Business Partnerships - Rochdale Borough Council - · PDF fileThe Business Partnerships Service was established in April 2006. ... 917 778 813 236 32 23 ... • Closer co-operation

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BUSINESS PARTNERSHIPS

Description of the Service

The Business Partnerships Service was established in April 2006. It is a service consisting of new and existing Council functions.

The Service is divided into four distinct areas

• Client Services

• Corporate Procurement

• Facilities Management

• Electronic Schools Purchasing Information (e-Spi) Team

Budgetary Issues and Financial Risk for the Service over the period 2009/10 – 2011/12

There are significant challenges for all the areas within the new Service. In addition to the budget reduction measures, which have been identified for the Service, the challenges include;

• Impact Partnership: there is still work to be undertaken to further develop the systems and processes to support the partnership. The relationship with the private sector provider is also continually developing with delivery of performance information a priority. These include the continued implementation of the Council’s Contact Centre and developing a fully integrated HR/Payroll system. The Service has a role to play in supporting the Partnership’s growth model and job creation strategies. The Service plays a large role in ensuring that the Partnership delivers Value for Money and is helping to achieve the Council’s aims and priorities.

• Link4Life: the new Trust commenced business at 1 April 2007. The Service acts in the capacity as the Council client and works closely with the Trust to ensure it delivers Value for Money and is helping to achieve the Council’s aims and practices along with other Council Services, Partners and Stakeholders are to contribute to the Trust’s business plan via a visionary event.

• Schools Catering: there remains a significant challenge for the Council to provide nutritional meals to schools and seek to maintain and increase uptake. The excellent work with the Schools Service and other partners will continue to strive to make RMBC an exemplar provider in the field of education catering. The challenge will be to ensure that the cost of providing a quality service is competitive and provides Value for Money.

• Corporate Procurement: this part of the Service has a significant part to play in ensuring the Council is spending its money in the best way possible and achieving value for money. There will be an increased emphasis on efficiency, which will mean working closely with Council Services and partners to realise significant savings targets whilst ensuring local suppliers and contractors are given the opportunity to tender for Council contracts.

• E-Spi: Working closely with the Department of Children Schools and Families to ensure the smooth transfer of the provision of this Service of e-procurement for almost 800 schools across Greater Manchester, until 31/03/11.

Financial Risks include:-

• Non-achievement of corporate procurement savings targets • Under recovery of external income in Facilities Management and increased costs • Partners failing to manage and monitor the Council budgets appropriately with risk of creating

deficits

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Performance Information

The performance of each area of activity is detailed in the individual sections of the budget book.

Key Improvement activities over the period 2009/10 – 2011/12

• Look to extend Partnership working and develop the commissioning role of the Service. • Further improve the attendance figures for the Service • Develop a stable and robust financial basis for Facilities Management, which will provide a sound

platform on which to build on new and existing business. • Work with the Schools Service to introduce the next stages of the nutritional standards for school

food. • Improve the process of benefits realisation in order to drive efficiencies through the Council when

projects are approved • Develop the Council’s approach to Procurement to ensure savings identified are achieved across

all Council Services. • To review the systems which are in place to ensure effective monitoring of the Council’s

contractual Partnerships to ensure Value for Money is being provided, KPIs are being met and the Partnerships are assisting the Council in achieving its aims and priorities.

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2008/09 2009/10 2010/11 2011/12 REVISED ORIGINAL ORIGINAL ORIGINAL

ESTIMATE ESTIMATE ESTIMATE ESTIMATE £' 000 £' 000 £' 000 £' 000

Functions provided by Service

81 Management 0 0 0 -1,042 Corporate Procurement -843 -840 -836 1,143 Facilities Management 366 352 278 6,211 Client Services 5,790 6,069 6,381

0 E-Spi-Schools Brokerage 0 0 0 9,849 Impact - Highways 9,994 10,227 10,527

16,242 Net cost of providing services to the Public 15,307 15,808 16,350

Types of Expenditure

11,711 Employees and related expenses 11,879 12,067 12,267 6,369 Premises related expenses 6,450 6,711 6,854

