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APPENDIX

DUMFRIES AND GALLOWAY COUNCIL

Enterprising DG Commercial Development Plan

Prepared by the Head of Enterprising Services

26 May 2016 – Version 1.0

Version Control: v1.0 Draft for discussion with DGFirst Management Committee on 3rd June 2016

An overview of the development of an Enterprising Service within Dumfries and Galloway

Enterprising DG Page 1

Executive

Summary

• This commercial development plan demonstrates our Council’s commitment to developing and delivering an enterprising service within

the Council. This enterprising service– Enterprising DG – will deliver from within the new Directorate of Economy, Environment and

Infrastructure, and will deliver for the Council:

• A revised and streamlined management structure, which brings together complementary services and gives us a platform to

commercialise and grow our service offerings;

• A centre of excellence for enterprising services, which will work across the whole Council to increase our commercial focus;

• Through this more commercial focus, an increased level of activity;

• A platform on which to build our Region’s economy, where we work side by side with our Region’s small and medium sized

enterprises to deliver real and sustainable economic growth; and

• A surplus which will be available for reinvestment in the Service, or to support other priority frontline services.

• In delivering these benefits, we have devised a new governance structure, where Elected Members are strategically involved at the very

heart of everything that we do. This transparency and open book accounting will require the development of new and effective financial

frameworks within the Council, to ensure a common understanding of our cost base, our approach to charging and cost recovery, and to

the benefits of being more enterprising in everything that we do.

• Enterprising DG will function as a commercial service provider internally to our Council, and using the freedoms, powers and permissions

available to us, locally across our Region, and nationally. By delivering quality, value for money services, and by continuing to learn from

customer feedback, we have a strong platform from which we can build a successful Enterprising DG and contribute in a real and

meaningful way to our Council Priorities.

• To deliver our ambitions will require change; our revised management structure and our new brand are the beginning. These will be

followed with a programme of communication and development for our workforce, Elected Members, and others across the Council; we

will produce a marketing plan, which will provide further detail of the activities to grow our income. These plans and documents will be

shared with Elected Members for approval in due course.

• The remainder of this document provides a high level summary of the existing plans we have for the development of Enterprising DG.

With Elected Member support and guidance, and through our skilled workforce, partners, SMEs, and with continued investment to

maintain our competitive advantage, we can develop a new Enterprising DG that delivers real value for our Region.

Ronnie Dempster - Head of Enterprising Services


Introduction • In 2014, Dumfries and Galloway Council decided to consolidate and develop commercial services within a single service of the Council.

The outcomes to be delivered were agreed as:

• Boosting Dumfries and Galloway’s economy – putting the local economy at the centre of its strategy, aligning its immense reach and

capacity behind the economic goals for Dumfries and Galloway, and helping position our Region well to weather the local downturn

in business opportunities and take advantage of any opportunities to grow the local economy;

• Supporting the Dumfries and Galloway economy through maximising the benefits accrued from existing and future business

opportunities in partnership with SME’s and micro employers across the Region;

• Generating income – seeing the Council actively pursuing commercial opportunities that can bring in income to cross-subsidise other

essential activities;

• Developing and using a strong commercial acumen – where costs, worth and value are key elements of its business approach and

the Council is better equipped and positioned to use opportunities to generate income;

• Creating an organisation – with greater opportunities for more creative models for service delivery; and

• Continued and enhanced work to aid and build resilience in our communities so they are well-placed to take back community

ownership of locally important priorities best tackled through local community action and supported by the services provided by our

Council.

• These outcomes build upon the successful delivery of services that have been provided to our Council and external clients for a number

of years. The provision of these services are already a vital element of our regional economy – providing annual services valued at over

£44 million, supporting the employment of 1,400 individuals, annually sub-contracting work valued at £17 million, and building the skills

and expertise of the next generation of our workforce by providing trade apprenticeships to young people within our Region. This

business plan establishes the foundation to further grow this significant contribution.

• We have an opportunity to further develop our market knowledge and expertise. We will use our knowledge and expertise to expand

our service offerings to new markets, new customers, or new services, where there is a clear business case for us to do so, and where this

direction is approved by Elected Members. Our summary financial plan, demonstrating this growth, is included at Appendix 3.

• It is a fact that small and medium sized businesses find it difficult to win significant levels of contract work from the public sector, due for

example to issues with procurement processes (principally the time and cost involved in pursuing tenders with no guaranteed return) and

the packaging of work (where many contracts are seeking multi-trade skills that simply do not exist within many of our small businesses).

• Enterprising DG will provide regular and straightforward routes to market for these small and medium sized enterprises within our

Region, providing them with access to opportunities that would not otherwise be available to them.


