PAPER B

ENVIRONMENT AND TRANSPORT SELECT COMMITTEE – 17 DECEMBER 2004

QUARTERLY PERFORMANCE MANAGEMENT REPORT – QUARTER 2 2004-05

REPORT OF THE PORTFOLIO HOLDERS FOR ENVIRONMENT AND TRANSPORT

REASON FOR SELECT COMMITTEE CONSIDERATION

This Quarterly Performance Management Report is for the period 1^st July to the 30^th September 2004 and is for the Environment and Transport Portfolios. This second report for 2004-05 was presented to the Council’s Executive on the 17^th November 2004.

ACTION REQUIRED BY THE SELECT COMMITTEE

1. To receive the Quarterly Performance Management Report and appendix insofar as it relates to the Environment and Transport Portfolio Holders responsibilities

2. Determine whether further information is required from the Portfolio Holder on the Transport Areas to Watch identified in paragraph 5 of this report

3. Determine whether further information is required from the Portfolio Holder on the Environment performance indicator – number 7 (page 9 of the QPMR) that is currently not meeting its quarterly target

4. To determine if any further report is required from both Portfolio Holders relating to the finance issues that are highlighted in paragraph 5 of this report

BACKGROUND

1. This Report for quarter 2 summarises performance for the responsibilities under the Portfolio Holders for Environment and Transport for the quarter ended 30^th September 2004. The report format has been revised and now includes a risk assessment for the new and existing Areas to Watch highlighted in the report; and a revised basket of key performance indicators, with quarterly target profiles. The basket of key performance indicators has been modified with the inclusion of three new local indicators for the Portfolio Sustainable Development, Environment and Planning Policy, these include:

· Building Control Inspection notices within statutory time limits

· Renewable energy sources introduced as part of the Council’s direct involvement

· Energy consumption and tonnes of C02 produced from running the Council buildings (this is an annual performance indicator)

2. The proposed action plan for the long-term Area to Watch – Highways bridge inspections is attached as Appendix 2. The Head of Service has had discussions with the Corporate Policy Team the previous quarterly comments and the actions have been reviewed and an Action Plan produced to enable future development and progress and reduce the risks to the Council.

3. Feedback from the previous Environment and Transport Select Committee when the Performance Management Report for quarter 1 2004-05 was discussed has been taken on board including:

· Coastal Management performance information is being considered for inclusion in the next quarterly report, quarter 3

· The QPMR does include the previous years data, which is expressed as a year end total

· A performance indicator for traffic congestion is currently not available for reporting on a quarterly basis

4. Significant progress has been made on the targets and activities within the Portfolio Holders responsibilities including:

· The Isle of Wight Council’s Highway Service has received an award (All-Party Parliamentary Cycling Group) for being one of the most improved authorities at implementing measures to increase cycling (page 2 – QPMR)

· The successful completion of the Castlehaven Coastal Defence Scheme (page 2 – QPMR)

· The Island’s waste contractor has exceeded the quarterly targets for missed domestic waste collections and the percentage of household waste recovered and not sent to landfill (page 5)

· All four Transport Performance Indicators have achieved or exceeded their quarterly targets (page 3-4 – QPMR)

· Three of the four Environment Indicators are also achieving their quarterly targets (page 5-6 – QPMR)

· The Transport PSA Target 10 (page 4 – QPMR) continues to demonstrate improving quarterly performance and the quarterly target has been met

5. However, there are concerns on the following:

Areas to watch:

· Insufficient Highway Maintenance budget has been identified as an Area to Watch and has been risk assessed at 16, the highest risk score (page 3 – QPMR) This has been highlighted for the last four quarterly performance management reports.

· Completion of bridge inspections has been identified as an Area to Watch and has been reported in all five previous Quarterly Performance Management Reports for 2003-04 and quarter 1 2004-05 (page 3 - QPMR). Appendix 2, should also be read in conjunction with this update.

