources and the Head of Strategic Support for the review, approval and signature of the Water Supply and Sewerage Licence Application and Wholesale Contract for a 2-year period, be approved; and

 

(5)

the pilot project be reviewed and the results reported to the Cabinet Member for Regulatory, Compliance and Corporate Services six months prior to its end date, be approved.

 

Reasons for the Decision:

 

These recommendations will allow the Council to move away from its current ‘deemed’ contract rates and comply with Public Contracts Regulations (2015), achieve the largest potential savings from the options examined and have maximum control over cost saving activities that rely on accurate billing. In  addition the Council will have:

 

·       voting rights as a market participant, allowing Sefton Council to directly influence the market;

·       a direct relationship with the wholesaler for quicker issue rectification;

·       more regular water meter readings and improved provision of water consumption data; and

·       access to specialist software to allow Sefton Council and site managers to more efficiently and effectively manage water consumption.

 

 

Alternative Options Considered and Rejected:

 

Do nothing

Remaining on deemed retailer rates currently does not provide best value for Sefton.Remaining on deemed rates also conflicts with our requirements under the Public Contracts Regulations (2015).

 

Switch retailer

Not considered cost effective and unlikely to yield significantly large saving for retail services due to OJEU procurement costs.

 

Sefton MBC access the retail market via a framework

Although this method would avoid OJEU costs and could improve benefits secured as part of a group procurement cost savings are still likely to be marginal.

 

Access the CCS framework as part of a larger procurement group in the Liverpool City Region

Potentially higher savings possible than Sefton MBC accessing a framework alone, however, there are no plans currently to progress. Results of this pilot will be relayed to the LCR group to aid progress.