Contact: David Carman, ext 5967 email: [email protected]

Kevin Ings, ext 6986 email: [email protected]

1. Summary

1.1 The following decisions are sought:

Part 1 - Environmental Service Providers

(i) That the arrangements for securing services from the voluntary and community sector to support the Environment Department's environmental and community objectives through Service Level Agreements are changed as follows:

(a) Service Level Agreements with Service Providers are replaced with grants for delivery of areas of work; and

(b) applicants for grants must demonstrate the ability to deliver against criteria.

(ii) That the following levels of contribution to the service areas be approved for the 2007/08 financial year, and that the financial situation be reviewed after the Council receives its next three year financial settlement following the Government's Comprehensive Spending Review 2007, with the intention of awarding three year grants, renewable annually:

£

Historic Parks and Gardens 20,000

Schools Landscapes

(i) supporting the Hampshire County Council 15,000

Schools Landscape Programme

(ii) supporting advice at a national level 22,000

Environmental Conservation 10,000

Built Heritage 15,000

Environmental advice to land managers 15,000

Coastal Archaeology 19,000

Total 116,000

(iii) That the South Downs Joint Committee be added to the County Council corporate partnership register.

(iv) That the level of contribution to the South Downs 30,000

Joint Committee Partnership for 2007/08 be agreed.

Total Environmental Services 146,000

Part 2 - Payments to Community Transport Operators

(i) That in the majority of cases the existing grants and service agreements should become grants with conditions attached.

(ii) That where appropriate these grants should be offered for three years, renewable annually.

(iii) That the arrangements should be introduced as soon as is practically possible after 1 April 2007 or when any existing service agreements expire, if this date is later.

(iv) That in the case of the existing service agreements for Dial a Ride, Call and Go and Wheels to Work schemes these should continue whilst further discussions are undertaken on the most appropriate future arrangements for funding these services, in order to meet the requirements of the Code of Practice on Funding and Procurement whilst also delivering best value.

(v) That in compliance with the One Compact for Hampshire, operators and other joint funders should be consulted regarding these proposals before any changes are implemented.

2. Reason

2.1 To meet the requirements of the Procurement and Funding Code for the One Compact for Hampshire. This will ensure that the corporate objectives of maintaining and improving quality of life, that everyone has the opportunity to be active in their community, protecting local distinctiveness and diversity, and respecting Hampshire's heritage and planning proactively for the future are supported.

3. Other Options Considered and Rejected

3.1 To continue with the current funding arrangements.

4. Conflicts of Interest Declared by the Decision Maker or Other Executive Member Consulted - None.

5. Dispensation granted by the Standards Committee - None.

6. Reason(s) for the Matter being dealt with if Urgent - None.

Approved by: Date:

Councillor M J Kendal

Executive Member for Environment

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Contact: David Carman, ext 5967 email: [email protected]

Kevin Ings, ext 6986 email: [email protected]

1. Summary

1.1 The Environment Department works with a number of voluntary and community organisations, either to support the services they provide or to obtain particular services that are most effectively delivered by them. The mechanism for supporting or securing services has traditionally been the Service Level Agreement (SLA) which sets out what the organisation will deliver, what the County Council will pay and the measures that will be applied to satisfy the requirements for quality of service.

1.2 The One Compact for Hampshire is an agreement between the County Council, other local authorities and the voluntary and community sector, providing guidelines for how they will behave towards each other to deliver mutual benefits. The Procurement and Funding Code for the Compact was reviewed and revised in 2005 and now requires that there is a greater degree of openness about the way that resources are allocated, services secured and the conditions that are applied.

1.3 Current corporate guidance is that Service Level Agreements are no longer considered appropriate as a method of securing services outside the County Council. The current options within the Compact for securing services from the voluntary and community sector are either grant or contract, which may be for up to a three year duration. This requirement has led to the Department reviewing the way that it works with the voluntary and community sector, with the new systems being implemented in the 2007/08 financial year, or when the existing service agreements expire if this is later.

