Agenda item

Verbal update and PowerPoint slides.

The Shareholder Committee received a presentation from the Project Manager, Streetscene.  He reminded members of project management structures and updated them on the current position; the company had been created, the Shareholder Committee was operational, and temporary Directors and a Managing Director had been appointed.  Project management structures were operating effectively and work was progressing across key workstreams.

Key risks of the project were:

·        Achieving fleet maintenance contract procurement in timescale (the fleet needed to have its own contract in place).

·        Establishing workplace pension provider in time for Managing Director arrival (need to procure a pension provider).

·        Project cost overrun due to workstreams not identified and reliance on external advice to augment internal skills and capacity.

·        Delays in recruiting key staff to the LATCo.

These risks were all being managed effectively.

The next steps were:

·        Application for Fleet Operator’s Licence (started).

·        Implement procurement strategy for fleet maintenance.

·        Develop detailed plan for delivery of Company financial arrangements.

·        Onboard Managing Director and develop plan for full management team structure.  The Managing Director was commencing on 16 February 2026 and an interim finance business partner was starting on 9 February.

The Project Manager, Streetscene updated the Committee on the IT, HR, fleet planning, communications, SUEZ demobilisation, and the company set up and governance workstreams, which were all on target.  IT costs were likely to be below budget, whereas HR costs could over run due to the extended scope to include payroll and recruitment, but was currently delivering effectively.  The finance workstream was at risk, but was now being reported as improving; the development of a plan for the finance workstream was critical to ensure effective delivery.  Company branding was being worked on by an external communications agency and proposals would be presented to the Shareholder Committee.

The Committee noted the draft structure of East Devon Environmental Services Ltd.  This would need to be reviewed once the Managing Director was in place.  Any changes to the proposal would need to be agreed by the company’s owner.

Plan B had completed a review of project management arrangements and effectiveness.  Key areas to address were finance workstream, procurement of new supplier contracts and more robust arrangements for SUEZ demobilisation.  It was noted that these had recently been addressed and further focus was needed.  Members questioned why external assurance had been commissioned and the Chief Executive explained that the Council did not currently have the specific inhouse expertise for a programme review of a LATCo so critical friend assurance was sought.

The Portfolio Holder - Environment Operational updated the Shareholder Committee on SUEZ contract performance.  He was pleased to report that the Christmas collection period went well and the teams had worked very hard during the recent floods.  The Committee agreed that SUEZ provided a fantastic service.  The Project Manager reassured the Shareholder Committee that communications with SUEZ staff were ongoing, both formally under TUPE and informally by EDDC staff.  They were committed to ensuring that SUEZ staff would have the same terms of employment and were valued.

On behalf of the LATCo Shareholder Committee the Chair thanked the Project Manager for his presentation and the project update was noted.