Review of Facilities Management West Sussex County Council. December 2012

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1 West Sussex County Council December 2012

2 Acknowledgements and Author s Note Any mistakes which appear in this report are to be regretted and are due to errors and omissions on behalf of the author and in no way can be attributed to those interviewed. The analysis and views expressed are the views of the author only and based on a limited period of study between September and November It is hoped that the report will provide a stimulus to West Sussex County Council to develop further their approach and capacity in Facilities Management.

3 Contents Executive Summary 1 1 Introduction Purpose of Document Format & Content of Report Review Scope & Methodology 3 2 Overall Context WSCC Strategic Policies and Objectives Resource Context 4 3 Summary of Current Situation Overall Purpose of FM FM Delivery Model Organisation, Establishment & Operating Costs Problems & Pressures Audit of FM Function The Audit Process Overall Findings Strengths & Weaknesses Detailed Audit Comparative Analysis Outline of Approach Profile of Comparator Organisations Looking Forward - Options for The Future Immediate Short-Term Priorities Articulating Options for the Medium-Term Summary Evaluation of Options 29 Appendices A FM Team Structure Chart 32 B Profiles of Comparator Organisations 33

4 Executive Summary NPS Property Consultants Ltd (NPS) were asked to undertake a review of West Sussex County Council (WSCC) facilities management (FM) function with some limited comparative analysis and to identify broad options for the future development of the service. The study was undertaken between September and November The review of the FM Team was undertaken as an audit at an individual activity level drawing together available data on volumes, costs and funding sources. The FM Team has an establishment of over 90 staff with an annual revenue cost of 2.48M for the year 2012/13. It undertakes the broad range of FM activities; including both hard and soft FM with a delivery model which can be described as a mixed economy with a strong internal client capacity and use of external contracts where these represent value for money. WSCC has recently implemented a corporate landlord model and there is centralisation of all buildings related expenditure managed through the FM Team. The capacity and experience of the FM Team is commensurate with its role and most activities are operating well; with perhaps only a few areas of risk FM information and catering both of which are recognised and where work is in hand to secure improvement. There may be a lack of resilience as individual teams within the FM function are working at full capacity and any extended absences could cause problems. The FM Team has a strong senior management leadership across all its activities; the area-based delivery model and close liaison with building users is effective and the service is generally well regarded. In the immediate short-term there is a requirement to consolidate existing arrangements and to ensure all aspects of the FM function are working effectively. In the longer term there are a broader range of options. The choice of these is dependant on WSCC s attitude to three key questions the size of the retained FM capacity; the extent and nature of externalisation and the willingness to work with other partner organisations in the public sector. The response to these questions is as much a philosophical as an efficiency one and will shape the broad direction in which to develop the FM service. 1

5 1.0 Introduction 1.1 Purpose of Document This report has been prepared by NPS Property Consultants Ltd (NPS) on behalf of West Sussex County Council (WSCC). It is intended to provide a response to an agreed brief to provide a review of the council s Facilities Management (FM) Team in the Service Operations Directorate looking forward from January This report deals specifically with the overall skills and capacity required to underpin facilities management and is presented as an organisational audit. The report is designed to:- Give a definitive current statement of the activities of the FM Team Provide an external perspective of its capacity and expertise Provide some initial comparative analysis Give a narrative commentary of its Value for Money (VFM) Inform consideration of future options for the service 1.2 Format and Content of Report The report is arranged in 6 sections with appendices containing supporting material: This section explains the purpose and scope of the review and outlines the overall methodology. Section 2 provides some broad overall context in which to position the review Section 3 describes existing arrangements for FM within WSCC and positions the activities undertaken by the FM Team in a generalised framework for FM. Section 4 gives an overall health check of the FM Team identifying strengths and weaknesses and gives an audit summary for each individual activity through a brief narrative commentary and an assessment using a Red-Amber- Green notation to identify potential areas of risk. Section 5 provides some data to enable WSCC to compare itself with other organisations with varying delivery models for FM. This is essentially qualitative data which describes how activities are organised and undertaken in a mix of other councils, chosen to illustrate the richness in delivery approaches. 2

6 Section 6 outlines some broad options for future development of the FM service and gives some specific recommendations for improvement. 1.3 Review Scope and Methodology The review has been undertaken as six discrete sequential stages over an elapsed time of 10 weeks as shown in the diagram below. Diagram 1 Overall Review Methodology Stages 1 to 4 focussed internally on the FM Team at WSCC to provide a position statement on the FM service; whereas stages 5 to 6 looked externally in order to provide a limited comparative perspective to the review. 2.0 Overall Context 2.1 WSCC Strategic Policies & Objectives The council is undergoing a period of change and re-organisation. A large scale outsourcing of support service staff to Capita under a 10 year contract was undertaken in mid 2012 and as continuation of the council s shift from a provider to a commissioner of services. The philosophy underpinning this change is a customer first focus and ensuring scarce resources are allocated in the best way to meet residents needs. The current reorganisation, effective from 1 st Jan 2013 implements a tri-part model based on policy - commissioning - delivery. The reorganisation is intended to ensure VFM and takes a pragmatic view on the sourcing of activities From January 2013 there will be 9 directorates, with FM in the Service Operations Directorate. 3

7 2.2 Resource Context The outlook for public finances in the medium term suggest that funding for local government in real terms will continue to shrink meaning there will be pressure to do more for less and differently. WSCC is facing significant budget pressures; an efficiency savings target of 79M set for a 3 year medium term ending in April 2014 has been renewed with a new target to be set for the period beyond 2013/14. Whilst there has been no specific efficiency target set for FM there is an expectation it will contribute to savings and emphasis needs to be placed on ensuring VFM. There is a need within the FM Team to be aware of, and seek to reduce costs 3.0 Summary of Current Situation 3.1 Overall Purpose of FM There is no simple, single definition of the role of FM as it varies across organisations according to their specific needs and culture. At WSCC the FM Team have adopted an essentially pragmatic working definition which can be summarised as ensuring a working environment in its buildings portfolio which enables the council (and its partners) to deliver effective and responsive services. This can be amplified further in terms of a hierarchy of priorities to:- Ensure statutory compliance Ensure buildings are clean, safe & secure Promote a welcoming & comfortable space for staff, clients & visitors Promote a positive image of the council through the interaction of people with the council s buildings The FM Team place a specific priority in their work for services with vulnerable clients; both adults and children, as in these service areas the interaction of people with the physical space and associated services is important. As FM is an integrative discipline involving many disparate activities there is no simple measure of performance. The FM Team view the critical success factors for their service as:- 4

8 Minimising risks to WSCC from breaches of statutory compliance as these are a potential liability to the council both in terms of cost and reputation Providing a comfortable environment for staff, clients and users measured both formally and informally through building user feedback. 3.2 Delivery Model for FM The current service delivery model for FM could be described as a mixed economy with a strong informed client role with use of external contracts where these represent value for money. The emphasis of the FM Team is on policy, specification, management and monitoring; but with light touch monitoring supplemented by building users feedback on service quality and incipient issues. An area based approach has been adopted with 5 areas. In each area a comprehensive, integrated service is provided through a dedicated Lead Building Surveyor, Engineer & Facilities Manager. These roles are pivotal in the service providing the expertise and capacity across the broad range of FM activities and strong on-the-ground customer focus through to building users to understand service needs, quality, and responsiveness and to help to identify any emerging issues. The area teams make use of the council s office hubs in the respective areas as well as working flexibility. The Area Facilities Managers (AFMs) undertake a multiplicity of roles and there is also an intention for them to act in a capacity to resolve problems and undertake small, immediate work jobs as appropriate. The council has adopted a Corporate Landlord Model with centralised budgets for premises related expenditure managed through the FM Team. There are plans for a nominated building contact for each building which is due to be implemented prior to March The FM service applies generally to all council buildings but in some specific instances there are differing arrangements for schools because of their degree of autonomy. The Fire Service retains a small FM capacity and some of their building management arrangements are not within the scope of the WSCC FM Team. 5

9 The broad direction of travel for the FM service is to seek to reduce the number of contracts and to move towards fewer corporate contracts with common standards for major areas of activities which schools can op-in to. Positioning of FM in Wider Organisational Structure The FM Team is located in the Service Operations Directorate which from January 2013 will be one of 9 directorates within the council. The FM team has strong working linkages with the Capital and Infrastructure Team which is located within a separate directorate. The FM Team report to the Member for Finance and Performance and also from time to time to the council s senior management team; as subject matters dictate. The Team also reports through to the Capital Investment Appraisal Group which is responsible for allocating scarce capital resources to major projects. Diagram 2 Positing of FM Team within WSCC Structure Profile and Understanding of FM The recent re-organisation within the council is providing a greater focus to FM activities as a single, integrative support discipline. Whilst FM is recognised as a support activity through its positioning in the Directorate of Service Operations, the strategic dimension of FM is also being increasingly recognised. Although the purpose and benefits of strategic FM are not yet widely understood across the organisation this is changing and its profile within the council is rising. There is interest in FM by specific members (such as the Member for Finance & Performance) 6

10 as well as members in general and the work of the FM Team underpins some of the council s key priorities such as carbon reduction. Scope of FM There is no single definition of FM and no specific model of its scope and activities. Organisations typically tend to organise and undertake FM activities on the basis of historic ways of doing things, organisational culture and pragmatic experience of what works well. A simplified model of the potential scope of premises related FM activities is shown below and used as a framework to identify what WSCC currently undertakes through its FM function. Whilst FM does tend to have a primarily operational focus there is also an important strategic element to it as FM needs to be consistent to, and supportive of, wider organisational objectives. Diagram 3 Scope of Activities under taken by FM Team Strategic Operational FM Strategy & Support HARD FM SOFT FM ADDITIONAL FM Member & Senior Officer Liaison Condition Surveys Cleaning Space Planning Policy Development Building Maintenance Security Move Management Performance Management M & E Services Waste Disposal & Recycling Meeting Room Services FM Information Statutory Compliance Reception Post Services FM Help Desk Project Management Caretaking Office Furniture PA & Admin Support Carbon Management Utilities Management Porters Minor Improvements Catering Courier services Property Review Health & safety Events Suitability Assessments Grounds Maintenance Training Scope of FM Activities Activities undertake by WSCC FM Team Other potential FM activities 3.3 Organisation, Establishment & Operating Costs The FM Team has a total establishment of 90 posts plus 4 apprentices with a total revenue cost of 2.48M for 2012/13. A simple summary structure chart of the Team is provided as Appendix A. Within the FM Team the age and sex profile shows a team which is broadly well balanced and with an age profile which is relatively 7

11 experienced. With recent organisational changes the average age of the FM Team has reduced significantly. Table 1 below provides a summary age and sex profile of some of the main functions within the FM Team. Indicative annual spend, based on 2001/12 outturn was 2.38M for maintenance spend (revenue); 4.8M for maintenance spend (capital) reducing to 2.6M for 2013/14 and 2.7M spend on soft FM. Table 1 - Profile of organisation (age sex mix) Function Average Age Males Females Building Surveying Carbon Engineering Soft FM Grounds Maintenance Caretaking (schools) Engineering Apprentices Catering 1 7 Note: The above table does not account for all staff but is used to illustrate the age and sex profile of the FM Team The FM Team has implemented apprenticeships as part of a grow our own approach to staff. The scheme covers M & E surveyors (2) and soft FM (3). The apprenticeships are essentially day-release courses over 3 years alongside on-job training. Apprentices are assessed on an on-going basis and prior to their final year to see if they are to be offered a career post within WSCC. On the soft FM side the apprenticeships are essentially on-the job training. So far the scheme has been successful in bringing through staff capable of working in a full-time capacity and has also help to create an improved working environment. 3.4 Problems & Pressures The FM Team has a number of problems and pressures to which it needs to respond. These related problems are generally well known and understood, with actions in hand to address them: 8

12 Implementing the Corporate Landlord Model There is a legacy of work associated with the centralisation of property budgets. As full property costs were not transferred across to the FM Team current budgets do not match activity levels. This issue is being teased-out on a building by building basis but this painstaking work can be detrimental on relationships with building users and service managers. It also has an impact in the short term on spend on buildings which has to be restricted with a consequential detrimental effect on buildings, service image and council image. Relationship continuity WSCC has gone, and continues to go through, a period of significant organisational change. This inevitably causes disruption to established internal working relationships and lines of communication. Whilst the FM Team has shown a strong degree of flexibility in adapting to this change this issue of establishing and sustaining effective working relationships is a key priority looking forward. The FM Team has recently undertaken a stakeholder analysis in order to identify existing strengths and weaknesses in internal relationships and this provides a basis for identifying priorities for action. Business Continuity organisational change can also have a detrimental effect on business continuity. This can be seen in several areas. This includes sustaining staff morale and motivation in a period of uncertainty over jobs and how the FM service might be provided in the future. This is also disruptive to planning for the future (due to uncertainty) and can undermine the consistency of messages about the service and there is also a risk of paralysis from a feeling of a lack of influence over wider organisational changes. Quality of FM data There are concerns over the quality (currency, accuracy & completeness) of data as this may impact on the quality of decision making. There is a strong drive to implement Atrium as the council s corporate property database and recognition that there is a need to improve FM information so that the FM Team can fulfil its role properly. 9

13 4.0 Audit of FM Function 4.1 The Audit Process The audit was based on a high level analysis which tried to answer four questions:- What activities are the FM Team responsible for; how are these organised and delivered? What is the level of capacity (FTEs) and skills for each of these activities and are there any issues related to this? What are the broad dimensions associated with each activity (volumes and spend)? What are the costs 1 of each activity and how is each activity funded? The organisational audit is reported in a simple colour coded way (green through amber to red) for the main activities within the scope of the FM function. The analysis is presented in a form which is easy to use and understand. From the analysis two further questions can be posed:- What are the areas of risk in terms of the existing arrangements? Are there alternative arrangements which could be put in place to improve any of the activities; either individually or collectively? A degree of caution needs to be taken in reviewing the audit as time did not permit anything more than a high level audit. 1 The basis for the financial figures used through this report is as follows. The cost of staff (FTEs) is based on the organisational structure looking forward based on budget allocations for 2012/13. Staff costs are actual costs plus a 15% to account for on-costs (office space, supplies & services etc.). For posts being covered by external consultants the costs of the funded post has been used rather than the costs of the engaged consultant. The costs for activities undertaken (other than staff costs) are based on actual spend during 2011/12. In both cases there is a level of estimation used and so some care needs to be taken in interpreting the data. The overall approach through the analysis has to be provided the best estimation of costs based on available data. 10

14 4.2 Overall Findings The capacity and experience of the FM Team seems commensurate with the size of the WSCC portfolio and the scope of its responsibilities. There may however, be a lack of overall resilience with some recognition that as individual teams are working at full capacity any extended absences (such as periods of sickness) may cause problems. There is a strong emphasis on day to day operational matters; in developing relationships with building users and service managers and in ensuring arrangements around the Corporate Landlord Model are working effectively. This short term operational focus may be being undertaken at the expense of the more strategic considerations of FM. The all round capacity and experience of the FM Team does mask some bind spots in capacity; but these are felt to be relatively minor. 4.3 Key Strengths & Weaknesses A number of key strengths and weaknesses have been identified through the review and these are summarised briefly below. The areas of weakness are recognised within the FM team and in some cases work is in hand or planned to resolve them. Strengths The overall capacity and expertise of the FM team seems consistent with its responsibilities with relatively few areas of risk. The age profile of the group is well balanced with no incipient risks from an aging workforce. There is experienced leadership of the FM function through the Principal Facilities Manager and the 4 senior team leaders. The apprenticeship scheme has allowed the council to grow its own in response to an historical problem of finding suitably qualified and experienced staff. Although still in its relative infancy the scheme has proved successful. The FM Team has strong working relationships with service managers and building users through its area structure. This approach has allowed building surveyors and Area Facilities Managers to develop a good understanding of the individual buildings they are responsible for. 11

15 Weaknesses The fragmented nature of contracts may mean that economies of scale are not being achieved and that contract management is more complex than it need otherwise be. There are some potential discrepancies around the organisational placement of some (parts of) FM activities (such as responsibility for condition surveys) which may give rise to a disjointed elements of service. In large measures these appear to be historical legacy issues and the FM Team work with the existing arrangements in a pragmatic way. As a legacy of organisational re-structures in WSCC and the implementation of the Corporate Landlord Model there is currently a mismatch between funding and required activity levels. This is being resolved on a building by building basis. The quality of data to underpin decision making on FM matters may be lacking for some activities this is an area of concern but there is also a recognition that perfect information is difficult to achieve. Whilst there has been an intention to consolidate data onto Atrium as the WSCC s preferred corporate property system progress on this has stalled and this remains an important priority to resolve. There is a disconnect between the property review process undertaken by the Capital & Infrastructure Team which identifies whether buildings should be retained or released by the council and activities undertaken by the FM Team. This may mean that there is risk of maintenance or improvement spend being misdirected on buildings likely to be no longer required by the council. 12

16 Diagram 3 - Overall Audit Assessment of FM Function Strategic Operational FM Strategy & Support Activity FTEs Cost ( ooos) Audit Activity HARD FM FTEs Cost ( ooos) Audit Activity SOFT FM FTEs Cost ( ooos) Audit Activity ADDITIONAL FM FTEs Cost ( ooos) Audit Member & Officer Liaison Condition Surveys Cleaning Space Planning Policy Development Building Maintenance Security Move Management Performance Management M & E Services Waste Disposal & Recycling Meeting Room Services N/A N/A N/A FM Information Statutory Compliance Reception N/A N/A N/A Post Services N/A N/A N/A FM Help Desk Project Management Caretaking Office Furniture PA & Admin. Support Carbon Management Utilities Management N/A N/A N/A Porters Minor Improvements Catering* Courier Services N/A N/A N/A Property Review N/A N/A N/A Health & Safety Events Suitability Assessments Grounds Maintenance Training * This is corporate catering only. 6.5 staff are involved in management & 45 staff with delivery (as supervisors & kitchen assistants) for schools catering which is recharged back to schools Activities undertake by WSCC FM Team Other potential FM activities Total FTEs Total Cost ( 000s)

17 4.4 Detailed Audit FM Strategy & Support Activity Audit Member & Senior Officer Liaison The work of the FM Team is reported through to the Member for Finance & Performance and variously to Chief Officer Groups depending on the specific subject matter in hand. The team also reports through to the Capital Investment Appraisal Group. The nature of the work is essentially meeting attendance and report writing. Policy Development The FM Team takes a lead on several aspects of policy development relating to the WSCC portfolio. These include developing overall maintenance strategy, carbon reduction policy and development of the council s Asset Management Plan (AMP). The FM Team also contributes (from an FM perspective) to corporate initiatives and policy development. Most of this work is undertaken by the Head of the FM Team supported as appropriate by the relevant senior professional managers. This policy work requires liaison with managers across the council. The AMP is refreshed annually and signed-off by members. It is not entirely clear what the respective responsibilities are between the Capital & Assets and FM Team are in relation to the AMP and whether the FM lead means that the AMP has a predominantly maintenance focus. Performance Management The FM Team has an annual service plan which sets out priorities and targets and these are monitored through the year and through staff individual performance reviews. The FM Team has some responsibility for corporate targets such as the WSCC carbon footprint reduction target. They key performance metric that the FM Team focuses on is service continuity and quality as measured through client complaints. The FM Team adopts a pragmatic and informal approach to this through outreach to building users from activity leads and the Area Facilities Managers. There maybe scope for a more systematic approach to performance management using a range of techniques (periodic structured peer reviews; regular client surveys and use of benchmarking clubs such as the Sheffield Hallam Public Sector FM Network) although it is recognised that there is balance between costs and reward from such activities. There is an intention to undertake comparisons with private sector organisations. FM Information There is no specific focus on information; rather it is perceived as part of everyone s job according to their individual activity needs. There is no specific FM database but the FM Team tend to use the corporate property database (Atrium) which is owned and maintained by the Business 14

18 Information Team. Where appropriate FM data will be migrated to; and held on Atrium. There are some concerns over data quality (currency, completeness & accuracy) although it is also recognised that perfect data is both time consuming and expensive to achieve. There is a risk of less than optimum decision making because of this poor quality data. A specific concern is the up-dating of floor-plans (undertaken in the Capital & Assets Team) as this impinges directly on defining cleaning areas. There maybe some value in having a clear road map of data needs for FM and in ensuring robust links with the corporate property database administrator to ensure FM data needs are understood. FM Help Desk There is no internal help desk for FM. During working hours building users are encouraged to call their area based FM staff; whilst outside of office hours they call SSE (Scottish & Southern Electric) who handle emergency maintenance, M & E, or security problems. SSE will assess calls and provide a short term response pending resolution of any problems. The SSE help desk is provided through 2 FTEs at a cost of 50k. The contract with SSE is part of a long term contract, initially established in 2008 and which has recently been extended for an additional year taking it until It covers corporate properties and those schools who opt-in to the service through an SLA. The likelihood after 2014 is that the contract will be retained for corporate buildings but SSE will deal directly with schools. For out of hours emergencies the number and nature of calls are captured through SSE s own systems; whereas for normal working hours there is no formal recording of calls rather there is a once & done approach. There are plans to systematically capture normal office hour calls through the Help Desk module of Atrium once it is implemented. Overall the service is highly regarded and responsive. There maybe potential to integrate the FM Help Desk with a wider corporate help desk service but this is not seen as either a preferred or necessarily effective solution (as it may dilute the existing service which works well). PA & Admin. Support Dedicated PA, clerical and administrative support has been considerably diminished due to re-organisations and subsequent out-sourcing of office services. However the FM Team has adopted a self-help attitude and this has meant there are no significant capacity issues around PA and administrative support. There is also PA & Admin support provided through Capita under a long term contract between WSCC & Capita. The FTEs and cost estimates for this part of the activity are not included in the summary cost totals. 15

19 Hard FM Activity Audit Condition Surveys Condition surveys are outsourced and undertaken through multiple area based contracts. The contracts include both schools and non-schools and full surveys both building fabric and M & E equipment. The whole portfolio is reviewed over a 5 year period (approximately 20% of portfolio per annum). The condition surveys are overseen by the Business Information Team in Capital & Infrastructure Assets Directorate; with data being held in the council s corporate property database which can be accessed by the FM Team. The positioning of the overview of this activity with the Business Information Team is an organisational quirk and it should more appropriately sit with the FM Team where the building surveying expertise resides. It may be relevant to review the basis of the service and to see whether a single contract or a change to a full portfolio service every 4 or 5 years may be better value for money. However the service is likely to remain as an externally provided activity. Building Maintenance The building maintenance activity (both planned and reactive) is lead by the Building Surveyor and area teams supporting both the schools and non-schools portfolio. For the non-schools team there is one building surveyor for each of the 5 FM areas; whereas for the schools portfolio there is one surveyor for each of the 6 school areas. The Schools Team is funded by SLA income whilst the Non-schools Team is funded through base budget. The teams develop and deliver the annual building programme in liaison with service departments and building users. The teams are also responsible for managing reactive maintenance work. The current organisation and delivery model has only been recently established and there are no plans to change. The service works well in part due to the experience and capacity of the team members, their inherited knowledge of the buildings and good working relationships with building users. In addition the area based model provides a greater variety of work for the surveyors. M & E Services There is an M & E contract with SSE (Scottish and Southern Electricity) which covers inspection, testing and reactive services. The FM Teams also has area-based engineers looking after both schools and non-schools. In the past WSCC has struggled to get building services engineers and has now adopted the approach of growing our own through an apprenticeship scheme. Whilst the existing FM Team M & E staff are busy broadly the balance between capacity and work-load is about right plus there is the option to use agency staff to handle peaks in work (although past experience of using agency staff has not been good). The activity is part base funded and part funded through the Schools SLA. 16