59 Transport related expenses 60 63 63 10,137 Supplies and services 9,966 10,083 10,295 22,356 Agency and contracted services 21,046 20,824 21,520 8,711 Central departmental and support services 9,067 9,207 9,252

-6,180 Capital financing -4,378 -3,400 -3,563

12,630 Less internal service departmental recharges 13,795 14,016 14,122 316 Contribution to/-from a reserve 207 211 214

Income

0 Grants - Government and other 0 0 0 24,606 Rents, Fees & Charges 25,195 25,942 26,430


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VARIATION STATEMENT 2008/09

Base Estimate

Revised Estimate

1 Budget brought forward from previous year

Estimate - Total Requirements

2 RSG Changes - Transfer of responsibility

Adjusted Estimate

3 Contribution to Capital

4 Growth

5 Inflation

6 Other increased costs

7 Efficiency Savings

8 Contribution to balances

9 Internal charges

10 Asset Rentals

11 Switches

Estimate

Increased/(Decreased) Requirements

Est 2008/09 Est 2009/10 Est 2010/11 to Est to Est to Est 2009/10 20010/11 2011/12 £' 000 £' 000 £' 000

16,243 15,307 15,808

16,243 15,307 15,808

373 0 0

16,616 15,307 15,808

0 0 0

16,616 15,307 15,808

0 0 0

-305 -153 -75

917 778 813

236 32 23

-500 0 0

49 3 3

-1,793 -359 -303

93 200 81

-6 0 0

15,307 15,808 16,350

-936 501 542

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CAPITAL Business Partnerships

Detailed below are schemes approved as part of the 2009/10 capital programme and provisional budgets for future years.

Highways& Engineering

Scheme Description Objectives Budget 2009/10 £000's

Budget 2010/11 £000's

Budget 2011/12 £000's

Local Transport Plan

Authority to spend on Capital Highway Works from DFT in response to the joint submission by the Association of Greater Manchester Authorities (AGMA) and the Passenger Transport Authority (PTA/E)

Work to meet DFT criteria dealing with highway accident black spots, structural maintenance of highways and bridges, and travel via sustainable modes to address accessibility, congestion and air quality.

4,257 4,725 4,725

Bridge Strengthening and Maintenance

DFT fund on prime road network

Funding in respect of specific maintenance work

1,000 1,000

Sub Total 5,257 5,725 4,725

IT and E-Government


Budget 2010/11 £000's

Budget 2011/12 £000's

Information Technology -Impact Partnership

Contractual commitment with Impact for the technical modernisation of IT.

This funds IT developments and PC replacements

1,348 1,348 1,348

Sub Total 1,348 1,348 1,348

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CAPITAL continued Asset Management Group


Budget 2010/11 £000's

Budget 2011/12 £000's

Planned Maintenance

Implementation of prioritised planned maintenance projects.

To adequately maintain and reduce the maintenance backlog across the Council's building assets.

2,300 2,300 2,300

DDA, Survey, Asbestos & Fire

Under the control of Asbestos at Work Regulations 2002 there is a legal duty on owners, occupiers and managers of premises to manage the risk of asbestos

To successfully complete the assessments within the timeframe agreed and meet Councils Legislative Requirements

750 750 750

Sub Total 3,050 3,050 3,050

Cultural Trust


Budget 2010/11 £000's

Budget 2011/12 £000's

Central Leisure Complete mix of facilities including replacement fitness suite, wet provision and a new 4 court sports hall.

The provision of high quality leisure services affects the council's Corporate Performance Assessment score.

1,500 6,480 220

Heywood Sports Village

Upgrade facilities which will include a new swimming pool, enhanced fitness facilities and new space for community participation in sport and the arts as well as improvements to outdoor grassed pitches

Similarly, the leisure facility supports the council's corporate aim to improve the health of the borough.

