Please ask for: Fiona Harbord Telephone: 01482 613154 ...

Town Clerk Services, Hull City Council,

The Guildhall, Alfred Gelder Street, Hull, HU1 2AA

www.hullcc.gov.uk Tel: 01482 300300

Dear Councillor, Finance and Value for Money Overview and Scrutiny Commission

The next meeting of the Finance and Value for Money Overview and Scrutiny

Commission will be held at 09:30 on Friday, 14 December 2018 in Room 77.

The Agenda for the meeting is attached and reports are enclosed where relevant. Please Note: It is likely that the public, (including the Press) will be excluded from the meeting during discussions of exempt items since they involve the possible disclosure of exempt information as describe in Schedule 12A of the Local Government Act 1972. Yours faithfully,

Scrutiny Officer for the Town Clerk

Please ask for: Fiona Harbord Telephone: 01482 613154 Fax: 01482 614804 Email: [email protected] Text phone: 01482 300349 Date: Thursday, 06 December 2018

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Finance and VFM OSC

To: Membership: Councillors Bell, Bridges (DC), Burton, Fareham, Herrera-Richmond, McCobb, McMurray, Nicola (C), Ross, Wareing Officers: David Bell, Director of Finance and Transformation Fiona Harbord, Scrutiny Officer (x5) For Information: Councillor Chaytor, Chair of Overview and Scrutiny Management Committee Reference Library (Public Set) Portfolio Holders: Councillor Pantelakis, Portfolio Holder for Corporate Services Councillor Webster, Portfolio Holder for Finance and Transformation

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Finance and Value for Money Overview and Scrutiny Commission

09:30 on Friday, 14 December 2018

Room 77

A G E N D A

PROCEDURAL ITEMS

1 Apologies

To receive apologies for those Members who are unable to attend the meeting.

2 Declarations of Interest

To remind Members of the need to record the existence and nature of any Personal and Discloseable Pecuniary interest in items on the agenda, in accordance with the Member Code of Conduct. (Members Code of Conduct - Part D1 of the Constitution)

3 Minutes of the Meeting held 23 November 2018

To approve the minutes as a true record.

5 - 20

NON-EXEMPT ITEMS

4 Procurement Update

To brief the Commission on the approach to procuring health and social care service contracts, the delivery of Social Value through procurement activity, and the latest Internal Audit review of Procurement.

21 - 38

5 Procurement of a Supporting Independence - Supported Living

Dynamic Purchasing System

To consider the financial aspects of the pre-decision report prior to it being submitted to Committees in Common. The report has already been considered by the Health and Social Well-Being Overview and Scrutiny Commission.

39 - 58

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6 Director of Finance & Transformation Presentation

To update the Commission on any service, policy or strategy developments that fall within the remit of the Commission, with a view to the Commission including them in the future work programme if they consider it appropriate.

7 Medium Term Financial Plan, Housing Revenue Account, and

Capital Programme – Update and proposals for consultation

To update on the latest expectations informing the MTFP, HRA, and the Capital Programme for the period 2019/20 to 2021/22 and provide for consultation specific factors that will feature in the full budget proposals to be considered by Cabinet in January 2019 and Council in February 2019.

59 - 74

8 Contact Centre Performance – Adults Services Feedback

To provide an update on progress made to improve the customer experience following feedback received from Adults Services, and to provide an update on Contact Centre performance for the period August 2018 to October 2018.

75 - 80

EXEMPT ITEMS

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Finance and Value for Money Overview and Scrutiny Commission

9:30am – 11:45am, Friday, 23 November 2018, Room 77, The Guildhall, Alfred Gelder Street, Hull, HU1 2AA

Present: Councillors Nicola (C), Bridges (DC), Abbott (subbing for Fareham), Burton, Hatcher (subbing for Bell), Herrera-Richmond, McMurray, Ross and Wareing.

In attendance

D. Bell (Director of Finance and Transformation)

G. Taylor (City Major Projects and Infrastructure Manager) Minute 54

M Armstrong (Accounting & Control Manager) Minute 56

P. Chadwick (Property and Assets) Minutes 57 & 58

A. Brown (City Customer Services Manager) Minute 59

D. Dawson (Business Change Manager) Minute 59

I. Anderson (Town Clerk) Minute 60

J. Blesic (City Human Resources Manager) Minute 61

A. Murphy (Director of Children and Family Services) Minute 62

J. Haymes (Principal Property Manager) Minute 63

M. Relph (Assistant City Regeneration Manager) Minute 64

M. Upfold (Managing Director HCaL) Minute 64

F. Harbord (Scrutiny Officer)

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Apologies:

Apologies were received from Cllrs Bell (subbed by Hatcher), Fareham (subbed by Abbott) and McCobb.

.

Minute Number

Action to be Taken by

52 DECLARATIONS OF INTEREST

Councillor Herrera-Richmond declared a personal interest in regard to agenda Item 4 as he was a Director of the Fruit Market. Councillor Hatcher declared a personal interest in regard to agenda item 9 as she was a director of Kingston Works Ltd. Councillor Bridges declared a personal interest in regard to agenda Items 14 and 16 as she was a Director of Hull Culture and Leisure Ltd.

Recommendations: Reasons for Recommendations:

N/A N/A

Minute Number


53 MINUTES OF THE MEETING HELD 19 OCTOBER 2018 Fiona Harbord

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The Scrutiny Officer submitted the minutes from the meeting of Friday, 19 October 2018, for consideration and approval.


a) That the minutes of the meeting of this Commission held on Friday 19 October, 2018, having been printed and circulated, be taken as read and correctly recorded.

N/A

Minute Number


54

FINANCIAL SUPPORT FOR NEW BUILD MULTISTOREY CAR PARK

AT SITE B, FRUIT MARKET

a) Cabinet

G. Taylor (City Major Projects and Infrastructure Manager) attended the meeting to present a report seeking Cabinet approval for the Council to provide a commercial fixed rate loan to the Fruit Market Limited Liability Partnership to enable the provision of a new build multistorey car park. The Commission considered the report and agreed to support option 2. Cllr Herrera-Richmond wished for it to be noted that, as a Director of the Fruit Market, he had not taken part in the discussion or agreed to the supporting of the recommendations.


a) That the recommendations detailed at section 2 of the

officer report are supported.

a) N/A

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Minute Number


55

DIRECTOR OF FINANCE & TRANSFORMATION

PRESENTATION - KEY MESSAGES FROM CHANCELLOR'S

BUDGET 2018

a) N/A

D. Bell (Director of Finance and Transformation delivered a presentation setting out the major elements of the Chancellor’s budget that had implications for local government, and to consider what particular impacts they may have had for Hull

The Commission was informed that: i. The key message to the Council was that in real terms there was an increase of public sector funding from 2021, but because of the

funding committed to the NHS the indication was that other departments from 2021 would receive an inflationary increase ii. This would define the end of austerity, but the reality was the authority was still not sure of where it would be by 2021 iii. Two reviews would define the future to 2021: the spending review of spring/summer 2019 would determine how much would be

allocated to local government, and the Fair Funding review was the mechanism by which funding would be distributed. iv. Until more was known Hull City Council would carry on with its current course and bolster reserves. v. 2019/20 would be the last year of the current 4 year settlement and there was no indication that the planned settlement would change. vi. The government did plan to make an additional £650m available for Adult Social Care and Children’s Services 2019/20.

The Commission discussed:

i. In terms of the additional Children’s and ASC funding, how the funding was to be split between authorities; that it was likely to be linked with the deprivation indices, as with the winter funding; and, this would mean a possible additional pot of £3.8m

ii. Whether there had been any change in borrowing rates; that loans were linked with the performance of the gilt market and there had been no significant movement in that; and, the result of Brexit could have an influence.


a) That the update is noted.

a) N/A

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Minute Number


56

TREASURY MANAGEMENT MID-YEAR MONITORING REPORT

2018/19 (TO INCLUDE EXECUTIVE SUMMARY)

a) Cabinet

D. Bell (Director of Finance and Transformation) and M Armstrong (Accounting & Control Manager) provided the Commission with an update on Treasury Management activity and performance in the first half of the financial year 2018/19. The Commission noted the report and supported the recommendations within it.


a) That the recommendations detailed at section 3 of the

officer report are supported.

a) N/A

Minute Number


57

HULL COUNCIL CORPORATE OFFICE BUILDING MAINTENANCE

PROGRAMME FOR HULL CITY HALL

a) Paul Chadwick

P. Chadwick (Property and Assets) attended the Commission to present a report to the Deputy Leader seeking authority to accept a tender

on a package of works to Hull City Hall and approve the commitment of capital investment to a maximum value of £350,000.00.

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The Commission discussed:

i. What the level of risk of the failure of the current system was; that it increased with the age of the system; the scope of what the decision covered was large; and, the risk was not currently significant.

ii. How the new system differed in terms of the current alarm; and, that it would be the same as the New Theatre with a silent alarm ultimately followed by an actual alarm.

iii. The underlying theme of the report seemed to be that if the system was not renovated then there was a great future risk. iv. It would be interesting to know the cost benefit of investment versus the cost of the new system and in terms of the down time of the

City Hall; that to not invest could be catastrophic; and, there would be no down time as the work would be carried out during non-performance hours.


a) The Commission supported the recommendations at

section 2 of the officer report.

a) N/A

Minute Number


58

HULL COUNCIL CORPORATE OFFICE BUILDING MAINTENANCE

PROGRAMME FOR CENTRAL LIBRARY

a) Paul Chadwick

P. Chadwick (Property and Assets) attended the meeting to present a report to the Deputy Leader seeking authority to accept a tender on a package of works to Central Library and approve the commitment of capital investment to a maximum value of £330,000.00. The Commission discussed:

i. The list at point 7.1 of the report, and that those risks were enough to support the agreement to Option 2. ii. The Chief Officer comments circulated at the meeting.

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Recommendation: Reasons for Recommendations:

a) The Commission supported the recommendations at section

2 of the officer report.

a) N/A

Minute Number


59

WORKSMART PROGRAMME - PROGRESS UPDATE

a) Andy Brown/ Darren Dawson

b) David Bell/ Darren Dawson

A. Brown (City Customer Services Manager) and D. Dawson (Business Change Manager) attended the meeting to give a presentation on the progress of the Worksmart Programme The Business Change Manager highlighted the key issues within the Worksmart presentation and invited questions from the Commission. The Commission discussed:

i. Whether the electronic devices that were to be made available to staff would be of a suitable standard and ready for staff to use; that the allocation of the devices would be followed up; checks would be made with staff that they were happy with the performance of the devices; that phones used by the Members had not always been up to the job; and, that phones were not amongst the devices that would be used under the Worksmart programme.

ii. Concerns about the use of standing desks; that they would not always be suitable for staff, especially those with disabilities; that standing desks could be used for prevention of health issues, and may be more acceptable for those with certain disabilities; they would be trialled at the Wilson Centre on a small scale; and, this would enable understanding of issues.

iii. The cost difference of standing desks; whether they were portable to other buildings and offices; each desk would cost an additional £600 because of the hydraulics built into them; they were portable and could be configured in different ways to suit need; and, staff would not be treated as battery hens where they were confined in small and identical spaces.

iv. Whether there would be any choice as to where staff would be based; would plans be based around permanency; that plans would be made for the long term, not just around which buildings were past their best; and, services would be in flux but plans would try to

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keep ahead of changes. v. What Hull Ambition was; that it was a separate, leadership programme, which looked at cultures and behaviours; and, that more

information was needed in order to understand the programme. vi. How much staff input there had been in order to get Worksmart right from a staff point of view; there had been feedback sessions

from managers, plus direct conversation with staff; and, those direct conversations had already addressed issues with managers that did not understand the new way of working.

vii. The security of devices left in cars and other vulnerable places; that all devices would be encrypted; and, they were more secure than handwritten notes, which was the alternative.

viii. That the programme was centred around shaping and embedding culture, and whether that was informed by a research base; that research of working and associated issues had taken place; the team was responsive to what each business was saying; productivity was not easy to monitor, but the team worked with the services; sickness absence could be monitored and assessed as a reflection of a successful programme; and, everything possible would be monitored, but was often intangible.


a) That an update briefing on the progress of the Worksmart

Programme will be brought to the Commission's April 2019

meeting.

b) That a briefing paper detailing what Hull Ambition is and how

it fits with the Worksmart Programme will be circulated to

members of the Commission.

a) To enable the Commission to continue to monitor the introduction of Worksmart any savings it supported.

b) Members had not previously heard of Hull Ambition and wished to know what it was.