Performance Indicators:

· Performance Indicator 7 (page 6 – QPMR) – Standard Cleanliness of public toilets, for the second quarter in a row, more defaults were issued to the contractor over the quarter than had been expected, 28 defaults issued expected to issue 12.

Finance:

· Potential overspend of £250k is to be addressed as in previous years by recharging appropriate structural maintenance to capital. However, this option is also being drawn upon for other pressure areas - bridge inspections and Ryde Interchange preliminary costs (page 9 – QPMR)

· Income recovery to date is approximately £60,000 short of target for time of year (page 9 – QPMR)

· Ventnor Haven income likely to fall short of expenditure needs - £40,000 (page 9 – QPMR)

RELEVANT PLANS, POLICIES, STRATEGIES AND PERFORMANCE INDICATORS

Quarterly Performance Management Report Quarter 1 – 2004-05

Quarterly Performance Management Report Quarters 1-4 – 2003-04

CONSULTATION PROCESS

Heads of Service and their staff have supplied the information within the Quarterly Performance Management Report, with Directors being fully consulted on the content.

External consultation has not been necessary for this report as it is concerned with internal financial and management arrangements.

FINANCIAL, LEGAL, CRIME AND DISORDER IMPLICATIONS

The report itself does not have any financial implications. However, if Members recommend decisions regarding services identified in this report, these may have financial implications.

It is a requirement of the Local Government Act 1999 to deliver best value in service delivery of which an effective performance management system is a significant part.

APPENDICES ATTACHED

Appendix 1 Quarterly Performance Management Report Quarter 2 – 2004-05

Appendix 2 Long-term Area to Watch Action Plan – Highways bridge inspections

BACKGROUND PAPERS USED IN THE PREPARATION OF THIS REPORT

Quarterly Performance Management Reports 1, 2, 3 and 4 (2003-04)

Annual Action Statement 2004-05

Contact Point : Heidi Marshall, Principal Policy Officer, 823250 [email protected]

COUNCILLOR TERRY BUTCHERS – Portfolio Holder for Sustainable Development

COUNCILLOR ERNIE FOX – Portfolio Holder for Transport

APPENDIX 1

Quarterly Performance Management Report 2004-05

Select Committee Report – Environment & Transport

Quarter 2 Report: July - September 2004

Contents

Section 1 : Summary

1.1 Performance Summary:

· Performance Indicators – KPI’s & PSA Targets Page 2.

1.2 Priority Improvement Areas Page 2.

1.3 Best Value Reviews Page 2.

Section 2 : Performance Management & Assessment – By Portfolio

Including information on the following areas

· Key Achievements for the Quarter

· Areas to Watch and action to be taken this quarter

· Performance Management information on: – Key Performance Indicators & PSA targets

2.1 Transport Page 3-4.

2.2 Sustainable Development, Environment & Planning Policy. Page 5-6.

Section 3 : Finance Report Page 7-9.

3.1 Executive Revenue

3.2 Capital Report

Section 4 : Appendices

Long-term Area to Watch – Highways bridge inspections

Section 1 : Summary – Quarterly Performance Management Report 2004-05 Quarter 2 (July-September)

1.1 Performance Summary :– Performance Indicators

Performance Indicators by Portfolio – QUARTERLY ACHIEVEMENT OF TARGETS

PORTFOLIO	No. of Indicators	Target Achieved ì	WITHIN 5% TARGET è	Target Not Achieved î	Information Not Provided
TRANSPORT	4	4 = (100%)	0	0	0
ENVIRONMENT (SUSTAINABLE DEVELOPMENT, ENVIRONMENT & PLANNING POLICY)	7 (14)	5 = (71%)	0	1 = (14.5%)	1 = (14.5%) no target

PSA Targets by Portfolio – QUARTERLY ACHIEVEMENT OF TARGETS

PORTFOLIO	PSA Targets	Target Achieved ì	WITHIN 5% TARGET è	Target Not Achieved î	Information Not Provided
TRANSPORT	1	1 = (100%)	0	0	0

1.2 Priority Improvement Areas

· Engineering Services – Highways - The PIA meeting held in September highlighted Service areas where a significant increase in budget is fundamental to secure improvements in service delivery. Areas of performance around road and traffic accidents will be investigated further with support from the Corporate Policy Unit. The PFI is being progressed with “Expression of Interest” about to be sent to Government outlining our initial business case, Council wide support will be necessary for it to be achieved and successful. A shortfall in the highway inspection regime is being remedied by reorganisation and employment of an additional member of staff.

