Agenda item

Performance Report - Quarter 1 2019/20

Meeting of Overview and Scrutiny, Tuesday, 10 September 2019 4:30 pm (Item 40.)

To review and scrutinise the performance management information and, where appropriate, to require response or action from the Executive Committee.

Minutes:

40.1 The report of the Head of Corporate Services, circulated at Pages No. 34-78, attached performance management information for quarter one of 2019/20. The Overview and Scrutiny Committee was asked to review and scrutinise the performance information and, where appropriate, identify any issues to refer to the Executive Committee for clarification or further action to be taken.

40.2 Members were advised that this was the first quarterly monitoring report for 2019/20 and progress against delivering the objectives and actions for each of the Council Plan priorities was reported through the Performance Tracker, attached at Appendix 1 to the report. Key actions for the quarter were highlighted at Paragraph 2.3 of the report and included garden waste renewals which were performing strongly and had generated income of £875,780; commencement of a full review of the bulky waste service; roll out of commercial awareness training to senior management and Members; presentation of an options report on Spring Gardens regeneration to Council in July 2019; and refurbishment of the ground floor west wing of the Public Services Centre and occupation by the County Council, which had signed long-term leases for all areas of occupation generating a rental income and securing a valuable partner. A Member noted the income being generated by garden waste and questioned how much the service cost to deliver. In response, the Deputy Chief Executive advised that garden waste generated approximately £450,000 net which was put back into the service. The Head of Corporate Services indicated that, due to the complex nature of the actions being delivered, it was inevitable that some would not progress as smoothly or quickly as envisaged and the details of these were set out at Paragraph 2.4 of the report. Particular reference was made to disposal of the Ministry of Agriculture, Food and Fisheries (MAFF) site which was on hold pending the outcome of the Spring Gardens regeneration project, and the development of Healings Mill which was out of the Council’s direct control and would be discussed in more detail at Agenda Item 10.

40.3 In terms of the Key Performance Indicators (KPIs), Members were informed that the status of each indicator was set out at Paragraph 3.2 of the report. Of the 17 indicators with targets, 13 were on target, three were below target but the annual target would be achieved, and one was below target and the target was unlikely to be achieved. Notwithstanding this, it was to be borne in mind that it was only the first quarter of the year and the second quarter data would give a clearer indication of performance. Key areas of interest were included at Paragraph 3.3 of the report and particular reference was made to KPIs 12, 13 and 14 which related to determination of ‘major’, ‘minor’ and ‘other’ planning applications respectively and Members were advised that the figures were relatively small therefore it only took one or two applications to be determined outside of the target dates to impact the overall percentage. It was acknowledged there was a typographical error in relation to KPI 12 – Percentage of ‘major’ applications determined within 13 weeks or alternative period agreed with the applicant – which should state that the figure was down compared to the outturn of 2018/19 from 93.3% to 90.91%, as opposed to 90.30% to 90.91%. In terms of KPI 27 – Average number of sick days per full-time equivalent – Members were advised that both long and short term sickness had increased during quarter one which had resulted in an average of 3.7 sick days per full-time equivalent and meant that the target of eight days was unlikely to be achieved by the end of the year. Areas where KPIs were performing particularly well were identified at the top of Page No. 40 and it was noted that the average number of days to process new benefits claims (KPI 21) had been reduced from 22 days in 2018/19 to 10 days as a result of the new ways of working implemented by the Benefits team.

40.4 During the debate which ensued, the following queries and comments were made in relation to the Performance Tracker:






Priority: Finance and Resources
P44 – Objective 1 – Action a) Deliver the Council’s transformation programme to deliver a balanced budget – A Member noted that the commentary stated that these projects had their individual milestones and target dates and were progressing well and he sought clarification as to whether this applied to all projects.	The Deputy Chief Executive explained that all projects were part of the Programme Board agenda and every Council project was subject to that process to ensure they were properly resourced and supported. The milestones and target dates would all be reported to the Programme Board so Members could be made aware of the timescales for specific projects at any point. He confirmed that the majority were progressing well and there were no areas of concern to bring to the Committee’s attention.
Priority: Promoting and Supporting Economic Growth
P48 – Objective 1 – Action c) Work with the Local Enterprise Partnership (LEP) and other partners to contribute to the Local Industrial Strategy (LIS) – A Member noted that the target date was December 2019; however, from a presentation he had attended he believed the publication date was March 2020 and he sought some clarification around this.	The Economic and Community Development Manager indicated that the dates were correct as at the time of writing the report but he would check to see if there had been any changes and would report back to Members following the meeting.
P50 – Objective 3 – Action b) Work with partners to secure transport infrastructure improvements around the borough, including the all-ways Junction 10, Junction 9 and A46 improvements – A Member noted that it was intended to host an A46 session for MPs in the autumn and he questioned whether this was realistic given the current suspension of Parliament.	The Deputy Chief Executive provided assurance that the project was on track and it was still intended to hold a meeting in London before the end of the calendar year to promote the work being undertaken to the relevant Ministers; there was no reason at this stage to suggest this would not happen. In response to a query regarding the Local Transport Plan, the Deputy Chief Executive undertook to ask the Gloucestershire County Council representative to provide an update to the Committee. Clarification was provided that a bid for funding for the all-ways Junction 10 had passed the first stage and was progressing. This was being led by Highways England and Gloucestershire County Council so the Deputy Chief Executive was not in a position to provide a more detailed update at this stage. The Chair indicated that he had received a presentation at a public meeting of the County Council which may be of interest to Members and he undertook to circulate this to the Committee following the meeting.
Key Performance Indicators for Priority: Promoting and Supporting Economic Growth
P52 – Objective 5 – Action a) Explore with partners – including the Battlefield Society – the potential to increase the heritage offer at the Battlefield site – A Member noted that the revised target date was March 2021 and he raised concern that this would not be achieved in time for the commemoration of the 550^th anniversary of the Battle of Tewkesbury bearing in mind that Tewkesbury Abbey would be starting its celebrations in January 2021.	The Economic and Community Development Manager explained that the action to increase the heritage offer of the Battlefield area had arisen as a result of a petition to Council regarding the potential sale of the Gaston’s field and it had subsequently been agreed that the Council work with the Battlefield Society to make more of the site as a whole. Investigations had been ongoing to understand what could be done and he had been involved in some positive meetings over the last few weeks around utilising the Gupshill Manor so the March 2021 target was a launch date for that. In response to a query regarding what the plans involved, the Economic and Community Development Manager stressed that nothing had been firmed up at this stage but recent discussions had focused on three areas: year round events e.g. medieval banquets; some gateway interpretation, potentially hosted at the Gupshill; and routes into Tewkesbury i.e. using the battle trail as a walking route into the town centre as was promoted during the Tewkesbury Medieval Festival – it was noted that discussions were ongoing with the relevant landowner as any proposals would need to be ratified and endorsed by them. The Chair recognised that the date for this project had slipped on five occasions but this was because the Council had no direct control and he suggested that Officers update the Committee when there was some progress to report. A Member indicated that he would prefer to see a report in 12 months’ time and this was agreed as a way forward.
Priority: Growing and Supporting Communities
P55 – Objective 1 – Action e) With partners, explore options for the provision of modular and innovative housing to meet housing needs – A Member queried how many sites had been identified and where they were located.	The Head of Community Services indicated that he did not have the information to hand and would report back outside of the meeting.
P58 – Objective 3 – Action d) Deliver short-term access improvements to the infrastructure around the Ashchurch Housing Zone – A Member sought clarification as to the amount of funding awarded.	The Deputy Chief Executive advised that £8.1M project funding had been awarded and the overall end date was March 2022. The legal conditions of the grant contract were currently being discussed with Homes England with a view to agreeing the contract by the end of September; whilst this was on track, Members should be mindful that it was a Homes England contract, therefore the Council’s influence was limited.
P60 – Objective 4 – Action d) Develop a programme to work with landlords to ensure residents have a supply of rented properties to meet their needs – A Member indicated that the wording in the commentary was confusing and he sought an explanation of what was being done.	The Head of Community Services advised that a report had recently been taken to the Executive Committee regarding a successful bid to the Ministry of Housing, Communities and Local Government (MHCLG) to look at how to encourage landlords to accept individuals on lower incomes using a variety of incentives or mechanisms. Funding of £360,000 had been awarded between all of the Gloucestershire authorities and West Oxfordshire District Council and Tewkesbury Borough Council had originally been leading on the project; unfortunately, as a result of Officer sickness and a key Officer leaving the authority, the lead had now been passed to Forest of Dean District Council. This had resulted in some unexpected delays to the project but he was hopeful he would have an update within the next month or two so a report would be brought back to Members in due course.
Priority: Customer Focused Services
P64 – Objective 1 - Action b) To continue to proactively enforce against enviro-crimes including fly-tipping and dog fouling in accordance with the action plan – A Member expressed the view that Officers were doing an excellent job and he had received very positive feedback from Parish Councils.	The Chair extended his thanks to the Environmental Health team, on behalf of the Committee, and congratulated them on an excellent strategy that was starting to pay dividends.
P67 – Objective 3 – Action b) Introduce the option for paperless billing for council tax and business rates – A Member questioned what was being done to progress the digital strategy and move towards paperless meetings following the roll-out of Members’ new ICT equipment	The Head of Corporate Services confirmed that paperless billing for council tax and business rates would be ready to roll out by the end of the month. He clarified that the main driver behind the new Members’ ICT equipment was to ensure that IT could offer the same level of support to all Members; however, there may be a natural reduction in paper if some Members chose to stop receiving hard copies now they were able to access papers electronically through their tablets. The Deputy Chief Executive agreed that it was for individual Members to decide whether they wished to continue to receive hard copies of papers and there was no reason that could not be championed informally through a pilot group of Members and Officers. Notwithstanding this, there would be a number of implications of moving towards paperless meetings - both positive and negative - so it would be necessary to put together a business case and bring it back to the relevant Committee for consideration.
P68 – Objective 3 – Action e) Review our corporate website – A Member raised concern that the Wi-Fi in certain parts of the Public Services Centre was still very slow and he questioned whether this was being addressed.	The Head of Corporate Services confirmed that IT was looking into this and hoped to have a solution in place by the end of the calendar year.
Key Performance Indicators for Priority: Customer Focused Services
P70 – KPI 21 – Average number of days to process new benefits claims – A Member noted that performance had improved considerably due to new ways of working.	The Chair extended his thanks to the Benefits team for their hard work on behalf of the Committee which was very impressed with their achievements.
Page No. 72 - KPI 27 – Average number of sick days per full time equivalent – A Member noted that the financial figures at Page No. 40, Paragraph 4.1 of the report showed substantial savings against employees and he felt there could be a link with the increase in staff sickness due to the amount of pressure on employees.	The Deputy Chief Executive stressed the Council’s workforce was extremely valued and the organisation did everything it could to minimise long and short term absence - for instance, running ‘Nibblets’ sessions for staff on a regular basis which covered issues such as mental health and stress awareness - and Officers were constantly looking for measures to support staff returning from sickness. Notwithstanding this, it was not a clear picture and there were currently some long term absences that had an impact on the overall figures. With regard to the deficit balance on employees, Members were advised that the reviews of the Community Services and Tourism sections had not yet been completed so some of this money would be for staff in those areas. He explained that there were also opportunities for Heads of Service to look at restructuring in order to do things in a different way to better serve the needs of their communities and the business so there could be delays in recruiting to vacant posts. He indicated that the Corporate Management Team was very supportive of requests to fill posts when they were put forward by the Heads of Service. In response to a query as to the present number of vacancies, the Deputy Chief Executive advised that, as a small authority, the Council could not afford to have numerous vacancies so there were very few currently.
Page No. 73 – KPI 29 – Residual household waste collected per property in kgs – A Member noted that residual waste was slightly higher than it had been in previous years and questioned what steps were being taken to address this.	The Head of Community Services explained that there had been an issue with the quality of recyclate at the end of 2018/19 and during quarter one of 2019/20 and, combined with a change in the processes at the Materials Recovery Facility in Avonmouth, this had resulted in more waste being rejected which had impacted on residual waste levels. He advised that Ubico had been instructed to be more stringent when checking bins and it was intended to launch an educational campaign later in the year. In response to a query regarding repeat offenders, Members were informed that these bins would be stickered to explain why they had not been emptied which tended to resolve the problem; however, if this did continue following written communication, their bins would not be collected.