Minute Number


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60

TRANSPORT SAVINGS BOARD UPDATE

a) N/A

b) Ian Anderson

I. Anderson (Town Clerk) attended the meeting to deliver an update on the work of the Transport Savings Board and savings delivered and forecast.

The Town Clerk outlined the headlines with regard to the delivery of savings, as detailed in his briefing and appendices. The Director of Finance and Transformation advised that a report taken to Cabinet in July flagged the need to adjust the proposed savings. The Commission noted the need for Kingston Works Ltd to deliver a further £160k in savings, and discussed:

i. Whether there had been feedback from residents following cuts to transport for day care; that there had been positive feedback as people could now suit themselves; there had been some challenges from Council staff around the use of pool cars; and, staff had warmed to the use of the Council electric cars.

ii. That previously the parents of SEND young people had not been happy at the changes to travel; that the policy had not been fully applied at that time; that some had not been happy that they had not qualified for subsidised travel; and, that the overspend had had to be addressed.

The Commission noted the progress in making savings and expressed support for the work of the Board.


a) That progress against savings targets to be realised through

the work of the Transport Savings Board. is noted.

b) That a further update on the Transport Savings Board will be

delivered to the Commission's April 2019 meeting.

a) Savings were being delivered, and where there was slippage mitigating action was being taken.

b) The Commission still wished to monitor the planned savings delivery.

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Minute Number


61

WORKFORCE PLANS

a) N/A

J. Blesic (City Human Resources Manager) attended the meeting to give the Commission a comparison of staffing costs and budgets 2017/18 forecasts and actuals, and advise if the actuals have any impact on the forecast for 2018/19, as requested at the Commission’s meeting of 20 April 2018. The Commission discussed:

i. Staff Turnover being expensive in terms of recruitment and lost knowledge; what steps could be taken to halt staff turnover; that the turnover levels were not necessarily high; the highest Council turnover level was 5%; and, the Council did have staff turnover and always had shortage, but there were no issues with filling vacancies.

ii. With regard to Social Workers there was not a problem in recruiting newly qualified staff, but there was a problem with finding suitably experienced senior social workers, which led to consultants being employed; whether there was the potential to “grow our own” social workers; that this was being considered through apprenticeships; and, the drive to reduce social worker caseloads should encourage applicants.

iii. Concerns that the Council had an older workforce, but there appeared to be not enough younger workers coming up to replace them.


a) That the briefing is noted.

a) N/A

Minute Number


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62

CHILDREN, YOUNG PEOPLE AND FAMILY SERVICES – BRIEFING.

b) Alison Murphy

A. Murphy (Director of Children and Family Services) attended the meeting to provide an outline of the financial position of her service, highlighting the two areas of significant cost pressure alongside a summary of the activity designed to reduce the costs and mitigate budgetary pressure in future years. The Commission discussed:

i. The residential strategy plans for additional children’s homes; that the strategy had previously been to move away from homes, but now seemed to be moving back again; other authorities did not have home provision; it was cheaper to provide in-house placements so Hull was looking to develop its own placements to make savings; two x 2 bed units would be provided by spring 2019; the placements would be matched with children in other homes; and, it was hoped that the new units would lead to externally placed young people being brought back into Hull

ii. Whether there were long term plans to further increase the provision of placements; that the new provision would need to be reviewed; if LAC numbers reduced they may not be needed, so there were no current plans to do so; there were complex costing issues around placements; if beds were empty this could lead to financial losses; the needs of the child needed to be considered; and, there would always be a need to externally place a minority of children.


a) That updates on the work of the Edge of Care Team and the development of new residential homes will be included in future Children, Young People and Family Services Updates as appropriate.

a) Members wished to be kept updated on the two areas that would deliver savings.

Minute Number


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63

APPENDIX 1 TO THE HULL CULTURE & LEISURE BUSINESS PLAN

UPDATE

a) Scrutiny Officer

A full discussion took place in subjudice at the start of the meeting around whether this item should be included on the agenda as it had been published into the public domain but did not include the most up to date information available. The Town Clerk advised the Commission of its options and it was agreed by the Commission that the item was withdrawn from the agenda.


a) That, following the discussion held in subjudice at the beginning of the meeting, Item 13 be withdrawn from the agenda and the Minutes of the Executive Commissioning Committee meeting of 22 October 2018, having been circulated to Commission members, be forwarded to members of the Press to ensure they have the updated and agreed version of the HCAL savings proposals.

a) The Appendix was not considered to include the most up to date information on the progress of HCAL savings proposals, and the Minutes from the ECC meeting would provide the latest information on the proposals agreed by the ECC.

64

EXCLUSION OF THE PRESS AND PUBLIC

To consider the exclusion of the press and public for the items listed as exempt:

1) Hull Culture & Leisure Business Plan Update, and appendices 2 to 7, at Agenda Item 15

2) Reshaping of the Commercial Property Portfolio: Progress Report and Authority to Dispose of Assets, and appendices 1 to 3, at Agenda Item 16

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The Commission considered the content of the reports, discussed the reasons behind the exemption, and agreed to the exclusion of the press and public.


a) That the press and public be asked to leave the meeting room for the duration of these items.

a) N/A

EXEMPT ITEM

Minute Number


65

RESHAPING OF THE COMMERCIAL PROPERTY PORTFOLIO

a) N/A

b) Nick Howbridge / John Haymes

J. Haymes (Principal Property Manager) attended the meeting to provide for consideration a Cabinet report summarising progress to date and planned activity going forward within an approved strategy to reshape the Council’s commercial property portfolio. The Commission considered the report in full and made recommendations based on the discussion.


a) That the recommendations detailed at section 2 of the officer report are supported.

b) That future updates on the Reshaping of the Commercial

a) N/A

b) Members did not have the information available to them to

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Property should include additional detail in regard to the cost benefits of disposals and, in order that Councillors can respond to queries in their Wards, reasons why disposal of individual properties and leases are considered a positive action.

enable them to consider whether disposals were the best option for the Council.

EXEMPT ITEM

Minute Number


66

HULL CULTURE & LEISURE BUSINESS PLAN UPDATE

a) Mitch Upfold

b) Malcolm Relph/ Mitch Upfold

M. Relph (Assistant City Regeneration Manager) and M. Upfold (Managing Director HCaL) attended the meeting to enable the Commission to consider a report providing further information supporting the HCAL Business Plan and savings proposals, and feed back to the Executive Commissioning Committee. The Commission considered the report in full and made recommendations based on the discussion.


a) That consideration be given to further exploration of an across the board review of the catering provision, instead of reviewing individual establishments, so that successful venues can be learnt from, and that success replicated across all sites.

a) The Commission believed the review of the catering facilities were being carried out piece meal, and that if reviews were carried out of all of the facilities then lessons could be learnt from popular facilities that could help improve delivery at the less popular sites.

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b) That in future Business Plans and Business Plan updates will first be brought to this Commission to enable pre-decision scrutiny rather than post-decision feedback.

b) The ECC is an Executive Committee, therefore decisions to be taken there should be subject to pre-decision scrutiny.

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Author: Neil Daynes Status: Final Date: 06/12/2018 Page 1 of 5

Finance and Value for Money Overview and Scrutiny Commission 14th December 2018

Briefing Paper of Neil Daynes, Procurement Manager

1. Purpose of the Briefing Note

1.1 To brief the Commission on the approach to procuring health and social care service contracts.

1.2 To brief the Commission on the delivery of Social Value through procurement activity and the next steps in the development of the approach to Social Value.

1.3 To brief the Commission on the latest Internal Audit review of

Procurement. 2. Context

2.1 The Commission receives regular updates on procurement activity within the Council. Cabinet adopted a three year Sustainable Commissioning and Procurement Strategy in July 2016.

2.2 The Sustainable Commissioning and Procurement Strategy is listed in the

Council’s City Plan as one of the Council’s key strategic documents. 2.3 The procurement of the Housing Related Support (HRS) framework and

associated contracts has recently concluded. Whilst the process has secured the required levels of services (including increased floating support provision) it has not resulted in significant amounts of new provision, particularly for accommodation-based services.

2.4 The recent procurement of Sexual Health services has concluded without

the Council being able to award contracts for either Lots (Lot 1 – clinical services; Lot 2 – health promotion). No bids were received for Lot 1, whilst two bids were received for Lot 2. Given the response to Lot 1, the Council

Procurement Update

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needs to review how Sexual Health services are commissioned within the budget envelope across both Lots and therefore it was decided not to award to either Lots to enable a complete review.

2.5 This report addresses the following areas:

• Explanation of how health and social care service contracts are procured, including supplier engagement and the structuring of the commercial offer;

• Provide an update on the review of how the Council secures Social Value through its procurement activity;

• Provide an update on the outcome of the latest Internal Audit review of procurement.

3. Procuring Health & Social Care Service Contracts 3.1 The approach to commissioning complex services is summarised in the

diagram below:

A project management approach is used in the commissioning of services which is delivered in a collaborative approach across the health and social care community. Engagement and consultation with stakeholders (including service users and providers) continues throughout the project to inform the final service design and to shape the market to be able to deliver our requirements.

3.2 Provider engagement should take place throughout the process, commencing from the earliest stage. For the HRS project, numerous engagement events were held to share the Council’s strategic direction in relation to the HRS services and to obtain feedback on the proposals. As the process developed, more detail was shared at the events, including proposed Lots, volumes to be commissioned and pricing structures. These events were very well attended. For the Sexual Health procurement, a market engagement event was held in January 2018 prior to the

Stage 1 -Review current

provision & assess

effectiveness

Stage 2 -Needs

analysis and consider best

practice models

Stage 3 -Design new

service model

Stage 4 -Commission / procure new

services

Stage 5 -Manage and

monitor services

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procurement process commencing to inform providers of proposed approach and to obtain feedback, although this was not particularly well attended.

3.3 The purpose of all market engagement is to warm the market up to the

contract opportunity to ensure a healthy response and to ensure the contract(s) being offered are attractive to providers. In order for this to be achieved, the engagement needs to commence early which requires forward planning and to enable this, the Procurement Team is working closely with commissioning officers to establish a complete forward activity plan for commissioning/procurement activity.

3.4 The Public Contract Regulations require that tender documents are made

available to all potential bidders at the same time to ensure a fair and transparent process. This means that we are not able to share the full details of the tender documents at market engagement events prior to the tender process going live. However, it should still be possible to engage potential providers with sufficient detail to ensure a meaningful consultation.

3.5 For recently awarded contracts, such as Adult Residential Care and

Housing Related Support, regular provider engagement events will continue throughout the life of the contracts. This enables providers to offer feedback on how the procurement arrangements are working and for the Council to ensure providers are informed of any new developments, best practice guidance, legislative changes, etc.

3.5 In order for the procurement to elicit suitable responses and quality

services are delivered, it is essential that the contracts are offered in such a way that providers will be able to bid for and deliver them, confident that they are financially sustainable. To do this, benchmark information is obtained where available, and existing contracts reviewed. For some services, unit rates are set (e.g. Adult Residential Care), for others a maximum unit price is set (e.g. Housing Related Support) whilst for others, bidders are invited to propose their prices as part of the tender process (e.g. Homecare). Where prices are set, the method through which the price is set is developed by Finance staff and usually shared with potential bidders to ensure transparency.

