Agenda item

(a)  That Officers be instructed to commence to put into place arrangements for the delivery of Environmental Services and Highways in – house, thereby rescinding its decision made on 14 March 2016 for the procurement of a contract for the external delivery of Environmental Services.

(b)  That the Council delivery vehicle should be a ‘Teckal company’ limited by shares with the Council as the sole shareholder for the insourced provision of these services.

(c)  That the necessary powers be delegated to the Strategic Director, Customer & Community Services to have the option (following consultation with the Head of Legal Services) to seek to negotiate an extension of  the existing contract as a temporary contingency, if required.

The Cabinet considered a report that recommended that an in-house model be developed for the delivery of Environmental Services and Highways from December 2017.  This would rescind the decision made by Cabinet on 14 March 2016 to procure a contract for external delivery.  The in-house delivery vehicle would be a ‘Teckal company’, limited by shares with the Council as the sole shareholder.  The new approach had been driven by a review of the commercial considerations which had identified opportunities from an in-house model, in addition to the benefits arising from local authority ownership and accountability.

It was noted that the Overview & Scrutiny Committee had considered the issue at its meeting on 15^th September and had supported the in-house model via the ‘Teckal company’, making some further comments about the engagement with staff and a strong preference to have the new model operational by 1 December 2017.

The process undertaken to date in procuring these services was detailed and the Cabinet noted the options appraisal, financial implications and risks as set out in the report.  Commissioners felt that an in-house model provided an opportunity to achieve service benefits for residents as well as providing commercial opportunities not possible with an outsourced model.  The original decision to outsource the services fifteen years ago had been justified by the improvements secured by Amey and its predecessors, but it was felt that the time was right to take a more commercially astute approach.  Engagement had taken place with Amey and Officers were confident of a smooth transition.

It was noted that several other local authorities were moving in a similar direction to that proposed in Slough, and the Council would proactive to seek to learn lessons and share best practice.  The staffing issues were discussed and it was confirmed that existing terms and conditions would be protected through the TUPE process and HR support would be provided as part of the process.  Speaking under Rule 30, Councillors Bains, Arvind Dhaliwal, Anderson and Swindlehurst raised a number of issues including the implications on the savings plan; the approach to workforce issues; and the risks and potential cost if the timetable slipped and an extension was required.  The detailed points were noted and would be further considered if the Cabinet agreed to proceed with the in-house model.

After due consideration, the Cabinet agreed to instruct Officers to proceed with arrangements of the services in-house via a Teckal company from 1^st December 2017 and to provide a delegation to extend the existing contract if required.

Resolved –

(a)  That Officers be instructed to commence to put into place arrangements for the delivery of Environmental Services and Highways in – house, thereby rescinding its decision made on 14 March 2016 for the procurement of a contract for the external delivery of Environmental Services.

(b)  That the Council delivery vehicle should be a ‘Teckal company’ limited by shares with the Council as the sole shareholder for the insourced provision of these services.

(c)  That the necessary powers be delegated to the Strategic Director, Customer & Community Services to have the option (following consultation with the Head of Legal Services) to seek to negotiate an extension of  the existing contract as a temporary contingency, if required.