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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 07/02/2005
Contract Monitoring Arrangements



Summary & Purpose
In March 2004, the Council agreed to the future employment of its own appropriately qualified and experienced Officers to monitor both the relet Waste Management Contract and the Grounds Maintenance Contract. These direct monitoring arrangements will replace those existing, whereby the contractor is required to monitor the quality of his own work.

It was further agreed that a sum equivalent to the existing cost of the contractor funding his own staff would be identified as available to enable the Council to fund the employment of Waverley Contract Monitoring Officers from the beginning of November 2005. This will coincide with the commencement of the new contracts. The overall financial implications of these new arrangements are therefore neutral.

This report presents the associated figures and seeks approval for the addition of two posts to the Council’s staffing establishment commencing in November 2005.

Quality of Life Implications
Natural Resource Use
Pollution Prevention and Control
Biodiversity and Nature
Local Environment
Social Inclusion
Safe Communities
Local Economy
Natural
Resource Use
Pollution
Prevention and Control
Biodiversity
and Nature
Local
Environment
Social
Inclusion
Safe, Healthy
and Active
Communities
Local
Economy
Positive
Positive
Positive
Positive
Positive
Positive
Positive


APPENDIX P
WAVERLEY BOROUGH COUNCIL

EXECUTIVE – 7TH FEBRUARY 2005

Title:
CONTRACT MONITORING ARRANGEMENTS
[Wards Affected: All]

Summary and purpose:

In March 2004, the Council agreed to the future employment of its own appropriately qualified and experienced Officers to monitor both the relet Waste Management Contract and the Grounds Maintenance Contract. These direct monitoring arrangements will replace those existing, whereby the contractor is required to monitor the quality of his own work.

It was further agreed that a sum equivalent to the existing cost of the contractor funding his own staff would be identified as available to enable the Council to fund the employment of Waverley Contract Monitoring Officers from the beginning of November 2005. This will coincide with the commencement of the new contracts. The overall financial implications of these new arrangements are therefore neutral.

This report presents the associated figures and seeks approval for the addition of two posts to the Council’s staffing establishment commencing in November 2005.

Quality of life implications – social, environmental & economic (sustainable development):

The refuse, recycling, environmental cleaning and grounds maintenance services are among the most visible services provided by the Council and therefore upon which it is often judged. Efficient and effective removal of domestic waste and litter from public spaces and provision of safe and well-maintained outdoor recreational areas makes a fundamental contribution to the quality of life in Waverley.

E-Government implications:

There are no direct e-government implications arising from this report, although monitoring staff would use information technology for monitoring, reporting and communicating with the contractor.

Resource and Legal Implications

These are described in detail in the body of the report.

Introduction/Background

1. At its meeting on 9th March 2004, the Executive considered a report on the “Re-tendering of Major Service Contracts – Policy Issues”, the purpose of which was to enable members to make a range of policy decisions about the form of the new contracts. These needed to be determined before the specification and conditions of contract for tendering the service contracts could be finalised.

2. In relation to future contract monitoring, the Executive, agreed that:-

3. As a result of this policy decision, the requirement for the contractor to provide a monitoring service was removed from the specifications.

4. The requirement for a budget variation for these positions has already been identified (without cost implications) as part of the draft budget for 2005/06. This report confirms the funding required to meet the variation.

Contract Monitoring and Service Delivery

5. Best Value reviews have been undertaken in respect of the Council’s Waste Management and Grounds Maintenance Services. Among the findings of both reviews it was determined that contract monitoring should be returned in-house when the contracts were re-let. This was reinforced at a Members’ Workshop to consider retendering issues held in the Council Chamber on 4th March 2004, and subsequently confirmed by the Executive on 9th March 2004. The key benefits of bringing the contract monitoring service back in-house are:
Resource Implications:

6. Whilst it is not possible to identify the exact sum charged to the Council for providing the Contract Monitoring Service, current employment legislation requires the contractor to provide information under the Transfer of Undertakings [Protection of Employment] Regulations 1981 (known as TUPE), which relates to their staff costs associated with the contract. This has been used to identify the present annual sum of 45,500 as Arkeco’s salary costs in employing the existing monitoring staff, comprising one full-time Quality Assurance Manager and 2 part-time Quality Inspectors.

7. This sum does not take account of other, non-salary, costs which include travel, employer’s pension provision and national insurance contributions which are estimated to total a further 15,500 for the two posts. It can therefore be assumed that the contractor recharges an annual sum of 61,000 at 2004/05 prices to provide this service. It can also be assumed that the contractor adds profit and management related overheads to these identified figures although no account has been taken of these for the purpose of quantifying the existing costs.

8. The costs associated with Waverley employing its own in-house contract monitoring staff are set out in Annexe 1 to this report. It is proposed that the new appointments should commence on 1st November 2005, at the start of the new contract. The sum of 22,813 will need to be included in the 2005/06 budget, being equivalent to 5 months of the annual cost. This will also be taken into account when evaluating the impact of the cost of the new contracts.

9. In addition to the direct employment costs, there will be start up costs which include a one-off payment for the provision of a workstation and any advertising costs associated with recruitment. It is anticipated that these costs will be met from existing budgets.

10. Officers recommend the employment of two full time post holders, one dedicated to monitoring the Grounds Maintenance Contract and the other to monitor the Waste Management Service Contract. The requirements of these posts have been evaluated as falling within the Council’s salary grade range 8e1 – 8c.

Legal Implications

11. At present, there are not considered to be any legal implications directly associated with this report. However, it should be noted that the TUPE Regulations may have a bearing on how these posts, if approved, are filled.

Conclusion

12. The proposal set out in this report to bring the contract monitoring service back in-house is at a cost equivalent to that included in the current contracts. Officers consider that this transfer will bring about a more efficient and effective service and provide added value to the Council in the longer term.

Recommendation

It is recommended that the Executive commends the Council to:-
CONTACT OFFICERS:

Name: Julie Maskery Telephone: 01483 523432

E-mail: jmaskery@waverley.gov.uk

Name: Martin Shorten Telephone: 01483 523434

E – mail: mshorten@waverley.gov.uk

comms/executive/2004-05/389