notice of meeting - stirling councilminutes.stirling.gov.uk/pdfs/finance &...

NOTICE OF MEETING

A MEETING of the FINANCE & ECONOMY COMMITTEE will be held in the COUNCIL CHAMBERS, OLD VIEWFORTH, STIRLING on THURSDAY 14 JUNE 2018 commencing at 10 am.

IAIN STRACHAN Chief Officer - Governance Clerk to the Council

8 June 2018

AGENDA

1. APOLOGIES AND SUBSTITUTIONS

2. DECLARATIONS OF INTEREST

3. URGENT BUSINESS

4. MINUTES - FINANCE & ECONOMY – 19 APRIL 2018 (Pages 1 - 12)

PERFORMANCE

5. GENERAL FUND REVENUE BUDGET FINAL OUTTURN 2017/18Report by Chief Officer – Finance (Pages 13 - 24)

6. GENERAL SERVICES CAPITAL PROGRAMME 2018/19 PROGRESS REPORTReport by Senior Manager - Infrastructure (Pages 25 - 52)

7. PERFORMANCE AND STRATEGIC PRIORITIES PROGRESS REPORTReport by Report by Senior Manager – Economic Development Culture &Tourism (Pages 53 - 66)

8. TREASURY MANAGEMENT PERFORMANCE REVIEW 2017/18Report by Chief Officer - Finance (Pages 67 - 82)

OTHER BUSINESS

9. “TOWARDS COMMERCIAL EXCELLENCE”: COMMISSIONING &PROCUREMENT ANNUAL REPORT 2018Report by Chief Officer – Strategic Commissioning & Customer Development(Pages 83 - 128)

10. APPRENTICESHIP CHARTERReport by Chief Officer - HR (Pages 129 - 134)

11. PROPERTY ASSET MANAGEMENT STRATEGY & DELIVERY PLAN (INCLCOMMUNITY PROPERTY TRANSFORMATION PROGRAMME)Report by Senior Manager – Infrastructure (Pages 135 - 164)

12. PATERNITY LEAVEReport by Chief Officer - HR (Pages 165 - 168)

13. FOOTWEAR AND CLOTHING GRANTReport by Chief Officer - Finance (Pages 169 - 172)

EXEMPT

It is anticipated (although this is not certain) that the meeting will resolve to exclude the press and public during consideration of the following items marked with the prefix E (not for publication in terms of Schedule 7A of the Local Government (Scotland) Act 1973).

Item No

Report Title Schedule 7A paras

Reason for Report being Exempt

E14 PENSION FUND – PROPOSAL IN RELATION TO ADMISSION BODIES

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This report is exempt under Paragraph 3 of Part 1 of Schedule 7a of the Local Government (Scotland) Act 1973 as it contains information relating to the pensions affairs of a range of organisations that are members of the Falkirk Pension Fund. That information has been supplied to the Council for the purposes of considering this issue on the understanding that it is not published.

If the report was not exempt, the Council could be in breach of data protection legislation under the Data Protection Act 1998.

E14. PENSION FUND – PROPOSAL IN RELATION TO ADMISSION BODIES (Para 3) Report by Chief Officer - Finance (Pages 173 - 188)

For further information contact Committee Officer – Karen Swan 01786 233081 or Governance Officer/Clerk – Jean Houston, 01786 233100)

/forms/request.htm

STIRLING COUNCIL

MINUTES of MEETING of the FINANCE & ECONOMY COMMITTEE held in the COUNCIL CHAMBERS, OLD VIEWFORTH, STIRLING on THURSDAY 19 APRIL 2018 at 10.00am

Present Councillor Margaret BRISLEY (in the Chair)

Councillor Neil BENNY Councillor Scott FARMER Councillor Bryan FLANNAGAN

Councillor Alison LAURIE Councillor Jim THOMSON

In Attendance

Jennifer Baird, Category Manager (Children, Communities & Enterprise) Jim Boyle, Chief Officer – Finance (Localities & Infrastructure) Caroline Cherry, Service Manager Adult Assessment & Partnership (Children, Communities & Enterprise) Linda Daisley, Business Improvement Team Leader (Localities & Infrastructure) Martin Dalziel, Senior Media Officer (Children, Communities & Enterprise) Anne Ferguson, Senior Manager - Economic Development and Regeneration (Children Communities & Enterprise) Michael Grassom, Social Services Manager (Children, Communities & Enterprise) Carol Hamilton, Tenants Services Manager (Children, Communities & Enterprise) Lindsey Hepburn, Waste operations Team Leader (Localities & Infrastructure) Gavin Hutton, Business Improvement & Compliance Manager (Localities & Infrastructure) Kristine Johnston, Chief Officer HR & OD (Children, Communities & Enterprise) Drew Leslie, Infrastructure Development Manager (Localities & Infrastructure) John MacMillan, Integrated Facilities Management Manager (Localities & Infrastructure) Isabel McKnight, Chief Officer – Strategic Commissioning & Customer Development (Children, Communities & Enterprise) Steven McDonald, Economic Development Team Leader (Children, Communities & Enterprise) Alan Milliken, Senior Manager Communities & People (Children, Communities & Enterprise) Stuart Oliver, Service Manager Economic Growth and Events (Children, Communities & Enterprise) Nicole Paterson, Senior Manager Environment & Place, (Localities & Infrastructure) Heather Robb, Technology & Information Manager (Localities & Infrastructure) Brian Roberts, Senior Manager Infrastructure (Localities & Infrastructure) Iain Strachan, Chief Officer – Governance (Localities & Infrastructure) Keir Stevenson, Place Development Manager (Children, Communities & Enterprise) Karen Swan, Committee Officer (Localities & Infrastructure) Jean Houston, Governance Officer (Localities & Infrastructure) (Clerk)

Also in Attendance

Blyth Deans, Audit Scotland, External Auditor Philip Monaghan and Guy Clifton, Grant Thornton

THIS ITEM RELATESTO ITEM 4ON THE AGENDA

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FE46 APOLOGIES AND SUBSTITUTIONS

Apologises were submitted on behalf of Councillor Ross Oxburgh. Councillor Bryan Flannagan was in attendance as a substitute for Councillor Oxburgh.

FE47 DECLARATIONS OF INTEREST

Councillor Jim Thomson declared an interest in agenda Item E13 (Review of Stirling Council Arms-Length Organisations and Economic Partnership Arrangements) as a Board Director.

FE48 URGENT BUSINESS

The Convener of Finance & Economy Committee noted her intention to take “Commercial Waste Transformation” as Urgent Business as it coincided with the submission and decision of the Domestic Waste report to Environment & Housing Committee. The Convener intimated her intention to alter the order of the Agenda, with Commercial Waste Transformation being taken following agenda Item 11 (Registration Policy). The items were taken in in order minutes below.

FE49 MINUTES – 15 FEBRUARY 2018

Decision The Minutes of the Meeting held on Thursday 15 February 2018 were approved as an accurate record of proceedings.

FE50 GENERAL FUND REVENUE BUDGET OUTTURN & PBB IMPLEMENTATION

2017/18

The report provided an update on the key factors impacting on the overall General Fund Revenue Budget position for 2017/18. Service budgets were projecting a net underspend of £148k, representing a favourable movement of £620k from the February report. The most significant variance continued to be within Children and Families, Clackmannanshire and Stirling Integration Joint Board (IJB) and Waste Services. Children and Families continued to report uncommitted resources relating to the transition of vulnerable children, which were partly offsetting demand pressures within the IJB from increasing client numbers in Long Term Care, Care at Home and transition cases. Waste Services were experiencing budget pressures in a number of areas. In response to Members questions, the Chief Officer – Finance confirmed that the Council were aware of the trends and rising demand pressures of an aging population that would affect the adult social care service.

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For Members’ clarification the Chief Officer – Strategic Commissioning & Customer Development confirmed a report on Care at Home would be submitted to a future Children and Young People Committee and the Adult Social Care Panel.

Decision The Finance & Economy Committee agreed: 1. note on the outturn positions for Service and Corporate areas of the budget;

2. to note the projected uncommitted General Fund reserves of £8.666M at 31

March 2018 (4.2% of General Fund budget) after taking account of all current known expenditure commitments; and

3. to approve a further transfer of £500k of uncommitted reserves into the Risk Fund.

(Reference: Report by Chief Finance Officer (Localities and Infrastructure) dated 11 April 2018, submitted)

FE51 GENERAL SERVICES CAPITAL PROGRAMME 17/18 PROGRESS REPORT

The report provided Committee with an update on the delivery of the Council’s General Service Capital Programme for 2017/18 and provided an update on individual projects. The report included the programme delivery summary, project updates and spend profiles (including projected and actual costs). The financial information provided in the report was based on a profiled position as at the end of February 2018. The projected spend for delivery to the end of February was £17.590M with an actual spend of £15.927M (90.5% spend against profiled). Following a Members’ question, the Technology & Information Manager confirmed that Stirling had been unsuccessful in the in attaining funding from the Local Full Fibre Networks programme. It had to be noted that Stirling Council had received favourable feedback and would reapply for funding. It was expected that resubmission for funding would be summer 2018. The Senior Manager Infrastructure confirmed to Members the bid that was submitted to the Scottish Rural Development Plan fund fell short of the requested amount thus the overspend for footpaths work. Details of SRDP funding to be emailed to Members of the Committee. It was also noted that a copy of the General Services Capital Final Year end out-turn position would be emailed to Members of the Committee prior to Members Briefing on 31 May 2018. Decision

The Finance & Economy Committee agreed: 1. to note the progress being made on the delivery of the 2017/18 programme;

and

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2. to note that final year-end out-turn position for the 2017/18 programme would

be reported to the June Committee. (Reference: Report by Senior Manager - Infrastructure (Localities and Infrastructure) dated 3 April 2018, submitted)

FE52 PERFORMANCE AND STRATEGIC PRIORITIES PROGRESS REPORT

The report presented the latest information on the performance indicators, and on progress in implementing the strategic priorities, overseen by the Finance and Economy Committee. Following discussion at the meeting, the Economic Development Team Leader confirmed that the Council’s performance figures for vacant retail units in comparison to the National average would be included in future Performance Reports. It was also noted that updated figures on Procurement - % Council spend with local suppliers would be circulated to Members of the Committee. Decision The Finance & Economy Committee agreed:

1. to note the performance of reported indicators (Appendix 1 – Section 1 and 2

to the submitted report); and

2. to note that the service objectives and performance indicators overseen by the Finance and Economy Committee were currently being reviewed.

(Reference: Report by Senior Manager - Economic Development and Regeneration (Children Communities & Enterprise) undated, submitted)

FE53 STIRLING TOURISM AND EVENTS DEVELOPMENT PLAN

The report presented the draft Stirling Tourism and Events Development Plan for approval by the Committee. The plan set out the actions required to help Stirling realise its aspiration for the significant growth of the tourism economy. Following discussion, Members requested that a report detailing potential future events/projects with projected costs and additional funding opportunities be submitted to the next scheduled meeting of Finance & Economy Committee. In response to a Member’s question, the Service Manager Economic Growth confirmed that a new steering group, that would be inclusive to all partners, would be established. He also noted that an indicator for measuring success would be included in future Performance and Strategic Priorities reports.

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Decision

The Finance & Economy Committee agreed:

1. to approve the Stirling Tourism and Events Development Plan (Appendix 1 to

the submitted report);

2. to receive an annual report on progress; 3. to note an allocation of £150k be put towards delivery of the plan for 2018/19

from existing budgets; 4. to approve the establishment of a new tourism steering group for the area to

support the delivery of the plan; 5. to note the recommendations that additional Council investment was required

to ensure the plan could be successfully delivered over its timeframe and agreed to consider allocation of further resources to deliver the objectives of the plan; and

6. that a report detailing potential future events/projects with projected costs and

additional funding opportunities be submitted to the next scheduled meeting of Finance & Economy Committee.

(Reference: Report by Senior Manager – Economic Development and Regeneration (Children Communities & Enterprise) dated 20 March 2018, submitted)

FE54 STIRLING CITY CENTRE – ECONOMIC ACTION PLAN 2018/19

The purpose of the report was to present Committee with the draft Stirling City Centre Economic Action Plan 2018/19 for consideration and approval. City Centres were economic assets and key drivers of economic growth across regional areas. Stirling was no different with the City Centre being the hub of economic activity with the area. The City Centre’s continuing success and growth was critical to the health of the local economy. Members discussed the report and agreed that a six monthly update would be more beneficial rather than a yearly report. Motion Councillor Neil Benny, seconded by Councillor Bryan Flannagan formally moved a Motion to take an optional appraisal on business tax rates and rents within the City Centre. Direct Negative Councillor Scott Farmer, seconded by Councillor Jim Thomson moved the Direct Negative.

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For the Motion (2) Councillor Neil Benny Councillor Bryan Flannagan Against the Motion (4) Councillor Margaret Brisley Councillor Scott Farmer Councillor Alison Laurie Councillor Jim Thomson The Motion fells by 2 votes to 4 votes. Decision The Finance & Economy Committee agreed to: 1. approve the draft Stirling City Centre Economic Action Plan 2018/19 attached

as Appendix 1 the submitted report; and

2. a progress report on the City Centre Economic Action Plan would be provided to the Finance & Economy Committee on an ongoing six monthly basis with the Stirling City Centre Forum providing regular monitoring of the actions and timescales detailed within the Plan.

(Reference: Report by Senior Manager Economic Development and Regeneration (Children, Communities and Enterprise) dated 20 March 2018, submitted)

FE55 “TOWARDS COMMERCIAL EXCELLENCE”: COMMISSIONING &

PROCUREMENT STRATEGY 2018 - 2021

Section 15 of the Procurement Reform (Scotland) Act 2014 required any public organisation which had an estimated regulated spend of £5m or more in any financial year to develop, publish and review a procurement strategy annually. The purpose of the report was to seek approval for the revised corporate procurement strategy for the period 2018 – 2021 which would enable Stirling Council to comply with mandatory requirements as laid out in the Act. The Strategy reflected the strategic priorities set out in the ‘Stirling Plan’ and lined these to a set of objectives, actions and outcomes which were achievable through the procurement & commissioning process. These reflected both the national and local policies and priorities and include our approach to Scottish Living Wage, fair trade, sustainability and corporate social responsibility. In response to Members’ questions, the Category Manager confirmed that Stirling Council aimed to be in line with the Scottish National average or exceeding it by 2021. Decision The Finance & Economy Committee agreed:

1. to approve Stirling Council’s “Towards Commercial Excellence” Procurement

& Commissioning Strategy 2018-2021; and

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2. to note that an Annual Report would be brought back to the Finance & Economy Committee in June 2018.

(Reference: Report by Chief Officer – Strategic Commissioning & Customer Development (Children, Communities & Enterprise) dated 20 March 2018, submitted)

FE56 REGISTRATION POLICY

The report outlined the Council’s approach to ensuring employees achieve and maintain appropriate professional registration either in line with statutory requirements or outlined as a requirement of the job role. It was the responsibility of an employee to ensure they maintain such registration as was necessary to enable them to practice their profession within the Council. Page 5 of Appendix 1 to the submitted report detailed roles and professional registration required. The policy sets out the procedural steps necessary to ensure the safety of our citizens, colleagues and customers through professional registration of relevant employees within Stirling Council. Following Members’ questions, the Chief Officer – Governance reasons why that the solicitors’ practicing certificate fees, which were set by the Law Society, were paid by the Local Authority. It was normal practice across all Councils and any changes could affect the Councils ability to recruit in a competitive environment. Decision The Finance & Economy Committee agreed to approve the content of the Registration Policy. (Reference: Report by Director Children, Communities and Enterprise (Children, Communities & Enterprise) undated, submitted)

At 11.50am the Council agreed to adjourn for a break to allow members to consider the Urgent Business –

Commercial Waste Transformation.

The Meeting reconvened at 12 noon with all Elected Members (previously noted) present.

FE57 COMMERCIAL WASTE TRANSFORMATION

The purpose of the report was to seek approval to establish an alternative delivery model for the Commercial Waste Service. The proposed delivery model aimed to provide a uniformed approach to commercial collections across Stirling whereby all customers would be offered increased capacity for recycling and charged a set amount for their collection service based on size of

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bin and frequency of collection. A new pricing structure would be implemented online with a full cost recovery model and will incorporate all overhead costs. The proposal had been developed in conjunction with a proposal to change the city centre residential collection model. The aim was to implement a dynamic, adaptable and sustainable commercial service that could operate concurrently and cohesively with the residential collection service. In response to Members’ questions, the Business Improvement & Compliance Manager and Waste Operations Team Leader confirmed that there would be weekly time zoned pickups. For certain customers, bins would be too big, so sacks would be allocated which would be uplifted at the same time. The new Project Officer would have further engagement with new and existing customers (rural and urban areas), along with various organisations. Members also noted that there would be a review of the Private Commercial collections time zoned uplifts to coincide with the Council’s Commercial Waste collection. Decision The Finance & Economy Committee agreed: - 1. the implementation of a collection model that mirrors the residential collection

model;

2. the new fees and charges proposed for commercial waste transformation; 3. the investment in a new 4 bin system through prudential borrowing of £188,000

whereby the loan costs would be met through the commercial waste transformation;

4. the implementation of the revised commercial collection model in conjunction with

the town centre residential uplift; and 5. the proposal to impose a specific presentation time zone for all city centre

collection. (Reference: Report by Senior Manager Environment & Place (Localities and Infrastructure) dated 17 April 2018, submitted)

The Committee resolved under Section 50A (4) of the Local Government (Scotland) Act 1973 that the public be excluded from the meeting for the following items of business on the grounds they involved the disclosure of exempt information as defined in Paragraph 8 of Part 1 of Schedule 7A of the Local Government (Scotland) Act 1973. FE58 DISPOSAL OF THE FORMER WELLGREEN CARE HOME SITE

The report sought approval from Committee to appoint a preferred bidder; and subsequently, under Delegated Authority to the Director of Localities and Infrastructure, conclude the sale of the land at the former Wellgreen Care Home, Stirling.

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Amendment (To replace the Decision in its entirety) “The Finance & Economy Committee agrees that 1. none of bids received for the sale of the former Wellgreen Care Home site

secured Best Value for the Council under the Local Government in Scotland Act 2003, and none are to be accepted;

2. the Senior Manager – Infrastructure is instructed to review options for alternative use or sale of the former Wellgreen Care home site, in consultation with Convener and Vice Convener of the Committee and the Group Leaders; and

3. the Chief Finance Officer and the Senior Manager - Infrastructure are instructed

to review the impact of the decision upon the Council’s Capital Programme for 2018/19 and report the same back to a future meeting of the Committee.

Councillor Margaret Brisley proposed and seconded by Councillor Scott Farmer.” The amendment was unanimously agreed. Decision The Finance & Economy Committee agreed that: 1. none of bids received for the sale of the former Wellgreen Care Home site

secured Best Value for the Council under the Local Government in Scotland Act 2003, and none were to be accepted;

2. the Senior Manager – Infrastructure was instructed to review options for

alternative use or sale of the former Wellgreen Care home site, in consultation with Convener and Vice Convener of the Committee and the Group Leaders; and

3. the Chief Finance Officer and the Senior Manager - Infrastructure were instructed

to review the impact of the decision upon the Council’s Capital Programme for 2018/19 and report the same back to a future meeting of the Committee.

(Reference: Report by Senior Manager - Infrastructure (Localities & Infrastructure) dated 20 March 2018, submitted) Councillor Thomson left the Council Chambers.

FE59 REVIEW OF STIRLING COUNCIL ARMS-LENGTH ORGANISATIONS AND ECONOMIC PARTNERSHIP ARRANGEMENTS

Stirling Council currently used a number of Arms-Length External Organisations (ALEOs) to deliver services with an economic development focus. In order to ensure that the outputs of these organisations remained suitably aligned to the strategic objectives of Stirling Council, and represented best value, an independent review of all economic development ALEO arrangements was underway.

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Philip Monaghan and Guy Clifton from Grant Thornton, who conducted the independent review, were in attendance at the meeting. The Committee thanked Grant Thornton for the work on the review. Decision The Finance & Economy Committee agreed: 1. to note the contents of the Review of ALEO and Economic Partnership

Arrangements Report; and

2. to delegate authority to Director of Children, Communities and Enterprise, in consultation with Chief Officer - Finance and Chief Officer - Governance, to work up detailed options for each recommendation to bring back to Finance and Economy Committee for decision, subject to decision taken at Item E14 on the agenda.

(Reference: Report by Senior Manager, Economic Development and Regeneration (Children, Communities & Enterprise) undated, submitted) Councillor Thomson returned to the Council Chambers.

FE60 NATIONAL WALLACE MONUMENT – REVIEW OF LEASE ARRANGEMENTS The report provided an update for Committee on the current lease arrangements for the National Wallace Monument and the review currently being undertaken to establish new lease arrangements from 2020. Stirling District Tourism (SDT) was an independent charity, which managed and operates the National Wallace Monument as a visitor attraction. SDT lease the Monument from the Council, including a small footprint of land around the Monument itself. The Council had responsibility for the fabric of the Monument, including its repair, maintenance, and conservation. Decision The Finance & Economy Committee agreed: 1. to note the current lease arrangements with Stirling District Tourism for the

National Wallace Monument which end in 2020;

2. to note the complex mix of land ownerships and lease arrangements within the assets which were critical for the operation of the National Wallace Monument, which were out with the Council’s direct control;

3. to agree that officers commence negotiations with Stirling District Tourism to

enter into a formal Partnership Agreement with Stirling District Tourism in respect of the operation of the National Wallace Monument, including new

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lease arrangements beyond 2020, subject to the same being reported to a future meeting of the Committee for approval; and

4. in principle, that in the event that a new lease structure was not agreed with

Stirling District Tourism for the National Wallace Monument, that the capital cost of the planned infrastructure investment by Stirling District Tourism in the monument during 2018/19, being up to £500,000, would be met by the Council, and included within the business case for the operation of the monument beyond 2020, and to delegate authority to the Director of Children, Communities & Enterprise, in consultation with the Chief Officer – Finance, the Chief Officer – Governance and the Convener and Vice Convener of Finance and Economy, to finalise and conclude the terms under which the Council would meet that cost.

(Reference: Report by Senior Manager, Infrastructure (Localities & Infrastructure) dated 3 April 2018, submitted)

The Convener closed the Meeting at 1.35pm

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Stirling Council Agenda Item No. 5

Finance and Economy Committee

Date of Meeting: 14 June 2018

Not Exempt

General Fund Revenue Budget Final Outturn 2017/18

Purpose & Summary

This report provides the final outturn position on the overall General Fund revenue budget position for 2017/18. It also asks the Finance and Economy Committee to recommend that Council approve the updating of the 2018/19 General Services Capital Programme budget to reflect additional carry forward commitments and virements.

Recommendations

Committee is asked to:

1. consider and comment on the final outturn positions for Service and Corporateareas of the budget;

2. consider and comment on the final uncommitted General Fund reserves of£9.822M at 31 March 2018 (4.7% of General Fund budget); and

3. recommend that Council approve the updating of the 2018/19 General ServicesCapital Programme budget to reflect additional carry forward commitments andvirements of £1.424M as set out in Appendix 2.

Resource Implications

This report sets out the final outturn position for the 2017/18 General Fund revenue budget and shows that Services are reporting an aggregate underspend of £1.122M, with corporate budgets reporting a net underspend position of £548k. This is after taking account of other issues affecting revenue budgets, being severance payments of £316k and the transfer of £1M to the Risk Fund.

The most significant Service budget variances are within adult social care (£321k overspend after applying cost sharing arrangements), children’s social care (£959k underspend) and waste services (£494k overspend).

The net increase in balances for the year is £1.670M, leaving year-end uncommitted balances at £9.822M, 4.7% of budget and in excess of established target levels.

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Legal & Risk Implications and Mitigation

Following consideration of the legal implications of this report, no further relevant issues have been identified.

Following consideration of the risk implications of this report, no further relevant issues have been identified.

1. Background

1.1. Service budgets are reporting a net underspend of £1.122M, representing a favourable movement of £974k from the April report.

1.2. This favourable movement arose primarily as a result of the Clackmannanshire & Stirling Integrated Joint Board (IJB) cost sharing arrangement, whereby Stirling Council received a further £491k of commissioning income from the IJB. In addition, Derek Mackay, the Cabinet Secretary for Finance and the Constitution, announced on 6 April that the Scottish Government was to make an extra £10M available to all Scottish local authorities to assist with the additional pressure on winter maintenance budgets, and repair potholes resulting from the severe winter weather. Stirling Council’s share of this funding is £247k, and both the Scottish Government and Audit Scotland have indicated they regard it as 17/18 funding.

1.3. The most significant Service budget variances are within adult social care (£321k overspend), children’s social care (£959k underspend) and waste services (£494k overspend).

1.4. Children and Families outturn takes account of uncommitted resources relating to the transition of vulnerable children. The IJB’s outturn takes account of increasing client numbers in Long Term Care, Care at Home and transition cases, offset partly by the additional commissioning income from the cost sharing arrangement. Waste Services outturn takes account of a number of pressures as outlined in paras 2.21 to 2.25.

1.5. Uncommitted General Fund reserves at the end of the financial year are £9.822M being 4.7% of General Fund budget and in excess of established target levels.

2. Considerations

2.1. Appendix 1 to this report sets out an overall summary of the final outturn position for 2017/18.

2.2. Services are reporting an aggregate underspend of £1.122M, with corporate budgets reporting a net underspend position of £548k. This is after taking account of other issues affecting revenue budgets, being severance payments of £316k and the transfer of £1M to the Risk Fund.

2.3. The following paragraphs provide an overview of the key factors which have impacted on the General Fund Revenue Budget position for the current year.

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Service Outturns

Strategic Commissioning & Customer Development

2.4. The Service is reporting an underspend of £115k due to a number of vacancies not being recruited to throughout the year. Additional income has also been generated within the Business and Finance Administration team.

Safer Connected Communities

2.5. The Service is reporting a favourable position of £113k, mainly due to an underspend in Youth Services (part of which transferred to Safer Connected Communities part way during the year). The underspend relates to reduced sessional staff costs based on previous year trends. There are also underspends within public transport due to various vacancies, including Park and Ride vacancies and Team Leader, together with a £15k underspend on supported buses.

Support for Vulnerable Children

2.6. The Children and Families Service is reporting an overall underspend of £959k.

2.7. The investment and transition of transformational change supporting vulnerable children is reflective of the existing RAG (Resource Allocation Group) costs, which had uncommitted budget of £980k. This is reflective of reduced numbers of external placements and managing to support needs within the local community and with internal resource support. There is continuing review of high cost placements and identifying children who can benefit from Includem support with focused intervention. This has already supported a number of children who were previously accommodated to return home, whilst also supporting those identified as being at risk of having to be accommodated, and thereby trying to prevent their situation deteriorating and supporting them at home.

2.8. Whilst we have seen externally supported placements reduce significantly this year, we need to ensure that their return to home care is successful and sustained. The Service has a further saving of £1.6M to achieve over the next three years in relation to Rebalancing Care for Children, whilst also supporting future recurring costs for the new Corporate Parenting Hub which had part year costs of £86k to support the refurbishment at Glasgow Road. The level of RAG costs currently reflects early achievement of PBB savings. There is continued scrutiny and robust review of all placements in order to ensure, where possible, children can be supported within their own community with localised resources.

2.9. Brucefields Residential Unit is showing a £179k overspend arising from a continued need for relief staff for more complex placements and to cover long term absences.

2.10. Children with Disabilities had an increase in income from NHS supporting complex care packages, and reduced costs, which supported an underspend of £100k.

2.11. There were other pressures across the Service including Additional Support Needs home to school transport costs, however these are being managed largely by vacancy management and delays to recruitment.

HR & OD

2.12. The service is reporting a £146k underspend, mainly due to the phasing of payments relating to the Learning Portal, staff vacancies throughout the year and the early achievement of PBB savings.

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Clackmannanshire and Stirling Integration Joint Board (IJB)

2.13. The overall outturn in those areas that are within the strategic and operational responsibility of the IJB totals a £321k overspend.

2.14. This represents the position after the receipt of a further £491k of commissioning income as a result of the Clackmannanshire & Stirling Integrated Joint Board (IJB) cost sharing arrangement. The partnership recently agreed to a cost sharing model based on voting shares. Stirling Council has 25% of the IJB voting shares and as such is liable for 25% of the total IJB final outturn position (after the utilisation of any IJB reserves).

2.15. Purchasing of Care for Clients is showing a net £1M overspend from increasing client numbers and costs in Long Term Care, Care at Home and transition cases from Children and Families and Lochview.

2.16. There has been an increase in care home placements since April 2017 from 532 to 564 in October, ending the financial year with 535 placements, this has contributed to the final overspend position. This has coincided with the introduction of the national delayed discharge target of two weeks which has led to an acceleration in assessments and people being placed in care.

2.17. There has also been an increase in Care at Home clients and hours. Since April 2017 there has been an increase of 59 service users, 1,094 care hours a week at a cost of £40,475 per week.

2.18. Adult Learning Disability and Mental Health Services incurred £710k of unbudgeted costs from 14 planned transition cases from Children and Families to Adult Assessment and Partnerships. Funding was requested at the Special Finance and Economy meeting in January 2017, however no funding was allocated to this area.

2.19. The National Records of Scotland (NRS) provide up to date information on population trends. This indicates that from 2014 to 2039 Stirling's population is projected to increase by 11%. The number of people over the age of 65 in Stirling however is expected to increase by almost a third, 32% and the over 75 age group will almost double. Understandably therefore there are very real demand pressures on adult social care services.

2.20. The above pressures are partly offset by the achievement of £104k of staff savings from vacancies within the Adult Assessment and Partnership and Housing, Augmented Care and Support. All Adult Assessment and Partnership social work teams and internal Care at Home and Day Care services have contributed to this saving through posts taking time to fill when vacated.

Waste

2.21. The Waste Service is reporting an overspend of £494k. This can be attributed largely to three main areas. Within the domestic collection service - overtime and vehicle hires, and within the Household Waste Recycle Centre (HWRC) higher disposal costs.

2.22. The overtime budget is being driven by the desire to maintain high collection rates and as a consequence, areas such as cover for staff sickness, training (including all staff doing Certificate of Professional Competence), and ensuring route completion especially during periods of winter weather. More recently, mechanical problems with some refuse vehicles has impacted on the collection service leading to further requirements for overtime to be worked.

2.23. The vehicle hire requirements have been operating at a higher level than proposed in the ADM business case. The design of collection routes, the collection frequency, and the number of properties on each route has resulted in an

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imbalance to certain routes which has required additional vehicles and operatives to be employed to ensure collections are kept on schedule. The implementation of a new glass collection frequency and timetable is aimed at reducing the pressure on some routes and thereby the requirement for additional hire vehicles to complete route collections.

2.24. The last sizeable area of overspend is the disposal costs particularly relating to the HWRC. The volume of waste deposited at the recycling centre was on a much higher scale than previous years. Enforcement action taken at other Council HWRC sites may have diverted some customers, including trade waste customers, to use the Polmaise site. Stirling has since introduced tighter monitoring of its HWRC to ensure only use by eligible customers which is anticipated to bring waste levels back in line with budget, but only from this point forward.

2.25. While the key overspend areas have been identified above, other additional spend costs include production of a new glass collection calendar, non-contract repairs to plant and equipment, the procurement of a vehicle route optimisation software and loss of income from key customers at the de-watering plant.

Roads and Land

2.26. The Roads & Land Service is reporting an overall underspend of 297k. The winter service is now reflecting a net £663k overspend after accounting for additional Scottish Government funding described in paragraph 2.27. However, the transfer of significant resources to address the severe snow incidence at the end of February resulted in a number of other infrastructure works being cancelled or postponed with a resulting underspend in materials, vehicle and equipment hires and sub-contractor costs.

2.27. In addition, the winter service overspend position takes account of the announcement by Derek Mackay, the Cabinet Secretary for Finance and the Constitution on 6 April, that the Scottish Government was to make an extra £10M available to all Scottish local authorities to assist with the additional pressure on winter maintenance budgets, and repair potholes resulting from the severe winter weather. Stirling Council’s share of this funding is £247k, and both the Scottish Government and Audit Scotland have indicated they regard it as 17/18 funding.

Information Technology

2.28. Information Technology is reporting an overspend of £77k. This is primarily attributable to the timing of the CityFibre initiative which has been delivered quicker than anticipated, enabling full costs to be attributed to 2017/18 accounts.

Priority Based Budgeting (PBB) Options

2.29. The General Fund Revenue Budget for 2017/18 was approved with a large number of PBB options contributing to the spending reductions necessary to meet the available resources. Since the beginning of the financial year, work has been ongoing to track these options to ensure that the actions required to capture the savings are being put in place, and budgets adjusted accordingly.

2.30. In total, 33 options were expected to contribute towards the 2017/18 in-year savings target of £6.898M. Of these, only one option has not achieved its full in-year savings target - SOC002C: Review Commissioning Activity. The savings target for this project is £118k, however only £25k has been achieved in 2017/18, and a further saving of £25k will be made in 2018/19. This option will be closed and an alternative savings proposal will be identified for the remaining balance of £68k.

17

General Services Capital

2.31. The General Fund Capital Programme reported expenditure of £19.602M against a full year budget of £25.580M representing slippage of £5.978M. The most significant capital projects undertaken during the year included the Gigabit High Speed Network Fibre across the City Centre, completion of the Sports Village National Curling Academy, Balvalachan Cemetery, Roads Improvements, Energy Efficient Street Lighting, completion of St Ninians Nursery and commencement of Strathyre Primary School refurbishment.

2.32. £2.392M of the £5.978M slippage was previously approved by Council in the Proposed General Services Capital Programme 2018/19 to 2021/22, presented at the Special Council Meeting on 22 February 2018.

2.33. Finance and Economy Committee is asked to recommend that Council approve the updating of the 2018/19 General Services Capital Programme budget to reflect additional carry forward commitments and virements of £1.424M as set out in Appendix 2. The balance of £2.162M relates to developers’ contributions received but not yet spent.

Corporate Outturns

2.34. Valuation Joint Board - Following agreement of the Joint Board’s 2017/18 budget, Stirling Council’s actual requisition payments due to the Joint Board are £56k less than the original estimate.

2.35. Pension Fund Compensatory Added Years Costs - Costs are £52k lower than budget as a result of fewer voluntary severances in the current year than were originally anticipated.

2.36. Loan Charges - Savings from loan charges are £800k. The outturn position reflects the short-term advantage gained from the current Treasury Management Strategy of delaying new long-term borrowing. The Council's capital borrowing need has not been fully funded from loan debt, as cash supporting the Council's reserves, balances and cash flow (influenced further by the phasing of capital expenditure) is being used as a temporary funding measure. This is being supplemented by a level of temporary borrowing which has been readily available within the financial markets and at comparatively lower rates than Public Works Loan Board (PWLB) new loan rates.

2.37. General Revenue Grant & Rates Income - General revenue grant has increased by £48k as a result of some minor grant redeterminations, together with receipt of £119k from the Non Domestic Rates Business Rates Incentivisation Scheme. The Scheme permits the authority to retain half of the Non Domestic Rates income which exceeds the annual income target set by the Scottish Government.

2.38. Council Tax Income - The impact of new properties and continuing high collection rates means that Council Tax income exceeds budget by £206k.

2.39. Severance/PBB Implementation Costs - The cost of implementing the budget transformation programme this year is £316k, representing a saving of £386k against the existing budget for severances, as approved at PBB1 and PBB2.

18

2.40. Risk Fund - The Council in February 2017 approved a recommendation from the Finance & Economy Committee that a sum should be transferred from the Risk Fund to support social care spend to save work that would be aimed at alleviating some of the pressures. The sum approved for transfer was £1.8M. Given that decision, the Risk Fund was depleted of resources, and the Finance & Economy Committee meeting (21 September 2017) agreed that some of the uncommitted General Fund reserves be earmarked as funding to start to re-build the Risk Fund. An initial sum of £500k had been earmarked for transfer to the Risk Fund, and the previous Finance & Economy Committee meeting (19 April 2018) agreed that a further £500k be earmarked resulting in a total transfer to the Risk Fund in the current year of £1M.

3. Implications

Equalities Impact

3.1. The contents of this report were assessed using the EqIA Relevance Assessment Form. It was determined that an Equality Impact Assessment was not required as the report is a technical report to monitor expenditure on the overall General Fund revenue account and does not have any implications on current policies or service delivery.

Sustainability and Environmental

3.2. There is no direct sustainability impact as a result of this report.

3.3. There is no impact on the Council’s duty relating to climate change.

Other Policy Implications

3.4. Following consideration of the policy implications of this report, no relevant issues have been identified.

Consultations

3.5. The report is based on information provided by all Services.

4. Background Papers

4.1. EqIA Relevance check.

4.2. Stirling Council, 23 February 2017: Revenue Budget & Determination of Council Tax 2017/18.

4.3. Finance and Economy Committee, 19 April 2018: General Fund Revenue Budget Outturn and PBB Implementation 2017/18.

5. Appendices

5.1. Appendix 1 - General Fund Revenue Budget Outturn Position 2017/18.

5.2. Appendix 2 - General Services Capital Programme 2018/19 Additional Slippage.

19

Author of Report:

George Murphy Accounting Operations Manager

Contact Details:

[email protected] 01786 233356

Approved by:

Jim Boyle, Chief Finance Officer

Date: 5 June 2018

Signature:

Details of Convener(s), Vice Convener(s), Portfolio Holder and Depute Portfolio Holder consulted on this report:

Cllr Margaret Brisley

Cllr Alison Laurie

Wards affected: None.

Key Priorities N/A

Key Priority Considerations: N/A

Stirling Plan Priority Outcomes: (Local Outcomes Improvement Plan)

N/A

20

Appendix 1

Projected Final Final

Revised Outturn Outturn Final Variance

Budget 19 Apr 14 June Variance as % of

£000 £000 £000 £000 Budget

*( ) = *( ) =

U'spend Fav.

Chief ExecutiveChief Executive - Other 747 747 747 0 0.0%

Locality Leaders 0 0 0 0 n/a

Chief Executive Total 747 747 747 0 0.0%

Children, Communities and Enterprise

Management and Support 551 543 551 0 0.0%



Regeneration and Wellbeing 6,507 6,506 6,470 (37) (0.6%)

Economic Growth 1,598 1,595 1,602 4 0.3%

Economic Development and Regeneration 8,158 8,169 8,145 (13) (0.2%)

Customer Hub 719 681 655 (64) (8.9%)

Strategic Commissioning 1,678 1,652 1,627 (51) (3.0%)

Corporate Complaints 91 79 91 0 0.0%

Strategic Commissioning & Customer Development 2,488 2,412 2,373 (115) (11.9%)

Safer, Connected Communities 3,234 3,163 3,121 (113) (3.5%)

Communities and People Management 116 135 136 20 17.2%

Adult Assessment 207 133 138 (69) (33.3%)

Housing, Augmented Care and Support 2,389 2,373 2,317 (72) (3.0%)

Business Improvement and Customers 75 166 158 83 110.7%

Communities and People 6,021 5,970 5,870 (151) (2.5%)

Management and Support 132 124 124 (8) (6.1%)

Early Years and Early Intervention 7,866 7,798 7,803 (63) (0.8%)

Attainment 0 0 0 0 0.0%

Broad General Education (3-15) 27,795 27,807 27,898 103 0.4%

Skills and Youth Development (15+) 39,608 39,604 39,555 (53) (0.1%)

Schools, Learning and Education 75,401 75,333 75,380 (21) (0.0%)


Additional Support Needs, Health and Wellbeing 10,875 10,268 10,238 (637) (5.9%)

Children's Fieldwork 2,621 2,576 2,569 (52) (2.0%)

Vulnerable Children 7,575 7,468 7,356 (219) (2.9%)

Children and Families 21,894 21,106 20,935 (959) (4.4%)

Communications, Events and Public Affairs 445 425 407 (38) (8.5%)

Human Resources and Organisational Development 2,164 2,094 2,018 (146) (6.7%)

Children, Communities and Enterprise Total 117,122 116,052 115,679 (1,443) (1.2%)

Clackmannanshire and Stirling Integration Joint Board

Adult Assessment and Partnerships 25,447 26,206 25,941 494 1.9%

Housing, Augmented Care and Support 5,058 4,967 4,884 (174) (3.4%)

Safer, Connected Communities 121 120 122 1 0.8%

Clackmannanshire & Stirling Integration Joint Board Total 30,626 31,293 30,947 321 1.0%

General Fund Revenue BudgetFinal Outturn Position 2017/18

21

Appendix 1

Projected Final Final

Revised Outturn Outturn Final Variance

Budget 19 Apr 14 June Variance as % of

£000 £000 £000 £000 Budget

*( ) = *( ) =

U'spend Fav.

Localities and Infrastructure



Waste 6,939 7,406 7,433 494 7.1%

Roads and Land 8,958 8,925 8,661 (297) (3.3%)

Integrated Facilities Management 4,704 4,539 4,550 (154) (3.3%)

Improvement and Compliance 1,025 999 992 (33) (3.2%)

Environment and Place 21,626 21,869 21,636 10 0.0%

Infrastructure Delivery 8,826 8,840 8,845 19 0.2%

Planning and Building Standards 758 834 843 85 11.2%

Regulation 1,016 918 922 (94) (9.3%)

Sustainability 708 714 699 (9) (1.3%)

Infrastructure 11,308 11,306 11,309 1 0.0%

Governance 1,510 1,511 1,510 0 0.0%

Finance 2,944 2,878 2,880 (64) (2.2%)

Technology & Information 2,680 2,770 2,757 77 2.9%

Localities and Infrastructure Total 40,644 40,899 40,644 0 0.0%

Cost of Services 189,139 188,991 188,017 (1,122) (0.6%)

Corporate BudgetsValuation Joint Board 925 869 869 (56) (6.1%)

Pension Fund Compensatory Added Years Costs 1,938 1,886 1,886 (52) (2.7%)

Loans Charges 14,189 13,389 13,389 (800) (5.6%)Corporate Budgets Total 17,052 16,144 16,144 (908) (5.3%)

Financing IncomeGeneral Revenue Grant & Rates Income (161,485) (161,441) (161,533) (48) 0.0%

Council Tax Income (45,408) (45,608) (45,614) (206) 0.5%Financing Income Total (206,893) (207,049) (207,147) (254) 0.1%

Net (Surplus)/Deficit for Year (702) (1,914) (2,986) (2,284) 325.4%

Other Issues Affecting Revenue BudgetsSeverance / PBB Implementation Costs 702 400 316 (386) (55.0%)

Risk Fund Transfer 0 1,000 1,000 1,000 n/a

Uncommitted Balances 31 March 2017 (8,152) (8,152) (8,152) 0 0.0%

Uncommitted Balances 31 March 2018 (8,152) (8,666) (9,822) (1,670) 20.5%

Uncommitted Balances as a % of 2017/18 Revenue Budget 4.2% 4.7%

General Fund Revenue BudgetFinal Outturn Position 2017/18

22

Appendix 2

Approved Programme Additionalincl. Carry Forward Carry Forward Revised

SC 22/02/18 to be approved Budget

2018/19 2018/19 2018/19Capital Spending Allocation £ £ £

GENERAL SERVICES CAPITAL PROGRAMME 2018/19

Note Investing in the Stirling Economy1 Implementation of City Region Deal Projects 2,683,652 109,297 2,792,9492 Smart Cities Infrastructure 150,000 (3,687) 146,313

2,833,652 105,609 2,939,261

Note Investing in Internet Connectivity & Digital Transformation3 Rural Broadband Infrastructure Projects 300,000 37,993 337,9934 Social Care infrastructure to support Digital Transformation 150,000 0 150,0005 Education IT infrastructure to support Digital Transformation 300,000 0 300,0006 IT infrastructure to support Digital Transformation across the Council 250,000 0 250,000

1,000,000 37,993 1,037,993

Note Investing in SportSports Village - Disabled Access & Facilities and Masterplan Development 70,000 0 70,000Community Sport Infrastructure - St Modans 3G pitch 200,000 (9,232) 190,768

270,000 (9,232) 260,768

Note Investing in Community Facilities7 Upgrade and renovation of community facilities 100,000 22,854 122,854

Public Transport Infrastructure Improvements 50,000 54 50,0548 Infrastructure to support enforcement 50,000 24,896 74,8969 Parks Masterplan Investment Fund 50,000 11,851 61,851

Mugdock Country Park 50,000 0 50,00010 Investment in Parks & Play Equipment 210,000 37,168 247,168

Improved Disabled Changing Facilities 60,000 0 60,000Events Infrastructure in Culture Facilities 40,000 0 40,000Replacement of Mobile Library vehicles 240,000 0 240,000

850,000 96,823 946,823

Note Investing in Roads & Infrastructure11 Flood Scheme Investment Fund 1,100,000 (39,543) 1,060,457

Aberfoyle Flood Scheme Investment 600,000 (60,763) 539,237Bridge Infrastructure Improvements 400,000 76,398 476,398City Transport Infrastructure 100,000 0 100,000Speed Activated Signage and Active Travel Plans 200,000 68,106 268,106Replacement of Kerse Road Bridge - contribution to Network Rail Project 718,000 282,000 1,000,000

12 Road Infrastructure Modernisation and Improvement Fund 4,500,000 149,983 4,649,983Forthside Public Realm 221,000 15,971 236,971

7,839,000 492,152 8,331,152

Note Investing in Education13 School Facility Investment 750,000 0 750,000

St Ninians Primary School 68,000 481 68,481Strathyre Primary School Refurbishment 1,404,000 (22,179) 1,381,821Future School Investment 100,000 0 100,000CCTV in Schools 113,000 0 113,000Early Years Investment *Indicative Only* 2,838,000 3,812 2,841,812

5,273,000 (17,886) 5,255,114

Note Investing in Social CareCare Village Funding Requirement 750,000 0 750,000Housing Care & Repair Grants 74,000 0 74,000Private Sector Housing Disabled Adaptation Grants 400,000 55,000 455,000Telecare Equipment Purchase 130,000 88,740 218,740

1,354,000 143,740 1,497,740

Total Core Programme 19,419,652 849,199 20,268,851

Note Existing PBB Option Funding RequirementsCommunity and Customer Access Hub 700,000 15,000 715,000ICT Investment 164,000 14,435 178,435

864,000 29,435 893,435

Note Prudential Borrowing Specific ProjectsSpringkerse District Heating System 1,000,000 0 1,000,000Depot Rationalisation Project (Part of PBB CORP003) 2,461,851 0 2,461,851Low Energy Street Lighting Investment 2,530,931 (31,534) 2,499,397

5,992,782 (31,534) 5,961,248

Note NEW PBB 5 Option Funding Requirements

23

Appendix 2

Approved Programme Additionalincl. Carry Forward Carry Forward Revised

SC 22/02/18 to be approved Budget

2018/19 2018/19 2018/19Capital Spending Allocation £ £ £

GENERAL SERVICES CAPITAL PROGRAMME 2018/19

E033 Wellgreen Multi Storey Car Park 150,000 0 150,000IG013 Advertise revenue generation from Council assets 21,000 0 21,000IG014 Lower Polmaise expansion project 20,000 0 20,000

191,000 0 191,000

TOTAL CAPITAL PROGRAMME 26,467,434 847,100 27,314,534

Other Carry Forwards

Contingencies 0 156,668 156,668Major Infrastructure Project Fund - Wallace St Junction 0 83,350 83,350Brucefields Facility Improvements 0 21,095 21,095Integrated Land, Roads & Waste VPE 0 160,437 160,437Pool Cars 0 44,039 44,039Social Care Vehicles 0 11,465 11,465HQ Office Rationalisation 0 60,326 60,326Cowie Regeneration & Safer Routes to School extension & expansion 0 10,121 10,121Additional CCTV 0 29,692 29,692

0 577,193 577,193

GRAND TOTAL 26,467,434 1,424,293 27,891,727

24




Not Exempt

General Services Capital Programme 2018/19 Progress Report

Purpose & Summary

The purpose of this report is to provide committee with an update on the delivery of the capital programme for 2018/19. The paper also aims to increase the governance, scrutiny and visibility of the programme to elected members, and to improve the implementation of the programme. Committee are asked to consider and note the progress of the projects across the capital programme.

Recommendations

Committee is asked:

1. to note the progress being made on the delivery of the 2018/19 programme


Any additional temporary resources required to support and deliver specific projects within the programme will be accommodated within the allocated project cost.


Capital Programme risks are documented on Project Risk Registers managed by Officers at individual project/programme level on an ongoing basis. Issues and risks are escalated to Capital Delivery Group and Committees as appropriate.

1. Background

1.1. The General Services Core Capital Programme delivers significant investment in Stirling’s infrastructure, enabling key projects which are required to support economic growth, support and develop our communities and improve the services which the Council deliver.

25

1.2. The allocated budget for 2018/19 is £27.845m. This is based on the original budget set in February and amended to reflect finalised carry forward from 2017/18 and external grant awards as reported at the April committee.

1.3. This paper provides elected members with an update on the delivery of the 2018/19 Capital Programme as contained within the appendices.

2. Considerations

2.1. The delivery of the 2018/19 Capital programme is progressing well with overall implementation progressing in line with project delivery programme and profiled budget spend. The financial information provided in this report is based on a profiled position as at the end of April 2018 (£27.845M), with spend of £698K at the end of April (105.73% against profile).

2.2. There is only one project classified as “amber” for delivery (Strathyre Primary School) and there are no projects classified as “red”.

2.3. Work is currently underway to refurbish and extend Strathyre Primary School. These works were originally programmed to be completed by 10 August 2018 and pupils were expected to move into the new school building in time for the start of the 2018/19 academic year. Unfortunately, due to delays caused both by the severe winter weather and construction issues, the anticipated completion date is now 24 September 2018.

2.4. To allow a seamless transition, the school community will move back into their newly refurbished and extended school during the October 2018 school holidays. Parents and pupils have been informed of the delay to the works and amended opening date of the school, and officers will continue to liaise with the school and parent council throughout the remainder of the project.

2.5. Scottish Government has now confirmed a capital grant allocation of £7m for implementation of the 1140 early years expansion strategy over the next three years. This is £900k less than the total capital requirement that was identified on the financial templates submitted in March 2018. Officers are now reviewing the impact of this shortfall on the proposed delivery plans with further scoping, design and costing ongoing. There will be a range of new build, refurbishment and remodelling projects and further information on plans will be reported to the Children and Young People Committee in August 2018.

2.6. The budget monitoring figures are currently being reported at the previous resource level for 2018/19 until the revised scope of works and profile for this year has been agreed by committee in August. Thereafter the budget will be adjusted accordingly and reported back to the next meeting of the Finance and Economy Committee. The budget is provided from Scottish Government on a grant claim basis.

2.7. An elected members briefing was held on Thursday 31 May. This provided elected members with an overview of the projects that are being delivered across the capital programme and the opportunity to ask questions of officers who are leading on the delivery of these projects. Another session will be arranged for January 2019 to update members on progress across the capital programme.

26

3. Implications

Equalities Impact

3.1. The contents of this report were assessed under the Council’s Equality Impact Assessment process. It was determined that an Equality Impact Assessment was not required as this report is technical and has no impact on groups or communities.


3.2. This report relates to a Plan and it was determined that a full strategic Environmental Assessment was not required.


3.3. The revised capital programme will help the Council to continue to meet its statutory obligations in relation to the delivery of services, at a time when financial resources are much constrained. The programme will continue to be reviewed on an annual basis, and in respect of individual projects, to ensure it continues to meet the Council’s changing policy aims and objectives.

Consultations

3.4. This report has been prepared in consultation with services involved in the delivery of the capital programme.


4.1. EqIA Relevance Check.

4.2. General Services Capital Programme 2017/18 Progress Update - Finance and Economy Committee April 2018.

4.3. General Services Capital Programme 2018/19 to 2021/22 – Stirling Council – 23 February 2018.

5. Appendices

5.1. Appendix 1 - Programme Summary.

5.2. Appendix 2 - Programme spend profiles.

5.3. Appendix 3 - Project updates.

27

Author of Report:

Nicole Lochhead Management Graduate

Contact Details:


Approved by:

Brian Roberts Senior Manager Infrastructure

Date: 6 June 2018

Signature:


Councillor Margaret Brisley & Councillor Alison Laurie

Wards affected:

Key Priorities: E - We will create & implement environment and infrastructure improvements; deliver new ownership & delivery methods around energy generation, public transport & internet access, ensuring profits & services work to community, not commercial priorities

Key Priority Considerations:

Stirling Plan Priority Outcomes: Prosperous - People are part of a prosperous economy that promotes inclusive growth opportunities across our communities

28

Projected Spend Actual Spend

(end Apr 18) (end Apr 18)

Investing in the Stirling EconomyCity Region Deal Green £2,792,949 £56,987 £46,252 £2,873,412

City Park K Stevenson Green £240,000 £0 £0 £164,000

Digital District D Leslie Green £422,728 £47,987 £43,187 £422,728

Kildean Business Park Infrastructure B Roberts Green £533,000 £0 £0 £533,000

Mercat Cross & City Centre Projects L Gallagher Green £300,000 £9,000 £0 £200,000

River Project D Hopper Green £410,418 £0 £0 £563,280

Harbour Quarter D Leslie Green £600,000 £0 £0 £600,000

Rural Projects S Oliver Green £286,803 £0 £3,065 £390,404

Smart Cities Infrastructure D Hopper Green £146,313 £0 £0 £146,313

Investing in Internet Connectivity & Digital TransformationRural Broadband Infrastructure Projects D Baill ie Green £337,993 £0 £35,071 £74,000

Social Care infrastructure to support Digital Transformation H Robb Green £150,000 £0 £0 £150,000

Education IT infrastructure to support Digital Transformation H Robb Green £300,000 £0 £0 £300,000IT infrastructure to support Digital Transformation across the Council H Robb Green £250,000 £0 £0 £250,000

Investing in SportSports Village Disabled Access & Facilities & Masterplan Development G Donald / T Mills Green £70,000 £0 £0 £70,000

Community Sport Infrastructure - St Modan's 3G Pitch G Donald Green £190,768 £0 £0 £167,000

Investing in Community FacilitiesUpgrade and renovation of community facil ities T Mills Green £122,854 £0 £313 £122,854

Public Transport Infrastructure Improvement R Plewes Green £50,054 £0 £0 £50,054

Infrastructure to support Enforcement M Wallace Green £74,896 £0 £0 £50,000

Parks Masterplan Implementation Fund D Crighton Green £61,851 £0 £0 £61,851

Mugdock Country Park D Crighton Green £50,000 £0 £0 £50,000

Investment in Parks & Play Equipment D Crighton Green £247,818 £650 £7,885 £247,818

Improved Disabled Changing Facilities E Leaker Green £60,000 £0 £0 £60,000

Events Infrastructure in Culture Facilities S Oliver Green £40,000 £0 £0 £40,000Replacement of Mobile Library vehicles L Gallagher Green £240,000 £0 £0 £0

Project

Capital Programme Summary as at End of April 2018

Project Lead Budget Year End ProjectionStatus

Appendix 129

Investing in Roads and InfrastructureFlood Scheme Investment Fund M Lucey Green £1,060,457 £0 £5,184 £1,105,184

Flood Scheme Aberfoyle M Lucey Green £539,237 £0 £0 £600,000

Bridge Infrastructure Improvements M Lucey Green £476,398 £0 £5,411 £405,411

City Transport Infrastructure EV Charging J McPhee Green £100,000 £0 £0 £100,000

Speed Activated Signage & Active Travel Plans D Crighton Green £268,106 £0 £474 £268,106

Kerse Road Bridge - Contribution to Network Rail Project B Roberts Green £1,000,000 £0 £59,870 £1,000,000

Road Infrastructure Modernisation and ImprovementsK Sneden / D

CrightonGreen

£4,649,983 £113,116 £112,072 £4,499,698

Forthside Public Realm WorksB Roberts / D

Crighton Green£236,971 £0 £0 £236,971

Investing in EducationSchool Facility Investment G Donald Green £953,000 £6,334 £6,334 £953,000

St Ninians PS G Donald Green £68,481 £0 £0 £68,481

Strathyre Primary School G Donald Amber £1,381,821 £6,964 £6,964 £1,381,821

Future School Investment G Donald Green £100,000 £250 £0 £100,000ELC 1140 allocations G Donald Green £2,531,812 £5,000 £0 £2,531,812

Investing in Social CareCare Village Funding Requirement J Boyle Green £750,000 £0 £0 £750,000

Private Sector Housing Disabled Adaptation Grants J MacMillan Green £455,000 £33,370 £33,370 £455,000

Housing Care & Repair Grants J MacMillan Green £74,000 £6,130 £6,130 £74,000

Telecare Equipment Purchase J MacMillan Green £218,740 £14,414 £46,493 £175,629

PBB Option Funding RequirementsCommunity & Customer Access Hub C Herity Green £715,000 £0 £0 £715,000

ICT Investment H Robb Green £178,435 £10,000 £10,769 £191,426

E033 Wellgreen Multi Storey Car Park G Lawrie Green £150,000 £0 £0 £150,000

IG013 Advertise revenue generation from Council Assets B Roberts Green £21,000 £0 £0 £21,000IG014 Lower Polmaise expansion project B Roberts Green £20,000 £0 £0 £20,000

30

Prudential Borrowing Specific Projects

Springkerse District Heating System B Roberts Green £1,000,000 £0 £0 £1,000,000

Depot Rationalisation Project (Part of PBB CORP003) D Leslie Green £2,461,851 £8,500 £4,800 £2,500,000

Low Energy Street Lighting Investment C Gardner Green £2,499,397 £190,000 £110,458 £2,559,885

External Finance ProjectsCowie Regeneration & Safer Routes to School extension & expansion C Brown Green £388,775 £120,493 £120,493 £388,775

Programme £27,483,960 £572,208 £618,342 £26,964,501

Other Project Slippage from 2017/18 & CFCR

Additional funding for CCTV Provision L MacGill ivray Green £29,692 £0 £0 £29,692

Major Infrastructure - Wallace Street Junction C Brown Green £83,350 £77,214 £68,879 £98,000

ICT Education - Service CFCR H Robb Green £10,800 £10,800 £10,800 £10,800

Brucefields Facility Improvements G Donald £21,095 £0 £0 £0

ICT Server Replacement - Service CFCR H Robb Green £0 £0 £0 £0

Contingencies B Roberts £156,668 £0 £0 £0

HQ Office Rationalisation B Roberts £60,326 £0 £0 £60,326

Total Carry Forwards & Others £361,931 £88,014 £79,679 £198,818

£27,845,891 £660,222 £698,021 £27,163,319

Total Programmes Year to Date Expenditure as percentage of Profiled Expenditure to Date 105.73%

31

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13

General Capital Programme Cumulative Annual Profile (£27.846M)

Total Expenditure Profile ‐ Cumulative TOTAL Expenditure Cumulative

Spend at end of AprilProfiled: £660,222Actual: £698,021

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

1 2 3 4 5 6 7 8 9 10 11 12

Investing In Stirling Economy (£2.939M) Cumulative Annual Profile


Spend at end of AprilProfiled: £56,987Actual: £46,252

Projected Year End Spend:£3,019,725

Projected Year End Spend

£27,163,319

Appendix 233

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1 2 3 4 5 6 7 8 9 10 11 12

Investing In Internet Connectivity (£1.038M)Cumulative Annual Profile


Projected Year End Spend:£774,000

0

50,000

100,000

150,000

200,000

250,000

1 2 3 4 5 6 7 8 9 10 11 12

Investing In Sport (£260K) Cumulative Annual Profile


Spend at end of April:Profiled: £0Actual: £0

Spend at end of April Profiled: £0

Actual: £35,071

Projected Year End Spend: £237,000

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0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

1 2 3 4 5 6 7 8 9 10 11 12

Investing In Community Facilities (£947K) Cumulative Annual Profile


Spend at end of AprilProfiled: £650Actual: £8,198

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

1 2 3 4 5 6 7 8 9 10 11 12

Investing In Roads & Infrastructure (£8.331M)Cumulative Annual Profile



Spend at end of April Profiled: £113,116 Actual: £183,011

Projected Year End Spend: £8,215,370

35

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

1 2 3 4 5 6 7 8 9 10 11 12

Investing In Education (£5.035M) Cumulative Annual Profile


0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1 2 3 4 5 6 7 8 9 10 11 12

Investing In Social Care (£1.497M)Cumulative Annual Profile






36

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1 2 3 4 5 6 7 8 9 10 11 12

PBB Projects (£1.084M)Cumulative Annual Profile


0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

1 2 3 4 5 6 7 8 9 10 11 12

Prudential Borrowing Specific Projects (£5.961M)Cumulative Annual Profile


Projected Year End Spend:£6,059,885




37

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

1 2 3 4 5 6 7 8 9 10 11 12

Sustrans Funded Projects (£388K) Cumulative Annual Profile

Total Expenditure Profile ‐ Cumulative Actual Ledger Expenditure ‐ Cumulative

0

50,000

100,000

150,000

200,000

250,000

1 2 3 4 5 6 7 8 9 10 11 12

Other Projects carried forward from 2017/18 and CFCR (£361K)Cumulative Annual Profile

Total Expenditure Profile ‐ Cumulative


Projected Year End: £388,775



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APPENDIX 3 – CAPITAL PROGRAMME 2018/19 - PROJECT UPDATES

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1. INVESTING IN THE STIRLING ECONOMY

CITY REGION DEAL (PROJECT STATUS: GREEN)

CITY PARK PROJECTS (PROJECT STATUS: GREEN)

Kings Park and Back Walk Path Improvements

1.1. The enhancement of recreational access routes around Kings Park and Back Walk Path had been identified as priority within the City Park project for this year. The year £90K has been allocated for a section of path from the Golf Club to Victoria Place. This builds on previous works in the last 2 years to improve the lower and upper Kings Park paths, the reconstruction of the steps to the upper path and resurfacing of a section of the Balk Walk to improve public access. The previous works were supported by a successful bid to the Scottish Rural Development Programme (SRDP) funding has provided an additional £105,822 to improve the upper path network in Kings Park in support of the above works in conjunction with £18,624 provided by Clackmannan & Stirling Environment Trust (CSET) as contribution towards the link staircase. Works also include the improvements to access gates and restore sections of the listed Kings Park wall. Kings Park Pavilion

1.2. The investment of £75,000 in the King’s Park Tennis Pavilion is carried forward from 2017/18. The capital investment will be paid once the tenant has completed the building upgrade to an agreed scope of works that maintains the original character and features and addresses priority building fabric elements. The tenant has obtained the necessary consents and is currently mobilising the works. It is anticipated that the work will be completed during the summer with payment made thereafter. Design & Infrastructure

1.3. This will look to develop the needs of the open space located at Falleninch Field and its surrounds to accommodate aspirations to facilitate a growing events programme at this unique location. This allocation will enable the design and construction of the required supporting infrastructure that will meet promotors and event organiser’s needs. This will include issues such as access to and from the site, accessibility across the site and other considerations raised via discussions with stakeholders.

DIGITAL DISTRICT (PROJECT STATUS: GREEN)

1.4. During 2018/19, a third phase of works to the Digital Hub within the Municipal Buildings will

be progressed. The works, with a budget of £150k, will include the installation of a new lift to improve accessibility to the 60s wing. Other works, prioritised in conjunction with Codebase, will see remodelling to further improve the environment and create additional lettable spaces.

1.5. The external fabric works at Wolfcraig are nearing completion. Urgent fabric deficiencies,

including rot and H & S issues are being addressed as well as measures to improve ventilation for building occupiers through refurbishment of windows. Works should be completed in late May.

KILDEAN (PROJECT STATUS: GREEN)

1.6. This project will contribute to the implementation of the enabling infrastructure for Kildean.

This will be delivered through the Stirling Development Agency and will be completed over financial years 2018/19 & 2019/20 to unlock critical business space within Kildean and attract inward investment and employment.

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MERCAT CROSS REGENERATION (PROJECT STATUS: GREEN)

1.7. There are two separate schemes being progressed through this budget. The first is feature lighting within Baker Street Gardens along with the provision of power points to allow the area to be utilised as an events space. The layout of the lighting has been agreed with the community and the electrical design is now progressing. Once that is complete we will appoint a contractor and anticipate the scheme being complete by July 2018.

1.8. The second scheme is opening up the public right of way between Princes Street and Darnley Street. The scheme involves upgrading the lighting and making improvements to the landscaping. This scheme is being split into work packages with each in the process of being designed and quantified to allow them to be issued for Construction.

RIVER PROJECT

Old Harbour Wall

1.9. Harbour Repair – A section of the original old harbour wall at Shore Road failed, causing the wall to collapse and subsidence of the adjacent ground. In order to reinstate the picnic area, improve safety and reduce further deterioration, stabilisation of the harbour wall was necessary.

1.10. £169k has been spent. The final £11k is allocated for restoration works once the pontoon installation has been completed. As the pontoon project has been delayed this final spend will not now be possible during 2017/18. We have planned this spend for September 2018. Other River Projects

1.11. The Stirling River Park Draft masterplan – Detailed design of the Cambuskenneth Loop, Borrowmeadow Loop, Kildean Loop and Carse of Lecropt areas of the Stirling River Park. These sections are unaffected by the proposed Flood Alleviation Scheme.

1.12. Design competition for the Harbour Bridge and Borrowmeadow Bridge that form a key part of the Stirling River Park, creating greater access and connectivity in the heart of the Park.

1.13. Design and deliver the Cambuskenneth Community Zone, including community engagement in all elements.

1.14. Design and deliver disabled parking and drop off point at Stirling Old Harbour to give better access to the Riverside pontoon

HARBOUR QUARTER

1.15. Work is continuing on the development of the Public Sector Innovation Hub proposal. A Design Team is developing the shape and form of the building and Infrastructure Delivery continue to work with Service teams to confirm staffing numbers and accommodation requirements. This work will continue to inform and enable the development of the Outline Business Case for consideration later this year.

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RURAL DEVELOPMENT

Business Hubs

1.16. A Hub in Aberfoyle is now open and two others are progressing in Drymen and Balfron. Three additional hubs are intended in 18/19.Officers are working with each community and local industry to develop a sustainable delivery plan and operating mode for all hubs.

Food and Drink Production Facility

1.17. Officers are currently working with communities to identify locations where food and drink production facilities could be delivered to support growth of rural producers. No decision on the locations/facilities has been taken yet, as discussions are ongoing with a number of communities. Callander Development

1.18. The spend of the budget for this project is to help support development of infrastructure

plans for the area to unlock a major development site.

1.19. Currently waiting on the conclusion of City Deal Negotiations to develop a delivery plan and procurement routes.. Visitor Infrastructure

1.20. The project is set up to support the rural tourism economy in Stirling. The allocation of the budget has been earmarked to support those projects that apply to the Rural Tourism Infrastructure Fund.

1.21. Excepting a decision by the End of May whether or not applications are to proceed to the next stage

SMART CITIES PROGRAMME (Project Status: GREEN)

Smart Mobility: 1.22. Tender evaluations are complete and we have had our start up meeting discussing exact

locations and spec of the equipment and installation. The installation is expected to be in June/July, which is when the majority of spend will go through. Columns will be installed by the in house signage team to house the journey time monitoring equipment, which are also scheduled to be installed June/July.

Open Data: 1.23. This project is part of a Scottish Cities Alliance project and is the only one of the Smart Cities

projects to involve all 7 Scottish Cities. It is jointly funded by Stirling Council and ERDF.

1.24. The Open Data Platform will be available from Autumn 2018 and will contain data from Stirling Council and other partner organisations. This will support the work of our Technology and Digital Strategies, Digital Blueprint and our Smart Cities work streams as well as providing valuable data sets to help us to work more closely with our communities.

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2 INVESTING IN INTERNET CONNECTIVITY

RURAL BROADBAND PROJECT STATUS: Green 2.1 Balquhidder Community Broadband project continues to progress with 12 full connections.

The Council remain committed to supporting the project over the next year up to de-minimus levels.

2.2 The Council / LEADER , have recruited a Broadband Project Officer to help with the current work load and put a permanent focus on delivery to rural areas.

2.3 Brig O’Turk Community Broadband have completed their feasibility study and Council will support their funding option to delivery their connectivity needs.

2.4 The Broadband Delivery Group have sanctioned a Community wide initiative, to encourage more Communities to apply for Council support and funding to deliver their own connectivity options as an alternative to the main fibre roll out programmes. Interest has been registered from three Communities prior to the official comms release.

2.5 The Council remain in close contact with the DSSB, Gainshare and R100 programmes to ensure understanding of the rural plans.

ICT Investment - Green

2.6 The ICT Investment Programme this year includes investment in security tools and essential hardware/software upgrades to improve the resilience of our technology and information assets and support ever evolving Cyber Security requirements.

2.7 In support of the Technology Strategy, we will also be continuing with Cloud Migration where applicable and appropriate.

2.8 We will be rolling out SharePoint as part of the Implementation of our Records Management Plan. We will also be introducing a new SharePoint based platform to replace the current ‘Source’. We will also be introducing more collaboration tools including Microsoft Teams.

ICT – Digital Investment - Green

2.9 In support of the Digital Strategy and Blueprint, we will be focussing on technologies to support our staff to work in a more flexible manner. This will include investing in technologies which will enable staff to have anytime, anyplace access to the systems they need to access on Council devices.

Education – Digital Investment – Green

2.10 Funding will be used to support the Digital Learning Strategy approved by Committee in May 2018. This will include investing in devices for pupils, Bring Your Own Device options and undertaking some essential upgrades and replacements to the hardware which supports our school networks.

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Social Care – Digital Investment – Green

2.11 Funding will be used to support more flexible ways of working for Social Care staff. It will also be used to support the work of our multi agency hubs. Work will begin on a replacement Social Care system which will enable greater integration with our health partners for which funding will be sought in future years.

3 INVESTING IN SPORT

STIRLING SPORTS VILLAGE (PROJECT STATUS: GREEN) 3.1 Improvements to disabled facilities within Forthbank Stadium will be progressed this financial

year; providing covered shelter in the spectator stands, for wheelchair users. This project has been carried forward as the works tender in 2017/18 failed to provide a suitable contractor for the project. The Stirling Disabled Access Forum has been consulted and commented upon the project and stakeholders including Stirling Albion and Active Stirling will continue to be involved in the planning of the works at a time to minimise disruption to Forthbank users.

3.2 The development of the Sports Village Masterplan will be progressed this year, to inform on the potential future developments of this strategic site and identifying the supporting infrastructure that may be required to deliver the sport and wellbeing strategy

COMMUNITY SPORT INFRASTRUCTURE (PROJECT STATUS: GREEN) 3.1 An investment in the artificial pitch at St Modan's High School to upgrade the existing 2G

sand based surface to 3G 40mm rubber infill and tiger turf, will support sporting activity for schools and the wider community will be progressed during the school summer holiday period this year.

4 INVESTING IN COMMUNITY FACILITIES

UPGRADE COMMUNITY FACILITIES (PROJECT STATUS: GREEN) 4.1 This This capital budget is targeted at community facilities that require investment to improve

building condition and suitability. The works this year will include further toilet refurbishments and improvement works at community centres. Project scoping, consultation and delivery will be undertaken in the second half of the financial year

Improved Disabled Changing Facilities

4.2 An opportunity to improve the provision of suitable Changing facilities within Stirling was recognised by Council at budget setting in February. An initial meeting with representatives from the Stirling Disabled Access Panel has highlighted The Peak as a priority location for facilities to be provided. Working in conjunction with Active Stirling; a suitable, accessible location within the sports centre has been identified for a 'Changing Places' room and feasibility design and consultation will now be progressed

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PUBLIC TRANSPORT INFRASTRUCTURE (PROJECT STATUS: GREEN) 4.3 This project will comprise of replacing and upgrading transport infrastructure for shelters and

stops, in addition to reviewing requests for new locations for bus shelters. Further to this we will review other infrastructure options, e.g. self-service ticket machines. Works are programmed to be complete by the end of March 2019.

INVESTMENT IN PARKS AND PLAY EQUIPMENT (PROJECT STATUS: GREEN)

4.4 This capital budget has been established to invest in enhancing parks through replacing failing play equipment and where possible assist community groups seek external match funding. The sites identified where equipment is to be replaced are being developed for discussion with community councils and include: Cowie (Church Park) with others under review during May 2018.

PARKS MASTERPLAN (PROJECT STATUS: GREEN)

4.5 During the years from 2009-2014 Beechwood Park, Kings Park, Plean Country Park, Ladywell Park, Pullar Memorial Park and Laigh Hills Park were master-planned through participative community involvement. The six Park Masterplans guide and inform the future direction and development of these valuable greenspace assets for a period of 10-20 years.

4.6 This budget continues to provide for implementation of Park Masterplan priorities at Plean Country Park (£20,000), Laigh Hills Park (£20,000) and Ladywell Park (£10,000). Masterplan priorities are being agreed with the community park groups during Spring 2018.

MUGDOCK COUNTY PARK (PROJECT STATUS: GREEN)

4.7 The Mugdock Country Park is managed under an agreement between Stirling and East Dunbartonshire Council, with Eat Dunbartonshire the lead authority. The capital investment within the park is funded 50:50 within the partnership. Stirling’s contribution to the programme this year is £50k, which will fund improvements to the park as agreed by the management committee.

EVENTS INFRASTRUCTURE IN CULTURE FACILITIES (PROJECT STATUS: GREEN) 4.8 The spend for this project is to improve the available facilities at our cultural sites. It is

earmarked to improve the Tolbooth equipment and facilities by purchasing new multimedia and sound equipment.

4.9 A brief is currently being drafted for this.

REPLACEMENT OF MOBILE LIBRARY VEHICLES (PROJECT STATUS: GREEN)

4.10 A Direct Award was possible within procurement regulations and therefore an order has been placed with the sole supplier to a specification to meet both budget and service ambition. The purchase of one vehicle, wi-fi enabled and capable of transporting an additional passenger (to support enhanced use of the vehicle) will be complete by end March 2019.

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5 INVESTING IN ROADS AND INFRASTRUCTURE

FLOOD SCHEME INVESTMENT (PROJECT STATUS: GREEN)

Stirling Flood Alleviation scheme

5.1 The advanced works package is the first stage in development of the proposed 1:200-year flood alleviation scheme. The current brief is progressing and programmed to be complete by the end of the financial year The ground investigation works site works are complete and we have received the contractor reports to be finalised to conclude the findings. The ground penetrating radar investigation initial site works are complete however due to ongoing contractor issues the current contract has been terminated. We require to complete approximately 43 trial holes to finish these works at an approximate cost of £40K, this will go out at a later date once we have established the next brief. The next stage is to update the hydraulic model, this should be complete by June 2018, this has been delayed due to delays in receiving the data from SEPA. The scheme would then move to an outline design phase in the new financial year with public consultation at the end of that process, a brief going out for these has been delayed due to procurement issues with the term commission contract. The brief will also be shaped by the outcomes of the River Masterplan brief and extents and other specifics will need to tie in to the results of this which is due to be finalised after consultation in July. Estimate spend on this project next financial year financial is £500k. Procurement issues currently a threat in project delivery and timeline.

Bridge of Allan Flood Alleviation scheme

5.2 An outline design work package is currently underway, as one part of the design of a 1:50 year flood alleviation scheme. Ground Investigation work on site now complete and interpretative reports returned. The ground penetrating radar investigation initial site works are complete however due to ongoing contractor issues the current contract has been terminated. We require to complete approximately 13 trial holes to finish these works. Receipt of flow monitoring information from SEPA has been delayed by 6 months. Estimated costs dependant on timely receipt on accurate information from SEPA. Initial spend estimated on project during 18/19 is 300K. Procurement issues currently a threat in project delivery and timeline.

Callander Flood Alleviation scheme

5.3 An outline design work package is well underway as one part of the design of a 1:50 year flood alleviation scheme, and the report and river modelling are awaiting review by SEPA. Due to delays in the final reviewing and sign off it is now intended to progress the second phase of the design brief from July time carry to the end of and potentially beyond the new financial year. Ground Investigation work on site now complete and interpretative reports returned. The ground penetrating radar investigation initial site works are complete however due to ongoing contractor issues the current contract has been terminated. We require to complete approximately 43 trial holes to finish these works. Estimated required budget for financial year 18/19 will be approximately 300k. Delivery of the Callander scheme is more flexible than others due to having no hydrological linkage or connection to other schemes and being the smallest and least technically complex of all of those proposed. Procurement issues currently a threat in project delivery and timeline.

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ABERFOYLE FLOOD SCHEME (PROJECT STATUS: Amber) 5.4 The proposed scheme aims to provide flood protection to a standard of 1:100-year event to

the village centre, the access to the primary school and the single road access to 4 communities beyond Aberfoyle. Delivery of the scheme will protect against flooding, support economic regeneration and provide a safe route to school. Preferred scheme alignment has been agreed by Council and presented to key stakeholder groups. A new brief has been agreed to commence design work. Early contractor engagement has begun through the SCAPE framework to provide the best technical solution and value for money with a defined upper limit cost of the scheme. Due to delays with consultation and lack of resource, the full budget allocation will not be spent. A budget of 600k will be required to progress with detailed design during the 18/19 financial year. While some work is on-going, the design brief has not been awarded to the current consultants due to the value of the project and the way forward is unclear. Procurement issues currently a threat in project delivery and timeline. Some delay can be mitigated but if the scheme design is not completed by the deadline for national prioritisation there will be no opportunity to be considered for Scottish Government grant funding.

A905 KERSE ROAD BRIDGE IMPROVEMENTS (PROJECT STATUS: GREEN)

5.5 Network Rail are undertaking this project as part of their Edinburgh – Glasgow Improvement programme and the electrification of the network to Stirling, Dunblane and Alloa. The project to replace Kerse Road Bridge is progressing well and on programme. The key stages of demolition of the original bridge, the removal of the embankments and piling works are now complete. Regular updates on progress are being provided by Network Rail to elected members, communities and business groups.

5.6 Once complete, and in addition to the benefits that the electrification programme will bring to Stirling, the bridge will provide for an additional traffic lane over the bridge and improved cycling and walking provision. The Council had allocated a provisional £1m within the capital budget as Council are required to contribute towards the costs of the project. Officers are still working with Network Rail to agree the final value of the contribution within this budgeted amount.

MAJOR INFRASTRUCTURE - BRIDGE IMPROVEMENTS (STATUS: GREEN)

5.7 The budget is provided to maintain and upgrade the council’s bridge and road structure assets current years’ projects include:

5.8 Back Walk Wall: A project is being progressed to improve the condition of the footway and the retaining structures on a section of the back walk. Shallow trial holes were dug in September 2017, and the consultants interpretive report has recommended that further investigation works in the form of boreholes is required to be undertaken on site. Tender documents are currently being prepared.

5.9 Catterburn Bridge: The structure is near the end of its design life and is in need of substantial repair or replacement. A brief is currently being progressed with a consultant to establish the best option available for repair or replacement.

5.10 Kings Yet and Bannockburn Culverts North Third: Replacement of existing small diameter pipes used to form culverts. Structures have reached the end of their design life. Replacement of existing small diameter pipes with large diameter box culvert, works to include realignment of roadway and potential realignment of the burn at the Kings yet culvert. Project designed due to go to site mid-summer using our internal bridges squad.

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5.11 Stevenson Bridge Temporary Barriers: The Stevenson’s Bridge parapets in Stirling are in

poor condition and reaching their end of service life. Temporary parapet barriers need to be installed on site until full replacement work can be undertaken. Discussions are currently underway with BT to establish if temporary barriers can be located, for a period of 2-3 years, over their shallow ducts. The purchase of these temporary barriers is hoped to take place this year.

5.12 C3 Bridges: 2 boundary bridges with Falkirk Council have reached the end of their design life. The tender documents and environment assessment work has been finalised. Tender documents to be issues shortly. Works to take place in the Autumn.

5.13 Blanewater Bridge: A feasibility options report for replacement/repairing/strengthening the bridge and possibly further widening to mitigate future parapet strikes is currently being completed. The report is expected to be complete in June.

MODERNISATION AND IMPROVEMENT PROJECTS (PROJECT STATUS: GREEN)

5.14 The Road resurfacing work forms the majority of the works within this programmes for road

improvements schemes. The programme of schemes were identified in accordance with the Road Asset Management Plan (RAMP), and as agreed by the Housing and Environment Committee, and is currently being communicated to community councils. The four key delivery areas and the percentage of the budget allocated are: Re-surfacing of Carriageways (77%); Upgrading of footways and footpaths (15%); Maintenance and Repair of the Council’s Structures on the Road Network (5%); and Safer Routes to School Schemes (3%)

5.15 For carriageways and footways, activities generally comprise renewal of significant sections or parts of the network that have deteriorated to a level that major preventative treatment or complete replacement of the surface layers is required or to prevent surfaces reaching this condition and requiring expensive resurfacing repairs. The sections requiring treatment are identified using a matrix to prioritise schemes in accordance with the Council’s Road Asset Management Plan (RAMP). The delivery of the programme of works is on target to be complete by March 2018, with the vast majority of the works being completed by the end of November 2018. Upgrading of footways and footpaths is underway and on programme to be completed before the end of March 2019. Many of these improvements are associated with the resurfacing of the carriageway at specific locations and the majority of these schemes will also be completed by the end of November 2018.

MAJOR INFRASTRUCTURE – TRAFFIC MANAGEMENT & SPEED ACTIVATED SIGNS (PROJECT STATUS: GREEN)

5.16 This Capital Investment assists and supports the Councils Objectives for alternative active travel modes (walking, cycling and use of public transport) by improving facilities, access and addressing associated safety issues. The three key delivery areas are Safer Route to School Schemes, Accessibility and Pedestrian Crossing Improvements, and Speed Activated Signs.

5.17 Officers are currently working with the Active Travel Working group to identify the schemes that will be taken forward in this financial year. It is envisaged projects will include; Safer

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Routes to School, Improving Pedestrian Crossing Points and the installation of Speed Activated Signs.

MAJOR INFRASTRUCUTRE – CITY TRANSPORT INFRASTRUCTURE (Project Status: GREEN)

EV Charging

5.18 This project will look to pilot additional electric vehicle (EV) infrastructure such as utilising lighting columns to provide EV charging for those with no access to off street charging at home. Real Time Air Quality Monitoring

5.19 This project will explore the installation of SMART air quality monitors that will provide real

time data on air pollution

6 INVESTING IN EDUCATION

SCHOOL FACILITY INVESTMENT – Including CCTV (PROJECT STATUS: GREEN)

6.1 Design of a number of school improvement works including external fabric works and internal refurbishments is ongoing with procurement underway and works scheduled to take place in both the school summer holiday period and later in the school year.

6.2 Council allocated further budget to CCTV in schools at February budget setting. Projects currently being prioritised and scoped with a view to delivering in the second half of the financial year.

STRATHYRE PRIMARY SCHOOL (STATUS: AMBER)

6.3 The project will extend the accommodation at the school to provide a flexible hall and additional classroom and staff facilities. Full refurbishment of the existing facilities is underway. In addition, a sprinkler system for asset protection has been included into project scope.

6.4 Progress on site has been hampered by the severe winter weather affecting site operations and in addition, issues with regards to quality workmanship have been identified and rectification instructed. The impact of this is a delay to the programme and although regrettable, later than planned handover is now inevitable and the Infrastructure delivery team are working with the contractor to try to minimise the impact of this on pupils and staff as much as possible.

ST. NINIANS PRIMARY SCHOOL (PROJECT STATUS: GREEN)

6.5 Further external works to complete the project are planned with improvements to the grounds, including demolition of redundant external shelters currently being scoped.

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EARLY YEARS PROVISION 1140HRS (PROJECT STATUS: GREEN)

6.6 Scottish Government has now confirmed a capital grant allocation of £7m for implementation of the 1140 early years expansion strategy. This is £900k less than the total capital requirement that was identified on the financial templates submitted in March 2018. Officers are now reviewing the impact of this shortfall on the proposed delivery plans with further scoping, design and costing ongoing. There will be a range of new build, refurbishment and remodelling projects and further information on plans will be reported to Committee in late Summer 2018

7 Investing in Social Care

HOUSING & REPAIR GRANTS (PROJECT STATUS: GREEN)

7.1 Housing Care and repair is the service we provide to owners for minor repairs, it is funded from the PSGF monies and is reactive in nature as its intention is to assist elderly people to continue to live in their homes. Projections are based on the previous year’s spend, as these projects are demand led and based on customer take up.

PRIVATE SECTOR DISABLED ADAPTATION GRANTS (PROJECT STATUS: GREEN)

7.2 Private Sector Disabled Adaptations are the main spend for PSHG, again these are applicant driven however they are usually oversubscribed and a waiting list will be carried forward to future years. This is the statutory element of Grant Funding and take up is reasonably consistent throughout the year. Projections are based on the previous year’s spend.

TELECARE EQUIPMENT PURCHASE (PROJECT STATUS: GREEN)

7.3 Telecare Equipment Purchase and explore and prepare the scope in the shift towards digital and build on national digital platforms for self-management and use of telehealth monitoring, to support citizens to remain safe at home and reduce “over Care” Support our citizens (service users and their carers) who may be at risk in their own homes. Expand the user of telecare equipment across the whole geographical areas of Stirling. Improve use of equipment for people with dementia and learning disabilities and explore the use of GPS technologies to allow individuals to live as independently as possible.

8 PRIORITY BASED BUDGETING

ICT INVESTMENT (PROJECT STATUS: GREEN) 8.1 The ICT Investment Programme this year includes investment in security tools and essential

hardware/software upgrades to improve the resilience of our technology and information assets and support ever evolving Cyber Security requirements.

8.2 In support of the Technology Strategy, we will also be continuing with Cloud Migration where applicable and appropriate.

8.3 We will be rolling out SharePoint as part of the Implementation of our Records Management Plan. We will also be introducing a new SharePoint based platform to replace the current ‘Source’. We will also be introducing more collaboration tools including Microsoft Teams.

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COMMUNITY AND CUSTOMER ACCESS (PROJECT STATUS: GREEN) 8.4 As part of the Digital Strategy and Digital Blueprint, we are changing how we engage with

our Customers and enabling more of the services we provide to move to digital channels.

8.5 In 2018/19 this will include working with our partners from the CivTech challenge, Dogfish Mobile ,to co-develop 'CoDo' our new customer engagement platform which will provide a single view of the customer and enable us to better use the data we have to better model and schedule services. As part of this work we will develop a customer APP and a reporting dashboard for performance measurement. We are also updating our website to ensure that it enables digital services, provides high quality information and is easy to navigate.