1.4 This report focuses in Part 1 on those Environmental Service Providers managed within the Waste and Environment Branch; and in Part 2 Service Level Agreements held between Passenger Transport, their district partners and different voluntary or charitable sector advisors.

Part 1- Environmental Service Providers

2. Current Position

2.1 The current Service Level Agreements with Environmental Service Providers and funding allocations for 2006/07 are as follows:

£

Hampshire Wildlife Trust 15,000

Hampshire Gardens Trust 15,000

Hampshire Ornithological Society 3,000

Butterfly Conservation Society 3,000

Learning Through Landscapes Trust 22,000

British Trust for Conservation Volunteers 23,000

Hampshire Buildings Preservation Trust 15,000

jointly with Bursledon Brickworks Trust

Hampshire and Surrey Farming and Wildlife 15,000

Advisory Group

Hampshire and Wight Trust for Maritime Archaeology 19,000

2.2 On 21 March 2006 the former Executive Member for Environment: South Hampshire and Resource Management considered a report which made reference to three other Environmental Service Providers:

£

Hampshire Biodiversity Information Centre 21,000

South Downs Joint Committee 30,000

Forest of Eversley Partnership 15,000

These services are not secured through Service Level Agreements, but are funding partnerships with other local authorities and public bodies. They therefore fall outside the One Compact.

2.3 The service areas provided under the current SLAs with Hampshire and Isle of Wight Wildlife Trust - for a contribution to an officer dedicated to providing advice and information on Sites of Interest for Nature Conservation (SINCs); Hampshire Ornithological Society; and Butterfly Conservation Society - for support for surveying and recording have been subject to the recent Departmental budget review. They will not be renewed in 2007/08 and therefore not considered below.

2.4 Each of the relevant SLAs has been reviewed to determine the most effective way of meeting the requirements of the One Compact and delivering the service required to support the Environment Department. In each case, the review considered:

(i) the nature of the existing service;

(ii) whether the service is delivering what the Department wants;

(iii) the changes that may be required to the service; and

(iv) the criteria and conditions that those expressing interest in the delivery of the service will be required to meet.

The review therefore assessed the services to be delivered rather than considering the organisations currently delivering them.

3. Framework

3.1 Historic Parks and Gardens

Service

(i) influence national policy in the interest of historic parks and gardens;

(ii) provide guidance and research information to Hampshire County Council on developments with respect to historic parks and gardens;

(iii) provide support and advice in the development, compilation and monitoring of Hampshire Local Historic Parks and Gardens Register;

(iv) provide support in dissemination of historic parks and gardens and heritage awareness in work with schools and communities;

(v) advise and contribute to Hampshire County Council environmental records and local register giving research support;

(vi) participate in joint working initiatives to promote an understanding, appreciation and enjoyment of local historic, cultural, natural and built heritage, in order to develop a sense of place for the local community;

(vii) make available publications and training facilities to Hampshire County Council; and

(viii) provide advice on direction and approach for Hampshire County Council's conferences and training seminars on Historic Parks and Gardens.

Criteria

(i) Charitable Trust or other voluntary body;

(ii) possess a high level of knowledge of Hampshire's historic parks and gardens amongst core staff and volunteers;

(iii) able to involve volunteers in research for the Register;

(iv) able to provide regular data inputting support and advice to the County Council through internal use of its systems;

(v) able to provide training for volunteer researchers; and

(vi) have a national voice for local historic parks and gardens issues.

3.2 School Landscapes

In relation to environmental enhancement of school grounds.

Services

(i) support the County Council's Schools Landscape Programme through engaging named schools in a process of review, planning, implementation works and long term management advice with respect to the school grounds;

(ii) carry out base line reviews of school grounds to a format agreed with the County Council to inform future involvement; and

(iii) deliver training sessions to school communities as part of the environmental improvements scheme, making links between the schools' external environment, the national curriculum and sustainable use of the schools grounds. Assist schools individually, as required, to plan and participate in the stewardship of their own environment both for the benefit of wildlife and the children who use the sites.