• We already have a number of established sub-contractors who provide services on contracts which we have won, and we are constantly

seeking to expand this listing. An extract from the listing of our current sub-contractors is included at Appendix 5. We maintain our

listing of sub-contractors, in accordance with EU Procurement Regulations, within a ‘dynamic framework’, allowing businesses to join our

framework of sub-contractors at any time, subject to their demonstration of the required standards. All enterprises within our Region, no

matter their size, therefore have the opportunity to work with us to deliver services for the communities of Dumfries and Galloway.

• In addition to assisting local businesses to expand and grow, Enterprising DG will have a key role in assisting the Council in addressing the

financial challenges that it faces. We will do so by providing our services in an economic and efficient manner, therefore increasing the

financial contribution made to the Council by these services. This is not solely about front end cost efficiencies, we need to review

internal costs and overheads to ensure value for money and cost effectiveness for Enterprising DG and our Council. Our current estimate

in respect of this increased financial contribution is also included in our financial plan at Appendix 3.

• Therefore, to be successful, we will provide a range of services, to a number of customers, in partnership with many local businesses, and

look to develop commercial opportunities that both support our Council and benefit the wider economy of Dumfries and Galloway.

• In delivering the reshape of the Council, it was agreed that this ‘Enterprising Service’ would be delivered from within the Economy,

Environment and Infrastructure Directorate. In August 2015, the Head of Enterprising Services was appointed, with the clear remit to

deliver against this agenda. In delivering the Enterprising Service – Enterprising DG – the Head of Enterprising Services has developed a

vision to generate income to support priority front line services by:

“Building the local economy by developing and delivering a range of high quality, value for money entrepreneurial services, in

partnership with local small and medium sized enterprises.”

• To deliver this vision, Enterprising DG will require to be better and different from what we currently have – working with renewed pace

and increasing our ability to react to the market. This is recognised and acknowledged. At the same time, however, we must recognise

that we already have a proven service delivery and commercial track record, built up over a number of years, of successfully delivering a

number of these services. We are therefore in the fortunate position of enhancing and improving what we currently do, rather than

building something that we currently do not have.


• In delivering against this vision, each service development by Enterprising DG will therefore require to deliver against one or more of the

following principles:

• To generate a surplus, to be available for re-investment in the service or to support other priority front-line services;

• To maximise the utilisation of the workforce and other assets;

• To develop the skills of our workforce to enrich their jobs and allow us access to new markets;

• To develop a market that currently does not contribute to the economy of our Region;

• To maintain and build our SME community, through Enterprising DG leadership.

• In bringing forward strategic service development cases for Elected Member approval, we will ensure that we only seek approval for

developing our services where they meet one, or ideally more than one, of the above principles.


Services What do we currently do?

• We currently provide a range of services to and on behalf of our Council. These services include roads maintenance and improvement,

waste and recycling collection, vehicle and plant maintenance, catering, cleaning, and building maintenance. Further detail on each of

these services is included at Appendix 2.

• In addition to the provision of services to the Council, we also currently provide services to a number of other bodies, including Police

Scotland, NHS Dumfries and Galloway, Housing Associations, and Utilities. A listing of our external contracts is included at Appendix 4.

• In total, these services currently generate revenue of £13 million per annum. Later in this document we outline our aspirations for the

further growth and development of these services, which we anticipate will deliver 40% growth in this work in the next 3 years.

What could we do?

• The legal framework within which the Council operates continues to evolve. Our duty to secure Best Value, the repeal of the Compulsory

Competitive Tendering regime, our duty of community planning, together with our power to advance well-being, together create a new

legislative framework which gives us real flexibility to identify, organise and deliver the best services within our local communities. We

now have the freedom and authority to form partnerships and relationships with other local authorities, community planning partners,

the voluntary sector and, to a more limited extent, with the private sector also. Legal barriers to innovation have been removed, within

this framework of accountability and Best Value. We therefore have the necessary legal freedoms to pursue our policy intentions.

• Provision of service to external organisations should not however be undertaken simply for its own sake, and we must have due regard to

the balance of risk and reward when considering opportunities.

• Based on our historical practice, we can clearly demonstrate that our external service delivery has not simply been about revenue

generation; our practice to date demonstrates our desire to meet the social needs of our communities in a manner that generates a

surplus and contributes to the costs of providing services. An excellent example of this is our recent creation of a Social Enterprise Car

Wash, which provides young people with life challenges with real-life work experience.

• Notwithstanding the above, we are mindful of the importance of good governance in all that we do. We therefore propose that all

strategic developments made by Enterprising DG are underpinned by a costed business case, and assured by the Councils Section 95

officer. This process will ensure the continued safe decision making and governance, both of which are fundamental to the continued

protection of public resources.


