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APPENDIX
DUMFRIES AND GALLOWAY COUNCIL
Enterprising DG Commercial Development Plan
Prepared by the Head of Enterprising Services
26 May 2016 – Version 1.0
Version Control: v1.0 Draft for discussion with DGFirst Management Committee on 3rd June 2016
An overview of the development of an Enterprising Service within Dumfries and Galloway
Enterprising DG Page 1
Executive
Summary
• This commercial development plan demonstrates our Council’s commitment to developing and delivering an enterprising service within
the Council. This enterprising service– Enterprising DG – will deliver from within the new Directorate of Economy, Environment and
Infrastructure, and will deliver for the Council:
• A revised and streamlined management structure, which brings together complementary services and gives us a platform to
commercialise and grow our service offerings;
• A centre of excellence for enterprising services, which will work across the whole Council to increase our commercial focus;
• Through this more commercial focus, an increased level of activity;
• A platform on which to build our Region’s economy, where we work side by side with our Region’s small and medium sized
enterprises to deliver real and sustainable economic growth; and
• A surplus which will be available for reinvestment in the Service, or to support other priority frontline services.
• In delivering these benefits, we have devised a new governance structure, where Elected Members are strategically involved at the very
heart of everything that we do. This transparency and open book accounting will require the development of new and effective financial
frameworks within the Council, to ensure a common understanding of our cost base, our approach to charging and cost recovery, and to
the benefits of being more enterprising in everything that we do.
• Enterprising DG will function as a commercial service provider internally to our Council, and using the freedoms, powers and permissions
available to us, locally across our Region, and nationally. By delivering quality, value for money services, and by continuing to learn from
customer feedback, we have a strong platform from which we can build a successful Enterprising DG and contribute in a real and
meaningful way to our Council Priorities.
• To deliver our ambitions will require change; our revised management structure and our new brand are the beginning. These will be
followed with a programme of communication and development for our workforce, Elected Members, and others across the Council; we
will produce a marketing plan, which will provide further detail of the activities to grow our income. These plans and documents will be
shared with Elected Members for approval in due course.
• The remainder of this document provides a high level summary of the existing plans we have for the development of Enterprising DG.
With Elected Member support and guidance, and through our skilled workforce, partners, SMEs, and with continued investment to
maintain our competitive advantage, we can develop a new Enterprising DG that delivers real value for our Region.
Ronnie Dempster - Head of Enterprising Services
Enterprising DG Page 2
Introduction • In 2014, Dumfries and Galloway Council decided to consolidate and develop commercial services within a single service of the Council.
The outcomes to be delivered were agreed as:
• Boosting Dumfries and Galloway’s economy – putting the local economy at the centre of its strategy, aligning its immense reach and
capacity behind the economic goals for Dumfries and Galloway, and helping position our Region well to weather the local downturn
in business opportunities and take advantage of any opportunities to grow the local economy;
• Supporting the Dumfries and Galloway economy through maximising the benefits accrued from existing and future business
opportunities in partnership with SME’s and micro employers across the Region;
• Generating income – seeing the Council actively pursuing commercial opportunities that can bring in income to cross-subsidise other
essential activities;
• Developing and using a strong commercial acumen – where costs, worth and value are key elements of its business approach and
the Council is better equipped and positioned to use opportunities to generate income;
• Creating an organisation – with greater opportunities for more creative models for service delivery; and
• Continued and enhanced work to aid and build resilience in our communities so they are well-placed to take back community
ownership of locally important priorities best tackled through local community action and supported by the services provided by our
Council.
• These outcomes build upon the successful delivery of services that have been provided to our Council and external clients for a number
of years. The provision of these services are already a vital element of our regional economy – providing annual services valued at over
£44 million, supporting the employment of 1,400 individuals, annually sub-contracting work valued at £17 million, and building the skills
and expertise of the next generation of our workforce by providing trade apprenticeships to young people within our Region. This
business plan establishes the foundation to further grow this significant contribution.
• We have an opportunity to further develop our market knowledge and expertise. We will use our knowledge and expertise to expand
our service offerings to new markets, new customers, or new services, where there is a clear business case for us to do so, and where this
direction is approved by Elected Members. Our summary financial plan, demonstrating this growth, is included at Appendix 3.
• It is a fact that small and medium sized businesses find it difficult to win significant levels of contract work from the public sector, due for
example to issues with procurement processes (principally the time and cost involved in pursuing tenders with no guaranteed return) and
the packaging of work (where many contracts are seeking multi-trade skills that simply do not exist within many of our small businesses).
• Enterprising DG will provide regular and straightforward routes to market for these small and medium sized enterprises within our
Region, providing them with access to opportunities that would not otherwise be available to them.