3.7 Whatever the pricing model, it is imperative to ensure that what is being

commissioned can realistically be delivered to the required quality within the budget available. This can be challenging given the budget constraints faced by the Council and the nature of some services being commissioned where it is difficult to directly control demand for services. Increasingly, service models need to be remodelled so that the required outcomes can be delivered in a way that represents best value within the budget allocation. It is paramount, therefore, that effective market engagement is undertaken to test the proposed models and financing.

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3.8 The working relationships between commissioning teams within Adults Social Care, Children and Family Services and Public Health and the Procurement Team have been developed over the last two years. Joint plans are in place and the Procurement Team work closely with commissioners to deliver the procurement with the Procurement Officer project managing the procurement process.

3.9 If contract opportunities are being presented to the market in a way that

can be sustainably delivered, then the risk of provider failure is reduced. Contracts are monitored throughout the life of the contract to ensure quality services are delivered and to identify any issues at an early stage. Further steps to mitigate the risk of provider failure include seeking, wherever possible, to establish multi-provider frameworks or Dynamic Purchasing Agreements. Having multiple providers delivering services helps to reduce of impact of a provider failure and provides a mechanism through which alternative supply can be secured quickly in compliance with the Procurement Regulations (e.g. Homecare framework).

4 Social Value 4.1 In September 2014, Cabinet approved the adoption of the Council’s Social

Value Policy Statement which set out the Council’s approach to securing social benefits through its procurement activity.

4.2 For every contract to be procured with an estimated value over £50k, the

Social Value Workbook is used to determine the relevance of Social Value to the contract in terms of its value and length. Using the Workbook also enables the consideration of the nature of the contract being procured, and therefore the type of social benefits that are relevant to the contract and which can be realistically delivered through the contract.

4.3 The outputs from the Social Value Workbook are then considered by staff

from the Council’s Employability and Skills Team to ensure maximum social benefits are obtained whilst at the same time ensuring the requirements are proportionate to the contract.

4.4 The current approach has led to a focus on the delivery of social value

related to skills and employment development such as apprenticeships, work experience, school visits, etc. Whilst this has been successful, this focus may have led to missing wider opportunities such as support to the voluntary and community sector, environmental benefits and social benefits. It has also been difficult to effectively monitor contractors’ delivery of social value activity, relying on suppliers to present activity information through an online portal.

4.5 It is therefore proposed to reframe the benefits to be secured through

social value to better represent the Council’s strategic objectives, relating to Energy City, Destination Hull, and reinvesting in communities.

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4.6 It is also proposed to adapt the current process by making use of the Hull Coin system, enabling more effective monitoring of social value delivery whilst encouraging support for voluntary groups and reinvesting in the community. Appendix 2 shows how this process will work. The Council, along with partner organisations (e.g. Hull Training, schools) will load social value requirements, with values, onto the Hull Coin portal. Through their tender submissions, potential suppliers will commit to deliver the required level of social value and detail the activities they will deliver for the required value of coins. Upon completion of the social value activity, the successful supplier will then pass the coins onto the Council as confirmation of delivery. The Council will then be able to award the earned coins to volunteers and/or community groups. The coins can be used to access discount from local suppliers.

5 Internal Audit review of Procurement

5.1 An audit review has recently been undertaken examining the effectiveness

of the controls for the management of the Central Procurement Service to ensure compliance with the Council’s Contract Procedure Rules (CPRs) in accordance with the agreed Audit Plan for 2017/18.

5.2 The Internal Audit opinion is that the systems in operation within Central

Procurement provide Adequate Assurance. In addition to some outstanding actions from the previous audit, 4 moderate and 5 low risks were identified. These related to required improvements to the Corporate Procurement guidance information available to staff on the Intranet and improvements to the record keeping of the evaluation process.

Neil Daynes, Procurement Manager on behalf of the Town Clerk

Contact Officer : Neil Daynes Telephone No. : 615073

Officer Interests: None

Background Documents: Sustainable Strategic Commissioning and Procurement Strategy 2016

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Delivery of Social Value

Appendix 1 Finance & VfM Scrutiny

14th December 2018

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Social & Environmental Value

Adopted Policy Statement:

“social value” is a core component of contracts that are let to support delivery of

the wider benefits that the Council is seeking to realise, by:

• placing a tangible value upon the social benefits that can be delivered through

procurement,

• explicitly identifying, valuing and monitoring those additional benefits,

• reducing the overall cost of public service provision by reducing demand for

the delivery of public services.

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Existing Policy Structure/AimsCreate 7,500 jobs in the city and see the majority of those jobs

go to those on benefits

Visits into Schools/School Workshops

Work Experience

Apprenticeships

Progression of target groups into employment (eg long term

unemployed, people with disabilities, over 50s)

Advancement in employment

Jobs created in Hull

Harness all Hull’s assets to become the leading UK Energy City Use of energy from renewable sources

Recycling of waste/Reduced waste to landfill

minimize use of non-renewable resources

Delivery miles (eg food miles)

Promotion of travel to work/school on foot/by cycle/by public

transport

Making Hull a world-class visitor destination Overnight stays in Hull generated;

Commitment to Volunteering;

Help Residents to make their money go further Reduced energy use,

healthier families

Prevention and Early intervention Workplace health

Safeguarding the most vulnerable Reduction in health inequalities

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Reframing Policy/AimsDeliver economic growth

that works for all and in

which all are able to fulfil

their potential

Energy City Use of energy from renewable sources

Recycling of waste/Reduced waste to

landfill

minimize use of non-renewable resources

Delivery miles (eg food miles)

Promotion of travel to work/school on

foot/by cycle/by public transport

Visits into Schools/School Workshops

Work Experience

Apprenticeships

Progression of target groups into

employment (eg long term unemployed,

people with disabilities, over 50s)

Advancement in employment

Jobs created in Hull

Destination Hull

Create inclusive, vibrant,

resilient, healthy and safe

communities

Making Money go Further Incentivising re-investment into

communities

Prevention & Early Intervention Promotion of Workplace health

Safeguarding the vulnerable Promotion of Corporate Social

Responsibility, Commitment to

Volunteering;

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Social Value WorkbookSocial Value workbook process:

1

• Stage 1

• Establish Scope

2

• Stage 2

• Adopt Evaluation Methods

3

• Stage 3

• Monitoring and Reporting

4

• Stage 4

• Learning and Guidance

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Social Value WorkbookSocial Value workbook current process:

• Stage 1: procurement representatives, contract managers and the Employability, Skills &

Participation team work together to create a list of social value outcomes that can be included on a

contract by contract basis, using the Social Value Workbook and Template Outcomes

• Stage 2: Evaluation is primarily focussed upon job creation, school visits, training and development,

apprenticeships, volunteering; appears in 3 Performance Indicators within Corporate reporting

framework: use of local contractors, spend on Small and Medium Enterprises, creation of new jobs;

• Stage 3: Monitoring and Reporting – On-line Portal hosted by C4Di onto which suppliers submit data

and which produces a dashboard

• Stage 4: Learning and Guidance – Engagement with suppliers through pre-tender workshops to build

understanding of how better to reframe procurement process based upon experience of existing

contracts

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Weaknesses with Current process

• Focus on support into schools, apprenticeships, job creation, may

miss wider opportunities

• Follow up through Employability, Skills & Participation team with

employment focus

• Wider Corporate Social Responsibility benefits eg through

volunteering/health not well captured

• Based on Supplier submission of data to portal

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Developing improvements to Current process

Hull Coin Proposal

• Voluntary Organisations/Schools etc issued with Hull Coin

Accounts

• Contractors submitting bids issued with Hull Coins which Voluntary

Organisations/Schools accept only when Social Value commitment

delivered by contractor

• Council Account produces Block chain reports on how Council

provided coins have been applied against targets within contract

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Questions

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Appendix 2 Finance & VfM Scrutiny Procurement Briefing

No

Yes

Yes

No

Hull City Council

(HCC)

Choose SV

Indicators

to deliver

Add SV Indicators to

tender documents and

Hull Coin SV portal

Tenderer accesses

Hull Coin SV portal

SV Engagement with

relevant contact ie

Hull Training

Submit Tender to

HCC

HCC

Award

Contract

Stop

SV indicators built

into contract

SV

indicators

delivered

*Coin Issuer awards

Supplier Hull Coins

Contract Performance

reviewed

Hull Coin – Hull City Council to Supplier

Pathway

*Movement of Hull Coins between Issuer, Supplier and

User illustrated on separate flow chart. Issuer may be

HCC or another organisation.

Hull City Council Action/Decision

Supplier Action/Decision

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1. Purpose of the Report and Summary

1.1 Adult Social Care has a budget of £4.5m for Supported Living Services. Currently, 102 people receive Support Living Services funded by Hull City Council (the Council) with further numbers funded jointly by the Council and NHS Hull Clinical Commissioning Group (the CCG).

1.2 Children and Family Services currently spend approximately £1.7m per annum on accommodation services for 16 to 25 year old care leavers and vulnerable young people.

1.3 This report sets out the proposed future approach to the commissioning and procurement of Supported Living Services purchased by Hull City Council (the Council) and the NHS Hull Clinical Commissioning Group (the “CCG”).

1.4 This proposal is to establish a single contractual arrangement for a period of 8 years with possible extensions to ten years in total, for the purchase of Supported Living services to be based on four bands of support for adults and four bands for young people. This is informed by the typical requirements for each band of provision, with fees payable for each band based on a clear understanding of identified needs and is irrespective of the funding body.

Report to the Committee In Common

19 December 2018 Wards: All

Procurement of a Supporting Independence - Supported Living Dynamic Purchasing System

Report of the Director of Public Health and Director of Children and Family Services This item is not exempt Therefore exempt reasons are not applicable This is a key decision. The matter is in the Forward Plan 0053/18 & 0057/18

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1.5 The approach will support a provider market in Hull that is

sustainable, diverse and of high quality and will provide individuals with choice and control over who provides their care and support.

1.6 The approach will also support consistency in payments made for Supported Living service provision in the city regardless of funding source. In addition it will meet the greater expectations of both the regulator, the Care Quality Commission (CQC) and of people who receive these services by ensuring standards in relation to quality through the service specification and the monitoring of the contract.

2. Recommendations

2.1 That agreement is given to undertake a Restricted Procedure procurement exercise to establish a Dynamic Purchasing System for the purchasing of Supported Living Services in the City, for a period of 8 years with 2 possible one year extensions to a total of 10 years.

2.2 That the Dynamic Purchasing System be established with the application of four bands of service delivery for adults: (a) Outreach (b) Enhanced outreach (c) Accommodation-based services (d) Enhanced accommodation-based services For young people the following bands of provision will be established: (a) Emergency & assessment short term accommodation (b) Supported tenancy (c) Group living (d) Intensive support in solo settings

2.3 That authority to set the standard hourly rates to be paid for each of the four bands of service delivery will be delegated to the Adult Social Care Manager and Director of Children and Family Services in consultation with the Director of Finance and Transformation and Town Clerk, to ensure that overall spend is consistent with the budget set by Council.

2.4 That the quality criteria for award include consideration of how proposed suppliers will deliver Social Value through contract, in accordance with the Council’s Social Value Workbook.

2.5 That a framework arrangement be established incorporating Registered Social Landlords capable of providing suitable tenancies for people receiving Supported Living Services with the intent that where appropriate, the Local Authority secures

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provision through Nomination Agreements.

2.6 That authority to award contracts for Supported Living services through the Supported Living DPS be delegated to the City Adult Social Care Manager and The Director of Children and Family Services in consultation with the Town Clerk and the Portfolio Holders.

