© bishop’s stortford town council appendix 3: markets initial briefing

© Bishop’s Stortford Town © Bishop’s Stortford Town Council Council

Appendix 3: MarketsAppendix 3: Markets

Initial BriefingInitial Briefing

BackgroundBackground

On 17On 17thth June 2013 Town Council resolved 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 Followed a recommendation from the Local Government Status Task & Finish GroupGovernment Status Task & Finish Group Two possible ways to progress identified – informally Two possible ways to progress identified – informally

and through the Community right to Challengeand 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 must use the Community Right to Challenge if

we wish to progress thiswe wish to progress this© Bishop’s Stortford Town © Bishop’s Stortford Town

Council Council

Community Right to ChallengeCommunity Right to Challenge Enabling Legislation: Localism Act 2011Enabling Legislation: Localism Act 2011

Allows relevant bodies to run authority services ‘differently and Allows relevant bodies to run authority services ‘differently and better’. Includes full and part of service.better’. Includes full and part of service.

District and county can be challengedDistrict and county can be challenged Town Council can challenge but cannot be challengedTown Council can challenge but cannot be challenged

ProcessProcess Town Council (or other body) submits an expression of interest Town Council (or other body) submits an expression of interest

Straightforward processStraightforward process requires certain information about the challenging body to be set outrequires certain information about the challenging body to be set out no commitment at this stageno commitment at this stage

District Council makes a decision on the submissionDistrict 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 requestedModification to submission can be requested

If successful -> District Council must run a procurement exerciseIf successful -> District Council must run a procurement exercise challenger challenger and others and others can bidcan bid

Business case for Town Council to run the MarketBusiness case for Town Council to run the Market Cannot be completed until the procurement exercise is runCannot 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!


Preliminary Outline Financials Preliminary Outline Financials Expenditure Cost Income AmountCapital Costs Stalls £1,7761 Fees & Charges £66,450

Signage £1,0002 Licence Fees £04

Running Costs Electricity £570

Staffing Salary£18,750

3

Logistics Street Cleaning £2,560Refuse Clearance £11,950

Insurance Misc & Third Party £330Other Advertising £2,570

Subscriptions £670NNDR £9,390Other £100

Total Expenditure£49,66

6 Total Income £66,450 Net£16,78

4


Final Business case will depend on tender conditionsInitial indications are that market could be profitable under BSTC management, significant savings possible compared to EHDC operating model due to local presence

Notes1: 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 DetailBackground Detail


SourcesSources

East Herts District Council budgetary East Herts District Council budgetary information taken from the ‘Divisional Budgets’ information taken from the ‘Divisional Budgets’ booklet, based on the 2012/13 estimates. This booklet, based on the 2012/13 estimates. This relates specifically to B/S Market (the budget is relates specifically to B/S Market (the budget is split by location).split by location).

Stall rent charges taken from the EHDC website.Stall rent charges taken from the EHDC website. Stall purchase figures taken from www.market-Stall purchase figures taken from www.market-

stalls.co.uk, www.marketsuppliesdirect.com and stalls.co.uk, www.marketsuppliesdirect.com and www.apexmarketstalls.co.uk.www.apexmarketstalls.co.uk.

Market Distribution based on visual estimates.Market Distribution based on visual estimates.


Capital Costs & Running CostsCapital Costs & Running Costs

Capital CostsCapital CostsPurchase of Market Stalls and Covers varies depending on source:Purchase of Market Stalls and Covers varies depending on source:

Low end = £101Low end = £101 High end = £185High end = £185 Average = £148Average = £148

EHDC lists Purchase & Maintenance of Equipment as costing £1,750. EHDC lists Purchase & Maintenance of Equipment as costing £1,750. At least part of this figure will include the above.At least part of this figure will include the above.

BSTC estimates a need to replace Stalls every two years. It is estimated 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 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 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 £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 EHDC budget. As such, 24 would not be an unreasonable estimate, and approximately the same cost of £1,776 a year could be used.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 Likely to include signage, bins, Christmas lights and the like. Stortford

would likely only need to purchase signage for £2,000 - £3,000. would likely only need to purchase signage for £2,000 - £3,000. Depreciated over 3 years (£1,000 a year).Depreciated over 3 years (£1,000 a year).

