CV One Service Review - Progress Report - Coventry City Council

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more structured and cost-effective way. Direct control will also create a greater incentive than currently exists under the present arrangements to develop the quality of the asset, both in terms of attracting customers and therefore income but also in minimising future liabilities for large scale maintenance and repairs, something that is likely to require significant capital investment over the course of the next few years. In summary, this presents a good opportunity to reduce the costs incurred by the Council in delivering the service, whilst at the same time increasing income and providing better overall value for money. A precise assessment of potential cost savings will be achieved once a full review of the financial data, staffing information and contractual commitments has been undertaken. Events There is a clear rationale to centralise an events team and develop a city wide events strategy. The Council will regain more control and management over events and alignment with corporate objectives. The opportunity of generating income is increased from concessions and sales, sponsorship and advertising packages and directly fed back into the events programme. 2011/2012 should be an opportunity to review the event strategy for the City, to carry out public consultation and create a new revitalised programme for 2012. 2011 would focus on smaller community events as well as the Godiva Festival and would generate savings on the existing events budget provided to CV One. Therefore, officers obtained approval to proceed with the review of Car Park Management & Events, with the purpose of the review to re-design the services, in order to drive efficiency and cost savings, to regain control as a Council and to protect frontline services by bringing these activities back in house. Following the review, the CV One Business Plan for 2011-2012 providing details of the service redesign and cost savings will be brought back to Cabinet for approval in March 2011. Governance Structure The governance structure is highlighted below: PROJECT BOARD Director of City Services & Development Director of Finance & Legal Services Assistant Director for City Centre & Development Services Finance Manager (City Services & Development) Leader (Coventry City Council) Cabinet Member (City Development) PROJECT LEAD CV One Client Manager PROJECT TEAM CAR PARK MANAGEMENT PROJECT TEAM EVENTS 2
Internally, governance is being managed by a dedicated multidisciplinary project team, with members from the Special Projects Finance Team, Finance, Legal, HR and City Centre & Development Services for Client Management support. Financial Implications The detailed financial work has now been undertaken to provide a view on the cost of delivering car park management and events. In addition, a full analysis of the overheads has been completed which will be combined to provide a comprehensive baseline of the grant reduction expected from the £4.8m net contract value to CV One. In light of the financial information that was provided during the detailed discussions since in November, and also that provided on 17 December 2010 (namely establishment costs and apportionments associated with the services to be brought back in house), it is believed that there are still a number of financial issues to be to be reconciled. As such, the Council has reserved the right to review the grant reduction figure. Further discussion between CV One and Coventry City Council will take place during January 2011 to finalise and substantiate the grant reduction figure. A detailed exercise is underway, in parallel, to determine how the Council would provide car park management and events services in house. The in house option will be costed and compared with the costs under the CV One contract to identify savings. The level of potential savings identified will form the basis of the Council's final decision to issue a notice to modify the existing CV One contract. This will be determined by formal Member approval to execute the changes in March 2011. With services to then be brought back in house from 1 April 2011. Legal Implications The CV One contract runs until 31 st March 2012 as approved by Members on the 31 st July 2007. The contract terms enable a review of services to be undertaken and service review modifications to take place as outlined in the report. HR Implications TUPE regulations will apply as it affects any employees who are wholly or substantially engaged on services being delivered as part of the City Council Contract. A full HR review has been conducted and an initial position on the staff transfers has been provided by CV One as well as a full percentage split of time allocated to the individual service areas. Further discussions will now take place to challenge and agree the final list. In order to continue the delivery of events and progress the Godiva Festival for 2011, it has been agreed that the three specific events staff from CV One will be client managed by Coventry City Council and based with the Communications & Events team. This will take effect from the 17 January 2011. Notification: Formal notification was provided to CV One on the 23 December 2010, which stipulated the grant reduction but also asked for specific requests to be actioned as part of the review. This included: 3
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CV One Service Review - Progress Report - Coventry City Council

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