Pest Control Service Review

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1 Customer and Community Scrutiny Committee report Report of Head of Health and Community Care Author: Justine Fuller Tel: Lead Councillor responsible: Councillor Billington Tel: Date: 10 December 2013 Recommendation Pest Control Service Review That the committee: 1. considers and comments on the review of the Council s Pest Control treatment services and the options set out for future service delivery. 2. supports the contract re-tender for a complete outsourced service including administration. Reason for Recommendation: In order to ensure the committee s involvement in scrutinising the service review options and recommendations for future service delivery, upon the expiry of the current contract for Pest Control treatment services on 29 June Purpose of Report 1.1 This report examines the way the Council currently provides for domestic pest control services, the need for such a service and future delivery options. 1.2 In 2012, a lean review of the Council s Pest Control administration processes identified that the service was in deficit and recommended a full review to include service delivery options that would ensure the service is sustainable. Management Team decided that a service review should consider different options for delivery of the service. It was agreed that the review would include the option to cease to provide a pest treatment service to residents on the basis that an established external market exists. 1.3 The expiry of the existing contract for the supply of Pest Control services presents an opportunity to consider future delivery options. 1.4 The scope of the review covers domestic pest control services only. 1

2 2. Corporate Plan Priorities 2.1 The review of Pest Control directly contributes to the theme of Developing your Council and the priority to improve value for money and efficiency in service delivery. 3. Background 3.1 The Pest Control treatment service is discretionary. It is a service provided by most local authorities, particularly targeting those pests considered a public health risk, such as rats and mice. Treatment is a separate issue to enforcement of statutory pest control legislation that remains a duty on the Council. 3.2 In that respect, the Council has specific duties under the Prevention of Damage by Pests Act 1949, namely to take steps to ensure that the borough is kept reasonably free from rats and mice and in particular to: from time to time carry out inspections destroy rats and mice on land the Council owns or occupies, and enforce duties of owners and occupiers to keep other land free from rats and mice. 3.3 The Council does not have to undertake pest control itself and, if it chooses to do so, there is no requirement to offer this service free of charge. 3.4 Other powers and duties regarding public health pests are included in other environmental health legislation, such as the Food Safety Act, Public Health Acts, and the Housing Act. 4. Current service provision 4.1 The Council has provided a direct pest control service for over 30 years. In June 2009, a contract commenced to providing resilience and support to one Pest Control Officer during peak times and periods of absence. 4.2 In November 2011, the Pest Control Officer retired and the contractor, Monitor Pest Control Limited has continued to carry out the Council s treatment service, with our staff providing administrative support. The current budget provides for 0.05 FTE as a proportion of management of the service and 1.2 FTE administrative support who book appointments, deal with queries, take payments and invoice. 4.3 The current contract with Monitor Pest Control Limited commenced in 2010 as a joint procurement with Surrey Heath and Woking borough councils. The contract expires on 29 June The Environmental Control team leader is responsible for contract liaison to ensure the smooth running of the contract. Guildford, Woking and Surrey Heath hold regular joint meetings with the contractor to deal with any performance, 2

3 legislative or topical issues and overall monitoring of the current contract. Each authority carries out test visits and checks by mutual arrangement on the operational methods, this includes Environmental Health Officers accompanying technicians and talking to customers. Although there are no specific key performance indicators the contractor has to meet appointment commitments set by the Council s administrators. 4.5 The review highlighted a need to improve and implement more robust contract management in relation to performance targets, but did not find any serious failing in the service provided by the contractor. 4.6 We have not regularly collected customer feedback but as part of the service review we surveyed customer satisfaction over a six-month period from January to August 2013 and continue to do so. Although only 92 customers were contacted, the results show that respondents were largely satisfied with the service, with 87 per cent voting excellent as their overall impression of the service. A summary of the results is attached in Appendix The current service is mainly reactive, responding to requests from residents for treatments and infestation surveys. In 2012 over 80 per cent of all requests involved rodent problems. There is also a high incidence of wasp treatments for the removal of nests, particularly during the summer months. 4.8 The table below shows the trend in the number of initial pest control treatments completed in the last 5 years. Number of initial pest control treatments completed in the last 5 years Pest/Year Bedbugs Cockroaches Fleas Mice Rats Rats/Mice Wasps Other Surveys Total The Council does not currently charge domestic customers for rodent treatments but the service raises income by charging fees for other pest control treatments The following income and expenditure table shows the direct costs of the pest control service excluding recharges. It indicates the cost of providing the service Although last year employee related costs reduced due to the retirement of the Pest Control Officer, the payments to the contractor have increased. The deficit 3