• Some of the opportunities that have recently been available to us, or are currently available to us, include:

• Loreburn Housing Association - reactive repair and maintenance contract

• Trunk Road Maintenance and discrete scheme works

• Design and Build – Agnew Park Development

• External Vehicle Maintenance provision

Loreburn Housing Association – A key external service opportunity, involving a substantial element of our in house building and maintenance

staff and local SME’s in building trades and Gas Servicing. Developing the skills of the in house operatives, utilising mobile technology for

efficiency and performance and allowing appropriate access to our partnering subcontractors. Provision of local suppliers for materials and a

programme of trade’s apprenticeships, growing our own for future development. Resulting in a customer satisfaction of 99% for Loreburn

Housing Association.

Trunk Road Maintenance and Repairs – Working to Scotland Transerv, utilising predominately local subcontractors for the delivery of

maintenance and winter operations. Council operational staff supplement the delivery when operational ability permits from our own

Council Roads and during winter operations. Maintaining this partnership has allowed the opportunity under the Enterprising DG for local

contractors to obtain linkages to within a multimillion pound contract, within our ISO accreditation and providing training to achieve specific

qualifications, such as sector scheme approvals which would not be available to SME’s.

Design and Build – Agnew Park Development – Enterprising DG in partnership with other Council Services designed the new Agnew Park

pavilion. The project was managed by Enterprising DG building and maintenance staff with the majority of the building and construction

work being placed to locally based organisations from across Dumfries and Galloway.

External Vehicle Maintenance Provision – Provision of vehicle maintenance services to both local and national business. Maintaining vehicles

utilising our own Enterprising DG maintenance technicians but supplemented by local suppliers of parts and equipment and local garages to

supplement capacity. Developing the skills of the in house operative’s workshop staff, utilising mobile technology for efficiency and

performance and allowing appropriate access to our partnering garages to previously unavailable markets. Developing trades apprentices

and utilising Mobile technology to improve efficiency and performance servicing cars, vans buses to stretch limos together with our own

council fleet.


What should we do?

• Our Council’s entrepreneurial approach has seen it evolve from funding and delivering traditional support services to developing a

customer-focused approach that subsidises service delivery through appropriate income generation. As a result, there is currently a

spectrum of commercial activity across the Council.

• This currently ranges from taking a more business-like approach to community development activity (for example using Council grants to

lever additional funding) through to developing new services (for example property maintenance, MOT facilities, potential housing /

property development).

• The return on investments will be different across activities based on the nature of service, but this will be clearly reported and justified

as part of our strategic case for business development.

• Our summary financial plan for an Enterprising Service is included at Appendix 3. From reviewing this summary financial plan, the

following highlights should be noted:

• Our turnover will increase from just over £44 million in 2015/16 to over £49 million in 2018/19, an increase of 12%;

• Our turnover from Council contracts will remain relatively constant during this period, at £31 million;

• Our increased turnover between 2015/16 and 2018/19 will be provided from external contracts, representing an increase in external

income from just over £13 million in 2015/16 to just over £18 million in 2018/19, an increase of 38%;

• The bottom line financial contribution to the Council, used to support priority frontline services, will increase from £336k in 2015/16

to over £600k in 2018/19, an increase of 75%, in line with commitments already made to the Council;

• The anticipated value of work provided to local sub-contractors will increase from £16 million to £21 million.

Marketing Plan • Since embarking on its entrepreneurial journey, our Council has invested significantly in developing the capacity and capability to deliver

on its commercial ambitions. Enterprising DG values its involvement in regional and national networks, as well as the knowledge and

support we gain from collaboration with other public, private and voluntary and community sector organisations.

• An inclusive ‘centre of excellence’ will be developed by Enterprising DG that reflects the entrepreneurial leadership attributes required.

We will train Elected Members and staff on commercial thinking and develop the skills of all, which will be a key element of our success.

We are already working with Solace Enterprises, Association of Public Service Excellence, and private sector partners in this area.


How will we retain the business we have?

• In any service that currently delivers services to a value of £44 million, a key determinant of future success will be not only attracting and

delivering new business, but retaining the business that we currently have.

• As a local government body, we have a duty to secure Best Value; therefore services that Enterprising DG provide internally to the

Council require to demonstrate, on a regular basis, that they are being delivered in accordance with the Best Value regime. This requires

the Council to consider alternative models of delivery and, as required, to test this in the open market.

• To retain this business, Enterprising DG therefore have to demonstrate continuous improvement in our service delivery. We will further

develop our approach to this, which will include:

• Demonstrating continued efficiency through reducing costs;

• Comprehensively comparing our service delivery and cost with similar organisations / services, through a robust benchmarking

framework; and the application of a balanced scorecard approach;

• Reviewing our financial reporting requirements, and regularly reporting our financial results in a transparent way.

• We would wish to involve Elected Members, and senior commissioning officers in other services, in these developments to ensure that

throughout the Council there is a common understanding of not only the services that Enterprising DG delivers, but also the value that it

generates.