Enterprising DG Page 3
• We already have a number of established sub-contractors who provide services on contracts which we have won, and we are constantly
seeking to expand this listing. An extract from the listing of our current sub-contractors is included at Appendix 5. We maintain our
listing of sub-contractors, in accordance with EU Procurement Regulations, within a ‘dynamic framework’, allowing businesses to join our
framework of sub-contractors at any time, subject to their demonstration of the required standards. All enterprises within our Region, no
matter their size, therefore have the opportunity to work with us to deliver services for the communities of Dumfries and Galloway.
• In addition to assisting local businesses to expand and grow, Enterprising DG will have a key role in assisting the Council in addressing the
financial challenges that it faces. We will do so by providing our services in an economic and efficient manner, therefore increasing the
financial contribution made to the Council by these services. This is not solely about front end cost efficiencies, we need to review
internal costs and overheads to ensure value for money and cost effectiveness for Enterprising DG and our Council. Our current estimate
in respect of this increased financial contribution is also included in our financial plan at Appendix 3.
• Therefore, to be successful, we will provide a range of services, to a number of customers, in partnership with many local businesses, and
look to develop commercial opportunities that both support our Council and benefit the wider economy of Dumfries and Galloway.
• In delivering the reshape of the Council, it was agreed that this ‘Enterprising Service’ would be delivered from within the Economy,
Environment and Infrastructure Directorate. In August 2015, the Head of Enterprising Services was appointed, with the clear remit to
deliver against this agenda. In delivering the Enterprising Service – Enterprising DG – the Head of Enterprising Services has developed a
vision to generate income to support priority front line services by:
“Building the local economy by developing and delivering a range of high quality, value for money entrepreneurial services, in
partnership with local small and medium sized enterprises.”
• To deliver this vision, Enterprising DG will require to be better and different from what we currently have – working with renewed pace
and increasing our ability to react to the market. This is recognised and acknowledged. At the same time, however, we must recognise
that we already have a proven service delivery and commercial track record, built up over a number of years, of successfully delivering a
number of these services. We are therefore in the fortunate position of enhancing and improving what we currently do, rather than
building something that we currently do not have.
Enterprising DG Page 4
• In delivering against this vision, each service development by Enterprising DG will therefore require to deliver against one or more of the
following principles:
• To generate a surplus, to be available for re-investment in the service or to support other priority front-line services;
• To maximise the utilisation of the workforce and other assets;
• To develop the skills of our workforce to enrich their jobs and allow us access to new markets;
• To develop a market that currently does not contribute to the economy of our Region;
• To maintain and build our SME community, through Enterprising DG leadership.
• In bringing forward strategic service development cases for Elected Member approval, we will ensure that we only seek approval for
developing our services where they meet one, or ideally more than one, of the above principles.
Enterprising DG Page 5
Services What do we currently do?
• We currently provide a range of services to and on behalf of our Council. These services include roads maintenance and improvement,
waste and recycling collection, vehicle and plant maintenance, catering, cleaning, and building maintenance. Further detail on each of
these services is included at Appendix 2.
• In addition to the provision of services to the Council, we also currently provide services to a number of other bodies, including Police
Scotland, NHS Dumfries and Galloway, Housing Associations, and Utilities. A listing of our external contracts is included at Appendix 4.
• In total, these services currently generate revenue of £13 million per annum. Later in this document we outline our aspirations for the
further growth and development of these services, which we anticipate will deliver 40% growth in this work in the next 3 years.
What could we do?
• The legal framework within which the Council operates continues to evolve. Our duty to secure Best Value, the repeal of the Compulsory
Competitive Tendering regime, our duty of community planning, together with our power to advance well-being, together create a new
legislative framework which gives us real flexibility to identify, organise and deliver the best services within our local communities. We
now have the freedom and authority to form partnerships and relationships with other local authorities, community planning partners,
the voluntary sector and, to a more limited extent, with the private sector also. Legal barriers to innovation have been removed, within
this framework of accountability and Best Value. We therefore have the necessary legal freedoms to pursue our policy intentions.
• Provision of service to external organisations should not however be undertaken simply for its own sake, and we must have due regard to
the balance of risk and reward when considering opportunities.
• Based on our historical practice, we can clearly demonstrate that our external service delivery has not simply been about revenue
generation; our practice to date demonstrates our desire to meet the social needs of our communities in a manner that generates a
surplus and contributes to the costs of providing services. An excellent example of this is our recent creation of a Social Enterprise Car
Wash, which provides young people with life challenges with real-life work experience.
• Notwithstanding the above, we are mindful of the importance of good governance in all that we do. We therefore propose that all
strategic developments made by Enterprising DG are underpinned by a costed business case, and assured by the Councils Section 95
officer. This process will ensure the continued safe decision making and governance, both of which are fundamental to the continued
protection of public resources.