20 Statutory Compliance This activity over-arches both Hard and Soft FM and is a key priority for the FM Team. There is no specific organisational focus for the activity through a defined team / post; rather it is an activity undertaken by the area based surveyors, engineers and facilities managers as part of their mix of responsibilities. There is a compliance checklist which identifies specific requirements and frequencies for individual buildings. Data will eventually be held in the Atrium database which will be used through alerts to prompt for required actions. Overall there are no issues around capacity of expertise and the activity works well in practice. Project Management This activity covers mostly capital maintenance projects including some schools projects. Generally they are small projects and programmes of work which tend to be less than 300k (larger projects sit with the Capital & Infrastructure Team). The activity is funded through base budget; except for schools projects which are typically charged on a fixed fee or hourly charge basis. The project management role is carried out by the area based by surveyors & engineers. Generally there are no capacity issues but if there is then external consultants are used. There is no formal requirement to use a specific project management methodology. There is a possibility that under the wider reorganisation of the council this activity could end up as a commissioned activity. Carbon Management This team has two dedicated posts (one is currently vacant) covering specific areas of expertise (notably energy and water). The team is supported by the area based building surveyors and M & E Engineers. They cover the broad mix of work for energy and water management. The team are responsible for policy development, raising awareness, training and for developing and implementing programmes of work (such as renewable energy). The team provided a dedicated focus for the activity which is a key priority for the council. Overall capacity and balance is about right. Display Energy Certificates (DECs) are done through the Business Information Team and there may be an argument that this element of work should be more appropriately placed with the Carbon Team. Minor Improvements Minor improvements works are managed by the area building surveyors and M & E Engineers as part of their broad mix of responsibilities. The Area Teams liaise with services to determine priorities and establish the programme of works. Typically these projects are small to medium sized in terms of value but for the 2012/13 there is no specific budget provision. Property Review This element of activity sits with the Estates Team within Capital and Infrastructure. The Estates Team lead the review activity and the FM Team N/A 17

21 provide support as required. It is not entirely clear how robust the process is and to what extent it challenges the need for and performance of assets. There may be a need to improve coordination with the FM Team in part to act as an early warning mechanism for possible release of buildings (for which FM are responsible) and in part to secure FM perspectives on issues such as energy performance, running cost performance, condition and functional suitability of buildings. Suitability Assessment The FM Team undertake suitability assessments of the non-schools estate on a 5 year rolling programme (20% of portfolio per annum). This is undertaken as one element of the building surveyors role using a WSCC developed methodology and pro-forma. The philosophical approach is to do the assessments with services rather than to services. The assessments cover a broad range of themes (environment / accessibility / performance / sustainability etc.) and the information is used to inform development of the capital programme & investment prioritisation. The assessments are currently held on spreadsheets but there is an intention to hold them on the new corporate property database (Atrium) in due course. The activity is base funded. There is a lack of clarity over the wider linkage to property review and a potential deficiency in that the assessments do not provide a robust challenge to property need, utilisation or performance and that they are not used to inform retain or release decisions on the portfolio. There is a different approach to schools suitability assessments which not undertaken by the FM Team. Soft FM Activity Audit Cleaning The FM team undertake the client management activity for cleaning services (specification, letting & monitoring) which are delivered through 2 contracts (for schools and non-schools) each having differing renewal dates, contract lengths, cleaning frequencies and standards. The intention is to have a single, coordinated, approach which streamlines the existing fragmented, legacy arrangements the FM team has inherited. The FM Team undertakes light touch monitoring to supplement building user feedback on quality issues. The non-schools cleaning is centrally funded through base budget whereas in the case of schools there is a part recharge mechanism. There may be a time lag issue between changes in the portfolio (down-sizing) and how these impacts on the cleaning contract and potential for reduced payments. There may be the scope to improve linkage with capital projects to understand how floor finishes could impact on cleaning frequencies and costs. 18