• An initial cycle of our work, which is in accordance with the Council’s business planning guidance, is shown below:


• Strategy: This will involve analysing our markets and service provision, and developing strategic cases for market and/or service

development. We expect Elected Members to be involved in this strategic element.

• Plan: Where, based on our strategy, we identify our desired outcomes, develop our business cases, set priorities, target, actions and

budgets. We expect Elected Members to have a scrutiny role in this activity, with the detailed assurance being provided by Officers.

• Do: Where we implement projects, programmes, and actions. During this stage we also gather information and monitor performance.

Elected Member involvement at this stage will be by exception.

• Review: At this stage we review our performance, financial outcomes, and risk. We will report this to Elected Members through a

Balanced Scorecard approach.

• Revise: Where we evaluate our priorities, targets, and outcomes, and consider the lessons learned.


How will we attract new business? Where will we attract new business from?

• Enterprising DG will have to proactively market its services both internally to our Council but also across our Region to maximise

opportunity, to develop business, and to support the local economy by maintaining local business within our region.

• Enterprising DG monitors contract opportunities across all business sectors including the NHS, other local authorities, private sector and

the South West Hub for availability of work that sits within the context of the Enterprising DG and that can support collaborative and

partnership working with local SME’s and/or other Councils in service delivery. This will further develop around the Enterprising centre of

excellence where opportunities can be developed across all council services to the benefit of our Council.

• As demonstrated in our financial plan, Enterprising DG will aim to increase the value of services it delivers to external customers. In doing

so we will, as a first step, require to retain the work that we already do for our external customers (as outlined elsewhere in this plan) and

that will require a focus and processes similar to that outlined above in respect of the retention of our internal business.

• The work that we currently do for external customers is typically obtained through a competitive tendering process, with contracts

advertised in accordance with EU Procurement Regulations. These tenders are typically let for a period of 3 or 4 years, and we therefore

require to re-tender to retain the work at these intervals.

• By closely monitoring the advertisement of relevant procurement contracts, Enterprising DG identify contracts which may be of interest

to us. These opportunities will typically fall into of three categories:

• New customers: where a new customer is seeking a service that we already provide to another organisation;

• New services: where a customer is seeking a service that we do not currently provide, but which is complementary to our current

service or can be delivered by using / expanding our established skills base;

• New markets: where a customer within a market that we do not currently operate in is seeking a service that we provide elsewhere.

• Through our established processes, we can identify which opportunities are within our areas of expertise, and commence the submission

of our response to the procurement tender. We would expect that Elected Members would wish to be closely involved in this process, in

for example determining what tenders we should pursue, our attitude to risk and reward, and ultimately the financial return required for

the Council in respect of these contracted services. We will continue to work with Elected Members on developing the processes to

support their important governance role in this respect.

• In addition to the above formal processes, through our continued customer engagement, we always seek to maximise the services that

we offer to our current customer base. This process involves ensuring that our customers fully understand the range of services that we

provide, and wherever possible providing additional services to our established customer base.


What do we need to do differently?

• Enterprising DG is about taking all we have done so far, and resetting our pace and focus through our clear vision. We will forward plan

to ensure Enterprising DG is prepared to deliver quality service provision, efficiencies, and increased income generation. Creating an

organisational and commercial culture that mobilises talent, enables people and provides a learning environment that will give people

the confidence to make the right decisions. By delivering the new Enterprising DG through our People, Performance Improvement and

Efficiencies principles we will drive down costs, maximising income, and become more innovative.

• Our whole Council needs to be more commercially focused. We will establish the ‘Enterprising Centre of Excellence’ and through this

centre will progress a programme of training and development, not only for Enterprising DG employees, but also other employees in

other Services and Directorates throughout the Council, and Elected Members. Our aim is for our whole organisation to behave in a

more commercially focused manner as is now required of local government, due to the funding, demographic and service pressures

which we face.

• Within Enterprising DG, the management team (as outlined at Appendix 1) will require to work across their functional boundaries – to be

successful each Manager will require to have an understanding of the services provided by their colleagues. The Head of Enterprising

Services will ensure this through a process of continued training and development for his management team.

Operational

Plan

How will services be delivered?

• The Enterprising DG extended Management Team and Enterprising Sub Committee will oversee the effective delivery and

implementation of the commercial plan. This will be supported by an annual operational and team plans, providing more specific detail

on commercial initiatives to be developed and implemented within each financial year.

• Our services will continue to be provided in accordance with our established processes, which include our quality management processes.

In respect of certain contracts, this includes International Organisation for Standardisation (ISO) certification; in other contracts, we

utilise our own bespoke quality management system based on ISO standards.

• We consider that the further development of our quality management systems to be one of our areas of focus; we will therefore report

our intentions in this area to Elected Members in due course.

How will we work with sub-contractors?

• In respect of our work with sub-contractors, there are two recent examples which highlight our partnership approach to working with

local businesses:


• Agnew Park: Enterprising DG Building and Maintenance Service have carried out the Design, build, and redevelopment of Agnew

Park Stranraer. Working closely with our colleagues in design services, economic regeneration and property services the project is

now complete and a new SME thriving in the new pavilion extension. Enterprising DG Building and Maintenance Service works

collaboratively with local trades within Dumfries and Galloway where possible to stimulate the local economic and allow local

business to be part of larger projects, which could potentially be out with their reach.

• The following contractors have successfully bid for works on the Agnew Park project to supplement the Enterprising DG Building and

Maintenance Service. The contractors were:

Border City Windows Bruce McGarva Joinery

Contract Flooring Curtis Moore

D Inglis & Sons David Hardie Engineering

Derek Mitchell Electrician Douglas Dairy Supplies

Gibson-Wight Ltd H Hollis

J&J Currie Ltd J&J Runcie Plasterer

James Scott & Son Ramsay Landworks Contracts

Smith & Curtis

WC in Fields

Based on our evaluation of the project, some 75% of the construction works and business was procured locally from within Dumfries

and Galloway. This does not include our own staff/resources used on the project, which would put our spend on the project local

well over 85%


• Loreburn Hall: Building and Maintenance Service is committed to supporting the local building trades within Dumfries and Galloway and engaging with the business community to ensure as much of the business as possible stays within Dumfries and Galloway whilst supporting our in house trades and helping to develop our apprentice programme. During the Loreburn Hall DGOne project local SME’s successfully tendered for works on the Loreburn hall project to supplement the staff and resources from within the Enterprising building and Maintenance team. The contractors were – Enterprising DG Building and Maintenance team, plus:

3b Construction

Bell Electrical Bruce McGarva Joinery

Chubb Fire Point

Galloway Carpets Gibson Blacksmiths

Jones & Howat Lee Glover Roofing

Les Martin Plastering McKay Flooring

Mick Adams Tiling Ramsay Landworks

Ricky Lockhart Decorating Richardson & Starling

S&D Plumbing Soccarena

Based on our evaluation of the project, some 84% of the construction works and business was procured locally from within Dumfries and Galloway.

Governance – new sub committee

• In accordance with the reshaping of the Council, the committee structure is also undergoing a period of change. This has recent ly been

the subject of a report to Full Council, where a Scheme of Administration and Delegation to Committees was approved.


• This Scheme has established an ‘Enterprising Services Sub-Committee’, with a remit of “consideration of matters relative to the

development and business management of all services within Enterprising Services, including Trading Operations, and providing an

appropriate level of scrutiny and consideration of matters relative to the Service’s tendering for contract works and external trading.”

• This Sub-Committee will effectively operate as the ‘Board’ for Enterprising DG, and we will work with Elected Members in the coming

months to ensure an effective partnership between Members and Officers.

• The Enterprising Services Sub-Committee will oversee the Commercial Plan. In addition, other Service Committees will be encouraged to

have a role in regularly reviewing and scrutinising progress and delivery. At an officer level the Enterprising DG Management Team will

monitor the progress of the commercial development plan and report regularly to the Enterprising Services Sub Committee on progress.

The Commercial Development Plan complies with our council’s existing corporate governance arrangements including Financial Standing

Orders.

• It is important that our Council is risk aware, rather than risk adverse, taking an informed view of potential risks and deciding on the

extent to which it wishes to tolerate, mitigate or avoid them. The Enterprising DG management team will maintain a strategic and

project-level risk register that will be reported to the Enterprising Service Sub Committee.

• Details of delegation from Full Council to the Enterprising Services Sub Committee are provided at Appendix 6.

Management

Structure

• A revised management structure for the successful delivery of this business plan has been developed. This structure is outlined at

Appendix 1.

• This structure has been developed in accordance with the reshaping of the Council. The Head of Enterprising Services is already in post.

The other posts will be matched / recruited to over the next number of weeks, and we expect the revised structure to be fully operational

(subject to any external recruitment that may be necessary) by July 2016. In developing this structure, the Head of Enterprising Services

was mindful of the need to:

• Develop a structure that is substantially different from that which has existed previously;

• Be as efficient and effective as possible, ensuring that services provided to the Council clearly demonstrate our duty of Best Value;

• Develop a structure that provides a platform to do business differently – for example by bringing roads and waste services under

common management;

• Provides capacity to develop services to be provided to other organisations, based on our successful track record of providing those

services to our current customer base.


Financial Plan • In 2015/16, our turnover was in excess of £44 million; by delivering our intentions in this area we are confident that by 2018/19, our

turnover will rise to over £49 million. Against the backdrop of decreasing public sector finances, this represents an increase of over £5

million, or 12%, in this 3 year period. Our contribution to the Council over this period also increases.