2.7 That it be noted that NHS Doncaster Clinical Commissioning Group are commissioning a complementary contract for Enhanced Community Living provision (Yorkshire and Humber Framework for Enhanced Community Living) for the clients with most complex clients. That the City Adult Social Care Manager be authorised to agree the placement of clients through that contract where client needs are beyond the Council’s contract.

2.8 To note that the Council has a successful existing Supported Lodgings offer to young people living with host families in the city enabling young people to step down from Children’s homes toward independent living while “staying close” to their existing support network. This will continue to be provided and extended and where this is considered to provide the best outcome for a young person, be the preferred approach, funded from the same budget.

3. Reasons for Recommendations

3.1 A Dynamic Purchasing System (DPS) is expected to help establish a diverse market of Supported Living providers in the city of Hull while ensuring quality and a consistent price. It is expected to enable extensive market shaping over the contract life as the DPS gives flexibility to both commissioners and providers to innovate, diversify and increase the range of service models available. The DPS allows the procurement to comply with the 2015 Public Contract Regulations and gives enhanced capability to design securing services designed to meet the needs of individuals.

3.2 The Care Act places additional responsibility on local authorities to ensure local care markets are sustainable. The proposed approach supports sustainability of the Supported Living provider market.

3.3 Having a single DPS for both adults and young people’s requirements will ensure a joined up approach to market development and enable more effective transition between Children and Family Services and Adult Social Care. The options of a single DPS for all supported living services was supported at Joint Commissioning Forum.

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3.4 The specification reflects the Adult Social Care operating model which includes a move away from Residential Care to community based options which maximise independence, support people to do things for themselves with the support of their own networks and communities and in doing so reduce their reliance on paid support.

3.5 The four service models being developed for young people will all provide person centred provision tailored to the individual and a framework for the requirement of outcomes that aid the development of the young people. The breadth of provision within these service models will ensure a cohort of vulnerable young people with complex needs will have access to the most appropriate support to their needs in Hull. The models will be least restrictive and have an overarching ethos for promoting independence and independent living.

3.6 The Children (Leaving Care) Act 2000 amended the Children Act 1989 and this, along with the Care Leavers (England) regulations 2010 and the Children Social Work Act 2017 increased the powers and duties on local authorities to better support young people leaving care through support and accommodation arrangements to improve the life chances of young people leaving local authority care.

3.7 Government monitoring through Local Authority Key performance indicators includes the provision of data on the numbers of care leavers in suitable accommodation, in education, training or employment. In recommissioning these services the authority will be enabled to meet the needs of young people and our statutory obligations in all these areas.

3.8 The services specification is based on the Supported Living Outcomes framework which will ensure outcome-focused and high quality care delivered in local communities designed to maintain people in their home, promote independence and wellbeing.

3.9 Hull City Council is committed to ensuring people have security of tenure/residence in their usual accommodation in the medium to long term. Enhanced supported living services will be commissioned independently to accommodation. Establishing a framework of landlords who are capable of providing quality accommodation that meets the needs of people receiving Supported Living services complements and supports this objective. Where the Council has or is offered Nomination Agreements, in appropriate circumstances, these can be applied to facilitate the transition into tenancies for this client group. The Housing Department will work with Adult Social Care and Children and Family Services to determine property

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requirements and secure, where appropriate, supply through nomination agreements.

3.10 For those clients with the greatest needs a sub-regional will be required to ensure that there is an adequate mix of providers accessible to the contract as it is anticipated that demand from Hull will be insufficient to warrant a DPS lot for the Council. The NHS Doncaster Clinical Commissioning Group is leading the procurement of a regional framework of Supported Living providers to meet the needs of people with significant, high-end behavioural issues. The Yorkshire and Humber Framework for Enhanced Community Living provision is expected to run from 2019 to 2022 and will appoint 10-15 providers to provide services across broad geographic areas.

3.11 The Council has a successful Supported Lodgings offer to young people living with host families in the city enabling young people to step down from Children’s homes toward independent living while “staying close” to their existing support network. Continuing to provide and extend this offer where this is considered to provide the best outcome for a young person, funded from the same budget, will ensure that Council provided supported living continues to meet young peoples’ needs where appropriate.

4. Impact on other Executive Committees (including Area Committees)

4.1 The proposals within the report have an impact across the entire City. .

5. Background

5.1 The Care Act places a duty on the Council for market shaping; collaborating closely with other relevant parties to encourage and facilitate market development and consistent quality. The purpose of market shaping is to stimulate a diverse range of appropriate services, both in terms of the types of services and provider organisations, and ensure that the market as a whole remains vibrant and sustainable.

5.2 Supporting Independence – supported living is care and support delivered in people’s homes or in the community. Services are defined as:

• Outreach - Providing a single person with support for their daily living activities and to access community services in line with the social model of disability (without night cover).

• Accommodation Based - Providing a single and shared person service with night cover. Staff are required to be on-site either during the day/night or both or have access to a 24 hour on-call service. The person will have a secure tenancy and the care and support will be provided

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separate to housing tenancy support.

5.3 Supporting Independence – supported living providers will be required to meet the needs of the following people:

• Adults with Physical and Sensory Impairments, some of whom also have an acquired brain injury/cognitive impairment

• Adults with Mental Health needs support will include working with Humber Teaching Trust to deliver community based rehabilitation.

• Adults with Learning Disability

• Adults with Autism

• A small number of people, mainly with a learning disability and/or autism, with very high needs, who challenge services due to complex care needs. These people may also be supported under the transforming care programme.

• 16 -25 year old care leavers

• Vulnerable young people who require support to be able to live independently and maintain their own tenancy. The cohort of vulnerable young people and care leavers may have multiple complex needs such as:

• Emotional or Mental impairments

• Challenging and/or aggressive behaviour

• Risk of Absconding

• Attachment Difficulties

• Drug & alcohol misuse

• Sexualised Behaviour

• Young People at High Risk of Sexual Exploitation

• Young People Demonstrating Self-harming tendencies or behaviour

The authority has a statutory duty in accordance with The Children Act 1989 and 2004 to provide accommodation for any child/young person in need within their area who appears to them to require accommodation as a result of

• There being no person who has parental responsibility for him/her;

• He/she being lost or having been abandoned; or the person who is caring for him/her being prevented (whether or not permanently, and for whatever reason) from providing him/her with suitable accommodation or care

5.4 There are currently 102 people receiving a supported living service solely funded by the Council. Oxford Brookes University and Institute of Public Care provide an estimate of current and future populations of people with a learning disability or autism, and their latest projections suggest that while the population of adults 18-64 with a learning disability is fairly static, the number of people over 65 with a learning disability is set to rise substantially.

5.5 Children and Family Services make approximately 30 placements per year that would fall within the scope of this DPS. The 16+ services to be commissioned will offer a range of service models. The variation in this offer will allow young people to step up and step down on their journey to maximising their independence. All individuals should be afforded the opportunity to flourish in the support environment tailored to their needs.

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5.6 The current approach to commissioning 16+ services is through the Yorkshire & Humber White Rose Framework. However, this framework will end in December 2018 and will not be re-procured.

5.7 In the absence of a framework or Dynamic Purchasing System through which to procure Supported Living services, currently packages of care are “spot purchased” resulting in variable rates paid for services and a lack of consistency regarding service quality and assurance about service quality. The Dynamic Purchasing System will establish a standardised contract for services with consistent rates paid and will enable the quality of care to be standardised and monitored. Establishing a Dynamic Purchasing System for the proposed duration will also enable the Council to shape the provider market and encourage providers to develop local provision to meet the needs of service users in Hull.

5.8 The Council is committed to ensuring people have security of tenure/residence in their usual accommodation in the medium to long term as detailed in best practice guidance NDTi “ The Real Tenancy Test – tenancy rights in supported living” 2010. Enhanced supported living services will therefore be commissioned independently to accommodation. This will also mean that people can make decisions about their care provider without it impacting upon their tenancy and home.

5.9 NHS Doncaster Clinical Commissioning Group is leading on the procurement of a regional framework of Supported Living providers to meet the needs of people with significant, high-end behavioural issues. The Yorkshire and Humber Framework for Enhanced Community Living provision will run from 2019 to 2022 and will appoint 10-15 providers to provide services across broad geographic areas. The framework doesn’t seek to replace local market solutions – it provides an additional option to secure placements for people who display behaviours that pose a significant challenge to standard community supported living services, who pose risks to themselves or others, who have experienced multiple breakdowns, and/or spent a long time living in hospital. This is a necessary complementary provision to that which the Council propose to commission for a sector of the market where the Council’s demand is not such as would warrant an individual DPS Lot for the city. It is however, necessary for the Council to have a more localised framework designed to meet the needs of all people requiring Supported Living services.

6. Issues for Consideration

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6.1 Central to the vision for enhanced supported living is to provide high quality personalised services that encourages self-management, prevents future escalation, focuses on increasing and strengthening skills utilising appropriate tools and resources to achieve quality of life outcomes.

• For people with mental health needs this will be based on a “Recovery” outcomes model, which will aim to provide a time-limited intervention.

• For other people whose needs are likely to be more permanent, such as people with learning disabilities, the model will be based on “Progression” outcomes.

6.2 This new approach will enable providers to offer person-centred support,

whilst being able to creatively deliver flexible, responsive services that are strengths based, efficient and cost effective. E.g. Working in partnership across sites to share staff for shared activities, or for the provision of night time support.

6.3 Enhanced supported living provides the tools and resources for people to live their chosen lifestyles. Providers will support people to increase their independence and remain living within their communities, this will be achieved by developing existing skills or acquiring new living skills, through appropriate risk taking, increasing opportunities to education and employment, and ultimately to meet desired outcomes as detailed within their Individual Support Plan. Supported Living will enable people to:

1. Manage and maintain their known needs;

2. Transition from an unsettled residence to a settled place in the community;

3. Access, contribute and participate in their local community;

4. Develop and strengthen their skills and knowledge to be self-sustaining, this includes where there is capacity to learn new skills;

5. Proactively identify life changes early and develop strategies to meet the needs;

6. Access mainstream services and local community and leisure services;

7. Exercise their rights of the Equality Act and transform services, individuals, staff, systems and processes.

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6.4 The aim of a DPS for Supported Living is to ensure high standards are experienced by all individuals receiving supported living services which enables individuals to:

� Live as independently as possible. � Receive their support in the least restrictive way possible. � Live in their own home by maintaining a tenancy agreement, rental or

ownership. � Have choice and control over their care including how it is delivered

and by whom. � Receive a flexible service which responds to their individual

preferences and needs. � Support people coming through transition, in preparation for adulthood

who will be moving into supported living. .

6.5 Enabling people to live in settled accommodation with their own tenancy augments Hull City’s vision to maximise independence. It is envisaged new supported living accommodation will continue to be required to support the delivery of enhanced supported living. The Council therefore needs to work with property developers, and/or supported living Providers who can work with housing partners – (Registered Social Landlords) to develop new supported living accommodation options.

6.6 People aged between 16 and 18 are not eligible to claim Housing Benefit and it will therefore be necessary for provision for this age group to incorporate accommodation as well as support services. Therefore, a separate Lot will be established for this requirement within the DPS.

6.7 A Quality Framework for Supported Living will underpin the specification and ensure service users received the highest quality of support. The Quality Framework will apply to all supported living providers under the supported living DPS and will seek to raise standards in a way that improves outcomes for individuals; incentivise continuous improvement; monitor quality of support and outcomes for people living in supported living; and make judgements about the quality of support and outcomes delivered by providers.

