Rother District Council Agenda Item: 6.3

Report to - Improvement and Resources Overview and Scrutiny

Date - 13 December 2010

Report of the - Chief Executive

Subject - Third Sector Service Level Agreements

Recommendation: It be RESOLVED that it be recommended to Cabinet that:

1)  the following Third Sector Service Level Agreements be entered into, subject to detailed terms and conditions:

1.  Hastings and Rother Mediation Service

2.  Hastings Advice and Representation Centre

3.  Rye Harbour Nature Reserve

4.  Society of Bexhill Museums

5.  Rother District Citizens Advice Bureau

6.  Hastings Furniture Service

7.  Rother Voluntary Action (RVA)

8.  Action in Rural Sussex (AiRS)

9.  Battle Partnership

2) the Service Level Agreement with 1066 Enterprise be discontinued in favour of a project-based relationship;

3) further controls on documenting and monitoring such agreements, outlined in paragraphs 11 and 12, be implemented; and

4) it be recommended to Council that Hastings Advice and Representation Centre and the Society of Bexhill Museums be added to the list of outside bodies to which formal appointments are made.

Introduction

  1. The purpose of this report is to bring to the Committee the results of recent work by the Service Level Agreement (SLA) Task and Finish Group and to seek Member approval for onward recommendations to Cabinet in January 2011.
  1. The Terms of Reference for the Task and Finish Group are attached at Appendix 1. The Group comprised Councillors K.P. Dixon (Chairman), C.A. Clark and C.F. Starnes. In summary, the Group undertook a scrutiny of a number of existing SLAs with the third sector and have made recommendations for the future. The SLAs seek to capture the working relationship between the Council and a number of outside bodies providing services which complement our own.
  1. The Task Group approached the work with a strong commitment to look at the facts, to take the appropriate evidence into account and, with an open mind from the outset, to make the best possible recommendations, bearing in mind the general climate as well as circumstances and conditions relating to each agreement. The Group met on three occasions and took evidence from a wide range of witnesses.
  1. It should be noted that the recommendations in this report are subject to further negotiation of the specific terms and conditions, potentially subject to confidentiality clauses, and that the Group is seeking an in principle agreement at this stage. No commitment to funding is made or implied by the use of figures in this report.

Background

  1. The Group were very well aware of the contextual issues impacting on their considerations. Primary among these are the current financial pressures facing the public sector. The results of the Comprehensive Spending Review were announced on 20 October, shortly after the Group had begun its deliberations. From this and Rother’s own financial reviews, it was clear that there would be pressure on funding and that a very strong case would have to be made in value for money terms. At the time of writing, we await the allocation of Revenue Support Grant. From this we will devise our budget strategy for 2011/2012 and revise the Medium Term Financial Strategy.
  1. Alongside the financial pressures, the Council is currently finalising its policy to design new ways of working to achieve a balance between supply and demand for our services over the short and medium term. The resetting agenda, detailed in a forthcoming revision of the Corporate Plan 2006 – 2016, is likely to include recommendations with a direct bearing on the issues considered here. This has also meant that a small number of agreements, including Rye Partnership, will be the subject of further consideration beyond the scope of this review.

7.  Since the change of Government in May, there has been renewed debate about the role of civil society, and the changing role of the third sector in the delivery of public services. There are differing views on the nature and impact of these concepts and that of “Big Society”. The following definition is drawn from the Office of Public Management:

“Big Society is a vision in which local people no longer see officialdom as the first port of call for their problems. Instead, people are enabled to develop their own ideas and set up their own groups or organisations to resolve issues … There will be a positive role for the private sector in community initiatives and local authorities may have to consider how they can position themselves as ‘brokers’ connecting local communities to local intelligence, data, capacity and skills.”

