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ARGYLL AND BUTE COUNCIL PERFORMANCE REVIEW AND SCRUTINY COMMITTEE

CHIEF EXECUTIVE 3 March 2017 PERFORMANCE REPORT – FQ3 2016-17

1. EXECUTIVE SUMMARY

1.1 The Planning and Performance Management Framework sets out the process

for presentation of the council’s quarterly performance reports. This paper presents the Council and Departmental performance reports with associated scorecards for performance in FQ3 2016-17 (October - December 2016).

1.2 It is recommended that the PRS Committee reviews the reports and scorecards

as presented.

Cleland Sneddon Chief Executive

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ARGYLL AND BUTE COUNCIL PERFORMANCE REVIEW AND SCRUTINY COMMITTEE

CHIEF EXECUTIVE 3 March 2017 PERFORMANCE REPORT – FQ3 2016-17

2. SUMMARY

2.1 The Planning and Performance Management Framework sets out the process for presentation of the council’s quarterly performance reports. This paper presents the Council and Departmental performance reports with associated scorecards for performance in FQ3 2016-17 (October - December 2016).

2.2 Performance is reviewed by the Strategic Committees on the following dates,

and is presented to the PRS Committee for high level review and scrutiny. Community Services March 9th Environment, Development & Infrastructure April 6th Policy & Resources March 16th Planning, Protective Services & Licensing March 15th

3. RECOMMENDATIONS

3.1 It is recommended that the PRS Committee reviews the reports and scorecards

as presented.

Cleland Sneddon Chief Executive

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Departmental performance report for: Development and Infrastructure Services Period: October to December 2016 Key successes 1. The Argyll and Bute Economic Forum Progress Review reported very positive progress and that a great majority of the forum’s

recommendations are being implemented by the private sector in particular by the Argyll and the Isles Tourism Co-operative (AITC) and Food from Argyll; by individual businesses; by government and expressly by the council, Highlands and Islands Enterprise and Argyll College. The review also highlighted more work to do engaging the local media and school heads over the coming year.

2. Two new funds were launched to help local businesses and support population growth; Business Gateway Local Growth Accelerator Programme (BG LGAP) and the Rural Resettlement Fund make available more than £1 million to the Argyll and Bute economy. The BG LGAP, opened during Argyll Enterprise Week, is funded by the Council and the European Regional Development Fund and is worth almost £550k. The aim is to strengthen the local economy targeting small and medium sized businesses looking for growth. The Rural Resettlement Fund of £500k is aimed at families, individuals and businesses looking for new opportunities and settling in the area.

3. The launch of the new LEADER programme has already generated £600k of released funding to a diverse range of 14 projects

with match funding providing a minimum of almost £1.2 million invested across Argyll and Bute. Projects to benefit include the Crinan Canal Active Travel and Tourist Towpath securing £123k; CHArts Place Partnership Plan securing £160k; and Argyll Food Producers: Developing and Growing Argyll Food Economy securing £45k.

4. Phase 1 of the LED street lighting luminaires installation programme was completed during this period and this enabled the

council to take advantage of £400k Salix interest free capital funding. The programme is due to complete during 2017/18 and will provide installation of 14,446 LED lights and deliver significant energy savings, reduce maintenance costs and enable reinvestment in existing lighting stock, such as replacement light columns. This first phase covered in excess of 3,000 lights in the Helensburgh and Lomond area.

5. The first Argyll Enterprise Week took place in Oban and was hailed a great success. More than 400 participants representing

at least 150 organisations from across the area took part in 29 different workshops, seminars and discussions. Almost everyone attending confirmed that they had learnt something new, made new connections or had been inspired by the events.

6. Around 70 people attended the Island Connections special event on Seil Island which designed to bring together Argyll and

Bute’s island communities and share best practice addressing issues that can affect island life. A report informed by the event

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will be used to direct both the council’s involvement in the Scottish Government’s Islands Strategic Group and its response to the Islands Bill.

