Issue - decisions

RESOLVED:

1.     That Cabinet (subject to the required Council approval to funding):

                   I.    Approved the Customer & Digital Services (including Organisational Design) business case at Appendix A and adoption of the preferred future organisational design option Bv2;

                 II.    Supported the intention to let out the south wing of Appletree Court (ATC) to third party tenants as set out in Appendix B;

                III.    Noted the opportunity to further enhance ATC through works to the ground floor north wing, but these to be progressed subject to further approval (at additional cost), dependant on the success of the letting activity; and

               IV.    Delegated responsibility to oversee delivery of these recommendations to the Transformation Programme Board.

2.     That Cabinet recommend to Council approval to:

                V.    allocate £2.709m on an invest-to-save basis to deliver the necessary technology and organisational changes to deliver the preferred future organisational design option; and

               VI.    allocate up to £1.75m for improvements to the East wing of ATC on an invest-to-save basis, to facilitate the third party letting of the south wing and the generation of c£300,000 per annum in income.

KEY DECISION:

Report to Cabinet and Council

PORTFOLIO:

Leaders / Finance and Corporate / all

ALTERNATIVE OPTIONS CONSIDERED/REJECTED:

As set out in the report.

DECLARATIONS OF INTEREST:

None

DISCUSSION:

The Leader introduced the report and explained that the item responds to the objectives that are at the centre of what the Council does, namely the serving of residents. The Leader explained that NFDC wants residents and service users to interact with the Council in a modern, efficient and effective way that best suits their needs. The use of the Council’s assets was highlighted as an important element of the overall transformation programme and the changes to customer and digital services alongside a change in the use of accommodation could make a positive contribution to the Council’s financial sustainability.

The Portfolio Holder for Finance and Corporate Services highlighted how the Covid pandemic and the developments in technology had irrevocably changed the way that organisations work. Technology now supported hybrid working and remote working, and therefore the Council would need to reevaluate the use of its offices as it adapts to these developments. Therefore, the proposed change in use of the Council’s accommodation at Appletree Court could have both a financially and sustainably positive impact.

The Assistant Director of Transformation provided an overview of the report. The report presented two invest-to-save business cases in support of the transformation programme and its 4 key themes of: Customer and Digital Services, people and capabilities, assets and accommodation and finance and delivery.

The first business case at Appendix A enables the implementation of the transformation programme around the Customer and Digital Services. It sets out a clear future organisational design for the Council to leverage new technology, process redesign and structures to improve the customer experience and the efficiency and effectiveness of the organisation.

The second business case at Appendix B considers options to exploit the commercial opportunities of ATC and make better use of currently underutilised office accommodation. This marks the first element of a wider transformational work on assets and accommodation. The implementation of organisational design and the Appletree Court works would provide opportunities to release net financial benefits whilst supporting the wider transformation objectives.

The Medium-Term Financial Plan (MTFP) identified a targeted saving of £1.75 million from the transformation programme and the business case contained proposals to help contribute towards the delivery of this saving in line with the wider objectives of the transformation programme.

A total funding requirement of £4.459 million against an estimated annual net benefit of £1.54million would be realised with the anticipated payback period being 5-6 years. It is expected that the financial benefits would be delivered through a combination of mechanisms. These included Full-Time Equivalent (FTE) staff reductions, improved technology and rental income through use of Appletree Court.

It was highlighted that the report had been considered by the Resources and Transformation Overview and Scrutiny Panel. The Panel supported the recommendations within the report and recognised their role in monitoring the delivery of the transformation programme.

A member of the Council asked whether the transformation programme would result in the closure of all NFDC satellite offices across the District. It was confirmed that the report did not recommend the closure of any of the information offices across the District and that the Cabinet had committed to keeping a face-to-face option for contacting the Council available. The Portfolio Holder for Finance and Corporate Services reassured the Council member that the information offices and maintaining cooperation with the Town and Parish Councils was a vital part of delivering services to residents of the District. 

Another Council member asked a question on equality and diversity impact assessments. The member was reassured by The Assistant Director of Transformation that any, and all, service changes would involve considerations on the impact of service users and a formal process of specific, equality impact assessments would be undertaken.

A question was posed on the FTE staff reductions referenced as part of the programme. Cabinet heard that once the proposed technology was in place, observations would be made on staff turnover, staff vacancies and the redeployment of staff and where this may lead to natural reductions