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6.8 Whilst the care and support packages commissioned for adults will be person-centred to meet individual needs, it is possible to break the types of provision into four categories:

a) Outreach (Lot 1) Provides a single person with support for their daily living activities and to access community services in line with the social model of disability (without night cover).

b) Enhanced Outreach (Lot 2) As per Lot 1 - The following criteria must also be met for services to be deemed Enhanced Outreach services:

• A person requiring a specialist communication such as British Sign Language (minimum Level 2, preferably Level 3), Makaton or Deafblind Manual/Block in order to achieve their outcomes and goals.

c) Accommodation based services (Lot 3)

Provides a single and shared person service with night cover and staff are required to be on-site either during the day/night or both or have access to a 24 hour on-call service. Outcomes based enhanced support will be linked to the management of Accommodation based services; there is also a requirement for Shared services to be flexible and responsive to meet person-centred individual needs within the pricing envelope.

d) Enhanced Accommodation based services (Lot 4) As above for Lot 3, and all of the following criteria must be met for services to be deemed Enhanced:

Individual Requirements Service Requirements

1. Individual has a primary support need and additional complexities that challenge the physical, environment and social requirements of a service. This could have resulted in the property requiring specialist adaptation; or in having to regularly purchase new equipment or undertake repairs

2. Following a Positive

Behaviour Support restraint programme, two or more carers are required.

3. Risk Assessments must be

evidenced within the Care and Support Plan and clearly outline the mitigating plan with additional costs, which would support the enhanced

1. Joint funded Packages where Health contribute 50% or over;

2. Identified support workers

receive Specialist Behaviour support training and supervision, (which is updated annually)

3. This training will be

evidenced in the Individual Positive Behaviour Support Plan, which identifies key specialities requiring specific training/refresher training and achieved outcomes;

4. Staff receive Positive

Behaviour and Active Support case supervision, debriefs, to support service risk management, manage and reduce anxiety and high

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rate being considered. (Joint Commissioning group will need to verify this is above the standard requirement)

4. The person has been

assessed as requiring community based specialist Mental Health rehabilitation and may be subject to a CTO, Community Deprivation of Liberty.

staff turnover;

5. The service will work proactively and collaboratively with Humber Teaching Foundation Trust to deliver community based intensive rehabilitation programmes.

6.9 The requirements for young people will incorporate the following service models:

1. Emergency & Assessment Short Term Accommodation –Providing care leavers and vulnerable young people in crisis emergency accommodation at the point of need. Emergency accommodation may be needed due to family breakdown or as a cooling off period. An emergency placement can either be a crash pad or a facility attached to a group living service.

2. Supported Tenancy- Providing care leavers and vulnerable young

people community based accommodation with varying levels of visiting support. Supported tenancy service models can range from housing first models through to providers sourcing a tenancy from its own housing stock or with private or registered social landlords. The primary focus of this model is to help and support the young person to develop independent living skills to live safely in their own home.

3. Group Living – Providing care leavers and vulnerable young people

the opportunity to live in a multi occupancy property which either has shared communal facilities or self-contained accommodation with access to shared support on-site. Group living in a multi occupancy property will be for up to three young people with suitable facility for on-site sleep provision. The model for Group Living will be based on an indicative 24/7 staffing model.

4. Solo Provision – Providing a single young person with accommodation

and support. Solo provision will be required for care leavers and vulnerable young people with complex needs when sharing accommodation is not suitable. Staffing cover will be based on an indicative 24/7 staffing model with flexibility within individual Placement Agreements

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6.10 Commissioning new 16+ services provides the opportunity to develop new service models with the contractor market. Developing approaches that build resilience and promote independence. There is mounting evidence for the benefits of working with people in supported accommodation in a psychologically informed way. The Department for Communities and Local Government has published guidance about PIEs. As the guidance makes clear, there is no one way to ensure that a service is a PIE, but there are five areas that must be considered in service design and delivery, briefly summarised here:

• Developing a psychological framework A psychological framework is a consistent approach to understanding human motivation. All staff should understand and contribute to the development of this framework, and it should underpin all policies and practice within the service.

• The physical environment and social spaces The physical environment is connected to wellbeing, and the PIE should have the psychological framework in mind when making decisions about the physical environment. Providers may have limited ability to change the physical environment but will nevertheless need to ensure that the framework informs any decisions that are made.

• Staff training and support This is a central element of a successful PIE. All staff must understand the framework, and how it applies to everyday practice. This is achieved through having and retaining the right staff, good quality ongoing training arrangements and, crucially, reflective practice.

• Managing relationships Relationships are key to successful outcomes for residents. There are many relationships in supported accommodation, including between residents, staff, families, friends, other agencies etc. The PIE will have a consistent approach to relationships, grounded in the psychological framework.

• Evaluation of outcomes As an extension of reflective practice, the service must reflect on what has been achieved for residents, how, why, and what could be done better in the future. In addition to standard outcome and performance reporting, the Council will meet with the Contractor on a six-monthly basis to discuss outcomes, including service outcomes and outcomes which are difficult to quantify.

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6.11 The commissioning of 16+ services is in adherence to the principles and promises in the Care Leavers Charter and the statues pursuant for the following legislation;

• The Children Leaving care Act 2000 • The care leavers Regulations 2010 • Children and Social work Act 2017

In the absence of a framework or Dynamic Purchasing system through which to procure 16+ services, packages of accommodation and support will be purchased through spot purchase arrangements. This will undoubtedly result in variations of rates paid for services and a lack of consistency regarding service quality and assurance of service quality.

6.12 It is proposed that standard hourly rates are set through the DPS to ensure consistency in the prices paid for services. Each package of care would then be made up of the appropriate number of hours at the relevant rate(s). The rates will then be subject to an annual inflationary uplift.

7. Options and Risk Assessment

7.1 Option 1 Do Nothing This would mean that the provision of Supported Living Services would have to be spot purchase, meaning a lack of consistency and control over the rates paid and no standard approach to outcomes, quality monitoring and management. Furthermore, this would not be compliant with the 2015 Public Contract Regulations and therefore this option is not recommended.

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7.2 Option 2 Establish a framework for Supported Living Services A framework of providers could be procured to establish a single contractual arrangement for the purchase of Supported Living services. However, a traditional framework is only open for applications to be accepted onto the framework at the start of the process and is closed thereafter, providing a static group of providers. This would limit the ability for providers to innovate and diversify within the framework requirements and limits our responsibilities for market shaping by disbarring new entrants. As noted above, there is a need for additional provision and new types of provision to be developed, which a traditional closed framework would not enable and therefore this

option is not recommended.

7.3 Option 3 Establish a Dynamic Purchasing System for all Supported Living Services This method of procurement allows greater flexibility to commissioners and providers but retains the essential controls and processes to establish a market with providers which are fit for purpose. It essentially acts as an open framework whereby providers tender for a place on the DPS to provide the requirements have been specified. If a provider is unsuccessful on entering the DPS at the first attempt, or further providers wish to join at a later stage, the DPS has the flexibility to accept new entrants throughout its life. Equally should the Council seek to deliver new requirements these can be sought through the DPS without the need for existing providers to re-tender. At a micro-commissioning level, the requirements for individual placements will go out to all suitable candidate providers which creates mini-competition for the business within the providers and, ultimately, greater options for the individual. Having a single DPS for all Supported Living requirements including Children and Families and Adults will ensure a single contractual mechanism with consistent pricing, outcomes and performance monitoring and will enable more effective transition between Children and Adults. This is the Recommended option

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7.4 Option 4 - Establish two Dynamic Purchasing Systems – one for Adult Supported Living Services and one for 16-25 Care Leavers and Vulnerable Young People Support Services The benefits of a DPS as outlined in option 3 would apply. Having two separate frameworks would allow separate approaches to market engagement. However, this would require two procurement exercises and administration and management of two DPS’. Also, transition between Children and Family Services and Adult Social Care would become more complex as it would involve clients having to transfer between two different contract arrangements. This option is not recommended.

8. Consultation

8.1 The provider market has been engaged periodically through a series of Adults Supported Living Provider Forum events and these events will continue and have been widened to also incorporate providers of services for young people.

8.2 A range of stakeholders have been consulted widely on the service specification and outcomes framework including social work teams, Housing officers, Housing Benefit officers and partners at the CCG. This consultation has informed the development of the specification and ensured a whole system view of Supported Living services need to operate.

8.3 Neighbouring authorities have been consulted regarding their service specifications, outcome frameworks and approach to fee setting.

9. Comments of the Monitoring Officer(Town Clerk)

9.1 The Council are subject to a general duty to make arrangements to secure continuous improvements in the way functions are exercised, having regard to a combination of economy, efficiency and effectiveness. Under the Public Services (Social Value) Act 2012 the wider parameters of that duty in terms of Social Value are made explicit requiring the Council to consider: • How what is procured may improve the economic, social and environmental well-being of the area • How in conducting the process of procurement the Council might act with a view to securing that improvement

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Establishing a Dynamic Purchasing System for the city will facilitate the development of local provision within the city both supporting clients and young people to remain within the city and creating jobs in the local economy. Including criteria within the evaluation process that promotes delivery of Social Value alongside price can help reduce the demand for Public Services overall and consequently help deliver Social and Environmental Value as well as Best Value and meet the statutory requirements.

10. Comments of the Section 151 Officer (Director of Finance and Transformation)

10.1 The s151 Officer supports the recommendations as the proposals provide the means to both develop the range and quality of service provision, and an appropriate mechanism to control and standardise costs

11. Comments of the City Human Resources Manager and compliance with the Equality Duty

11.1 There are no staffing issues for the Council, in terms of equalities, an impact assessment needs to be carried out, on the face of the proposals it looks positive in terms of outcomes for those with a protected characteristic.

12. Comments of Overview and Scrutiny

12.1 The Forward Plan entry relating to this report will be considered by the Overview and Scrutiny Management Committee at its meeting of Friday, 3 December, 2018. The Committee will decide if the report should be subject to pre-decision scrutiny and if so which Scrutiny Commission will carry out that work. (Ref. Sc5135)

13. Comments of the Portfolio Holder

13.1 Portfolio Holder for Learning, Skills & Safeguarding Children I support the procurement of services for Care leavers and Vulnerable young people aged 16-25 yrs. I look forward to development of these local services and that these provide good quality provisions

13.2 Portfolio Holder for Adult Services & Public Health I welcome the approach in Option 3 as it will ensure an effective response to the requirements of individuals with complex needs. The longer contract period should also support and encourage greater stability within the provider market and engender greater confidence in those providers to meet and evolve with the changing needs of our residents. The proposal to procure a

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Julia Weldon, Director of Public Health

Alison Murphy, Director of Children and Family Services Alison Barker, City Adult Social Care Manager

Contact Officer: Neil Daynes, Procurement and Adult Social Care Manager

Telephone No.: 615073

Officer Interests: None

Background Documents: - A list of background documents must be included. These documents are then available (if not exempt) for public inspection.

Dynamic Purchasing System for these services will enable the Council to ensure a consistent level of quality of services which are flexible to meet individual needs.

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Any human rights implications are included within the report

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Report to the Finance and Value for Money Overview & Scrutiny Commission – 14 December 2018 Cabinet – 17 December 2018

Wards All

Medium Term Financial Plan, Housing Revenue Account, and Capital Programme – Update and proposals for consultation

Report of the Director of Finance and Transformation (Section 151 Officer)

This item is not exempt Therefore exempt reasons are not applicable This is a Key Decision. Forward Plan Ref 0056/18

1. Purpose of the Report and Summary

1.1 To update Members on the latest expectations informing the Medium Term Financial Plan (MTFP), Housing Revenue Account (HRA), and the Capital Programme for the period 2019/20 to 2021/22 and to provide for consultation on the specific factors that will feature in the full budget proposals to be considered by Cabinet in January 2019 and Council in February 2019. General Fund Summary

1.2 In summary, the latest analysis suggests that in 2019/20 the budget may be balanced with the aid of one-off resources, but in 2020/21 and 2021/22 shortfalls of £4.1m and £6.7m respectively are currently anticipated.