4 of the service in was higher due to lower than expected income received from the removal of wasp nests, due to a wet summer. Costs of Pest Control service Actual Actual Actual up to Period Employee related 46,830 29,728 18,915 Payment to contractor 34,536 56,670 23,919 Transport 6, Materials 1, Telecoms Total Expenditure 91,292 87,575 43,321 Income -22,362-8,486-14,321 Net Cost (Deficit) 67,930 79,089 28, Industry research and benchmarking 5.1 The British Pest Control Association (BPCA), a not for profit trade body which represents the public health pest control sector, produced a National Survey in 2013 covering a comprehensive analysis of UK pests. The survey analysed the demand for pest control across 407 local authorities in the UK over a 12 month period A summary of the analysis shows how the provision of public pest control services has changed in recent years, attributed to austerity measures, with only seven per cent of councils with an in-house service able to continue to offer free treatments. For those councils who sub-contract their work to a third party around a quarter offer free or subsidised pest control. 5.3 The survey ranked Guildford Borough Council 56 th highest in the number of call outs for treatments out of the 406 local authorities surveyed. 5.4 The review completed an analysis of the arrangements in place at other local authorities in Surrey and within the Council s family group (these being authorities with similar characteristics and demographics to Guildford). This analysis reviewed fees and charges and identified that 12 authorities surveyed that provide a service, nine charge for rodent treatments. 5.5 The benchmarking information also showed that of the 12 local authorities that charge for their pest control service, nine offer concessions for other treatments for residents in receipt of benefits. A summary of the benchmarking analysis is attached at Appendix 2. 4

5 5.6 Caution needs to be exercised when making direct comparisons since it does not reflect the scale of the services, the quality to which they operate, nor any indication of the level of uptake and hence income. 5.7 It is impossible to put a figure on the number of rats in the borough and the only source of information is the requests for treatments by residents made to local authorities. However, there are improvements in the Council street cleansing and waste management with the introduction of wheeled bins and other preventative measures that will help to reduce the number of rat infestations. 5.8 National Rodent Survey conducted by the NPTA is the best barometer of national trends in rat populations. This also relies on requests for assistance from participating local authorities, which are compared across the country to indicate relative increases and decreases. The advantage of this survey is that the same questionnaire and methodology are used annually to enable year on year comparisons. 6. Options assessment 6.1 With the current contract for pest control ending on 29 June 2014, it is necessary to consider the way forward beyond that date. The options are on the basis to improve efficiency and financial savings in the service. 6.2 This report identifies four future service delivery options to: do nothing discontinue the pest control treatment service continue to offer a contracted out Pest Control treatment service but introduce charges for rodents. Concessions for users in receipt of Housing or Council Tax benefits would remain. continue to offer a contracted out Pest Control treatment service but re-tender for a complete outsourced service to include booking and payment. Option one Do nothing 6.3 The option to continue to provide the service in the same way does not take the opportunity to introduce a more efficient service to customers. Option two Discontinue the Pest Control service 6.4 As outlined above, the Council is under no legal obligation to provide a pest control treatment service. In view of the current budgetary situation it is important to give this option due consideration, as it would enable the council to make savings. 6.5 The BPCA National Survey covering the period reports an increasing trend of local authorities not providing a pest control service. There is an 5

6 established market for pest control with a number of specialist companies providing this service in the South East region. 6.6 The Council would direct any requests or enquiries for pest control services by appropriate sign posting to commercial providers who are BPCA members via its website or Customer Service team, saving considerable time in administration. 6.7 While discontinuing the pest control service would provide the best option to generate savings, this option is not recommended due to the following reasons: There is public expectation that the council will provide pest control services, with residents accustomed to a free service for rodent treatments. It is expected that ceasing to provide a service would cause some degree of customer dissatisfaction, particularly in the early stages. Residents may decide not to take action to treat an infestation due to costs. This may increase the numbers of rodents and spread of disease. Residents may also use DIY treatments endangering other animals and which are ineffective in the treatment of rodent populations. If the Council continues to contract out the service to a preferred supplier and provide some subsidies this would help achieve objectives and commitment to the Council s new Public Health and Wellbeing strategies. The service could generate savings and efficiencies in an alternative way. Option three Continue to offer a contracted out Pest Control treatment service but introduce charges for rodents. Concessions for users in receipt of Housing or Council Tax benefits would remain. 6.8 The Council does not currently charge for the service for rodent treatments and an introduction of charges for rats and mice would generate income to offset the contract cost of providing the service. However the change would have an impact on public health that would need to be evaluated. 6.9 The pricing structure would need careful consideration. Following the introduction of charges, if fewer people request treatments then it is entirely possible that the Council s Environmental Health team could receive an increased number of complaints about rats and mice. This may result in an increased level of enforcement action by Environmental Health Officers, which will be time consuming The introduction of a charge will also support residents to take greater responsibility in reducing the causes of rat infestations if a contribution towards the problem of rats and what causes infestations would help to reduce the incidence of rat infestations and improve the environment The National Pest Technicians Association (NPTA) produces an annual National Rodent Survey and has recently reported that the introduction of charging across UK Local Authorities has caused more residents to carry out DIY treatment or not seek appropriate assistance at the correct time. For those Councils who have changed from providing free treatments to introducing charges for pest control the number of requests for treatments for rats has fallen. It is not known whether 6

