THE CABINET

10 OCTOBER 2016

Subject:Stratford-upon-Avon Markets Contract – Tender Evaluation Criteria

Lead Officer:Dave Webb

Contact on 01789 260900

Lead Member/
Portfolio Holder: Councillor D Riches

Summary

This report is a follow up to a report which was considered by The Cabinet on the 5 September 2016. The report addresses comments made at that meeting in relation to the tender evaluation criteria and in particular Waterside Market.

Recommendations

(1)That the tender evaluationcriteria set out in Appendix 1 to this report be agreed.

(2)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.

1Background

1.1On the 5 September 2016 The Cabinet agreed to re-tender the Stratford-upon-Avon markets contract and for it to include a three day Christmas festival. The resolution (minute 276) was as follows: -

1)That the Council agrees to re-tender the Stratford-upon-Avon Markets contract;

2)That the tender evaluation criteria set out in Appendix 1 be the subject of further discussion and re-submitted to The Cabinet at its next meeting; and

3)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.

1.2However, concern was expressed with regards to the number of days allocated in the current tender in respect of the Waterside Market. In relation to this issue members requested more information and as a result were in favour of a further report, which focused upon the tender evaluation criteria, coming forward to the next meeting of The Cabinet.

1.3The purpose of this report is to provide more information relating to this specific point of concern to enable members to consider the tender evaluation criteria.

1.4The 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.

1.5In 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.

1.6Since the award of the 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.

1.7The Council is required to give the current contractor at least 12 month notice advising that the Contract will not be extended.

2Waterside Market

2.1The current Stratford-upon-Avon Markets Contract was awarded from 1 October 2012. At that time the Contract encompassed a market provision in Rother Street (Fridays and Saturday – 104 days), Waterside (Sundays 28 days) and Henley Street (up to 15 days)

2.2As part of the ongoing evaluation of the performance of the market, in 2014, the Market Forum, in consultation with Geraud UK Ltd reviewed the suitability of Henley Street as a prime location to hold a market. Having taken into account a broad range of comments and reflected on the impact of other competing events (i.e. Christmas Light Show) the Forum took the view that Henley Street could no longer be considered as a suitable venue to hold a market.

2.3As a result, in 2014 the Market Forum agreed to extend the market provision on Waterside. To this end, the Council applied for planning permission to extend the number of days for markets on Waterside from 28 to 43 days. The application was successful. This meant that the 15 days on Henley Street were no longer considered relevant to the Contract.

2.4Consequently, since 2014 Waterside Market has operated on the basis of 43 allocated days. This decision was supported by a number of retailers on Waterside and stall holders, many of which are locally based.

2.5In terms of Contract value, the overall number of contracted days has remained the same.

2.6It is widely recognised that Waterside Market is the ‘jewel in the crown’ of the Stratford-upon-Avon markets. The quality and variety of the market offer supports the ‘Up Market’ brand.

2.7On the 14 January 2014 the District and Town Council, in conjunction with the market operator received the award of ‘Private Market of the Year’from the National Association of British Markets Association (NABMA). The Waterside ‘upmarket’ was a major contributing factor to winning this award and has continued to enhance the reputation of the Councils and promote Stratford-upon-Avon as a destination. Since the commencement of the current Contract in 2012, NABMA have held their annual conference on two occasions in Stratford-upon-Avon and again this year, the event is sold out with delegates taking up accommodation in a number of town based hotels.

2.8Feedback from consultation has been mainly positive, particularly in relation to Waterside ‘upmarket.’ The following comments illustrate the level of satisfaction:-

“Waterside proved to be a great hit with the public, they loved the location of the market, and the atmosphere, there was something for everyone. Even music, and balloon blowers for the children. Happy shoppers, Happy traders, Happy days!”

“Very continental a pleasure to come shopping will definitely recommend coming to friends what a credit to Stratford.”

2.9Shortly after the award of Market Contract, retailers in Sheep Street and on Waterside expressed concern over the number of food related market stalls. A meeting was held with the Portfolio Holder at that time and agreement reached on the number of food stalls. With the support of the contractor, changes were made and have since been supported by retailers.