Enterprising DG Page 6
• Some of the opportunities that have recently been available to us, or are currently available to us, include:
• Loreburn Housing Association - reactive repair and maintenance contract
• Trunk Road Maintenance and discrete scheme works
• Design and Build – Agnew Park Development
• External Vehicle Maintenance provision
Loreburn Housing Association – A key external service opportunity, involving a substantial element of our in house building and maintenance
staff and local SME’s in building trades and Gas Servicing. Developing the skills of the in house operatives, utilising mobile technology for
efficiency and performance and allowing appropriate access to our partnering subcontractors. Provision of local suppliers for materials and a
programme of trade’s apprenticeships, growing our own for future development. Resulting in a customer satisfaction of 99% for Loreburn
Housing Association.
Trunk Road Maintenance and Repairs – Working to Scotland Transerv, utilising predominately local subcontractors for the delivery of
maintenance and winter operations. Council operational staff supplement the delivery when operational ability permits from our own
Council Roads and during winter operations. Maintaining this partnership has allowed the opportunity under the Enterprising DG for local
contractors to obtain linkages to within a multimillion pound contract, within our ISO accreditation and providing training to achieve specific
qualifications, such as sector scheme approvals which would not be available to SME’s.
Design and Build – Agnew Park Development – Enterprising DG in partnership with other Council Services designed the new Agnew Park
pavilion. The project was managed by Enterprising DG building and maintenance staff with the majority of the building and construction
work being placed to locally based organisations from across Dumfries and Galloway.
External Vehicle Maintenance Provision – Provision of vehicle maintenance services to both local and national business. Maintaining vehicles
utilising our own Enterprising DG maintenance technicians but supplemented by local suppliers of parts and equipment and local garages to
supplement capacity. Developing the skills of the in house operative’s workshop staff, utilising mobile technology for efficiency and
performance and allowing appropriate access to our partnering garages to previously unavailable markets. Developing trades apprentices
and utilising Mobile technology to improve efficiency and performance servicing cars, vans buses to stretch limos together with our own
council fleet.
Enterprising DG Page 7
What should we do?
• Our Council’s entrepreneurial approach has seen it evolve from funding and delivering traditional support services to developing a
customer-focused approach that subsidises service delivery through appropriate income generation. As a result, there is currently a
spectrum of commercial activity across the Council.
• This currently ranges from taking a more business-like approach to community development activity (for example using Council grants to
lever additional funding) through to developing new services (for example property maintenance, MOT facilities, potential housing /
property development).
• The return on investments will be different across activities based on the nature of service, but this will be clearly reported and justified
as part of our strategic case for business development.
• Our summary financial plan for an Enterprising Service is included at Appendix 3. From reviewing this summary financial plan, the
following highlights should be noted:
• Our turnover will increase from just over £44 million in 2015/16 to over £49 million in 2018/19, an increase of 12%;
• Our turnover from Council contracts will remain relatively constant during this period, at £31 million;
• Our increased turnover between 2015/16 and 2018/19 will be provided from external contracts, representing an increase in external
income from just over £13 million in 2015/16 to just over £18 million in 2018/19, an increase of 38%;
• The bottom line financial contribution to the Council, used to support priority frontline services, will increase from £336k in 2015/16
to over £600k in 2018/19, an increase of 75%, in line with commitments already made to the Council;
• The anticipated value of work provided to local sub-contractors will increase from £16 million to £21 million.
Marketing Plan • Since embarking on its entrepreneurial journey, our Council has invested significantly in developing the capacity and capability to deliver
on its commercial ambitions. Enterprising DG values its involvement in regional and national networks, as well as the knowledge and
support we gain from collaboration with other public, private and voluntary and community sector organisations.
• An inclusive ‘centre of excellence’ will be developed by Enterprising DG that reflects the entrepreneurial leadership attributes required.
We will train Elected Members and staff on commercial thinking and develop the skills of all, which will be a key element of our success.
We are already working with Solace Enterprises, Association of Public Service Excellence, and private sector partners in this area.
Enterprising DG Page 8
How will we retain the business we have?
• In any service that currently delivers services to a value of £44 million, a key determinant of future success will be not only attracting and
delivering new business, but retaining the business that we currently have.
• As a local government body, we have a duty to secure Best Value; therefore services that Enterprising DG provide internally to the
Council require to demonstrate, on a regular basis, that they are being delivered in accordance with the Best Value regime. This requires
the Council to consider alternative models of delivery and, as required, to test this in the open market.
• To retain this business, Enterprising DG therefore have to demonstrate continuous improvement in our service delivery. We will further
develop our approach to this, which will include:
• Demonstrating continued efficiency through reducing costs;
• Comprehensively comparing our service delivery and cost with similar organisations / services, through a robust benchmarking
framework; and the application of a balanced scorecard approach;
• Reviewing our financial reporting requirements, and regularly reporting our financial results in a transparent way.
• We would wish to involve Elected Members, and senior commissioning officers in other services, in these developments to ensure that
throughout the Council there is a common understanding of not only the services that Enterprising DG delivers, but also the value that it
generates.
• An initial cycle of our work, which is in accordance with the Council’s business planning guidance, is shown below:
Enterprising DG Page 9
• Strategy: This will involve analysing our markets and service provision, and developing strategic cases for market and/or service
development. We expect Elected Members to be involved in this strategic element.