6,401 3,201

Golf Course Improvements to golf course which include a new practice putting area, new grass cutting equipment refurbishment of club shop/ticket office with improved lighting and replacement windows.

300

Sub Total 8,201 9,681 220

Grand Total 17,856 19,804 9,343

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MANAGEMENT


The functions of the four areas of the Service are described in their individual sections. The Service continues to deliver its operational activities in addition to playing a significant role in developing and delivering Council wide initiatives and projects. The senior managers are all engaged in corporate activities and will continue to promote the Single Team principles in everything we do.

Budgetary Issues and Financial Risks for the Service over the period 2009/10 – 2011/12


• Continue to embed programme and project disciplines across all areas of the Service • Continue to improve attendance and reduce absence rates across the Service • Achieve the outcomes from our contractual partners and deliver efficiency and measurable

service improvements. • Continue to develop and test the viability of the commercial businesses within Facilities

Management and deliver quality value for money services. • Raise the profile of corporate procurement across the Council and to lead and manage the

achievement of the Council’s procurement savings whilst improving the ability of local suppliers and contractors to be successful in winning Council contracts, to aid regeneration.

• Develop new and creative opportunities for partnership working

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MANAGEMENT




81 Management 0 0 0

81 Net cost of providing services to the Public 0 0 0


83 Employees and related expenses 86 89 92 0 Premises related expenses 0 0 0 0 Transport related expenses 0 0 0 0 Supplies and services 0 0 0

1,803 Agency and contracted services 1,737 1,801 1,858 2,191 Central departmental and support services 2,383 2,425 2,444

Capital financing

3,996 Less internal service departmental recharges 4,206 4,315 4,394 Contribution to/-from a reserve

Income

Grants - Government and other Rents, Fees & Charges


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CORPORATE PROCUREMENT


The unit co-ordinates and manages the council’s expenditure on goods, materials, equipment and services. It also acts on behalf of schools, colleges, voluntary bodies and Rochdale BoroughWide Housing. The unit also ensures that UK and EC procurement legislation is complied with and that the council obtains maximum Value for Money as a result of its procurement activities.


Sufficient resources are needed to ensure that the Unit can guarantee compliance with Procurement Best Practice within the council, the achievement of savings targets, the achievement of Level 4 Equality and Diversity targets and that measures to improve the local economy, especially in relation to maximizing business opportunities for SME’s, BME enterprises and the Third Sector, are actively pursued.

Non achievement of procurement savings targets.


• Introduction of a Business Portal. • Introduction of Purchasing Cards • Full development of e procurement (full electronic ordering capability) • Closer co-operation and joint procurement activities with AGMA authorities • Development of closer links with the local economy • Raising of the Units profile both within and outside the Council and obtaining corporate ‘buy in’ for

the changes necessary for savings to be achieved. • Ensuring the adoption of Best Practice procurement techniques within the Council • Achievement of savings targets • Reduce non contract “maverick" spend

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CORPORATE PROCUREMENT




-1,042 Corporate Procurement -843 -840 -836

-1,042 Net cost of providing services to the Public -843 -840 -836


272 Employees and related expenses 279 285 292 167 Premises related expenses 91 91 91

2 Transport related expenses 2 2 2 100 Supplies and services 77 78 80

0 Agency and contracted services 0 0 0 95 Central departmental and support services 110 113 115 0 Capital financing 0 0 0

277 Less internal service departmental recharges 398 405 412 0 Contribution to/-from a reserve 0 0 0

Income


-1,042 Net cost of providing services to the Public -843 -840 -836

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FACILITIES MANAGEMENT


The Facilities Management Service (FM) has been in existence since 1st April 2004. The service employs approximately 1100 catering, cleaning and caretaking specialists working in schools, colleges, public buildings, and local businesses throughout the borough. FM’s HQ is based at Folly Walk but it also has responsibility for public buildings including the Town Hall Buildings, Municipal Offices, St Albans House, Telegraph House and Whitworth Road Depot.

