Issue - meetings

Report by the Chief Operating Officer

10.1     The Chief Operating Officer introduced the report and presentation which set out the background and aims of the Orbis partnership, with the impacts and implications of Brighton & Hove City Council (BHCC) joining as the third and final Founding Partner.  He reiterated that Orbis is a branding identity, providing a single service to three sovereign partners, each of which contribute and benefit in pre-determined shares, the formula determined by the Inter Authority Agreement. 

10.2     In response to a question regarding the formula, the Chief Operating Officer confirmed that BHCC joining the Partnership had had a material effect, and would change the ratio of contributions and benefits.  The Chief Internal Auditor confirmed that his service had provided substantial assurance on the arrangements. 

10.3     The Committee discussed the optimum size of the Partnership.  The Chief Operating Officer highlighted that should any other authorities wish to join there would have to be a review of the governance structure underpinning the partnership.  There has been an expansion of the customers using Orbis, and the benefits are returned to the Founding Partners as reduced contributions, according to the formula. 

10.4     The Committee RESOLVED to (1) note the report; and

(2) agree to receive a report at the November 2017 meeting regarding the developing Orbis Business Plan.

To provide an update to the Orbis Joint Committee on the development and integration of Brighton and Hove City Council (BHCC) into the Orbis Partnership.

Declarations of interest:

None

Witnesses:

David Kuenssberg, Director of Finance & Resources, Brighton & Hove City Council

Key points raised during the discussion:

1.           Officers introduced the report and informed Members that progress was continuing to be made on Brighton and Hove City Council joining the Orbis Partnership. Members noted that work was ongoing to understand how different services could be aligned and advised that thus far services had proved to be working well together. Officers concluded by expressing their confidence in the integration process although it was highlighted that work was ongoing to ensure that BHCC would be integrated into the partnership effectively.

2.           Members discussed the financial benefits and learning opportunities that came with working with other services within the partnership and stressed these would benefit the partnership as a whole.

Actions/ further information to be provided:

None.

RESOLVED: That:

the Orbis Joint Committee notes the progress being made towards BHCC joining the Orbis Partnership.

To provide an update to the Joint Committee on the development and integration of Brighton & Hove City Council (BHCC) into the Orbis Partnership.

Councillor Hamilton introduced the Orbis BHCC Update report, which also contains the report which went to the BHCC Policy, Resources and Growth Committee on 13 October 2016.

Key points raised during the discussion:

1.           Councillor Hamilton reported to the Committee that the recommendations of the BHCC Policy, Resources and Growth Committee report to join the Orbis Partnership had been agreed. There is cross party support for this proposal and the unions are also supportive. BHCC are in position to proceed with the proposal to join the Orbis Partnership. ESCC and SCC can now commence their due diligence process.

2.           The Director of Finance and Resources (BHCC) commented that the due diligence process has been a very useful process, which has built up trust and understanding of the Partnership within BHCC. The trade unions are supportive of the proposal as it is positive for staff and offers opportunities for them.

3.           The Committee noted that work has started on service integration plans and that services will be integrating at different times. It is likely that service integration will commence in 2016/17 and budget integration will take place from 2018/19. 

4.           The Director of Finance and Resources (BHCC) commented that the BHCC plans for efficiency broadly align with those of the other partners. For example, all three authorities want to update their Human Resources (HR) and Finance computer systems. BHCC also brings a Revenue and Benefits service into partnership, which will be an asset in attracting work from other authorities.

5.           The Committee advised that as part of due diligence process, the compatibility and cleanliness of data and systems should be checked before integration and the migration of data. This is an important lesson learnt from previous experience of ESCC and SCC integration.

6.           The decision to admit BHCC into the Orbis Partnership will be a decision for the respective Cabinets. It has yet to be decided when it would be the best time to do this is. The Committee discussed whether the respective Cabinets would accept a decision in principle, prior to completing the due diligence process. The Committee agreed that having clarity on the proposals and undertaking the due diligence process properly, were important. The Committee suggested that a decision in principle approach should be explored for the ESCC and SCC Cabinet decision to admit BHCC into the Partnership.

Actions/ further information to be provided:

None.

Resolved:

The Orbis Joint Committee noted the report presented to the Brighton and Hove City Council’s Policy, Resources and Growth Committee on the 13 October 2016.

To provide an update to the Joint Committee on the development and integration of Brighton & Hove City Council (BHCC) into the Orbis Partnership.

Declarations of interests:

None

Witnesses:

Graham Liddell, Head of Internal Audit, Brighton and Hove City Council

Kevin Foster, Chief Operating Officer, East Sussex County Council

John Stebbings, Chief Property Officer, Surrey County Council

Key points raised during the discussion:

1.   An introduction to the report was provided by the Head of Internal Audit at BHCC who advised Members that due diligence in respect of joining the Orbis Partnership was still being undertaken by BHCC. Attention was drawn to the four key areas of focus that are being used to define the due diligence as outlined in the report. More consideration would need to be given to the areas which had been identified but it was stressed that it was necessary to draw the due diligence process to a conclusion so that Policy, Resources and Growth Committee can confirm the decision to join the Partnership, subject to this due diligence,  and in what capacity. The Head of Internal Audit stated that BHCC was required to make 30% savings within its budget by 2020 and that further consideration was required on how membership of the Orbis Partnership could contribute sufficiently to BHCC achieving these savings.

2.   Members inquired about the length of time that it had taken BHCC to conduct due diligence on the Orbis Partnership and why it had taken longer than anticipated. The Head of Internal Audit advised the Committee that undertaking a thorough and effective due diligence process was difficult and time-consuming even for those services at BHCC where integrating with the Partnership was expected to be relatively straightforward.

3.   The Committee stated that the report read as being more cautious around the outcomes of due diligence than previous updates and asked if other options for rationalising back office functions were under consideration. Members were informed that other options had previously been reviewed but that, as of December 2015, joining Orbis was the only one that had been given any serious consideration. The Chief Operating Officer stressed that the interests of all parties involved the partnership was paramount and that it was important to ensure, through due diligence, that BHCC would benefit and achieve considerable savings through its involvement in the partnership.

Actions/ further information to be provided:

None

RESOLVED:

The Orbis Joint Committee:

i.          noted the progress being made by BHCC towards completing due diligence on joining the Orbis Partnership; and

ii.         noted the current intention to make a recommendation to the Brighton and Hove City Council Policy, Resources & Growth Committee in October 2016.