ITEM 11 - North Yorkshire County Council

ITEM 11NORTH YORKSHIRE COUNTY COUNCILCOUNTY AREA COMMITTEE FOR THE HARROGATE DISTRICT28 JULY 2011POST-IMPLEMENTATION REVIEW OF THE TERMINATION OF THEHARROGATE HIGHWAYS AGENCY AGREEMENT1.0 PURPOSE OF REPORT1.1 The purpose of this report is to update Members on the post-implementationreview of the transfer of the services previously carried out by HarrogateBorough Council under the former Highway Agency Agreement to directdelivery by the County Council.2.0 BACKGROUND2.1 The County Council had a Highways Agency Agreement with HarrogateBorough Council which terminated in March 2010. The Agency arrangementscovered only the urban areas of Harrogate and Knaresborough. The CountyCouncil provided the highways service for the remainder of the County withthe exception of Scarborough urban area where a similar agency agreementwas in place with Scarborough Borough Council. The agreement withScarborough Borough Council terminated in March 2011.2.2 The Agency Agreement delegated powers to Harrogate Borough Council toundertake day-to-day delivery of highway services within the urban areas ofHarrogate and Knaresborough.2.3 Issues of policy and strategy development for highways throughout theCounty, primarily through the Local Transport Plan (LTP), remained theresponsibility of the County Council. In addition, the County Council wasresponsible for the management and coordinated maintenance of highwaystructures (bridges and retaining walls) in the Agency Areas.2.4 The County Council was also responsible in the Agency Area for revenue andcapital budget allocation; preparation of the annual maintenance andintegrated transport works programmes; maintaining the street works register,the list of streets and associated plans; accident investigation; Service CentreTransportation Strategies; network condition monitoring surveys; winterservice systems and bureau service.NYCC – 28 July 2011 – County Area Committee for the Harrogate DistrictHarrogate Highways Agency Agreement – Review of Termination/1

2.5 The County Council Executive considered a report at their meeting on8 January 2008, setting out the following overall benefits identified with theTermination of the Highway Agency arrangement, and resolved to terminatethe Highway Agency Agreement with both Harrogate and ScarboroughBorough Councils.The headline benefits identified were:1) The service would be delivered more uniformly across the County throughCounty Council policies and strategies.2) There would be economies of scale which would allow more competitiveprocurement of services.3) There would be increased flexibility over staff resources enabling staff tocover greater areas.4) There is potential for savings particularly at managerial levels.5) Clear control and accountability through a single authority rather thandirect input from three local authorities.2.6 This report reviews the benefits realised in relation to 1, 3, 4 and 5 above todate following the first 12 months of termination of the Harrogate andKnaresborough Highway Agency Agreement, and provides an update on 2.3.0 REVIEW OF BENEFITS3.1 The service would be delivered more uniformly across the Countythrough County Council policies and strategies.3.1.1 With the day-to-day highway service being delivered through the localArea Highway Office, now based at Boroughbridge, there is aconsistent application of the County Council policies and strategiesacross the Borough. The arrangement has removed the issues of localinterpretation of application of policies and removed the need foradditional meetings with officers, previously employed by the BoroughCouncil, with regard to dissemination of highways policy information.There has been a closer alignment of identification of issues andschemes put forward for consideration for funding through the LocalTransport Plan capital allocation.3.2 There would be economies of scale which would allow more competitiveprocurement of services.3.2.1 Due to the contractual arrangements in place between HarrogateBorough Council and their term maintenance contractor Ringway priorto the termination of the Highway Agency Agreement, it has beennecessary for the County Council to continue with this termmaintenance contract arrangement. This has resulted in the CountyCouncil having to manage two contracts for the delivery ofimprovement and maintenance schemes in the Borough sinceNYCC – 28 July 2011 – County Area Committee for the Harrogate DistrictHarrogate Highways Agency Agreement – Review of Termination/2

