© Bishop’s Stortford Town Council Appendix 3: Markets Initial Briefing

Background On 17 th June 2013 Town Council resolved On 17 th June 2013 Town Council resolved that this Council discuss with East Herts District Council the possibility of taking over the Market with the answer and the business case to come to the Finance and General Purposes Committee. Followed a recommendation from the Local Government Status Task & Finish Group Followed a recommendation from the Local Government Status Task & Finish Group Two possible ways to progress identified – informally and through the Community right to Challenge Two possible ways to progress identified – informally and through the Community right to Challenge EHDC written reply: EHDC written reply: will not consider an informal approach will not consider an informal approach we must use the Community Right to Challenge if we wish to progress this we must use the Community Right to Challenge if we wish to progress this © Bishop’s Stortford Town Council

Community Right to Challenge Enabling Legislation: Localism Act 2011 Enabling Legislation: Localism Act 2011 Allows relevant bodies to run authority services ‘differently and better’. Includes full and part of service. Allows relevant bodies to run authority services ‘differently and better’. Includes full and part of service. District and county can be challenged District and county can be challenged Town Council can challenge but cannot be challenged Town Council can challenge but cannot be challenged Process Process Town Council (or other body) submits an expression of interest Town Council (or other body) submits an expression of interest Straightforward process Straightforward process requires certain information about the challenging body to be set out requires certain information about the challenging body to be set out no commitment at this stage no commitment at this stage District Council makes a decision on the submission District Council makes a decision on the submission Limited grounds for refusal, reason why must be published. Limited grounds for refusal, reason why must be published. Modification to submission can be requested Modification to submission can be requested If successful -> District Council must run a procurement exercise If successful -> District Council must run a procurement exercise challenger and others can bid challenger and others can bid Business case for Town Council to run the Market Business case for Town Council to run the Market Cannot be completed until the procurement exercise is run Cannot be completed until the procurement exercise is run Because we don’t know the terms until then! Because we don’t know the terms until then! © Bishop’s Stortford Town Council

Preliminary Outline Financials ExpenditureCostIncomeAmount Capital CostsStalls£1,776 1 Fees & Charges£66,450 Signage£1,000 2 Licence Fees£0 4 Running CostsElectricity£570 StaffingSalary£18,750 3 LogisticsStreet Cleaning£2,560 Refuse Clearance£11,950 InsuranceMisc & Third Party£330 OtherAdvertising£2,570 Subscriptions£670 NNDR£9,390 Other£100 Total Expenditure£49,666Total Income£66,450Net£16,784 © Bishop’s Stortford Town Council Final Business case will depend on tender conditions Initial indications are that market could be profitable under BSTC management, significant savings possible compared to EHDC operating model due to local presence Notes 1: Based on the EHDC Purchase & Maintenance figure of £1,750, or just under 12 new stalls (at £148) a year (24 for every two years). As Saturday showed 28 pitches used, but only 10 specific stalls, 24 stalls every 2 years is a reasonable estimate. 2: EHDC has a capital charge of £16,830 that is unexplained and not included. 3: Based on BSTC estimate. 4: EHDC takes a profit on Licence Fees (£11,800) that they would probably insist on retaining. RECOMMENDATION: If Council remains serious about desire to run market, Invoke Community Right to Challenge, review business case once tender details available

Background Detail © Bishop’s Stortford Town Council

Sources East Herts District Council budgetary information taken from the ‘Divisional Budgets’ booklet, based on the 2012/13 estimates. This relates specifically to B/S Market (the budget is split by location). East Herts District Council budgetary information taken from the ‘Divisional Budgets’ booklet, based on the 2012/13 estimates. This relates specifically to B/S Market (the budget is split by location). Stall rent charges taken from the EHDC website. Stall rent charges taken from the EHDC website. Stall purchase figures taken from stalls.co.uk, and Stall purchase figures taken from stalls.co.uk, and Market Distribution based on visual estimates. Market Distribution based on visual estimates. © Bishop’s Stortford Town Council

Capital Costs & Running Costs Capital Costs Purchase of Market Stalls and Covers varies depending on source: Purchase of Market Stalls and Covers varies depending on source: Low end = £101 Low end = £101 High end = £185 High end = £185 Average = £148 Average = £148 EHDC lists Purchase & Maintenance of Equipment as costing £1,750. At least part of this figure will include the above. EHDC lists Purchase & Maintenance of Equipment as costing £1,750. At least part of this figure will include the above. BSTC estimates a need to replace Stalls every two years. It is estimated that there are approximately 58 pitches per week (29 a day), but on Saturday there were only 10 specific stalls used along with 28 pitches. The £1,750 figure would mean the replacement of around 12 stalls a year in the EHDC budget. As such, 24 would not be an unreasonable estimate, and approximately the same cost of £1,776 a year could be used. BSTC estimates a need to replace Stalls every two years. It is estimated that there are approximately 58 pitches per week (29 a day), but on Saturday there were only 10 specific stalls used along with 28 pitches. The £1,750 figure would mean the replacement of around 12 stalls a year in the EHDC budget. As such, 24 would not be an unreasonable estimate, and approximately the same cost of £1,776 a year could be used. EHDC lists an unexplained capital charge of £16,830. EHDC lists an unexplained capital charge of £16,830. Likely to include signage, bins, Christmas lights and the like. Stortford would likely only need to purchase signage for £2,000 - £3,000. Depreciated over 3 years (£1,000 a year). Likely to include signage, bins, Christmas lights and the like. Stortford would likely only need to purchase signage for £2,000 - £3,000. Depreciated over 3 years (£1,000 a year). Running Costs EHDC lists electricity as costing £570. EHDC lists electricity as costing £570. This would remain the same. This would remain the same. © Bishop’s Stortford Town Council

