Agenda Item No

The Vale of Glamorgan Council

Scrutiny Committee (Housing and Public Protection): 16th October, 2008

Report of the Director of Environmental and Economic Regeneration

Review of In-House Stores and Support Function

Purpose of the Report

1.             To apprise Members of the Housing and Public Protection Scrutiny Committee on progress in respect of the TRIBAL Action Plan Task (R40) BMDSOR5 - Review In-house Stores and Support Function.

Recommendations

1.             That progress to date is noted and the future actions as detailed in this report are endorsed by the Housing and Public Protection Scrutiny Committee.

Reasons for the Recommendations

1.             To identify progress to date and obtain Members approval for the further development of the Stores services to Building Services.

Background

2.             The Council operates a centralised Stores facility at the Alps Depot that is used by a number of the Council's departments including Building Services.  A review by TRIBAL Consultants of the Building Maintenance Direct Services Organisation (DSO) was submitted in January 2006 included a section on materials and Stores.

3.             This report concluded that any Stores function should ensure that minimal capital is invested in materials whilst still maintaining an effective Stores service.  Furthermore regular dialogue was required between the DSO and the Stores so that issues of concern could be addressed.

4.             It was also identified that the Stores operated a computerised bar code system that enabled an audit trail, the triggering of re-order levels and ensure all materials received were to a relevant job number.

5.             It was noted that the 2004/2005 overhead costs of the Stores function was 15.2% whereas the Audit Commission upper limit benchmark was 15% of the value of Stores/materials issued.  This specific benchmark was indicative of value for money.

6.             To address these issues it was recommended that a cost benefit analysis of Stores be undertaken to identify that value for money is being achieved or that a viable alternative should be considered.  Other initiatives such as providing staff with a builders/credit card and vehicle stock was also suggested.  The review of the vehicle stock was to ensure that adequate and appropriate imprest stock was being held in order to increase the number of jobs completed at the first call.

Relevant Issues and Options

7.             A number of internal reviews and audits have been undertaken over the last six years, these have included:

·               Procurement Review in November 2002

·               Systems Audit (VFM study by Internal Audit) July 2003

·               Internal Audit in 2005

·               Fuel Audit in 2006

·               Internal Audit in 2008 (currently ongoing with final report pending)

·               Internal review groups considering builders/credit cards; local suppliers support network;

·               Imprest stock management and control and schedule of rates review.

8.             These audits have confirmed the service to be generally satisfactory and associated action plans have resulted in the following improvements:

·               The Stores Staff structure has been reviewed with resultant efficiency and financial savings.

·               A comprehensive procedures manual has been produced and ISO 90001:2000 accreditation was achieved in 2006.

·               The material stock list has been reviewed, rationalised and is continuously monitored.

·               Improved focus and co-operation regarding procurement has been implemented.

·               The fuel procurement and management procedures have been improved.

·               A customer complaints system has been adopted that promptly investigates any complaint with investigation outcomes confirmed.

9.             In addition there has been a significant improvement in benchmark performance in respect of the overhead cost of the stores function.  This has been reduced from 15.2% in 2004/2005 to 13.2% in 2007/2008, an overall improvement of 14% for this specific benchmark performance indicator.

10.        In line with these previous audits and reviews a number of improvements designed to complement the Building Maintenance Business Plan have been identified and agreed.  In order to monitor progress these improvements will be included in the action plan and performance indicators that are currently being developed.  The specific improvements relating to materials and Stores support include:

·               The introduction of controlled and managed imprest stock to vehicle including a cost effective replenishment system.

·               The identification and utilisation of a network of local suppliers for building maintenance procedures including credit card system, integration with mobile working, management and control, audit trails and probity checks etc.

·               Review of plant and equipment requirements considering provision of in-house arrangements to achieve cost reduction and increased value for money.

·               Review of schedule of rates to capture accurate materials requirements for use in material delivery scheduling on just in time principles.

·               New performance indicator to assess performance of materials and Stores provision.

·               To continue to evaluate and review the option of outsourcing the Stores service should the planned improvements not provide the expected cost benefits and increased value.

Resource Implications (Financial and Employment)

11.        There are no current direct resource implications arising from this report.

Legal Implications (to Include Human Rights Implications)

12.        There are no current Legal Implications arising from this report.

Crime and Disorder Implications

13.        Many of the services specified in this report contribute significantly to the Crime and Disorder agenda.

Equal Opportunities Implications (to include Welsh Language issues)

14.        There are currently no Equal Opportunities arising from this report.

Corporate/Service Objectives

15.        The provision of a Building Maintenance service contributes to the Council's Corporate priority of "to make the Vale a safe, healthy and enjoyable place to live via good quality housing" and "to achieve a quality environment via reducing energy use and carbon emissions in public buildings and housing stock".  The service aim of Building Services is "to maintain safe, warm, dry and secure Council buildings and ensure that materials containing asbestos are assessed in public buildings".  The introduction of these measures also contributes to the corporate priority "to manage the Council's workforce, money and assets efficiently and effectively in order to maximise its ability to achieve its aims in a sustainable manner".

Policy Framework and Budget

16.        This report is consistent with the Policy Framework and Budget.

Consultation (including Ward Member Consultation)

17.        The appropriate officers have been consulted.  As this report refers to an operational issue Ward Member consultation was not required.

Relevant Scrutiny Committee

18.        Housing and Public Protection.

Background Papers

None.

Contact Officer

Steve Morris - Head of Building and Vehicle Services.

Officers Consulted

Operational Manager Strategy and Support

Operational Manager Building and Vehicle Services

Principal Support Officer

Responsible Officer:

Rob Quick - Director of Environmental and Economic Regeneration.