8.6 Work is also ongoing to review all aspects of Contact Centre and funding will be used to support improvements in our front line service to customers.

8.7 We will also be seeking customer engagement in the design and definition of our digital services.

WELLGREEN MULTI-STOREY CARPARK (Project Status: GREEN)

8.8 Negotiations are continuing with National Car Parks over the transfer of the operation of the car park back to Stirling Council. The Council will operate the carpark in-house from 1st October 2018 and the existing 3 members of staff will transfer to the council. Ticket machines and barrier entry systems will be replaced (the current ones are 17 years old) and new signing and branding will be implemented for 1st October 2018.

ADVERTISE REVENUE GENERATION FROM COUNCIL ASSETS (PROJECT STATUS: GREEN)

8.9 Recruitment is currently underway for post to be able to take this project forward. Once recruitment timeframe is finalised project can be further developed.

LOWER POLMAISE EXPANSION PROJECT (PROJECT STATUS: GREEN)

8.10 The proposal is to build on the benefits that will be delivered from the centralised Depot facility by developing an expansion programme. The Council would act as a ‘first mover’ for the relocation of other public sector depot facilities and/or a catalyst for growth for economic development aligned with Depot activity. The project would see the Council create a commercial income return on the project investment. The work to be undertaken this year will include a review of demand and some initial development planning.

9. EXTERNAL FUNDED PROJECTS

SUSTRANS PROJECTS (PROJECT STATUS: GREEN)

Cowie Streetscape

9.1 Following community consultation, it was agreed to install a zebra crossing on Main Street near Burns Terrace and a zebra and cycle crossing on Main Street near Cowie Primary School. The scheme also includes path improvement works in Berryhill Park, incorporating upgraded street lighting with the Park and the installation of stairs with a bike wheel channel linking to Bannockburn Road.

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9.2 The work is currently under construction by the Roads Service and is programmed for

completion by the end of May.

10 PRUDENTIAL BORROWING SPECIFIC PROJECTS

LED STREET LIGHTING UPGRADES (PROJECT STATUS: GREEN)

10.1 Stirling Council is continuing to deliver its LED street-lighting investment programme,

including columns, lanterns & associated cabling, to improve asset condition and improve energy efficiency. The capital investment is taking place over a four year period, 2018/19 is the fourth year of this programme.

10.2 The current target for the street lighting upgrade programme is to replace 5,000 columns/lanterns combined, and 9,500 lanterns. The new columns will replace the oldest columns within the street lighting stock, some of which are over thirty years old. The new LED lanterns should return a reduction of 50% on energy costs, as well as contributing towards the Council targets in carbon reduction. All works for this year are on programme, and in the first quarter of the year, we are renewing areas within Bridge of Allan, Bannockburn, Cambuskenneth & Wellgreen.

DEPOT RATIONALISATION PROJECT (PROJECT STATUS: GREEN)

10.3 The Depot consolidation project will allow the Council to centralise frontline operational

services (Waste, Integrated Facilities Management, Roads and Land) at Lower Polmaise Depot, with supporting depot provision in Callander. Various alteration and upgrade works will be required at Lower Polmaise Depot, including the provision of a 2 Nr weighbridges, a new slat barn and conversion of the existing bailing shed to provide a fit for purpose workshop and storage facility.

10.4 The principal contractor and design team have been procured and appointed through the East Central Scotland Hub process. Principal contractor is Ogilvie Construction.

10.5 Developed design stage has commenced with relevant Council services being engaged via workshops and regular communications. Design and project affordability update to be reported to Council as part of approval of business case. Works due to commence on site December 2018 / January 2019, with completion/handover due April/ May 2019.

SPRINGKERSE DISTRICT HEATING SYSTEM (PROJECT STATUS: GREEN)

10.6 Providing low cost, low carbon heating to public and commercial buildings in the Forthside/Springkerse Area with match funding from LCITP, in partnership with Scottish Water Horizons

10.7 Stirling Council will own and operate the district heating network. We are currently going through tender assessment process. Following this, the Council will need to finalise the heat purchase agreement with Scottish Water and the customer supply agreements prior to final award of contract. It is anticipated that the project will be complete by the end of 2018.

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14

FORTHSIDE WORKS (PROJECT STATUS: GREEN)

10.8 A programme of works is being agreed with the elected members to undertake public realm

works within Forthside. This will include works associated with the pedestrian bridge which are being co-ordinated with Network Rail and their programme of works in the vicinity of Stirling Station. All works will be completed by the end of 2018.

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Finance & Economy Committee


Performance and Strategic Priorities Progress Report

Purpose & Summary

This report presents the recommended performance indicators to be reported to Finance & Economy Committee, in line with new Council Priorities.

Recommendations


1.1 consider and comment on the recommended indicators (Appendix 2); and

1.2 approve the recommended indicators for future reporting, in line with Council Priorities A, B, C, D, E, F.


None.


None.

1. Background

1.1. This report presents the recommended performance indicators to be reported to the Finance & Economy Committee, in line with Council priorities.

2. Considerations

Performance Indicators

2.1. Appendix 2 shows the recommended performance indicators.

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Stirling Council Key Priorities

2.2. The Finance and Economy Committee is responsible for oversight of the following Strategic Priorities:

2.2.1. Priority A - We will look after all of our citizens, from early years through to adulthood, by providing quality education and social care services, to allow everybody to lead their lives to their full potential.

2.2.2. Priority B - We will target all forms of poverty across our communities and mitigate the impact of austerity and welfare cuts on those hit the hardest.

2.2.3. Priority C - We will create more affordable housing and social housing in all of Stirling’s communities. We will lead by example as an organisation in setting exceptional standards in building practice, environmental practice, employer practice, tenant relations and homelessness prevention.

2.2.4. Priority D - We will deliver inclusive economic growth and promote prosperity. We will deliver a City Region Deal and pursue policies and solutions that encourage high quality, high paying jobs into all of Stirling’s communities.

2.2.5. Priority E - We will create and implement environment and infrastructure improvements. We will deliver new ownership and delivery methods around energy generation, public transport and internet access, ensuring profits and services work to community, not commercial priorities.

2.2.6. Priority F - We will commit and coordinate our resources to ensuring Stirling becomes a must visit destination; with heritage, culture, environment and economic strategies working hand in hand to encourage tourists to stay for a minimum of three days and two nights.

3. Implications

Equalities Impact

3.1. The contents of this report were assessed under the Council’s Equality Impact Assessment process. It was determined that an Equality Impact Assessment was not required as there is no impact on protected characteristic groups.


3.2. No impact.


3.3. No impact.

Consultations

3.4. Not applicable.


4.1. EqIA Relevance Check.

54

5. Appendices

5.1. Appendix 1 – Recommended Performance Indicators.

5.2. Appendix 2 – Finance & Economy PIs Report.

Author of Report:

Steven MacDonald Team Leader, Economic Growth

Contact Details:

01786 233154 [email protected]

Approved by:

Anne Ferguson Senior Manager, Economic Development, Culture & Tourism

Date: 6 June 2018

Signature:


Wards affected: All

Key Priorities: D - We will deliver inclusive economic growth and promote prosperity. We will deliver a City Region Deal and pursue policies and solutions that encourage high quality, high paying jobs into all of Stirling's communities.

Key Priority Considerations:


Prosperous - People are part of a prosperous economy that promotes inclusive growth opportunities across our communities

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Appendix 1 – Recommended Performance Indicators

Council Priority

Service Plan Reference – Economic Growth Indicator Frequency

Priority D We will deliver inclusive economic growth & promote prosperity. We will deliver a City Region Deal & pursue policies & solutions that encourage high quality, high paying jobs into all Stirling’s Communities.

Priority F We will commit & coordinate our resources to ensuring Stirling becomes a must visit destination; with heritage, culture, environment & economic strategies working hand in hand to encourage tourists to stay for a minimum of 3 days & 2 nights

Prosperous

City Centre vacancy rate % of property vacant, measured against national average

Quarterly

Number of businesses supported Number of businesses Quarterly

Priority F We will commit & coordinate our resources to ensuring Stirling becomes a must visit destination; with heritage, culture, environment & economic strategies working hand in hand to encourage tourists to stay for a minimum of 3 days & 2 nights


Prosperous

Average duration of stay for tourists

Number of days

Annually

% of businesses with access to superfast broadband Number of rural economic development projects supported

% of businesses

Quarterly

No of projects Quarterly

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Council Priority Service Plan Reference – Strategic Commissioning Indicator Frequency


Prosperous

% Council influencable spend with local suppliers

% of spend Annual

% Council influencable spend covered by compliant Contractual Agreements

% of spend Annual

Priority C We will create more affordable housing in all of Stirling’s communities. We will lead by example as an organisation in setting exceptional standards in building practice, environmental practice, employer practice, tenant relations and homelessness prevention. Achieving

Sickness absence levels Sickness absence days per employee (excluding teachers) (SPI)

Monthly

Sickness absence days per teacher (SPI)

Monthly

Monitoring Diversity of the workforce ‐ % of trainees and apprentices

Monthly

% of the highest paid 5% of employees who are women (SPI)

Annually

Gender Pay Gap % Annually

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Council Priority Service Plan Reference ‐ Finance Indicator Frequency


Prosperous

% of Non‐domestic rated collected

% of total

Quarterly

% of Council Tax income collected % of total

Quarterly

% of sundry debtors outstanding more than 90 days from invoice date

% of total Quarterly

% of invoices paid within 30 calendar days of receipt % of total Quarterly

Projected financial outturn vs annual budget Variance in £ Quarterly

Loans fund interest rate % 6 monthly

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Council Priority Service Plan Reference – Complaints & Enquiries Indicator Frequency

All Priorities: A.B.C.D.E.F

Prosperous

Healthy

Achieving

Resilient

% Performance for Stage 1 Complaints completed within

timescale

% of total (80%)

Quarterly

% Performance for Stage 2 Complaints completed within

timescale

% of total (85%)

Quarterly

% Performance for Elected Member Enquiries completed within

timescale

% of total (85%)

Quarterly

% Performance for MSP/MP Enquiries completed within

timescale

% of total (85%)

Quarterly

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Council Priority Service Plan Reference – Finance ‐ Capital Indicator Frequency


Prosperous

Capital Spend

Amount of spend % of spend against budget

Monthly

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Finance & Economy PIs Report

Generated on: 23 May 2018

Complaints & Enquiries

PI TitleFrequency

May 2017

Jun 2017

Jul 2017

Aug 2017

Sep 2017

Oct 2017

Nov 2017

Dec 2017

Jan 2018

Feb 2018

Mar 2018

Apr 2018

May 2018 Target Status Long

Trend Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

% Performance of Elected Member Enquiries completed in timescale (Quarterly Reporting)

Q 85%

% Performance of MP/MSP Enquiries completed in timescale (Quarterly Reporting)

Q 85%

% of Stage 1 complaints due and responded to within target timescales (all services)

Q 77% 80%

% of Stage 2 complaints due and responded to within target timescales (all services)

Q 67% 75% 85%

Appendix 263

Economic Growth and Events

PI Title Frequency

May 2017

Jun 2017

Jul 2017

Aug 2017

Sep 2017

Oct 2017

Nov 2017

Dec 2017

Jan 2018

Feb 2018

Mar 2018

Apr 2018


Trend Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Number of new events attracted/created H 10

% rural businesses with access to superfast broadband

Q 92%

% of city centre property vacant, measured against national average (Quarterly)

Q 11%

Number of businesses supported (Stirling Council & STEP)

Q 300

Number of days’ duration stay for tourists Y 2* No of rural economic development projects Q 20

Number of evening economy projects/initiatives supported/created

H 8

* This figure is based on the average length of stay of all visitors, including day visitors (current baseline is 1.6). Finance

PI Title Frequency

May 2017

Jun 2017

Jul 2017

Aug 2017

Sep 2017

Oct 2017

Nov 2017

Dec 2017

Jan 2018

Feb 2018

Mar 2018

Apr 2018


Trend Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

% of sundry debtors outstanding more than 90 days from invoice date

Q 20%

% of invoices paid within 30 calendar days of receipt

Q 90%

Projected financial outturn vs annual budget (Variance)

Q 0.25%

% Loans Fund Interest Rate

H 4.5% Y

Capital Spend- % Amount spend against budget (Monthly)

M 95%

% of Council Tax income collected Q 97.5%

% of Non-domestic rates collected Q 97.0% % of income in housing arrears Q

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HR&OD

PI TitleFrequency

May 2017

Jun 2017

Jul 2017

Aug 2017

Sep 2017

Oct 2017

Nov 2017

Dec 2017

Jan 2018

Feb 2018

Mar 2018

Apr 2018


Trend Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

% of trainees and apprentices (All services)

M 5.7%

5.7%

5.7%

5.7%

5.9%

5.9%

5.9%

5.9%

5.9%

6.0%

6.0%

6.0% Q 5.8

% 5.8%

5.9%

The percentage of the highest paid 5% employees who are women (SPI)

Y 54.7%

Gender pay gap % Y 1.8%

Sickness absence days per teacher (SPI)-(Monthly Reporting)

M 5.27

Sickness Absence Days per Employee (excluding teachers) (SPI) (Monthly Reporting)

M 10.2

Strategic Commissioning & Customers

PI TitleFrequency

May 2017

Jun 2017

Jul 2017

Aug 2017

Sep 2017

Oct 2017

Nov 2017

Dec 2017

Jan 2018

Feb 2018

Mar 2018

Apr 2018


Trend Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Procurement - % Council influenceable spend covered by compliant Contractual Agreements

Y 83%

Procurement - % Council influenceable spend with local suppliers (F&E Committee)

Y 25%

Procurement: % Council influenceable spend through PECOS (Easybuy)

Y 50%

Procurement: % Council influenceable spend with SME’s (small/medium enterprises)

Y 70%

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Not Exempt

Treasury Management Performance Review 2017/18

Purpose & Summary

This report provides details of the 2017/18 Treasury Management performance and presents the actual prudential indicators for this period. It serves to evidence compliance with the Council’s approved Treasury Management Strategy for 2017/18, prepared in accordance with the Local Government in Scotland Act 2003, the revised Chartered Institute of Public Finance & Accountancy (CIPFA) Treasury Management in the Public Services Code (2011 edition), the CIPFA Prudential Code for Capital Finance in Local Authorities (2011 edition), the Local Government Investment Regulations (Scotland) 2010 and the Local Authority (Capital Financing and Accounting)(Scotland) Regulations 2016.

Recommendations


1. consider and comment on the treasury management performance, includingprudential indicators, for 2017/18; and

2. consider and comment on the undertaking of new Public Works Loan Board loanstotalling £10.0m with an average rate of 2.31%.


In accordance with the approved strategy for 2017/18, treasury management activity during the year maintained the Council’s loan portfolio on a strong, low-risk, long-term basis with due consideration of budget requirements to minimise the cost of debt. Prudent cash-flow management with on-going short-term, operational, investment of surpluses together with the phasing of capital expenditure, favourable terms for temporary borrowing and the deferring of new long-term borrowing, resulted in a loans fund pooled rate of 4.21% (4.42% in 2016/17) and resulted in savings against loans charges of £0.800m for General Services and £0.380m for the Housing Revenue Account.

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Following consideration of the legal implications of this report, no further relevant issues have been identified.

Following consideration of the risk implications of this report, no further relevant issues have been identified. The Treasury Management Strategy for 2017/18 identified any associated risks inherent within the Council’s treasury management activities and the management of such risks.

1. Background

1.1. The Prudential Indicators for 2017/18 were originally approved in the Revenue Budget and Determination of Council Tax 2017/18 paper presented to Council on 23 February 2017. Following approval of the 2017/18 budget, the Treasury Management Strategy for 2017/18, including the Prudential Indicators, was presented to, and approved by, Finance & Economy Committee on 2 March 2017.

2. Considerations

Treasury Management Performance in 2017/18

Investment & Counterparties

2.1. The expectation for interest rates within the 2017/18 strategy anticipated that the Bank of England Base Rate, cut to 0.25% in August 2016, would remain unchanged at this level with an increase expected by June 2019. In November 2017, the Bank of England’s Monetary Policy Committee voted to increase the Base Rate from 0.25% to 0.50%.

2.2. Continued economic uncertainty promoted a cautious approach whereby investments continued to be dominated by low counterparty risk considerations resulting in relatively low returns. In consideration of this economic uncertainty, and consistent with the Council’s approved strategy for 2017/18, a low-risk attitude was adopted and the Council’s investment priorities were: the security of capital, the liquidity of investments and the minimisation of risk. In this scenario, the treasury strategy in respect of borrowing was to defer new long-term borrowing requirements to avoid the carrying costs of holding higher levels of investments and to reduce counterparty risk.

2.3. Treasury Management policies and practices were followed consistently to ensure that deposits were only placed with those financial institutions meeting the Council’s investment criteria, within approved limits and durations. In response to the instability and sovereign debt concerns within the Eurozone, and the uncertainty surrounding the UK’s withdrawal from the EU, it was determined that investments would only be undertaken with UK financial institutions, with priority given to those nationalised / part-nationalised financial institutions with significant government support. The Debt Management Office account deposit facility was also used: whilst interest rates were lower than market rates, this facility offered a relatively safe, low-risk investment option.

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2.4. Investment of surplus cash balances on a very short-term basis, for operational cash-flow purposes, was conducted throughout the year. The available level of balances remains relatively low as internal cash balances and temporary borrowing was used to finance new capital expenditure, replenish maturing debt and support cash requirements throughout the year. This strategy effectively served to defer new external borrowing and therefore avoided the carrying costs of holding higher levels of investments (investment rates were significantly lower than long-term borrowing rates) and reduced the counterparty risk associated with such. Investment balances at 31 March 2018 are detailed below:

31 Mar 18 31 Mar 17

The Royal Bank of Scotland £5.000m £3.100m

Debt Management Office £1.400m Nil

Total £6.400m £3.100m

2.5. Details of outstanding investments were reported on a weekly basis through the

Member’s Information Bulletin.

2.6. The Local Government Investment (Scotland) Regulations 2010 (and accompanying Finance Circular 5/2010) permit Scottish local authorities to invest for periods longer than 364 days. The Council, consistent with its strategy for 2017/18, did not make any investments for such periods.

Borrowing

2.7. The UK has been experiencing exceptional levels of volatility which are highly correlated to geo-political, emerging market and sovereign debt crisis developments and it is likely that these exceptional levels of volatility could continue to occur in the foreseeable future. In the shorter term, this makes economic and interest rate forecasting, with any degree of confidence and reliability, difficult and unpredictable. With so many external influences weighing on the UK, these forecasts and MPC decisions will be liable to further amendment depending on how economic data and developments in financial markets, and the EU, transpire over the next year. The overall longer term trend is for gilt yields and PWLB rates to rise and forecasts assume that safe haven flows will unwind and rates will rise again, as increasing investor confidence in eventual world economic recovery will encourage investors to switch back from bonds to equities.

2.8. Movements in the Council’s loan portfolio in 2017/18 are detailed in the following table:

Maturing Loans Repaid: Loan Rate

PWLB Maturity Loans £4.442m 9.85%

Market Loan £1.000m 9.50%

SALIX Interest Free Loans £0.053m 0.00%

New Loans: Loan Rate

PWLB Maturity Loans £10.000m 2.31%

L1 Renewables Financing £2.698m 3.61%

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2.9. Overall, the Council maintained its under-borrowed position and, consistent with the approved strategy for the year, achieved this by giving priority to internal borrowing and temporary borrowing. This means that the capital financing requirement has not been fully funded with loan debt as cash supporting the Council’s reserves, balances and cash-flows was used as a temporary measure and was supplemented by a level of temporary borrowing which was readily available within the markets and at comparatively lower rates than PWLB new loan rates.

2.10. This strategy of effectively delaying new long-term borrowing by prioritising internal and temporary borrowing has served well at a time when comparatively cheaper temporary borrowing is readily available, counterparties meeting the investment criteria are limited, and historically low investment returns generate potentially significant carrying costs for any new long-term borrowing undertaken, but it does only provide a short-term advantage in terms of delivering short-term savings.

2.11. At 31 March 2018, the Council’s loan portfolio comprised long-term borrowing of £136.409m (average rate 5.56%) and temporary borrowing of £20.00m (average rate 0.61%), giving a total of £156.409m with an average rate of 4.93%. This average rate on actual external borrowing is higher than the loans fund pooled rate of 4.21%. The reason for the difference between the rates is due to the fact that the loans fund pooled rate is an in-year rate, the calculation of which is determined by the level of capital expenditure in the year and also takes account of any investment interest which effectively offsets the interest paid on loans.

2.12. PWLB rates fell at various points during 2017/18. As yields remained at historically low levels, there was particular value in the 40-50 year period which presented an opportunity to: secure long-term borrowing at advantageous rates; support the Council’s Balance Sheet in terms of its capital financing requirement, internal borrowing and temporary borrowing position; contribute to lowering the average interest rate on the debt portfolio and secure loans at a rate which should generate debt rescheduling opportunities in future years if interest rates were to increase significantly.

2.13. Interest rates and movements were closely monitored and total loans of £10.000m with an average rate of 2.31% were undertaken:

Loan Amount Rate Term Dates

PWLB Maturity £5.000m 2.32% 48 years 22/02/18 to 22/02/66

PWLB Maturity £5.000m 2.30% 47 years 26/03/18 to 26/03/65

External Service Providers

2.14. Council Officers regularly communicated with their Relationship Manager Team and Customer Service Centre Staff at The Royal Bank of Scotland for specific reviews of banking service requirements and to address more specific operational and service issues.

2.15. The Council’s banking service contract was due to expire on 31 May 2018. A procurement exercise was undertaken and appointed The Royal Bank of Scotland as the banking services provider from 1 June 2018.

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2.16. Formal strategy meetings also took place with the Council’s Treasury Management advisors, Link Asset Services, who acquired Capita Asset Services. The Relationship Team remained unchanged and there was regular on-going communication on various treasury matters. Council staff also attended seminars delivered by Link Asset Services throughout the year and Link Asset Services delivered in-house Member Training in May 2018.

Indicators of Prudence

2.17. The Council’s capital expenditure plans are the key driver of treasury management activity. Prudential and Treasury Indicators are relevant for the purposes of setting an integrated treasury management strategy, the objective being to ensure, within a clear framework, that the capital investment plans are affordable, prudent and sustainable, and that treasury management decisions are taken in accordance with good professional practice.

2.18. When the Council undertakes capital expenditure, the financing of such may either be financed immediately through the application of capital or revenue resources, which has no resultant impact on the Council’s borrowing need, or, if insufficient financing is available or a decision is taken not to apply the resources, the capital expenditure will give rise to a borrowing need.

2.19. The Council’s underlying need to borrow for capital expenditure is termed the Capital Financing Requirement (CFR). It is, in essence, the total historic outstanding capital expenditure that has not yet been paid for from either revenue or capital resources. The term ‘financing’ does not refer to payment of cash but the resources (capital grants, receipts and contributions or direct charges to revenue) that are applied to ensure that any underlying amount arising from capital expenditure is dealt with absolutely, whether at the point of spend, or over the longer term. The Council’s CFR will therefore increase whenever capital expenditure is incurred but not resourced immediately and will reduce by applications of capital grants, receipts and contributions or future charges to revenue.

2.20. The CFR includes other long-term liabilities in respect of Private Finance Initiative (PFI) schemes and finance leases. Whilst these increase the Council’s CFR and therefore the overall borrowing requirements, these contracts include a borrowing facility and the Council is not required to separately borrow for such. At 31 March 2018, the Council’s finance lease liability in respect of PFI schemes is £60.207m (£62.179m as at 31 March 2017).

2.21. The Council’s capital expenditure for 2017/18 and CFR as at 31 March 2018 is detailed below. The Council is currently maintaining an under-borrowed position. This means that the capital borrowing need has not been fully funded with loan debt as cash supporting the Council’s reserves, balances and cash-flow has been used as a temporary measure and supplemented by a level of temporary borrowing.

Capital Expenditure as at 31 March 2018

Actual Estimated

General Services £19.602m £17.051m

Housing Revenue Account £18.326m £8.798m

Total £37.928m £25.849m

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Capital Financing Requirement as at 31 March 2018

Actual Estimated

General Services £204.571m £213.570m

Housing Revenue Account £52.332m £50.158m

Total Capital Financing Requirement £256.903m £263.728m

PFI/PPP Liability (£60.207m) (£60.207m)

Underlying Borrowing Requirement £196.696m £203.521m

2.22. The over-arching objective is to ensure that gross debt (i.e. the sum of external borrowing and other long-term liabilities relating to the financing of capital expenditure) is kept within sustainable, prudent limits. In order to ensure that over the medium term debt will only be for a capital purpose, the Council should ensure that gross debt does not, except in the short-term, exceed the total of the capital financing requirement in the preceding year plus the estimates of any additional capital financing requirement for the current and next two financial years. This allows some flexibility for limited early borrowing for future years, but also ensures that borrowing is not undertaken for revenue purposes.

2.23. The CFR and gross debt position as at 31 March 2018 is detailed below:

Gross Debt and the Capital Financing Requirement

Long-Term Borrowing £136.409m

Temporary Borrowing £20.000m

Gross Borrowing £156.409m

Other Long-Term Liabilities (PFI/PPP) £60.207m

Gross Debt £216.616m

Actual Capital Financing Requirement £256.903m

Under-Borrowed Position £40.287m

2.24. The Council has complied with this prudential indicator and the fact that gross debt is less than the CFR confirms that there has been no borrowing in advance of need.

Indicators of Affordability

2.25. Indicators of affordability address the revenue implications of the Council’s financial strategy since, as a fundamental principal, all the borrowings of an authority are secured on its future revenue income. The fundamental objective in consideration of affordability is to ensure that the level of investment in capital assets remains within sustainable limits.

2.26. The ratio of financing costs to net revenue stream is an affordability measure of the proportion of the budget that is allocated to the financing of capital expenditure. For the General Fund, this is the ratio of financing costs of borrowing against net expenditure financed by government grants and local taxpayers. For the Housing Revenue Account (HRA) it is the ratio of financing costs to housing rent income.

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Ratio of Financing Costs to Net Revenue Stream

Actual Estimated

General Services 9% 10%

Housing Revenue Account 17% 19%

2.27. The incremental impact on Council Tax, and Housing Rents for HRA, is an affordability measure which represents the revenue impact of capital investment decisions, effectively demonstrating the incremental impact of planned capital expenditure and associated borrowing on Council Tax and Housing Rents compared to the Council’s existing commitments and current plans.

Incremental Impact on Council Tax and Housing Rents (per week)

GS HRA

17-18 Financing Costs / Council Tax / Housing Stock £9.00 £11.46

16-17 Financing Costs / Council Tax / Housing Stock £9.97 £11.67

Incremental Impact (£0.97) (£0.21)

2.28. It is important to consider these figures in the context of the Council’s overall budget and capital expenditure plans and commitments.

2.29. For General Services, the capital programme is approved at the same time a balanced budget is set, effectively reflecting the revenue implications of the capital programme. The revenue budget takes account of the level of support for capital expenditure, provide by the Scottish Government in terms of capital grant and continued loans charges support. Capital expenditure in excess of this level of support would only be undertaken if the additional borrowing costs can be covered in full by a corresponding revenue saving or generation of a future revenue income stream. It is therefore considered that the current capital expenditure proposals are affordable without requiring any specific additional Council Tax increase. The above figures are showing as a reduction due to the capital programme outturn being lower than expected and loans charges savings generated by delaying long-term borrowing.

2.30. For HRA, the incremental impact is considered insignificant i.e. effectively no incremental impact, as the capital programme expenditure plans are reducing and levelling as the programme moves towards a level which is financed predominantly by the HRA, with new borrowing being reserved for expenditure which will generate additional income to contribute to the resultant borrowing costs and not therefore increase the indebtedness of existing tenants.

Treasury Indicators

2.31. The treasury management function ensures that the Council’s borrowing and investments are organised to ensure adequate liquidity for the Council’s revenue and capital activities, security for investments and to manage risks within all treasury management activities.

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2.32. The first key treasury management indicator is that the Council has adopted the CIPFA Treasury Management in the Public Services Code of Practice and Cross-Sectoral Guidance (the 2011 Treasury Management Code). The Council has adopted this Code within its’ Treasury Management Policies and Practices and confirms compliance with this indicator.

