Purpose of the report: Scrutiny of Services
In January 2015 the authority will have to make a decision on extending the highways maintenance term contract with Kier. The initial term of the contract finishes in April 2017 and Surrey have a choice of either not extending beyond that or extending by up to four years. The Member Reference Group (MRG) was asked to review the contract with Kier and provide Select Committee with their insights on that decision.
Minutes:
Witnesses:
Jason Russell, Assistant Director for Highways and Transport
Mark Borland, Works Delivery
Group Manager
Key
Points Raised During the Discussion:
1. The report was introduced
by the Assistant Director for Highways and Transport (ADHT) who
provided a brief overview of the report, highlighting the good
level of contact between Surrey, Kier Officers and the Member
Reference Group (MRG) both before and during the formation of the
report.
2. The ADHT advised that, in
line with the MRG’s assessment, Kier be allowed to develop a
5 year business plan - in conjunction with Surrey Officers -
covering the 2016/21 period to be delivered to Cabinet by the end
of next year. As part of this process it was recommended by the
ADHT that a one-year extension be granted to the existing contract
to allow a business plan to be drawn up. It was also established
that the existing MRG should be closely involved in this
process.
3. Members were informed that
the MRG had also been instrumental in identifying areas requiring
improvement such as the current IT infrastructure employed by
Highways teams. It was stressed by the Committee that the
management of IT infrastructure of this kind would be essential to
the success of normal operations going forward and that it was
important for Officers to continue to identify areas where SCC and
Kier systems can align and to ensure software compatibility where
possible. This was noted as being critical to the long term success
of the contract; particularly in light of recent IT upgrades being
carried out by Kier internally.
4. Members expressed concern
over the issues raised in Paragraph 26 regarding the level of
communication SCC and Kier are reported to have had with residents
up to this point. The Committee stressed the importance of SCC and
Kier representatives having regular contact with Local Committees
and endorsed that officers find means of achieving this in the long
term.
5. The Committee expressed the
view that communication problems impacted local businesses during
periods where road maintenance was carried out. Members cited
issues with the quality of road signage and the inadequate level of
consultation prior to road closures as having adversely affected
businesses as a result. The Committee expressed a desire to see the
development of a clearer communication strategy in order to tackle
this more appropriately in future.
6. Members noted issues
concerning the efficiency of current gulley cleaning efforts being
administered by Conway and expressed a desire to see this addressed
more acutely in future.
7. The Committee raised
concerns with the points raised in Paragraph 30 regarding the
existing organisational structure of Surrey Highways. Members
maintained that further restructuring was unnecessary and stressed
that previous efforts had resulted in a worsening of communications
between stakeholders rather than an improvement.
8. The ADHT advised the
Committee that both Kier and SCC are continuously making
improvements to the service to make it as robust as possible. It
was also acknowledged that improving the quality of communication
with residents was key to this and would continue to be at the
forefront of this approach going forward.
9. The Committee was informed
that one means being considered to address this was the creation of
a dedicated public liaison officer within the terms of the
contract. Members were concerned whether this was feasible with the
funding constraints of the current contract. It was explained that
such a position would funded through further efficiencies in the
current contract.
10.Officers explained to the Committee that sub-contractors have
been used in the existing framework. It was noted that the service
was looking to more localized supply chains for sub-contractual
work where appropriate (in line with Kier and SCC
standards).
11.Members
were made aware that SCC was in a good position in comparison to
other authorities on this item. The ADHT explained that the
proposed 5 year extension consideration allowed for SCC’s
proposals to be both more comprehensive in a national context and
was unique in this respect.
12.Members
of the MRG explained to the Committee that they plan to continue
holding each body to account through site visits and conversations
directly with Kier and SCC representatives. It was also established
that the MRG will meet with Members from Northamptonshire in the
New Year to evaluate their experiences with Kier and identify areas
where this can improve SCC’s existing arrangement.
Recommendations:
The Environment and Transport Select Committee agreed the following recommendations;
a)
That the Select Committee endorse the proposal that
Cabinet approve an initial extension to the Kier contract of at
least one year; during which time Kier will be given the
opportunity to work with Surrey to develop a 5 year business plan
covering the period 2016-2021.
b)
That the Highways and Transport MRG provide ongoing
member insight and scrutiny and report back to Select Committee
before October 2015.
Actions/Further Information to be Provided:
Committee Next Steps:
None.
Supporting documents: