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Publica Review Report

 

 

Meeting: 22/11/2023 - Council (Item 77)

77 Publica Review Report pdf icon PDF 188 KB

Purpose

To consider the Human Engine report and recommendations.

 

Recommendations

That Full Council resolves to:

1.    Approve the recommendations set out in the Human Engine report (that the majority of services are returned to the Council as per the detail provided on page 12 of the Human Engine report).

2.    Instruct the Chief Executive to oversee the creation of a detailed transition plan for subsequent agreement by Cabinet and Council.

3.    Endorse the approach to the further due diligence outlined in the financial implications of the report including analysis of the detailed payroll data required, which will be essential to calculate the short and long-term costs associated with the recommendations set out in the Human Engine report.

Additional documents:

Minutes:

The purpose of the report was to consider the Human Engine Consultants report and to approve the recommendations therein.

 

The Chair then asked those Publica officers who felt that they should leave the room to do so before Members discussed the item.

 

The Leader introduced the report and outlined the following points:

 

·         It was highlighted that this report has been seen by Cabinet, an private all-member briefing, a Special Meeting of the Overview and Scrutiny Committee meeting.

·         It was highlighted that in 2017, Publica as a company was set up by Cotswold District Council alongside Cheltenham Borough Council, West Oxfordshire District Council and the Forest of Dean District Council to share services and staff.

·         It was outlined that savings were made with staff rationalisation, and future pension liabilities regarding the Local Government Pension Scheme (LGPS).

·         It was highlighted that a Peer Review was undertaken in 2022 and provided recommendations regarding how the problems identified with the Publica service delivery model. 

·         It was highlighted that following the commissioning of a review conducted by Human Engine, it was recommended that the majority of services should be returned to the Council.

·         It was outlined that the present structure made changes to services difficult because of the shared ownership model and the governance structures within Publica.

·         The financial challenges for the Council were highlighted as a point to re-think how to deliver services efficiently and with less resources.

·         It was outlined that that the concerns of the Overview and Scrutiny Committee around the detail of the transition plan, whilst not fully detailed at this point, would be finalised in due course. It was also noted that the Overview and Scrutiny Committee would be involved in the process.

·         The Leader made it clear that the welfare of staff needed to be at the forefront of the work, and also stated that the proposal was not a commentary on the performance of staff. However, it was felt that the staff were being let down by the structures of Publica.

 

 

Councillor Blomefield then proposed the Overview and Scrutiny recommendations outlined in the supplementary document pack.

 

Recommend to Council that recommendation 1 in the report is amended to read:

 

‘Approve the recommendations set out in the Human Engine report (that the

majority of services are returned to the Council as per the detail provided on page

12 of the Human Engine report), subject to the completion of due diligence and the

agreement of the detailed transition plan’.

 

Councillor Blomefield then made it clear that the proposal did come with some risks, and would need a thorough and proper process for implementation.

 

Councillor Slater in seconding the amendment noted that the costs could be substantial and that a checkpoint in the transition processed was required in order to ensure it was not a blank cheque.

 

There were comments made regarding how this review was likely as the contracts for services were due to expire in 2024.

 

There was a question in regards to how coordinated the process  ...  view the full minutes text for item 77

Meeting: 16/11/2023 - Overview and Scrutiny Committee (Item 304)

304 Publica Review pdf icon PDF 199 KB

Purpose

To scrutinise the decision taken by Cabinet on 2 November 2023 on the Publica Review. Cabinet resolved to:

 

AGREE to recommend to Full Council to:

1. APPROVE the recommendations set out in the Human Engine report (that the majority of services are returned to the Council as per the detail provided on page 12 of the Human Engine report)

2. AGREE That the Chief Executive oversees the creation of a detailed transition plan for subsequent agreement by Cabinet and Council

3. ENDORSE the approach to the further due diligence outlined in the financial implications of the report including analysis of the detailed payroll data required, which will be essential to calculate the short and long-term costs associated with the recommendations set out in the Human Engine report.

 

Recommendation

That the Overview and Scrutiny Committee scrutinises the report and agrees any recommendations it wishes to submit to the Council meeting on 22 November 2023.

 

Invited

Councillor Joe Harris, Leader of the Council

Robert Weaver, Chief Executive Officer

David Stanley, Deputy Chief Executive Officer

Additional documents:

Minutes:

The purpose of the item was to scrutinise the decision taken by Cabinet on 2 November 2023 on the Publica Review.

 

The Leader introduced the item and outlined the background to the proposal. The Leader that Publica was set up to administer Council Services in 2017, but an LGA Corporate Peer Challenge in 2022 identified that a review should be undertaken into whether Publica remained the correct delivery vehicle for the Council’s services. Initially the review looked at selected services, but the scope was subsequently widened. The Leader emphasised that staff working for Publica were an invaluable asset regardless of whether their employment was through Publica or directly for the Council.