2.33. At 31 March 2018, the Council’s borrowing portfolio comprised long-term borrowing of £136.409m (average rate 5.56%) and temporary borrowing of £20.000m (average rate 0.61%), giving a total of £156.409m (average rate 4.93%). A summary of the Council’s outstanding borrowing is detailed below:

Borrowing Portfolio Average %

Long-Term

PWLB Maturity £128.821m 5.69%

L1 Renewables Financing £7.302m 3.61%

SALIX Interest Free Loans £0.286m 0.00%

Temporary £20.000m 0.61%

Total Borrowing £156.409m 4.93%

2.34. The calculation of upper and lower limits in respect of the maturity structure of borrowings is designed to manage the risk of having to refinance debt at a time in the future when interest rates may be volatile or uncertain and avoid large concentrations of fixed rate debt within the same maturity structure. The maturity structure of the Council’s borrowing portfolio is detailed in the following table (the approved lower limit for each band was zero percent):

Maturity Structure of Borrowings – Long-Term only

approved upper limit Amount Actual %age

Under 1 year 30% £2.470m 2%

1 – 2 years 30% £4.419m 3%

2 – 5 years 30% £9.320m 7%

5 – 10 years 40% £25.866m 19%

10 – 20 years 45% £11.068m 8%

20 – 30 years 45% £3.357m 2%

30 – 40 years 45% £36.970m 27%

40 years & over 100% £42.939m 32%

Total £136.409m

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Maturity Structure of Borrowings – Long-Term & Temporary

approved upper limit Amount Actual %age

Under 1 year 30% £22.470m 14%

1 – 2 years 30% £4.419m 3%

2 – 5 years 30% £9.320m 6%

5 – 10 years 40% £25.866m 17%

10 – 20 years 45% £11.068m 7%

20 – 30 years 45% £3.357m 2%

30 – 40 years 45% £36.970m 24%

40 years & over 100% £42.939m 27%

Total £156.409m

2.35. The average number of years to maturity of the long-term element of the borrowing portfolio i.e. excluding temporary borrowing is 27.73 years and the maximum amount of debt maturing in any one year is 20% (2057/58).

2.36. The inclusion of temporary borrowing has the effect of reducing the number of years to maturity to 24.25 years and the amount of debt maturing in any one year increases to 17% (2057/58), reflecting the nature of the temporary borrowing and the fact that it is all short-term, repayable within one year.

2.37. The Council’s authorised limit for external debt reflects a level of debt, which whilst not desired, could be affordable in the short-term but may not be sustainable in the longer term. In effect, it is the outer boundary of the Council’s debt but should not be treated as an upper limit for capital expenditure alone as it must also encompass temporary borrowing requirements. The operational boundary for external debt is an estimate of the most likely i.e. prudent, but not worst case scenario and represents the limit beyond which external debt is not normally expected to exceed.

2.38. During the year, the Council kept within its authorised external borrowing limit and operational boundary for external borrowing as detailed below:

Authorised Limit for External Debt (approved) £275.023m

Operational Boundary for External Debt (approved) £273.776m

Actual External Debt:

Long-Term Borrowing £136.409m

Temporary Borrowing £20.000m

Other Long-Term Liabilities £60.207m £216.616m

2.39. The Council is also required to demonstrate an understanding between its gross debt and net debt positions, and where the two differ significantly, explain the reasons and policy for such as this serves as an indicator to identify whether the Council may be borrowing in advance of need. The gross and net debt positions for 2017/18 are detailed below:

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Gross Debt and Net Debt

General Services £216.616m

Housing Revenue Account £206.491m

2.40. The difference between the two is £10.125m and effectively represents the Council’s long-term investments and amounts held as cash and cash equivalents. This is not considered significant as the Council’s level of investment balances has reduced significantly in recent years and cash is only being held for operational purposes.

2.41. The setting of upper limits in terms of the interest rates is designed to limit the Council’s exposure to both fixed and variable interest rate movements, thereby managing risk and reducing the impact of any adverse movements in interest rates.

2.42. The Council’s long-term borrowing portfolio currently comprises only fixed interest rate loans. In terms of the Council’s temporary borrowing, the loans comprise a number of short-term fixed interest rate loans which on the basis of the interest rate, would fall within the fixed interest rate exposure category. However, given the short-term nature of these loans and the interest rate risks that could present should they require to be replenished with further temporary borrowing, or replaced with longer term loans, these could also legitimately be considered within the variable interest rate exposures.

2.43. This prudential indicator is therefore calculated separately for each instance:

Actual % Approved %

Temporary Borrowing classed as Fixed Rate

upper limit for fixed interest rate exposures 104% 120%

upper limit for variable interest rate exposures -4% 20%

Temporary Borrowing classed as Variable Rate

upper limit for fixed interest rate exposures 91% 120%

upper limit for variable interest rate exposures 9% 20%

The Local Authority (Capital Financing and Accounting) (Scotland) Regulations 2016 – Loans Fund Accounting.

2.44. The 2016 Regulations require the Council to maintain a statutory loans fund which is to be administered in accordance with these Regulations, proper accounting practices and prudent financial management. The statutory loans fund reflects the Council’s underlying need to finance, by borrowing money, the expenditure incurred in any financial year on those purposes set out in the 2016 Regulations; the balance of the loans fund at 31 March each year will represent the amount of past expenditure financed by borrowing money that the Council has a liability to meet from future revenue budgets.

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2.45. The Council is required to set outs its policy for the statutory repayment of loans fund advances prior to the start of the financial year. The Treasury Management Financial Strategy for 2017/18 approved the following policy on the repayment of loans fund advances and new loans fund advances for 2017/18 were made on this basis:

2.45.1. For loans fund advances made before 1 April 2016, the policy will be to maintain the practice of previous years and apply the Statutory Method, will all loans fund advances being repaid by the annuity method.

2.45.2. For loans fund advances made after 1 April 2016, the intended policy will be to continue with the current practice and apply the Statutory Method, with loans fund advances being repaid by the annuity method, subject to this continuing to reflect a prudent repayment of loans fund advances for the capital expenditure that the Council incurs. This statutory method may be used for a transition period, of 5 years until 31 March 2021, at which time the Council will be expected to apply an alternative policy based on depreciation, asset lives or funding/income profiles.

2.46. The annuity rate applied to loans fund repayments in a particular financial year is currently based on the actual loans fund pooled rate for that financial year. It is considered that this rate will continue to provide a fair and prudent reflection of principal repayments, associated with the use of assets, and will continue to be used whilst the annuity method is applied. For 2017/18, the loans fund pooled rate was 4.21% (2016/17 4.42%).

2.47. The loans fund balances at 31 March 2018, and associated breakdown of such, for General Services and HRA are detailed in Appendix 1. The estimated figures are those included in the Treasury Management Financial Strategy 2018/19 Appendix 7, based on capital programme estimates at the time this paper was prepared. The actual figures are different from estimates due to project slippage / re-profiling.

Investment

2.48. The Council’s investment policy is governed by the Local Government Investment (Scotland) Regulations 2010 (and accompanying Finance Circular 5/2010 The Investment of Money by Scottish Local Authorities) and the Council’s permitted investments for 2017/18 were set out in the Annual Investment Strategy contained within the Treasury Management Financial Strategy 2017/18.

2.49. Investment activity during the year conformed to the approved strategy; no activities were considered ultra vires.

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2.50. Details of the Council’s permitted investments as at 31 March 2018 are detailed below:

Permitted Investments

Treasury Investments

Deposits with UK full / part nationalised institutions £5.000m

Deposits with Debt Management Office £1.400m

Non-Treasury Investments

Investment properties (net book value of assets at 31/03/18) £1.306m

Home Loans £0.679m

Loans to third parties [Stirling Waterfront NHT] £1.569m

Loans to third parties [Steadfast Homes LLP] £9.631m

Long-Term Investments £1.814m

3. Implications

Equalities Impact

3.1. The contents of this report were assessed under the Council’s Equality Impact Assessment process. It was determined that an Equality Impact Assessment was not required as this report is a technical report, to provide an annual treasury management review of activities and present the actual prudential and treasury indicators for the year and therefore demonstrate compliance with the Council’s previously approved treasury management policies, practices and strategy. It does not have any implications on current policies or service delivery.


3.2. There is no direct sustainability impact as a result of this report.

3.3. There is no impact on the Council’s duty relating to climate change.


3.4. Following consideration of the policy implications of this report no relevant issues have been identified. The strategy in itself sets out the impact and ascertains the Council’s Treasury Management Strategy and any associated risks.

Consultations

3.5. The Council undertakes regular consultations with its treasury management advisors and banking services provider.

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4.1. Revenue Budget and Determination of Council Tax 2017/18 – Stirling Council – 23 February 2017.

4.2. Treasury Management Financial Strategy 2017/18 – Finance & Economy Committee – 2 March 2017.

4.3. Treasury Management Financial Strategy 2018/19 – Finance & Economy Committee – 1 March 2018.

4.4. EqIA Relevance Assessment Form.

5. Appendices

5.1. Appendix 1 – Loans Fund Balance and Repayments as at 31 March 2018.

Author of Report:

Linda Devine Senior Accountant – Corporate Accounting

Contact Details:


Approved by:

Jim Boyle, Chief Finance Officer

Date: 6June 2018

Signature:


Cllr Margaret Brisley, Cllr Alison Laurie

Wards affected: All

Key Priorities: N/A

Key Priority Considerations: N/A


N/A

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APPENDIX 1

LOANS FUND BALANCE AND REPAYMENTS AS AT 31 MARCH 2018

2016/17 2017/18 2017/18

Actual Estimate Actual

General Services (GS)

130,633,296 Opening Balance 1 April 136,080,987 136,080,987

12,164,290 New Advances 4,244,944 5,268,589

(6,716,599) Repayments (6,116,522) (6,116,522)

136,080,987 Closing Balance 31 March 134,209,409 135,233,054

HRA

49,023,834 Opening Balance 1 April 48,719,582 48,719,582

955,201 New Advances 4,133,000 4,960,925

(1,259,453) Repayments (1,297,064) (1,342,373)

48,719,582 Closing Balance 31 March 51,555,518 52,338,135

Balance at 31 March 2017 GS HRA

within 1 year 5,965,444 1,507,055

2 - 5 years 14,665,940 6,916,941

5 - 10 years 19,130,614 8,817,776

10 - 15 years 25,502,162 8,423,772

15 - 20 years 30,402,204 8,329,958

20 - 25 years 17,185,771 4,418,584

25 - 30 years 6,754,251 2,685,819

30 - 35 years 5,326,829 2,521,629

35 - 40 years 5,129,650 3,196,337

40 - 45 years 2,696,593 3,946,093

45 - 50 years 1,395,944 1,574,171

50 - 55 years 1,077,651 0

55 - 60 years 0 0

Total 135,233,054 52,338,135

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Date of Meeting:

14 June 2018

Not Exempt

“Towards Commercial Excellence”: Commissioning & Procurement Annual Report 2018

Purpose & Summary

Section 15 of the Procurement Reform (Scotland) Act 2014 (hereinafter referred to as “the Act”) requires any public organisation which has an estimated regulated spend of £5m or more in any financial year to develop, publish and review a procurement strategy annually. The Act also requires public organisations, from 2018 onwards, to publish an Annual Report on its regulated procurement activity in the previous financial year as soon as reasonably practicable after the financial year end.

The purpose of this report is to seek approval for Stirling Council’s first Commissioning & Procurement Annual Report which will enable Stirling Council to comply with mandatory requirements as laid out in the Act.

Recommendations

Committee is asked to

1. note the content of this report and approve Stirling Council’s “Towards CommercialExcellence” Commissioning & Procurement Annual Report 2018.


There are no additional resource implications.


Stirling Council is legally required to have an Annual Procurement Report in place, published and made available online and notified to Scottish Ministers in terms of the Procurement Reform (Scotland) Act 2014, which came into effect on 18 April 2016. Failure to do so would result in regulatory non-compliance.

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1. Background

1.1. Stirling Council’s influencable external spend is in excess of £100m each year on goods, services and works.

1.2. The Council’s Strategic Commissioning Team (SCT) provides advice, support and tendering services to internal customers to ensure the Council’s purchasing, legal and commercial requirements are met.

1.3. SCT has a crucial role to play in both helping the Council to achieve its budgeted savings targets and delivering wider benefits, through the use of procurement to promote sustainability and fair work practices, to support the local economy and to deliver improvements for the citizens and communities of Stirling.

1.4. Since 18 April 2016 the Council delivered these benefits through “Towards Commercial Excellence”: Stirling Council’s Procurement and Commissioning Strategy 2016-17.

1.5. Stirling Council is under a statutory obligation in terms of Section 18 of the Procurement Reform (Scotland) Act 2014 to publish an Annual Report as soon as reasonably practicable after the end of each financial year. Annual Reports published within four months of the end of any Authority’s financial year will be included in analysis that will inform the Scottish Ministers’ Annual Report on procurement activity in Scotland.

1.6. The Annual Report at Appendix 1 sets out Stirling Council’s performance and achievements in delivering on the objectives set out in “Towards Commercial Excellence: Stirling Council’s Commissioning & Procurement Strategy 2016-17”.

2. Considerations

2.1. “Towards Commercial Excellence”: Stirling Council’s Commissioning and Procurement Strategy 2016-17 states Stirling Council’s vision for SCT: “Our vision is to provide a transformational procurement function that can offer commercial, procurement and commissioning best practice as standard and routinely delivers outstanding outcomes for Stirling Council”. The Strategy also set out a number of actions which would enable SCT to deliver this vision.

2.2. The Annual Report provides an opportunity for Stirling Council to demonstrate to stakeholders that their procurement spend is being used to best effect to achieve:-

2.2.1. better public services;

2.2.2. social, economic and environmental outcomes in their area; and

2.2.3. a range of local and national objectives and policies (e.g. those relating to tackling inequality and meeting climate change obligations).

2.3. The Annual Report provides a summary of the key statistics demonstrating the performance of the SCT during both 2016/17 and 2017/18 financial years.

2.4. The Annual Report also contains:-

2.4.1. a summary of the regulated procurements completed during the year;

2.4.2. a review of whether those procurements complied with “Towards Commercial Excellence”: Stirling Council’s Commissioning and Procurement Strategy 2016-17;

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2.4.3. where any procurements did not comply, a statement of how Stirling Council intends to ensure future regulated procurements do comply;

2.4.4. a summary of any community benefit requirements imposed as part of a regulated procurement that were fulfilled within the year;

2.4.5. a summary of any steps taken to facilitate involvement of supported businesses; and

2.4.6. a summary of regulated procurements Stirling Council expects to commence in the next 2 financial years.

2.5. The following items are of particular note:-

2.5.1. Localism has decreased from 23.24% in 2016/7 to 18% in 2017/18. However, Stirling Council is, in fact, using more local suppliers and sub-contractors than this figure suggests. Localism is currently calculated using the Spikes Cavell reporting tool. This is the recognised procurement industry standard tool. However, Spikes Cavell base their localism data on the supplier’s registered office postcode. A supplier’s registered office is often a commercial specialist Firms of Solicitors or Accountants acting on behalf of the supplier. Therefore, whilst the tool does provide a mechanism for comparison between the performance of Local Authorities across Scotland, the figures are skewed in favour of the main Scottish cities, particularly Edinburgh, Glasgow, Aberdeen & Inverness, where the highest concentration of registered office addresses are located. Accordingly, this approach provides a limited view of the impact of Stirling Council’s spending in the local area. Therefore, for future reporting, the Strategic Commissioning Team will endeavour to devise a methodology to calculate localism which is meaningful to Stirling and its citizens.

2.5.2. Whilst there is a statutory obligation to consider community benefits for all procurement processes with a value in excess of £4m in value, the Sustainability Duty often results in the inclusion of community benefit requirements in contracts with lower values. For example, although Stirling Council did not award any contracts in excess of the £4m threshold in 2016/17, to date we have delivered a range of wider benefits in addition to the core purpose of the relevant contract. A summary of the community benefits achieved via each of the Regulated Procurements in 2016/17 is annexed at Appendix 3 of the Annual Report at Appendix 1 to this Report. Going forward, as part of Stirling Council’s Commissioning & Procurement Strategy 2018-21, community benefits has been identified as an area of work which would benefit from a fully revised approach and it is expected that this will be achieved by Q4 of 2018/19. By revising and developing a Community Benefits Policy, we aim to further embed our commitment to the use of community benefit clauses in as wide a range of contracts as possible, as well as streamlining our processes for monitoring, reporting and tracking the delivery of social, economic and environmental value that we have achieved. In addition, through taking a place-based approach we will seek to maximise the impact of community benefit outcomes delivered via our contracts for our communities.

2.6. Going forward, the SCT will continue to deliver benefit through “Towards Commercial Excellence: Stirling Council’s Commissioning & Procurement Strategy 2018-2021”. Performance and achievements in delivering on the objectives set out in this Strategy will be reported to Finance & Economy Committee annually from 2019 onwards.

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3. Implications

Equalities Impact

3.1. The contents of this report were assessed under the Council’s Equality Impact Assessment process. It was determined that an Equality Impact Assessment was not required as the Annual Report reports progress on the objectives set out in the 2016-17 Commissioning & Procurement Strategy. Impact on equalities groups will be considered separately in every piece of procurement activity.


3.2. This report relates to an Annual Report on progress, therefore it was determined that a full Strategic Environmental Assessment was not required.


3.3. There are no policy implications as this Annual Report simply reports on progress to date.

Consultations

3.4. None.


4.1. Equality Impact Assessment Relevance Check.

5. Appendices

5.1. Appendix 1 - “Towards Commercial Excellence” Commissioning & Procurement Annual Report 2018.

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Author of Report:

Jennifer Baird, Category Manager – Services for People, Strategic Commissioning & Customers

Contact Details:


Approved by:

Isabel McKnight, Chief Officer - Strategic Commissioning & Customer Development

Date: 4 June 2018

Signature:

Details of Convener(s), Vice Convener(s), Portfolio Holder and Depute Portfolio Holder consulted on this report

Wards affected: All

Key Priorities: D - We will deliver inclusive economic growth and promote prosperity. We will deliver a City Region Deal and pursue policies and solutions that encourage high quality, high paying jobs into all of Stirling's communities.

Key Priority Considerations: Working in close partnership with our key partners we will secure the future of Stirling’s economy through continued development of high-growth sectors such as digital and aquaculture, whilst supporting the development and growth of our traditional sectors, to ensure Stirling has a sustainable economic base.

We will ensure local companies, of all sizes, have the support to compete successfully for public sector contracts.

We will ensure Stirling’s economic strategy promotes and enhances Stirling’s key sectorial strengths.

Local Outcome Improvement Plan Priority Outcomes:

Prosperous - People are part of a prosperous economy that promotes inclusive growth opportunities across our communities

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Appendix 1

‘Towards Commercial Excellence’:

Stirling Council’s Commissioning and Procurement Annual Report 2018

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Contents 1. Introduction ............................................................................................................................................................................................................................. 3

2. Procurement Strategy 2016‐17 ................................................................................................................................................................................................ 4

3. Key Statistics ............................................................................................................................................................................................................................ 5

4. Regulated Procurements in 2017‐18 ....................................................................................................................................................................................... 6

5. Procurement & Commercial Improvement Programme (PCIP) ............................................................................................................................................... 7

6. Procurement Strategy 2018‐21 ................................................................................................................................................................................................ 7

7. Community Benefit .................................................................................................................................................................................................................. 8

8. Supported Businesses .............................................................................................................................................................................................................. 9

9. Consultation and Engagement .............................................................................................................................................................................................. 10

10. Future Regulated Procurements 2018 – 2020. .................................................................................................................................................................. 10

11. Strategy Ownership & Contact Details .............................................................................................................................................................................. 10

12. Appendices ......................................................................................................................................................................................................................... 11

Appendix 1: Glossary of Terms

Appendix 2: Achievements against 2016/17 Action Plan

Appendix 3: Table 1: List of Regulated Procurements 2017/18

Table 2: List of Regulated Procurements 2017/18 which did not comply with the relevant Procurement Strategy

Appendix 4: List of future Regulated Procurements

Appendix 5: Consultation Responses

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1. Introduction Welcome to “Towards Commercial Excellence: Stirling Council’s Commissioning & Procurement Annual Report 2018”. This is Stirling Council’s first

Annual Report and it sets out our performance and achievements in delivering on the objectives set out in “Towards Commercial Excellence:

Stirling Council’s Commissioning & Procurement Strategy 2016‐17”.

The purpose of this Annual Report is to comply with Stirling Council’s obligations in terms of Section 18 of the Procurement Reform (Scotland) Act

2014 which sets out an obligation on contracting authorities who are legally required to produce a Procurement Strategy in any financial year, to

prepare an annual report on its regulated procurement activities as soon as reasonably practicable after the end of that financial year. Therefore,

the purpose of this Annual Report is to provide the above information for the 2017/18 financial year from Stirling Council’s perspective.

Stirling Council’s Strategic Commissioning Vision is “to provide a transformational commissioning and procurement function that can offer commercial, procurement & commissioning best practice as standard and routinely delivers outstanding outcomes for Stirling Council and its citizens.”

This document is also intended to demonstrate how Stirling Council’s commissioning and procurement activity:‐

delivers our vision;

delivers value for money;

contributes to the achievement of the Council’s broader aims and objectives; and

delivers against the policies and commitments set out in our Procurement Strategy.

It is envisaged that the content of this report will be taken into account, and will inform the high‐level analysis carried out, by Scottish Ministers

when preparing their Annual Report on Procurement Activity in Scotland.

A Glossary of Terms is provided at Appendix 1 for the purpose of consistency.

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2. Procurement Strategy 2016‐17 Towards Commercial Excellence: Stirling Council’s Commissioning & Procurement Strategy 2016/17 was Stirling Council’s first Commissioning &

Procurement Strategy in compliance with the requirements of section 15 of the Procurement Reform (Scotland) Act 2014.

The Strategy set out Stirling Council’s Strategic Commissioning vision in line with Stirling Council’s overarching priorities as well as the following

strategic commissioning and procurement objectives:‐

1. Ensure that all procurement across Stirling Council is performed in a fair, transparent and cost effective manner, and is fully compliant

with all the relevant procurement regulation.

2. Ensure that our procurement processes are in line with recognised best practice in the public sector.

3. Develop staff to generate creative market solutions through a professional, skilled and appropriately resourced procurement function.

4. Ensure that all contracts are proportionately managed during the life cycle of the procurement.

5. Increase our focus on sustainable procurement including the more innovative use of Community Benefits Clauses (CBCs) and targeting

supplier’s corporate social responsibility policies.

6. Continue to improve and develop access to public sector contracts, particularly for Small and Medium sized enterprises, Co‐operatives

and Social Enterprises.

7. Strive to deliver the best possible procurement service by maximising efficiency in our processes, our e‐procurement capability and our

use of collaboration opportunities.

8. Embed the principle of continuous improvement within our procurement methods and processes.

These strategic commissioning and procurement objectives formed the basis of an Action Plan which was set out at Appendix 1 of the Strategy. A

further copy of the Action Plan is set out at Appendix 2 showing progress to date together with corresponding areas for continuous improvement.

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3. Key Statistics

Data Source Financial Year 2016/17

Financial Year 2017/18

Stirling Council Influenceable Spend (gross) (Trade Creditors + Purchase Card spend (net))

Stirling Council Financial Data

£114,292,961 £110,208,151

% of Stirling Council influenceable spend spent via contracts / frameworks held in the Contracts Register

Stirling Council Financial Data

63%

75%* (see Section 4.1 re methodology for calculation)

% of Stirling Council influenceable spend spent with local suppliers

Scottish Government Information Hub

23.24%

18%* (see Section 4.1 re methodology for calculation)

National Average % of influenceable spend spent with local suppliers.


26.66% *unable to provide this data as all Local Authority data is not available in Spikes yet.

% of Stirling Council influenceable spend spent with SMEs.


67.15%

67.41%

Number of suppliers with contracts worth in excess of £1m. Scottish Government Information Hub

18 21

% of Stirling Council influenceable spend spent with suppliers in contracts worth in excess of £1m each.


39% 41%

% of Stirling Council total influenceable spend spent via PECOS (EasyBuy)

Stirling Council Financial Reports

19.5% 24%

% of Stirling Council total influenceable spend spent via Purchase Card Stirling Council Financial Reports

2.5% 0.7%

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4. Regulated Procurements in 2017‐18

4.1 Regulated Contracts Awarded

This section provides a summary of the Regulated Procurements which have been carried out by Stirling Council in 2016/17. The full data is annexed

at Table 1 of Appendix 3. This summary is intended to improve the transparency of our approach to procurement exercises in line with our open an

inclusive outlook.

The Table below sets out a summary of the Regulated Procurements awarded within 2016/17:‐

% of Stirling Council influenceable spend spent via contracts / frameworks held in the Contracts Register

75%

Total Number of Regulated Contracts Awarded 127

Contracted spend is calculated using a comparison between the Spikes Cavell reporting tool and Stirling Council’s Contract Register. The percentage

contracted spend for 2016/17 shows a significant increase in comparison to the previous financial year (2015/16 – 63%). This increase is due to a

number of factors, such as:‐

Refinement of the Contracts Register to provide improved procurement reporting (such as the inclusion of Framework call‐offs);

Data analysis to identify areas of uncontracted spend;

Procurement of key contracts / frameworks;

Strategic Commissioning Team working closely with Service Areas to deliver increased procurement compliance.

Localism is calculated via the Spikes Cavell reporting tool. Spikes Cavell base their data on the Supplier’s registered office address, which is often a

Firm of Solicitors or Accountants acting on behalf of the Supplier. Therefore, whilst the reporting tool does provide a mechanism for comparison

between the performance of Local Authorities across Scotland, the figures are skewed in favour of the main cities, particularly Edinburgh, Glasgow,

Aberdeen & Inverness, where the highest concentration of registered office addresses are located. Accordingly, this approach provides a limited view

of the impact of Stirling Council’s spending in the local area. Therefore, for future reporting the Strategic Commissioning Team will endeavour to

devise a methodology to calculate localism which is meaningful for Stirling and its citizens.

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4.2 Regulated Contracts – Compliance with Strategy

For each regulated Procurement listed in Table 1 of Appendix 3 there is confirmation of whether or not it complied with Towards Commercial

Excellence: Stirling Council’s Commissioning & Procurement Strategy 2016/17. Table 2 of Appendix 3 sets out the regulated procurements which

have not complied with the Procurement Strategy together with the reason that they did not comply and the action which will be taken to ensure

future compliance.

Stirling Council’s Contract Standing Orders (Section 2) sets out the particular circumstances where a waiver of Contract Standing Orders may be

considered for approval by the relevant Senior Officer of the Council in consultation with the Service Manager ‐ Strategic Commissioning. In addition,

Section 2 sets out the relevant process to document the waiver. In each instance, this process has been complied with.

5. Procurement & Commercial Improvement Programme (PCIP) The Procurement & Commercial Improvement Programme (PCIP) is an assessment carried out by Scotland Excel which replaces the previous

Procurement Capability Assessment (PCA). In the new PCIP Assessment there is a renewed emphasis on policies and procedures which drive the

procurement and commercial performance of the whole organisation and the results they deliver. This approach was rolled out across Scottish Local

Authorities in May 2016 and Stirling Council undertook its PCIP assessment in October 2016.

It is important to point out that whilst the PCIP assessment replaces the PCA, the assessment results are not directly comparable due to:‐

New assessment methods;

Different question sets; and

A new scoring regime.

Stirling Council achieved a score of 63. It was recognised that Stirling Council has made significant improvements in driving Commercial Excellence

and investing in the new approach to Commissioning and Procurement.

It is anticipated that the PCIP Assessment will be repeated in 2018/19.

6. Procurement Strategy 2018‐21 Stirling Council has developed “Towards Commercial Excellence: Stirling Council’s Commissioning & Procurement Strategy 2018‐2021” in compliance

with the requirements of section 15 of the Procurement Reform (Scotland) Act 2014.

The Strategy sets out the procurement and commissioning objectives and actions for Stirling Council during this period. It builds on the vision set out

in Stirling Council’s Procurement and Commissioning Strategy 2016‐2017, and the many positive outcomes that we have achieved so far. It was

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informed by relevant and proportionate consultation with stakeholders which was carried out in Autumn 2017. The views of stakeholders are fully

set out at Appendix 2 of the Strategy and have been incorporated into the Action Plan set out therein.

Stirling Council’s Strategic Commissioning vision remains “to provide a transformational commissioning and procurement function that can offer commercial, procurement & commissioning best practice as standard and routinely delivers outstanding outcomes for Stirling Council and its citizens” in line with Stirling Council’s overarching priority to “be a place for everyone to thrive”.

The Strategy sets out the actions which Stirling Council will take to meet the following commissioning and procurement objectives as set out in the

Strategy. The following strategic commissioning objectives are the same as those set out in the previous Strategy as they are still considered to be

the most relevant to enable Stirling Council to achieve its Strategic Commissioning Vision:‐

1. Ensure that all procurement across Stirling Council is performed in a fair, transparent and cost effective manner, and is fully compliant

with all the relevant procurement regulation.

2. Ensure that our procurement processes are in line with recognised best practice in the public sector.

3. Develop staff to generate creative market solutions through a professional, skilled and appropriately resourced procurement function.

4. Ensure that all contracts are proportionately managed during the life cycle of the procurement.

5. Increase our focus on sustainable procurement including the more innovative use of Community Benefits Clauses (CBCs) and targeting

supplier’s corporate social responsibility policies.

6. Continue to improve and develop access to public sector contracts, particularly for Small and Medium sized enterprises, Co‐operatives

and Social Enterprises.