2.10Although trading on Waterside is more expensive for stall holders, there is a waiting list. Waterside is by far the most profitable element of the Stratford-upon-Avon market offer and many of the stall holders are locally based.

2.11Under the new Market Contract it is important to reflect the lessons learned and ensure robust performance monitoring arrangements are in place to enable the Markets Forum to address any concerns with the contractor. This will include the development of a programme of one-off specialist markets in line with Stratford-upon-Avon’s festival and events.

3Consultation

3.1A Citizens’ Panel survey in 2013 confirmed a high level of satisfaction with the Stratford-upon-Avon market offer. In terms of location 93% supported the location of the markets. In addition, 93% were satisfied with the number and quality of stalls at the Waterside ‘Upmarket.’

3.2In terms of customer profile, the highest percentage of visitors to the market came from Stratford-upon-Avon (28%).

4Stratford-upon-Avon Town Council Recommendations for a New Contract

4.1At 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.

5Tender evaluation criteria

5.1All tenders will be evaluated on a cost and quality basis. The proposed evaluation criteria are attached as Appendix1 to this report.

5.2The 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.

5.3The tender criteria incorporate equality expectations in line with the Council’s procurement procedures.

6Tender process

6.1The timetable for tendering a new contract will be finalised if The Cabinet agree to the evaluation criteria. 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.
  • 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.

7Options available to The Cabinet

7.1Members are therefore asked to consider the following options.

7.2Tender evaluation criteria (only if option 7.2.1 is agreed)

7.2.1To agree the tender evaluation criteria as set out in Appendix 1.

7.2.2To reject or amend tender evaluation criteria as set out in Appendix 1.

8Evidence Base

8.1Citizens’ Panel consultation was undertakenin 2013.

9Members’ Comments

9.1Following receipt of additional information there is broad support to maintain 43 market days on Waterside. However, the number of food related stalls should be restricted.

9.2The Farmers Market should continue to be an integral part of the wider market offer.

9.3The provision of ‘specialty markets’ is supported with Henley Street being a preferred location for these.

9.4Mindful of potential changes to the Town Centre which could arise following publication of the Stratford Area Transport Strategy, which is still in draft form, a break clause should be included in the Contract. This would take account of any possible opportunity to review the market offer if infrastructure changes provide more location flexibility.

10Implications of the Proposal

10.1Legal/Human Rights Implications

10.1.1The Council has powers to establish and operate markets under the Markets Charter and Part III of the Food Act 1984.

10.1.2Any relevant procurement law will be followed in relation to the retendering of any new Contract.

10.1.3With regard to Rother Street (Saturday), and Henley Streetthere 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 11 below.

10.2Financial

10.2.1The Council receives 60% of the gross income, from the current market contract with the Town Council receiving 40%. If The Cabinet agrees with the tender evaluation criteria on the basis that 43 market days are allocated to Waterside the value of the contract will increase. If 28 market days are agreed for Waterside, it is unlikely that the value of the contract will increase and in reality it is likely to decrease. This assumption is based upon feedback received over the past four years of the Contract. It is estimated that the loss of income arising from the Contract would be in the region of £150,000 over a five year period.

10.3Environmental

10.3.1Theproposals contained within this report will not have an increased adverse effect on the environment.

10.4Corporate Strategy

10.4.1The proposals contained within this report supports Key Objective 1 ‘A flourishing local economy.’

10.5Analysis of the effects on Equality

10.5.1The market contractor is expected to adhere to the objectives set out in the Council’s Single Equality Scheme. Thepre-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 into account as part of the evaluation process.

11Risk Assessment

11.1The Stratford-upon-Avon Markets Contract is a valuable source of income for the Council and the proposals contained in this report provide the basis for increasing the value further.

11.2However, if The Cabinet agrees to reduce the number of market days on Waterside this could have wide ranging implications. The likely outcome would be a reduction in the value of the Market Contract.

11.3In addition, because Waterside is considered to be the ‘jewel in the crown’ the quality of prospective contractors is likely to be affected. It is possible that contractors would be deterred from expressing an interest in tendering because the Contract would be less attractive to them in terms of value and quality.

12Conclusion

12.1The proposals contained within this report provide a cohesive and co-ordinated 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. The 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.

12.2The proposals have taken account of 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