Agenda item

Peter Osborne (Cabinet Member for Highways and Transport), Helen Rowe (Interim Head of Highways-Virtually) and Robin Hadley (Soft Landscape Asset Manager) were in attendance for the item:

1.The Cabinet Member discussed the following:

a)    The report sought approval to procure new contracts for the maintenance of urban grass, shrubs and hedges on the highway network. The officer explained that the existing contracts would expire on 28 February 2027 and could not be extended further without exceeding their approved financial limits.

b)    Members noted the importance of maintaining effective vegetation management on the highway network and welcomed the proposed arrangements to secure the continued delivery of the service.

2. Members discussed the following points:

a)    A Member expressed concerns regarding the timing of the proposed procurement arrangements in light of forthcoming Local Government Reorganisation (LGR) proposals. Suggestions were made that it would have been more beneficial to wait for a future Council(s) boundary model to deliver procurement around.

b)    Officers acknowledged the concern and disclosed that a number of contract clauses had been incorporated to address with LGR directly. Additional aspects on having a contract in place for March 2027, and contract provisions to modify, adapt and change to potential boundaries were raised.

c)    Members were advised that, in addition to the proposed two-lot model, the contract documentation would include alternative pricing mechanisms and explained that the intention was to build as much flexibility as possible into the procurement process to ensure that the Council could respond to future changes in service requirements and organisational arrangements.

d)    Officers further discussed that the tender stage had not yet begun although this was due to occur shortly. Final tenders would target the back end of the year although managing the function around LGR would be a complex endeavour.

e)    In response to questions raised verge management, officers advised that the current specification enabled selected urban verges to be converted to pollinator-friendly verges where appropriate. Discussions outlined the proposed contract lot arrangements and advised that there may be an opportunity to review and redefine lot boundaries following the implementation of LGR.

f)      Concerns were raised on the current use of weedkillers, discarded vegetation (after works), blocked pathways, invasive weed management and the overall performance monitoring of maintenance works attributed to KCC. Officers acknowledged the concerns raised and suggested a meeting take place beyond the scope of the Committee to address Members concerns directly.

g)    Members emphasised the importance of ensuring that feedback from officers and operational experience informed the development of the new contract specification so that identified shortcomings could be addressed through the procurement process.

h)    Clarification was sought on the risks associated with procuring the service through multiple contract lots and how best value would be achieved.

i)      Officers explained that the contract structure had been informed by previous experience and extensive market engagement, including consultation with small and medium-sized enterprises.

j)      In response to questions about the use of two contract lots, Members were advised that providers had strongly supported the approach, as larger volumes of work enabled economies of scale and a more competitive pricing. Smaller lots were considered less economical and could increase costs to the authority.

k)    Discussed that the five-year term would enable providers to recover investment costs for equipment, depots and staffing and clarified that the contract covered grass cutting, hedge and shrub maintenance, and biodiversity management, but did not include weed treatment services.

l)      Queries were raised on the responsibility of drainage cutouts and how hedge cutting could lead to a productive environment for invasive weeds. Officers explained the differences in the contracts and how such aspects would be manged, timetables and areas of responsibility.

m)   A Member sought clarification on the extent to which the successful contractors would be permitted to subcontract elements of the service, noting the importance of understanding how the work would be delivered in practice given the proposed two-lot contract structure. Officers confirmed that providers could subcontract if they wished.

n)    The discussion further expanded that all subcontractors would be subjected to KCC vetting process. Officers noted that similar contracts in the past had rarely been subcontracted.

o)    Queries were raised on holding providers to account if KPIs were not reached. The officer reported that contractor performance was reviewed through monthly monitoring meetings. Members were advised that new requirements under PCI 23 meant that certain performance measures would need to be published online to improve transparency.

p)    The contract included mechanisms to address persistent defects and service failures. Members were advised that where defects were not rectified, a financial deduction could be applied, typically amounting to around 5% of the contractor's payment claim.

q)    It was reported that continued poor performance could trigger further contractual remedies under the contract conditions including the ability to appoint alternative contractors to complete outstanding works or, where necessary, terminate the contract.

r)     Members asked for updated schedules on works be provided to allow better communication with the boroughs. Officer acknowledged the request.

s)    Officers clarified that closer working arrangements with district authorities to improve street cleansing could provide an effective alternative to increased herbicide use. It was discussed that removing debris and potential seed beds through regular cleansing could reduce weed growth and therefore reduce the need for chemical treatment.

RESOLVED to endorse the proposed decision, namely:

1.         APPROVAL to procure and award a new Highways Urban Grass, Shrubs and Hedges Maintenance contract for up to five years with an opportunity to extend this for up to three further years,

2.         DELEGATE authority to the Director of Highways and Transport to take relevant actions to facilitate the required procurement activity,

3.         DELEGATE authority to the Corporate Director of Growth, Environment and Transport, in consultation with the Cabinet Member for Highways and Transport to take relevant actions including but not limited to awarding, finalising the terms of and entering into the relevant contracts or other legal agreements, as necessary, to implement the decision and

4.         DELEGATE authority to the Corporate Director of Growth, Environment and Transport, in consultation with the Cabinet Member for Highways and Transport, to award extensions of the contract in accordance with the relevant clauses within the contract.