7. The council, as a member of the Supplier Development Programme (SDP), helps small and medium enterprises (SMEs) based

in the area access the wide range of free procurement workshops held across Scotland. 159 businesses in Argyll and Bute are already registered with the SDP. Business Gateway is also providing free information to help businesses with tendering for contracts and, together with the council’s procurement team, held a pilot series of ‘Meet the buyer’ surgeries.

8. With support from the Council and Highlands & Islands Enterprise, 37 new permanent jobs have been created in Rothesay at

Webhelp, the business process outsourcing company delivering services on behalf of airline EasyJet.

9. The strategic and local Economic Development Action Plans gained council approval following realignment of economic priorities with national economic strategy focusing on innovation, investment, internationalisation and inclusion. The plans highlight ongoing work and work planned for the future to meet the challenges of growing the economy.

10. There was success in securing £25k for a design charrette for Dunoon which will enable a masterplan creating a vision for a

successful and prosperous town centre.

11. The official opening took place of the £2 million investment in Station Square, Oban. The opening was planned to coincide with the annual fireworks display and highlight the benefit that the newly renovated public space brings to the town centre.

12. At the Scottish Empty Homes Awards, the townscape heritage initiative-led project ‘Renovation of 50/52 Main Street,

Campbeltown’ picked up the award for the Best Outstanding Project.

13. The Local Development Plan (LDP) online call for sites closed following 6 months of consultation. 85 sites have been submitted by landowners and prospective developers for early development consideration as the Local Development Plan (LDP) progresses.

14. 99% of all planning applications determined were approved during FQ3. Approval was given for 62 new homes east of

Hayfield, Oban, 18 of which are affordable homes, adding to the 554 new affordable homes already created over the life of the Strategic Housing Investment Plan (SHIP). There are plans for up to another 650 affordable homes in the area over the next 5 years, which will go a long way to addressing housing demand and generating local employment particularly in the construction sector.

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15. The Planning Service continues to seek additional sources of income marketing specialist GIS services initially through the liaison group set up with the National Park. Discussion with the Western Isles Council has taken place and opportunities may arise to supply environmental impact assessment specialist services from development policy. Further commercial opportunities are also being explored with Highland Council and Argyll Estates.

16. Eleven projects across Tarbert, Lochgilphead and Ardrishaig have been shortlisted to be considered for a share of the £3

million council fund aimed at regeneration, boosting the local economy and creating jobs. Feasibility studies and initial design work will allow outline business cases to be developed.

17. Customer satisfaction amongst Building Standards customers rose again, with the Scottish Government reporting Argyll and

Bute as one of the top 3 customer focused services in the country and the service retaining the 3rd annual renewal of the Customer Service Excellence Award. This is all welcome news and supports the service as they continue to lobby Scottish Ministers through Local Authority Building Standards Scotland (LABSS) and the Building Standards Division (BSD) for an early decision over the retention of the sole verifier license for the Argyll and Bute geographical area which is due to expire in May 2017.

Key challenges 1. Embed service changes to Argyll and Bute’s waste and recycling collections; reduce landfill; increase recycling; and deliver

associated financial savings. Early indications show that the public are reducing household waste.

2. Address the challenges associated with recycling and waste treatment in the medium to longer term in view of the longer term financial risks and future landfill ban affecting this statutory service.

3. Convert managerial action on sickness absence into improved attendance performance essential to the delivery of services.

4. Realise the full potential of the marine infrastructure to support economic growth; undertake a review of Piers and Harbours

fees and charges; and a review of marine service operating expenditure.

5. Address planning fee income reductions due in part to the reduction of applications for large scale renewable energy development. This creates budgetary challenges in the face of rising planning application numbers. Year to date, planning applications and other related submissions are almost 7% higher than at the same period last year, 1,524 compared with 1,425. Pre-applications have also risen, 12% higher than the same period last year, 876 compared to 783.

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6. Identify deliverable design solution for the Kirk Road upgrade in a timeframe which fits with the Scottish Government Housing

Infrastructure Funds.

7. Create parking turnover in the centre of our towns that supports local businesses and consumers, ensuring there is enough short-stay and long-stay parking.

8. Address the financial challenges brought about by flooding events and resourcing the council’s liabilities with the Flood Risk Management Plan.

9. Strengthen and replace bridges in order to reduce the number of roads with weight restrictions, prioritising those strategically

placed on the network and minimising the risk of disruption to communities and the local economy in the event of unplanned road closure.

10. Secure funding that ensures that there is an integrated approach to the five key infrastructure priorities identified in the Single

Investment Plan (SIP) namely delivering high quality mobile and broadband; a wide range of housing and business accommodation; improved transport links; improved marketing and promotion of Argyll and Bute; and improved skills and staff required to grow the local economy

11. Address Argyll and Bute’s declining population, retaining people, particularly younger people in the area.

12. The result of the Europe Referendum has the potential to have far reaching implications for the Argyll economy. Argyll is a

net benefactor of EU funding through Pillar One and Two funding streams that cover aspects such as agriculture payments and programmes such as LEADER. Argyll currently has approximately 1,600 EU citizens working in industries such as tourism, construction and fish processing. If there is a loss of free movement of labour there may be implications for those industries.

Actions to address the challenges 1. Completing operational arrangements necessary to embed effective waste service changes and continue to support staff

deliver efficient waste and recycling services.

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2. Develop a new Waste Strategy based upon a new 25 Year Waste Financial Model and continue to work with the community to improve and increase recycling performance.

3. Continue to support managers in their efforts to improve performance attendance, effectively apply the council’s Maximising

Attendance Policy and build upon the improved performance. Comparing data with the same period in the previous year, attendance improved and the cost of absenteeism was down by £26k.

4. Ensure that effective consultations, communications and management of the work streams necessary to undertake the review

of Piers and Harbours fees and charges. Progress economic opportunities inherent in the Marine Sector independently and collaboratively; and ensure that future marine service operating costs are sustainable.

5. Continue to progress a range of actions to address the reduction in planning fee income. These include digital process

efficiency by making the most of e-planning and e-building standards and thoroughly reviewing working processes; carefully managing expenditure; and seeking income generation from private and public business opportunities.

6. Mobilise internal cross service working group to identify preliminary issues and capacity to produce solutions in good time to

benefit from the Scottish Government Housing Infrastructure Fund.

7. Continue to progress the programme of consultative parking reviews across the area to highlight any issues and to make changes in order to address parking issues as far as possible.

8. Continue to work with SEPA and other Local Plan District partners managing flood risk, this will include studies, the preparation

of Surface Water Management Plans and working with the Local Plan district groups to deliver a programme of actions. The council will be preparing Surface Water Management Plans and working with plan district groups to deliver a programme of actions and confirming the financial allocations for the first 6 year cycle of the Flood Risk Management Plan.

9. Essential and preventive works to bridges have been included in the Strategic Asset Management Plan (SAMP) and Asset

Strategic Risk Register (ASRR) thereby prioritising resources to the area’s roads infrastructure as appropriate.

10. Progress the Single Investment Plan (SIP) with its key purpose of identification of potential funding mechanisms for critical infrastructure projects that will help create a step change in the delivery of economic growth through an anticipated Rural Growth Deal (RGD) agreed with the Scottish and UK Governments.

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11. Focusing upon the opportunities for economic growth aligned to the four priorities outlined in Scotland’s Economy Strategy – Investment; Innovation; Internationalisation; and Inclusive Growth prioritised in the Council’s Strategic Economic Development Action Plan as well as taking advantage of the opportunities that the Rural Resettlement Fund brings.

12. Economic Development will maximise the use of existing funding and represent Argyll and Bute Council issues.

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Performance Report for Customer Services Period October – December 2016

Key Successes

1. Community Council by election process completed successfully 2. Gold award for empowering local democracy at Excellence awards 3. Cleaning Service was a finalist in the category of ‘Most Improved Building Cleaning Performance’ at the Association of Public

Sector Excellence (APSE) Performance Networks Awards 2016. 4. Successful delivery of the Employee Awards and Learning Awards – Films of the event are now available on the Hub 5. Won highly commended local authority procurement team of the year at the GO procurement awards on 9 November. 6. Average time to fix IT incidents at lowest ever level – at 2.6 hours for December 7. Channel shift to digital channels continues to rise above targets with 64,497 online transactions in quarter up from 40,780 for

FQ3 previous year.