1.3 Best Value Reviews

· Transport - The project team has staff from Transport, Planning and the RCC, as well as the Review Unit. A project plan has been developed, and a wide range of partner organisations involved, including the LSP, the QTP, and various user groups. Consultation is also being carried out with Island Voices, Town and Parish Councils, and Community Forums. A draft shared vision for Transport on the Island is being developed, and with the help of various Community Transport organisations a start has been made on some practical proposals to improve Public Transport.

SECTION 2 : PERFORMANCE MANAGEMENT & ASSESSMENT – BY PORTFOLIO

2.5 PORTFOLIO: Transport

CORPORATE OBJECTIVE: Improving public transport & the highways infrastructure

Key Achievements Quarter 2 – 2004-05

All-Party Parliamentary Cycling Group award (2004) for one of the most improved highway authorities in England at implementing measures to increase cycling.

Successful visit to the Island by Junior Transport Minister

All performance indicators for Transport & Highways (5 indicators) have achieved quarterly targets

Areas to watch – previous quarters 2003-04
Quarter Reported	Area to Watch	Action to be taken from the last quarter	Risk Assessment
Q2/Q3/Q4 2003-04 Q1/Q2 2004-05	Insufficient highway maintenance revenue budget. Particular concerns regarding repairs due to summer clay shrinkage	Private Finance Initiative progressing with ”Expression of Interest” about to be sent to Government for decision	Risk Score = 16 Impact 4 Likelihood 4
Q3/Q4 2003-04 Q1/Q2 2004-05	Under achievements on highway inspections.	Inspection regime is being reorganised and a second attempt is being made to recruit an additional Inspector.	Risk Score = 9 Impact 3 Likelihood 3

PERFORMANCE MANAGEMENT INFORMATION – KEY PERFORMANCE INDICATORS

Please note that the figures in brackets are the quarterly target profile figures for each of the Indicators

Corporate Priority (Corporate Plan 2002-05)	KPI Description	Q1 - 2004 Apr- June (profile)	Q2 - 2004 July-Sept (profile)	Q3 - 2004 Oct-Dec (profile)	Q4 - 2005 Jan-Mar (profile)	Target 2004-05	Comments
		Performance Assessment Actual Against Profile			ìèî	Actual 2003-04
Maintaining the highways infrastructure	1. Percentage of incidents of reported dangerous damage to roads & pavements this quarter made safe within 24 hours (Local Indicator)	100%	100%			100%	The target has continued to be met and achieved
		(100%)	(100%)	(100%)	(100%)
		ì	ì			100%
	2. Number of casualties resulting from road traffic accidents on Island roads (one quarter in arrears). (BVPI 99 – CPA)	138	149			645	Between April and June 2004 there were 149 casualties resulting from road traffic accidents on Island roads, 6 below profile. We are currently on target for year end.
		(136)	(155)	(186)	(168)
		è	ì			689
	3. Safety and the condition of the highway network. Measured by the reduction in insurance claims against the authority. 2% reduction of claims received compared with the same quarters in 2003-04 (Local Indicator)	2.5%	2727.8%.8			2%	The numbers of insurance claims for quarter 2 were significantly less than for the same period last year. The situation will be monitored by the Highways team.
		(2.0%)	(2.0%)	(2.0%)	(2.0%)
		ì	ì			NA
Promoting public transport	4. Passenger journeys on Local bus services (data 1 quarter in arrears) (BVPI 102)	1.2 m	1.5 m			5.7 million	Between April and June 2004 1,452,875 passenger journeys were made on Southern Vectis buses. We are currently on target for year end.
		(1.2 m)	(1.4 m)	(1.8 m)	(1.3 m)
		ì	ì			5.605 million