• Plan: Where, based on our strategy, we identify our desired outcomes, develop our business cases, set priorities, target, actions and
budgets. We expect Elected Members to have a scrutiny role in this activity, with the detailed assurance being provided by Officers.
• Do: Where we implement projects, programmes, and actions. During this stage we also gather information and monitor performance.
Elected Member involvement at this stage will be by exception.
• Review: At this stage we review our performance, financial outcomes, and risk. We will report this to Elected Members through a
Balanced Scorecard approach.
• Revise: Where we evaluate our priorities, targets, and outcomes, and consider the lessons learned.
Enterprising DG Page 10
How will we attract new business? Where will we attract new business from?
• Enterprising DG will have to proactively market its services both internally to our Council but also across our Region to maximise
opportunity, to develop business, and to support the local economy by maintaining local business within our region.
• Enterprising DG monitors contract opportunities across all business sectors including the NHS, other local authorities, private sector and
the South West Hub for availability of work that sits within the context of the Enterprising DG and that can support collaborative and
partnership working with local SME’s and/or other Councils in service delivery. This will further develop around the Enterprising centre of
excellence where opportunities can be developed across all council services to the benefit of our Council.
• As demonstrated in our financial plan, Enterprising DG will aim to increase the value of services it delivers to external customers. In doing
so we will, as a first step, require to retain the work that we already do for our external customers (as outlined elsewhere in this plan) and
that will require a focus and processes similar to that outlined above in respect of the retention of our internal business.
• The work that we currently do for external customers is typically obtained through a competitive tendering process, with contracts
advertised in accordance with EU Procurement Regulations. These tenders are typically let for a period of 3 or 4 years, and we therefore
require to re-tender to retain the work at these intervals.
• By closely monitoring the advertisement of relevant procurement contracts, Enterprising DG identify contracts which may be of interest
to us. These opportunities will typically fall into of three categories:
• New customers: where a new customer is seeking a service that we already provide to another organisation;
• New services: where a customer is seeking a service that we do not currently provide, but which is complementary to our current
service or can be delivered by using / expanding our established skills base;
• New markets: where a customer within a market that we do not currently operate in is seeking a service that we provide elsewhere.
• Through our established processes, we can identify which opportunities are within our areas of expertise, and commence the submission
of our response to the procurement tender. We would expect that Elected Members would wish to be closely involved in this process, in
for example determining what tenders we should pursue, our attitude to risk and reward, and ultimately the financial return required for
the Council in respect of these contracted services. We will continue to work with Elected Members on developing the processes to
support their important governance role in this respect.
• In addition to the above formal processes, through our continued customer engagement, we always seek to maximise the services that
we offer to our current customer base. This process involves ensuring that our customers fully understand the range of services that we
provide, and wherever possible providing additional services to our established customer base.
Enterprising DG Page 11
What do we need to do differently?
• Enterprising DG is about taking all we have done so far, and resetting our pace and focus through our clear vision. We will forward plan
to ensure Enterprising DG is prepared to deliver quality service provision, efficiencies, and increased income generation. Creating an
organisational and commercial culture that mobilises talent, enables people and provides a learning environment that will give people
the confidence to make the right decisions. By delivering the new Enterprising DG through our People, Performance Improvement and
Efficiencies principles we will drive down costs, maximising income, and become more innovative.
• Our whole Council needs to be more commercially focused. We will establish the ‘Enterprising Centre of Excellence’ and through this
centre will progress a programme of training and development, not only for Enterprising DG employees, but also other employees in
other Services and Directorates throughout the Council, and Elected Members. Our aim is for our whole organisation to behave in a
more commercially focused manner as is now required of local government, due to the funding, demographic and service pressures
which we face.
• Within Enterprising DG, the management team (as outlined at Appendix 1) will require to work across their functional boundaries – to be
successful each Manager will require to have an understanding of the services provided by their colleagues. The Head of Enterprising
Services will ensure this through a process of continued training and development for his management team.
Operational
Plan
How will services be delivered?
• The Enterprising DG extended Management Team and Enterprising Sub Committee will oversee the effective delivery and
implementation of the commercial plan. This will be supported by an annual operational and team plans, providing more specific detail
on commercial initiatives to be developed and implemented within each financial year.
• Our services will continue to be provided in accordance with our established processes, which include our quality management processes.
In respect of certain contracts, this includes International Organisation for Standardisation (ISO) certification; in other contracts, we
utilise our own bespoke quality management system based on ISO standards.
• We consider that the further development of our quality management systems to be one of our areas of focus; we will therefore report
our intentions in this area to Elected Members in due course.
How will we work with sub-contractors?