Key Challenges

1. Local government Elections 2017 and new Council induction. 2. Service Choices budget reductions for 2017/18 3. Review of Planning Performance Management Framework 4. Implementation of Community Empowerment Act 5. Implementation of Transformation Programme 6. Short Life Working Group review of Political Management Arrangements 7. Continued work with the HSCP to ensure that the support services are as efficient as possible, by developing joint working, joint

processes and exploring co-location 8. Still 39 sites to migrate to Scottish Wide Area Network at end of December (after planned completion date of 21 September).

Contingency plans in place but expensive. 9. To create new governance, structures and procedures to support the financial inclusion services contract awarded from Big

Lottery Fund

Action Points to address the Challenges

1. Experienced team in place to deliver electoral process and induction for new Council. 2. Corporate process in place to ensure delivery of service savings

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3. A new approach has been developed and the initial stage of service planning and the implementation of business outcomes is now underway.

4. Cross-departmental project team established to deliver the various elements of the Act. 5. Project Board in place to identify and drive forward transformation projects 6. Short Life Working Group fully supported to consider options for future Political Management Arrangements model 7. Continued close collaboration with HSCP management is essential to maximising efficiencies and opportunities for the HSCP

and the council 8. Close monitoring of progress with contractor. Interim solutions agreed for certain sites. Assistance from Legal with damages

claim. 9. Back to back contracts to be put in place, staff to be recruited and implementation plan finalised.

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Departmental performance report for Community Services period October to December 2016 Key Successes Key successes this quarter include improved performance against the following performance measures: 1. 8,423 children’s swimming lessons were completed this quarter against a target of 4,500. 2. 909 adults have accessed Community Based Adult Learning, the target for this quarter is 350. 3. 320 participants have taken part in activities that improve literacy and numeracy across Argyll and Bute, the target for this quarter

was 80. 4. A number of new affordable homes were completed: 10 @ Glenshellach, Oban, 10 @ Connel, 10 @ Islay and 17 @ St Cuthbert's,

Dunoon between October to December. 5. There have been 27 school improvement visits undertaken by members of the Education central team, the target for this quarter

was 3. Schools reviewed include Carradale, Castlehill, Clachan, Dalintober, Drumlemble, Gigha, Rhunahaorine, Southend, Tarbert Colgrain (3), JLB (3), Rosneath (2), Hermitage PS (2), Parklands (1), Luss (2), Garelochhead (1), Kilcreggan (3), Rhu (1).

6. The Education Service organised and delivered 62 targeted staff development courses which took place across key subject or service areas including Early Years, Gaelic, ICT, languages 1+2, leadership, educational central team and probationer training.

7. The Education Service delivered 4 Aspiring Leaders courses: Argyll and Bute Leadership Enterprise programme, Middle Leadership Training Network, Into Headship training. The target for the quarter was 1.

8. The Implementation of the Development Milestone Tool 0-3 yrs. was completed on schedule. 9. Two entries were submitted to the Quality Improvement Awards. In the Top Team Awards the Argyll and Bute Family Pathway –

Growing up in Kintyre was shortlisted with Argyll and Bute’s entry Engaging Parents in Early Learning and Childcare shortlisted for the Merit Award for Quality Improvement in Early Years.

10. Argyll and Bute Local Housing Strategy (LHS) 2016/17 – 2020/21 was launched. 11. At the Council meeting in November the business case for the Leisure and Libraries Trust was approved, a project team has now

been set up and work started to progress the business case. 12. In November, Minard Primary fought off stiff competition from across Scotland to win a national competition for its innovative ways

of making waste go for further. Instead of using traditional recycling methods for disposing of waste paper, pupils at Minard Primary School have been turning it into recycled paper briquettes which can then be used in the community as fuel. As a result of this ingenious idea, Minard Primary was crowned the winner of the Community Resources Network Scotland (CRNS) School Challenge Competition.