Criteria

(i) Charitable Trust or other voluntary body;

(ii) have a high level of expertise and experience amongst staff in the delivery of conservation advice in schools;

(iii) have the demonstrable confidence and trust of teachers and governors;

(iv) use of volunteers to deliver land management activities, advice and promotion; and

(v) be engaged in environmental education for the benefit of the community.

In relation to providing a national level of advice and guidance on school grounds as an educational resource and supporting the County Council in its own delivery.

Services

(i) influence national policy in the interest of school grounds;

(ii) provide guidance and dissemination of research information to Hampshire County Council on developments with respect to school grounds as an environmental educational resource;

(iii) make available publications and training facilities to Hampshire County Council;

(iv) advise and contribute to Hampshire County Council's School Landscape Programme through dissemination of information on similar national projects and practices, in order to inform and advance the development of the process for working with schools in Hampshire on improvements to school grounds;

(v) provide advice on direction and approach for Hampshire County Council's publications, conferences and training seminars on school grounds.

Criteria

(i) Charitable Trust or other voluntary body;

(ii) have a high level of expertise amongst staff engaged in the undertaking of research and provision of advice;

(iii) have the demonstrable confidence and trust of Local Education Authorities, schools and governors; and

(iv) ability to influence education policy at a national level.

3.3 Environmental Conservation

Services

(i) support the development of local groups active in environmental conservation;

(ii) provide training, support and advice to community groups and land managers;

(iii) enable the establishment of links between landowners and community groups in undertaking land management activities;

(iv) promote the guidelines for the protection and enhancement of the distinctive landscape character of the County;

(v) liaise between landowners and other statutory and voluntary organisations to secure land management advice and action and avoid duplication of advice and action; and

(vi) facilitate local communities to undertake practical project work.

Criteria

(i) Charitable Trust or other voluntary body;

(ii) established track record of working with local community groups;

(iii) have a high level of expertise amongst staff in the delivery of training and advice;

(iv) use of volunteers to deliver land management activities, advice and promotion;

(v) be engaged in environmental education for the benefit of the community and land managers; and

(vi) ability to influence targeting of public resources at a national level.

3.4 Built Heritage

Services

(i) work together with other bodies and preservation societies to promote and develop awareness and support for the conservation of Hampshire's built heritage;

(ii) provide specialist research and practical advice to Hampshire County Council, Environment Department on Hampshire's historic built environment and historic structures;

(iii) give specialist advice to owners and voluntary organisations on relevant materials, techniques and practical works as appropriate; and

(iv) provide training and support in building conservation principles and techniques and conservation advice to the Hampshire public, developing an education network for building conservation.

Criteria

(i) Charitable Trust or other voluntary body;

(ii) capable of understanding and disseminating technical and legal issues relating to the historic built environment and its management;

(iii) commitment and ability to involve volunteers in projects, survey, data collection and community environmental education;

(iv) have in place a programme reviewing historic built environment management issues; and

(v) have in place a programme of survey and reporting which uses volunteers.

3.5 Environmental Advice to Land Managers

Services

(i) provide a farm conservation advisory service to the farming and landowning community of Hampshire;

(ii) promote environmentally responsible farming practices to achieve the sustainable management of land and natural resources;

(iii) promote activities that will contribute to the protection and enhancement of the distinctive characteristics of the Hampshire landscape;

(iv) contribute to the collection of ecological, archaeological and historic landscape information. (Subject to the consent of landowners, this data will be integrated into the County Council's environmental databases and made available to the public);

(v) be an active participant in the network of organisations influencing and delivering land management action and community participation in land management.

Criteria

(i) Charitable Trust or other voluntary body;

(ii) have a high level of expertise amongst staff in the delivery of on-farm advice;

(iii) have the demonstrable confidence and trust of farmers and land managers;

(iv) use of volunteers to deliver land management activities, advice and promotion;

(v) be engaged in environmental education for the benefit of the community and land managers; and

(vi) ability to influence targeting of public resources at a national level.

