1. Briefing on Outline Proposals for Property Division Tim Gregory 28 June 2010 Nottinghamshire County Council

2. Why are we here today? To talk about the Council’s review of all services: What we are doing and why we are doing it What the Trading Services Reviews mean for you What the reviews might mean for your job

3. Before we start… Today is about: Keeping you informed (the public too – through local media briefings) What will happen next and when Being open and honest about the challenge ahead No decisions have been made

4. Why do we need to review our services? The Government debt: £165billion The public sector savings: £61billion (before the emergency budget) All councils saving up 25%

5. What does this mean for NCC? We need to save: £120m/year over 4 years out of 484M/year £1 in every £4 we currently spend To reinvest to safeguard services for older people and vulnerable children To save money as result of budget cuts

6. Which Trading Services are involved? ASC&H County Enterprise Food County Horticulture & Work Training Sherwood Industries Solutions 4 Data Communities Schools Catering Cleaning Services Landscape Maintenance Sherwood & Rufford Country Parks County Hall Catering Highways Design Highways Operations Fleet Services National Water Sports Centre Corporate Services Building Design Services Building Direct County Supplies Chief Executives Design & Print

7. How were the reviews carried out? Review Process – started Dec 2009 Looked at the costs to the council and our customers Found out what other councils are doing Asked if any interest from commercial companies Who completed the Review Consultants: Tribal (majority of costs met by Government funding) Involved your senior managers Members and Chief officers reviewed the options

8. What does the review tell us so far? Low High Performance High Cost How much services cost vs. How well they are performing

9. What does the review tell us so far? Low High Performance High Cost High cost Low performance High cost Medium performance  Cleaning  CHWT  Fleet  Highway Operations  NWSC  Schools Catering Low cost Medium performance  Building Design  Solutions4Data Medium cost Medium performance  Building Direct  Highway Design  Rufford  Sherwood Medium cost Low performance  County Enterprise Foods Low cost Low performance Low cost High performance  County Supplies  Landscaping Medium cost High performance  Design&Print High cost High performance  County Hall FM  Sherwood Industries

10. Trad ing Service Business C ase Business Pla ns from Vertical Reiews Existng Department al Improvem ent Plans Two approaches to achieve the savings Option 2 Further Reviews (as part of the service review programme) Option 1 Market Test ASC&H County Horticulture & Work Training Sherwood Industries Solutions 4 Data Communities National Water Sports Centre Corporate Services Building Design Services Building Direct (components) County Supplies ASC&H County Enterprise Food Communities Schools Catering Cleaning Services Landscape Maintenance Sherwood & Rufford Country Parks County Hall Catering & FM Highways Design Highways Operations Fleet Services Corporate Services Building Direct (components) Chief Executives Design & Print

11. What does all this mean for my service? Remember No decision has been made yet about any of the trading services Any decision will be subject to consultation and cabinet and council decision What we are going to do is either: Review all other services as part of the service review programme Market Testing services that could be of interest to commercial companies or

12. Decisions made by cabinet & council as required When does all this happen? June 2010 July-Sep 2010Oct 2010-Jan2011 Feb 2011 Staff Briefings Market Testing Budget set Implementation: up to 2 years Service Reviews or

13. Property Services Division - Key Factors Significant downturn in resources for capital programmes Likely slowdown in capital expenditure Need to save around 30% in Corporate Services over 3-4 years Need to find around 15-20% over next 18 months to 2 years Traded services review

14. PROPERTY DIVISION – CURRENT FUNCTION AND ESTABLISHMENT Strategic Asset Management and Compliance - 3 teams - 50 fte Building Design and Procurement - 3 teams-59.5 fte Property, Estates and Business Management - 4 teams -134 fte

16. The illustrated trend line (based on actual performance to date) suggests that if this trend continues we will need to reduce our craft worker establishment by 8 posts. This will be further compounded if the planned maintenance budget is reduced and we do not retain the gas servicing and electrical inspection work when it is market tested in the autumn

17. Building Design and Procurement Serious implications of the downturn/budget savings Little if any work beyond Mar 11 Potential closure of most functions with retention of small client function Would use framework/other external suppliers when work is required

18. Building Direct – Compliance Teams Condition Survey – Review the frequency and the way in which we deliver surveys Water Monitoring – Market testing ongoing 60% of the service outsourced small in – house team retained which will be benchmarked against the external suppliers Service Agreements – review the internal billing processes

19. Building Direct – Design Team Design workload will reduce due to the reduction in the property portfolio Design workload will reduce still further if Planned Maintenance budgets are reduced by 25% Elements of the service will be market tested

20. Building Direct – Operations (1) Workload will reduce due to the timescale involved in delivering health & safety elements of the budget Workload will reduce further if Planned Maintenance budget reduced by 25% Elements of the business will be market tested this process will commence in the Autumn

21. Building Direct – Operations (2) A future option may be a combined facilities and planned maintenance service which would be market tested Day to day responsive and minor works for schools will be delivered by the EMPA framework. Building direct operations will become a maintenance operation in the Autumn term this will also reduce workload

22. Estates and Facilities Management Both services will be reviewed over the next 12 months Elements of Estates Management will be subject to market testing Facilities and maintenance operations may be market tested as a package

23. PROPERTY DIVISION – POSSIBLE FUTURE FUNCTIONAL SPLIT Core Function/Client Intelligence Property Strategy, policy and standards. Asset performance in relation to Council objectives Determination of Service Property needs Statutory Compliance including water, fire and construction issues Client function to meet CDM requirements High level property advice covering all technical and professional areas Property data and ownership records (terrier) Commissioning across all property functions relating to the ownership, management, development and occupation of the Council’s portfolio Supporting Functions/professional and technical services Project management/delivery Project design and construction management Property transactions (including sales etc) Feasibility analysis Specific Property Advice relating to identified projects, programmes etc Property surveys (condition, fire, water etc) County Office management Property Valuations (including annual capital valuations) General estate management Maintenance and minor works

24. What does this mean for me and my job? What about in the future? Reduce or Stop Service This will involve reducing staff levels Consultation Process Redeployment where possible Do it differently This may involve reducing staff levels Utilising staff differently – e.g. job roles, working practices, locations Other Provider Transfer of employment (TUPE)

25. What does this mean for our customers? What about in the future? The Council still responsible for services that are delivered Some services may be provided differently or by somebody else Better value for money

26. What do I need to do now? Keep working as now – delivering the quality of services people like Keep working with us – as part of the wider improvement programme – looking for and making savings Keep positive – yes, we are in challenging times but there is a future for the important work we do

27. Your Questions

28. What are we doing next? Managers Briefings Talking to Unions Talking with you today Start work on the reviews Talking to customers

29. Where can I find out more? Letters to your home address Your line manager Attending meetings and briefings The Big Issues website – FAQ’s Customer Services Centre 08449 80 81 82 Please use the questions/comments cards too But most important - our promise to keep talking…

30. Corporate Services Trading Services Briefing Thank you Nottinghamshire County Council One Council – One Business – One Plan