• In respect of our work with sub-contractors, there are two recent examples which highlight our partnership approach to working with
local businesses:
Enterprising DG Page 12
• Agnew Park: Enterprising DG Building and Maintenance Service have carried out the Design, build, and redevelopment of Agnew
Park Stranraer. Working closely with our colleagues in design services, economic regeneration and property services the project is
now complete and a new SME thriving in the new pavilion extension. Enterprising DG Building and Maintenance Service works
collaboratively with local trades within Dumfries and Galloway where possible to stimulate the local economic and allow local
business to be part of larger projects, which could potentially be out with their reach.
• The following contractors have successfully bid for works on the Agnew Park project to supplement the Enterprising DG Building and
Maintenance Service. The contractors were:
Border City Windows Bruce McGarva Joinery
Contract Flooring Curtis Moore
D Inglis & Sons David Hardie Engineering
Derek Mitchell Electrician Douglas Dairy Supplies
Gibson-Wight Ltd H Hollis
J&J Currie Ltd J&J Runcie Plasterer
James Scott & Son Ramsay Landworks Contracts
Smith & Curtis
WC in Fields
Based on our evaluation of the project, some 75% of the construction works and business was procured locally from within Dumfries
and Galloway. This does not include our own staff/resources used on the project, which would put our spend on the project local
well over 85%
Enterprising DG Page 13
• Loreburn Hall: Building and Maintenance Service is committed to supporting the local building trades within Dumfries and Galloway and engaging with the business community to ensure as much of the business as possible stays within Dumfries and Galloway whilst supporting our in house trades and helping to develop our apprentice programme. During the Loreburn Hall DGOne project local SME’s successfully tendered for works on the Loreburn hall project to supplement the staff and resources from within the Enterprising building and Maintenance team. The contractors were – Enterprising DG Building and Maintenance team, plus:
3b Construction
Bell Electrical Bruce McGarva Joinery
Chubb Fire Point
Galloway Carpets Gibson Blacksmiths
Jones & Howat Lee Glover Roofing
Les Martin Plastering McKay Flooring
Mick Adams Tiling Ramsay Landworks
Ricky Lockhart Decorating Richardson & Starling
S&D Plumbing Soccarena
Based on our evaluation of the project, some 84% of the construction works and business was procured locally from within Dumfries and Galloway.
Governance – new sub committee
• In accordance with the reshaping of the Council, the committee structure is also undergoing a period of change. This has recent ly been
the subject of a report to Full Council, where a Scheme of Administration and Delegation to Committees was approved.
Enterprising DG Page 14
• This Scheme has established an ‘Enterprising Services Sub-Committee’, with a remit of “consideration of matters relative to the
development and business management of all services within Enterprising Services, including Trading Operations, and providing an
appropriate level of scrutiny and consideration of matters relative to the Service’s tendering for contract works and external trading.”
• This Sub-Committee will effectively operate as the ‘Board’ for Enterprising DG, and we will work with Elected Members in the coming
months to ensure an effective partnership between Members and Officers.
• The Enterprising Services Sub-Committee will oversee the Commercial Plan. In addition, other Service Committees will be encouraged to
have a role in regularly reviewing and scrutinising progress and delivery. At an officer level the Enterprising DG Management Team will
monitor the progress of the commercial development plan and report regularly to the Enterprising Services Sub Committee on progress.
The Commercial Development Plan complies with our council’s existing corporate governance arrangements including Financial Standing
Orders.
• It is important that our Council is risk aware, rather than risk adverse, taking an informed view of potential risks and deciding on the
extent to which it wishes to tolerate, mitigate or avoid them. The Enterprising DG management team will maintain a strategic and
project-level risk register that will be reported to the Enterprising Service Sub Committee.
• Details of delegation from Full Council to the Enterprising Services Sub Committee are provided at Appendix 6.
Management
Structure
• A revised management structure for the successful delivery of this business plan has been developed. This structure is outlined at
Appendix 1.
• This structure has been developed in accordance with the reshaping of the Council. The Head of Enterprising Services is already in post.
The other posts will be matched / recruited to over the next number of weeks, and we expect the revised structure to be fully operational
(subject to any external recruitment that may be necessary) by July 2016. In developing this structure, the Head of Enterprising Services
was mindful of the need to:
• Develop a structure that is substantially different from that which has existed previously;
• Be as efficient and effective as possible, ensuring that services provided to the Council clearly demonstrate our duty of Best Value;
• Develop a structure that provides a platform to do business differently – for example by bringing roads and waste services under
common management;
• Provides capacity to develop services to be provided to other organisations, based on our successful track record of providing those
services to our current customer base.
Enterprising DG Page 15
Financial Plan • In 2015/16, our turnover was in excess of £44 million; by delivering our intentions in this area we are confident that by 2018/19, our
turnover will rise to over £49 million. Against the backdrop of decreasing public sector finances, this represents an increase of over £5
million, or 12%, in this 3 year period. Our contribution to the Council over this period also increases.