22 Security The 5 hub office buildings have caretakers responsible for opening and closing and general security of the building. Elsewhere in the corporate estate local building users (through local arrangements and nominated staff) are responsible for locking and un-locking on a daily basis with an emergency security call out service provided through a single contractor. Schools have their own individual arrangements according to their needs outside of any corporate arrangements. In practice these arrangements work well and are cost effective. Waste Disposal & Recycling The waste disposal activity undertaken by the FM Team is essentially at a budget management level. Services departments raise their own orders for specific waste services against a budget held by the FM Team. Services are responsible for the waste activity procured and the FM Team for the associated budget issues. There are no specific capacity issues around this element of this work. Reception Reception in main office buildings is not managed from within the FM Team but by Office Services which is a separate team. There is no strong rationale for this to be considered within the scope of FM. N/A Caretaking FM has a caretaking team comprising a manager + 3 staff who look after schools (support the schools in terms of cleaning & other contract issues). These have recently been incorporated into the FM Team and their traditional focuses on school could be broadened to non-schools. They are based centrally but have a county-wide remit. Currently the cost of the service is re-charged back to schools. School based caretakers are provided by individual schools with the FM Team providing a support role. Facilities Officers and FM Operatives are the first point of contact for services / building users each having responsibility for about 10 buildings. There are no capacity or expertise issues, a mix in terms of age profile and adequate service resilience. As all the WSCC buildings come under FM control and the service more fully established there may be scope to extend the service. Utilities Management This activity covering the whole portfolio and all utilities (water, electricity and gas) is currently carried out by the Business Information Team within Capital and Infrastructure Directorate. The activity is seen largely as a data issue collecting reading data and paying bills; although the FM Team provide the scrutiny role to monitor utility usage. There is an argument that the activity sits more logically with the FM Team because of its scrutiny role and responsibility for overall energy policy and practice. The current arrangements mean that the focus and management of full property running costs does not sit entirely within FM and this is N/A 19

23 inconsistent with the corporate landlord model that council is seeking to operate. Catering The FM Team provides catering services at 3 of the WSCC hub buildings through part in-house and part contracted out arrangements. In County Hall catering is provided through an in-house service; at Durban House in Bognor Regis the service is provided by the Aldingbourne Trust (for people with learning difficulties) on a semi-contract basis and at the northern hub (Horsham) through a catering contract. There are no catering facilities at Crawley or Worthing. There is strong member view on retaining these facilities which are highly regarded. This corporate catering element is required to be cost neutral with the service netting off from charges. The non-offices catering service covers school; run a meals on wheels service alongside the WRVS & employ catering staff in special schools. They also undertake training. The funding base of this element of the catering activity lacks clarity some work is unfunded; there are differing funding arrangements for different contractors and overall the service is part funding through the schools SLA and part re-charge. There is potential to unify these disparate approaches to ensure overall cost recovery. There is some limited catering for outside functions (such as weddings) on a cost recovery basis and there maybe a longer term prospect to generate income as the team has some commercial acumen. There maybe potential to consider external catering provision in key offices using a profit-share franchise model with a private sector partner. Health & safety The FM Team have a responsibility for H & S for buildings related matters. This is done by the Area Facilities Managers, M & E Engineers and Area Building Surveyors as a significant part of their jobs. This activity is base funded. H & S incidents and actions are recorded in a log. There is also an Asbestos Officer, which is a dedicated post attached to the Building Surveying Team. This post provides specific subject matter expertise, and is responsible for asbestos management policy within the council. It is a full-time post required to meet WSCC needs but there is some limited selling of expertise services to academies. In addition to the FM Team H & S activities there is a corporate H & S function for the council which has recently been outsourced. Grounds maintenance There is an experienced, dedicated team of 2 which focuses on this aspect of the FM service. The service they provide is highly regarded and overall capacity provides adequate resilience to manage the activity which is undertaken exclusively on WSCC sites. There are currently two contracts covering the estate (corporate buildings and schools to which schools can opt in on a voluntary basis) plus some minor cases of services making their own local arrangements. The intention is to rationalise these into a single contract to be re-let in January The activity is base funded 20