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Key Challenges 1. Reducing the number of days lost through sickness absence across Community Services. 2. Reviewing the implementation of the new National Qualifications arising from the Education Delivery Plan for Scotland published in

June 2016. 3. Meeting the requirements of new legislation e.g. Children and Young People’s Act 2014 and Community Empowerment Act, etc.

and key requirements emerging as a consequence of legislative changes such as the Education Bill. 4. Achieving the agreed target for the completion of PDRs during the quarter. 5. Increasing positive destinations for young people in the current economic climate. 6. Continue to raise attainment for all of our children and young people, specifically in reading, writing and numeracy in line with the

new National Improvement Framework for Education including: 6.1 Continue to work to close the gap between the most and least disadvantaged children in school as outlined in the new National

Improvement Framework. 6.2 Introduction of new national standardised assessments in P1, P4, P7 and S3 which focus on progression on literacies and

numeracy as part of the new National Improvement Framework. 7. Ongoing challenges associated with teacher recruitment in certain Council locations and for certain subjects to assist the authority

to meeting its commitment to teacher numbers. 8. Delivering Excellence and Equity in Scottish Education – The Delivery Plan. There are a number of key challenges for the Education

Service in delivering the identified actions for the Authority within tightly prescribed timescales. 9. Deliver a successful recruitment process to establish independent members of a Leisure and Library Trust Board.

Action points to address the challenges 1. Continue to work with staff to ensure that return to work interviews are completed for all periods of sickness absence through

increased support and guidance for individual Managers and Team Leaders. 2. Continue to support work on curriculum design to reflect the new Curriculum for Excellence Framework and training on the new

secondary benchmarking toolkit. The examination results for session 2015/16 will be analysed in detail and used to review the curricula available within each of the ten secondary schools.

3. Deliver a number of key actions in order to meet the requirement of all new legislation. 4. Implementation of a new process for the recording of PRDs which will include a review of the quality of completed reviews. 5. Detailed and individualised information and advice for school leavers is being provided in conjunction with Skills Development

Scotland. Multi agency plan to meet the recommendations of Scotland’s Young Workforce currently being implemented. 6. Continue to develop the new Education Vision and Strategy to take account of the new National Improvement Framework and the

additional duties in the updated Education Act.

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7. Recruiting and retaining teaching staff who have a focus on developing consistency and quality. Continue to work with the Council’s HR service to advertise and recruit into vacant posts within the Oban and Mid Argyll areas.

8. An update on the progress of the Education Delivery Plan will be shared at Community Services Committee and with the Education Team, Head Teachers and parents.

9. Preparing a report for elected members to agree the recruitment process for membership to the Leisure and Library Trust Board.

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Quarterly performance report for Strategic Finance Period October - December 2016

Key Successes Following a review of the likely Loans Fund interest payments and receipts, a saving in Loans Charges of £900k has been identified

for 2016-17. The saving is a direct result of good borrowing and investment decisions in addition to low interest rates for borrowing. A saving of £750k has also been identified for 2017-18 of which £250k is recurring into future years.

Investment returns continue to exceed the benchmark rate of return – the rate of return to be reported to Policy and Resources Committee for the period to end of December was 0.579% which compares favourably with the target of 7 day LIBID (London Interbank Bid Rate – the rate which banks are willing to borrow from other banks) which was 0.116%.

Staff within Strategic Finance have worked with colleagues in Development and Infrastructure to attract a £400k interest free loan to support the Street Lighting LED Project £300k of which was drawdown in December.

Value for Money User Satisfaction saw a small improvement on last year with each individual question scoring higher. Medium Term Financial Outlook was presented to Policy and Resources Committee in October and December with the most up to

date estimates at that time. Key Challenges 1. Continue to provide high quality service with reduced resources. As we are approaching budget time and then financial year-end,

reduced resources together with sickness absence makes these pressure points particularly challenging. 2. Department operating with a number of staff on long term sick (none are work related). As the number of staff within the service is

relatively small, this will disproportionately affect the sickness absence percentage. 3. Ensure Budget Forecasting, particularly for next year’s budget is underpinned by robust figures and assumptions. 4. Ensuring timely completion of Annual Audit Plan given reduced resource. 5. Production of medium to longer term financial strategy for the Council. Action Points to address the Challenges 1. Feedback from Management Team meeting held on 1 November to discuss how we will deliver our service in the future is being