PERFORMANCE MANAGEMENT INFORMATION – LOCAL PUBLIC SERVICE AGREEMENT TARGETS

Please note that the figures in brackets are the quarterly target profile figures for each of the Indicators

Corporate Objective	PSA Target & Summary	Q1 - 2004 Apr- June	Q2 - 2004 July-Sept	Q3 - 2004 Oct-Dec	Q4 - 2005 Jan-Mar	Target 2004-05	Comments
		(profile)	(profile)	(profile)	(profile)	Actual 2003-04
Transport	8. Transport Increase the number of cycling trips	60,587	63,679			182,699	We are slightly below target on school cycling (183/225) but it is hoped that the newly established children's bike club will address this particular shortfall. The Cycling Promotion Officer continues to work closely with schools and employers and generally to raise the profile of cycling. This has resulted in an increased English Regional Cycling Development Team –ERCDT score and an All Party Cycling Group, House of Commons National award for "most improved cycling Local Authority".
		(58,806)	(60,438)	(25,924)	(37,531)
		ì	ì			189,192

2.2 PORTFOLIO : SUSTAINABLE DEVELOPMENT, ENVIRONMENT & PLANNING POLICY

Corporate Objective : Protecting the Island’s physical environment

Key Achievements Quarter 2 – 2004-05

Completion of report into the formation of an Isle of Wight Low Carbon Company (IWLCC)

Successful completion of Castlehaven Coastal Defence Scheme

Inclusion of Operational Manager (Maintenance) in Peer Review of Waste Management in Welsh Authorities

Commencement of the West Wight Landscape Partnership Project

Environment waste collection service has continued to achieve improving performance in the percentage of household waste recovered and not sent to landfill and the number of missed waste collections remains well below the quarterly target

Areas to watch – 2004-05
Quarter Reported	Area to Watch	Action to be taken this quarter	Risk Assessment
NEW Q2 2004-05	Poor performance from Toilet Cleansing Contractor.	New contractor from November 2004 and the performance will continue to be closely monitored	Risk Score = 6 Impact 2 Likelihood 3
NEW Q2 2004-05	Establishment of the Isle of Wight Low Carbon Company	Seed funding is required to establish the company. The structure of the company is yet to be determined and an Executive report is to be taken on this issue	Risk Score = 6 Impact 2 Likelihood 3

PERFORMANCE MANAGEMENT INFORMATION – KEY PERFORMANCE INDICATORS

Please note that the figures in brackets are the quarterly target profile figures for each of the Indicators

Corporate Priority (Corporate Plan 2002-05)	KPI Description	Q1 - 2004 Apr- June (Profile)	Q2 - 2004 July-Sept (Profile)	Q3 - 2004 Oct-Dec (Profile)	Q4 - 2005 Jan-Mar (Profile)	Target 2004-05	Comments
		Performance Assessment Actual Against Profile			ìèî	Actual 2003-04
Promoting sustainable service delivery	1. Number of businesses enrolled on Island Green Awards Scheme (Local Indicator)	5	2			25	The Summer season is a difficult time to undertake development work and this is reflected in the quarterly target. Currently there are 64 businesses enrolled onto the programme
		(5)	(0)	(5)	(15)
		ì	ì			36
Making best use of natural resources & cutting waste generation	5. Percentage of household waste recovered & not sent to landfill (includes recycled waste, waste composted & waste used for energy recovery) (BVPI 82/CPA)	54.04%	54.19%			52%	The quarterly target has been achieved
		(54.0%)	(54.0%)	(50.0%)	(50.0%)
		ì	ì			50.1%
	6. Number of missed waste collections from domestic customers. Target is 72 missed collections per week averaged out over each quarter (Local Indicator)	35	36			72	Target on track. Excellent performance by contractor.
		(72)	(72)	(72)	(72)
		ì	ì			NA
	7. Standard of cleanliness in public toilets. No more than 12 defaults issued to the contractor per quarter (Local Indicator)	23	28			12	New contractor takes over in November 2004.
		(12)	(12)	(12)	(12)
		î	î			NA
Protecting the natural, built, & historic environment	8. Percentage of Building Control Decisions notified within the statutory time limits – (Local Indicator)	93.3%	97%			95%	The quarterly target for this indicator has been achieved
		(95%)	(95%)	(95%)	(95%)
		è	ì			92%
	9. Renewable Energy Sources installed as a direct consequence of the Council’s actions measured in (Kilowatts)	0	13.8KW			13.8KW	Photovoltaic roof commissioned and installed at Medina High School September 2004. kW = a unit of power equal to 1000 watts
		0	(13.8KW)	(13.8KW)	(13.8KW)
			ì			0
	10. IWC energy consumption and resultant CO2 emissions from its buildings measured in KwH (Kilo Watt Hours) and tonnes CO2. Annual figures	16,049,815.8 kWh 4,649.21 tonnes per C02 (September 2004 figures)					The figures presented for this indicator are annual figures for all Council property excluding School facilities. This is the first year that the data has been collected and these stats for 2003-04 will act as a benchmark for future years.