3.6 Coastal Archaeology

Services

(i) provide specialist coastal archaeological advice to the Director of Environment in response to reasonable enquiries;

(ii) provide specialist coastal archaeological advice to a range of external interests, including The Solent Forum, The Dibden Forum, SCOPAC, and on matters arising from current Shoreline Management Plans, and attendance at relevant meetings, as invited;

(iii) promote and deliver specialist coastal archaeological surveys and presentation of the results;

(iv) promote a better understanding and enjoyment of the coastal archaeology of the Solent among the public;

(v) promote a better understanding of the archaeological issues in the Solent; and

(vi) liaise closely with the Hampshire Archaeology and Historic Buildings Record to ensure effective data exchange of coastal archaeological data.

Criteria

(i) Charitable Trust or other voluntary body;

(ii) capable of understanding and disseminating technical issues of coastal management; able to draw on that information to inform coastal management discussions; be able to draw on the heritage of the marine context;

(iii) have the ability to involve and enthuse volunteers in projects;

(iv) be engaged with community environmental education;

(v) have in place a programme reviewing coastal heritage management issues;

(vi) have in place a programme of data collection, storage and sharing;

(vii) use volunteers in survey and data collection, and in environmental education tasks;

(viii) have a diving code of practice that addresses all relevant health and safety legislation.

4. Impact Assessments

4.1 In accordance with the One Compact for Hampshire applications for grants are open to all voluntary and community bodies with relevant experience, enabling equal opportunity for all.

Recommendations

Part 1 - Environmental Service Providers

1. That the arrangements for securing services from the voluntary and community sector to support the Environment Department's environmental objectives through Service Level Agreements are changed as follows:

(a) Service Level Agreements with Service Providers are replaced with grants for delivery of areas of work; and

(b) applicants for grants must demonstrate the ability to deliver against criteria.

2. That the following levels of contribution to the service areas be approved for the 2007/08 financial year, and that the financial situation be reviewed after the Council receives its next three year financial settlement following the Government's Comprehensive Spending Review 2007, with the intention of awarding three year grants, renewable annually:

£

Historic Parks and Gardens 20,000

Schools Landscapes:

(i) supporting the Hampshire County Council 15,000

Schools Landscape Programme

(ii) supporting advice at a national level 22,000

Environmental Conservation 10,000

Built Heritage 15,000

Environmental Advice to Land Managers 15,000

Coastal Archaeology 19,000

Total 116,000

3. That the South Downs Joint Committee be added to the County Council Corporate Partnership Register.

4. That the level of contribution to the South Downs 30,000

Joint Committee Partnership for 2007/08 be agreed.

Total Environmental Service Providers 146,000

Part 2 - Payments to Community Transport Operators

5. Introduction

5.1 The Passenger Transport Group in the Environment Department works with a range of voluntary and community sector organisations, either to directly or indirectly support the provision of community transport services that are best delivered by the sector. Most of these arrangements are in the form of Service Agreements, also known as service level agreements. These currently offer security of funding for three years in return for delivering services in accordance with a specification and defined standards for quality and performance. The arrangement has worked well for both the Council and the voluntary and community sector.

6. Existing Grants and Service Agreements

6.1 Financial support for community transport takes a number of forms and are considered in the following paragraphs:

(i) small grants - typically of no more than £1,000;

(ii) medium sized grants for transport services - under £10,000;

(iii) contributions through service agreements towards the infrastructure costs of area-wide community transport schemes, such as those run by Councils of Voluntary Service;

(iv) grants through service agreements towards minibus purchase, to facilitate affordable transport for voluntary and community groups; and

(v) operation of services, primarily Dial a Ride, Call and Go and more recently Wheels to Work schemes through service agreements.

7. Small Grants

7.1 These are typically for sums of a few hundred pounds per annum, such as grants to make up losses made by community care groups and good neighbour schemes in operating their car schemes with volunteer drivers. These schemes provide a valuable safety net for older and vulnerable people, particularly in providing transport to medical appointments. In view of the small sums, grants will remain the most appropriate form of financial support.