7. Strive to deliver the best possible procurement service by maximising efficiency in our processes, our e‐procurement capability and our

use of collaboration opportunities.

8. Embed the principle of continuous improvement within our procurement methods and processes.

It is envisaged that both the Strategic Objectives and the Action Plan will be reviewed periodically, and amendments will be made where required.

7. Community Benefit The sustainable Procurement Duty, which forms part of the Procurement Reform (Scotland) Act 2014, places sustainable and socially responsible

purchasing at the heart of the commissioning and procurement process. Community Benefit clauses provide a means of achieving sustainability in

public contracts. They may include targeted recruitment and training, social enterprise development, community engagement and development of

SME’s.

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For example, one of Stirling Council’s key strategic priorities is to “deliver inclusive economic growth and promote prosperity”. In order to achieve

this we require to promote a mixed and vibrant economy, supported by an educated, skilled and flexible workforce and improved infrastructure. To

achieve this we may look to include the following targeted community benefits:‐

helping businesses to start up, grow and flourish; making sure that there are enough jobs; ensuring people have the right skills and qualifications.

Whilst there is a statutory obligation to consider community benefits for all procurement processes with a value in excess of £4m in value, the

Sustainability Duty often results in the inclusion of community benefit requirements in contracts with lower values. For example, although Stirling

Council did not award any contracts in excess of the £4m threshold in 2016/17, to date we have delivered a range of wider benefits in addition to the

core purpose of the relevant contract. A summary of the community benefits achieved via each of the Regulated Procurements in 2016/17 is annexed

at Appendix 3.

Going forward, as part of Stirling Council’s Commissioning & Procurement Strategy 2018‐21, community benefits has been identified as an area of

work which would benefit from a fully revised approach and it is expected that this will be achieved by Q4 of 2018/19. By revising and developing a

Community Benefits Policy, we aim to further embed our commitment to the use of community benefit clauses, as well as streamlining our processes

for monitoring, reporting and tracking the delivery of social, economic and environmental value that we have achieved. In addition, through taking

a place‐based approach we will seek to maximise the impact of community benefit outcomes delivered via our contracts for our communities.

8. Supported Businesses Stirling Council’s Contract Standing Orders (Condition 15) facilitate the restriction of participation in any sub‐OJEU Regulated Procurement to

Supported Businesses, subject to the applicable conditions contained in the relevant legislation.

Stirling Council does not currently have any Contracts in place with Supported Businesses. However, Stirling Council encourages participation with

Supported Businesses and currently purchase from Haven Sign Factory on a spot‐purchase basis.

Where a future requirement arises which could readily be fulfilled by a Supported Business, Stirling Council is committed to working with the relevant

organisation/s to contract in this way.

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9. Consultation and Engagement In Autumn 2017, the Strategic Commissioning Team carried out consultation with stakeholders including internal colleagues from a variety of

service areas, suppliers, peer organisations and other stakeholders. The questions were based on Stirling Council’s Procurement & Commissioning

Strategy 2016‐17 and were designed to inform the development of Stirling Council’s Commissioning & Procurement Strategy 2018/21. The

responses received are annexed at Appendix 5 together with a response from the Strategic Commissioning Team to each of the comments made by

Stakeholders.

The Strategic Commissioning Team will carry out a further consultation exercise annually in the Autumn of each year to gather the views of

stakeholders.

In addition to our annual stakeholder consultation, the Strategic Commissioning Team have developed a number of supplier forums. This has been

piloted with social care providers, for example the Care Home Providers Forum and Care at Home Providers Forum. This approach will be rolled out

during 2018/19 to suppliers of other commodities via a Strategic Supplier Forum with a focus on localism.

10. Future Regulated Procurements 2018 – 2020 Appendix 4 provides a summary of the Regulated Procurements which Stirling Council expects to carry out over the forthcoming 2 financial years in

compliance with Section 18(2) of the Procurement Reform (Scotland) Act 2014. Stirling Council is committed to promoting increased engagement

and participation in the public procurement process from Suppliers.

11. Strategy Ownership & Contact Details

Isabel McKnight

Chief Officer ‐ Strategic Commissioning & Customer Development

Old Viewforth, Pitt Terrace Stirling FK8 2ET

Tel: 01786 233389

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12. Appendices

Appendix 1: Glossary of Terms

Term Definition

Circular Economy

A circular economy is an alternative to a traditional linear economy (make, use, dispose) in which we keep resources in use for as long as possible, extract the maximum value from them whilst in use, then recover and regenerate products and materials at the end of each service life.

Commodity Classification for all items which the Council procures, to give Stirling Council the ability to accurately describe the primary business activities of their suppliers. The commodity approach presently used by Stirling Council was defined in 2016.

Community Benefit

Community benefits are requirements which deliver wider social or environmental value in addition to the core purpose of the contract.

Community Benefit Clauses

Community benefit clauses are contractual requirements which deliver wider benefits in addition to the core purpose of the contract. These clauses can be used to build a range of economic, social and / or environmental conditions into the delivery of public sector contracts.

Co‐operative An autonomous association of people who have come together voluntarily to meet a common economic, social and/or cultural need and aspirations through a jointly‐owned and democratically controlled enterprise.

Cost avoidance The act of eliminating costs or preventing their occurrence in the first place.

Contract and Supplier Management

Contract & Supplier Management is the management of contracts made with external suppliers. Contract management activities can be divided into three main areas: service delivery management, relationship management and contract administration.

CSM Framework This is the tool which is used to carry out Contract & Supplier Management.

Regulated Procurement

A procurement with a value in excess of £50,000 which is regulated in terms of the Procurement Reform (Scotland) Act 2014.

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Social Enterprises

A revenue‐generating business with primarily social objectives whose surpluses are re‐invested for that purpose in the business or in the community, rather than being driven by the need to create profit for shareholders and investors.

Savings The payment of lower prices for the same goods, services and works than previously.

Supported Business/es

Either the organisation's main aim should be the social and professional integration of disabled or disadvantaged persons, or the contract should be performed within a sheltered employment programme.

Sustainable Procurement

Sustainable procurement as a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment.

Whole‐life Costing

Whole life costing is a technique which takes into account the total cost of ownership of a product or service over its lifetime, from concept through to disposal including purchase, hire or lease, maintenance, operation, utilities, training and disposal.

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Appendix 2: Achievements against 2016/17 Action Plan

No. Action Target Date Progress Comments on Progress Areas for Improvement

1. Update Stirling Council Contract Standing Orders.

November 2016

COMPLETE CSO’s were updated in 2017 and approved by Stirling Council on 24th May 2017.

CSO’s should remain under review annually to ensure appropriateness and accuracy.

1.b Development of Contract Register October 2016 COMPLETE Streamlined model of Register developed June 2016. Data populated by September 2016.

Consistency of applying frameworks and devolved procurement exercises to the Contract Register.

2a. Implement new procurement standard forms and processes.

September 2016

ONGOING New forms completed September 2016, rolled out to Team in October 2016. Reviewed December 2017 and updated appropriately.

Procurement standard forms and processes should remain subject to regular review to ensure continuous improvement.

2b. Develop a Procurement Manual

November 2016

COMPLETE Procurement Manual developed and implemented.

Procurement Manual should remain subject to regular review to ensure continuous improvement.

3. Continue to develop and implement our Strategic Training Plan

December 2016

ONGOING Identified training needs will be picked up via PRD’s and will feed in to Service Training Plan.

Service Training Plan should remain subject to regular review to ensure continuous improvement.

Development and delivery of Modular Management Training.

3b. Continue to recruit Modern Apprentices and Graduate Interns

March 2017 ONGOING Graduate Intern programme completed April 2017 with 1 member

This option to be considered for all suitable vacancies on an ongoing basis.

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of staff employed permanently.

4. Develop and Implement new Contract and Supplier Management (CSM) processes

August

2016

PARTIALLY COMPLETED New CSM framework and associated processes developed. Full paper to be taken to Finance & Economy Committee in Autumn 2018.

Technical solution to support CSM framework still under consideration.

5. Promote the use of Community Benefits Clauses

Ongoing PARTIALLY COMPLETED New CB Tracker agreed September 2016.

Revised approach to Community benefit identified as a priority for 2018/1021 Strategy.

6. Complete Commercial Excellence Project to improve links to SMEs and the third sector, demystifying the procurement process.

March 2017 COMPLETE Separate action plan exists for Commercial Excellence. Status Reports made monthly to Transformation Board.

7a. Complete the Implementation of P2P Project throughout the Council by March 2017 and facilitate the implementation of Electronic invoicing.

March 2017 COMPLETE Rollout now complete across Stirling Council. P2P Team supporting business as usual with the exception of final close‐out in Adult Social Care due to technical issues with SWIFT interface.

Some process re‐engineering required in Q1 /Q2 2018/19 to support change in business systems to increase efficiency, in particular with reference to the SWIFT interface.

7b In tandem with completion of our P2P Project, start work on the next stage of our e‐procurement strategy, developing PCS‐Tendering and increasing use of collaborative and framework contracts.

April 2017 PARTIALLY COMPLETED Use of collaborative and framework agreements increasing throughout 16/17.

Ongoing increase in use of collaborative and framework agreements increasing throughout 18/19.

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PCS‐T partially implemented April 2018.

Full roll‐out of PCS‐T to procurement professionals expected by Q3 2018/19.

7c. Development of Category Management Strategies

December 2017

ONGOING Learning Disability and Mental Health Commodity Strategies in place and approved via integration Joint Board.

Development of remainder of Commodity Strategies based on analysis of spend.

8a Develop a clear route for stakeholders to provide feedback into procurement

March 2017 COMPLETE Stakeholder consultation carried out in Autumn 2017 and annually thereafter. Outcomes reported in Commissioning & Procurement Strategy.

Further consultation due in Autumn 2018.

8b Monitor our procurement objectives, actions and KPIs

Monthly ONGOING Monthly monitoring by SPS Management Team.

Reporting to CMT and Members as required

Reporting of objectives, actions and KPIs via COVALENT.

8c Work towards the targets set out in the Procurement Action Plan

Quarterly PARTIALLY COMPLETED As above. As above.

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Appendix 3: Regulated Procurements in 2016/17

Table 1: 2016/17 Regulated Procurements

Reference Title Supplier Name

Contract Value (£)

Award Date Start Date End Date Extensions

Complied with Strategy

Community Benefits

SC1617 ‐0048

Grass Cutting 7 Other Vegetation Cutting William Owen & Sons

£280,000 26/03/2017 03/04/2017 31/03/2020 12 months Yes

None

SC1617‐0003

Lone Working Solution Rocksure Systems Ltd

£150,000 06/04/2017 10/04/2017 31/03/2019 12 months Yes

None

SC1617‐0143

Catering Disposables / Catering Insulated Containers / Catering Sundries

Alliance Disposables Ltd / Nisbets (2 lots)

£120,000 12/04/2017 01/05/2017 31/07/2019 12 months Yes

None

WV‐0007 Paths Network Central Scotland Green Network Trust

£150,000

19/12/2017 01/01/2018 31/12/2020

None No

None

VW‐0023

Intensive Support Service for Young People Includem

£675,272

03/10/2017 29/05/2017 28/05/2019

None

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SC1617‐0043

Education & Office Furniture

Apleona Hsg Limited; Atlas Business Interiors Ltd; Azzurro Ltd; British Thornton ESF Ltd; City Building Contracts LLP (RSBi); Claremont Office Furniture Ltd; Educational & Municipal Equipment Ltd (T/A EME Furniture); Equip4work Ltd T/a Office Furniture Online; Findel Educational Supplies Limited; Furniture @work Ltd; Godfrey‐syrett Limited; Gopak Ltd; Gts Central Ltd; Langstane Press Limited; Sharp Business Systems Uk Plc; Sico Europe Ltd; Spaceright Europe Ltd; The Consortium for Purchasing and Distribution Ltd; Wagstaff Bros Ltd (T/A Wagstaff Interiors Group); Wagstaff School Furniture; Yorkshire Purchasing Organisation

£388,000 09/05/2017 09/05/2017 29/02/2020 12 months Yes

None

SC1617‐0179

Local Bus Service ‐ C12

Midland Bluebird Limited

£71,720 11/05/2017 12/06/2017 01/08/2020 none Yes

Winning tenderer participates in a number of community benefits schemes nationally and provided a commitment to work with the Council on options in relation to this contract.

C&F

Residential Care & Education Services Framework Agreement

House of Falkland Ltd

£76,086 11/05/2017 18/05/2017 ongoing none Yes

None

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SC1617‐0099

Fixed Line Telephony

Vodafone Limited

£288,000 19/05/2017 19/05/2017 31/03/2019 6 months Yes

None

SC1617‐0107

Sheriff Officer & Debt Collection

Alex M Adamson LLP

£240,000 24/05/2017 24/05/2017 31/03/2020 24 months Yes

None

SC1617‐0042

Personal Protective Equipment

Alexandra (MWUK Ltd); Allison & Stiven Ltd; Arco Ltd; Bunzl UK Ltd; Cleaning & Wiping Supplies Ltd; Corston Sinclair Limited; D Gibson Road & Quarry Services Ltd; Donside Group LLP; GTS Central Ltd; Ioma Clothing Company Ltd; JBS Group (James Boylan Safety NI Ltd); Loin Safety; Mckinlay Workwear Supplies (Morna Laird Ltd); Mo & Co (UK) Ltd; Protective Wear Supplies Ltd; Rexel UK Limited; Scott Direct Limited; Stax Trade Centres Plc; The Guthrie Group Ltd; Unico Limited; Willis Safety (WC Willis & Co Ltd)

£547,500 02/06/2017 02/06/2017 28/02/2019 24 months Yes

None

SC1617‐0102

Integrated HR/Payroll System (Hosted)

Midland HR (Midland Software Ltd)

£957,108 14/06/2017 20/06/2016 19/06/2021 60 months Yes

None

SC1617‐0174

Labour for the Installation of PVCu Windows to Council House properties

The McDougall Group

£117,560 07/07/2017 10/07/2017 30/09/2018 none Yes

None

SC1617‐0177

Traffic Count Services / Installation of Inductive Loops

Streetwise Services Ltd / CA Traffic Ltd

£105,890 14/07/2017 17/07/2017 31/05/2019 12 months Yes

None

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CHS/258/17 Falkirk Council

Forth Valley Family Support

Scottish Families Affected by Alcohol and Drugs

£64,000 20/07/2017 01/09/2017 31/08/2018 12 months Yes

None

SC1617‐0038

Tenant Support Services

TPAS Scotland

£184,914 24/07/2017 01/08/2017 31/07/2020 24 months Yes

None

SC1617‐0025

Raploch Regeneration Proposal Pre Construction Delivery Agreement Works

Robertson Construction Group Limited

£1,200,000 26/07/2017 04/08/2017 30/04/2018 none Yes

None

SC1617‐0165

Decoration Allowance Vouchers

PPG Architectural Coatings UK Ltd

£160,000 31/07/2017 01/08/2017 31/07/2019 24 months Yes

None

SC1617‐0055

Independent Advocacy

Forth Valley Advocacy

£1,500,000 30/08/2017 01/11/2017 31/10/2019 24 months Yes

Volunteer placements. Work with social enterprises and minority run business. Delivery of Advocacy Awareness and Information sessions.

SC1718‐0035

Consultant for Non‐Domestic Rates

Gerald Eve LLP

£50,000 01/09/2017 01/09/2017 31/08/2020 48 months Yes

None

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SC1718‐0046

Firewall Applicance Upgrade

Softcat plc

£83,802 27/09/2017 01/10/2017 30/09/2020 none Yes

None

SC1718‐0002

Strathyre Primary School Extension and Refurbishment

Bell Contracts & Co Ltd

£1,689,140 29/09/2017 29/09/2017 08/08/2018 none Yes

The benefits cover: Local Employment Sourcing Materials Locally Football & Netball Team Kit sponsorship Community Event School Presentation School Pupil Site Visit Tree Planting Scheme

SC1617‐0167

Fleet Maintenance Framework (2 Lots)

Russell Group Engineering; Riverside Truck Rental Ltd; MTS Recovery & Repairs Ltd £1,340,000 03/10/2017 18/10/2017 17/10/2020 12 months Yes

Employ modern apprentices after 1st year of contract

WV‐0023 Intensive Support Service for Young People

Includem

£675,272 03/10/2017 29/05/2017 28/05/2019 none Yes

None

SC1718‐0023

Scottish Cities Alliance Project Consultancy Financial Modeling of Investment Opportunities

Grant Thornton

£69,263 24/10/2017 24/10/2017 23/11/2018 none Yes

None

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SC1617‐0166

Wolfcraig Building External Envelope Repairs

Central Building Contractors (Glasgow) Ltd

£353,473 24/10/2017 13/11/2017 02/04/2018 none Yes

Full apprenticeship school talks site visits community event donations to community.

SC1718‐0017

Management & Leadership Programme Pilot

Robertson Training Ltd

£64,800 25/10/2017 06/11/2017 05/03/2018 24 months Yes

25k being spent locally if winning tender. Explore talks with schools/work experience.

SC1718‐0006

Play Area Enhancements at Donaldson Park

Jupiter Play & Leisure

£59,362 30/10/2017 01/11/2017 31/10/2018 none Yes

None

WV‐0010 Functional Family Therapy

Action for Children Services Ltd£246,000 04/12/2017 04/12/2017 01/12/2020 none no

None

SC1718‐0040

Junction Environmental Improvement Scheme ‐ Wallace Street/Cowane Street

MacLay Civil Engineering

£162,929 12/12/2017 08/01/2018 02/04/2018 1 month Yes

None

SC1718‐0003

Stirling SMART Energy Project (3 Lots)

Laplace Building Solutions North Ltd CRS Electrical Control Engineers IES Ltd

£83,545 12/12/2017 15/12/2017 31/12/2018 none Yes

None

Falkirk Council

Superimposed Road Markings & Associated Works

Markon Limited; Central Traffic Management; WJ Scotland; DeAngelo Brothers UK Ltd

£696,000 18/12/2017 18/12/2017 17/12/2020 12 months Yes

None

SC1617‐0043

Education & Office Furniture

Azzurro Ltd

£120,000 10/01/2018 10/01/2018 28/02/2020 12 months Yes

None

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SC1718‐0015

Hard to Heat Schools: Gartmore, Port of Menteith & Thornhill Primary Schools

Thermsaver Heating and Ventilation Solutions

£87,107 19/01/2018 12/02/2018 13/04/2018 none Yes

The provider has offered training for the staff at each school on the benefits of the new heating system to ensure that all sustainability benefits are fully maximised.

SC1718‐0022

Treatment & Disposal of Recyclable and Residual Waste

Avondale Environmental Ltd

£956,000 19/01/2018 22/01/2018 20/07/2018 none Yes

None

SC1718‐0020

Painting & Decorating for Public Buildings

Mitie Property Services UK Ltd

£100,000 23/01/2018 29/01/2018 28/01/2020 12 months Yes

School work experience placements; one apprentice recruited from local area.

SC1718‐0073

Refuse Sacks Cromwell Polythene Ltd

£65,393 23/01/2018 12/02/2018 11/02/2021 12 months Yes

None

SC1718‐0057

Pearl Street Callander ‐ Housing Development

CCG (Scotland) Ltd

£57,540 02/02/2018 01/03/2018 31/08/2018 12 months Yes

None

SC1718‐0044

Hire of Ride‐On Grass Cutting Mowers

Fraser C Robb

£56,575 07/02/2018 26/03/2018 26/10/2018 none Yes

None

SC1718‐0101

Energy ICT Solution

SSE Enterprise Energy£66,390 19/02/2018 06/12/2018 05/12/2019 none Yes

None

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SC1718‐0016

Scaffolding Services

Scaffold Contracts Limited

£1,200,000 22/02/2018 01/04/2018 31/03/2021 12 months Yes

Employ local Labour Training and development of skills within community

SC1718‐0021

Milk (Supply & Delivery)

Muller UK & Ireland

£269,546 23/02/2018 01/03/2018 28/02/2021 12 months Yes

None

SC1718‐0009

Design, Construction & Installation of a Pontoon at Old Harbour, Shore Road

Gareloch Support Services (Plant Ltd)

£270,237 26/02/2018 26/02/2018 25/05/2018 none Yes

Community enhancement ‐ resources provided for community facilities and initiatives. Sponsorship of local organisations.

WV‐0017 E‐Learning Management System – Subscription Renewal

Learning Pool

£76,480 20/03/2018 21/03/2018 20/03/2020 none no

None

SC1617‐0044

Support Services for Public Sector Innovation Hub and Tartan Centre

Turner & Townsend

£665,840 29/03/2018 02/04/2018 31/08/2018 none Yes

None

WV‐0014 Transport Scheduling (DRT) Online Booking System

Trapeze Group (UK) Ltd

£59,288 29/03/2018 29/03/2018 17/03/2020 none no

None

SC1718‐0086

Tyres for Vehicle & Plant

McConnechy’s Tyre Service£312,000 01/04/2018 01/04/2018 31/10/2021 none Yes

None

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SC1718‐0108

Hire of 32T Hook Lift Vehicle

Riverside Truck Rental Ltd

£82,680 11/04/2018 01/05/2018 30/04/2019 12 months Yes

None

C&F Residential Short Term Placement Service for Young People with Complex Health Needs as a result of Disability

Action for Children

£149,256 01/04/2017 01/04/2017 31/03/2018 none Yes

None

SC1617‐0164

Demolition of Wellgreen Care Home and St Margaret's Primary School

Central Demolitions Ltd

£83,105 04/05/2017 30/05/2017 30/07/2017 none Yes

None

SC1617‐0136

NCP Welllgreen Car Park Improvements

GVA Grimley Ltd

£281,115 15/02/2017 29/05/2017 14/07/2017 none Yes

None

SC1617‐0181

Flood Alleviation Scheme Ground Penetrating Rader (GPR) and Radio Frequency (RF) Survey

Malcolm Hughes and Land

£98,045 09/06/2017 24/06/2017 05/08/2017 none Yes

None

SC1617‐0189

Roof Works and External Works at Allan’s Primary School and Cowie Primary School

Corstorphine Roofing and Building Ltd

£225,487 09/06/2017 03/07/2017 18/08/2017 none Yes

School talk with local school to discuss health and safety on construction sites

SC1617‐0187

Refurbishment of St Mary’s PS, Bannockburn PS & Braehead PS

Bell Decorating Group Ltd

£156,845 14/06/2017 03/07/2017 18/08/2017 none Yes

None

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SC1617‐0192

Heating Upgrade and Associated Works at Fintry Primary School and Fintry Nursery

LPS Contracts Ltd

£73,659 20/06/2017 03/07/2017 18/08/2017 none Yes

None

SC1617‐0123

Old Harbour Repair – Shore Road

George Leslie Ltd

£96,059 07/07/2017 17/07/2017 22/09/2017 none Yes

None

SC1617‐0156

Play Area Enhancements at Moray Park

Landcare Solutions

£96,751.32 05/08/2017 05/08/2017 01/12/2017 none Yes

Landcare Solutions will donte £300 worth of plants or trees and plant them free of charge / engage with schoolchildren to plant trees and approach employability agencies within Stirlingshire to offer the opportunity of work experience on this project.

SC1617‐0139

Flood Alleviation GI Stirling (2 Lots)

Causeway Geotech Ltd£199,855 28/08/2017 28/08/2017 06/10/2017 none Yes

None

SC1617‐0175

Concrete Roof Decks Specialist Coating

Braedale Roofing Ltd

£56,170 18/09/2017 18/09/2017 27/10/2017 none Yes

None

SC1617‐0044

Support Services for Public Sector Innovation Hub and Tartan Centre

Turner & Townsend

£288,500 26/09/2017 26/09/2017 30/03/2018 none Yes

None

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SC1617‐0169

SMART Litter Bin Programme

ESE World Ltd

£94,290 16/11/2017 01/12/2017 31/03/2018 none Yes

Minimising carbon footprint by allowing emptying of bins only when required.

SC1718‐0006

Outdoor Play Equipment and Artificial Surfaces 0215.

Russell Leisure Ltd

£59,362.30 08/12/2017 08/12/2017 31/03/2018 None Yes

None

ED&R Provision of Advice Services on welfare.

ACE Cornton£29,710 per year

01/04/2018 01/04/2018 31/03/2019 none Yes

None

SC1617‐0114

Refurbishment of Allan Centre, Bridge of Allan

Corstorphine Roofing and Building Ltd £132,735 20/02/2017 31/03/2017 31/03/2017 none Yes

None

Scottish Local Government Elections 2017: Electronic Counting

CGI IT UK Ltd

£67,306 18/11/2016 31/05/2017 31/05/2017 none Yes

None

SC1617‐0081

Supply & Delivery of Timber Kits for Riverside Housing Development

CCG (Scotland) Ltd

£73,985 08/11/2016 31/05/2017 21/06/2017 none Yes

None

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Table 2: Regulated Procurements which did not comply with Towards Commercial Excellence: Stirling Council’s Commissioning & Procurement Strategy

2016/17.

Reference Title Supplier Name Contract Value (£)

Award Date Start Date End Date Reason Future Action

WV‐0007 CSGNT CSGNT £150,000.00 19/12/2017 01/01/2018 31/12/2020 Non‐Competitive Action.

Continue as required.

WV‐0010 Functional Family Therapy Action for Children

£246,000.00 04/12/2017 04/12/2017 04/12/2020 Pilot of Innovative approach to service delivery.

Procure if required.

WV‐0014 Transport Scheduling (DRT) Online Booking System

Trapeze Group (UK) Ltd

£59,288 29/03/2018 29/03/2018 17/03/2020 Best value. Procure if required.

WV‐0017 E‐Learning Management System – Subscription Renewal

Learning Pool £76,480 20/03/2018 21/03/2018 20/03/2020 Best value. Procure if required.

WV‐0023 Intensive Support Service for Young People

Includem £675,272 03/10/2017 29/05/2017 28/05/2019 Pilot of Innovative approach to service delivery.

Procure if required.

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Appendix 4: Future Contract Opportunities

Contract Ref: Contract Title Estimated Contract End Date:

Estimated Contract Value:

New/Extended/Re‐Let:

ICT BACS Submission Software 28/05/2018 £7,287 Re‐Let

SC/ALL/0758/300511/60(84)

Banking Services 29/05/2018 £232,741 Re‐Let

SC/ALL/0911/010614/36(48)

Hire of Self‐Drive Vehicles; Plant; and Equipment 31/05/2018 £9,000,000 Re‐Let

Scotland Excel 14‐13 Treatment & Disposal of Recyclable and Residual Waste 31/05/2018 £4,007,885 Re‐Let

Scotland Excel 14‐13 Treatment & Disposal of Recyclable and Residual Waste 31/05/2018 £126,280 Re‐Let

SC1617‐0073 Treatment of Mixed Container Waste 31/05/2018 £292,000 Re‐Let

WV‐0003 SCOTS Programme 2017/18 04/06/2018 £30,000 Re‐Let

SC/ASU/0879/280313/12

SAN Upgrade / Replacement 09/06/2018 £139,904 Re‐Let

Scotland Excel 20‐13 Road Salt For Winter Maintenance 30/06/2018 £610,000 Re‐Let

CCE Addictions and associated support services for Children and Young People

30/06/2018 £740,903 Re‐let

SC/ASU/0922/190603/36(48)

Water Quality Management 06/07/2018 £750,000 Re‐Let

SC/RTO/0780/010711/60(84)

Vehicle Tracking System 07/07/2018 £110,720 Re‐Let

SC1718‐0022 Treatment & Disposal of Recyclable and Residual Waste 20/07/2018 £956,000 Re‐Let

SC/HOU/0872/010913/36(60)

Housing ‐ Kitchen Units, Sanitary Ware, & Gas Central Heating Boilers

31/08/2018 £2,291,212 Re‐Let

Scotland Excel 10‐12 Treatment of Organic Waste 31/08/2018 £1,144,400 Re‐Let

SC/HOU/0892/011113/24

Gas Fired Heating ‐ Installation 31/08/2018 £435,250 Re‐Let

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SC/HOE/0998/011015/36

Housing ‐ uPVC Windows 30/09/2018 £644,282 Re‐Let

Scotland Excel 01‐14 Washroom Facilities 30/09/2018 £55,145 Re‐Let

SC1718‐0044 Hire of Ride‐On Grass Cutting Mowers 26/10/2018 £56,575 Re‐Let

SC/HOE/1019/011215/35

Traffic Signal Maintenance and ancillary Support Services 31/10/2018 £89,838 Re‐Let

SC1617‐0105 Confectionery, Snacks, Sweets, Cakes & Biscuits and Impulse Ice Cream ‐ ESPO Framework 899_16

30/11/2018 £20,000 Re‐Let

Scotland Excel 0614 Telecare & Telehealth Technologies 31/12/2018 £100,000 Re‐Let

CCE Children’s Mental Health Befriending Service 31/12/2018 £35,000 Re‐Let

CCE Family Support Service 31/12/2018 £123,989 Re‐Let

CCE Day opportunities for disabled young people. 31/12/2018 £321,750 Re‐Let

CCE Independent Advocacy Services for Young People 31/12/2018 £46,456 Re‐Let

SC1617‐0060 Electrical Term Contract 31/01/2019 £1,400,000 Re‐Let

SC/ENV/0947/300315/48

Local Bus Service ‐ Callander ‐ Killin 30/03/2019 £288,000 Re‐Let

SC1718‐0054 Local Bus Service Pilots 30/03/2019 £34,968 Re‐Let

SC/GOV/0899/100114/36(60)

Council Tax Bills 31/03/2019 £51,605 Re‐Let

SC/HOU/0943/010115/36(48)

Housing ‐ Maintenance Contracts 31/03/2019 £1,158,109 Re‐Let

SC/GOV/0895/010414/36(60)

Housing & Roads Maintenance Materials 31/03/2019 £17,820,645 Re‐Let

08‐14 Security Services 31/03/2019 £600,000 Re‐Let

SC/HOU/0893/010414/36(60)

Young Homeless People ‐ Support Service 31/03/2019 £2,001,572 Re‐Let

NEW Short break respite for disabled young people 31/03/2019 £250,000 Collaborative contract.