SECTION 3 : FINANCE REPORT

3.1 : Revenue Budget Monitor by Portfolio – to the end of September 2004

(Please note that the Portfolio structure has not been updated to reflect the new staff structure)

Transport
Highways	Potential overspend of £250k is to be addressed as in previous years by recharging appropriate structural maintenance to capital. However, this option is also being drawn upon for other pressure areas - bridge inspections and Ryde Interchange preliminary costs. Close monitoring will be required to ensure expenditure remains within budget.
Walking/Cycling	Budget on target to date.
Public Transport	Budget on target to date.
Cowes Floating Bridge	Budget on target to date.
Transport Fleet	Budget on target to date.
Car Parking	Income expectations have been increased to accommodate additional subsidised bus routes and the Concessionary fares shortfall. Income recovery to date is approximately £60,000 short of target for time of year.
Sustainable Development, Environment and Planning Policy
Environmental Initiatives including Local Agenda 21		Government Grant allocated for a Renewable Energy Feasibility Study of £40,750 yet to be fully spent. Green Island expenditure to be offset by Leader Plus grant awarded quarterly in arrears
Building Control		Building control budget on target to date.
Coastal Management		Ventnor Haven income likely to fall short of expenditure needs - £40,000.
Harbours and Seafronts		Budget on target to date
Engineering Contracts		Budget on target to date.
Waste Management		Budget on target to date.

3.2 : Revenue Expenditure Budget Monitor by Portfolio – to the end of September 2004

Original Spend To Left

Budget Date

8A Education and Community Development £78,526,826 £29,784,648 £48,742,178

8B Social Services and Housing £40,859,472 £22,385,110 £18,474,362

8C Fire, Emergency Planning & Consumer Protection £10,259,836 £4,240,263 £6,019,573

8D Tourism and Leisure £5,246,231 £1,275,633 £3,970,598

8E Economic Development £296,044 £200,838 £95,206

8F Transport £8,151,100 £1,113,487 £7,037,613

8I Sustainable Development, Environment, Planning £12,013,300 £2,484,902 £9,528,398

8Z Resources £6,705,959 £5,325,143 £1,380,816

£162,058,768 £66,810,025 £95,248,743

Notes

1) Financial Information System currently being updated to take account of recent restructuring

2) Budgets revised from original to take account of carry forwards from previous year, additional grants etc

3) Spend to date represents 41.2% of approved budget and includes expenditure incurred to 30 September 2004, but excludes commitments

4) Spend to date excludes capital financing charges, support service charges and other adjustments and recharges

5) Spend to date on the Resources Portfolio service areas includes gross expenditure on support services prior to recharges being made

