Agenda item

To update the Committee on the development and implementation of the Shared Services Preferred Partnership with London Borough of Waltham Forest.

The Corporate Committee received an update on the development and implementation of the Shared Services Preferred partnership with the London Borough of Waltham Forest . A Memorandum of Understanding had been agreed between the two boroughs in December 2010. Members of the Committee were pointed to paragraph 7.2.1 of the report which set out the criteria being followed to assess whether a service was suitable for the two boroughs to share.  Paragraph 7.3.1 outlined the services actively being assessed as viable for a shared service . Finally paragraph 7.71 listed the resultant employment  issues to be addressed.  These were pertinent to the remit of this committee as these issues  would eventually culminate  into  proposed ways of working  for this committee to consider.

 The committee a number  of questions  and  the Assistant Chief Executive agreed to provide a written response on the following points:

1. The direct cost of facilitating the  shared service project, in terms of officer time , in comparison to the savings to be made .  Information sought on the in- house cost of the project team (In the main, council project management staff were undertaking this work with expert advice sought when needed.  However further clarification on the costs in response to this point would be provided.)

2. If the Council had identified an independent arbitrator.

3. If written notice was received for terminating the MOU, what was the timeframe for implementing this ?

4. More clarity  on the governance arrangements and how decisions are made on which services to share.

5. More information on the business case analysis on sharing of communications and legal services  which had shown that these two services were not suitable  as a fully shared service. This conclusion did not rule out  sharing elements of the service.  

6. Information on  existing joint  ventures with Waltham Forest on the  commissioning of goods and services.

There were questions about the choice of areas to enter into partnership with Waltham Forest and why bigger cost areas  were not being investigated as  these would have bigger financial savings for both boroughs. The Assistant Chief Executive explained the approach partnership working being taken. This  was to initially prove that the concept of working together as two boroughs can work . This was  through looking at how management will work together  and developing internal working relationships before then  tackling bigger issues as a partnership. In response to questions about the commitment of both councils to shared working when a clause was included to terminate the MOU  at the time of the local elections in 2014,  the committee noted that the overall aim was to have a long term partnership agreement . The two councils  would be seeking to share services that were broadly aligned  as set out in paragraph  7.2.1 . The MOU had the exit clauses to accommodate any eventuality  but the MOU also included the flexiability  for the partnership working to continue in the long term . Both councils were committed to only sharing services which had a cost benefit to both parties . If in the event that both boroughs wanted to terminate the MOU this would be after a comprehensive review.

The Committee asked if  there was an overall timeline for identifying, investigating and implementing the chosen individual  areas of shared service  and what current performance was against this. This was following changes  seen to  the timelines for the shared service project on school meals  and changes to the original list of services to be shared.  Members noted that page 20 of the report onwards set out how the criteria had been applied and where following investigation there was seen to be scope, or not, for taking forward a shared service. There was not an overall timescale  being aheared to as each shared service had its own timeline.   Certain projects  involved sharing senior staff and practices such as in Organisational Development where there were management vacancies  at Waltham Forest and reduced resources at Haringey highlighting an ideal opportunity to share a service. In HR there was opportunity to share processes such as payroll. Recruitment and HR matrix. The funding provided by Capital Ambition would contribute to supporting the running of  the projects and the conditions attached to this funding were reporting  back to the funders the progress of the shared service projects.

Following this discussion  and taking account of the responsibility the committee would have for making future employment related decisions connected to the implementation of the shared service projects it was felt to be prudent for the committee to receive a regular update report  on the progress of services to be shared with Waltham Forest . This would start from the next meeting and  be considered alongside a key report about the employment agreement to be reached between the two boroughs .

In responding to the trade union comments distributed , the Assistant Chief Executive,   gave assurance  that he was considering how the change is implemented ,  the expectation  that   both  borough’s trade unions can work together in this and both be key part of the consultation process.

The Chair advised the meeting that he expected any changes to the protocols concerning member level appointments to be considered by the Corporate Committee. There was also a need to provide clarification to the committee on the staff terms and conditions to be applied in the shared service as Waltham Forest had a dissimilar arrangements.  The chair made  clear that it would not be acceptable to  add directors  to council structure   through the guise of   a shared services, having just agreed a number of reductions in senior management posts.

Understanding was sought on whether Memorandum of Understanding agreement included the both Borough’s  ALMO’s(Arms Length Management Organisations) . The Chair understood that discussions had taken place between both boroughs ALMO’s  he would be seeking an update from the Chief Executive of Homes for Haringey on this and proposing a report to the committee if required.

RESOLVED

That the report be noted

That an update report be considered at the next meeting on September 27^th 2011.