1.3 These forecasts reinforce the point that the government’s Comprehensive Spending Review (CSR) needs to allocate sufficient funds to support local government as a whole, and that within that total the intended Fair Funding regime needs to be introduced so that the needs of a relatively deprived and less affluent place like Hull are more adequately recognised and supported.

1.4 The MTFP, and the detailed budget underneath it, are based on continuing

with the existing plans. So there are no new savings proposals, but there are £9.3m of impacts from previously agreed items to be delivered in the year, and inflationary increases in fees and charges are required.

1.5 The position, especially relating to the second and third year gaps, remains very uncertain pending the outcome of the CSR, the implementation of Fair Funding, and potentially any announcements around the government’s proposals for the funding of Social Care. There is also the wider backdrop of the consequences of leaving the European Union, with the clear statement in the Chancellor’s budget of 29 October 2018 that if reality does not match with the assumptions being made then the whole position regarding public finances is subject to change. It is therefore essential that the Council’s reserves are

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bolstered as planned in 2019/20 in order to secure the Council’s financial stability in face of such significant uncertainty.

1.6 If the Council were to be faced with significant budget shortfalls from 2020/21 as a result of the Fair Funding Regime not properly recognising the demands its faces then there would be a need to significantly reduce costs in the coming years. This could mean a likely move towards a more limited service offer focussed on meeting statutory requirements. In this scenario it is anticipated that the Council would need to call on its reserves to balance its revenue budgets as services are reduced and costs eliminated. HRA Summary

1.7 For the HRA the position is essentially business as usual, with no major changes planned. A rent reduction of 1% in line with government policy will apply for 2019/20.

1.8 The delivery of a major capital programme around the building of new homes will continue, along with significant works relating to cladding.

1.9 The significant impact of Universal Credit is yet to come with full service roll out commencing 12th December 2018, and it is likely that the implications will be highly significant. There is accordingly the need to retain flexibility to respond appropriately to the emerging picture.

1.10 Changes to previously stated government policy around the Sale of Higher Value Properties and Fixed Term tenancies have resulted in savings compared with previous assumptions but the medium term picture still requires further savings to be achieved.

Capital Summary

1.11 The capital programme sets out a realistic and manageable plan of investment up to 2021/22 in line with the MTFP assumptions underpinning this report.

1.12 A new requirement is for Council’s to produce from April 2018, a Capital Strategy Report, following the publication of the revised Prudential Code for Capital Finance in Local Authorities 2017. The Capital Strategy will incorporate the capital proposals and overall Capital Programme going forward.

1.13 The revised programme is set out at Appendix 2.

2. Recommendations

2.1 That Cabinet note the updated expectations over the Medium Term Financial

Plan, the Housing Revenue Account, and the capital programme.

2.2 That Cabinet agree to consult on these proposals ahead of consideration of the Council’s formal 2019/20 Budget papers at its meeting of 25th January 2019.

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2.3 That Cabinet note the forecast relating to the reserves position and the significant financial risks faced by the Council.

2.4 That Cabinet note the proposed Capital Programme reflecting the latest funding assumptions and incorporating new priority and annual programmes.

3. Reasons for Recommendation

3.1 The Council needs to ensure that it has an up to date and realistic plan for how it is going to manage its finances in the medium term. That plan includes within it the resources that are available to provide or commission services, and also indicates the ongoing or new actions that are needed to ensure that financial viability is maintained.

3.2 A period for consultation needs to be commenced in order that the final proposals may be informed by the views of stakeholders in the city.

4. Background

4.1 The budget for 2018/19 presented to Council in January 2018 included within it a MTFP position, which was updated in a report to Cabinet of 23 July 2018. At the time the requirement for further revisions to the position as new information became available was signalled, and this report satisfies that need, although the draft financial settlement for 2019/20 will only be issued by government after the upload deadline for this meeting. So there is the possibility that forecasts may have to be amended if that announcement, or the final settlement that follows it in early 2019, contain any significant variations from what has been anticipated.

4.2 The HRA Budget also presented to Council in January 2018 included a five year projection which will be fully updated in the final report. The largest area of uncertainty at present relates to the impact of Universal Credit, which will only start to become significantly apparent during 2019/20.

4.3 The Capital Programme is subject to annual review and approval alongside the Council’s revenue budgets. The funding assumptions underpinning the programme are consistent with the revenue projections.

5. Council Tax Assumptions

5.1 Council tax is forecast to increase in line with the referendum limits set by government. So at present levels this is 3% in 2019/20 and 2% thereafter. Should the government make provision for further social care “precepts”, or alternatively increase the referendum limit, it is expected that the opportunity to increase resources will be taken in light of the pressing demands being experienced across care services and the budget deficit faced in future years.

6. Grant Funding Assumptions

6.1 In 2019/20 core funding is expected to be in line with the final year of the 4 Year Settlement, so a reduction of £5m on the level received for 2018/19.

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Additional one off grant of £3.8m for 2019/20 was detailed in the Chancellor’s October 2018 budget relating to Social Care / Winter Pressures.

6.2 In his budget the Chancellor implied that “inflationary increases” would be receivable from 2020/21, so the forecast is now for an additional £3.2m increase in core funding taking effect from that year.

6.3 The Government have indicated that they intend to introduce a new model underpinning the allocation of resources to local authorities, Fair Funding, alongside further developments in the local retention of Business Rates. It is anticipated that intelligence regarding the impact on the Council will develop over the next 12 months ahead of the anticipated 2020/21 Local Government Financial Settlement in December 2019.

6.4 The latest projections set out in this report assume that the Government

funding in 2019/20 is in line with the 4 Year Settlement and whilst there is some inflationary increase in the following years, that Fair Funding has a neutral impact on the Council.

7. Anticipated movements on financial forecasts

7.1 The anticipated movements from the MTFP position reported in February 2018, based on latest intelligence, are detailed in Appendix 1.These items represent the known material variances to the assumptions which underpinned the MTFP 2018 in February and provide for an outline strategy for future years. There will be a need though to confirm these variations and any other movements during the year ahead of their inclusion in the formal budget proposals for 2019/20.

8. Savings Assumptions

8.1 The table below details the revised savings expectations given the movements identified above and highlights the significant scale of the challenge with regard to cost reductions. An updated schedule of savings is included at Appendix 2.

Revenue Budget Savings Targets

2019/20 2020/21

£M £M

Expected Savings

9.303 3.150

8.2 It is also important to note that the Council’s revenue position set out above is dependent upon the work on going with schools aimed at bringing the High Needs expenditure element of the Direct Schools Grant (DSG) into line with available funding. The 2018/19 in year deficit is estimated to be £0.95M. DSG deficits can be carried forward and paid back in future years, however given that there is forecast to be a £2.997m cumulative deficit going in to 2019/20 it remains the case that measures designed to eliminate the deficit are required to be identified during this financial year.

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9. Reserves and Planning for 2020/21 and beyond

9.1 The projections outlined in this report do not impact on the Council’s strategy to increase General Reserves to £21M by March 2021 as set out in February 2018. Indeed the adverse movements and service pressures highlighted in the revenue monitoring coupled with the continued uncertainty regarding the Council’s funding position post 2020/21, as highlighted in this report, confirm the need to bolster reserves as planned.

9.2 Comparison with other authorities (from the CIPFA “family” group and selected

others) as featured in the July 2018 update report showed the relatively low level of reserves held by the Council given its size and the scale of the financial challenges that it faces. The level of, and unplanned calls upon, reserves were a factor in the Financial Resiliency Index that CIPFA consulted upon in July 2018, and while that has not yet led to a publication it is likely that there will be continued national attention on the adequacy of Council’s reserves.

10. HRA Key Changes

10.1 As expected, rent levels will decrease by 1% in line with Government requirements. However, rents for the subsequent five years will be allowed to increase by CPI+1% each year. The borrowing cap has also been lifted although, because the Authority was below the cap, there are no immediate financial implications within the short to medium term.

10.2 In the immediate future the implications of Universal Credit being fully rolled

out commencing December will impact upon future years projections, which are therefore potentially volatile. Further implications arising from the Hackett Report following Grenfell and the subsequent Green Paper on Decent Homes Standards in general and safety in high rise in particular have been estimated at this juncture. In the meantime the service is undertaking a major procurement exercise to update/replace the existing Housing Management Information System. This should enable future process improvements and efficiencies to be realised.

10.3 The new build programme continues with an expectation of building around

600 new homes between 2018/19 and 2022/23.

11. Capital Programme 2019/20 to 2021/22

11.1 This report set out details of the Capital programme proposals for 2019/20 to

2021/22, which is realistic and manageable, and has been compiled in the light of the latest funding assumptions and the financial implications are appropriately reflected within the revenue budget projections contained within the MTFP.

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11.2 The Capital Programme has been subject to review and amendment through the identification of anticipated future funding sources and resource demands.

11.3 The programme provides for:

• A fully funded programme

• Funding of annual demands, including maintaining the Council’s assets

• Support for one-off projects/priority schemes over the next three years

• Support for ‘spend to save’ schemes funded from revenue savings

11.4 The following table summarises the proposed allocations of the available

resources with an indicative profile spend:

Scheme 2019/20 £m

2020/21 £m

2021/22 £m

2022/23+ £m

Total £m

Finance and Property (Corporate Services)

1.865 2.035 2.135 - 6.035

Highways (Operational Services)

5.500 3.300 4.450 1.830 15.080

Housing 1.500 - 2.700 - 4.200

Housing HRA - 2.371 51.616 - 53.987

Learning, Skills & Safeguarding

- - 4.000 - 4.000

Leisure & Tourism 2.850 1.900 1.100 - 5.850

Neighbourhoods & Communities

4.000 2.250 1.000 - 7.250

Visitor Destination/Regeneration

2.350 - 17.000 - 19.350

GRAND TOTAL 18.065 11.856 84.001 1.830 115.752

Less: Reallocation of existing programme resources

-2.150

TOTAL INCREASE 113.602

11.5 Appendix 3 provides details of the proposed programme.

12. Consultation

12.1 In developing the Medium Term Financial Plan (MTFP), Housing Revenue

Account (HRA), and the Capital Programme for the period 2019/20 to 2021/22

the Council regularly seeks the views of residents and partners on the

priorities for investment, service provision and improvement. This is

completed through a variety of means to enable participation in the process,

including feedback through the Peoples Panel, which has now run for ten

years and individual service consultations.

12.2 The timeline for this year’s Council’s Budget report were first published in the

Forward Plan on the 16 November 2018. This sets out the consultation

timetable and process for identifying the views and feedback of key

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stakeholders. Prior to this the direction of the MTFP up to 2020/21 was

outlined in July 2018 to Cabinet, and both Cabinet and Finance and Value for

Money Overview and Overview Scrutiny Commission have been updated

since this period on key issues as they have arisen.

12.3 In addition to the feedback on priorities which is open to all residents through

the People’s Panel the views on these issues will be sought from the Voluntary

and Community Sector, Business Community, and Young People through the

Youth Parliament will be sought through specific engagement meetings.

12.4 During this period The Government is expected to announce details of the

provisional Local Government finance settlement in early December, with the

final settlement expected in February 2019.

12.5 In line with recommendation 2.2 of this report, formal comments on the

proposals are now invited to be submitted by 25th January 2019. These will be

incorporated, along with the feedback from the key stakeholder groups, within

the report to Council for consideration at their meeting in January 2019.

13. Risks

13.1 As set out in this report the Council faces significant uncertainty in both the short and medium term. The latest forecasts indicate that the Council can deliver a balanced budget in 2019/20 with the aid of one –off resources but there remains significant and growing financial risk in the latter years, and as such it is essential that the Council’s reserves position is protected.