• Over this period, these financial results allow us to:

• Sustain a workforce of 1,400;

• Invest in the next generation of employees, by recruiting and retaining young people on apprenticeships;

• Make a significant contribution to the local economy, by working with some 456 sub-contractors and anticipating an increase of the

amount of work sub-contracted from £17 million to £21 million over this 3 year period;

• Allocate surplus profit, over and above that already committed to the Council, for reinvestment in Enterprising DG and/or supporting

other priority frontline services


Appendix 1

Director Economy , Env ironment and Infrastructure

Alistair M Speedie

Ronnie Dempster

Head of Enterprising Services

Enterprising DG

Commercial Manager

Catering and Facility

Operations

Roads Maintenance and

Waste Services Manager

Building Maintenance and

Construction Manager

Vehicle and Plant Services

Manager

Commercial Business

Development Manager

Building Cleaning

Caretakers

Catering

Stores and Logistics

PAT testing

Print Unit

Roads Maintenance

Winter Service Operations/delivery

Emergency Response Delivery

Street lighting operations

Waste Collection Service Operations

Building Construction

Building Maintenance & refurbishment

Responsive Repairs

Term maintenance

Vehicle maintenance operations

MOT preparation

Radio Maintenance

O-Licence

External fleet maintenance

Business and market development

Commercial business strategy

Branding and marketing

Commercial/technology integration

Quality management

Customer engagement/satisfaction

Business Performance and administration

Commercial Risk Management


Appendix 2

Facilities Services – Current Service Provision

Catering • School Catering: School Meals (primary and secondary), Meals on Wheels & Internal hospitality within schools

• Emergency Catering: Emergency response to communities & schools in the event of minor & major incidents including inclement weather

conditions i.e. flooding/snow

• Commercial Catering: External Hospitality, Civic Events

Cleaning • Building Cleaning: Schools & Office Cleaning, Window Cleaning, & Contracts.

• Commercial Cleaning: Provides general and commercial cleaning to private customers i.e. DGHP/Loreburn

• Emergency Cleaning: Emergency cleaning is provided throughout Dumfries and Galloway and can include Nora Virus deep cleans, post

flooding cleaning.

Appliance

Testing &

Maintenance

• Portable Appliance Testing (PAT), Small Equipment Repairs, Hygiene Contract

Garroch

Logistics

• Central buying hub of supplies for Enterprising DG, contract management, provides logistics support in emergency situations

Service

Statistics

• Facilities Services cover a large rural area (6,446km² or 2,490miles²) and has a staffing complement of 957 posts broken down to 567

Cleaning posts , 365 Catering posts, 12 Garroch Logistics, 10 Management Team, 3 Support Staff

• Catering is provided in 102 primary schools, 16 secondary schools and 1 special school We produce approx. 2,000,000 school meals per

year, provide 22,424 meals on wheels, and provide function catering for more than 60,000 customers


• Cleaning is provided in 109 schools, 231 buildings (council and non-council) throughout our region, and cleans windows in 256 council

premises throughout Dumfries and Galloway

• Appliance Testing & Maintenance conducts 65,000 Portable Appliance Tests throughout Dumfries and Galloway annually across 386

council properties; carries out 800 appliance repairs.

• Garroch Logistics conduct over 4000+ annual deliveries to all schools as well as various ad-hoc council buildings; 100k mile covered pa.,

with a current value of £2.1 million.

• Centralised 160 pallet holding commercial hub, with a live stock holding of £100k at all times

• Pecos Order lines in excess of 15000 per annum.

• Phone Calls received- over 1600 per month.

• Local spend in excess off £250k and growing with our Provenance procurement culture.


Roads Service – Current Service Provision

Council Road

Network

Maintenance

Operations

Maintenance activities including:

• Winter service

• Surfacing

• Surface Dressing

• Grass cutting

• Verge Maintenance

• Patching

• Drainage & Gully emptying

• Road Markings

• Signing, Bollards & Bus Shelters

• 24/7 Emergency Response

• Flood Prevention, cleansing & Inspection

• Street lighting

Council Road

Network Capital

Operations

Site specific road improvements including

• Resurfacing

• Surface Dressing

• Footways

• Drainage

• Car Parks

Trunk Road

Commercial

Contract

Provision of full range of road maintenance activities for Scotland Transerv on the South West Scotland Trunk Road contract. Activities

• Major Surfacing works

• Road Improvements & Widening

• 24/7 Emergency Response


• Patching

• Drainage

• Verge Marker Replacement

• Grass Cutting & Verge Maintenance

• Winter Service

• Street lighting

• Signing & Lining

Public Utility

Reinstatement

Contract

Reinstatement works for national utility companies across Dumfries & Galloway

Service

Statistics

• Depots – 5 across the region

• Staff compliment - 97 manual operatives, 45 technical staff

• Length of road network maintained - 4,177km

• Provision of Capital Schemes 2015/16 - £6.3 million.