April 2010. The contract with Ringway terminates in March 2012. TheCounty Council’s Highway Maintenance Contract (HMC) with BalfourBeatty Workplace (BBW), which currently covers most of the Countyhighway network but excludes the former Agency areas of Harrogateand Scarborough, will also end in March 2012 and is currently beingretendered. It is essential that this new contract covers the wholeCounty otherwise the tenders would be bidding on an unknownquantity of work given the risk that capital allocations could be madewholly to the two Agency areas. The fact that we have been able totender 100% of the highway network will mean a more competitiveprice and reduced risk.3.2.2 The outcome of the procurement process for the new HMC isscheduled to be reported to the Executive on 27 September 2011.3.3 There would be increased flexibility over staff resources enabling staffto cover greater areas.3.3.1 With staff transferring from Harrogate Borough Council to the CountyCouncil on the termination of the Highway Agency Agreement it hasbeen possible to deploy those members of staff in an efficient mannerto cover delivery of the service across the district. Similarly, staffpreviously deployed on delivery of the service outside of the urban areaare used to best effect in delivery across the whole Borough. This hasenabled the duplication of effort on areas of similarity of work streamsto be reduced. Additionally, in areas of specialism, for example trafficsignals design and maintenance, it has been possible for the expertiseof staff previously employed in the respective authorities to be used tobest effect across the county, improving the efficiency of delivery.3.4 There is potential for savings particularly at managerial levels.3.4.1 The termination of the agency agreement was achieved without anyincrease in the NYCC management structure based at County Hall.The operational element of the service delivery is through the localArea highway office which is managed by the Area Highway Manager.A new staff structure was required as a result of the termination of theagency arrangement, and this has recently been reviewed to ensurethat it meets operational delivery requirements Under the previousarrangements Harrogate Borough Council also required a managementarrangement to deliver the service within the urban area. It isestimated that the removal of management duplication has savedapproximately £86k/annum. The total investment in highway works inthe urban area in 2010/11 was £2,865k compared to an average of£1,210k per annum for the previous three years thus demonstratingthat the reduction in management has not adversely impacted on theability to deliver.NYCC – 28 July 2011 – County Area Committee for the Harrogate DistrictHarrogate Highways Agency Agreement – Review of Termination/3

3.5 Clear control and accountability through a single authority rather thandirect input from three local authorities.3.5.1 The above statement refers to the fact that at the time there was also aHighway Agency Agreement with Scarborough Borough Council. Thisagency was terminated in March 2011.3.5.2 The removal of the Highway Agency Agreement has resulted in greaterclarity for the general public and Members regarding accountability fordelivery of the highway service. For example, previously a resident ofKillinghall would report all highway issues to the County Council,whereas a resident living in New Park area would raise local highwayissues with the Borough Council but would be required to raise issuesof policy with the County Council. This arrangement not only causedfrustration for members of the public but also had the potential ofinconsistency in delivery. Similarly, bringing the delivery of the servicethrough a single point has reduced the burden of programming thedelivery of the service between the two authorities and has reduced therisk of conflict between competing schemes, causing undue delay onthe network.3.5.3 Whilst considering the termination of the Highway Agency Agreementmembers acknowledged the need to continue to look at areas ofservice where enhanced two-tier working between the County Counciland the Borough Council could deliver further efficiency savings andimproved delivery of the service. Officers in the respective authoritieshave assessed those areas of service delivery where enhanced servicedelivery is considered beneficial to the authorities. Service LevelAgreements are currently in place for the following services. Theseagreements will be reviewed annually to ensure they are current andcontinue to represent good value and provide the most efficient servicedelivery.• Grass cutting• Gully cleaning• Tree works• Weed spraying• CCTV4.0 CONCLUSION4.1 The justification for the termination of the Highway Agency Agreement withHarrogate Borough Council considered by the County Council Executive inJanuary 2008 was:1) The service would be delivered more uniformly across the County throughCounty Council policies and strategies.2) There would be economies of scale which would allow more competitiveprocurement of services.NYCC – 28 July 2011 – County Area Committee for the Harrogate DistrictHarrogate Highways Agency Agreement – Review of Termination/4

3) There would be increased flexibility over staff resources enabling staff tocover greater areas.4) There is potential for savings particularly at managerial levels.5) Clear control and accountability through a single authority rather thandirect input from three local authorities.4.2 The post-implementation review set out in pargraphs 3.1, 3.3, 3.4 and 3.5 ofthis report demonstrates that reasons 1, 3, 4 and 5 for the termination weresound. With regard to reason 2, the economies of scale (paragraph 3.2), theoutcome of the procurement process for HMC 2012 is scheduled to bereported to the Executive on 27 September 2011.5.0 RECOMMENDATION5.1 Members are recommended to note the update on the Post-ImplementationReview of the Termination of the Harrogate Highways Agency Agreement.DAVID BOWECorporate Director – Business and Environmental ServicesAuthor of report: Elwyn WilliamsNYCC – 28 July 2011 – County Area Committee for the Harrogate DistrictHarrogate Highways Agency Agreement – Review of Termination/5