Lead Officer: Dave Webb

THE CABINET 5 SEPTEMBER 2016

Subject: Stratford-upon-Avon Markets Lead Officer: Dave Webb Contact on 01789 260900 Lead Member/ Portfolio Holder: Councillor D Riches

Summary This report reflects on the operation of the Stratford-upon-Avon markets contract awarded from October 2012 and provides a rationale for re-tendering it. Recommendations (1) To re-tender the Stratford-upon-Avon Markets contract from 01/10/2017. (2) Subject to (1), that the tender evaluation criteria set out in Appendix 1 to this report be agreed. (3) Subject to (1), that the new Stratford-upon-Avon markets contract includes a three day Christmas Festival, under part III of the Food Act 1984, to be held during December of each year for the duration of the contract. (4) Subject to (1), that the Portfolio Holder for Enterprise and Revenues together with the Executive Director (Head of Paid Service) be authorised to agree the outcomes of the tender evaluation process.

Background The current market arrangement in Stratford-upon-Avon is that the Council, in conjunction with Stratford-upon-Avon Town Council and a contractor, operates a Friday Charter Market, Saturday Markets on Rother Street and Sunday Markets on Waterside. It also has the ability to hold markets in Henley Street if required. Both Councils are market authorities. The current arrangement divides the revenue received from the markets on a 60/40 basis, in favour of the District Council. This agreement expires on 30 September 2017. In addition, another market activity (Christmas market) operates under a street trading licence in Bridge Street. Neither the District nor Town Council receive any revenue from this market other than fees from street trading permissions.

Since the award of contract in October 2012 circumstances have changed. Although the Council has the option of extending the existing contract for another five years, initiating a re-tendering exercise provides an opportunity to re-evaluate the markets provision in Stratford-upon-Avon. In addition, it will help re-enforce ‘best value’ and provide a level of diversity which supports tourism and the local economy. The Council is required to give the current contractor at least 12 months notice advising that the contract will not be extended. 2 Consultation 2.1 Market traders have been advised of the tender process and invited to make comments. Comments which specifically relate to the future provision of the markets have been noted. 2.2 A Citizens’ Panel survey has also been initiated. Results are not available but the questionnaire follows one which was issued in December 2011. The results of the survey will help inform the tender process. 3 Agreement with Stratford-upon-Avon Town Council 3.1 The Council has continued to have a good working relationship with Stratford-upon-Avon Town Council during the life of the current contract. Both Councils play an active role in the Market Forum which was established when the new contract commenced. 3.2 The Forum has been commended by NABMA (National Association of British Market Authorities) as ‘good practice.’ 3.3 The agreement between the District and Town Council underpins the close working relationship and no changes to the agreement are proposed in this report. 4 Stratford-upon-Avon Town Council recommendations for a new Contract 4.1 At the Town Council meeting on the 26 July 2016, Councillors considered recommendations from the Market Forum in relation to a new markets contract. After debate the following was resolved:-  That the Town Council would support the broader proposal for ‘Sourced for Stratford or Local to Stratford’ rather that the more prescriptive FARMA accreditation;  To agree to the weighting criteria of 40% price and 60% quality as detailed in the Tender Evaluation document;  To agree to include a Christmas festival offer of up to three consecutive days when re-tendering the market contract;  To agree in principle to appropriate road closures which will be further scrutinised by the Market Forum and returned to the Town Council in due course.

