Issue - meetings

To receive and consider report 41/06 of the Strategic Director. 

Introduction and Report Summary

This report relates to the Direct Services Organisation (DSO) performance and financial review and its viability as a Council service.

It also relates to Address Management which has been integrated into the DSO administration.

The Contact Officer for this report is Bill Farrar, Deputy Director (Commercial Services), Tel: 01235 540202 ext 356

Recommendation

The Executive is recommended to:

Recognise the high performance of the DSO during the past 12 months and its continuing improvement.

Endorse the continuation of the DSO subject to its ongoing financial viability and achievement of its Business Plan.

(Time: 4.56pm to 4.58pm)

The Executive received and considered report 41/06 of the Strategic Director regarding the Direct Services Organisation's (DSO) performance and financial review, and its viability as a Council service. 

The DSO’s work consisted of a wide range of useful services to the Council and external customers:

• sewer treatment works, sewer blockages and emptying septic tanks
• minor building works and repairs and maintenance of car parks and public conveniences
• emergency call-outs, flood prevention, committee set-ups and internal office moves
• Address Management, the generic term for the statutory duties relating to street and property naming and numbering, as well as road closures, was also given to the responsibility of the Deputy Director (Commercial Services). In order to manage both aspects, Address Management was linked to the DSO which enabled them both to share admin resources with additional support from Building Control

Over the past 12-months, the Deputy Director had worked closely with the DSO introducing significant improvements such as:

1.      Increased income through generating more business and setting relevant operative rates

2.      Prompt recharging and termination of DSO recharging back to itself

3.      Better financial control with simplified accounting and reporting systems

4.      Reduced expenditure through better procurement and operational and admin efficiencies

5.      An overall commercial approach

The DSO had risen well to the challenge and showed all the signs of being a strong successful business-like unit that had real potential to develop.  It had provided excellent minor building and drainage services to various external bodies and generated substantial income.  It also provided similar services to many Council departments and was always on hand to deal with emergencies.  The professional and committed attitude of the workforce added confidence in this well-organised and efficient unit, which was a credit to the Council.  The high demand for its services and the quantity of compliments illustrated the popularity of the section.  Assuming a steady plan of improvement was applied it was hoped that the budget deficit, already reduced significantly in 2005/06, might reduce by further over the next few years.  A five-year Business Plan was being prepared in which there was a real expectation to financially break even in 2008-09. 

The Executive concluded that the DSO provided the community with a cost effective quality service which could enhance and support the Council through its e-working and procurement of contracts.  The scope for business development had been demonstrated by the recent return of the Vale public conveniences cleaning contract which should produce an effective saving to the Council as well as providing more control and improved standards.  The DSO was continuing to explore with other local authorities ways of making services better and more cost effective through possible partnering and joint working. 

RESOLVED    (by seven votes to nil)

(a)        that the high performance of the DSO during the past 12 months and its continuing improvement be recognised; and

(b)        that the continuation of the DSO be endorsed, subject to its ongoing financial viability and achievement of its Business Plan.  ...  view the full minutes text for item 55