• Over this period, these financial results allow us to:
• Sustain a workforce of 1,400;
• Invest in the next generation of employees, by recruiting and retaining young people on apprenticeships;
• Make a significant contribution to the local economy, by working with some 456 sub-contractors and anticipating an increase of the
amount of work sub-contracted from £17 million to £21 million over this 3 year period;
• Allocate surplus profit, over and above that already committed to the Council, for reinvestment in Enterprising DG and/or supporting
other priority frontline services
Enterprising DG Page 16
Appendix 1
Director Economy , Env ironment and Infrastructure
Alistair M Speedie
Ronnie Dempster
Head of Enterprising Services
Enterprising DG
Commercial Manager
Catering and Facility
Operations
Roads Maintenance and
Waste Services Manager
Building Maintenance and
Construction Manager
Vehicle and Plant Services
Manager
Commercial Business
Development Manager
Building Cleaning
Caretakers
Catering
Stores and Logistics
PAT testing
Print Unit
Roads Maintenance
Winter Service Operations/delivery
Emergency Response Delivery
Street lighting operations
Waste Collection Service Operations
Building Construction
Building Maintenance & refurbishment
Responsive Repairs
Term maintenance
Vehicle maintenance operations
MOT preparation
Radio Maintenance
O-Licence
External fleet maintenance
Business and market development
Commercial business strategy
Branding and marketing
Commercial/technology integration
Quality management
Customer engagement/satisfaction
Business Performance and administration
Commercial Risk Management
Enterprising DG Page 17
Appendix 2
Facilities Services – Current Service Provision
Catering • School Catering: School Meals (primary and secondary), Meals on Wheels & Internal hospitality within schools
• Emergency Catering: Emergency response to communities & schools in the event of minor & major incidents including inclement weather
conditions i.e. flooding/snow
• Commercial Catering: External Hospitality, Civic Events
Cleaning • Building Cleaning: Schools & Office Cleaning, Window Cleaning, & Contracts.
• Commercial Cleaning: Provides general and commercial cleaning to private customers i.e. DGHP/Loreburn
• Emergency Cleaning: Emergency cleaning is provided throughout Dumfries and Galloway and can include Nora Virus deep cleans, post
flooding cleaning.
Appliance
Testing &
Maintenance
• Portable Appliance Testing (PAT), Small Equipment Repairs, Hygiene Contract
Garroch
Logistics
• Central buying hub of supplies for Enterprising DG, contract management, provides logistics support in emergency situations
Service
Statistics
• Facilities Services cover a large rural area (6,446km² or 2,490miles²) and has a staffing complement of 957 posts broken down to 567
Cleaning posts , 365 Catering posts, 12 Garroch Logistics, 10 Management Team, 3 Support Staff
• Catering is provided in 102 primary schools, 16 secondary schools and 1 special school We produce approx. 2,000,000 school meals per
year, provide 22,424 meals on wheels, and provide function catering for more than 60,000 customers
Enterprising DG Page 18
• Cleaning is provided in 109 schools, 231 buildings (council and non-council) throughout our region, and cleans windows in 256 council
premises throughout Dumfries and Galloway
• Appliance Testing & Maintenance conducts 65,000 Portable Appliance Tests throughout Dumfries and Galloway annually across 386
council properties; carries out 800 appliance repairs.
• Garroch Logistics conduct over 4000+ annual deliveries to all schools as well as various ad-hoc council buildings; 100k mile covered pa.,
with a current value of £2.1 million.
• Centralised 160 pallet holding commercial hub, with a live stock holding of £100k at all times
• Pecos Order lines in excess of 15000 per annum.
• Phone Calls received- over 1600 per month.
• Local spend in excess off £250k and growing with our Provenance procurement culture.
Enterprising DG Page 19
Roads Service – Current Service Provision
Council Road
Network
Maintenance
Operations
Maintenance activities including:
• Winter service
• Surfacing
• Surface Dressing
• Grass cutting
• Verge Maintenance
• Patching
• Drainage & Gully emptying
• Road Markings
• Signing, Bollards & Bus Shelters
• 24/7 Emergency Response
• Flood Prevention, cleansing & Inspection
• Street lighting
Council Road
Network Capital
Operations
Site specific road improvements including
• Resurfacing
• Surface Dressing
• Footways
• Drainage
• Car Parks
Trunk Road
Commercial
Contract
Provision of full range of road maintenance activities for Scotland Transerv on the South West Scotland Trunk Road contract. Activities
• Major Surfacing works
• Road Improvements & Widening
• 24/7 Emergency Response
Enterprising DG Page 20
• Patching
• Drainage
• Verge Marker Replacement
• Grass Cutting & Verge Maintenance
• Winter Service
• Street lighting
• Signing & Lining
Public Utility
Reinstatement
Contract
Reinstatement works for national utility companies across Dumfries & Galloway
Service
Statistics
• Depots – 5 across the region
• Staff compliment - 97 manual operatives, 45 technical staff
• Length of road network maintained - 4,177km
• Provision of Capital Schemes 2015/16 - £6.3 million.
