Agenda and minutes

To appoint a Chairman for this meeting of the Scrutiny Call-In Committee.

Nominations were requested for a Councillor to act as the Chairman for this meeting of the Call-In Committee.

Councillor T Dicicco was proposed by Councillor K Wild and seconded by Councillor D Howell.

RESOLVED:

That Councillor T Dicicco be appointed as Chairman for this meeting of the Call-In Committee.

To receive apologies for absence and Member substitutions for this meeting.

No apologies for absence were received.

To receive declarations of interest from Members in accordance with the Code of Conduct.

No declarations of pecuniary or conflicts of interest were submitted.

To receive any questions or deputations in accordance with the Council’s Standing Orders.

  No questions or deputations were submitted.

The Call-In Notice submitted in respect of the decision by the Cabinet Portfolio Holder (CPH) for Environment and Highways, Councillor K Hawkins in respect of the decision on the Strategic Environment Contract Procurement Strategy from the CPH Decision Session on 23 June 2020.

The full details of the reasons for the Call-In Notice were set out at Agenda Item 5 of the documents for this meeting. Councillors K Thomas, T Hodgson and D Cole explained in detail their reasons for the Call-In request.

During the course of the Committees consideration of this item, the following comments were made by Members:

Councillor K Thomas addressed the Call-In Committee stating that she was concerned with the decision taken by the Cabinet Portfolio Holder for Environment and Highways for the following reasons. 

Councillor Thomas noted that since the proposals had been originally presented to Cabinet in October 2019, substantial changes had occurred since then, with the Council facing an £18M budget deficit arising through actions taken to address the Covid-19 pandemic, which placed additional need to deliver value for money. The Council’s preferred contract option did not offer Best Value for Money in this scenario.

With reference to Strategic Environment Contract Procurement Strategy report submitted to the Cabinet Member for Environment and Highways on 23 June 2020 and the Neighbourhood Services and Stronger Communities Scrutiny Board on 16 June 2020, the Contract Nature section of the report indicated an expense of £281,137 annually, compared to the running costs of an Alecto.  Further, a Contract Manager role was proposed attracting additional costs, whilst it was expected that some bidders would be required to sub-contract elements of the tender involving additional mark up on contract costs of potentially 5% through the main contractor for the additional management of sub-contractors.

The perceived integrated contract solution was problematic, as it would involve different teams and companies delivering a wide range of service across the Council organisation. The case made for the synergies arising across different service areas through an integrated contract arrangement were rarely tangible and were inherently difficult to prove or challenge.

Paragraph 4.7 Contract Length, detailed the proposed length of contract, from 7 to 10 years, with the potential to extend for a further extension of 10 years, with no break clause. It was not made clear whether notice had been taken of compliance requirements for vehicle fleets in respect of emissions standards (e.g. hydrogen / battery powered fleet vehicles) during the proposed initial 10 year contract period and potential 10 year extension period. If the current vehicle fleets life could be extended by further years it could be the case that an alternative fleet energy solution to petrol/diesel could be available to procure. Alecto may also provide further opportunities in future years to provide a shared charging solution with a number of partners such as SCH, the Council and possibly other public sector partners such as the Police, Ambulance and Fire Brigade services which could reduce the investment required to change to alternative forms of fleet technology.

Paragraph 4.10 Key Areas of Service Design, the requirement to change service length, configuration and design would affect the current contract for waste collection services. 

The proposal also sends mixed messaging around the use of Key Performance Indicators (KPI’s)  ...  view the full minutes text for item 5.

Documents considered at the Stronger Communities and Neighbourhood Services Scrutiny Board meeting on 16 June 2020 in relation to the Strategic Environment Contract Procurement Strategy and draft Minutes arising from the Scrutiny Board meeeting.

The papers considered by the Stronger Communities and Neighbourhood Scrutiny Board on 16 June 2020 were noted.

Documents considered by Councillor K Hawkins as part of the decision making process on 23 June 2020 and detail for decisions arising.

The papers considered by the Cabinet Portfolio Holder for Environment and Highways at the Decision Session of 23 June 2020 were noted.

Councillor Hawkins will provide a verbal statement and response to the Call-In Committee in respect of the grounds cited in the Notice of Call-In .

The Chairman invited Councillor Hawkins, Cabinet Portfolio Holder for Environment and Highways, to respond to the Call-In Notice.

Councillor Hawkins stated that firstly he believed the Call-in of the decision was not required and believed that had a LACTO been established through his CPH Decision Session no Call-in Notice would have been enacted.  Councillor Hawkins noted that at the Stronger Communities and Neighbourhood Scrutiny Board meeting held on 16^th June 2020, Cross-Party Members had reviewed the contract and had recommended that the Strategic Environment Contract Procurement Strategy be supported.  Councillor Hawkins advised that he had attended the Stronger Communities and Neighbourhood Scrutiny Board meeting held on 16^th June 2020 and the Minutes arising from that meeting were a true and accurate note of the proceedings.

Councillor Hawkins proceeded to respond to the Call-In Notice, stating that there were distinct areas of the contract, which included proportionality and openness, cost, contract nature, contract length, Key Performance Indicators (KPI’s) and ICT.

In respect of proportionality and openness, Councillor Hawkins stated that the scope of the new contract would be the same as the current contract, with the addition of Forestry Services.  However, there would be an emphasis on moving towards more sustainable vehicle choices and delivering the Council’s targets for carbon reduction. Options in the contract would also provide bidders with the option of bidding for food waste collections.  The contract would allow for some flexibility to respond to any future changes in policy or legislation, as was the case for the current contract. Waste services had developed significantly since the launch of the current contract, with provision of a fully integrated wheelie bin domestic service for free garden waste, green waste and mixed recycling.  It was expected that services would evolve over time through the new contract which would be structured to provide the flexibility required to make necessary changes as needed. Councillor Hawkins stated that the Council’s current contract was exemplary and one of the best performing in the U.K.

Regarding cost, Councillor Hawkins stated that the figures provided to Cabinet in October 2019 were based on the current service provision, but some changes through procurement for the new procurement may have an effect on these costs, such as procurement of alternative fuelled vehicles, new collection methods and recycling a wider range of materials. No decision had been taken at this time regarding the final shape of the future service, only the method of procurement.

Regarding the contract nature, regardless of whether the service were to be delivered in-house, externalised or through a local authority trading company, there would always be two parties involved, one for delivering the service , the other for monitoring compliance and activity. Both parties would have a Contract Manager in place to provide overview of the contractor / client roles, with the local authority’s Contract Manager ensuring services were delivered to the required standards.  An integrated contract would have only one Contract Manager. In contrast, separate contracts would have a Contract Manager for  ...  view the full minutes text for item 8.