24 from WSCC revenue with schools paying for services they receive directly to the contractors. There is an SLA with schools for FM Team s grounds maintenance work which is re-charged on a fee basis. Additional FM Activity Audit Space Planning Undertaken as part of the Corporate Facilities Team within FM. Currently very busy because WSCC is going through a period of office rationalisation and implementing new ways of working. The work requires close liaison with service departments. There is adequate capacity, expertise and resilience through the Area FM Teams. Space planning is undertaken using AutoCAD Lite which requires some significant expertise to use well. Move Management This is undertaken by the same staff as the space planning. Essentially it can be seen as a project management activity. Although currently a busy period for the team the overall capacity, expertise and resilience is adequate. Meeting Room Services This activity is not within the scope of the FM Team. It is part of the Office Services Team + there is a post within the WSCC Communications Team which is focussed on reducing use of external meeting rooms as part of an efficiency drive. It could be perceived as an FM activity and in the future could possibly have an emphasis on income generation through letting of space for external users (Although the prevailing philosophy of the council is that if space is not being used it should be disposed of). Post Services This is not currently undertaken as part of the FM Team activities but is provided by the Office Services Team. N/A N/A Office Furniture The FM Team undertake the administrative function of ordering office furniture which service departments pay for from their own budgets. Whilst there is a presumption in re-using furniture where possible the move to a new corporate model supporting flexible working also requires new furniture. The delivery of furniture however sits outside of the FM Team with the Capital & Infrastructure Team. There does not appear to be a clear rationale for the separation between ordering and delivery parts of this activity (which can from time to time lead to problems); rather it is a legacy of earlier organisational decisions. There are no specific views on this element of FM activity but it could be readily outsourced. 21

25 Porters The FM Team has two porters at County Hall + a grounds maintenance person who keeps the area tidy. These three posts focus on front of house at County Hall and there are no others porters at other buildings. All posts are based funded and there are no capacity issues. Courier Services This is not currently undertaken as part of the FM Team activities but is provided by the Office Services Team. N/A Events The FM Team provide services, such as catering for events which are held from time to time at the facilities within Chichester (County Hall and Eades House) and at County Hall North. These are ad hoc, rather than regular, and the services are provided as an adjunct to staff main duties. These events include, for example, weddings and member receptions. This is currently seen as an incidental activity which is undertaken on a cost recovery basis but there maybe some scope to develop it as an income generating activity. Training The FM team provide on a systematic basis training on building matters. These training sessions are typically for caretakers; school bursars and occasionally school governors. The focus for this activity is through the catering team but other staff are drawn into to provide specialist expertise as required. 22

26 5.0 Comparative Analysis 5.1 Outline of Approach In order to provide WSCC with a robust reference point to support consideration of any proposals for the future of the service a comparative benchmarking exercise was undertaken with 8 other councils. These included 4 county councils and 4 unitary authorities. The 8 councils were chosen to provide richness in terms of their size and existing organisational arrangements for FM. Collected data was presented so as to allow easy comparison of WSCC in terms of their organisation and delivery model. As a consequence of the differing interpretations of activities amongst the other authorities, a certain degree of pragmatism and convenience was used in the data collection stage with an emphasis on using what data was available. 5.2 Profile of Comparator Organisations For the purposes of this review, comparisons were made with 8 other councils. These were grouped into county councils and unitary authorities. The county councils are referenced 1 to 4, and the unitary authorities A to D. Authorities have not been identified by name. A pen picture of each authority in terms of their broad dimensions and current FM arrangements is given in diagram 4. In general there are common themes amongst all comparator organisations the fact that the FM function has been involved in a journey of development and that this journey is continuing; budget pressures and the move towards a more integrated Total FM model. However there are also some significant differences even amongst the small number of comparator organisations and this includes the types of organisational models being used for FM delivery. The narrative of the comparator organisations in Appendix B illustrates some of the diversity of existing arrangements. 23

27 Diagram 4 Pen Picture of Comparator Organisations Decision taken in terms of future FM options 24

28 6.0 Looking Forward Options for the Future 6.1 Immediate Short-Term Priorities The FM Team has recently been established in its current form as part of WSCC s recent and on-going restructuring. As a consequence the immediate priority of the FM is to consolidate; assume the Corporate Landlord Role; clarify existing roles and responsibilities and to make it work. This in itself requires some significant work to resolve FM costs at an individual building level (so as to ensure activity levels are commensurate with funding); the development of effective working relationships with building users and service managers and the streamlining of existing contract arrangements with external service providers. Specific short-term priorities for action include:- Review of existing contracts to consolidate into fewer unified corporate contracts in which schools can participate (on a voluntary basis). Clarify and resolve operating costs to ensure these are consistent with required activity levels (legacy issue from implementing the Corporate Landlord Model) Support the implementation of Atrium as the corporate property database and audit data quality to identify areas where data availability may be compromising FM performance. Resolve any legacy issues from recent organisational changes such as misplacement of activities. 6.2 Articulating Options for the Medium-Term The options for developing FM services are dependant on three broad questions and WSCC s view of the key factors influencing these questions. These are:- The size and role of the retained FM capacity The scale and nature of any externalisation of activities The extent of engagement with other public bodies 25