Issue - items at meetings - Support Functions Review

Report of the Interim Executive Director for Finance & Resources (copy attached).

1)    Note the update on the wider Support Functions Review, as detailed in this paper.

2)    Agrees that the council enters into an intra-authority agreement with the Orbis partners.

3)    Agrees that the following BHCC services partner with Orbis:

•        ICT

•        Internal Audit & Corporate Fraud

•        Human Resources & Organisational Development

•        Property & Design

•        Finance & Procurement 

•        Revenues & Benefits

4)    Agrees that these services are delivered though Orbis as soon as practicable, with the timing of operational changes being subject to due diligence.

5)    Recommends to Full Council that:

•        Brighton & Hove City Council joins the Orbis Joint Committee as a founding partner, with the terms of reference as set out in appendix 2 (as they now stand) subject to necessary modifications to reflect expanded membership and the Council’s committee system.

•        It appoints Cllr Les Hamilton to the Orbis Joint Committee on behalf of BHCC.

6)    Subject to Council agreeing to recommendation 2.5 above and satisfactory due diligence, delegate the power to enter into the inter-authority agreement and the power to make the final decision on operational changes to the Chief Executive, Section 151 Officer and the Monitoring Officer and authorise the same to take all steps necessary or incidental to the implementation of the recommendations.

85.1       The Committee considered a report of the Interim Executive Director for Finance & Resources in relation to Support Services Review. The report updated the Committee on the outcome of the Support Function Review; the report recommended that the Council became a founding partner of Orbis, which was currently established as a joint committee of East Sussex County Council and Surrey County Council to provide a full range of support functions.

85.2       In response to queries from Councillor Mac Cafferty the Interim Executive Director explained that the terms of reference would need to be updated to reflect that each authority would have one lead Member on the Joint Committee. The report highlighted that the Orbis option was currently the most compelling, but this did not rule out service by service reviews if outsourcing became a more viable option. Each authority in the partnership would retain its own sovereignty through the appropriate governance process. Assurance was also provided that trade unions had been engaged, and would continue to be, in the process.

85.3       Councillor Wealls welcomed the report, but expressed some concerns in relation to where the control would lie and whether one authority would take a lead in the project. In response the Interim Executive Director explained that it was envisaged there would be a functional lead for each service from one of the authorities involved; any future decision on staffing levels would need to be made through each of the authorities own governance arrangements and in the case of Brighton & Hove would go through the Policy & Resources Committee.

85.4       In response to Councillor Janio the Interim Executive Director explained that the process of due diligence would manage issues around specialisation and duplication of work; the Chief Executive added that the Orbis option was considered the most robust option in the longer term given the 30% savings targets identified for support services.

85.5       Councillor A. Norman highlighted that she was also considering the report in her role as Chair of the Audit & Standards Committee, and she felt the Council would not lose influence by joining Orbis. She added there was scope to widen the membership and potentially include district councils and noted that the joint venture would offer a means for staff to increase their skills base. She considered the proposals in the report to be the best way forward given the options.

85.6       Councillor Sykes highlighted that it was important the Council entered the arrangements as an equal partner, and he asked Officers to consider any arrangements using the same 10-1 ratio that the Council operated for salaries of the highest and lowest paid employee.

86.7       Councillor Hamilton noted that other Members, from the other authorities, would be Executive Members and likely be able to take decisions in their own right; in the case of Brighton & Hove decisions would need to come back to the Policy & Resources Committee.

85.8       Councillor G. Theobald noted that the Conservative Group would support the report; but added that this did not go far enough in terms of achieving more joint ventures with other authorities.

85.9       The Chair then put the recommendations to the vote:

85.10    RESOLVED – That the Committee:

1)        Note the update on the wider Support Functions Review, as detailed in this paper.

2)        Agrees that the council enters into an intra-authority agreement with the Orbis partners.

3)        Agrees that the following BHCC services partner with Orbis:

•        ICT

•        Internal Audit & Corporate Fraud

•        Human Resources & Organisational Development

•        Property & Design

•        Finance & Procurement 

•        Revenues & Benefits

4)        Agrees that these services are delivered though Orbis as soon as practicable, with the timing of operational changes being subject to due diligence.

RESOLVES TO RECOMMEND TO COUNCIL – That:

1)        Brighton & Hove City Council joins the Orbis Joint Committee as a founding partner, with the terms of reference as set out in appendix 2 (as they now stand) subject to necessary modifications to reflect expanded membership and the Council’s committee system.

2)        It appoints Cllr Les Hamilton to the Orbis Joint Committee on behalf of BHCC.

3)        Subject to Council agreeing to recommendation 2.5 in the report and satisfactory due diligence, delegate the power to enter into the inter-authority agreement and the power to make the final decision on operational changes to the Chief Executive, Section 151 Officer and the Monitoring Officer and authorise the same to take all steps necessary or incidental to the implementation of the recommendations.