6) Total figures may not add up exactly due to rounding

Capital Expenditure Budget Monitor by Portfolio – to the end of September 2004

Revised Spend To Left

Budget Date

8A Education and Community Development £11,126,213 £3,961,728 £7,164,485

8B Social Services and Housing £5,028,637 £1,224,363 £3,804,274

8C Fire, Emergency Planning & Consumer Protection £290,702 £49,841 £240,861

8D Tourism and Leisure £25,426 £0 £25,426

8F Transport £8,116,080 £1,960,332 £6,155,748

8I Sustainable Development, Environment, Planning £3,360,943 £2,162,729 £1,198,214

8Z Resources £1,118,222 £520,423 £597,799

£29,066,223 £9,879,417 £19,186,806

Notes

1) Financial Information System currently being updated to take account of recent restructuring

2) Spend to date represents 34.0% of approved budget and includes expenditure incurred to 30 September 2004, but excludes commitments

3) Total figures may not add up exactly due to rounding

APPENDIX 2

QUARTERLY PERFORMANCE MANAGEMENT REPORT

LONG-TERM AREAS TO WATCH

1. This Appendix investigates the particular Areas to Watch that was reported in all four quarters of 2003-04 and remains an issue for the service. Discussions have taken place between the Corporate Policy Team and the relevant Head of Service. The issues have now been reviewed and the actions that have been previously implemented evaluated and examined and a proposed Action Plan developed to address the problems and manage the potential risks to the Council.

2. The long-term Areas to watch that have been reported in all four quarters of 2003-04 is the following:

· Transport – Completion bridge safety inspections

OPTIONS

3. Option 1 -That this report and the attached Action Plan be received and approved by the Executive, subject to any comments or changes made by the Executive

Option 2 – To agree the action plan that has been developed and attached to this report subject to any comments or changes made by the Executive

Option 3 – To request the relevant Select Committees to investigate any areas of concern the Executive may have from the report and to monitor the progress of the Action Plans attached

TRANSPORT – COMPLETION OF BRIDGE INSPECTIONS

QUARTERLY REPORTING – AREAS TO WATCH

AREA TO WATCH	ACTION TO BE TAKEN
Q1 – 2003-04 Completion of bridge inspections within the prescribed time scale.	Consideration should be given to a revenue budget increase so additional resources can be employed.
Q2 – 2003-04	Still some concerns
Q3 – 2003-04	No increase in budget within the present financial year so concerns remain.
Q4 – 2003-04	Bridge and other highway structure inspections not completed. A Resource Bid of £259,000 was made for 2004/05, £255,000 for 2005/06 and £245,000 for 2006/07 but this was not approved. Therefore mandatory inspection timetable will not again be met in 2004/05 financial year.
Q1 – 2004-05	No increase in revenue budget – capitalisation from highway maintenance only way of addressing problem in this financial year.
Q2 – 2004-05	Consideration should be given to a revenue budget increase so additional resources can be employed. No increase in revenue budget – capitalisation from highway maintenance only way of addressing problem in this financial year.

• Insufficient resources within the Revenue Budget to enable the Bridge Safety Inspections to be undertaken. Inspections require the use of specialist trained surveys/engineers to complete the review of all Island bridges, tunnels and culverts. These are inspections that are related to safety issues, if the inspections do not take place then the risk to the Authority is increased

• Revenue Budget bids have been made in previous years to enable the inspections to take place. The Revenue budget is and has been in the past stretched so much that there is no capacity to undertake this essential part of the work programme

• The Service requires additional resources to facilitate the completion of the inspection programme and avoid the capitalisation that has taken place in the first quarter of 2004-05

ACTION PLAN

PROPOSED ACTION	DATE EXPECTED	OUTCOME
Additional Revenue bids have been made to undertake the inspection programme	Bid rejected in 2004-05 – Additional bid submitted for 2005-06	Inspections occur
Review the capacity and skills within the Engineering Service to undertake work	January 2005	Internal work review
If the budget bid is refused then the Service will need to consider capitalisation of the highway maintenance budget to acquire resources	To be considered if the new budget bid is unsuccessful