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Division(s): ALL

ITEM BV10

BEST VALUE COMMITTEE - 23 JUNE 2004

BEST VALUE REVIEW OF PROPERTY SERVICES - UPDATE

Report by Head of Property

Introduction

  1. On 10 December 2003 the Committee received a progress report on the service improvements arising from the Best Value Review of Property Services. The Committee adopted the Recommendations and requested a report back in six months (to include: current arrangements, costs etc of Facilities Management; issues around asset rent; progress with the Executive Review of Property Assets; action outstanding from the earlier Property Services Review; issues around dates for achievement).

    2. Progress on Service Improvements

  2. Full details of the four service improvements, objectives and targets were given in the report to the December 2003 meeting. The following is a brief update on progress for each of the service improvements.

    1. Service Improvement 1 - Redefine roles and responsibilities for Property within OCC's new structure.

      2. This service improvement has been completed. The Capital Programme and Asset Management Steering Group is operating under its revised Terms of Reference and is supported by a cross-Directorate Working Group.

      The roles and responsibilities of the Service Directorates and the Corporate Property Group in relation to property have been agreed and revised structures have been established for the Learning & Culture Planning and Development Team (formerly Premises Development Group) and the new Corporate Property Group. The internal selection process for appointment of staff to posts in the new structures has been completed. There are still several key posts which are vacant and are to be filled by external recruitment. The re-allocation of resources between the service directorates and the Corporate Property Group has been agreed.

      It is not feasible for the new Corporate Property Group to undertake its revised responsibilities until key posts have been filled and the date for full implementation of the restructuring has therefore been deferred until 1 October 2004.

    2. Service Improvement 2 - Improve programme, project and performance Management.

      3. All staff in the new Corporate Property Group will have a personal development plan and for most development in project management will be included. In some cases the grading of the post is dependent upon completion of a project management development programme and demonstration that the appropriate skills have been acquired. It is intended that for all staff involved in project management Prince 2 training to either Foundation or Practitioner level will be required. This will be supplemented by a programme of project and programme management training workshops which will be arranged to suit our particular needs. It may be possible to secure Association of Project Managers accreditation for staff who complete the development programme.

    3. Service Improvement 3 - Revise arrangements for external services to provide improved value for money, flexibility and non-exclusivity.

      4. Work is on programme to secure a new core contract for Property Consultancy Services from April 2005 supplemented by a number of framework contracts with other consultants. This will provide flexibility, comparability and competitiveness. The specifications are to be based on outcomes and outputs with performance targets and the amount of work placed with each consultant, and the fee levels based on performance.

      There has been a good response to the advertisements and a shortlist has been drawn up of organisations to be invited to submit outline proposals. A preferred consultant for the core contract should be appointed in November.

    4. Service Improvement 4 - To support and develop staff to ensure they have the skills and capacity to deliver a high quality service.

    For many staff it has been a difficult time with uncertainty about the future and the need for selection and appointment to new posts. Communication has been dealt with by regular Section Meetings and emails. All current staff have been appointed to new posts within the new structure with one exception where early retirement has been approved. Learning and development needs will be assessed as part of the appraisal process and as part of the induction process for new staff.

    Facilities Management

  3. There have been discussions with the Head of Procurement about the scope for a review of Facilities Management as part of the development of the Procurement Strategy. Subject to agreement on resources for the works it is proposed that there be a review as part of the programme of measures to secure efficiency savings. There will need to be a definition of 'facilities management' and an agreed scope and objective for the review.

    4. Asset Rents

  4. There needs to be a review of the accounting for property costs. Until recently there was no financial support for Property within the Corporate Finance team. There is now within the new Corporate Property Group a Financial Management Assistant and an appointment has recently been made to the post of Strategic Finance Manager for Resources. This will allow a review of financing and accounting for Property to be undertaken.

    5. Review of Assets

  5. There have been reports to the Executive and to the Corporate Governance Scrutiny Committee setting out the programme and progress on the Review of Assets. The Executive in January agreed the conclusions of a report which concluded that the best way to achieve the project's success criteria would be to reduce the number of offices and provide a network of office hubs, smaller satellite offices and touchdown facilities at a local level and to cluster services on fewer sites, where appropriate with the office hubs and satellites. More detailed work is now being done, with the intention that there will be seminars with members and officers in September to look in detail at options and opportunities in local areas. Further reports will be made to the Corporate Governance Scrutiny Committee in July and September and to the Executive in July and November.

    6. RECOMMENDATIONS

  6. The Committee is RECOMMENDED to:

          1. note progress on the service improvements arising from the Best Value Review of Property Services;

          2. agree that a review of Facilities Management should be undertaken as part of the review of efficiency savings and development of a Procurement Strategy;

          3. note that a review of financing and accounting for Property costs is to be undertaken which will consider options for accounting for property treated as a Corporate resource; and

          4. ask the Chair of the Corporate Governance Scrutiny Committee to consult the Deputy Chair on scrutiny committee consideration.

NEIL MONAGHAN
Head of Property

Background Papers: Nil

Contact Officer: N. Monaghan, Head of Property Services Tel: (01865) 815712

June 2004

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