• Responsible for 22304 gullies, emptying 14393 annually

• Length of road surface dressed 2015/16 - 1,017,945sqm

• No of utility reinstatements carried out last year - 1723

• No of carriageway defects repairs carried out last year 25936

• 81% carriageway defects repaired within timescales (target 70%)


Waste Collection – Current Service Provision

Domestic

Waste and

Recycling

Collection

• Household waste collections

• Household Kerbside Food Collections

• Household Kerbside Dry Recyclate Collections

• Bulky and white goods collections

• Assisted pull out service of wheeled bins, food caddies and recycling boxes to elderly and infirm customers

Commercial

Waste and

Recycling

Collection

• Commercial waste collections

• Commercial recycling collections

• Bulky and white goods collections

• Commercial Skip Hire (Annandale & Eskdale Only)

• Servicing of Neighbourhood Services and Roads Services Skips (Annandale & Eskdale)

Service

Statistics

• Waste Collection Services cover a large rural area (6,446km² or 2,490miles²) and has a total of 110 posts which are broken down as

follows: 92 Waste Collection Staff; 11 Supervisory Staff; 7 Managers (Waste, Grounds, Burials and Street Cleaning)

• Domestic Waste Collection is provided to

• 73895 households across Dumfries and Galloway

• 15238 households in Wigtown currently receive a kerbside recycling service

• 737 assisted pull outs

• 1100 bulky uplifts on average per annum

• Commercial Waste Collection is provided to

• 2047 commercial customers

• 760 commercial recycling customers (130 of which are council buildings)

• Skip Hire service is provided in Annandale & Eskdale Area only.


Building and Maintenance Services – Current Service Provision

Current Service

Provision

• Council Term Contracts: Provision of Multi Trade repairs and maintenance service, this includes a 24hr 365 day emergency repairs cover.

• Registered Social Landlords: Working in partnership with Loreburn Housing, Irvine Housing, Devorgilla and Key housing

• Planned Preventative Maintenance: To ensure the fabric of all council properties are maintained to a reasonable standard, and are

secure, wind and water tight.

• Homeless Service Maintenance Provision: To ensure the Council’s homeless properties are maintained and compliant with all current

safety, gas and electrical regulations.

• Other Government Agencies: Repairs and maintenance service for Police Scotland, Scottish Fire and Rescue and NHS Scotland.

• Capital Spend Projects: Working with other departments within the council to carry out capital projects including refurbishment,

extension and new build projects to meet the many user’s needs.

• Zero Waste Projects: Project Management of all construction works to the Zero Waste projects.

• External Clients Capital Projects: The service is continually growing its external client base, including RSL’s, NHS Scotland, Church of

Scotland, Forestry Commission Scotland and Canine Rescue Centre D&G to date.

• Community Projects: Working with community ground to facilitate the local needs of the people of Dumfries and Galloway.

Service

Statistics

• Building and Maintenance Services cover a large rural area (6,446km² or 2,490miles²) and has a management structure of 9 plus 8 Site Managers (Construction) 29 craft workers and 11 craft apprentices (Maintenance). Maintenance is provided to: • 102 primary schools, 16 secondary schools and 1 special school

• 256 council properties

• A number of social landlords across the region to some 3500 properties

• Our Service is provided on a 365 days 24hrs basis.

• Capital works is provided to Dumfries and Galloway Council and other government bodies including Police Scotland, Scotland Fire &

Rescue, NHS Dumfries & Galloway and Forestry Commission Scotland.

• Other capital spend project for external private clients, either competitively tendered or negotiated i.e. Canine Rescue Centre D&G

Planned Maintenance is provided to:

• Dumfries and Galloway Council to ensure all council properties are maintained to a standard, and are secure, wind and water tight.

• Currently four SLA’s including Working in partnership with Loreburn Housing, Irvine Housing, Devorgilla and Key Housing.


Vehicle and Plant Maintenance – Current Service Provision

Current Service

Provision

• Fleet Maintenance

• Scheduled and non-scheduled works

• Specialist maintenance RCV’s, Sweeper, Gritters etc.

