Agenda item

RESOLVED:

The Cabinet Procurement and Insourcing Committee agreed to:

·  Award the delivery and concession contract to:

·  Bidder C- for Contract 1- Rapid charges

·  Bidder G- for Contract 2&3 Fast and slow charges

·  Do not award contract for Contract 4- Fleet charges

·  To enter into a Concession Contract and other ancillary legal documentation relating thereto for the installation of electric vehicle charging points under terms as shall be agreed by the Director of Legal, Democratic and Electoral Services, and authorise the Director of Legal, Democratic and Electoral Services to prepare, agree, settle and sign the necessary legal documentation to effect the proposals contained in this report.

·  Note that a recommendation will be made to Cabinet that surplus revenue generated by the EV charge points is used to support active and sustainable travel projects that support the Council’s wider aims to reduce private vehicle use. “Surplus revenue” will mean any monies left over after covering lost income and direct staff costs relating to managing the project. This report is dependent on the successful outcome of the separate decision on additional resource for staff costs.

REASONS FOR DECISION

The published report outlines the procurement process for securing long term partner supplier/s using a Competitive Procedure with Negotiation procurement route, and entering into a Concession contract for borough wide electric vehicle charging infrastructure in Hackney.

Through the borough-wide electric vehicle charging points rollout - as well as

additional policies to restrict private petrol and diesel motor vehicles - the Council aims to achieve the following objectives:

? Reduction in overall motor vehicles ownership in the borough

? Increase in proportion of electric vehicles, through encouraging the transition

of remaining vehicles to EV

The two main factors deterring people from switching to electric vehicles are

anxiety around charging and battery range. By providing a high supply of EVCPs, we anticipate an increase in the likelihood of residents switching to EVs. It is recognised that complementary policies aimed at restricting car ownership, of any sort, will also be needed to achieve a reduction in car ownership overall. For this purpose, we aim to create a charging infrastructure that will drive demand, rather than follow demand.

Council to date has 303 charging points, meeting in 2018 Mayor Manifesto

Commitment for everyone in the borough to be 500m from an EV charge point.

The Council wants to be more ambitious and accelerate the switch to EVs

through a number of measures, including parking restraint measures, as well as a high provision of EVCPs. With the right set of measures, the Council can influence the adoption of EVs in line with the projection in the figure below, which sees the supply of EVCPs leading the demand. For this purpose, the provision of the 2041 EVCP requirements of 3,000 charging points ahead of time will address consumer anxiety around availability of charging. The Council proposes to supply the 2041 requirement by 2030.

The long term contract and partnership style promotes cooperation between the supplier and the Council and will allow for a partnership delivery approach. The Council and its appointed partner/s will share responsibility for delivery, tariff setting, profit sharing and risk management.

A Concession based contract will include the provision of infrastructure of electric vehicle charging points for the borough which is fully funded by the partner/s, with flexibility to amend the contract and allow the Council to contribute any government grants received into the scheme so as to enable the Council to secure wider community benefits for the borough through this contract.

The recommended partners bids exceed the expectations set out in the

Invitation to Tender specification, offering the Council fully funded infrastructure for electric vehicle charging points across the borough and a share of income. The total expected revenue/profit share expected from the 15 years concession contract per Contract 1-3 are included in Appendix 1.The selected bidders have also completed the Employment and Skills Plan for 2022/23 for each Contract, listed in Appendix 2. The submitted plans explain the added economical value to the borough with the number of jobs created, apprenticeships and opportunities for local skills and development which this project is looking to deliver.

Awarding the contract will significantly contribute to the Climate Action Targets

for the borough and reduce the impact of high polluted emissions from fossil fuels vehicles. The project is identified in both the current Air Quality Action Plan and Borough-wide Emission Strategy, and Transport Strategy. The outcome and the impact on improving air quality from less polluted vehicles will be measured as part of the wider air quality assessment for the borough, along with other sustainable transport measures, such as Low Traffic Neighbourhoods and School Streets.

10.1  The Council’s Senior transport planner introduced the report which outlined to the Committee of the results of the procurement exercise carried out between June 2021 and May 2022 to deliver and operate a network of Electric Vehicle Charging Points (EVCP’s) within the borough and recommends the award of three contracts for a 15 year term to Bidders C & G.

10.2  The Cabinet member for environment and transport, Councillor Mete Coban, spoke briefly welcoming the report and supporting the work that had been undertaken.

10.3  On the matter of accessibility particularly in relation to lamp columns, the Senior Transport Planner explained that it was an issue high on the service’s agenda. They would ensure that any impact that occurred was complementary to the Council’s other schemes to improve cycling and walking. With lamp columns it was recognised that there was an addition when people were charging their electric vehicles so the Council would ensure that on each lamp column was installed with a dedicated EV bay. This would allow members of the public do not only charge their EVs but also minimise the risk of trailing cables. The EVCPs would be within the boundaries of the parked car.

