Decision - Tender for a Contract for the Provision of a Security Wheel Clamping Service within Brighton & Hove

1.     That the Housing Cabinet Member approve the tendering for a Security Wheel Clamping Service within Brighton & Hove. This will enable these services to commence on 31 January 2009.

2.     That the comments as made by the Housing Management Consultative Committee be noted.

1.     To continue to protect car parking spaces that are let and managed by the HRA on HRA land.

2.     To allow other departments to benefit from a clamping service.

1.     Consideration of an in-house bid:

·       The council does not have an in-house clamping team. This service has always been contracted out to a professional clamping company. Although there has not been full consideration of the legal, practical and financial issues in setting up an in-house unit it is not felt such a team, dealing with council owned car parks, would be the most cost effective way to provide clamping protection where it is required. This is because the clamping contractors are required to provide: a 24-hour service for 365 days of the year; vehicles; towing facilities; signage; vehicle storage facilities; equipment; insurance; fuel; personnel; management support; training. The overheads are likely to be far higher than the income from this single contract. There is then a requirement to attract an existing company that can add B&HCC sites to its current operation and benefit from economies of scale which would not be available to an in-house team.

·       To help illustrate this point the basic costs of leasing a van and providing a 24 hour service using scale 4 operatives are shown below. These costs do not include the various other expenses set out above.

Cost of leasing a van                                       £2,448

Costs for front line personnel                            £131,184*

*This includes the council’s responsibilities in terms of National Insurance and pension contributions. It also takes account of enhancements set out in the green book, which confirms:

Time and a third is paid for working between 8.00pm and 6.00am.

Time and half is paid for working weekends and bank holidays

·       It is estimated that current contract covering Housing Revenue Account sites will generate an income of £64,000 per year. There is some interest from other departments to introduce clamping and there are opportunities to maximise income. It is not known how many new sites would be included if a corporate clamping scheme were introduced or how much income will be generated. From the illustration above it is evident that the income would need to be more than double for an in-house team to break even. There is then an inherent risk that such a team could be a financial burden to both the HRA and the General Fund, at least in the early years when the scheme is expanding.

·       If the proposals contained in this report are agreed the council may wish to revisit an in-house team towards the end of the contract. This would allow the successful contractor to take on the risks of maximising income to the point where an in-house team could take over and enjoy a profit.