Agenda item

Recommendations

1.     The Executive approves the transfer of staff and functions from NYC to NY Highways with effect by the 01 July 2026 for street sweeping and Highway Operations

2.     The Executive approves the Council disposing of the street sweeper vehicles and highway maintenance vehicles as detailed in the report and delegate negotiation and agreement of the final price of the vehicles and terms of the asset transfer agreement to the Assistant Director, Environment and Transport.

3.     The Executive delegate any other necessary steps to implement this decision including but not limited to entering contracts detailed in this report (excluding the asset transfer) to the Assistant Director – Highways & Infrastructure, Environment Directorate.

4.     To amend the Environment Directorate organisational structure and move the responsibility for those functions outlined earlier, to sit within NY Highways. This will include some Business Support functions yet to be confirmed.

5.     Subject to Member approval of the above, Executive are asked to approve the following on behalf of NYC in its capacity as Shareholder of NY Highways:

                   i.           The acquisition by NY Highways of all the vehicles detailed in this report from NYC.

                  ii.           To open the LGPS pension scheme via a variation to the Deed of Accession for NY Highways to allow pension continuation for all transferring NYC staff to NY Highways.

                iii.           To agree the matters referred by the Board of Directors as detailed in confidential Appendix A; and 

                iv.           To delegate any other shareholder decisions necessary to facilitate the transfer from NYC to NY Highways to the Chief Executive as Shareholder Representative.

Considered – A report of the Assistant Director Highways and Infrastructure providing an update on work relating to the future operating model for mechanical sweeping and the proposed alternative operating model for duties currently undertaken by Highway Officers, Assistant Highway Officers and certain Maintenance Managers in NYC’s Highways Operation Area teams.  It was proposed that these officers, along with responsibility for mechanical street sweeping, move to North Yorkshire Highways in order to improve efficiency, consistency and value for money. 

North Yorkshire Highways formed part of the Council’s Brierley Group of companies and Executive were also asked to approve a number of matters on behalf of NYC in its capacity as Shareholder of NY Highways.  These included recommendations relating to the TUPE transfer of staff which were set out in exempt Appendix A.

The Executive Member for Highways and Transportation, Councillor Malcolm Taylor, explained that the proposals would provide for more effective and efficient service delivery following reorganisation.  The proposals would bring about significant revenue savings, while maintaining engagement with local communities and performance standards.  Members acknowledged the human resources implications for the staff involved.

Resolved (unanimously)

1)    The Executive approves the transfer of staff and functions from NYC to NY Highways with effect from the 1 July 2026 for street sweeping and Highway Operations

2)    The Executive approves the Council disposing of the street sweeper vehicles and highway maintenance vehicles as detailed in the report and delegate negotiation and agreement of the final price of the vehicles and terms of the asset transfer agreement to the Assistant Director Environment and Transport.

3)    The Executive delegate any other necessary steps to implement this decision including but not limited to entering contracts detailed in this report (excluding the asset transfer) to the Assistant Director Highways and Infrastructure, Environment Directorate.

4)    To amend the Environment Directorate organisational structure and move the responsibility for those functions outlined earlier, to sit within NY Highways. This will include some Business Support functions yet to be confirmed.

5)    Subject to Member approval of the above, Executive are asked to approve the following on behalf of NYC in its capacity as Shareholder of NY Highways:

i.        The acquisition by NY Highways of all the vehicles detailed in this report from NYC.

ii.       To open the LGPS pension scheme via a variation to the Deed of Accession for NY Highways to allow pension continuation for all transferring NYC staff to NY Highways.

iii.      To agree the matters referred by the Board of Directors as detailed in confidential Appendix A; and 

iv.      To delegate any other shareholder decisions necessary to facilitate the transfer from NYC to NY Highways to the Chief Executive as Shareholder Representative.

Reasons for recommendations

The recommendations contained in this report are to enable this proposed change in service delivery model to be advanced and realise savings under the revised delivery model.

Alternative options considered

A number of options have been considered:

Do nothing – retaining the status quo would not make use of the opportunities for closer working / further integration with NY Highways, nor would it assist in the realisation of savings from the Council’s Revenue Budget

Transfer only part of the HO / AHO / MM function to NYH – this has been discussed at length in the engagement sessions. Highway Officers in particular were not supportive of this option as they felt it would remove variety from their role but also might see one HO passing another to undertake different functions in the same geographical areas, resulting in inefficient practices.

Transfer all HO / AHO and some MM functions to NYH – this has been deemed the most viable and efficient option. Maintenance Manager functions can be more easily undertaken remotely in many cases and given the necessary interface between NYH and NYC to ensure the HOs’ / AHOs’ duties are being discharged effectively. Whilst there will be a different focus/emphasis on NYH MM duties and NYC MM duties, there will inevitably be ongoing dialogue alongside a matrix management arrangement between NYC and NYH outlined in the overarching SLA or variation to NYH 2021 Highway Maintenance Contract.

The entire mechanical sweeping fleet, including assets associated with pavements and pedestrianised areas, could move across to NYH; this could be considered as a second phase and moving the largest fleet first does not impact the viability of any future changes.