1. © Bishop’s Stortford Town Council Christmas Lights 2014-2016 – Appendix 4 Proposed outsource to BS Chamber of Commerce

2. Background The recommendation from F&GP – Oct 2013 The recommendation from F&GP – Oct 2013 Bishop’s Stortford Chamber of Commerce be contracted to operate the Christmas Lights from Christmas 2014 onwards Bishop’s Stortford Chamber of Commerce be contracted to operate the Christmas Lights from Christmas 2014 onwards Detailed contract basis set out Detailed contract basis set out Chamber has been advised Chamber has been advised no response at time of preparation of this document no response at time of preparation of this document Response expected before F&GP meeting, CEO will report verbally Response expected before F&GP meeting, CEO will report verbally Recommendation referred back to F&GP by Council 9 Dec 2013 Recommendation referred back to F&GP by Council 9 Dec 2013 © Bishop’s Stortford Town Council

3. Previous Recommendation by F&GP Duration, Termination and Liability 3 year duration (starting Christmas 2014) Termination 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 chooses BSTC indemnified against any claim whatsoever arising out of lighting provision (eg liability claim) Level & Scope of Service Provision Chamber to provide at least as much lighting as at present, scope to exclude Xmas Tree and Monastery Lights (which will be retained by the Council) Licencing, insurance, management, repairs, storage to be the responsibility of Chamber Chamber 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 unreasonably withheld (clause protects both sides) Chamber to acknowledge financial contribution of Town Council in its publicity Asset protection Current assets transferred to Chamber 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 – will need legal advice on situation in event of insolvency) If 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 contributions © Bishop’s Stortford Town Council

4. Comment from Chief Executive Officer Council did not state the reasons for which the F&GP recommendation was referred back Council did not state the reasons for which the F&GP recommendation was referred back F&GP recommendation based substantially on recommendation from CEO F&GP recommendation based substantially on recommendation from CEO Subsequent events involving the Chamber have caused CEO to question certain provisions in contract Subsequent events involving the Chamber have caused CEO to question certain provisions in contract If the Chamber does not deliver we don’t pay, but neither do we get Christmas lights and the assets have been given away –> we may need greater security of delivery If the Chamber does not deliver we don’t pay, but neither do we get Christmas lights and the assets have been given away –> we may need greater security of delivery Principal options to secure delivery Principal options to secure delivery Option 1: Penalty clause for non delivery + assets loaned not donated Option 1: Penalty clause for non delivery + assets loaned not donated Simple to administer Simple to administer Penalty clause large if assets are surrendered, smaller if they are not Penalty clause large if assets are surrendered, smaller if they are not Chamber unlikely to accept unless there is an element of profit if they do deliver Chamber unlikely to accept unless there is an element of profit if they do deliver Option 2: Supervised milestones + contract terminates on failure to meet milestones + assets loaned not donated Option 2: Supervised milestones + contract terminates on failure to meet milestones + assets loaned not donated Requires officer time, milestones will need to be early if reversion practical Requires officer time, milestones will need to be early if reversion practical Failure to meet almost inevitably ‘grey’ Failure to meet almost inevitably ‘grey’ No incentive to deliver, effectively Chamber can terminate at will No incentive to deliver, effectively Chamber can terminate at will Summary Summary Neither option totally satisfactory Neither option totally satisfactory The underlying issue is incentive – does the Chamber have a sufficient incentive to do this? The underlying issue is incentive – does the Chamber have a sufficient incentive to do this? Pragmatic recommendation from CEO Pragmatic recommendation from CEO adopt Option 2 and see how it pans out adopt Option 2 and see how it pans out Question carefully any request from Chamber to dilute the terms already set out Question carefully any request from Chamber to dilute the terms already set out The CEO is not aware if there are other reasons which members’ may have for the decision to refer back The CEO is not aware if there are other reasons which members’ may have for the decision to refer back © Bishop’s Stortford Town Council