40.5 Turning to the financial information, the Head of Finance and Asset Management indicated that the budget summary for quarter one showed a £71,190 deficit against the profiled budget which was unusual for the Council. The table at Page No. 40, Paragraph 4.1 of the report highlighted the position for the main expenditure types. Two areas had generated a surplus: employees, which was responsible for the majority of savings, and transport, where a smaller saving had been made due to the impact of the car pool pilot. The deficits reported in relation to supplies and services, and to a large extent on payments to third parties, were in relation to expenditure incurred in delivering the European Parliamentary Elections. Members were advised that the Council received a grant to cover the cost of the elections which was shown as an income surplus within Democratic Services; overall the Democratic Services account was in balance. In terms of other areas contributing to the deficit for payments to third parties, there was a small overspend on additional grounds maintenance resources for Ubico. Assurance was provided that there was a contingency reserve to cover these costs should the contract be in deficit at year end. In addition, the allocation of depot-related costs had been reviewed following increased use by Tewkesbury Borough Council as a result of service changes in 2017 which had led to an increase in vehicles and staff at the site. As such, the cost apportionment to Tewkesbury Borough Council had been increased by £50,000, which was considered to be a fair reflection of usage of the site, and this would now be reviewed annually. The overspend on transfer payments related to housing benefit claimant payment and the recovery of expenditure from the government. It was noted that the Housing Benefit team had identified two significant overpayments as a result of claimant error which dated back several years. The Council only received government subsidy of 40% where claimant error was identified which meant that a loss was being predicted on the budgeted provision; however, the Council was entitled to 100% of the debt if it could be recovered from the claimant, therefore, the deficit could be eradicated in the long run. Members were advised that income was also showing a small deficit at the end of the quarter although Democratic Services had received additional grant for the European Parliamentary Elections, as previously mentioned, and garden waste income was up on the annual target. There was an £80,000 deficit in relation to planning income but it was expected this would be back on track by the end of the financial year. Appendix 2 to the report showed the summary position for each Head of Service. There was a significant budget deficit being shown on investment properties due to not being able to secure another commercial opportunity as expected but that had been offset through savings made on treasury activities. Whilst there was a net deficit, the situation was improving and the financial position was being closely monitored so that corrective action could be taken at the appropriate point in time, if necessary. Appendix 3 to the report showed the capital budget position as at quarter one which was currently showing an underspend as a result of the Council being unable to secure a commercial investment acquisition. Appendix 4 to the report provided a summary of the current usage of available reserves which showed a significant surplus of £104,000 against reserves of £8M; however, this was for the long term benefit of the Council rather than for short term spending and it was expected that the balance would be spent in the future.