8. Medium Sized Grants

8.1 These are typically sums of between £1,000 and £6,000 per annum for the operation of specific services such as:

(i) weekly or fortnightly shopper services for people with mobility difficulties such as the `Denmead Shopper';

(ii) small scale rural dial a ride services run entirely by volunteers, such as those in the Romsey and Bishop's Waltham areas; and

(iii) community care groups and good neighbour scheme operating larger scale car schemes.

8.2 In some cases these grants are matched by payments from others funders. As some of these grants are used to secure the delivery of regular services, there could be an argument for replacing the grant with a contract arrangement. However, in view of the modest sums involved, the good value represented by the current providers and the lack of alternative providers, it is recommended that grants continue to be the most appropriate form of financial support for these services. Where appropriate three year grants could be awarded, renewable annually.

9. Contributions towards the Infrastructure Costs of Area-wide Community Transport Schemes

9.1 These community transport schemes provide a pool of wheelchair accessible minibuses, available for hire by local voluntary and community groups. The contribution made by the County Council usually represents the cost of a `transport organiser' post and associated administration costs to oversee the operation of the fleet, ensure that the minibuses are properly maintained, and to recruit and train volunteer minibus drivers. The reason behind these grants is to build capacity in the voluntary and community sector. It is a more efficient and effective use of public money to build capacity within a single organisation, which can make good use of its minibuses by hiring to a range of groups, than to provide individual grants to organisations to purchase their own minibuses, many of which will be little used.

9.2 A number of these grants date back around 20 years and have been taken over more recently from Adult Services. Now under the responsibility of the Environment Department, these grants were being brought under service agreements to ensure a defined service specification and performance/quality standards. These grants vary in size from £17,000 to £34,000 per annum, and in some cases schemes also receive a contribution from their district council. Overall, schemes receive a total of approximately £230,000 per annum, including district council contributions.

9.3 In essence these grants are similar to the core grants which County and district councils provide to support the core infrastructure costs of Councils of Voluntary Service (CVS), in that the transport organiser grants ensure that each organisation (often the local CVS) has the infrastructure in place to administer a group hire transport scheme. It is therefore appropriate to continue to administer these payments as three year grants, renewable annually, but to replace the service agreements with conditions attached to the payment of the grant. In effect, the contents of the service agreement would become conditions of the grant.

10. Grants toward Minibus Purchase to Facilitate Affordable Transport for Voluntary and Community Groups

10.1 Minibuses have escalated in price. If hire charges to voluntary groups are to be kept affordable then external funding needs to be found towards the initial cost of a minibus and its replacement at the end of its economic life. The County Council therefore provides grants towards the purchase cost of minibuses, using funds from the Local Transport Plan capital programme, based on the contribution that community transport schemes make to improving accessibility. Grants are mainly provided to the transport schemes operated by the CVS. Grants have also been provided to other organisations whose minibuses are widely used by the local community. All such grants are generally attached to service agreements which set out conditions of use, performance, etc.

10.2 Again it seems appropriate to continue to administer these payments as `one-off' grants but to replace the service agreements with conditions attached to the grants. In effect, the contents of the service agreement would become the conditions of the grant.

11. Operation of Dial a Ride, Call and Go and Wheels to Work Services

11.1 Service agreements are used to secure the delivery of services for people with access problems:

(i) Dial a Ride services for people with disabilities; and

(ii) Call & Go services for people with disabilities and other people who do not have access to other forms of transport.

11.2 These agreements have values from £42,700 to £233,900 per annum although the County Council only meets 50% of the costs, the balance of 50% being met by the relevant district council. The total sum paid to schemes is approximately £700,000 per annum including district contributions. As these service agreements clearly relate to service delivery and are of fairly high value there is a stronger case for them to become contracts, when the current agreements expire. There are, however, complications with this approach:

(i) Tendering would almost certainly need to encompass the transfer of existing staff - scheduler(s) and drivers - under Transfer of Undertakings (Protection of Employees) Regulations 2006. Experience suggests that this will deter potential bidders, resulting in little competition for each contract.

