© Bishop’s Stortford Town © Bishop’s Stortford Town Council Council

Christmas Lights 2014-2018 – Appendix 4Christmas Lights 2014-2018 – Appendix 4

Proposed outsource to BS Chamber Proposed outsource to BS Chamber of Commerceof Commerce

Proposer-Cllr WyllieProposer-Cllr Wyllie

The proposalThe proposal

The proposal – May 2013The proposal – May 2013 Bishop’s Stortford Chamber of Commerce be contracted Bishop’s Stortford Chamber of Commerce be contracted

to operate the Christmas Lights from Christmas 2014 to operate the Christmas Lights from Christmas 2014 onwards (following the change of scheme planned at onwards (following the change of scheme planned at Christmas 2013), on the basis (for example) of a fixed Christmas 2013), on the basis (for example) of a fixed fee equal to the 2013/2014 budget, a four year contract, fee equal to the 2013/2014 budget, a four year contract, a transfer of current assets, the Chamber being a transfer of current assets, the Chamber being responsible for asset refresh thereafter and free to raise responsible for asset refresh thereafter and free to raise additional revenue. additional revenue.

Benefits for CouncilBenefits for Council One less task to doOne less task to do Possible improvement in provisionPossible improvement in provision

Benefits to ChamberBenefits to Chamber PublicityPublicity Well placed to secure additional fundingWell placed to secure additional funding

© Bishop’s Stortford Town © Bishop’s Stortford Town Council Council

Key Contract ProvisionsKey Contract Provisions

Key ConsiderationsKey Considerations Duration and Termination, Clarity of liability (particularly for insurance purposes)Duration and Termination, Clarity of liability (particularly for insurance purposes) Level and scope of service provision, messaging to recognise contribution of both partiesLevel and scope of service provision, messaging to recognise contribution of both parties Protection of public assets which are being handed to an unincorporated members club, asset refreshProtection of public assets which are being handed to an unincorporated members club, asset refresh BudgetBudget

Duration, Termination and LiabilityDuration, Termination and Liability 4 years contract was initially proposed by F&GP, 3 years now proposed by Cllr Wyllie4 years contract was initially proposed by F&GP, 3 years now proposed by Cllr Wyllie Termination for cause at any time, no termination for convenienceTermination for cause at any time, no termination for convenience Upon termination BSTC to have the right to reclaim the assets free of charge if it choosesUpon termination BSTC to have the right to reclaim the assets free of charge if it chooses BSTC indemnified against any claim whatsoever arising out of lighting provision (eg liability claim)BSTC indemnified against any claim whatsoever arising out of lighting provision (eg liability claim)

Level & Scope of Service ProvisionLevel & Scope of Service Provision Chamber to provide at least as much lighting as at present, scope to exclude Xmas Tree and Monastery LightsChamber to provide at least as much lighting as at present, scope to exclude Xmas Tree and Monastery Lights Licencing, insurance, management, repairs, storage responsibility of ChamberLicencing, insurance, management, repairs, storage responsibility of Chamber Chamber to provide to BSTC a contact number for fault reportingChamber to provide to BSTC a contact number for fault reporting Material changes to scheme (other than extensions) to be agreed with BSTC prior to commit, agreement not Material changes to scheme (other than extensions) to be agreed with BSTC prior to commit, agreement not

unreasonably withheld (clause protects both sides)unreasonably withheld (clause protects both sides) Chamber to acknowledge financial contribution of Town Council in its publicityChamber to acknowledge financial contribution of Town Council in its publicity

Asset protectionAsset protection Current assets transferred to Chamber Current assets transferred to Chamber

Note: CEO recommends that Council consider a free loan instead of a transfer as this offers better protectionNote: CEO recommends that Council consider a free loan instead of a transfer as this offers better protection BSTC to have first right of refusal of transfer back (free of charge) at end of contract, default or termination for BSTC to have first right of refusal of transfer back (free of charge) at end of contract, default or termination for

any reason. Chamber prohibited from disposing of assets during term of contract (note – need legal advice on any reason. Chamber prohibited from disposing of assets during term of contract (note – need legal advice on situation in event of insolvency)situation in event of insolvency)

If assets replaced (eg due to loss or damage), BSTC rights transfer to replacement assetsIf assets replaced (eg due to loss or damage), BSTC rights transfer to replacement assets BSTC to have no rights over any additional assets purchased through voluntary contributionsBSTC to have no rights over any additional assets purchased through voluntary contributions

Budget and PaymentBudget and Payment Fixed price equal to current budget, no inflation linkingFixed price equal to current budget, no inflation linking

less capital refresh element included in budget, plus cost to us of insuranceless capital refresh element included in budget, plus cost to us of insurance Capital refresh element to earmarked reserves each year, Chamber receives it if contract renewed and replacement lights purchasedCapital refresh element to earmarked reserves each year, Chamber receives it if contract renewed and replacement lights purchased

Payments annually on erection of lightsPayments annually on erection of lights RememberRemember

Contracts are for when things go wrong and must deal with the unexpected or improbable!Contracts are for when things go wrong and must deal with the unexpected or improbable!© Bishop’s Stortford Town © Bishop’s Stortford Town Council Council