Running CostsRunning CostsEHDC 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 © Bishop’s Stortford Town

Council Council

StaffingStaffing Bishop’s Stortford Town Council estimates the Bishop’s Stortford Town Council estimates the

salary of the Market Manager as costing salary of the Market Manager as costing £25,000 a year based on full time.£25,000 a year based on full time. As the Market Manager would only work 2 days a As the Market Manager would only work 2 days a

week, with normal hours being from 6am to 6pm, week, with normal hours being from 6am to 6pm, this figure changes to £15,000. Additionally £3,750 this figure changes to £15,000. Additionally £3,750 (25%) is added for other costs, totalling £18,750.(25%) is added for other costs, totalling £18,750.

An even better result is likely to be possible by using An even better result is likely to be possible by using TIC staff to perform the on-site supervision and cash TIC staff to perform the on-site supervision and cash collection (hours coincide nicely) with backup from a collection (hours coincide nicely) with backup from a manager employed say 1 day per week.manager employed say 1 day per week.

EHDC lists salaries as costing £18,860. These EHDC lists salaries as costing £18,860. These figures are comparable.figures are comparable. TUPE may apply, tender document would have to TUPE may apply, tender document would have to

clarify this and would affect our responseclarify this and would affect our response© Bishop’s Stortford Town © Bishop’s Stortford Town

Council Council

Logistics & InsuranceLogistics & Insurance

There are two third party contracts BSTC There are two third party contracts BSTC would need to take over in order to would need to take over in order to operate the Market:operate the Market: Street Cleaning = £2,560Street Cleaning = £2,560 Refuse Clearance = £11,950Refuse Clearance = £11,950

Regarding Insurance:Regarding Insurance: East Herts District Council pays £330 for Misc & East Herts District Council pays £330 for Misc &

Third Party Insurance (for B/S Market). This Third Party Insurance (for B/S Market). This would remain the same.would remain the same.

EHDC requires the trader to possess Public EHDC requires the trader to possess Public Liability Insurance.Liability Insurance.


OtherOther

EHDC lists advertising as costing £2,570.EHDC lists advertising as costing £2,570. Advertising figure would depend on BSTC Advertising figure would depend on BSTC

commitment to advertising.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.


IncomeIncome

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 This appears a good estimate, as dividing by regular

trader fee equates to an average 58.42 pitches a trader fee equates to an average 58.42 pitches a week (standard size), 29.21 a day. As seen on next week (standard size), 29.21 a day. As seen on next slide, this is in line with real pitch numbers.slide, this is in line with real pitch numbers.

Stall Rent:Stall Rent: EHDC charges a regular trader £21.80 for a 7’*10’ EHDC charges a regular trader £21.80 for a 7’*10’

Stall (2.10m*3.00m).Stall (2.10m*3.00m). EHDC charges a casual trader £26 for the same EHDC charges a casual trader £26 for the same

dimensions.dimensions. EHDC charges £1.20 for each additional 1’EHDC charges £1.20 for each additional 1’22 (0.09m (0.09m22).).


Market Distribution – Saturday (13Market Distribution – Saturday (13thth April 2013)April 2013)

10 different stalls.10 different stalls. Took up an estimated Took up an estimated

28 standard pitches 28 standard pitches (10’*7’).(10’*7’).

Every stall appeared to Every stall appeared to take up at least 2 take up at least 2 pitches, with the most a pitches, with the most a single stall occupied single stall occupied being 4.being 4.

The number of pitches The number of pitches used is in line with used is in line with estimated Market estimated Market distribution (29.21 a distribution (29.21 a day).day).


Location Stall# of pitches (estimate) Produce

Market Square 1 3 FlowersPizza Hut 1 2 Cakes, meats, producePizza Hut 1 2 Clothes

Boots 1 2 Socks, clothesGreggs 1 3 Pet supplies

Cookshop 1 4 FlowersWaterstones 1 2 BagsWoollen Mill 1 3 Bread and delicatessen

Dorothy Perkins 1 3 Batteries, light bulbs, etc.Weber 1 4 Fruit & veg

Total 10 28

© bishop’s stortford town council appendix 3: markets initial briefing

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