(ii) The current arrangements represent good value for money. This is endorsed by an exploratory tendering exercise that followed the Best Value review of Passenger Transport. The tendering of Havant Dial a Ride, together with the Leigh Park Cango service, resulted in the lowest tender price being significantly above that of the previous price paid under a service agreement, even though the operator was the same in both cases. A contract was not awarded on the basis of the tenders; a negotiated service agreement was put in place at a lower cost. A neighbouring council had a similar experience when tendering their dial a ride. The lowest tenderer, the current operator, submitted a price over 25% higher than their previous annual price. A commercial operator submitted a price 45% higher than the previous price. On the basis of these two exercises tendering appears to make community transport sector operators more risk averse and consequently submit high tender prices, albeit still below that of commercial sector competitors. Awarding contracts on this basis would result in significant budget pressures or a significantly reduced volume of service for the same budget, neither of which is desirable. Better value can be achieved through negotiated agreements.

(iii) In view of the fact that there is strong evidence to suggest that open competition for contracts, in the form of competitive tenders, does not deliver good value for money the feasibility of securing these services through single tender action, whereby a contract is negotiated with only one provider, should be investigated before a decision is made on the future funding arrangements for these services. The latter, if feasible, may provide a useful way forward. It is already used in some instances by Adult Services, to procure care for older and vulnerable people for whom a change of care provider would be disruptive.

(iv) A move from service agreements to contracts would require the support of the district councils, with whom the County Council jointly supports the services. No discussions have taken place at this stage.

11.3 In addition to these services the County Council is also involved in two service agreements for Wheels to Work schemes in Hampshire, both of which currently have a value of less than £10,000. These schemes provide young people with the short term loan of a moped to enable them to access employment and training. However, if the application to the national lottery for a county-wide scheme is successful, then this could bring the value of this scheme in line with some of the larger dial a ride services in Hampshire.

12. Consultation

12.1 Many of the community transport groups and services have been developed through a strong partnership working relationship with the voluntary and community sector in Hampshire over many years. The funding for a significant number of these schemes is jointly provided by the County Council and a range of other agencies, including district councils, parish councils and health. In order to preserve this partnership ethos it is important that any proposed changes should be consulted on with both providers and other funders before they are introduced. Under the One Compact for Hampshire a minimum period of 12 weeks needs to be allowed for consultation before any changes in policy are implemented.

13. Summary

13.1 In the case of the majority of the existing grants and service agreements the way forward is clear: grants with conditions attached. In some cases these conditions will take the place of an existing service agreement.

13.2 In the case of the service agreements for Dial a Ride and Call & Go, these relate to service delivery and there is therefore a stronger case to consider replacing the existing agreements with contracts. There is strong evidence to suggest that open competition for contracts, in the form of competitive tenders, does not deliver good value for money. Before any decision is taken further discussions need to take place to establish whether there is scope for single tender action, whereby a contract is negotiated with only one provider. The latter, if feasible, may provide a useful way forward. It is already used in some instances by Adult Services to procure care for older and vulnerable people for whom a change of care provider would be disruptive.

13.3 The Compact Funding Code does allow for existing service agreements to run their course, only being replaced by any new arrangements when they expire.

Recommendations

Part 2 - Payments to Community Transport Operators

1. That in the majority of cases the existing grants and service agreements should become grants with conditions attached.

2. That where appropriate these grants should be offered for three years, renewable annually.

3. That the arrangements should be introduced as soon as is practically possible after 1 April 2007 or when any existing service agreements expire, if this date is later.

4. That in the case of the existing service agreements for Dial a Ride, Call and Go and Wheels to Work schemes these should continue whilst further discussions are undertaken on the most appropriate future arrangements for funding these services, in order to meet the requirements of the Code of Practice on Funding and Procurement whilst also delivering best value.

5. That in compliance with the One Compact for Hampshire, operators and other joint funders should be consulted regarding these proposals before any changes are implemented

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