14. Comments of the Town Clerk (Monitoring Officer)

14.1 “The case of R (Buck) v Doncaster MBC [2012] the High Court confirmed that

the role of Full Council in relation to the budget process is the allocation of

resources to meet the authority’s potential expenditure for the next financial

year, which enables it to set an appropriate level of council tax.

14.2 To enable Council to set a balanced budget the Budget and Policy Framework

Rules set out at Part C3 of the Constitution provide that the Leader must

publish a timetable in the Forward Plan for making proposals to Council for the

adoption of the budget and any plan or strategy that forms part of the policy

framework.

14.3 The Forward Plan notice setting out the timetable for development of the

Budget and Policy Framework was published on 16th November.

14.4 This report provides the Leader’s proposals for consultation with the intention

that those proposals be approved for consultation at Cabinet on 17th

December, and following consultation, considered by Cabinet on 28th January

for referral to Council on 28th February.”

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15. Comments of the Section 151 Officer

15.1 The Section 151 Officer is the author of this report

16. Comments of the HR City Manager and compliance with the Equality Duty

16.1 The position is noted, there are no new staffing or equality issues arising from the report.

17. Comments of Overview and Scrutiny 17.1 This report will be considered by the Finance and Value for Money Overview

and Scrutiny Commission at its meeting of Friday, 14 December, 2018. Any

comments or recommendations made by the Commission will be tabled at

Cabinet. (Ref. Sc5137)

18. Comments of the Portfolio Holder for Strategic Finance – Councillor

Webster

18.1 The proposals set out in the report reflect a continuation of the strategy set

out in the 2017/2018; to protect and stabilise services as much as possible,

limiting savings to those previously agreed, ahead of the Government

introducing Fair Funding and providing details of future funding levels for

Councils.

David Bell Director of Finance and Transformation (Section 151 Officer) Contact Officer: Mark Armstrong Telephone No.: (01482) 613686 Officer Interests: None Background Documents: -

MTFP Update Report – Cabinet 23rd July 2018

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Implications Matrix

I have informed and sought advice from HR, Legal, Finance, Overview and Scrutiny and the Climate Change Advisor and any other key stakeholders i.e. Portfolio Holder, relevant Ward Members etc prior to submitting this report for official comments

Yes

I have considered whether this report requests a decision that is outside the Budget and Policy Framework approved by Council

Yes

Value for money considerations have been accounted for within the report

Yes

The report is approved by the relevant City Manager

Yes

I have included any procurement/commercial issues/implications within the report

n/a

I have considered the potential media interest in this report and liaised with the Media Team to ensure that they are briefed to respond to media interest.

Yes

I have included any equalities and diversity implications within the report and where necessary I have completed an Equalities Impact Assessment and the outcomes are included within the report

There are no equalities and diversity implications within the report.

Any Health and Safety implications are included within the report

n/a

Any human rights implications are included within the report

There are no human rights implications within the report.

I have included any community safety implications and paid regard to Section 17 of the Crime and Disorder Act within the report

n/a

I have liaised with the Climate Change Advisor and any environmental and climate change issues/sustainability implications are included within the report

n/a

I have included information about how this report contributes to the City Plan/ Area priorities within the report

n/a

I have considered the impact on air quality, carried out an appropriate assessment and included any resulting actions or opportunities necessary to improve air quality in the report.

Yes

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MTFP Update November 2018 Appendix 1

19/20 20/21 21/22

£M £M £M

Narrative

Position as reported to Cabinet July 2018 0.00 2.00 3.09

Adverse Movements

PRIORITIES

ASC

Residential care 1.25 0.00 0.00

People staying in care longer than expected in line

with 18/19 projections

CYPS

Vacany management0.30 0.00 0.00

Vacancies are being filled at pace to manage

caseloads in line with 18/19 projections

Agency costs0.40 0.00 0.00

Recognition of level of usage in line with 18/19

projections

Placement Costs

0.40 0.00 0.00

Additional resources in light of volatility and high

cost of most intensive care in line with 18/19

projections

Other

Grounds Maintenance 0.20 0.00 -0.20 Continuation of pilot "Digging out" team.

Care Leavers0.09 0.00 0.00

Building on ongoing support for the efforts to assist

care leavers in finding employment

Marketing

0.15 0.05 0.00

Additional costs associated with maintaining 2017

impetus, news web site and investment market

positioning.

SEND / Learning0.40 0.00 0.00

Additional Investment in SEND / Learning in

conjuntion with CCG responding to OFSTED

Green Port Initiative0.40 0.00 0.00

Allocating resources to support work relating to this

after grant ceases

Supported Exempt Accommodation Team 0.00 0.14 0.00 Continuation of team established 2018/19

RL World Cup 0.05 0.00 0.00 Hosting agreement for 2021 World Cup

Delivery of Savings Adjustment

Transport0.15 0.00 0.00

Writing down savings expectation to an achievable

level

Loss of (Grant) Income

Reduction of Income Uplift 0.15 0.15 -0.25 Based on 18/19 actuals

Revenues & Benefits0.30 0.00 0.00

Government grant reductionsdo not match the costs

of running the service

Streetscene

0.21 0.00 0.00

Increase in net waste disposal costs due to

contaminated refuse and the pressure on the global

recycling market

Property & Assets

0.40 0.00 0.00

Market conditions and asset disposlas means that

receiving the level of commercial rent income that is

relied upon is difficult

New Homes Bonus reduction 0.00 0.50 0.00

Government changes to threshhold levels, meaning

that the funding received is anticpated to reduce

Government Funding - Business rates / RSG adjustment0.80 -0.10 0.00

Forecasts revised in light of latest intelligence

regarding base and appeals

Housing General Fund0.10 0.00 0.00

Loss of grant and income relating to private housing

functions

Land Charges and Elections0.20 0.00 0.00

Reduced income from land charges and increased

costs relating to elections

Hull Training and Adult Education 0.23 0.00 0.00

Previous over estimate of achievable levels of

funding

Impact of new pay structure

1.00 0.00 0.00

The national pay award had an impact greater than

the headline figure because of the abolition of some

grades and the changes made to boundaries

between spinal points

Estimated Social Care Cost / Demographic Increase

0.00 3.00 3.00

There are severe pressures on social care, and the

position is liable only to become more pressing. It is

positive for the budget to recognise this reality,

although by definition as the position is

unpredictable the sum shown is an allocation rather

than being a precisely calculated figure

Beneficial Movements

CT - taxbase increase-1.30 0.00 0.00

in line with latest forecasts - Combination of more

properties and reducing discounts

Re-Organisation -1.40 1.00 0.00

Planned allocation to meet elemenst of CYPS

Pressures

Additional Social Care Grant Funding -2.40 -3.20 -3.20

2% increase in line with Chancellor's Budget October

18

Winter Pressures funding estimate -1.40 0.00 0.00 In line with Chancellor's Budget October 18

Use of 18/19 Theatre Income Surplus -0.20 0.10 0.10 In line with latest 18/19 Forecasts

Capital Financing -0.15 0.15 0.00 In line with latest 18/19 Forecasts

CTax Surplus -0.33 0.33 0.00 In line with latest 18/19 Forecasts

Revised Gap November 2018 0.00 4.12 2.54

General Unearmarked Reserve balances bf 12.97 19.27 16.85

Contribution into 6.30 1.70 0.00

Implied use of reserves (as per above projections) 0.00 -4.12 -6.66

Implied level of General Reserve 19.27 16.85 10.19

Year on Year Change (Non-Cumulative)

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Appendix 2

R

e

f

N

o

Ref Service Area Programme/ProjectStaffing Implications

(Impact from

December 2018 FTE)

Narrative (as at November 2018)

2019/20 2020/21

£000's £000's

1

T

o

t

a

1 Adult Social Care Adult Social Care iMPOWER

Transformation - Total

5 979 2 800

No reduction is staffing

expected, the savings

are delivered through

demand management

The ASC Transformation Programme continues to

deliver a new operating model for Adult Social Care

focused on reducing demand for long term care.

2 Public Health Public Health Spending Reductions

and Realignment 1 086 0.00Savings identified as part of 18/19 Budget Process and in

process of delivery

3 Culture and

Leisure

Commissioning

HCAL

428 0.00

Series of measures to achieve a 2% reduction in the

management fee paid to HCaL. Required measures

agreed at October ECC - primarily additional income from

Theatres and Halls and adjustments to catering activity8 Finance HB Administration Grant Reduction

110 tbd

It is anticipated that the Government will reduce the grant

available to support Housing benefit Administration by

around £110k in 2017/18 from 2016/17 levels. A

commensurate reduction in cost will be negotiated with

CIVICA (the Council's Revenues and Benefits

Contractor). FIT11 9 Customer Services Development and review of the

commercial plan for Bereavement

Services 100 0.00

The replacement cremator programme is now compleet

and savings /addityional income expecetd to be

delivered.

DCE2414 Town Clerk Reduction in Legal Services

Management staffing. 20 1.00

Subject to property disposals proceeding as expected

and the Council’s Property stock reducing significantly,it

is anticipated that the opportunity will arise for a mini-

restructure to release this post.9

/

C

Y

P

0

2

16 Children and

Family Services

Non-Pay Review

300 0.00

All contracts will be reviewed in order to deliver a

reduction in spend. The review will focus on spend with

external contractors, materials and consumables,

voluntary associations, Section 17 grants (excluding

Housing Related Support), equipment and professional

fees and Transport.

C

Y

P

0

3

17 Children and

Family Services

CYPS - Partner contributions

200 0.00

Moving torwards a strategic commissioning approach,

with pooled budgets. Development of the Integrated

Commissioning Officers Board (ICOB) aligned with

CCG/PH/Adults is progressing this will deliver

opportunities for joint commissioning across the

partnership, which will yield savings.

CYP0118 Children and

Family Services

Residential Review Phase 2

(including Disability Short Breaks

Review )

30 100 0.00

Review of current service provision with the aim of

combining resources to develop an integrated approach

to overnight short break respite with Limetree, Kinloss

and Sunshine House. The values have been reviewed

based on a more accurate assessment - including the

innovations bid led by the national children's disability

council of which we are a part - and the concept of co-

production with parents and stakeholders which is at the

heart of the approach.

Corporate Savings

20 Corporate Transport Review

150 tbd

There are two key streams of activity re the Transport

Review through which we hope to provide assurance on

delivery of £150k savings in 19/20 - vehicle utilisation /

staff travel costs21 Corporate Customer Enablement and

Empowerment 450 250 tbd

Savings adjusted to reflect projections of cost reductions

agreed earlier in 2017. Phasing of these savings will

remain dependent on the programme implementation

timetable, and service preparedness..

22 Corporate Work Smart

450 0.00

Property related savings arising from reduced

accommodation requirement through the Worksmart

programme.