  1. It is useful in this context to understand the character of the third sector in the Rother district. The sector as a whole is essentially fairly fragmented and susceptible to the winds of change; voluntary and community organisations are most often run on a “shoe string” and reliant on the generous goodwill of a cohort of public spirited volunteers. There is no doubt that a number of such organisations offer the potential of a cost effective alternative to direct public sector provision in some service areas.
  1. The outcome of all these simultaneous reviews when known may well impact upon the recommendations of the Group, especially the availability of revenue budget. In the light of this uncertainty, the Group’s approach was to focus on finding solutions that offered essential, value for money services within the local context. The Group hope that the principles behind their recommendations and the underlying belief that the third sector in Rother has much to offer this authority will carry weight and that where possible, successful and valued working relationships between the Council and established local organisations should be preserved.

Service Level Agreements from 2011

  1. Through looking at the individual agreements, it became apparent that a few changes to the process involved in setting up and monitoring SLAs would be beneficial. These include some amendments to the governing documentation and better performance management and value control through six monthly reviews and annual reporting back to scrutiny.
  1. It is the Group’s recommendation therefore that each agreement includes the appointment of a Member Representative through the normal appointment channels. The appointed Member will be charged with ensuring a good relationship and close working between the organisation and the Council. The Member Representative will work with the SLA’s Monitoring Officer to provide a written annual report to scrutiny on the operation of the agreement. The SLA Monitoring Officer will be charged with budget responsibility and ensure that all proper payments are made and that performance against targets is well managed. A six monthly review will be carried out as a minimum and any significant problems should be brought before scrutiny at the first opportunity.
  1. It is also recommended that all such SLAs work to a fixed fee structure, with no indexing, that sets out the Council’s funding obligations in a fixed manner from the outset.
  1. In consultation with the Head of Finance, it is recommended that each SLA be fixed for a term of 4 years with a mandatory funding review and option to vary to be undertaken shortly before the commencement of year two. This aligns with the Government’s own commitment to local government to fix the level of grant for 2 years and then a further 2 years. This does not prevent the controlled termination or variation of any SLAs that fail to meet their performance targets or do not achieve the agreed outcomes in any way.

Recommendations

  1. Members are encouraged to refer to the Minutes of the meetings of the SLA Task and Finish Group which contain details of the group’s enquiries, as well as reference to further sources of data and information on the relevant organisations. The following paragraphs set out a very brief summary of the services provided, their value to this Council and the increased value to be gained in any future agreement.
  1. 1066 Enterprise

The organisation provides quality business advice, support and representation to Rother businesses to improve earnings and reduce the disparity between the Rother economy and that of the South East as a whole. The Council has seen good value for funding invested with this organisation in the past, including to the rural shops and post offices group, support for a number of Rother enterprises, including Etchingham Stores and Tilling Green Store, as well as to the Chambers of Commerce. The Group is recommending that the Council take a targeted approach to sponsoring business support, identifying specific interventions required from 1066 Enterprise. The Group would not recommend renewing the annual core contribution but instead propose establishing a programme funded on a project by project basis in support of the new RDC Regeneration Strategy.

  1. Hastings and Rother Mediation Service

This organisation provides an independent, impartial and confidential mediation service, helping to reduce conflict between neighbours, reducing the potential for violence, harassment, stress and tension. This delivers on the Council’s duties to securing safer communities and avoids the deployment of Environmental Health officers on this task, delivering considerable savings to the authority. It is recommended that the service be continued, at an annual fee of £8,400, with the added challenge of absorbing growing demand within a fixed cost.

  1. Hastings Advice and Representation Centre (HARC)

This service offers independent advice to Rother residents on welfare benefits and tax credits. The service is preventative, avoiding homelessness and job loss. Much of the case load is complex and avoids tying our own staff up in complicated and time consuming benefits work, supporting some of the most vulnerable households in the area. The case load is likely to grow in light of the significant changes to the welfare system currently under consideration by the Department of Work and Pensions. It is recommended that the service be continued at an annual fee of £15,160. It is further recommended that HARC and the CAB are encouraged to find cost efficiencies through closer working, ensuring that any duplication is ironed out.