6 Tender evaluation criteria 6.1 All tenders will be evaluated on a cost and quality basis. The proposed evaluation criteria are attached as Appendix 1 to this report. 6.2 The Market Forum reviewed the previous tender evaluation criteria reflecting on the price/quality balance. Whilst it is essential to achieve best value, experiences over the past four years have shown that markets which provide a high degree of quality tend to thrive. The market offer on Rother Street versus Waterside illustrates this. The Waterside ‘upmarket’ made a significant contribution towards the achievement of ‘Private Market of the Year’ award in 2014 and continues to attract large number of visitors. The Rother Charter Market has struggled. 6.3 As a result, the Market Forum recommends a 60/40 weighting in favour of quality. 6.4 The tender criteria incorporate equality expectations in line with the Council’s procurement procedures. 7 Tender process 7.1 If The Cabinet agrees to re-tender the markets contract, the Council will give notice to Geraud (UK) Ltd of no contract extension and therefore automatic expiry of their contract on 30 September 2017 (minimum of 12 month notice). The timetable for tendering a new contract will be finalised if The Cabinet agrees to re-tender the contract. However, the timetable will broadly be as follows: -  Expressions of interest will be sought in November/December 2016;  The deadline for expressions of interest will be January/February 2017;  Tender documentation will be issued January/February 2017;  Tenders will be opened February/March 2017;  Shortlist interviews of prospective contractors will be early March 2017;  Award of contract, end of March 2017;  Contract commences 1 October 2017; 7.2 Contract monitoring arrangements will be in place to evaluate the success of the market arrangements. Key performance indicators will be incorporated in the tender documentation. Performance will be monitored by the Market Forum. 8 Markets Policy 8.1 To further cement the coordinated approach to the market provision in Stratford-upon-Avon, a Markets Policy has also been developed. 8.2 The Markets Policy provides clarity to potential contractors. It confirms that the Council, in partnership with Stratford-upon-Avon Town Council organises markets within the town. It also confirms the location of the markets and the parameters upon which markets can operate within the town. It provides assurance to prospective contractors that the Council has powers to restrict rival commercial markets. 8.3 The Policy has undergone consultation with the Licensing Team of the Governance and Democracy Service and their comments have been taken into account. 8.4 This report does not propose any changes to the current Markets Policy. 9 Options available to The Cabinet 9.1 This report reflects on the markets contract awarded from October 2012 and provides a rationale for re-tendering the contract. Clearly there are potential financial gains for the Council through a new contract. This potential is further enhanced if The Cabinet agrees with the recommendation from the Town Council to include a three-day Christmas Festival in the contract. Members are therefore asked to consider the following options. 9.2 Tendering of the market contract 9.2.1 To agree to re-tender the markets contract. 9.2.2 To agree not to re-tender the markets contract. 9.3 Tender evaluation criteria (only if option 9.2.1 is agreed) 9.3.1 To agree the tender evaluation criteria as set out in Appendix 1. 9.3.2 To reject or amend tender evaluation criteria as set out in Appendix 1. 9.4 Christmas Festival (only if option 9.2.1 is agreed) 9.4.1 To agree to include a three-day Christmas Festival in the new markets contract. This festival would operate under Part III of the Food Act 1984. 9.4.2 To reject the inclusion of a three-day Christmas Festival in the new markets contract. 10 Evidence Base 10.1 An analysis of the current contract including monitoring information is supplied as an Exempt Appendix. 11 Members’ Comments 11.1 Members comments are included in the report. 12 Implications of the Proposal 12.1 Legal/Human Rights Implications 12.1.1 The Council has powers to establish and operate markets under the Markets Charter and Part III of the Food Act 1984. 12.1.2 Any relevant procurement law will be followed in relation to the retendering of any new contract. 12.1.3 With regard to Rother Street (Saturday) and Henley Street, there is no appropriate highway legislation (or any general power of competence that is applicable) that gives the requisite permission for the District Council and/or market operator to operate markets on these public highways. This is the same position as in relation to the existing contract and further details are provided in the Risk Assessment Section at 13 below. 12.2 Financial 12.2.1 The Council currently receives £60,000 per annum, or 60% of the gross income, from the current market contract. The new proposed approach should result in a higher contract value. However, this report does not propose to change the current financial split (60/40 in favour of the District Council) with Stratford-upon-Avon Town Council. 12.3 Environmental 12.3.1 The proposals contained within this report will not have an increased adverse effect on the environment. 12.4 Corporate Strategy 12.4.1 The proposals contained within this report supports key objective one ‘A flourishing local economy.’ 12.5 Analysis of the effects on Equality 12.5.1 The market contractor is expected to adhere to the objectives set out in the Council’s Single Equality Scheme. The pre-qualification questionnaire includes a section in relation to equal opportunities where prospective contractors are required to set out their organisations stance in relation to a range of equality questions. They are advised that the answers to these questions will be taken in into account as part of the evaluation process. 13 Risk Assessment 13.1 In awarding the current contract, the Council agreed to a sub-contracting working arrangement between Geraud (UK) Ltd and LSD Promotions. Issues between these two companies which emerged during the current contract, resulted in a significant amount of intervention from the District and Town Councils. In evaluating expressions of interest for the new contract, any third party arrangements and any third parties will be assessed to the extent permitted by procurement law. 13.2 The Council could, if it chooses, not to proceed with a TRO for Rother Street (Saturday) and Henley Street, continue with its current practices with regard to both highways in respect of the new contract. However if it chooses to do so then it is possibly open to challenge due to lack of formal permission or deemed incorrect processes that affect both highways. It is important therefore that prospective contractors are fully informed and take the contract subject to those practices. 13.3 It is important that prospective contractors are made aware of the above issues and whichever option the Council chooses; explicit reference will be made in the tender documentation. 13.4 However, all planning permissions are in place for the total number of days that are in the contract. The proposal for a three-day Christmas Festival in Bridge Street will not require planning permission because it is less than 14 days duration. 14 Conclusion 14.1 The proposals contained within this report provide a cohesive and coordinated market provision in Stratford-upon-Avon. Nationally, markets are facing difficult times. It is therefore essential that any prospective contractor is able to provide markets of high quality and variety. Both Councils are keen to build upon the Private Market of the Year award achieved in 2014. In addition, vibrant markets will bring more visitors in to Stratford-upon-Avon which provides the platform for local businesses to benefit. 14.2 The proposals have taken account the views of market traders and residents. The tender evaluation criteria will ensure that prospective contractors focus on the provision of quality markets. Dave Webb EXECUTIVE DIRECTOR

Background papers: None