As requested by the Audit and Risk Management Committee on 28 September 2011 (Minute No. 244 refers), a report was presented to the Cabinet by the Interim Director of Technical Services that provided an overview of the Highway and Engineering Services Contract which commenced in April 2009 and included evidence to confirm that the proposed benefits to be realised from the new contract, including value for money, were being achieved.

In addition, the report provided an update regarding the contract at the end of its third year of operation and reported the financial changes that had taken place to the contract as required by with Contract Procedure Rule 16A.

The maintenance of all aspects of the highway infrastructure carried out through this contract were statutory duties imposed on the Council as the Highway Authority.

Part of the report related to financial aspects of the contract and comparison with other authorities’ contracts which was exempt from public disclosure in accordance with paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972.  This information was separately contained in Appendices 4 and 5 to the report and considered in the absence of the press and public (Minute No. 97 refers).

The report also noted that the current contractor had now formally advised that it did not wish to extend the contract past its current end date of 31 March 2014 on the present terms.

Councillors Harry Smith and Phil Davies welcomed the report on the performance of the contract and that it was in the public domain.  They were pleased that the recommendations in the District Auditor’s Public Interest Report on the Highway and Engineering Services Procurement Exercise were being addressed.

RESOLVED: That the Cabinet

(1)  notes the progress of the contract during the past year, including the concerns recorded by the Sustainable Communities Overview and Scrutiny Committee regarding the performance of the contract, and invites that Committee to seek such assurance from officers and the contractor that their concerns were being suitably addressed;

(2)  notes that the current contractor has formally notified the Council that it does not wish to extend the contract beyond its current end date of 31 March 2014 on the present terms;

(3)  requests that the Interim Director of Technical Services prepares a report appraising future options for the delivery of the Highway and Engineering Services from 1 April 2014, at the earliest opportunity;

(4)  notes that the Sustainable Communities Overview and Scrutiny Committee has asked the Director of Technical Services to report on progress on preparation and delivery of a comprehensive exit and handover strategy relating to the satisfactory completion of the current contract, and effective and efficient transition to the new service delivery arrangements, in his future annual reports on the contract;

(5)  notes that Officers will be undertaking actions, in response to the External Auditor’s Report in the Public Interest; especially in relation to the management of the highway and engineering services contract, and that progress in delivering those actions will be monitored through the Corporate Improvement Board.