Staffing Bishop’s Stortford Town Council estimates the salary of the Market Manager as costing £25,000 a year based on full time. Bishop’s Stortford Town Council estimates the salary of the Market Manager as costing £25,000 a year based on full time. As the Market Manager would only work 2 days a week, with normal hours being from 6am to 6pm, this figure changes to £15,000. Additionally £3,750 (25%) is added for other costs, totalling £18,750. As the Market Manager would only work 2 days a week, with normal hours being from 6am to 6pm, this figure changes to £15,000. Additionally £3,750 (25%) is added for other costs, totalling £18,750. An even better result is likely to be possible by using TIC staff to perform the on-site supervision and cash collection (hours coincide nicely) with backup from a manager employed say 1 day per week. An even better result is likely to be possible by using TIC staff to perform the on-site supervision and cash collection (hours coincide nicely) with backup from a manager employed say 1 day per week. EHDC lists salaries as costing £18,860. These figures are comparable. EHDC lists salaries as costing £18,860. These figures are comparable. TUPE may apply, tender document would have to clarify this and would affect our response TUPE may apply, tender document would have to clarify this and would affect our response © Bishop’s Stortford Town Council

Logistics & Insurance There are two third party contracts BSTC would need to take over in order to operate the Market: There are two third party contracts BSTC would need to take over in order to operate the Market: Street Cleaning = £2,560 Street Cleaning = £2,560 Refuse Clearance = £11,950 Refuse Clearance = £11,950 Regarding Insurance: Regarding Insurance: East Herts District Council pays £330 for Misc & Third Party Insurance (for B/S Market). This would remain the same. East Herts District Council pays £330 for Misc & Third Party Insurance (for B/S Market). This would remain the same. EHDC requires the trader to possess Public Liability Insurance. EHDC requires the trader to possess Public Liability Insurance. © Bishop’s Stortford Town Council

Other EHDC lists advertising as costing £2,570. EHDC lists advertising as costing £2,570. Advertising figure would depend on BSTC commitment to advertising. Advertising figure would depend on BSTC commitment to advertising. EHDC lists subscriptions as costing £670. EHDC lists subscriptions as costing £670. Unknown Subscriptions. Unknown Subscriptions. EHDC lists NNDR as costing £9,390. EHDC lists NNDR as costing £9,390. Non-Domestic Rates would remain the same. Non-Domestic Rates would remain the same. EHDC lists ‘other’ as costing £100. EHDC lists ‘other’ as costing £100. © Bishop’s Stortford Town Council

Income EHDC lists Fees & Charges as gaining £66,450. EHDC lists Fees & Charges as gaining £66,450. This appears a good estimate, as dividing by regular trader fee equates to an average pitches a week (standard size), a day. As seen on next slide, this is in line with real pitch numbers. This appears a good estimate, as dividing by regular trader fee equates to an average pitches a week (standard size), a day. As seen on next slide, this is in line with real pitch numbers. Stall Rent: Stall Rent: EHDC charges a regular trader £21.80 for a 7’*10’ Stall (2.10m*3.00m). EHDC charges a regular trader £21.80 for a 7’*10’ Stall (2.10m*3.00m). EHDC charges a casual trader £26 for the same dimensions. EHDC charges a casual trader £26 for the same dimensions. EHDC charges £1.20 for each additional 1’ 2 (0.09m 2 ). EHDC charges £1.20 for each additional 1’ 2 (0.09m 2 ). © Bishop’s Stortford Town Council

Market Distribution – Saturday (13 th April 2013) 10 different stalls. 10 different stalls. Took up an estimated 28 standard pitches (10’*7’). Took up an estimated 28 standard pitches (10’*7’). Every stall appeared to take up at least 2 pitches, with the most a single stall occupied being 4. Every stall appeared to take up at least 2 pitches, with the most a single stall occupied being 4. The number of pitches used is in line with estimated Market distribution (29.21 a day). The number of pitches used is in line with estimated Market distribution (29.21 a day). © Bishop’s Stortford Town Council LocationStall # of pitches (estimate)Produce Market Square13Flowers Pizza Hut12Cakes, meats, produce Pizza Hut12Clothes Boots12Socks, clothes Greggs13Pet supplies Cookshop14Flowers Waterstones12Bags Woollen Mill13Bread and delicatessen Dorothy Perkins13Batteries, light bulbs, etc. Weber14Fruit & veg Total1028