• Responsible for 22304 gullies, emptying 14393 annually
• Length of road surface dressed 2015/16 - 1,017,945sqm
• No of utility reinstatements carried out last year - 1723
• No of carriageway defects repairs carried out last year 25936
• 81% carriageway defects repaired within timescales (target 70%)
Enterprising DG Page 21
Waste Collection – Current Service Provision
Domestic
Waste and
Recycling
Collection
• Household waste collections
• Household Kerbside Food Collections
• Household Kerbside Dry Recyclate Collections
• Bulky and white goods collections
• Assisted pull out service of wheeled bins, food caddies and recycling boxes to elderly and infirm customers
Commercial
Waste and
Recycling
Collection
• Commercial waste collections
• Commercial recycling collections
• Bulky and white goods collections
• Commercial Skip Hire (Annandale & Eskdale Only)
• Servicing of Neighbourhood Services and Roads Services Skips (Annandale & Eskdale)
Service
Statistics
• Waste Collection Services cover a large rural area (6,446km² or 2,490miles²) and has a total of 110 posts which are broken down as
follows: 92 Waste Collection Staff; 11 Supervisory Staff; 7 Managers (Waste, Grounds, Burials and Street Cleaning)
• Domestic Waste Collection is provided to
• 73895 households across Dumfries and Galloway
• 15238 households in Wigtown currently receive a kerbside recycling service
• 737 assisted pull outs
• 1100 bulky uplifts on average per annum
• Commercial Waste Collection is provided to
• 2047 commercial customers
• 760 commercial recycling customers (130 of which are council buildings)
• Skip Hire service is provided in Annandale & Eskdale Area only.
Enterprising DG Page 22
Building and Maintenance Services – Current Service Provision
Current Service
Provision
• Council Term Contracts: Provision of Multi Trade repairs and maintenance service, this includes a 24hr 365 day emergency repairs cover.
• Registered Social Landlords: Working in partnership with Loreburn Housing, Irvine Housing, Devorgilla and Key housing
• Planned Preventative Maintenance: To ensure the fabric of all council properties are maintained to a reasonable standard, and are
secure, wind and water tight.
• Homeless Service Maintenance Provision: To ensure the Council’s homeless properties are maintained and compliant with all current
safety, gas and electrical regulations.
• Other Government Agencies: Repairs and maintenance service for Police Scotland, Scottish Fire and Rescue and NHS Scotland.
• Capital Spend Projects: Working with other departments within the council to carry out capital projects including refurbishment,
extension and new build projects to meet the many user’s needs.
• Zero Waste Projects: Project Management of all construction works to the Zero Waste projects.
• External Clients Capital Projects: The service is continually growing its external client base, including RSL’s, NHS Scotland, Church of
Scotland, Forestry Commission Scotland and Canine Rescue Centre D&G to date.
• Community Projects: Working with community ground to facilitate the local needs of the people of Dumfries and Galloway.
Service
Statistics
• Building and Maintenance Services cover a large rural area (6,446km² or 2,490miles²) and has a management structure of 9 plus 8 Site Managers (Construction) 29 craft workers and 11 craft apprentices (Maintenance). Maintenance is provided to: • 102 primary schools, 16 secondary schools and 1 special school
• 256 council properties
• A number of social landlords across the region to some 3500 properties
• Our Service is provided on a 365 days 24hrs basis.
• Capital works is provided to Dumfries and Galloway Council and other government bodies including Police Scotland, Scotland Fire &
Rescue, NHS Dumfries & Galloway and Forestry Commission Scotland.
• Other capital spend project for external private clients, either competitively tendered or negotiated i.e. Canine Rescue Centre D&G
Planned Maintenance is provided to:
• Dumfries and Galloway Council to ensure all council properties are maintained to a standard, and are secure, wind and water tight.
• Currently four SLA’s including Working in partnership with Loreburn Housing, Irvine Housing, Devorgilla and Key Housing.
Enterprising DG Page 23
Vehicle and Plant Maintenance – Current Service Provision
Current Service
Provision
• Fleet Maintenance
• Scheduled and non-scheduled works
• Specialist maintenance RCV’s, Sweeper, Gritters etc.