9 303 3 150Revised Total Savings

Updated Savings

Savings Target

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Capital Programme 2019/20 - 2021/22 APPENDIX 3

Total Total Total

Existing Revised Existing Revised Existing Revised Existing Revised Existing Revised Change

Programme 2019/20 2019/20 2020/21 2020/21 2021/22 2021/22 2022/23+ 2022/23+

£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000

Corporate Services

Agile Working/Work Smart 2,900 2,900 500 500 0 0 0 0 3,400 3,400 0

Customer Enablement 1,422 1,422 0 0 0 0 0 0 1,422 1,422 0

Digital Programme 107 107 54 54 0 0 0 0 161 161 0

ICT Infrastructure 1,500 1,500 1,600 1,600 0 1,000 0 0 3,100 4,100 1,000

ICT Infrastructure Refresh 500 500 500 500 0 0 0 0 1,000 1,000 0

Culture, Leisure and Tourism

Albert Avenue Baths 0 1,200 0 800 0 0 0 0 0 2,000 2,000

Beverley Road Baths 0 900 0 600 0 0 0 0 0 1,500 1,500

Ice Arena Gas Refrigeration 0 250 0 0 0 0 0 0 0 250 250

Library Equipment Resources 400 400 400 400 0 400 0 0 800 1,200 400

Parks 500 500 200 200 0 200 0 0 700 900 200

Parks - East Park, Pickering Park 0 500 0 500 0 500 0 0 0 1,500 1,500

Economic Investment, Regeneration & Planning, Land &

Property

Boulevard UFE Phase 4 0 75 0 1,150 0 75 0 0 0 1,300 1,300

City Hall Shops 0 50 0 75 0 0 0 0 0 125 125

Corporate Operational Buildings Maintenance (inc H&S) 2,150 3,730 1,400 2,150 0 1,000 0 0 3,550 6,880 3,330

Green Port Hull 0 0 0 0 1,900 0 0 0 1,900 0 -1,900

Guildhall Roof 700 700 700 700 0 0 0 0 1,400 1,400 0

Holderness Drain Flood Works 0 1,000 0 0 0 0 0 0 0 1,000 1,000

Key Buildings Energy Efficiency Programme 617 617 0 0 0 0 0 0 617 617 0

Leisure Facilities Maintenance Programme 647 647 0 0 0 0 0 0 647 647 0

Multi Storey Car Parks (feasibility) 128 128 0 0 0 0 0 0 128 128 0

Multi Storey Car Parks (refurbishment) 0 160 0 60 0 60 0 0 0 280 280

District Heating (feasibility) 200 200 0 0 0 17,000 0 0 200 17,200 17,000

Housing

HRA:

Council House Adaptations 2,500 2,500 2,500 2,695 0 2,770 0 0 5,000 7,965 2,965

High Rise Fire Protection Works 3,777 3,777 3,968 3,525 0 3,537 0 0 7,745 10,839 3,094

Housing Regeneration Schemes 540 540 108 218 0 231 0 0 648 989 341

New Build 11,617 11,617 13,326 15,482 0 12,336 0 0 24,943 39,435 14,492

New Build/Empty Properties 3,829 3,829 4,051 2,614 0 2,753 0 0 7,880 9,196 1,316

Planned Capital Works 17,939 17,939 17,461 19,773 0 20,180 0 0 35,400 57,892 22,492

RTB Grant 1,624 1,624 1,000 0 0 0 0 0 2,624 1,624 -1,000

Solid Wall Insulation 18,495 18,495 8,836 9,314 0 9,809 0 0 27,331 37,618 10,287

0

Hull Neighbourhood Renewal Programme: 0

Ings 450 450 300 300 0 0 0 0 750 750 0

Newington & St Andrews Programme 220 220 350 350 0 0 0 0 570 570 0

Preston Road 500 500 500 500 0 0 0 0 1,000 1,000 0

0 0 0

Disabled Facilities Grant 3,156 3,156 2,200 2,200 0 2,200 0 0 5,356 7,556 2,200

Private Sector Housing 2,950 4,450 800 800 0 500 0 0 3,750 5,750 2,000

Learning, Skills & Safeguarding Children

Children's Homes Reprovision 880 880 0 0 0 0 0 0 880 880 0

Devolved Formula Capital 150 150 0 0 0 0 0 0 150 150 0

Hull Training Adult Education 70 70 0 0 0 0 0 0 70 70 0

Investment in Schools (PCP/BSF) 450 450 283 283 0 0 0 0 733 733 0

Schools Maintenance and Improvement Programme 10,172 10,172 5,668 5,668 0 4,000 0 0 15,840 19,840 4,000

Special Provision Fund - SEN 287 287 288 288 0 0 0 0 575 575 0

Neighbourhood, Communities & Environment

Cemeteries 0 1,750 0 0 0 0 0 0 0 1,750 1,750

Green Space/Area Based Projects (S106) 0 1,000 0 1,000 0 0 0 0 0 2,000 2,000

Local Community Initiatives 2,303 2,053 1,000 1,000 0 1,000 0 0 3,303 4,053 750

Traveller Sites 70 1,320 0 1,250 0 0 0 0 70 2,570 2,500

Operational Services

Bridge Maintenance 0 250 0 250 0 0 0 0 0 500 500

City Coach Park 0 200 0 0 0 0 0 0 0 200 200

CCTV Camera Replacement 50 50 300 300 0 0 0 0 350 350 0

Highways Projects 7,941 9,241 6,541 6,541 0 3,500 0 0 14,482 19,282 4,800

Highways - Potholes/Cycle Lanes/Verges 0 1,250 0 1,250 0 0 0 0 0 2,500 2,500

Highways Scheme Development 550 550 0 0 0 0 0 0 550 550 0

Park and Ride 150 150 0 0 0 0 0 0 150 150 0

Priory Way 0 1,800 0 0 0 0 0 0 0 1,800 1,800

Real Time Bus Timetables 500 500 0 0 0 0 0 0 500 500 0

Wawne View/Kingswood AAP 0 200 0 1,800 0 950 0 1,830 0 4,780 4,780

Sub Total 102,941 118,906 74,834 86,690 1,900 84,001 0 1,830 179,675 291,427 111,752

Hull World Class Visitor Destination Programme

2017 Priority Programme:

Beverley Road Heritage Investment 1,140 1,140 0 0 0 0 0 0 1,140 1,140 0

City Centre Public Realm (Phase 3) 52 552 0 0 0 0 0 0 52 552 500

Guildhall Timeball 312 312 0 0 0 0 0 0 312 312 0

Heart of the City Regeneration (Albion Street) 3,154 4,154 1,012 1,012 0 0 0 0 4,166 5,166 1,000

Heritage Action Zone 0 350 0 0 0 0 0 0 0 350 350

Pearson Park Heritage Investment 2,490 2,490 745 745 0 0 0 0 3,235 3,235 0

River Hull+ 1,591 1,591 0 0 0 0 0 0 1,591 1,591 0

2017 Legacy Programme:

Investment in Museums 7,252 7,252 7,252 7,252 8,598 8,598 0 0 23,102 23,102 0

Riverside Berth/Cruise Terminal 512 512 200 200 8,338 8,338 0 0 9,050 9,050 0

Queens Gardens 0 0 1,000 1,000 0 0 0 0 1,000 1,000 0

Sub Total 16,503 18,353 10,209 10,209 16,936 16,936 0 0 43,648 45,498 1,850

PROGRAMME TOTAL 119,444 137,259 85,043 96,899 18,836 100,937 0 1,830 223,323 336,925 113,602

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Author: Lisa Buttery Status: FINAL Date: 04/12/2018 Page 1 of 5

Briefing Paper to the Finance and Value for Money Scrutiny Commission. 14th December 2018.

Wards: All

Briefing Paper of the City Customer Services and Transformational Change Manager. 1. Purpose of the Paper and Summary

1.1 To provide the Commission with an update on progress made to improve the customer experience, following feedback received from Adults Services, reported to the Commission on 21st September 2018.

1.2 To provide an update on Contact Centre performance for the

period August 2018 to October 2018

2. Background

2.1 Service areas were asked in August 2018 for feedback in relation to the quality and accuracy of the contact centre operatives, the effectiveness of key processes and their engagement with Customer Services to resolve matters.

2.2 Responses were received from Streetscene Services, Adult Social

Care (ASC), Hull Culture and Leisure, the Box Office, the Registration Service and the Housing Service. Particular concerns were raised by Adult Social Care in relation to the quality of service received from the contact centre, and the effectiveness of the processes in place, which may result in a poor experience for the customer.

2.3 Since September a number of discussions have taken place with ASC

operational managers, and a number of actions have taken place to improve the service.

Contact Centre Performance – Adults Services Feedback

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3. Issues for Consideration Adults Services Feedback 3.1 Adults Social Care Teams raised the following concerns;

• That the operatives make a lot of errors, don’t check the customers address, put calls through to the wrong teams.

• They don’t always provide the correct information to customers • ASC do not receive any information about the contact centre

performance relating to their service.

3.2 Since the feedback was received, Customer Services have discussed

the issues in detail with ASC operational managers to understand the issues. It was noted, however, that the scale of the problem could not be quantified, and feedback received at the time from the ASC Teams was limited. A number of areas have however, been identified that required an improvement to the script held at the contact centre and training needed for operatives, to provide further back ground knowledge about ASC services.

3.3 The following actions have been completed;

• Amendments to the A to Z scripts – a more detailed breakdown of the various services available to the customer and more clearly showing how to refer for an assessment, particularly in relation to support for the elderly.

• Amendments to A to Z pages surrounding referrals to Occupational Health as there was confusion when to refer to occupational therapy.

• Training for contact centre staff, to understand the above changes, including more background knowledge of the services provided by ASC.

• ASC officers have been reminded to send any information in relation to errors made by the contact centre, to the Customer Experience Team, to enable prompt identification of any service problems.

3.4 In addition to the above, service review meetings have been set up with

the service area, to review performance more regularly. This service is fairly new to the contact centre team, and due to the broad spectrum of support and information ASC provides, there have been some teething problems. It is important therefore to review the performance on a regular basis.

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3.5 Going forward the aim is to invest in further training for contact centre operatives, to enable customers to make use of the ‘Connect of Support’ (C2S) website. Advice and information via the website is at the heart of Adult Services new delivery model, with an aim to when possible to signpost customers to more appropriate providers, reducing the pressure on the service, which allows ASC officers to concentrate on those customers who are unable to help themselves. The dedicated operatives will go live with this following training in January 2019.

3.6 All callers will be advised of the C2S website and encouraged to self-serve, before calling back if unable to find what they require. The customer will be asked about their need, their difficulties and then advised of community support that is available if C2S can provide this information. The advisor can also arrange for a relevant booklet to be emailed or posted to the customer of useful pages. If they are unable to provide information or signposting advice the advisor will refer the customer to the appropriate resource, which could be either the See and Solve team, or a referral to the Social Prescribing Service.

3.7 The aim is to resolve the customer’s request at the first point of contact if possible, and if not to refer the customer to the most appropriate specialist advice within the service, or its partners. This will be a significant improvement to the current experience, and call handlers at the contact provide a better service, the more knowledge they have about the service area, and information to hand to resolve the customers’ enquiry.

Contact Centre Performance

3.8 Appendix 1 shows the latest three months performance for the Contact Centre. August was a particularly challenging month showing a reduction in the number of calls answered within (KPI1 and KPI2) performance targets, however KPI1 remained within target. The reasons for this varied from the issues of power outages at the City Treasury Building for significant periods of time, and disruption to back office systems. Civica also needed to recruit 11 more new staff which became operational at the end of September 2018.

4. Next steps

4.1 Customer Services will continue to engage on a regular basis

with Adults Service to improve the service to our customers. 4.2 Members are asked to note the paper and put forward their

comments and observations on the Contact Centre Service.

Andy Brown City Customer Services and Transformational Change Manager

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Contact Officer : Lisa Buttery Telephone No. : 2212

Officer Interests: None Appendices Appendix 1 - Contact Centre Performance for the period August 2018 to October 2018.

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Appendix 1 – Contact Centre performance for the Period August 2018 to October 2018

KPI Description Target Service Credit Performance

August 2018

September 2018

October 2018

KPI 1

% of calls answered within 90 Seconds

50%

5% deduction in monthly fee if not achieved

64.99%

91.82%

84.83%

KPI 2

% of calls answered within 180 seconds

100%


78.05%

88.32%

82.17%

KPI 3

Respond to Emails

100% in 24 hours

none 100%

100%

100%

KPI 4

Response to social media

100% in 4 hours

none 100%

100%

100%

KPI 5

Customer Satisfaction **

85% to rate as good or very

good

none 96.91%

93.60%

91.50%

KPI 6

Quality Assurance

95% accuracy for all contact

types


96%

95.9%

100%

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Please ask for: Fiona Harbord Telephone: 01482 613154 ...

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