7 those residents with rats or mice problems decided to carry out the works themselves or went to an alternative contractor NPTA suggest that increasing charges is one of the causes attributed to the current increase in the rodent population nationally. Although there have been slight fluctuations and mice treatments did increase significantly last year, overall the numbers of rodent treatments in the borough over the last five years has shown a downward trend. Option four Continue to offer a contracted out Pest Control treatment service but include administration in the contract This option would ensure that residents still have access to a reputable contractor carefully selected by the Council and ensure that the service is exposed to competitive tender with a view to accepting the most advantageous tender to the Council Our current contract was jointly procured with Surrey Heath and Woking who have expressed an interest to continue this arrangement. Providing a common specification and contract procurement will bring savings with the added advantage of utilising the procurement capabilities of Surrey Heath A detailed specification will need to be developed, detailing response times and performance measures to enable the Council to select the best provider that offers the best service at the lowest cost for residents of the borough. If the service is to be fully outsourced then a robust monitoring and communication framework will need to be established to ensure the successful contractor provides a service of the quality required and informs the council of public health issues that require enforcement intervention The Council has provided an effective and well-used pest control service for many years. There has been little need for the Council to enforce under the Prevention of Damage by Pests Act 1949 due to the availability of the service. Subsidy 6.17 In addition to free treatments for rats and mice, the Council currently operates a subsidy system for all residents on specified benefits (income based job seekers allowance; income support; guaranteed pensions credit) that pays over half the cost of all other treatments. These subsidies impact on the cost of the current and future contract for provision of service A benchmarking review of fees and charges across Surrey boroughs and districts and those in our family group shows that the majority who continue to provide pest control services offer subsidies to customers on means tested benefits. We recommend that the Council continue to offer existing subsidies on other treatments to all customers on means tested benefits. 7

8 7. Financial Implications 7.1 Currently the net cost of the pest control service falls on the General Fund. 7.2 If the recommendation is agreed and administration is included as part of the tendering process there is a potential to save 1.0 FTE administration officer post which would amount to a saving of 24,700 including salary and on costs. 8. Legal Implications 8.1 As outlined above there is no statutory duty to provide a pest control service. The Council does have certain obligations covered by the following legalisation: 9. Risk Prevention of Damage by Pests Act 1949 and the Public Health Act This legislation requires the Council to enforce the duties of owners and occupiers to keep their land free from pests. The legislation does not require the Council to offer a pest control service. A discretionary pest control service can be provided under the Localism Act 2011, which gives local authorities the general power of competence. A charge for providing a pest control service can be made under the Local Government Act 2003, which includes a general power for local authorities to charge for discretionary services. 9.1 There are a number of risks identified relating to the options. If approved, the proposed recommendation may lead to a loss of information about the pest levels within the Borough. However requiring the successful contractor to provide updates on the types, numbers and locations of treatments can be included in the contract to minimise the risk. 10. Human Resource Implications 10.1 The retendering of the Pest Control contract to provide a fully outsourced service will have a direct impact on the workload of the Environmental Health administration team. This would potentially reduce the requirement for 1.0 FTE posts However, it is not anticipated that redundancies will need to be made if the pest control administration is outsourced. Potential changes to pest control have been anticipated as part of a wider review and restructure of the Environmental Health and Licensing administration team. One vacant permanent post has been reassigned to a temporary fixed term contract until December The need for this post will be reviewed at that time in line with planned changes and consideration will be given to whether TUPE applies. 8

9 11. Conclusion 11.1 The review highlights that a survey by NPTA in 2010 reported that the numbers of rats are increasing, although there is no absolute measure of rat numbers available. It is unclear why the numbers are increasing but could be due to a whole range of factors, including increasing amounts of rubbish, fly-tipping, poor housing conditions and milder winters The Council s wider response to the problems associated with pest control is an important factor. Improvements in the Council street cleansing and waste management with the introduction of wheeled bins and other preventative measures will help to reduce the number of rat infestations. The Public Health and Wellbeing Strategies are also important in supporting and educating residents in the prevention of rodent infestations Income is seasonal and very much dependant on the wasp nest season Financial savings and efficiencies are possible by including the administration function within the pest control contract There is the opportunity for further financial savings by the introduction of charges for rodents. However, further assessment is required of the effects of charges for rodent treatments and whether to introduce charges in appropriate circumstances e.g. where keeping of animals, lifestyle or behaviours has contributed. Consideration of the potential public health effect is necessary In proposing recommendations for the future of the Pest Control service, consideration was given to the best option to generate savings and efficiencies. 12. Recommendations 12.1 We recommend that option four is presented to the Executive for approval as follows: The contract for providing pest control services is re-tendered to include all administration functions, including booking and payment for services. Options for joint procurement are explored to take advantage of further savings. The Council continues to offer subsidies to all customers on specified benefits. 13. Questions for Overview and Scrutiny Committee 13.1 The committee is asked to review the content of this report and appendices and consider the following: 9

10 14. Appendices Does the committee believe that the report provides sufficient information on which to base a decision on the future operation of the Pest Control service? Appendix 1 Pest Control Customer Satisfaction Summary Appendix 2 Pest Control Benchmarking September

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