• Grounds & Plant Maintenance
• Warranty Repairs
• MOT preparation & presentation
• Commercial brake testing
• Steam cleaning
• 24/7 callout service
• Car valeting
• Commercial and light vehicle diagnostic fault finding and car and light van pass thru technology
• MOT Testing (Coming Soon)
Service
Statistics
• Vehicle & Plant Maintenance Service covers a large rural area (6,446km² or 2,490miles²) with just 24 technical staff
• 5 Workshops
• 10 Service Vehicles
• Maintain 1465 Internal assets (Across all Council Departments)
• Average vehicle age 5 years 7 months
• Maintain 329 External assets
• External customer base of 25
Maintenance Figures 2015/16
• 2592 Safety Inspections Completed
• 1250 Services Completed
• 724 MOT’s Presented
• 1278 Vehicle Condition Inspection Completed
Enterprising DG Page 24
• MOT pass rate 97% (National average 85%)
• 1383 Tyre jobs logged
• 4127 Unscheduled Workshop visits (Defects/Breakdowns)
• 4706 Electronic Purchase orders raised
Enterprising DG Page 25
Appendix 3
Summary Financial Plan
2015/16 Final
Outturn
2016/17 Budgeted Outturn
2017/18 Budgeted Outturn
2018/19 Budgeted Outturn
External Income 13,113,377 14,541,943 16,162,720 18,071,859
Sub-Contracted 5,910,086 6,950,480 8,117,011 9,495,962 Internal Income 30,901,172 30,746,879 30,939,150 31,116,124
Sub-Contracted 11,042,072 10,616,884 10,717,827 10,799,041
Net Contribution 344,605 360,000 503,000 602,000
Enterprising DG Page 26
Appendix 4
Listing of Contracts
Organisation Services Provided
• Police Scotland • Building Maintenance
• Scottish Fire and Rescue • Building Maintenance • NHS Dumfries and Galloway • Building Maintenance and Construction • Scotland Transerv • Roads Maintenance and Construction
• Loreburn Housing Association • Reactive repairs, maintenance and gas services • Irvine Housing Association • Reactive repairs, maintenance and gas services
• BT Fleet • Vehicle maintenance and repair • Dumfries and Galloway Housing Partnership • Building Maintenance • The AA • Vehicle maintenance
• T.O.M. Fleet Supplies • Vehicle maintenance • Scottish Gas Networks • Vehicle maintenance
• Scottish Water • Vehicle maintenance • Scottish Power • Vehicle maintenance
Enterprising DG Page 27
Appendix 5
Sample Listing of Sub-contractors/SME’s (Enterprising DG operates with some 460 subcontractors - in 2015/16, £17million was spent on sub-contractors)
Organisation
JAMES LUPTON LTD, MEADOW VIEW, 14C SCROGGIE MEADOW T MCKIE LTD, DEANS PARK, IRONGRAY ROAD LUCE BAY PLANT HIRE, DROUGHDUIL, DUNRAGIT
BORDER CIVILS & UTILITIES LTD, UNIT 2, IRONGRAY HOUSE DAVID HARDIE ENGINEERING LIMITED, POPLAR, BRASSWELL
CHALMERS CONSTRUCTION LTD, DUMFRIES INDUSTRIAL ESTATE, IRONGRAY ROAD JAMES G FINDLAY LTD, 1 OLD IRONGRAY ROAD, DUMFRIES SCOTT YOUNG & SONS, WESTACRES, LOCKERBIE
OAKBANK SERVICES, MOSSPARK, ANNAN ROAD LOTUS ELECTRICAL SERVICES LTD, THE COPPICE, BEESWING
JMC Contracts (Mr J Currie), Towerhill Cottage, Crawick John Jardine Plant Hire, Fairgirth Farm, Sandyhills
DONALD PEACOCK PLANT HIRE AND CONTRACTOR, WYNCUM, BRIDGE OF DEE GTR CONTRACTS LTD, TERRAUGHTIE FARM, DUMFRIES SOLWAY PLANT HIRE LTD, HORSECROOK, PORT ROAD
H Thomson & Sons, Crews, Glenluce WILSON ELECTRICAL CONTRACTOR, HALLHILL FARM, IRONGRAY
DAVID TOPPING LTD, 1 CHURCH GROVE, LESWALT T& W COCHRANE, SCENIC VIEWS, 1 EAST BALSCALLOCH FARM A M D CONTRACT SERVICES, NEWTON ROAD, LOCHSIDE
HODDAM CONTRACTING C, HIGH STREET, ECCLEFECHAN Hyslop & Marshall, Ingliston, NewtonStewart Road
GRAHAM ROSS GROUNDWORKS LTD, 30 THORN STREET, LOCHANS COLIN DEMPSTER, OLD STATION HOUSE, MOSSBAND JOHN SMITH ELECTRICA, GREENHILL, CUMMERTREES
Torbet Plant Hire Ltd, Whitecrook, Dunragit
Enterprising DG Page 28
Appendix 6
Dumfries and Galloway Council agreed on the 24th March 2016 :-
That an Enterprising Sub Committee of the Economy, Environment and Infrastructure Committee would be established which would oversee trading
operations.
The Scheme of Administration and Delegation to Committees - Enterprising Services Sub-Committee
Section 6.4.2 Enterprising Services Sub-Committee
Delegation
The remit is consideration of matters relative to the development and business management of all services within Enterprising Services, including Trading
Operations, and providing an appropriate level of scrutiny and consideration of matters relative to the Service’s tendering for contract works and external
trading.
EEI - Enterprising
Building Construction and Maintenance Services
Fleet Management
Vehicle Maintenance
Waste Collection
Facilities Management
Catering
Logistics
Roads Maintenance
Print Unit