evaluated to form the basis of service changes to ensure the continued delivery of high quality services. 2. The expectations of service users proactively managed as well as clear prioritisation of tasks. 3. Budget preparation is progressing well and over this quarter the staffing establishment was confirmed as well as cost/demand

pressures and inflation estimates. 4. The workload within Internal Audit continues to be reviewed and reallocated in order to deliver on the approved plan. 5. SMT held a session in December to consider key principles that would underpin the medium to longer term financial strategy and a

report will be prepared for Council asking them to agree that officers undertake work to develop a medium to longer term financial strategy incorporating these principles.

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Performance Report for Council Scorecard Period October - December 2016

Key Successes 1. The Argyll & Bute Economic Forum review reported very positive progress. 2. Two new funds were launched to help local businesses - and the new LEADER programme is also generating funding. 3. The official opening took place of the £2 million investment in Station Square, Oban. The opening was planned to coincide with

the annual fireworks display and highlight the benefit that the newly renovated public space brings to the town centre. 4. With support from the Council and Highlands & Islands Enterprise, 37 new permanent jobs have been created in Rothesay at

Webhelp, the business process outsourcing company delivering services on behalf of airline EasyJet. 5. A number of new affordable homes were completed: 10 @ Glenshellach, Oban, 10 @ Connel, 10 @ Islay and 17 @ St

Cuthbert's, Dunoon between October to December. 6. Minard Primary School won a national competition for its innovative ways of making waste go for further. Instead of using

traditional recycling methods for disposing of waste paper, pupils at Minard Primary School have been turning it into recycled paper briquettes which can then be used in the community as fuel. As a result of this ingenious idea, Minard Primary was crowned the winner of the Community Resources Network Scotland (CRNS) School Challenge Competition. http://crns.org.uk/schools-challenge/

Key Challenges The significant reduction in grant funding is a major issue for the Council, to ensure we respond to the increasing demand for high quality services. Changes to our Population are causing growing pressures on housing, social care and other services, even though the actual numbers of people living in Argyll & Bute continues to decline. 1. Review of Political Management Arrangements 2. Local government Elections 2017 and new Council induction. 3. Address the challenges associated with recycling and waste treatment in the medium to longer term in view of the longer term

financial risks and future landfill ban affecting this statutory service. 4. Secure funding that ensures that there is an integrated approach to the five key infrastructure priorities identified in the Single

Investment Plan (SIP) namely delivering high quality mobile and broadband; a wide range of housing and business accommodation; improved transport links; improved marketing and promotion of Argyll and Bute; and improved skills and staff required to grow the local economy

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5. Continued work with the HSCP to ensure that the support services are as efficient as possible, by developing joint working, joint processes and exploring co-location

6. Deliver a successful recruitment process to establish independent members of a Leisure and Library Trust Board. 7. Production of medium to longer term financial strategy for the Council.

Action Points to address the Challenges The ongoing challenges of funding reduction and population change are considered at every stage of service design and delivery. 1. Short Life Working Group fully supported to consider options for future Political Management Arrangements model 2. Experienced team in place to deliver electoral process and induction for new Council. 3. Develop a new Waste Strategy based upon a new 25 Year Waste Financial Model and continue to work with the community to

improve and increase recycling performance 4. Progress the Single Investment Plan (SIP) with its key purpose of identification of potential funding mechanisms for critical

infrastructure projects that will help create a step change in the delivery of economic growth through an anticipated Rural Growth Deal (RGD) agreed with the Scottish and UK Governments.

5. Continued close collaboration with HSCP management is essential to maximising efficiencies and opportunities for the HSCP and the council

6. Preparing a report for elected members to agree the recruitment process for membership to the Leisure and Library Trust Board. 7. SMT held a session in December to consider key principles that would underpin the medium to longer term financial strategy

and a report will be prepared for Council asking them to agree that officers undertake work to develop a medium to longer term financial strategy incorporating these principles.

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