  1. Rye Harbour Nature Reserve

This funding agreement assists the Nature Reserve in a small way to continue the very valuable work it carries out in habitat management, nature conservancy, public access and education. The organisation is much respected and carries out work of national and international significance. It is recommended that the funding be continued at an annual fee of £1,000 to signal this Council’s support.

  1. Society of Bexhill Museums (SBM)

The SBM is an organisation providing a local museum in Bexhill dedicated to inspiring local people to a greater understanding of their heritage and environment. It has undergone a renaissance in recent years, merging the costume and town museums and newly housed in purpose built galleries. The value to the Council lies in the provision of a recreational institution that contributes to the leisure and tourism offer and in turn to the regeneration of the town. The museum has experienced a considerable strain on its finances through the development work and has requested that the Council assist in meeting their substantially increased occupancy costs. It is recommended that the Museum is assisted to secure further rate relief on its non-domestic rate bill and that the annual fee be fixed at £9,000.

  1. Rother District Citizens Advice Bureau

The CAB provides a well established free, confidential, impartial and independent advice service for residents of Rother. They dealt with some 9,000 enquiries during the course of 2009/2010 and anticipate a growing workload as the recession impacts continue. The service is based primarily around debt, benefits, money and employment advice, without which the Council would have to pick up a greater caseload in benefits enquiries, housing and homelessness and the impact of unmanaged debt. The Bureau negotiates in excess of £1 million in additional welfare payments into the local economy. It is recommended that support to a core level service be continued, albeit that the previous trailblazer HOMES service and the home visiting service will need to terminate as funds come to an end. It is recommended that an annual fee of £83,600 be used to secure ongoing debt, benefits and money advice.

  1. Hastings Furniture Service (HFS)

This successful social enterprise provides low cost furniture to households in need across the district. In addition, the organisation has worked hard to increase volunteering and training provision through their role as landlord of the garage site in London Road, Bexhill. Particular attention has been given to the needs of young people not in education, employment or training. As Members may be aware, the support of this authority, including through a capital loan, was crucial in bringing HFS into Bexhill, protecting the London Road site from dereliction. It is recommended this provision be continued at an annual fee of £2,500 and that the Head of Regeneration be tasked with monitoring performance.

  1. Rother Voluntary Action (RVA)

This organisation is currently contracted to provide two discrete services to the Council. The first deals with support services to the community and voluntary sector, with advice and guidance, fundraising and development work given freely to local groups. RVA was instrumental in bringing HFS to Bexhill and is currently involved in supporting the interests of the Tilling Green community in Rye to realise their aspirations for a community centre. Other successful development partnerships include Marsham Older People’s Project, Sidley Parentscope, the Sidley BMX track, Community Parents, Beckley Playgroup, Etchingham Station Bistro and Hurst Green community shop. The organisation has been successful in raising in excess of £1 million in conjunction with local groups, a return of some 33:1 on RDC’s contribution. It also involves acting as a leader to the sector, representing its views in policy and funding debates at a variety of levels.

  1. The second agreement with RVA currently governs the provision of specialist support to communities wishing to develop and implement local action plans. This Council and Rother LSP have benefitted significantly from the development of such plans, enabling a strong interconnection between local and district level strategy and services. It is recommended that the two services are brought together into a single agreement. It is recommended that the first year fee is set at £50,000 and thereafter at £30,000 with the remaining funds being sought from local level funding via the Town and Parish Councils and Bexhill Special Expenses.
  1. Action in Rural Sussex (AiRS)

This organisation provides a service, now in its 80th year, across East and West Sussex representing the needs of rural communities and working to improve the lives of those living in our rural areas. It is recommended that an annual fee of £2,000 is attached to an agreement that procures a level of specialist rural expertise into the Council’s policy and budget setting processes. Opportunities for further joint project working with AiRS will be explored on a case by case basis.