1. Shared Services and Land Use Planning
Where to start …. An NGSC Perspective
Warren Groves
June 2016

2. Shared Services - A Working Definition
Shared services is the provision of a service by one part of an organization or group where that service had previously been found in more than one part of the organization or group. Thus the funding and resourcing of the service is shared and the providing department effectively becomes an internal service provider.
Wikipedia, the free encyclopedia
Look at Auditor general report Another definition What is currently done BY many….In the future is done by ONE… ….FOR many………… I like that one Off presentation at a MAV conference

3. Engineering Services Experience
Could you find more attractive models? What is this slide for?

4. Synopsis - NGSC
Located in Wimmera Region in the Central West of Victoria
Covers an area of 5,918 square kilometres
Population of 11,719 (Density of 1 per 2.00 kilometres)
3,048 Kilometres of local roads
234 kilometres from Melbourne GPO to Stawell P.O.

5. Identification of a need/Opportunity for Innovation - Hindmarsh Shire Council
Area 7,527 square kilometres
Population of over 6,200
374 kilometres from Melbourne GPO to Nhill
Unable to recruit a suitable Engineer - high costs of contractors

6. Assess Capacity - NGSC Infrastructure Dept.
Personnel - 3 design and project Engineers and a Graduate Engineer
Maintain sufficient workload to fully occupy a full time Graduate summer grad program -> full time
Existing relationship with Hindmarsh Shire Management & Officers
Sufficient fleet and equipment to support extra requirements

7. Early stages of the process / relationship
Initially developed a process where individual jobs were quoted for on a cost recovery basis
Quotes were significantly cheaper with reduced travel costs, no accommodation costs and completed within time frames
Graduate Engineer -> full time utilisation?

8. Development of a Process
Agree to mutually acceptable service standards
Agree on acceptable Cost recovery basis
Determine Transport, Travel, Wages, reasonable on costs
Agree on skill level/experience of officers supplied

9. Formalisation/Benefits of the MOU process
Single agreement (MOU) removes need for quotes
MOU obviates procurement considerations
Provides ongoing service provision and certainty for Hindmarsh Shire
Enables strategic planning

10. Supplementary Infrastructure Agreements
Oval aerating - quote for gallops adopted for Councils
Street Sweeping
Road Grading
West Wimmera - agreement
Discussions with other Councils

11. NGSC Environmental Health Experience
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12. Identification of a need/Opportunity for Innovation
Ararat Rural City Council
Adjoining Council
Existing strong relationship

13. Assess Capacity/ Define Need - NGSC Environmental Health Unit
NGSC conducted service reviews in one EHO surplus to requirements
Unable attract a suitable full time EHO in 2014
Executive level in principle arrangement re a potential shared service agreement during informal discussions

14. Early stages of the process / relationship
Discussion at appropriate level - Mngr Planning, HR, Finance
Induction at new workplace and commence duties on informal basis - cost recovery of wages only
Working from Ararat - familiarity with staff and processes

15. Development of a Process
Agree to mutually acceptable service standards
Agree on acceptable Cost recovery basis
Determine Transport, Travel, Wages, reasonable on costs
Agree on skill level/experience of officers supplied - EHO and EHT provided to conduct less complicated inspections

16. Formalisation of the process - MOU
Single agreement (MOU) removes uncertainties
MOU obviates procurement considerations
Provides ongoing service provision and certainty for ARCC
Enables strategic planning

17. How can Shared Services apply to land use planning?
Limited capacity in Statutory/Strategic/Enforcement
Cost of full time role/contractors
Neighbouring Councils with similar issues
Budget limitations

18. How can Shared Services apply to land use planning?
Online interactive information / applications
Paperless/Remote processing
Joint area initiatives (Triangle Project)
Implement RGP Initiatives
Cluster/Regional services

19. Shared Service Checklist
Identification of Need / Opportunity
Assess Capacity / Define Need
Early Relationship / Informal stage
Developmental/Sounding out Process
Formalisation of Process
Service Delivery
Review of Process

20. Shared Service Case Study
Utilise the following case study or your own organisation to provide a (Planning) service to a neighbouring Council.
What methodology would you apply within the following circumstances?

21. Shared Service Case Study
Quarreltown is staffed by 1.5 fte Statutory, 0.5 fte Strategic Planning, 1.0 fte Admin support,
Quareltown has ability to attract further Statutory/Strategic Planner(s)
Stoicville is staffed by 1.0 fte Statutory Planner, 0.6 fte Admin support. No current Strategic capacity

22. Shared Service Case Study
Both Shires have neglected strategic works over a number of years
Both Shires are under pressure to reduce staff and expenditure
Both LGA’s use different software and operating systems

23. Shared Service Case Study
Travel time between Shires is approx. one hour
Both LGA’s have low rate bases and strong reliance on external funding
Neither LGA is adverse to embracing opportunities for innovation