Agenda item

The Cabinet member for Tackling Inequality and Resident Services considered a report that sought the approval to vary the contract value by 50% in accordance with Regulation 72 (1)(c) of the Public Contract Regulations (PCR) 2015, to allow contractual payments to be made.  Concurrently, working closely with the council’s procurement and legal team, Parking Services would be investigating and establishing a permanent solution to ensure the contract’s continued financial viability.

The Cabinet member for Tackling Inequality and Resident Services noted that going forward, this contract would be under further review and may require to re-tender. As this is a big decision, the legal team would be advising on this matter.

RESOLVED

The Cabinet Member for Tackling Inequality and Resident Services:

1.    To approve the modification of the existing Parking Management IT System (PMIS) Contract with Taranto Systems Limited as per Regulations 72 (1)(c) of the Public Regulations 2015, a necessary interim measure to manage the significant growth in variable costs. 

2.    To approve to the recommendation of 3.1, a financial modification that adjusts the original contract value by an increase of 50% representing expenditure of £1.44m additional to the original contract value of £2.91m agreed by Cabinet in 2019. This would take the total contract value to £4.35m.

Reasons for decision

Compliance with legal and procurement guidelines:

The decision to invoke Regulation 72 (1)(c) complied with procurement guidelines, which allowed for contract modification, in response to significant growth in parking schemes. The decision was also supported by the need for expert legal and procurement advice to navigate the complexities of the contract modification process.

Addressing parking scheme growth:

Due to the implementation of new parking schemes including several low traffic neighbourhood schemes (LTNs) and School Streets, there had been a significant surge in PCN volumes, which was not anticipated in the original contract financial model. As a result, it had become necessary to modify the contract to accommodate this growth and ensure that it accurately reflected the current reality.

Alignment with the Council’s Transport Strategy:

The decision was aligned with the Council's broader strategic objectives, including effective traffic management, promoting sustainable transport, and providing quality services to residents. The contract modification ensured these objectives were not compromised.

Ensuring service continuity:

Implementing the proposed contract modification was crucial to maintaining parking enforcement services, which were essential for safely managing parking in the borough. Without this modification, there was a risk of interruption in enforcement operations, leading to increased illegal parking, decreased public safety.

Adjusting the contract to service future variable costs was also a decision to preserve public trust by ensuring that the Parking Service functions effectively, upheld high service standards and met statutory responsibilities.

Protecting income streams:

The Council's ability to process PCNs and parking permit payments relied on the PMIS Contract. The Parking Management IT System was forecasted to process £23.5m in PCN payments and £6.5m from parking permit sales in the 23/24 financial year. The growth impacted and the increase in the contract value would be met through the budgets for the Highways and Parking Service.

With regards to specific delivery of services, the PMIS:

·         Enabled the enforcement of parking regulations and removal of abandoned vehicles, improperly parked, or problematic vehicles from public roads and car parks. This was a critical function for the Council, as it ensured public safety and addressed concerns raised by residents.

·         Provided an ‘Online Permit System’, allowing residents and businesses to purchase parking permits and managed their parking arrangements.

·         Provided an Online Case Management System for parking representations and appeals, allowing motorists to exercise their statutory right to challenge/ appeal a PCN. 

·         Enabled the management of Blue Badge and concessionary travel casework.

·         Enabled using “cashless” parking via the RingGo service for short-term parking on-street and in car parks and supported many other ancillary parking services.

Alternative options considered.

Doing nothing:

It was crucial to take action as failure to meet monthly financial obligations according to the contract could result in the supplier terminating the contract. If the PMIS Contract was terminated, it would disrupt day-to-day operations and would pose a significant risk to public safety and the Council's statutory duties in traffic management. Therefore, inaction was not an acceptable option.

Development of future options to follow legal advice:

The contract variation sought was an interim solution. It would not allow this contract to run its entire duration if the volume of parking transactions and activities remained as was or increased further. The Parking Service was closely collaborating with the Council's legal and procurement departments to thoroughly review all future contract options, ensuring compliance with best practices, and achieving the best value for the Council.

The necessity for immediate contract modification:

In the immediate term, the Council was constrained to seeking a contract modification invoking Regulation 72 (1)(c) of PCR 2015. This contract modification, proposing a 50% increase in the contract value, was crucial to prevent parking enforcement and management service disruption. This step was necessary to sustain the Council parking operations while long-term solutions were formulated with procurement and legal services.

The proposed contract variation with Taranto Systems Limited (TSL) was expected to have the following outcomes:

a)    Short-term financial stability - The contract modification aimed to stabilise the finances of the Parking Service by accommodating the unforeseen increase in the issuance of penalty charge notices (PCNs).

b)    Continuity of services - The approval would ensure that parking enforcement services continued uninterrupted, ensuring public safety and compliance with parking regulations.

c)    Strategic alignment - The modification aligned with the Council's strategic objectives, promoting sustainable transport and effective traffic management.

d)    Income protection - Adjusting the contract terms would enable the Council to continue to discharge its statutory duties.

e)    Future planning - The contract modification would provide time to investigate and establish a permanent solution to ensure the financial viability of the Parking Management IT System (PMIS) Contract.

f)     Public trust - The Council would be able to uphold high service standards, meet statutory responsibilities, and maintain public trust.