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Appendix 5: Consultation Response

Q1 Are there any other major strategic issues which the strategy has not considered?

Q2 Does this vision represent what you believe is necessary to transform procurement in Stirling?

Q3 Are there any specific issues which relate to the way in which the council carries out procurement which you would like to see covered by the new strategy? NO DATA

Q4 Is this statement of objectives, actions and outcomes:‐

Q5 Do you believe we have identified the actions required to deliver the outcomes?

Q6 Do you consider this analysis helpful and informative?

Yes13%

No41%

Don't know46%

37 respondentsYes, 85%

No, 15%

33 respondents

96%

96%

4%

4%

0% 20% 40% 60% 80% 100% 120%

Helpful?

Comprehensive?

No Yes

24 respondents

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Q7 Should we include any more performance measures?

Q8 Do you find this listing useful?

Q9 Areas where further detail should be added? NO DATA

Q10 Was the inclusion of the Action Plan helpful?

Yes96%

No4%

23 respondents

Yes, 87%

No, 13%

23 respondents

Yes, 39%

No, 61%

23 respondents

Yes, 91%

No, 9%

23 respondents

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Q11 How relevant is the Action Plan to your service area?

Q12 Further comments NO DATA

The specific comments which we received in respect of each question and our responses are as follows:‐

Yes, 95%

No, 5%

22 respondents

Very relevant15%

Relevant80%

Not relevant5%

20 respondents

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No. Consultation Question No.

You said….. We replied….

1 1 With reduced budgets annually we sometimes cannot get value for money with the suppliers we are contracted to buy from.

It is important to compare like with like. It may seem that a unit cost for an item is cheaper at face value. However, when whole‐life costs are taken into account, this is not necessarily the case. Whole‐life costing is taken into account during the procurement process to ensure that the cost to Stirling Council is fully transparent and delivers Best Value.

2 1 Full range of sustainability issues, not just Community Benefit clauses.

All procurement activity is subject to a legislative Sustainability Duty which takes into account the full range of sustainability issues. Community benefit clauses are only one way which can harness sustainability benefits through the procurement process.

3 1 Although there are some similarities within the council services there are specifics that aren't accounted for. Easybuy is time consuming to use and often items aren't listed.

This is a strategic document which covers all services. Specific service area detail can be resolved at an operational level. EasyBuy (PECOS) is Stirling Council’s default purchasing system and works best utilising catalogues. However, functionality allows for purchase of non‐catalogue (i.e non‐listed) items.

4 2 Would it be possible to include a statement with regards to flexibility when schools require to go outwith the procurement framework? We are a highly specialised setting and at times require equipment which requires specialised suppliers.

Stirling Council is subject to the public sector procurement legislation which sets out specific legal obligations in relation to what is required to be obtained via a procurement process. Stirling Council’s Contract Standing Orders allow for purchase of specialised items and, in the first instance, you should discuss the matter with the Commodity Manager for your Service Area to determine the appropriate route to market.

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5 2 Not sure that best practice in the public sector is about not being able to negotiate the best price balanced by the quality of the resource. We are asked to generate creative market solutions, however have to order resources as per contracted suppliers. I see the need for this when we are talking about buildings and property repairs, however not common resources that can be bought in a competitive market.

Whole‐life costing is taken into account during the procurement process to ensure that the cost to Stirling Council is fully transparent and delivers Best Value. Tenders are evaluated on the basis of ‘most economically advantageous tender’ which balances quality against price. This allows a balances mechanism to evaluate innovative solutions in a fair and transparent manner.

6 2 Overt reference to sustainability to indicate intention up‐front.

All procurement activity is subject to a legislative Sustainability Duty which takes into account the full range of sustainability issues.

7 3 Pushing the culture to ensure there is a consistent approach rather than some service areas being able to purchase sporadically through other methods.

Stirling Council’s corporate approach to procurement is fully set out in Stirling Council’s Contract Standing Orders.

8 3 Ongoing staff development and induction for new managers on systems. Happy to have the new Concerto put in place. This will ensure efficiency and be able to update managers on progress. Early days though. Staff development would be useful to share the new vision and inform when new procedures are put in place. Admin staff also need to be updated.

We are working with Corporate OD to put in place a Modular Management Training Suite which will include a procurement component. It is expected that this will be available to all managers. CONCERTO is a Service‐led operational system and any training requirements should be addresses to the appropriate implementation team.

9 3 Strengthen the Sustainable Procurement Duty by giving greater profile and emphasis to issues wider than simple community benefits, such as: the Scottish Model of Procurement, the


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Procurement Hierarchy, Sustainability Test, Whole Life Costing & identification of life cycle impacts, and a shift from products to services, with circular economy outcomes.

10 3 The use of procurement cards; current trend is to reduce usage but various sources of info suggest other authorities are increasing usage.

Stirling Council’s Corporate Purchase Card Policy reflects the Council Management Team’s current position in relation to decreasing spend on purchase cards to facilitate transactional transparency facilitated by PECOS (Easybuy). Should this change, the policy will be amended accordingly.

11 3 It should be easy to use and should deliver best value for money so all children benefit.

We would be happy to hear any suggestions you have to make our processes easier to use, subject to ensuring legislative compliance. As far as we are aware our processes are set up to ensure Best Value which provides an exponential benefit to all citizens of Stirling.

12 3 In the Technology area we have issues in relation to rolling contracts for maintenance vs the need to reprocure systems because of cost of migration. We are dealing with this in the technology sourcing strategy but it may be good to highlight this type of contract and our pragmatic way of dealing with it at a more strategic level.

A refreshed Digital Transformation Strategy, including corporate approaches to technology sourcing, would be helpful to ensure strategic alignment and we look forward to being included in the development process.

13 3 A more strategic approach to consultation and better communication / roll out of internal policy changes to Service Areas.

We will take your comment into account in the future.

14 3 I'd like to see shorter timescales for small procurement exercises. Currently some

We are keen to ensure that our processes are as lean as possible. However, there are some instances where prioritisation of workload means that timescales take longer than desired. We would

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procurement exercises for under £50k are taking 10 weeks to procure.

encourage Service Areas to plan ahead and submit requirements at the earliest opportunity. As a corporate function we must also consider aggregation when requests are received and, from time to time, this can have an impact on timescales.

15 3 We did have some teething troubles when changing to the easy buy system. However these have been ironed out and the process appears to be working fine.

We are pleased to hear that you have resolved the teething troubles. If either the EasyBuy Team or your Commodity Manager can provide any further support, please do not hesitate to get in touch.

16 4 Across the board we will be increasingly looking at partnership working across the public sector (thinking of the outcomes of work with the LGDP) ‐ would we want to make that more prominent? Probably means more working through Scotland Excel which is covered above anyway.

Partnership working is a very important part of the procurement process, particularly between procurement staff and service areas, as well as with the supplier base and organisations such as Scotland Excel. Effective partnership working is implicit in all procurement activity.

17 5 However, the actions identified are very general.

We have included an Action Plan to make actions more SMART.

18 5 Actions are very perfunctory, with little detail as to the quality or efficacy of each action.

We will report on our procurement performance annually in our Procurement Annual Report, commencing in Quarter 2 of FY2018/19.

19 5 Formal training to staff who frequently undertake procurement exercises may help promote achievement of these objectives.

As a corporate function, procurement professionals have received all relevant training to undertake their role. Service Area Leads are provided with the relevant training to undertake their role which supports each individual procurement transaction.

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In addition, we are working with Corporate OD to put in place a Modular Management Training Suite which will include a procurement component. It is expected that this will be available to all managers.

20 6 A breakdown of services.

We are not in a position to respond here without further detail. We would welcome hearing from you to discuss further.

21 6 Information linked to wider sustainability, environmental and socio‐economic issues.


22 6 Categorisation of suppliers by commodity type / nature of expenditure / service area / compliant & non‐complaint suppliers etc. to help inform and provide more meaningful information with regards who is spending money, on what, is it the best use of resources, identify suppliers who should not be used etc. Presentation of information using charts, graphs etc. rather than purely numerical.

We have undertaken to provide further detail in the 2018/21 Strategy in a graphic format. We will provide additional detail in our Annual Procurement Report, commencing in Quarter 2 of FY2018/19.

23 6 Split of procurement exercises ‐ under 50k/ over £50k ‐ Professional fees associated with procurement time spent on projects before and after procurement strategy 2016/2017.

Stirling Council regulates procurement activity in accordance with the prevailing legislation and we actively encourage implementation of frameworks which futureproof against repeat low‐value procurement transactions as well as complying with aggregation regulations. Professional fees is a Service‐specific matter and, therefore, SCT is not in a position to comment.

24 6 Analysis should be put in context ‐ is this a 'normal' spend profile or are there anomalies due to specific works/projects? Is it comparable

Strategic analysis is carried out within the procurement landscape through accessing national tools, for example, the Scottish Government’s Information Hub.

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to other Councils? Are we meeting any local or national KPI's? etc

25 7 It would be interesting to know how often people are required to access suppliers who are not within the framework. This may mean in the future you might consider including these suppliers.

We do endeavour to gather this data. However, we do not have any locus over whether providers in the supplier base chose to bid for a particular contract. Going forward, we will look to innovate in the methods which we use to contract to ensure maximum flexibility, where appropriate to do so.

26 7 Performance measures are a helpful indicator. Again I don't have enough knowledge to identify which ones would be best.

We will provide additional detail in our Annual Procurement Report, commencing in Quarter 2 of FY2018/19.

27 7 Measures to track the statements under Policy Summaries.

These are tracked at a Corporate level.

28 7 Performance measures regarding compliant & non‐compliant suppliers: to ensure any procurement strategy is being adhered to, there should be some sort of measure to help identify, monitor & address compliance (or non‐compliance as the case may be).

We will provide additional detail in our Annual Procurement Report, commencing in Quarter 2 of FY2018/19. Currently, service‐specific non‐compliant spend is reported to the relevant Service Manager, who should address transfer to a compliant position.

29 7 KPI monitoring tool; community benefits implementation advice/tool.

As you will see from our Action Plan above, we plan to refresh our approach to Community Benefits shortly.

30 7 Are we meeting any local or national KPI's?

National Performance Indicators are reported via COVALENT.

31 9 Clearer roles and responsibilities

Roles and responsibilities during the procurement process are fully set out in Stirling Council’s Contract Standing Orders.

32 11 Greater detail of wider sustainability, environmental and socio‐economic issues.

We will provide additional detail in our Annual Procurement Report, commencing in Quarter 2 of FY2018/19.

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33 11 The plan was helpful to show the work that was being undertaken, and the indirect effect of updates to the various action points.

Thank you. We appreciate your comment.

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Not Exempt

Apprenticeship Charter

Purpose & Summary

Adopting the Apprenticeship Charter will raise the profile of the good work undertaken within Stirling Council and demonstrate that as an employer, we lead by example and set exceptional standards in employer practice.

Recommendations


1. agree that Stirling Council adopts the Apprenticeship Charter.


Resource implications relate to people, ensuring Apprentices, their Supervisors and Mentors have the necessary time within the working day, to discuss learning and personal development. This is an operational matter, considered within the service workforce planning process.

There will be no impact on greenhouse gas emissions.


No risks are identified.

1. Background

1.1. Stirling Council agrees annually in February, the rolling five year Strategic Workforce Plan, which is our plan to ensure we have the right people with the right skills, in the right place, at the right time to deliver our services to the diverse communities of the Stirling Council area.

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1.2. As part of this plan, apprenticeship and training opportunities are created to provide young people with the opportunity to start out in their career and join the workforce under a training arrangement, which will lead to a qualification. Apprentices are able to learn skills through working alongside experienced colleagues and it is generally observed that our established workforce, also develop their skills, through working with an Apprentice.

1.3. Apprentices are engaged under a contract of employment and receive a salary which is proportionate with their skills and experience. The Council pays Apprentices a higher rate compared to the national minimum wage. For Age 16 Craft Apprentices their starting hourly rate is £5.86, compared to the NMW £3.70. When a Craft Apprentice passes the trade test, their hourly rate increases to £11.13 per hour. Modern Apprentices start on an hourly rate of £7.14 per hour compared to the NMW £5.90 (age 18-20), and on qualification, usually at the end of the 2nd year are paid no less than £8.80 per hour.

1.4. Apprentice training is provided by local accredited organisations, such as Forth Valley College.

1.5. Apprentices receive support from their supervisor/line manager but also have access to an in-house mentor.

1.6. Stirling Council currently employs 91 Apprentices, with a further 115 employees undertaking professional learning towards the next stage in their careers (eg probationer teachers).

1.7. Adopting the Apprenticeship Charter which is detailed at Appendix 1, would promote the high standards which are in place for our young employees, ensure they have a meaningful job, and are treated fairly and with respect, receiving appropriate structured training and support during their training period.

2. Considerations

2.1. Our workforce has an average age of 44 years. It is therefore critical that we continue to develop Apprenticeship opportunities to ensure young people have an ability to develop their skills, following transition from Education, to start a career and we develop a skilled workforce for the future.

2.2. Stirling Council, leads by example in a number of equality aspects already when it comes to employment, such as concluding all historical equal pay cases, over half of the top 5% of employees in the organisation are women. Paying no less than the Living Wage to our qualified workforce for the past 6 years. Adopting the charter would be a further demonstration of the standards by which we operate as an employer.

2.3. We want all apprentices to have the opportunity to continue working with us following their qualification and as such, a guaranteed interview commitment will be provided.

2.4. Supervisors and mentors will receive the opportunity of skills development to assist them in their roles, through the organisational development team.

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3. Implications

Equalities Impact

3.1. The contents of this report were assessed under the Council’s Equality Impact Assessment process. It was determined that an Equality Impact Assessment was not required as the proposal does not have negative impact on any sections of the community.

Fairer Scotland Duty

3.2. The contents of this report were considered in terms of a Fairer Scotland Duty and were determined not to be of strategic importance.


3.3. This is a workforce matter, therefore a Strategic Environmental Assessment does not apply.

There is no impact on the Council’s duty relating to climate change.


3.4. N/A.

Consultations

3.5. This has been discussed at the Council Forum with the Unison Branch Secretary.


4.1. EqIA Relevance Check – June 2018.

5. Appendices

5.1. Appendix 1 - Apprenticeship Charter.

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Author of Report:

Pamela Forsyth Team Leader HR Business Partnering

Contact Details:


Approved by:

Kristine Johnson Chief Officer HR

Date: 6 June 2018

Signature:


Cllr Brisley and Cllr Laurie

Wards affected: All

Key Priorities: C - We will create more affordable & social housing in all Stirling's communities. We will lead by example as an organisation in setting exceptional standards in building , environmental and employer practice, tenant relations & homelessness prevention

Key Priority Considerations: We will protect employee rights at Stirling Council and enhance our working relationship with Trade Unions. We will deliver apprenticeship and training opportunities within Stirling Council.


Achieving - People are skilled and supported to make a positive contribution to our communities

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Appendix 1133

Stirling Council Agenda Item No.11



Not Exempt

Property Asset Management Strategy & Delivery Plan (incl Community Property Transformation Programme)

Purpose & Summary

The purpose of this paper sets out the proposed Stirling Council Property Asset Management Strategy and Delivery Plan for 2018 to 2028, with a focus on the activities of the next three financial years. The strategy provides details on asset management key themes, the activities which will enable the programme and the outline plan for delivery.

The Property Asset Management Strategy sets out the strategic themes for managing Stirling Council’s property portfolio which includes operational and commercial buildings, covering a wide range of corporate offices and depots, education, culture and community facilities and a wider range of associated non-housing property.

Recommendations


1. approve the Draft Property Asset Management Strategy and Delivery Plan for 2018to 2028;

2. note the establishment of Culture Change Programme, including full adoption ofAgile and Smarter Working Policies, led by HR & OD teams; and

3. note the work required to review charging and lets policies, and shared propertyagreements; and requests a report on Less than Best Value, and Booking andCharging is brought back to Finance and Economy.


Resources will be required across all services to assist with the implementation of the Property Asset Management Strategy and Delivery Plan. Led by Infrastructure Delivery, resources from each service will be required in the form of project teams for specific projects where appropriate.

The delivery of a Culture Change Programme, including the full adoption of Agile and Smarter Working Policies require resources from HR &OD staff, and may involve engagement of external support resource.

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The delivery of the plan is critical to meet the identified revenue savings identified in the Priority Based Budgeting programme of £1.6m over three years.

Risk around the implementation of the Property Asset Management Plan will be mitigated by the completion of the identified enabling activities, as well as appropriate risk management approaches to the delivery of the projects, through business cases; through Commercial and Community Property Working Groups, the Transformation Board and Finance and Economy as appropriate.

1. Background

1.1. The development of the Asset Management Strategy and Delivery Plan, has been aligned through the Priority Based Budgeting Programmes of COP004 Community Property Transformation Programme, COP003 HQ Office and Depots Programme and provides opportunities for COP002 Commercial Property Income. The Community Property Transformation Programme was designed around a variety of localised property rationalisation projects, working in partnership with other bodies and driven by the principles of the effective asset management. Over a five year period it must deliver savings of £1.6 million revenue and an increased income of £150,000.

1.2. Infrastructure Delivery has continued to work with all services to understand their services and property needs to allow them to deliver an effective service, both in the short, medium and long term. This information has been profiled and assessed for location, need, affordability and joint collaborative working opportunities.

1.3. Extensive workshops and discussions have been undertaken with services to understand their needs, and promote how the sharing of space and a proactive approach to asset management can effectively deliver affordable solutions, that are fit for purpose and sustainable for the future.

1.4. Through the mapping of property needs with each service, key commonalities, risks and barriers emerged. The Property Asset Management Strategy has been developed by maximising the opportunities through the commonalities, creation of key themes and implementing enablers to support the organisation to deliver transformation.

1.5. The timescale of the Property Asset Management Strategy and Delivery Plan will support the implementation of the Local Outcomes Improvement Plan 2017 to 2027. To remain fit for purpose and effective the strategy will be reviewed every three years with an annual review of the Delivery Plan.

1.6. The Property Asset Management Strategy and outline delivery plan will provide guidance to:

1.6.1. support the delivery of the Council’s outcomes and associated strategies;

1.6.2. support the revenue reduction for property in a well-planned and sustainable way;

1.6.3. education estate needs through a significant period of housing development;

1.6.4. support the delivery of economic growth and regeneration across Stirling;

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1.6.5. support the delivery of Stirling Plan and local needs – in terms of services, space and assets;

1.6.6. deliver a high standard, affordable estate, which is fit for purpose;

1.6.7. support creative solutions of service transformation; and

1.6.8. provide new facilities to support future development.

2. Considerations

Development of the Strategy

2.1. Whilst Services have continued to work more collaboratively to delivery services, there are still risks and barriers to the Community Transformation programme.

2.2. A detailed Service Needs Assessment was undertaken to understand current activity, and how services will be delivered in the coming years. With there being a major transformation in the structures of existing Services in the past few years and a drive towards internal and external collaboration, this detailed review was essential. Service needs and developments have been considered on both a service development and geographic basis; and also to recognise external influences and developments.

2.3. Key issues that the approach of this strategy will address include:

2.3.1. eliminating a silo approach to the use of our property in the short and long term;

2.3.2. developing well planned co-location and collaboration opportunities, as opposed to a simple sharing of space;

2.3.3. advancing agile working and smarter to optimise adoption by staff, and engaging to understand actual and perceived barriers;

2.3.4. ensuring Senior Management have visibility over their service approach to property, and ensuring that inefficiency is challenged; and

2.3.5. ensuring inconsistent approaches to lets, charging, and property use arrangements are eliminated, and more efficient models to lease in property are adopted only where necessary.

Identification of Key Themes

2.4. Working with the services has allowed the development of seven key themes to drive transformation which will form part of the Property Asset Management Strategy, supporting Stirling Council over the coming years to deliver future assets which are efficient, effective, and sustainable and fit for purpose.

2.5. Theme 1 is to support the principle of the Single Public Estate and joint collaborative working, both at a corporate level and at a local level. This work should reflect the strategic direction identified in the Stirling Plan and development of locality models of service delivery. The Single Public Estate agenda is being driven at a national level, and has the ‘buy-in’ from other public agencies including the NHS, Police Scotland, Scottish Ambulance and Scotland Fire and Rescue. There are shared benefits in adopting this model in terms of shared costs, ongoing revenue budget reduction, releasing property to support other areas of development including economic, physical and social regeneration.

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2.6. Theme 2 is to Maximising Opportunities – optimise the potential of vacant and surplus property, and operational property being underutilised. Sites or areas within an operational property should be considered. For example within the Early Years 1140 expansion programme, development of projects has identified opportunities such as:

2.6.1. new nursery development to be considered around an ageing underutilised Community Hall, whilst still retaining the community hall function;

2.6.2. nursery located within a High School, to develop partnership working with the senior school;

2.6.3. nursery to share location with a care home, supporting the viability of both the Nursery and the Rural Elderly Care Home; and

2.6.4. nursery being developed in a wing of a Forthbank Stadium which would not only kick start the new development of the stadium but also allow the development of a partnership approach with Stirling Council’s sports provider.

2.7. Theme 3 is Building Communities which includes developing a community school estate and also supporting the community to realise their aspirations through asset transfer and community empowerment. The principle of the Community School is to provide the space for the community to access through the school day as well as within the evening. Although investment would be required to maintain the security of the children within the school, this offers a great foundation of the interaction with the community and building partnerships. The development of projects in communities will be reflect the objectives of the Stirling Plan.

2.8. Theme 4 is to provide a suitable environment for accommodation, support culture change and enable Agile and Smarter Workstyles. This theme not only supports an alternative use of space, but also requires a culture change within the organisation with appropriate IT and property infrastructure in place. With this implementation it will allow the Council to reduce its floor space and ongoing revenue running costs, as well as supporting a more active approach to local service delivery. Whilst highlighted as a theme related to the property strategy it is recognised that this is a workstream that will drive transformation across the Council.

2.9. Theme 5 is to support Growth Sites, a constant review of the Housing and Land Audit will ensure the Council is proactive in its approach to future school and community investment at a local level, as well as delivering a future vision for assets in the creation of new villages.

2.10. Theme 6, Effective Energy Management, will ensure that any new design and refurbishment has energy management and sustainability as a key requirement. The ongoing development of investment planning and business cases to reduce the demand and usage, along with the opportunities to incorporate new technologies will be critical to creating an efficient estate.

2.11. Theme 7 directs work towards creating an open and flexible estate, where property arrangements allow multiple efficient use of our buildings:

2.11.1. clear vision of a commercial estate which operates efficiently, both locally and Stirling wide, supporting economic growth and targeted business sectors;

2.11.2. managing the leases where support is required to nurture the organisation to deliver their aspirations;

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2.11.3. develop a clear charging matrix which supports community organisations to deliver activity;

2.11.4. managing of “free lets” or “lets in kind” to support the appropriate organisation and community group; and

2.11.5. using space in a proactive manner to minimise the impact and costs to the Council but maximise the support to the community, council and other partners.

Enabling Activities

2.12. It is recognised that there are critical ‘enablers’ required to support the implementation of the key themes. Feedback has expressed the need for further guidelines to be developed and implemented to support both management teams and Council officers. The enablers would require cross working of services to develop these:

2.12.1. Culture Change Programme; and Agile and Smarter Working Policy (for all staff in all locations);

2.12.2. Asset Transfer Policy completion; and

2.12.3. Booking and Charging Policy (providing guidance on free lets).

2.13. Enablers such as the Corporate Landlord Model and Commercial Operating Models are already developed and should be rolled out fully across the Council to support the transparent management of any property. ‘Concerto’ the Asset Management System will be the tool to manage the Corporate Landlord Model electronically, create efficient new operating models, including the expansion to 3rd parties.

Governance

2.14. The Delivery Plan has been formed from the Project List developed from existing activity, emerging policy requirements and the Service Needs Assessment, including the identified enablers.

2.15. This Delivery Plan attached to the Strategy and will form the basis for the delivery of the programme. The approach to governance is identified within the Strategy, including the continued approach to reporting into the Transformation Board, and the annual report to Finance and Economy Committee. The Senior Manager for Infrastructure will act as Senior Responsible Owner for the delivery of the Programme. The development of this programme will work in parallel with the work undertaken by the Commercial and Economic Development Working Group.

2.16. Detailed discussion has also taken place with representatives of Scottish Futures Trust on optimising the potential benefits of the programme. Consideration has been given to the best environment to deliver the regional and partner benefits to the programmes, on approval of this strategy discussion with Scottish Futures Trust will be reconvened to review regional opportunities and how best to engage with partners at a strategic and asset management level.

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3. Implications

Equalities Impact

3.1. The contents of this report were assessed under the Council’s Equality Impact Assessment process. It was determined that an Equality Impact Assessment was not required as at this stage the impacts are unclear. It is recommended that an Equality Impact Assessment is undertaken on individual projects, and by the Service leading any transformation.


3.2. The proposal will see an overall reduction in the overall operational property footprint of the Council, and in turn will reduce energy consumption, supporting the objective of reducing carbon emissions


3.3. There are no specific policy implications identified at this stage.

Consultations

3.4. All Service areas have been consulted with during the compilation of the Strategy and Delivery Plan.



5. Appendices

5.1. Appendix 1 - Draft Property Asset Management Strategy and Delivery Plan 2018 to 2028.

5.2. Appendix 2 - Project Plan.

5.3. Appendix 3 - Project List.

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Author of Report:

Drew Leslie Service Manager, Infrastructure Delivery

Tracey Mills Strategic Asset Management Team Leader

Contact Details:



Approved by:

Brian Roberts Senior Manager - Infrastructure

Date: 6 June 2018

Signature:


Convenor and Vice-Convenor Finance & Economy

Wards affected: All

Key Priorities: A - We will look after all of our citizens, from early years through to adulthood, by providing quality education and social care services, to allow everybody to lead their lives to their full potential

Key Priority Considerations: We will continue to invest in our school estate to improve facilities


Resilient - People are part of safe and caring communities within an attractive and sustainable environment

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Draft – Property Asset Management Strategy and Delivery Plan 2018 – 2028

1

Appendix 1

Draft Property Asset Management Strategy

and Delivery Plan

2018 to 2028

Stirling – Alive with Scotland

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2

Contents

1. Executive Summary 2. Introduction 3. Our Vision 4. Our Mission 5. Local Outcomes Improvement Plan 2017 – 2027 6. How the Property Asset Management Plan will support Stirling Council’s Local

Outcomes Improvement Plan 2017 – 2028 7. Existing Property Portfolio 8. Key Themes

8.1. Support single public estate and joint collaborative working 8.2. Maximising opportunities – optimise the potential 8.3. Building communities 8.4. Accommodation enabling agile/smarter workstyles 8.5. Support growth sites 8.6. Effective energy management 8.7. Efficiently opening up our estate through property agreements, bookings and

charging mechanisms 9. Enablers 10. Project List 11. Programme Governance 12. Current Activity Summary 13. Timeline

Appendix 1 – Existing Asset Management Overview – Annual update

Appendix 2 – Outline Delivery Plan – Annual update

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3

Executive Summary

The Property Asset Management Strategy sets the strategic direction for the use,

management and development of Stirling Council’s corporate property resources in future

years. The principle role for the property asset base is the same as for all other corporate

resources: to support and enable the delivery of the service objectives, and additionally, to

provide facilities that will be required to meet future service delivery needs.

The specific aims of this strategy are to:

Identify the Council’s future property asset management requirements – the service

and community needs are established

Establish the Council’s property asset management aims and objectives – how and

where we will have a dependence on property

Set out a development and delivery plan

Set out the strategic direction for the management and planning of the Council’s

property resources – identify the corporate landlord model, digitisation and

development of growth sites

Stirling Council’s Property Asset Management Strategy and Delivery Plan sets out a

transformation plan for the next three years, allied with a strategy for the next 10 years. The

Strategy plots property need to support services in delivering the Council’s Five Year

Business Plan, and aligns with the Local Outcomes Improvement Plan 2017‐2027.

