Agenda item

Report of Head of Facilities Management (Tri-Borough)

7.1       The Committee received a report that provided an overview of the total facilities management (TFM) service that was implemented in October 2013.  It covered both the outsourced service provider (Amey) performance and information on the in-house FM team (Link) working for the Tri-borough councils including added value and objectives.

7.2       The report provided details of what had gone well and what changes were required to improve service delivery.

7.3       The Committee was asked for views on the perception of the service delivery in order for consideration to be made in regards to taking the service forward.

7.4       The Committee considered the issues set out in the report and submitted questions to Debbie Morris, Head of Facilities Management (Tri-borough).

7.5       Members asked whether a list of the problems identified following the transfer of the contract to the new provider had been recorded to inform any future change in contractor.  Questions were also asked about whether the Council had the option to terminate the contract early.  Ms Morris informed the committee that information regarding the problems identified during the transition of the FM contract would be compiled as there would need to be an exit strategy for the future relet of the contract.  She advised that the contract was performing well so there was no reason to end the contract prematurely.  She highlighted that while this was possible it would involve a significant sum at this stage.

7.6       The Committee asked whether any financial deductions had been imposed by the enforcing of the Payment and Performance Mechanism within the contract.  Members were informed that £370,000 of penalties had been implemented.  The mechanism was a useful tool to achieve improvement in the contractor’s performance.

7.7       Members noted that LINK had identified duplication of facilities management costs at WCC depots and enquired whether building maintenance costs accrued by the Council had been reclaimed.  She confirmed that the information had been passed to Corporate Property to make the necessary lease changes and recover costs accordingly.

7.8       Ms Morris was asked whether the contract took advantage of economies of scale by purchasing wholesale electricity and gas on a Tri-Borough basis.  She advised that this had not occurred as it was not included within the specification of the contract although she stated that there was the ability to do so if desired.

7.9       Ms Morris was asked how feedback on how the contract was operating was gathered from service users.  She explained that this information was obtained through an annual customer survey.  She stated that to date the contract had not focused on the quality of performance due to issues encountered at the transition to the new contract.  There was an intention to focus on this in the future.

7.10    The Committee asked whether contracted staff received as a minimum the London Living Wage and whether staff’s perception of Amey as an employer had improved since the start of the contract.  Ms Morris explained that many of the current staff transferred to Amey under TUPE.  The issue of paying the London Living Wage was presented to the Tri-Borough Shared Services Board and EMT last year but was not supported.  She advised in relation to Amey, there had been a significant change in the management structure since the start of the contract.  There had been a high turnover in staff in the early stage of the contract but satisfaction amongst the workforce had since improved.  Amey had improved the training provided to staff and people were now being paid on time.

7.11    RESOLVED: That the report be noted.

7.12    ACTIONS:

1.    Provide the Committee with a summary of the results of the annual staff survey to determine whether the perception of the service delivery resonates with members’ own experiences.

2.    Provide the committee with details of what the additional cost would be to the City Council of paying service provider staff the London Living Wage.

3.    The Committee would like details of the types of issues covered in the biannual report submitted to the relevant scrutiny committee at the Royal Borough of Kensington and Chelsea with a view to requesting a similar biannual report of Westminster’s performance.

(Action for: Debbie Morris, Head of Facilities Management, Tri-Borough)