40.6 A Member noted that, as well as employees, substantial savings were being made on interest costs which was concerning as this was something which was out of the Council’s control and he understood that rates were expected to increase in future. The Head of Finance and Asset Management indicated that the forecasts the Council had received from its advisors were that interest rates would remain at a similar level, or reduce further over the coming months, and the medium term projection was for a very low rate which also applied to borrowing. There were ways the Council could borrow cheaply but this did impact on the treasury balance which informed the Medium Term Financial Plan so consideration was given to different ways to invest and borrow in order to deal with outside influences.

40.7 A Member noted that the negotiations were being progressed in terms of securing a commercial investment and queried whether this meant the current deficit would be recouped. The Head of Finance and Asset Management explained that although another property had passed the diligence test as set out in the report, unfortunately, this purchase had fallen through as the vendor had withdrawn the property from sale; however, other options had come forward recently and these were beginning to be explored. In response to a query regarding the Ubico overspend, Members were advised that this was due to a number of factors including staff sickness and hire of vehicles as well as the extra resources for grounds maintenance to avoid the issues that had been experienced with grass cutting during the previous year. A Member questioned whether enforcement agencies were used to recover debts in relation to housing benefit and the Head of Finance and Asset Management confirmed that the Council used a variety of means to recover debts; whilst a lot was done in-house by the Revenues and Benefits team, Bristol and Sutor were also used to recover debts where possible. In response to a query regarding the Chancellor’s announcement on the settlement for local authorities, the Head of Finance and Asset Management indicated that there would be significant investment in social care but the main impact for district authorities would be in respect of the 13% increase for funding to address homelessness; notwithstanding this, it would be necessary to wait for the full settlement to understand the individual figures.

40.8 Having considered the information provided, it was

RESOLVED That the performance management information for quarter one of 2019/20 be NOTED.

Supporting documents: