Decision details

A 5 year plan to increase the amount of works completed by the Operational Services Department on behalf of the Council.

The Commercial Services Manager submitted a report detailing the Operational Service Department’s (OSD) five year growth strategy.

The report noted that15 fixed term contract posts had previously been approved to enable a reduction on the reliance of sub-contractors and provide additional capacity within OSD to carry out more commercial building works. This formed the first stage of a strategy to increase the amount of work completed directly by the internal service on behalf of Chesterfield Borough Council. By operating an efficient internal service, any operating surplus achieved would be retained by the Council and there would be provision for more flexibility and control over staff deployment.

The main area of growth proposed in the report was to increase the amount of the Council’s HRA Capital Programme that was to be completed by OSD. Over the previous four years the operating surplus for OSD had been in decline however a number of management actions had taken place during 2016/17 which had resulted in the operating surplus for 2016/17 increasing. 

The overall strategy for the future commercial operation of OSD would be to become the building contractor of choice within Chesterfield and North Derbyshire that would return investment to the Council and the community. To achieve this the priority for OSD would be to develop a dynamic and flexibly skilled workforce to meet future work demands. Appendix 1 of the report identified the proposed growth programme for OSD over the next 5 years. The percentage of programme carried out had been planned not to exceed £12million in case the capital programme budget was reduced in the future.

OSD had been appointed as the Principal Contractor to carry out refurbishment works as part of the Town Hall Restack. Additionally OSD had been successful in winning the refurbishment works for the Register Office on behalf of Derbyshire County Council. A team of existing staff would be allocated to carry out these works and would need to be ‘backfilled’ to ensure the continuity of on-going work commitments.

OSD had also received an increased number of private commercial building work enquiries. This increase was primarily due to a promotional leaflet that was distributed to households in March. The report proposed an increase in staffing levels to provide enough staff to complete the increase in work. There would be sufficient budget available to fund growth areas identified with no increase in budgetary spend as a result of recruiting the additional posts.

The report provided details of the risks associated with the 5 year growth programme and mitigating actions. An equalities impact assessment had been carried out and a summary of the outcomes was included in the report.

*RESOLVED –

1.   That the share of the HRA Capital Investment Programme 2018/19-2021 allocated to the Operational Services Department be increased, as set out in paragraph 6.1 of the officer’s report.

2.   That the following permanent posts be added to the Operational Services Department structure over the next five years:

2017/18 – 8 Craft employees; 1 Technical Officer and 1 Estimator position

2018/19 – 3 Craft employees;

2019/20 – 21 Craft employees and 2 Technical Officers

2020/21 – 6 Craft employees

2021/22 – 9 Craft employees and 1 Technical Officer

3.   That the job description and person specification for the post of Technical Officer be re-visited and the salary uplifted, as appropriate, to support recruitment and retention of officers to this critical post.

4.   That recruitment to 10 Fixed Term Contract positions for fifteen months be approved.

5.   That recruitment to 2 apprenticeship posts be approved.

6.   That delegated authority be granted to the Commercial Services Manager to recruit and appoint to the new positions.

REASON FOR DECISIONS

To reduce usage of external contractors by providing additional capacity to carry out commercial building works, to retain operating profit for re-investment and to support the Council’s Workforce Strategy.