Resources Minutes 5-4-04

75. MINUTES

RESOLVED :

THAT the minutes of the meeting held on 1 March 2004 be confirmed.

76. DECLARATIONS OF INTEREST

There were no declarations at this stage.

77. BUDGET MONITORING AS AT END OF FEBRUARY 2004

The Chief Financial Officer reported on revenue and capital expenditure for services within the Select Committee’s remit as at the end of February 2004.

The previous problems associated with the Land Charges budget appeared to have improved and it was anticipated there would only be a minor overspend. Members asked what savings had been made with regard to Support Services Communications and when would it be utilised. The inflation provision had not been utilised and savings were to be used for additional media training sessions, developing a Corporate Newsletter and part funding a Communications post for Social Services. Members believed that the need for an additional communications post should be scrutinised. The need for a Corporate Newsletter was something that had been identified in the CPA but the Select Committee wanted an assurance that the Corporate Newsletter was not duplicating Wight Insight or the Team Brief and believed that the situation should be monitored. Members also questioned the policy on virement and were advised that the guidelines were set out in the financial regulations.

The Select Committee noted that Members’ travelling expenses were overspent and were reminded that training needs would be identified through Personal Development Plans currently being arranged with South East Employees.

Members were advised that a new site had been set up on the intranet whereby members could check variances on budgets. The Select Committee believed that if managers could make savings within their budgets a percentage of those savings could be kept with the rest going into the Corporate Pot. This was an area where a policy should be developed.

With regard to increased expenditure within premises development members were advised that insurance premiums for property had risen above expectations. Members asked if premiums had also risen for play areas and skateboard parks and were told that those areas came within Leisure Services, although Town and Parish Councils funded certain facilities.

RESOLVED :

(a) THAT the Council’s financial situation be noted.

(b) THAT the Chief Financial Officer be requested to consider how the Council deals with inflation growth and the financial policy in respect of virement, when undertaking the forthcoming review of the Financial Regulations.

78. ACCOMMODATION REVIEW PHASE 3; UNITS 4 AND 5 MARINERS WAY, SOMERTON

The Head of Property Services advised members that staff from Library HQ and Education Stores had now been relocated to units 4 and 5 Mariners Way, Somerton. The total cost of the works was £741,000. This would be offset against the sale of Forest Road, which was now under offer, and the former library HQ at Parkhurst. The flat above 8a Clarence Road, East Cowes was also to be sold for an estimated £50,000. Members asked why the original estimates for the properties had been so low, the Assets Manager indicated that he would look into the matter and advise the Select Committee of his findings.

The Asset Manager outlined the Accommodation Priority Progress Report. The work for Planning Services Reception had gone out to tender for design, but only one bid had been received. There was some debate with reference to the Customer Contact Centre; a pilot scheme was being set up in the Customer Services Centre at County Hall, Newport. Members believed that data received from the Pilot Scheme should drive the review on accommodation and the authority should be shaped around the customer and what was good for them.

RESOLVED :

(a) THAT the Select Committee note the start of the works to create a new Customer Contact Centre in County Hall and the situation be closely monitored.

(b) THAT the data collected in the Customer Contact Centre be used to help shape a more responsive property portfolio.

79. BEST VALUE REVIEW OF PROCUREMENT

The Compliance and Risk Manager advised members that the Council spent approximately £85m per year on procurement with a further £16m on capital projects. He went on to illustrate why Procurement was an important issue and quoted examples of where undertaking procurement properly or improving the Council’s procurement performance could make a significant impact. There was a potential for saving money and improving services with a need to take a more strategic review of purchasing and contracting.

The Compliance Manager stated that the Review’s Action Plan reflected two important external influences; the results of the IDeA Fitness Check conducted in 2003, and the emergence of the National Strategy for Local Authority Procurement issued by the ODPM. The external sources recommended that the Council adopted a strategic view of procurement. The Gateway Review process being recommended in the Action Plan was a way of identifying strategic procurement and applying risk assessment.

The Review also recognised that the Council needed to modernise its Contract procedures and its processes needed updating. The latter would be achieved by adopting an e-procurement solution of accepted.

The Review also acknowledged that the Council’s had a profound effect on the local economy, and that the effect of the Council’s needed to be carefully considered before implementation.

Members debated the partnering initiative and wanted an assurance that actions would be totally transparent and monitoring would be undertaken. KPIs would be used for the partner costs and making sure delivery came in on time. Open book accounting would also be used.

A Framework Agreement was in place for the pilot scheme, which was confined to the schools building programme. There were two contractors and two design consultants arranged into teams, initially with five projects each. If the partnering was unsatisfactory then the Council could revert to the traditional tendering process, but if it was successful then it could be rolled out to the rest of the Council.

Within the Action Plan members noted the need for a member champion and it was proposed and agreed that Councillor Patrick Joyce should take on that role.

There was some discussion in relation to business rates as it was noted that they had not risen the same as the council tax. Members believed the risk register should be amended if changes to Local Authority powers, which would allow them to set business rates, were made.

The Select Committee also believed that the Council should look for Beacon Status for procurement. Progress on the Action Plan should be reviewed and brought back to the Select Committee in six months.

RESOLVED TO RECOMMEND TO THE EXECUTIVE :

(a) THAT the Best Value Review of Procurement Improvement Action Plan be endorsed.

(b) THAT Councillor Patrick Joyce be appointed as the member procurement champion.

RESOLVED :

(a) THAT the Select Committee review the Action Plan in six months.

(b) THAT national changes to the Business Rates system be considered for inclusion in the Council’s Risk Register.

80. FORWARD PLAN – APRIL 2004 TO JULY 2004

Members were made aware of items that appeared in the Executive’s Forward Plan for April 2004 to July 2004 for matters relating to the Resources Select Committee.

RESOLVED :

THAT the report be noted.

CHAIRMAN