Over a 5 year period the transformation must delivery savings of £1.6m revenue and

increase income opportunities. The transformation is based around the national drive to

develop a single public sector asset base, sharing, collocating and collaborating; and working

with communities and partners to enhance a tailored service delivery, driven by community

needs with an efficient use of our property assets. The Council plan is ambitious turning a

complex and diverse portfolio with legacy challenges; to create a fit for purpose, high

quality estate and release inefficient properties for economic and community benefit.

Principles established to deliver strategies and projects are:

Creating a single public sector estate with joint and collaborative working

Maximising opportunities that our property provides, seeking out innovative options

to create sustainable operating models

Build communities, with a particular focus on the Community School Estate, aligned

with national strategies

Enabling agile and smarter working styles to minimise the inefficient use of office

space

Support the strategic growth housing sites, with well planned investment in

infrastructure

Effective energy management, ensuring that all developments have energy use

reduction as a key objective, supported by creative solutions in communities

Opening up our estate for flexible use, through well managed agreements and

booking and charging mechanisms

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4

The implementation of the delivery plan will be supported by the digitisation of asset

management systems within the Service; and the development of a complete corporate

landlord model to centrally manage property to the highest standards across the public

building estate. This will allow longer term decisions and capital planning outcomes to be

made at earlier stages, with well evidenced business cases. The relationship between asset

management, the corporate landlord and capital delivery is identified below.

Community Need

Service Need

Asset Management Plan

Single public property estate approach

with partners

‘Building Communities’ approach around

schools

Supporting housing growth sites and

economic growth

Effective energy management

Corporate Landlord Property

Management Model

Agile and Smart Working approach

Community Asset Transfer opportunities

Asset Management Data System

Booking, Charging, and Commercial

Operating Models

Capital

Investment Plan

Review

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5

Introduction

This document sets out Stirling Council’s Property Asset Management Strategy and Delivery

Plan for 2018 to 2028, with the transformation plan for the next three years. This Strategy is

intended to map the “property need” for the Council to support services in delivering

Stirling Council’s Five‐year Business Plan 2017 ‐2022, Local Outcomes Improvement Plan

2017 – 2027 – the ‘Stirling Plan’; the delivery of the City and Region Deal; and other key

strategies such as Sport, Physical Activity and Wellbeing Strategy for Stirling from 2018 until

2027, Tourist and Events Development Plan 2018 – 2023, City Centre Economic Action Plan

and Stirling Rural Development Action Plan.

Stirling Council’s Property Asset Management Strategy sets out the identified strategic

themes for managing our property portfolio which includes the Council’s operational and

commercial buildings, covering a wide range of corporate, education, cultural and

community facilities and a diverse collection of associated non‐housing property owned by

the Council.

Most recently the development of the Asset Management Strategy and Delivery Plan, has

been aligned through the Priority Based Budgeting Programmes of COP004 Community

Property Transformation Programme, COP003 HQ Office and Depots Programme and

provides opportunities for COP002 Commercial Property Income. The Community Property

Transformation Programme was designed around a variety of localised property

rationalisation projects, working in partnership with other bodies and driven by the

principles of the effective asset management. Over a 5 year period it must deliver savings of

£1.6 million revenue and an increased income of £150,000.

There is a national drive to develop shared principles in terms of public sector asset

management, sharing of space, co‐location and collectively reducing running costs across

our operational and commercial estate through working with partners across the public

sectors, communities and beyond.

The Property Asset Management Strategy will be reviewed and revised every three years,

with the Delivery Plan being updated annually. An annual governance report will be

submitted to Finance and Economy Committee detailing the progress against the Outline

Delivery Plan, highlighting key achievements and confirming the priorities for the following

year.

On an operational basis, reporting of the delivery will be to the Transformation Board, and

the Senior Manager for Infrastructure will fulfil the role of Senior Responsible Owner for the

programme. A cross service working group at Service Manager level to support the delivery

of the Community Property Transformation programme, complimenting the Commercial

and Economic Development Opportunities working group.

“Strategic Property Asset Management is the process which aligns business and property

asset strategies ensuring the optimisation of an organisation’s property assets in a way

which best supports its key business goals and objectives”

RICS Public Sector Asset Management Guidelines 2nd Edition

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6

Our Vision

“To be creatively ambitious to delivering property which is fit for purpose, sustainable, compliant and of high standard to support quality customer centric services, tailored to the different needs of our communities.”

Our vision is based on Stirling Council’s Five‐year Business Plan, the Stirling Plan, locality

service models and other strategies which outline the commitment to ensure the best

possible outcomes for everyone who lives, works and visits the Stirling area. To achieve this,

Stirling Council requires to adopt a creative and dynamic attitude to property asset

management.

Our Mission

“To be the leading local authority for strategic asset management and transformation, paving the way for true joined up, partnership working across services, public agencies and the community, while delivering property solutions tailored to the needs of the community.”

Local Outcomes Improvement Plan 2017 ‐ 2027

Local Outcomes Improvement Plan 2017‐ 2027 is the Stirling Plan for the coming years to

generate “Somewhere everyone can thrive.” The plan recognises that we have a variety of

communities, some of which will experience disadvantage and inequalities and the coming

years will be challenging due to public sector spending reductions, major policy reforms and

must support the changing picture for Stirling.

It is important to mirror Stirling Council’s Guiding Principles within the development of the

Property Asset Management Strategy to ensure that community planning sits firmly at the

centre of public sector reform. The Guiding Principles are: ‐

We will provide a strong shared leadership to drive collaboration across the agencies

We will be better connected

We will keep our communities and people at the heart of everything we do

We will share resources including staff, buildings, information, evidence, analysis and

finance

We will take and early intervention and prevention approach aimed at reducing the

causes of inequalities and not just symptoms

We will be innovative, resilient, adaptable and will target our resources where they

are most needed in an integrated way

We will focus on small number of priorities that will make a genuine difference to

individuals, families and communities

We will help empower our communities by providing capacity building and

opportunities to participate in decision making

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7

How the Property Asset Management Plan will Support Stirling Council’s Local Outcomes Improvement Plan 2018 – 2028

This Property Asset Management Strategy will support Stirling Council to achieve its asset

vision and support the wider outcomes. The strategy has been developed through working

in partnership with Council teams and fully understanding all the service needs across

services, short and longer term; and developing enablers which will manage the risks and

barriers to effective and efficient asset management.

Local Outcomes Improvement Plan 2018 ‐ 2028

Prosperous

People are part of a

prosperous economy

that promotes

inclusive growth

opportunities across

our communities

Achieving

People are skilled and

supported to make a

positive contribution

to our communities

Prosperous

People are part of

safe caring

communities within

an attractive and

sustainable

environment

Healthy

People are healthy and

live active, full and

positive lives within

supportive

communities

Local Community

Plans

Service Plans and

Strategies

Property Asset Management Plan

7 Key Themes

Asset Enablers – Policies and Processes

Outline Delivery Plan

Transformed and High Performing Property Estate

149


8

This strategy will deliver guidance to support the services through a phase of

transformation, to allow the delivery of service outcomes, and associated strategies. As well

as the benefits such as: ‐

Delivery of agreed Priority Based Budget options to reduce costs supporting the

revenue budget pressures over the coming years

Providing direction through a significant period of housing demand and pressures on

school

Supporting delivery of economic growth and regeneration across Stirling

Supporting local delivery ‐ in terms of services, space and assets

Delivering a high standard, affordable and fit for purpose estate

Support creative solutions and service transformation

Deliver new facilities to support new development opportunities – education,

community and sport

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9

Existing Property Portfolio

Stirling Council has a complex and diverse property portfolio, located in rural and urban

locations. Our operational estate facilitates direct provision of public services as detailed

below.

The Property Asset Management Strategy aims to ensure that portfolio remains “fit for

purpose” and will be robust to support service transformational change. Governance

procedures will ensure that challenge is built in, and reviewed as necessary.

The property portfolio will be continuously reviewed to identify opportunities to reduce the

portfolio or increase efficiencies. Where, for example, there are leased in opportunities

expiring or offering break opportunity, we will adopt the principle that the lease will not be

renewed unless the business case proves best value and there are no opportunities to

collaborate or work flexibly in existing operational buildings without affecting the ability to

deliver services. This aligns with principles adopted across the public sector.

A full overview of the existing asset portfolio is illustrated within Appendix 1 of this documents and

will form part of the annual report being submitted to Finance and Economy committee as a part of

the governance process.

Property Portfolio

Operational

(184 No)

Commercial

(317 No)

Surplus/Vacant

(38 No)

Education

(58 No)

Non‐

Education

(126 No)

Other (58 No)

Community

Halls (12 No)

Offices and

Depots (26 No)

Libraries (17 No)

Sport and

Culture (13 No)

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10

Identified Key Themes

Through mapping the property needs required by each service, Key Themes have been

identified and these are supported by Enablers in the form of policies and procedures. These

combined provide the overarching principles that will drive individual transformation

projects which make up the programme. All policies and procedures will be regularly

updated to support the transformation changes, whilst aligning to the needs of the

community where relevant.

Support Single Public Estate and joint collaborative working

The Single Public Estate is the bringing together services and other partners to co‐

locate and share space, forming ‘hubs’ and collaboration initiatives. Sharing space

allows the reduction of the collective floor area between services and partners;

reducing the collective size of the estate. This reduction in revenue running costs can

then develop a sustainable and more affordable estate. Location of these facilities

will be demand and community need based.

We will: ‐

Fully implement a Corporate Landlord Model across all operational

properties and commercial properties where required. The Corporate

Landlord Model will deliver the day to day maintenance, operation,

compliance and property investment through capital and revenue to support

property. The main benefits of this operational model relates to assurance

and ease of transformation.

Roll out of the web based Asset Management System across the Council to

ensure our property is managed in a transparent and effective way. Provide

clarity over communications. Further initiatives around the digitisation of

property management and operations will be developed.

Deliver the property transformation projects across the operational estate.

Deliver a Pubic Sector Hub within Forthside and reduce the number of

corporate offices operated by the Council.

Develop accommodation for “Multi Agency Hubs” in key locations to support

the services tailored for each community, through the council’s Place Based

Approach.

Develop a shared cost model in partnership with other agencies; this work is

currently being supported by Scottish Futures Trust.

Reduce the collective operational floor print by 30% in line with identified

best practice and benchmarking.

Deliver a centralised and fully modernised depot facility for operational

services, and reduce the number of depots and storage facilities across the

estate.

Build on partnership working across other public agencies such as NHS, Police

Scotland, Scottish Ambulance Service and Fire and Rescue, and expand on

building relationship with Forth Valley College and University.

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11

Maximising Opportunities – optimise the potential

Maximised opportunities can be developed across both the operational and

commercial estate. Operationally through the development of service delivery,

Capital and Revenue investment, and commercially, to increase income through

alternative use of space.

We will: ‐

Deliver the asset requirements for the Early Year 1140 Expansion

Programme; including the redevelopment of non‐education property.

Maximising the use of space within operational properties that are

underutilised.

Maximising the income from commercial property, aligning with economic

development strategies and targeted sectors.

To seek out income generation opportunities and maximise the value of the

property estate.

To support the economic sector and delivery of City and Region Deal

outcomes

Undertake studies, and build business cases to invest and develop surplus

property to either enhance the capital value of a site, or to generate a

revenue income stream, or to provide facilities for future service delivery.

Building Communities

Building communities by using property to deliver a tailored service to meet the

needs of the community, through schools as well as the community estate.

We will: ‐

Develop the Asset Transfer Policy and supporting procedures to approach

and support communities to realise their aspirations within their community.

Support community organisation to develop a working model to progress to a

full asset transfer.

Develop a “Community School Estate” releasing space for community use

throughout the day and into the evening, both within and out with term

times.

Maximising available space within the school estate and other retained

facilities for other Council services.

Enabling Agile and Smarter Workstyles

To maximise the potential of the Single Public Estate, culture within all organisations

need to be developed to a more flexible. National indicators through good practice,

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12

has delivered a floor area reduction of 30% and supporting revenue budget

reduction.

We will: ‐

Develop a comprehensive smarter working policy which will support both the

employee and managers to develop a proactive agile working environment,

and support cultural transformation across the council.

The Smarter Working Policy will be developed across services, to ensure the

correct culture change is embedded, with the office and IT infrastructure

developed in parallel.

Provide infrastructure to support digital strategy and enable ‘digital first’

approach to service delivery.

Develop inspiring space to work within, catering for meeting space, quiet

zones, touch down type of environments.

Develop champions across the organisation to embed the principles and lead

on the culture change required to support a smarter working environment.

Directors, Managers and Team Leaders will lead by example.

Support Strategic Housing Growth Sites

Working with the Local Development Plan, the Housing and Land Audit has profiled

the future housing development over the next 10 years, and Stirling Council needs to

be proactive to support any future development, in terms of its education,

community and commercial estate.

We will: ‐

Continue to refresh the profile for all housing development, to plan for the

next 10‐year investment required to support the future school estate.

Support the future vision for the place making agenda, through the Council

and other public sector assets, with large scale developments.

Profile the annual capital investment required to support the future housing

growth, creating a pipeline of education and community investment that

aligns to development phasing

Effective energy management

Being proactive in term of effective energy management can not only bring revenue

budget savings but also achieve key national targets, making the collective property

more sustainable.

We will: ‐

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13

Ensure any new design and refurbishment has the reduction in energy

demand as a key objective.

Support the development of Stirling’s Sustainable Energy and Climate Action

Plan (SECAP).

Continue to develop business cases for revenue budget reduction through

energy efficiency projects and investments, and deliver these in line with the

asset transformation plan.

Be creative in providing energy solutions in communities, working with them

to the benefit of both the communities and public sector asset

transformation.

Efficiently opening up our estate through shared property agreements, booking priorities and charging mechanisms

Providing a clear vision on how we efficiently open up our operational estate, to

support the community needs but also generates an affordable model.

We will: ‐

Develop a booking priority strategy and charging policy for both internal and external activity.

Highlight key operational space across the estate for community use or

income generation.

Invest in key operational areas to adapt space for income generation.

Invest in surplus property through business cases to generate income through

either developing rental space and property for sale or leasing.

Through a business model develop sharing of space and booking practices

with other organisations across Stirling

Enablers

A set of enabling activities have been identified and are considered critical to the delivery of

the transformation:

Approval of the Property Asset Management Strategy and Outline Delivery Plan

Adoption and implementation of a Culture Change Programme and of an Agile and

Smarter Working Policy

Full implementation of the Corporate Landlord Model across all non‐housing

property

Finalisation of Community Asset Transfer procedures

Full digitisation of asset management across the Council led by the adoption of the

Concerto Asset Management system and the development plan

Revised and standardised booking and charging policy for facilities across the Council

155


14

Agreement on commercial operating models to recover costs in Council property

where mixed uses emerge

Project List

In terms of programme governance, a Project List has been identified which will deliver the

transformation and benefits. The list has been developed from the wide review of Service

Needs Assessment, existing property initiatives, locality based projects; as well as the

significant developments associated with City and Region Deal, national initiatives such as

the Early Years expansion programme and work in support of the education requirements of

the Local Development Plan.

A number of projects are identified as ‘live’ given the level of work undertaken to date. The

project list identifies the work that will be undertaken and delivered in the next three

financial years.

Programme Governance

It has been identified that the progress and detail of the Property Asset Management

Strategy will be reported annually to Finance and Economy Committee. The day to day

programme management will be undertaken by the Team Leader for Strategic Asset

Management, supported by the Service Manager for Infrastructure Delivery as Programme

Sponsor. The Senior Manager for Infrastructure Delivery as Senior Responsible Owner (SRO).

The programme will continue to be reported in monthly to the Transformation Board.

Current Activity Summary

Joint working across services and other public agencies continues to progress through a

variety of projects within the programme. The progress is supported and mapped through a

series of workshops and data gathering actvity with the project teams. Service needs are

identified and translated into accommodation requirements and a brief. Design is

undertaken to get the most effective space. A number of projects are approaching delivery

and Business Cases will be considered at Transformation Board in the near future.

Timeline

Timescales of project development and project delivery will continually be reviewed and

monitored as part of the programme governance process. The Project List and Delivery Plan

in Appendix 2, will be a key document to provide an overview on a monthly and annual

basis, as well as the individual project plans being submitted to the Transformation Board.

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15

Appendix 1 – Asset Management Overview – Annual Update

Appendix 2 ‐ Outline Delivery Plan – Annual update

The Property Asset Management Strategy will be delivered through the Outline Delivery

Plan, which will be reviewed on an annual basis. The delivery plan has two work streams

which will be developed and implemented concurrently.

Part 1 – Enabler Development and Implementation

Part 2 – Project Overview

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16

Appendix 1 – Existing Asset Management Overview

Education Estate

No of Property Sq M Backlog Maintenance

Backlog Main per Sq/M

PFI Property 1 No High School 14,147 SqM

PPP Property 5 No High Schools 1No Campus

69,061 SqM

Council Owned and managed

1 No High School 10,949 SqM £53,503.68

£4.89

Stand‐alone Nursery

11No 4,016 SqM £239,328.30 £59.59

Primary School

38 No (including Nursery classes) 2No SEBN Unit

57,664 SqM

£5,036,636.89

£87.34

Total Education (Sq M) 155,837 SqM 5,329,468.87 £34.20

Non Education Estate

No of Property Sq M Backlog Maintenance

Backlog Main per Sq/M

Culture 3No 4582 SqM £383,138.76 £83.62

Community Centre

12 No with Council responsibility 6475 SqM

£602,809.88

£93.10

Library 17No 5536 SqM £490,470.90 £88.60

Local Office 6No 1279 Sq M £216,311.85 £169.13

Elderly Care 3 No 3171 SqM £259,273.74 £81.76

Transport 3 No 1051 SqM £116,688.51 £111.03

Sport 10No 18,099 SqM £200,951.92 £11.10

Other Community

46 No 81,396 SqM

£4,129,129.39

£50.73

Total Non ‐ Education (Sq M) 121,589SqM £6,398,774.95 £52.63

General approach to Key Performance Indicators

(Targets to be identified in liaison with Scottish Heads of Property Group and SFT)

To reduce the net floor area of non‐school’s estate by 40% by 2021

To grow the net floor area of shared multi‐use space within the overall estate

Reduction in revenue running costs across the collective estate by 25% by 2021

To reduce the building maintenance costs by 25% by 2021

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17

To reduce C02 emissions and energy consumption across the overall estate in line

with statutory requirements

To support growth sites by efficient use of school space, to minimise the Capital

impact on the council.

To generate more community activity within key locations, in line with specific

project KPI’s

To increase income generation in key locations, in line with specific project KPI’s

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18

Appendix 2

Enabling Activity Plan

Delivery Plan

Project List

160

Enabling Activities – Project Plan

April - May June- July Aug-Oct

Agile / Smart Working Policy (for all staff in all

location)

Property Asset Management Policy

Formal Implementation of the Corporate

Landlord Model

Asset Transfer Policy and Procedure

Booking and charging Policy for internal and

external facilities

Formal roll out of Concerto – Asset

Management Database across the full council

Commercial operating models to cover all

costs where mixed uses emerge

Roll Out

Roll Out

Roll Out

Roll Out

Roll Out

Development of Policy

Roll Out

Roll Out Development of Policy

Development of Policy

Appendix 2161

Project ListStatus as of April 2018 Development Work (Design and Feasibility)

Plan is subject to formal annual review Business Case Development

Consultation

Implementation (Detailed Design, Procurement etc)

Future Roll Out of Model

Strategy Review Milestone Strategy Review Milestone

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Service Strategy Development Sept 2018

Need to check dates

Corporate Parenting Hub Phase 1

Phase 2

Asset Impact of Library Strategy S

Community Hall Review

Public Sector Innovation Hub Project

Phase 1

Phase 2

Raploch Campus Vision and Meeting Room

Project

Income Generation from Operational Propery

Depot Rationalisation Project

Cowie Innovation Hub

Drymen Rural Hub Development

Callander Rural Hub Development

Aberfoyle Rural Hub Developement

Strathblane Rural Hub Developement

Balfron Community Developement

Strathendrick - Elderly Care and Early Years

Balfron IJB Development

Plean Hub

Fallin Hub/Campus

Bannockburn Campus

Dunblane Community Project

Bridge of Allan Community Project

Community School Project

Early Years 1140 Expansion Programme

Urban Test Site - Mulit Agency Hub

Local Development Plan - Education mitgation(Education pressures indicated are subject to confirmed

housing development)

Sports Masterplan for Stirling Sports Village

Drymen PS

Fallin PS

Plean PS

Cambusbarron PSAllan PS

Stirling HS

Raploch PS

Wallace HS

Cowie PS

Callander PS

Corton PS

Bannockburn PS

Braehead PS

Borestone PS

Appendix 3163




Not Exempt

Paternity Leave

Purpose & Summary

To highlight developments taken by another public sector employer to increase Paternity Leave from two weeks to four weeks and explore whether there is interest to adopt this arrangement, within our terms and conditions in Stirling Council.

Recommendations


1. consider and comment on the proposal to increase Paternity Leave from two to four weeks;

2. agree that if the proposal is supported, the cost of the additional leave will be absorbed within existing resources; and

3. agree that if the proposal is approved, the new entitlement to Paternity Leave applies in the first year of child’s birth or adoption.


People resource implications; currently new fathers or partners at the time of the birth or adoption of a baby can take one-week full paid Maternity Support Leave and one week of Paternity Leave which is paid at the Statutory Paternity rate £145.18. This proposal if supported would increase leave to four weeks’ full pay for around 24 employees annually, based on numbers last year.

Estimated cost:-

1. Increase statutory week to full pay £13,532; and

2. two weeks leave £27,600.

Total: £36,454 based on average weeks’ pay.

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Risks include a period of employee absence during period of paternity leave, however the annual numbers requesting leave are around 24 in the past year and overall risk is considered low.

1. Background

1.1 The statutory entitlement for Paternity Leave is two weeks at the statutory rate of £145.18 per week, around the time of birth or adoption. However, within Stirling Council, the first week is classified in our terms and conditions as maternity support leave which is at full pay, and the 2nd week is statutory paternity leave at the statutory rate.

1.2 Fathers and Partners take the first full paid week, however not all take the 2nd week, (7 out of 24) which is at the statutory rate, and if that was increased to full-pay, the additional cost is estimated £13,532 based on average salaries.

1.3 Various international studies have found a link between longer paternity leave and greater involvement of fathers in the early lives of their children; greater maternal well-being; reduced incidence of postnatal depression in both mother and father; better outcomes for children, including better peer relationships, literacy and fewer behavioural problems; increased sharing of household work; and a strong link between taking paternity leave and breastfeeding.

2. Considerations

2.1. Putting forward this proposal, if adopted, would place Stirling Council in a gold standard position in relation to the paternity leave terms and conditions available to employees.

3. Implications

Equalities Impact

3.1. The contents of this report were assessed under the Council’s Equality Impact Assessment process. It was determined that an Equality Impact Assessment was not required as this proposal is about increasing leave beyond the statutory entitlement for all new fathers and partners following the birth or adoption of a child.


3.2. This is an employment matter and there is no sustainability impact as a result of this report.

3.3. No impact on the Council’s duty relating to climate change is identified.


3.4. If adopted, this would amend terms and conditions to a level above the statutory entitlement for Paternity Leave.

166

Consultations

3.5. This matter was raised through a MSP enquiry.



5. Appendices

5.1. None.

Author of Report:


Contact Details:

Tel 01786 233294 [email protected]

Approved by:


Date: 6 June 2018

Signature:


Wards affected: Potentially all, depending on where employees live.

Key Priorities: C - We will create more affordable & social housing in all Stirling's communities. We will lead by example as an organisation in setting exceptional standards in building , environmental and employer practice, tenant relations & homelessness prevention

Key Priority Considerations: We will protect employee rights at Stirling Council and enhance our working relationship with Trades Unions.


Healthy - People are healthy and live active, full and positive lives within supportive communities

167




Not Exempt

Footwear and Clothing Grant

Purpose & Summary

Currently, the level of school clothing grant paid by Stirling Council is £50 per child. COSLA Leaders recently approved a proposal by the Scottish Government to increase this to £100 per child, with the additional funding provided by the Scottish Government. This report seeks approval by the Committee to pay the higher amount, prior to applications being invited before to the school summer holidays begin.

Recommendations


1. agree that Stirling Council will pay the national minimum level of school clothinggrant of £100 per eligible child.


There are no resource implications from this proposal, as the Council will receive full funding to meet the cost of the higher payment.


There are no significant risks to the Council from making this payment, as full additional funding will be received from the Scottish Government, based on existing demand levels. There is a small additional risk that demand will be increased due to the higher level of payment, but this is assessed as a minor risk that could be accommodated from existing budget resources.

1. Background

Footwear and Clothing Grants help meet the costs of uniform and footwear for eligible children who attend, primary, secondary and additional support needs establishments.

They are administered by the Revenue and Benefits team.

169

To qualify, the parent should receive one of the following:

1 Income Support;

2 Income based Jobseeker's Allowance;

3 Income related Employment and Support Allowance;

4 Child Tax Credit only (with income under £16,105);

5 Maximum Working Tax Credit and Child Tax Credit (with an income under £6,420);

6 Working Tax Credit with income under £16,105 (clothing grant only);

7 Support under Part VI of the Immigration and Asylum Act 1999; and

8 Universal Credit where the monthly earned income does not exceed £610.

The Council currently pays at a rate of £50 per eligible child and 1,499 were awarded for 2017/18 totalling £74,950.

2. Considerations

2.1. There has been ongoing discussion around school clothing grants for a number of years between COSLA and the Scottish Government. The Education (Scotland) Act 2016 allows that Scottish Ministers could require an education authority to pay a minimum grant of a specified amount (s.23) but this provision has never been enacted.

2.2. Currently, the level of school clothing grant paid by local authorities varies from £40 to £120 per eligible child. Scottish Ministers are keen for there to be a minimum level of £100 but cognisant of the financial pressures faced by local authorities, there is a proposal that the Scottish Government would part fund this minimum at a level of £50. Ministers were keen to come to an agreement with COSLA which would avoid the need for s.23 to be brought into force.

2.3. Following discussions at Officer level between COSLA and the Scottish Government, a proposal came to COSLA Leaders on 25 May 2018 that eligible children would receive a minimum school clothing grant of £100 from the beginning of the 2018/19 academic year. Eligibility criteria would continue to be determined locally, and local authorities would be free to set a grant level higher than the minimum.

2.4. In recognition of the financial pressure local authorities would face in delivering this policy, the Scottish Government has offered a financial contribution. Nominally, this would equate to £50 per school clothing grant. However, data on the numbers of school clothing grants per local authority captured in the Local Financial Returns is not robustly assured and so eligibility for Free School Meals has instead been used as the best available proxy to reach a quantum of numbers eligible (the final figure will be confirmed on the basis of the most recent pupil census data). Applying the £50 contribution to this population results in a £6m proposed contribution from Scottish Government.

2.5. The £6m funding will not be ringfenced, therefore local authorities can choose how to use these funds as long as they deliver the minimum entitlement of £100 per eligible child. Local authorities are starting from various positions but there is no expectation that councils pay more than the £100 minimum that will be left to local discretion. However, if however a local authority is currently paying more than the £100 minimum there is an expectation that this will be maintained. This is exemplified in the table below:

170

Current LA rate New minimum rate Scottish Government contribution

£40 £100 £50

£70 £100 £50

£120 £120 £50

2.6. Given free school meals is being used as a proxy for eligible population, it was proposed that the quantum of funding being offered is monitored to ensure adequacy.

2.7. At their meeting of 25 May 2018, COSLA Leaders approved the proposal, with widespread support. This report therefore, seeks the Committee’s support to make the payments of £100 per child from the beginning of the 2018/19 academic year. Applications are already being distributed to some claimants, and a decision of the Committee will allow officers to make claimants aware that the £100 per child will be paid.

2.8. There are no other resource implications as this would only require a small amendment to the processing system.

3. Implications

Equalities Impact

3.1. The contents of this report were assessed under the Council’s Equality Impact Assessment process and it was determined that no EqIA was required. The proposal will deliver a positive benefit to those in the lowest income groups.


3.2. The contents of this report are neutral in terms of the sustainability and environmental impacts.


3.3. None.

Consultations

3.4. None.


4.1. None.

5. Appendices

5.1. None.

171

Author of Report:

Gillian Taylor Revenue and Benefits Manager

Contact Details:


Approved by:

Jim Boyle Chief Finance Officer

Date: 7 June 2018

Signature:

Wards affected: All.

Key Priorities: B - We will target all forms of poverty across our communities and mitigate the impact of austerity and welfare cuts on those hit the hardest.

Key Priority Considerations: Provision of additional financial support to our lowest income households.

Stirling Plan Priority Outcomes:

(Local Outcomes Improvement Plan)

Resilient - People are part of safe and caring communities within an attractive and sustainable environment

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