Agenda Item No. 5
THE VALE OF GLAMORGAN COUNCIL
HEALTHY LIVING AND SOCIAL CARE SCRUTINY COMMITTEE: 13 MARCH 2017
REFERENCE FROM CABINET: 20 FEBRUARY 2017
C3481 RESHAPING SERVICES: NEW BUSINESS MODEL FOR VISIBLE SERVICES AND TRANSPORT (VLRS AND BSHT) (SCRUTINY COMMITTEES – HEALTHY LIVING AND SOCIAL CARE & ENVIRONMENT AND REGENERATION) -
Cabinet was presented with a new business model for the Visible Services and Transport Division.
Cabinet approved the Reshaping Services Strategy in November 2014. The aim of the Strategy was to reshape the Council to enable it to meet the future needs of citizens of the Vale of Glamorgan within the context of unprecedented financial challenges. Within the context of Visible Services and Transport, reshaping savings of £300k were required during the 2016/17 financial year, £525k in 2017/18 and £1.375m in 2018/19.
A review, led by the Director of Environment and Housing and the Head of Visible Services and Transport, sought to develop a new target operating model for service delivery that would enable the protection of services within the budget available, wherever possible. The process considered the opportunities, key risks and high level financial benefits to be achieved by each model, in addition to a series of service strategies and a recommended way forward for the Council. A copy of the executive summary of the Alternative Service Delivery Review report prepared by ‘People Too’ was attached at Appendix B to the report.
On consideration of the options appraisal, it was determined that the preferred operating model for the service would be based upon an internal transformation model, with a focus on the following:
- Internal operational change and improvements;
- Opportunity to utilise spare capacity created via the operational changes above in parallel to a reduction in agency and overtime spend;
- Consideration of collaboration with other public sector organisations to create economies of scale; and
- Development of trading opportunities but also consideration of the increase in capacity required and the costs, benefits and risk of doing so.
The proposed target operating model had been designed by the Visible Services and Transport project team and challenged and developed by the Director and Head of Service. In addition, a set of risks related to the design and adoption of the new model had been considered by the project team at a workshop facilitated by a risk specialist from the Council’s Insurers.
A business plan to support the development and implementation of the new target operating model for the future delivery of these services was attached at Appendix C to the report. The target operating model set out how the Service would operate in the future, included an overview of the required process, service and employment structural changes necessary to deliver the project. The business plan outlined the implications, benefits and risks associated with delivering the target operating model.
The proposed model comprised four distinct areas:
- A “Neighbourhood Services” group would be created to enable a range of frontline services to be delivered by a multifunctional team supported by a single flexible and resilient management team. The group would consist of two neighbourhood groups: Operations and Healthy Living and Performance, each managed by an Operational Manager.
- A single “Engineering” group led by an Operational Manager which would provide traditional professional engineering services, including management of traffic and road safety, structures, drainage, flood risk and coastal engineering management. The Engineering functions were seen as possibilities for future collaboration as the national reform of local government proposals became clearer.
- A Passenger Transport and Policy team and a fleet management team would be developed through the creation of a formal Integrated Transport Unit. The Passenger Transport and Policy functions were seen as possibilities for future collaboration as the national reform of local government proposals become clearer. For the Fleet service, the opportunity for future income generation was also considered to offer significant potential.
- The final element of the proposed operating model was to create a freestanding Construction and Development group offering the opportunity for the Service to generate increased income through designing and constructing schemes for clients in addition to the traditional Highways construction works.
Further, the service delivery units were provided support by a Directorate Support team, led by a Business Support Manager, who reported directly to the Director of Environment and Housing Services. Activities required of the team would include reception and customer services support to the business receptions, in addition to performance management, business development and administrative support to the business units.
It was proposed that the model described above would deliver a total annual budget saving of £900k (with part year savings being delivered in 2017/18 and the remainder in 2018/19). An equality impact assessment was being undertaken in relation to the proposals. At this stage the report anticipated that there would be no adverse impact on protected groups. Once embedded and reviewed, a further phase of work would be undertaken in order to achieve the financial savings required in future years.
This was a matter for Executive decision
Cabinet, having considered the report and all the issues and implications contained therein
(1) T H A T the proposals for changes to the Visible and Transport Division, as outlined in the report be endorsed and referred to Scrutiny Committee (Environment and Regeneration) and Scrutiny Committee (Healthy Living and Social Care) for their consideration.
(2) T H A T subject to resolution one above, the proposed business model and implementation plan as described in the report be approved.
(3) T H A T subject to resolutions one and two above, Delegates Authority be granted to the Director of Environment & Housing, in consultation with the Leader and Cabinet Members for Visible, Leisure and Regulatory Services, and Building Services, Highways and Transportation to:
- Undertake the necessary consultation and engagement activity as described in the report, and
- Respond as appropriate to such engagement and consultation, and
- Report back to Cabinet any changes to the proposals resulting from the consultation process, and
- Progress the implementation of proposals following the conclusion of all necessary consultation and engagement activity.
(4) T H A T a future report be presented in due course outlining the proposals for further savings and any significant changes to the proposals contained in the Reshaping Services Business Model for Visible Services and Transport.
Reasons for decisions
(1-2) To enable the proposals for changes to the delivery model for Visible Services and Transport to be progressed following consideration by Cabinet and the relevant Scrutiny Committees.
(3) To ensure that the process for progressing the changes, as outlined in the report was undertaken as efficiently and effectively as possible in accordance with the Council’s policies and procedures.
(4) To ensure Cabinet received details of the proposals for further savings.
Attached as Appendix – Report to Cabinet – 20 FEBRUARY 2017