 

The Chief Executive then addressed the Committee and explained the process underlying the consultation. The Chief Executive stated that the Corporate Peer Challenge outlined what was working well, but also stated that the Publica model didn’t provide sufficient strategic decision making capacity, and that there were issues of identity. Subsequently Human Engine, a consultancy, were appointed to review the partnership, and identified that moving some of the services in house would not resolve the identity issues. The Chief Executive stated that taking back the majority of services, as outlined in the report, would return decision making ability to the Council.

 

The Chief Executive also stated that Publica had been asked to make savings, and had identified £2m worth of these through the ‘future Publica’ programme. It was stated by the Deputy Chief Executive that the savings per Council would be around £660,000, and the Deputy Leader stated that withdrawing the Council’s services from Publica would allow increased control and flexibility.

 

The report highlighted which services would be retained within Publica (e.g. ICT and HR), but the Chief Executive stated that transition plans were being worked on, utilising free consulting services from local partnerships in addition to the resources outlined in the report.

 

Members subsequently discussed the report and raised points on the pace of the proposals, the financial and governance arrangements.

 

Members made reference to the transition plan, which the Committee did not have access to. Members raised concerns over Cabinet approving the Human Engine recommendation without having the transition plans in front of them. The Chief Executive and Leader stated that the transition plans would be presented to the Committee at subsequent phases of the decision making. They also stated that the pace was dictated by another partner council, and the partner councils needed to be in alignment due to matters such as staffing and corporate governance. The Chief Executive stated that further details on finances and governance would be presented at future stages.

 

In regard to the pacing of the proposals, the need to retain staff was referenced.  Although the need to scrutinise proposals and make sure governance arrangement were in place, providing clarity through a quick process was mentioned by members as a potential benefit to allow the Council to provide certainty to staff. Likewise, the Leader explained that the length of the process was dictated  ...  view the full minutes text for item 304

Meeting: 02/11/2023 - Cabinet (Item 189)

189 Publica Review pdf icon PDF 187 KB

Purpose

To consider the Human Engine Consultants report and to approve the recommendations therein.

 

Recommendations

That Cabinet resolves to:

Recommend to Full Council to:

1.    Approve the recommendations set out in the Human Engine report (that the majority of services are returned to the Council as per the detail provided on page 12 of the Human Engine report)

2.    That the Chief Executive oversees the creation of a detailed transition plan for subsequent agreement by Cabinet and Council.

3.    Endorses the approach to the further due diligence outlined in the financial implications of the report including analysis of the detailed payroll data required, which will be essential to calculate the short and long-term costs associated with the recommendations set out in the Human Engine report.

Additional documents:

Minutes:

The Chair notified Members that this item would be taken first, and then asked Publica officers who felt that they should leave the room to do so.

 

The purpose of the report was to present the recommendations from the consultants Human Engine.

 

The Leader, who had joined the meeting remotely, was invited to introduce the report.

 

The Leader renewed his apologies to Members for not being able to be present in person due to participation in a peer review exercise at South Cambridgeshire District Council.

 

The Leader outlined the report and presented the following points;

 

  • Cotswold District Council in 2017 set up the teckal company Publica Group Ltd along with Cheltenham Borough Council, Forest of Dean District Council and West Oxfordshire District Council to create a cost-effective model for providing day-to-day services.
  • It was noted that the majority of staff in 2017 were transferred to Publica, with the savings achieved through the rationalising of staff structures and not enrolling new employees into the Local Government Pension Scheme.
  • It was outlined that the model had mostly achieved the savings it was designed for, but it was noted that the new administrations in the partner councils since its creation, and other challenges such as Covid-19 had presented pressures for the Publica model.
  • It was also noted that the Peer Review conducted in 2022 had highlighted challenges such as governance and staff identity between the Council’s and Publica as the service delivery company.
  • Following the Peer Review Action Plan agreed in January 2023, it was outlined that the consultancy firm Human Engine had been commissioned by the partner councils to look at the appropriateness of future services remaining within Publica.
  • It was highlighted that the review undertaken had concluded that only repatriating select services would not address the challenges outlined. It was highlighted the recommendation from Human Engine was to return the majority of services to the Council, and to keep a few select services within the Publica partnership.
  • The Leader noted that the recommendation from the report would require some upfront costs in the short-term as outlined within section 5.3 of Annex B. However, it was noted that the saving from reducing senior management costs, and Publica contract costs would mitigate these challenges.
  • It was highlighted that that the decision was a major change for the Council, but that it was felt to be the best for residents.

 

It was noted that the Leader was not allowed to vote on the recommendations due to participating virtually.

 

The Chief Executive was then invited to provide any further comments. The following points were outlined:

 

  • The transition plan was noted as being very important, and would be considered by Cabinet and Council in early 2024. 
  • It was noted that there was a need to work closely with Publica management to provide support to staff who may be nervous about the transition.
  • It was noted that the transition plan would be outlined as soon as possible, providing the recommendations were agreed by all the  ...  view the full minutes text for item 189

 

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