One of FM’s key objectives is to improve customer contact with a view to retaining and improving the business base. This applies to Schools and in the Corporate and Commercial arena. FM Catering’s main focus and passion is to improve nutrition for young people working in partnership with schools and other partners to improve health and educational attainment in the borough.

On an annual basis FM sends out a ‘Services to Schools’ survey to gain quantitative feedback and measure customer satisfaction levels. Internal Staff Surveys are also undertaken on a regular basis to measure staff satisfaction.


• Increased costs of school meals due to implementation of nutrient/nutritional guidelines • Significant reduction in number of meals on wheels required over last 12 months • Closure of Great Hall for essential maintenance for lengthy periods and the effect of this on

income generation. • Additional costs in productivity and food in delivering nutritional standards to schools • Longer opening hours for buildings resulting in pressures in terms of energy, servicing buildings

and increased energy costs. • Increase in staffing costs as a result of the implementation of the Pay and Grading review


• More robust method of charging for primary school meals • Ensuring FM provide value for money to customers and remain competitive • Review of use of multi-use buildings with a target of reducing revenue costs (including energy

costs)

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FACILITIES MANAGEMENT




0 Management 0 1 1 294 Catering 310 381 419 105 Cleaning 17 -64 -171 744 Corporate Buildings 39 34 29

1,143 Net cost of providing services to the Public 366 352 278


9,498 Employees and related expenses 9,853 10,106 10,358 3,212 Premises related expenses 3,227 3,251 3,231

41 Transport related expenses 41 44 44 2,349 Supplies and services 2,317 2,340 2,367

0 Agency and contracted services 0 0 0 3,545 Central departmental and support services 3,547 3,548 3,501

0 Capital financing 0 0 0


Income


1,143 Net cost of providing services to the Public 366 352 278

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CLIENT SERVICES


• We work with our partners and other contractors to ensure they deliver their contractual obligations and help the Council achieve its aims and priorities. Our partners are:

• The Impact Partnership, delivering ICT, Highways & Engineering, Property, Contact Centre and Payroll Services

• Link4Life, delivering sports, leisure and the Arts • Operon, ensuring the new PFI school buildings are properly managed • We ensure that we meet our contractual obligations to our partners, including paying invoices on

schedule • We take a pragmatic and practical approach to resolving issues as they arise in collaboration with

our partners. • We work with the partners to provide accurate, reliable and timely information about their

performance. • We liaise with other services in the Council in order to promote the relationships and maximise the

mutual benefits. • We work with other services using project management skills to help them deliver their projects. • We look to commission other Council Services to ensure efficient and effective delivery by using

proven techniques in procurement and project management. • We communicate & promote best practice to others in the Council and to other Councils in the

country.


• The Building Schools for the Future Programme will create more relationships with external partners which ultimately the Service will manage. This may mean that additional resources will be needed to manage and monitor these contracts.

• Breach of contractual relationship including a failure to adequately deliver Services and meet performance targets. The size of the Client Services Team and the lack of a ‘technical’ client resource increases the risk in this area.

• Degree of trust in the operations of the partners • Risk of achieving the affordability of the Impact Partnership


• Produce a proposal for the future commissioning role for the service and look to identify and join up commissioning activity across the Council and partners.

• Improve co-ordinated communication with the rest of the Council and other clients, including reporting of key performance data.

• Continue to develop and review governance processes to ensure that any issues in any of the relationships can be dealt with swiftly and effectively.

• Ensure mechanisms exist and are used to contribute to effectively challenge business and other key strategic plans.

• Review the resources and skills needed to provide an effective client team by benchmarking with other Local Authorities with similar contractual partners.

• Review the systems and processes in place which are used to monitor the performance of the contracts to ensure they are robust.

