Item 8 - Shared Services Update
West Dunbartonshire Council · 26 April 2023
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WEST DUNBARTONSHIRE COUNCIL Report by: Chief Officer - Roads & Neighbourhood (Shared Service) Council: 26 April 2023 Subject: Shared Services Update 1. Purpose 1.1 This report seeks Council approval to note the recommendations set out in the Shared Services Evaluation Report and to make arrangements to dissolve the collaborative management model within Roads, Grounds, Fleet and Waste Services. In addition note that Internal Audit will continue in its current form with a Shared Manager pending a further report. 2. Recommendations 2.1 It is recommended that Elected Members: i) Notes the findings of the Evaluation of Shared Services; ii) Notes the Shared Services Joint Committee agreed the Shared Services Report on 18 April 2023; iii) Approves the proposed dissolution of shared services within Roads and Neighbourhood Services; iv) Approves the implementation date of 1 June 2023 in relation to the Roads and Neighbourhood Services management structure; v) Notes the proposed employee position set out in 4.2: and vi) Notes that a future report will be presented for consideration in relation to the future delivery options in relation to Internal Audit. 3. Background 3.1 Inverclyde and West Dunbartonshire approved the implementation of a collaborative management model in March 2018. The model consisted of shared management arrangements with a shared Chief Officer/Head of Service leading two distinct roads and transportation services. 3.2 A shared Head of Roads and Transportation commenced in January 2019 with responsibility to provide strategic and operational leadership for the delivery of roads and transportation services within both Inverclyde and West Dunbartonshire Councils. 3.3 The postholders responsibilities were expanded to include strategic and
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operational management of fleet, waste and grounds maintenance in West Dunbartonshire, commencing October 2019, with the role being further expanded from April 2020 to include fleet, waste and grounds maintenance in Inverclyde. 3.4 Further to the development of business cases and approvals a Shared Internal Audit Manager was appointed in January 2020. The postholder manages the delivery of Internal Audit within West Dunbartonshire and Inverclyde Councils. 3.5 In addition in March 2020 it was agreed to implement a shared Fleet and Waste Manager post. This provided opportunities to share best practice while delivering efficiencies across both councils through a reduction in a management post. 3.6 The Shared Waste and Fleet Manager commenced in April 2020 and works equally across the local authorities, the respective geography and manage Fleet and Waste teams employed by both councils. The remit responsibilities are as follows: The Fleet and Transport Service – procure, manage, maintain and arrange the end of life disposal of the Council’s vehicle fleet and manage and operate the transportation service for each Council; The Waste Service – manage the residual waste and recycling collections from households within each council area, in-house operations and registered commercial waste users. Also ensure that each Council is compliant with waste legislation being introduced. 3.7 Following an options appraisal carried out to determine how to address a management gap within Inverclyde Council’s Grounds Service an interim grounds collaborative management structure was implemented in January 2021. 3.8 The interim structure consists of the West Dunbartonshire’s Grounds Manager providing interim management and support to the Inverclyde Council’s Grounds and Burial Services teams. 3.9 Following monitoring of the shared management of the fleet, waste and grounds service and considering feedback received the management model was revised. The interim shared management model is now based on a locality resilience model to facilitate sharing of operational and strategic activities and provide resilience and opportunity to upskill. 3.10 An independent evaluation of Shared Services was jointly commissioned in October 2022 by West Dunbartonshire Council and Inverclyde Council to consider the future of the shared service model. The evaluation was
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carried out by MKA Economics, a copy of which is contained in Appendix 1. 3.11 The evaluation considered: How have the original objectives been achieved? What has worked, Successes? What hasn’t worked, challenges? The benefits of continuing? The benefits of discontinuing? 3.12 The evaluation highlights a number of strengths, as well as a number of weaknesses in relation to the current arrangement including: Strengths Weaknesses Allows continued platform for sharing ideas and best practice Build on good communication and best practice sharing to date Offers modest cost savings Potential loss of benefits/objectives due to capacity issues Lack of consistent systems (payroll, HR, legal) overseeing the Shared Service No further annual cost savings without new shared posts Challenging geographical locations The report concludes that the current model is unsustainable. 3.13 The evaluation report was presented to the Shared Services Joint Committee on 18 April 2023 for consideration. 4. Main Issues 4.1 Following consideration of the evaluation report Officer recommendation is to dissolve the roads, waste, fleet, and grounds areas of operation This will result in formal withdrawal from the Shared Service. 4.2 It is proposed that the shared Chief Officer/Head of Service will see their employment conclude with Inverclyde Council and will become a West Dunbartonshire employee at Chief Officer level. The shared Waste and Fleet Service Manager will conclude their employment with West Dunbartonshire Council and will become an Inverclyde Council employee reverting to the role of Service Manager Waste and Grounds. 4.3 A structural review will be undertaken considering the strategic
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outcomes and operational requirements of the service. Employee resources will have the capacity to fully focus on the delivery of West Dunbartonshire’s priorities 4.4 The proposals will ensure the Council continues to deliver best value and efficient services that are fit for the future. 4.5 The implementation date of the proposed management structure is 1 June 2023. 4.6 The Officer recommendation is to continue the current arrangement of a shared Internal Audit Manager between Inverclyde and West Dunbartonshire Councils pending the development of a business case setting out future delivery options. 4.7 Delivery of Internal Audit Services has a number of different considerations, given the nature of the services in question, and there are a number of examples in other Scottish local authorities where a shared management model arrangement is understood to work well. This further report will be presented to Council for consideration in the autumn. 4.8 The report will also set out an assessment of any impact on employees for consideration. 5. People Implications 5.1 Employees affected will be treated in line with the terms and conditions of their current employer until the commencement of their new position. Thereafter the new employing authority’s terms will apply and their positions will be funded by the resultant employing council. All affected employees have indicated a willingness to accept the alternative offers. 6. Financial Implications 6.1 Measures will be undertaken to ensure that the dissolution of the Shared Service – Roads and Neighbourhood does not place a financial burden on the revenue budget. 7. Risk Analysis 7.1 The Council has a duty to ensure best value and compliance with statutory and legislative obligations 8. Equalities Impact Assessment (EIA) 8.1 Screening has been undertaken and impact assessments are not required.
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9. Consultation 9.1 Consultation has been undertaken with the affected employees and trade unions. 10. Strategic Assessment 10.1 The report reflects the 2022 – 2027 Strategic Plan and in particular the following Strategic Priorities: Our Environment – A Greener Future Our Council – Inclusive and Adaptable Gail Macfarlane Chief Officer – Roads and Neighbourhood Services 18 April 2023 Person to Contact: Gail Macfarlane. gail.macfarlane@west-dunbarton.gov.uk Appendices: Review of Shared Services, An Independent Evaluation. Background Papers: 28 March 2018 Shared Services Implementation: Roads & Transportation Wards Affected: All