Agenda item

Purpose of the report: To provide an update on developments within the Orbis partnership with East Sussex County Council and provide an overview of delivery against the 3 year business plan.

Witnesses:

John Stebbings, Chief Property Officer

Denise Le Gal, Cabinet Member for Business Services and Resident Experience.

Key points raised during the discussion:

1.    The Chief Property Officer began by explaining that it had been a challenging but productive year, with the integration of back office functions across Surrey and East Sussex County Councils.  The Board were advised that Orbis were looking to bring together shared services through market developments with other local authority organisations such as LGSS and OneSource.  This was a different approach, however the size of the organisation had enabled this as an option.

2.    The Chief Property Officer explained that whilst Brighton and Hove City Council (BHCC) were proposed to be joining Orbis, their eventual integration into the organisation would not affect  service provision and the benefits for the existing partners.   As part of their discussions with BHCC, Orbis reiterated that the level of efficiency that had already been agreed needed to be delivered as it formed part of each organisations Medium Term Financial Plan (MTFP).  This was therefore classed as a non-negotiable element for both Orbis and BHCC.  Efficiencies and services would continue to be delivered as business as usual, with a small programme team responsible for integration delivery and review.  Furthermore, it was confirmed that during its own due-diligence process, BHCC data would be inspected by the Orbis Joint Committee to assure its quality in order to minimise risk.

3.    The officer stated that the Inter-Authority Agreement (IAA) framework would be reviewed prior to BHCC formally joining, taking into account lessons learned around services and engagement throughout the experience.

4.    The Board were advised that Orbis had no additional partners currently lined up.  The officer stated that Orbis would consider future partnerships on a case by case basis, however the organisation was also mindful of its capacity.

5.    The Board enquired as to the cost to the organisation of using Ernst & Young (EY) as its transformation partner, and whether the cost cancelled out the saving efficiencies being delivered through reducing the staff headcount.  It was explained that the cost of the consultancy was minimal, c£300k, as the contract was not a traditional tariff based consultancy arrangement.  Orbis would deliver £8.3m efficiencies by the end of the third year as a result of £7m in investment and the cost of the EY contract was included in the original business plan.

6.    The officer explained that Orbis was looking to obtain mutually benefiting value from the EY partnership, with proposals being developed to allow for staff to be seconded into their organisation and vice-versa.  It was also explained that EY partners were invited to the Orbis Joint Committee meetings at a cost to them, as they acknowledged that their attendance would help them to gain oversight and understanding that would be of benefit when they went on to consult with other clients.

7.    The Board acknowledged that the Intellectual Property Rights within the Orbis structure were of real value to the organisation and that the intention was to generate income from EY should they use information related to the Orbis programme.

8.    The Board recognised that Project MARS was a sound investment, improving customer experience whilst delivering efficiencies.  The officer stated there had been a recent change in trend, where online system bookings were proving more popular than telephone bookings, providing resident access to the service 24 hours a day.

9.    The Board sought reassurance that despite the ever-changing public sector environment, Orbis would remain focused on delivering services to improve resident experience.  The officer explained that Orbis were involved in the Surrey Heartlands Sustainability and Transformation Plan from a properties perspective, and that they would continue to operate business as usual as well as being open to potential new business opportunities.

10.  The Board enquired as to whether customer feedback had been sought with regard to the services provided by Orbis.  The officer indicated that feedback was important in order to evaluate service delivery and that it was welcomed through formal and informal channels.

Further information to be provided:

1. Details on the status of the MARS project

2. Officers to provide clarity on the year-on-year savings after investment and the cumulative savings to the Council after three years based on the table on page 26 and the additional savings to be delivered by the Orbis partnership to the Council.

These figures should show:

·         what numbers are gross and what are net;

·         net of what in each case; and

·         what costs have not been netted out where this is the case

3. How and where investment is made and whether this is capitalized

4. The impact on salaries where there have been staff reductions leading to increased responsibilities for remaining officers

5. Clarity on the savings expected by IT services. The current savings are rated ‘green’ but fall significantly short of the year end expectation.

6. What savings do Procurement hope to deliver to the organisation as a whole, and are they reflected in the plans of the various business units?

7. Current Property Service vacancy rate

Resolved:

The Chairmen of East Sussex’s Audit, Best Value and Community Services Scrutiny Committee (ABVCSSC) and Surrey’s Council Overview Board (COB) will coordinate their scrutiny work so that the same topics and reports, with additional authority specific information as requested, are prioritised by agreement between the Chairmen for consideration at each authority’s scrutiny body which operate independently.

Additionally, COB’s Transformation Sub-Group members will meet, at least annually, with ABVCSSC members and a Brighton & Hove City Council observer to review Orbis performance and prioritise future scrutiny topics.