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CLIENT SERVICES




-63 Client Services Management -134 -144 -151 436 Retained Property/Payroll/IT Budgets 170 441 712

1,524 Retained Culture Budgets 1,423 1,359 1,324 77 Impact Partnership 0 0 0

4,237 Cultural Trust 4,331 4,413 4,496



850 Employees and related expenses 808 717 636 2,311 Premises related expenses 2,434 2,655 2,803

0 Transport related expenses 0 0 0 615 Supplies and services 187 123 63

20,305 Agency and contracted services 19,057 18,768 19,403 586 Central departmental and support services 734 754 769

-7,903 Capital financing -6,101 -5,123 -5,287

8,329 Less internal service departmental recharges 9,160 9,264 9,283 37 Contribution to/-from a reserve 45 46 47

Income



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E-SPI – SCHOOLS BROKERAGE


e-Spi is a project being delivered across seven local authorities namely, Bolton, Bury, Manchester, Rochdale, Salford, Stockport and Tameside and involving approximately 800 schools. The team, based in the host Authority, Rochdale, works across the partner Authority schools and with local and national providers of goods and services to offer dedicated assistance in the purchase and provision of a diverse range of goods and services to schools.

Following the successful Pathfinder project for the DfES, the Service will be provided by DCSF, with staff being seconded to DCSF until 31/03/11.


The project is funded by the AGMA authorities involved therefore there are no budgetary issues or financial risk. Rochdale’s contribution is funded from the schools block. Following the transfer of the Service to DCSF, they will refund the Council for the staffing costs in the Service with a proposed small contribution involved in relation to a shortfall in salaries if necessary, however there is a risk of redundancy costs during and at the end of the secondment period which would have to be shared between the 7 authorities.


The smooth transition of the provision of the service by DCSF.

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E-SPI - SCHOOLS BROKERAGE




0 E-Spi - Schools Brokerage 0 0 0



233 Employees and related expenses 242 250 259 13 Premises related expenses 13 13 13 7 Transport related expenses 8 8 8

40 Supplies and services 41 41 42 0 Agency and contracted services 0 0 0 0 Central departmental and support services 0 0 0 0 Capital financing 0 0 0


Income

0 Grants - Government and other 0 0 0 293 Rents, Fees & Charges 304 312 322


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Highways Budgets

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IMPACT - HIGHWAYS


The Highways and Engineering Service became part of the Impact partnership in April 2006. The service looks after the Borough’s road network and provides highways and engineering advice to other parts of the Council.

The strategic aims and priorities of the service support the council’s strategic plan. Through the provision of a safe and efficient highway network we can help create the best quality of life for all local people. Through our public consultation processes and work with local members we aim to support local people and stakeholders by speaking up for their interests. When developing our programmes of work we aim to keep the things that matter most too local people as our priorities. By working towards these aims we will provide a service that creates high public satisfaction locally and help the borough become a high performing council nationally.

Budgetary Issues and Financial Risks for the Service over the period 2009/10 - 2011/12

Pressures on the Highway Revenue budget will continue to limit the amount of planned maintenance and improvement work as resources are directed to reactive work aimed at keeping our network in a safe condition. The level of reactive maintenance work will continue to sustain our efforts to reduce the costs of insurance claims against the council. Significant progress in this area has been achieved in recent years and has continued in 2007/08.

The proposed Street Lighting PFI project has progressed to the procurement phase with a programmed start in 2009. This project will secure significant investment to improve street lighting across the borough.

Capital Funding through the Local Transport Plan process has been focussed on three major schemes at Kingsway/Oldham Road, Sudden, and Townhead. The completion of these schemes in 2008 will allow future programmes to direct resources to the local transport issues emerging through the new Township Plans. The successful delivery of schemes which support the aims of the Local Transport Plan is the key to securing future capital funding through the LTP process.

The service has also been working with partners in Greater Manchester to secure significant investment through the Transport Innovation Fund, news regarding this funding is expected in early 2009 and will shape future decisions on transport investment throughout the region.