• Grounds & Plant Maintenance

• Warranty Repairs

• MOT preparation & presentation

• Commercial brake testing

• Steam cleaning

• 24/7 callout service

• Car valeting

• Commercial and light vehicle diagnostic fault finding and car and light van pass thru technology

• MOT Testing (Coming Soon)

Service

Statistics

• Vehicle & Plant Maintenance Service covers a large rural area (6,446km² or 2,490miles²) with just 24 technical staff

• 5 Workshops

• 10 Service Vehicles

• Maintain 1465 Internal assets (Across all Council Departments)

• Average vehicle age 5 years 7 months

• Maintain 329 External assets

• External customer base of 25

Maintenance Figures 2015/16

• 2592 Safety Inspections Completed

• 1250 Services Completed

• 724 MOT’s Presented

• 1278 Vehicle Condition Inspection Completed


• MOT pass rate 97% (National average 85%)

• 1383 Tyre jobs logged

• 4127 Unscheduled Workshop visits (Defects/Breakdowns)

• 4706 Electronic Purchase orders raised


Appendix 3

Summary Financial Plan

2015/16 Final

Outturn

2016/17 Budgeted Outturn



External Income 13,113,377 14,541,943 16,162,720 18,071,859

Sub-Contracted 5,910,086 6,950,480 8,117,011 9,495,962 Internal Income 30,901,172 30,746,879 30,939,150 31,116,124

Sub-Contracted 11,042,072 10,616,884 10,717,827 10,799,041

Net Contribution 344,605 360,000 503,000 602,000


Appendix 4

Listing of Contracts

Organisation Services Provided

• Police Scotland • Building Maintenance

• Scottish Fire and Rescue • Building Maintenance • NHS Dumfries and Galloway • Building Maintenance and Construction • Scotland Transerv • Roads Maintenance and Construction

• Loreburn Housing Association • Reactive repairs, maintenance and gas services • Irvine Housing Association • Reactive repairs, maintenance and gas services

• BT Fleet • Vehicle maintenance and repair • Dumfries and Galloway Housing Partnership • Building Maintenance • The AA • Vehicle maintenance

• T.O.M. Fleet Supplies • Vehicle maintenance • Scottish Gas Networks • Vehicle maintenance

• Scottish Water • Vehicle maintenance • Scottish Power • Vehicle maintenance


Appendix 5

Sample Listing of Sub-contractors/SME’s (Enterprising DG operates with some 460 subcontractors - in 2015/16, £17million was spent on sub-contractors)

Organisation

JAMES LUPTON LTD, MEADOW VIEW, 14C SCROGGIE MEADOW T MCKIE LTD, DEANS PARK, IRONGRAY ROAD LUCE BAY PLANT HIRE, DROUGHDUIL, DUNRAGIT

BORDER CIVILS & UTILITIES LTD, UNIT 2, IRONGRAY HOUSE DAVID HARDIE ENGINEERING LIMITED, POPLAR, BRASSWELL

CHALMERS CONSTRUCTION LTD, DUMFRIES INDUSTRIAL ESTATE, IRONGRAY ROAD JAMES G FINDLAY LTD, 1 OLD IRONGRAY ROAD, DUMFRIES SCOTT YOUNG & SONS, WESTACRES, LOCKERBIE

OAKBANK SERVICES, MOSSPARK, ANNAN ROAD LOTUS ELECTRICAL SERVICES LTD, THE COPPICE, BEESWING

JMC Contracts (Mr J Currie), Towerhill Cottage, Crawick John Jardine Plant Hire, Fairgirth Farm, Sandyhills

DONALD PEACOCK PLANT HIRE AND CONTRACTOR, WYNCUM, BRIDGE OF DEE GTR CONTRACTS LTD, TERRAUGHTIE FARM, DUMFRIES SOLWAY PLANT HIRE LTD, HORSECROOK, PORT ROAD

H Thomson & Sons, Crews, Glenluce WILSON ELECTRICAL CONTRACTOR, HALLHILL FARM, IRONGRAY

DAVID TOPPING LTD, 1 CHURCH GROVE, LESWALT T& W COCHRANE, SCENIC VIEWS, 1 EAST BALSCALLOCH FARM A M D CONTRACT SERVICES, NEWTON ROAD, LOCHSIDE

HODDAM CONTRACTING C, HIGH STREET, ECCLEFECHAN Hyslop & Marshall, Ingliston, NewtonStewart Road

GRAHAM ROSS GROUNDWORKS LTD, 30 THORN STREET, LOCHANS COLIN DEMPSTER, OLD STATION HOUSE, MOSSBAND JOHN SMITH ELECTRICA, GREENHILL, CUMMERTREES

Torbet Plant Hire Ltd, Whitecrook, Dunragit


Appendix 6

Dumfries and Galloway Council agreed on the 24th March 2016 :-

That an Enterprising Sub Committee of the Economy, Environment and Infrastructure Committee would be established which would oversee trading

operations.

The Scheme of Administration and Delegation to Committees - Enterprising Services Sub-Committee

Section 6.4.2 Enterprising Services Sub-Committee

Delegation

The remit is consideration of matters relative to the development and business management of all services within Enterprising Services, including Trading

Operations, and providing an appropriate level of scrutiny and consideration of matters relative to the Service’s tendering for contract works and external

trading.

EEI - Enterprising

Building Construction and Maintenance Services

Fleet Management

Vehicle Maintenance

Waste Collection

Facilities Management

Catering

Logistics

Roads Maintenance

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