To inform the Committee of progress with the Streetscene major procurements that are currently underway and seek views on any issues that the Committee would wish to be considered in concluding the procurement process to put in place new contractual arrangements from the end of August 2013.

The Committee were informed of progress with the Streetscene major procurements that were currently underway.  The Committee also expressed its views on issues for consideration in concluding the procurement process to put in place new contractual arrangements from the end of August 2013.

The Cabinet Member – Major Contracts, briefly outlined the budget position and the contract timetable and emphasised that Cabinet would consider the major procurements at a meeting on 13 June 2013.

The Assistant Director, Place Based Commissioning, highlighted that four related procurements had been established to put in place new arrangements from 1 September 2013.  These were outlined in more detail in the agenda report but covered: Public Realm; Building Services; Building Cleaning, and Ancillary Services. He took the Committee through the key points in the report.

During the course of debate the following principal points were noted:

·         With one month to go the principal elements for the contracts were already in place.

·         The competitive dialogue procedure had enabled dialogue with bidders to include locality needs e.g. the Lengthsman Scheme.

·         Questioned on the payment mechanisms (para 10.15) it was clarified that lump sum elements may be paid where the risk was low and clearly identified e.g. in building Services where maintenance was programmed and on a costed basis.  Reactive payments, which would be kept to a minimum, would be for emergency works.

·         The Committee noted the level of intended savings but questioned whether the report set out sufficient financial data to substantiate the savings claimed. Year on year capital/revenue figures would have been useful.  In response the committee were informed that historical spending levels had been used and depended on the balance between revenue and capital, and to a degree income from the Belwin scheme.  Figures had been presented to Cabinet in an earlier report.

·         The contract will allow services to be devolved to other organisations.  Competence or enhanced performance may need to be established.

·         The Public Realm contract would be for 10 years with options to extend.  In circumstances of poor performance it could be cancelled.

·         Questioned on information sharing and providing information to ward members, it was confirmed that this would occur under locality or engagement with providers; community, and town and parish councils.

·         The Monitoring Officer confirmed that in accordance with the Council’s decision making procedure under the constitution, governed by the Local Government Act 2000, Cabinet would make the decision concerning the contracts.

·         Officers working with the consultants had strived to ensure that the contract specifications were correct.  The Council needed to ensure that the future provider(s) delivered the services to the expected levels.

·         The Committee were informed that the competitive dialogue process was a recognised tendering practice and involved dialogue with bidders with the aim of developing alternative solutions to meet requirements.

·         There were currently three potential bidders in the Public Realm process.

·         The potential for initial capital investment in highway assets had had no limiting effect on bidders, in fact this had been seen as a positive opportunity to discuss the potential for investment.

·         While a number of benefits had been identified (see para 10.9) a blended approach would be adopted.  All bids would be judged against the set framework.

·         Stakeholder input or feedback had been captured over the years and had been fed into the considerations, however, the contracts needed to be in line with the Council’s objectives.

·         In view of their potentially heightened role, it was suggested that town & parish councils should be given early warning ie via a communications plan, of the range of issues they will need to consider or discuss with the new provider later in the year.

·         Staff at risk or affected by the changes will be appropriately managed.

·         Questioned on the cost of the procurement process the Committee were informed that an estimate had been provided to Cabinet as part of the budget consideration.  Budget provision had also been included in the 2013/14 budget.

·         There would be no minimum spend element within the contract.  Also there would be no exclusivity to the contract, however, as a responsible client it would be expected that the majority of work would be placed with the contractor(s).

·         It was anticipated that small scale ancillary services would be procured on an as and when basis.

·         Questioned on how contracts would be assessed and monitored, and by who, the Committee were informed that the Client Team would be monitoring contracts against the performance framework.  Penalties may be applied. Conversely contracts may be extended.

RESOLVED: That

1.    The Committee recommends that the report to Cabinet, anticipated 13 June 2013, concerning future contractual arrangements to replace the Amey contract should:

a)         Include greater detail on the historical levels of funding for services to ensure that the anticipated level of savings assumed in the report can be clarified and extrapolated;

b)        In relation to the Public Realm contract, include details of how stakeholder requirements captured during consultations have, or have, not been addressed during consideration of the contract proposals;

c)         Provide information immediately to town & parish Councils giving them early warning i.e. via a communications plan, of the range of issues they will need to consider or discuss with the new provider later in the year and that a timetable for these discussions prioritising engagement with city and market towns be drawn up.

2.    The report entitled Streetscene – Major Procurements, be noted.