The service continues to support regeneration projects across the borough with significant progress in Middleton Town Centre, Kingsway Business Park, and Rochdale Town Centre. As these projects proceed they will have an impact on income from the council’s car parks which will need to be monitored and budgeted for in future years.

Key Improvement activities over the period 2009/10 - 2011/12

• The service will continue to work towards an affordable and deliverable solution for the Street Lighting project through 2008.

• We will progress with the procurement of a new Highway Maintenance contract this year. • As part of the Impact Partnership we will continue with our programme of service transformation

activity across all areas aimed at service improvement.

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IMPACT PARTNERSHIP

Highways & Engineering – National Performance Indicators

PI No Performance Indicator 2004/5 Actual

2005/6 Actual

2006/7 Actual Direction

99a People killed or seriously injured (KSI) 80.00 80.00 75.00 Ï

99b Children killed or seriously injured (KSI) 17.00 17.00 20.00 Ð

99c People slightly injured 1,124.0 0

1,071.0 0

1,125.0 0 Ð

100 Average days temporary traffic controls in place per km of traffic sensitive road 1.78 0.64 4.00 Ð

165 Percentage pedestrian crossings with facilities for disabled people 50.00% 57.00% 5.30% Ð

187 Condition of surfaced footway 21.99% 14.24% 19.00% Ï

215a Average days to repair street lighting faults, non DNO

New 05/06

8.60 8.12 Ï

215b Average days to repair street lighting faults, under control of DNO 38.00 87.22 Ð

223 Condition of principal roads 23.00% 16.00% Ï

224a Percentage LA non principal road network where maintenance should be considered 37.00% 21.00% Ï

224b Percentage unclassified road network where structural maintenance should be considered 9.70% 13.00% Ð

Performance has improved in nearly half of the areas measured. With regard to 99a – 99c, the number of people killed or seriously injured has fallen overall, however both the number of children killed and seriously injured and the number of people slightly injured have marginly increased. However, we continue to identify and deliver local safety schemes to address key accident areas and general road safety in the borough.

The average number of days that temporary traffic controls are in place has increased to 4.0 and this is largely due to a number of large schemes that have recently commenced in the borough on traffic sensitive roads, as well as responding to Health & Safety requirements when on site.

With regard to the percentage of pedestrian crossing with disabled facilities (165) the criterion for success changed from 12mm curbs to 6mm during the year. Every local authority affected, which will shift the quartile boundaries. Following scrutiny by the audit commission, descrepancies have been discovered in the way that survey and performance data have been produced and recorded. We are now awaiting guidance from the audit commission following their audit and we intend to re-survey all crossing next year. Once complete and when further quartile information becomes available, targets for the ensuing three years will then be reassessed.

Whilst the average number of days to repair a street lighting fault (215a) was improved to 8.12 days, the performance with regard to (215b) repairs under the control of the District Network Operator (United Utilities) has fallen considerably to 85.2 days. Although United Utilities connection times have improved significantly, focus has now shifted to repairs. The increase was largely due to the repair of 4 longstanding faults (up to 500 days each), which has distorted the performance figures. Ongoing average repair times are currently circa 40 days. However, improvements are now being driven by the Street Lighting team manager Jonathan Hartley, who chairs a Greater Manchester wide Steering Group to address performance in respect of this measure. Jonathan’s input into the Steering Group, and improvements in the relationship with United Utilities, will improve these figures significantly in the long term.

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IMPACT - HIGHWAYS




9,849 Highways Services Managed by Impact 9,994 10,227 10,527



775 Employees and related expenses 611 620 630 666 Premises related expenses 685 701 716

9 Transport related expenses 9 9 9 7,033 Supplies and services 7,344 7,501 7,743

248 Agency and contracted services 252 255 259 2,294 Central departmental and support services 2,293 2,367 2,423 1,723 Capital financing 1,723 1,723 1,724


Income



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Documents

Business Partnerships - Rochdale Borough Council - · PDF fileThe Business Partnerships Service was established in April 2006. ... 917 778 813 236 32 23 ... • Closer co-operation