10.4  Councillor Coban added that the programme was seeking to install at least one EVCP on every Council estate in Hackney.

10.5  The Council’s Fleet Manager explained that a great deal of work  would have to be undertaken regarding this area of work in relation to the Council’s fleet of vehicles. Hackney Council had one of the largest fleet of vehicles in London with currently 521 vehicles. So in order to plan for  wide rollout the Council would need to consider how the work would be  undertaken over a number of depots with parked vehicles overnight. There was required work to assess the power supply to depots and the work required to upgrade the power based on the assumption that the rest of  the Council fleet was to be electrified.

RESOLVED:

The Cabinet Procurement and Insourcing Committee agreed to:

·  Award the delivery and concession contract to:

·  Bidder C- for Contract 1- Rapid charges

·  Bidder G- for Contract 2&3 Fast and slow charges

·  Do not award contract for Contract 4- Fleet charges

·  To enter into a Concession Contract and other ancillary legal documentation relating thereto for the installation of electric vehicle charging points under terms as shall be agreed by the Director of Legal, Democratic and Electoral Services, and authorise the Director of Legal, Democratic and Electoral Services to prepare, agree, settle and sign the necessary legal documentation to effect the proposals contained in this report.

·  Note that a recommendation will be made to Cabinet that surplus revenue generated by the EV charge points is used to support active and sustainable travel projects that support the Council’s wider aims to reduce private vehicle use. “Surplus revenue” will mean any monies left over after covering lost income and direct staff costs relating to managing the project. This report is dependent on the successful outcome of the separate decision on additional resource for staff costs.

REASONS FOR DECISION

10.5  The report outlines the procurement process for securing long term partner supplier/s using a Competitive Procedure with Negotiation procurement route, and entering into a Concession contract for borough wide electric vehicle charging infrastructure in Hackney.

10.6  Through the borough-wide electric vehicle charging points rollout - as well as additional policies to restrict private petrol and diesel motor vehicles - the Council aims to achieve the following objectives:

? Reduction in overall motor vehicles ownership in the borough

? Increase in proportion of electric vehicles, through encouraging the transition of remaining vehicles to EV

10.7  The two main factors deterring people from switching to electric vehicles are anxiety around charging and battery range. By providing a high supply of EVCPs, the Council  anticipate an increase in the likelihood of residents switching to EVs. It was recognised that complementary policies aimed at restricting car ownership, of any sort, will also be needed to achieve a reduction in car ownership overall. For this purpose, the Council  aim to create a charging infrastructure that will drive demand, rather than follow demand.

10.8  Council to date has 303 charging points, meeting in 2018 Mayor Manifesto Commitment for everyone in the borough to be 500m from an EV charge point.

10.9  The Council wants to be more ambitious and accelerate the switch to EVs through a number of measures, including parking restraint measures, as well as a high provision of EVCPs. With the right set of measures, the Council can influence the adoption of EVs in line with the projection in the figure below, which sees the supply of EVCPs leading the demand. For this purpose, the provision of the 2041 EVCP requirements of 3,000 charging points ahead of time will address consumer anxiety around availability of charging. The Council proposes to supply the 2041 requirement by 2030.

10.10  The long term contract and partnership style promotes cooperation between the supplier and the Council and will allow for a partnership delivery approach. The Council and its appointed partner/s will share responsibility for delivery, tariff setting, profit sharing and risk management.

10.11  A Concession based contract will include the provision of infrastructure of electric vehicle charging points for the borough which was fully funded by the partner/s, with flexibility to amend the contract and allow the Council to contribute any government grants received into the scheme so as to enable the Council to secure wider community benefits for the borough through this contract.

10.12  The recommended partners bids exceed the expectations set out in the

Invitation to Tender specification, offering the Council fully funded infrastructure for electric vehicle charging points across the borough and a share of income. The total expected revenue/profit share expected from the 15 years concession contract per Contract 1-3 are included in Appendix 1.

10.13 The selected bidders have also completed the Employment and Skills Plan for 2022/23 for each Contract, listed in Appendix 2. The submitted plans explain the added economical value to the borough with the number of jobs created, apprenticeships and opportunities for local skills and development which this project was looking to deliver.

10.14    Awarding the contract will significantly contribute to the Climate Action Targets for the borough and reduce the impact of high polluted emissions from fossil fuels vehicles. The project was identified in both the current Air Quality Action Plan and Borough-wide Emission Strategy, and Transport Strategy. The outcome and the impact on improving air quality from less polluted vehicles will be measured as part of the wider air quality assessment for the borough, along with other sustainable

transport measures, such as Low Traffic Neighbourhoods and School Streets.