Transport & Vehicles Savings Project High Level Findings & Recommendations Brian Cotter October 2014
Agenda • Scope of review • Total cost of transport • High level findings and recommendations – Fleet – Social Services – Education – Community and Bus Service transport – Staff Travel – Managing taxis / minibuses more effectively • Integrated Transport Unit • Regional collaboration • Savings potential • Next steps • Questions
Reminder: Scope of the review ‘Transport with wheels’ • Fleet and associated spend across the Council • Passenger Transport activities and associated spend – Education SEN & Mainstream for schools and colleges – Social Care – Public and Community Transport • Staff Travel – Pool cars / own cars – Other forms of transport
The cost of transport Directorate 12 / 13 Actual 13 / 14 Budget Development Services £ 5,208,797 £ 5,784,461 Lifelong Learning £ 1,447,352 £ 1,525,598 Resources £ 160,459 £ 176,111 Social Services £ 629,181 £ 687,133 Visible Services & Housing £ 3,491,905 £ 3,481,512 Total £ 10,937,695 £ 11,654,815
Fleet Services • Key areas for improvement – Operational IT • Tranman functionality needs to be fully rolled out and its use enforced • TrackYou must be rolled out effectively as a performance management tool – Customer Service and Interaction • Customer feedback is unequivocal, the service must become more responsive to the needs of its customer in terms of cost, timeliness, vehicle down time, progress communication – General management of site and personnel
Fleet Services • Key areas for improvement – cont’d – Accident reporting and management – Market the MOT facility – Management of plant and plant records – BSSG claim • Had not previously been claimed – Central collation of driver records
Fleet Services • Improvements / developments will allow – Visibility of workshop productivity and online progress – Increased productivity from workshop – Increased confidence from users and consequent reduction in ‘insurance’ hires – Reduction of owned fleet and hire fleet through robust challenge from the available reports – Increased reputation and ability to attract further business – Best result from good basic set up, APSE top quartile performance achievable • Available efficiencies in this area are in the region of £993,000 p.a. (mostly vehicle and associated staff reductions)
Social Services • Key areas for improvement – In the main these are: • Management and procurement of taxis and minibuses (this is covered in the general taxi / minibus section further on and the Integrated Transport unit section) • Staff Travel – the introduction of pool cars and the best use of existing vehicle resources (covered in subsequent section) – Meals on wheels • Vehicles (8 in total) could be used as pool cars after 1.30pm daily • MOW clients, list should be reviewed for eligibility
Education Mainstream and College • Key areas for improvement: – Introduction of electronic tendering process – Introduction of auctioning – Widescale marketing activity – To be introduced at the earliest opportunity • £212,500 eventual saving from current spend – Will require contract break clause to be instigated on some contracts • Negotiate discount with Arriva Trains Wales to Bridgend College c.£20k saving potential
Community & Bus Service Transport • General commentary – Supported bus services budget has been reduced dramatically • There are no nice to haves, easy to remove services, they are all difficult political decisions – CT is increasingly supporting / taking the place of Supported bus service, this will continue – CT passenger records should be understood in more detail • Real cross section or educated minority? – IF CT is providing broad service, should be put on sustainable financial footing and will potentially need to increase in size to provide more targeted and imaginative solutions than traditional supported bus contracts • Similarly supported bus contracts need to demonstrate value for money and be recognisable as candidates for transferral to CT services – Enforcement of production of passenger data will be important
Staff Travel • General commentary – Staff mileage rates reduced to 45p this FY (should bring £250,000 reduction BUT may not have quite this effect) – 1.25m miles £750,000 cost plus vehicle hires and public transport – 8.6% mileage overclaim on random audit – 2% >500 miles p.m. – 65% < 100 miles p.m. • Opportunities for improvement – Introduce pool cars, gradually over time moving to optimal number of pool cars (change will not happen overnight). Saving of c.23p.p.m. if managed well – Introduce electronic means of claiming where postcodes are required and mileages are automatically worked out – Introduce guidelines for which transport type to use when – PTU to manage process and have intervention authority – c.£88,550 (over and above £250,000) savings available
Managing taxis and minibuses more effectively • General commentary / findings – There are many areas / teams contracting taxis and minibuses, biggest and best current processes are in ALN – The Council would benefit from consistent management and procurement routines and this would sit best in a PTU – CJ Travel – day centres, ALN, mainstream, private day centres, LAC, community support etc. etc. – ALN benchmark is relatively high – ALN school amalgamation in November is a key date – Social Care benchmark very difficult to understand with disparate records – All processes suggest overspend across the Council
Managing taxis and minibuses more effectively • Opportunities for improvement – Set up one taxi / minibus supply framework • Marketed widely and vigorously • For use across the whole of the Council • With the ability to manage service requirements of all • Electronic and with the use of reverse auctioning • Removing price and quality award criterion – acceptance of detailed specification and then compete on price only – Retender ALL existing contracts through this framework • Allowing time for new school arrangements to bed in • Utilising contract break clause to restart contracts • £176,400 saving available
Integrating Transport Management • Opportunities for improvement – Organisationally dysfunctional in respect of transport • Managed in silos • Differing processes – Licensing Manager particular concern • Different procurement routines and no overview of available resources – Further integration is recommended • Bringing all transport together, with ‘teeth’ and strong leadership • Taking ownership across the board and more importantly owning the overview of all resources • Procurement, processes (incl. safeguarding in respect of external suppliers) and performance management can all be improved and standardised
Integrating Transport Management • Integrated transport models – Passenger Transport Unit (PTU) • All passenger transport activity and staff mileage managed in one place – Integrated Transport Unit (ITU) • PTU plus fleet management and maintenance • Recommend as a minimum set up of a PTU – Council to evaluate the further benefits of an ITU once PTU arrangements are bedded in AND various fleet management and maintenance recommendations are completed
Regional Collaboration • Williams Commission recommendations have been made and are subject to further consultation and debate • Concentrate on making own transport set up excellent and be ready for future discussions
Savings Potential • We have suggested that all these recommendations will require 2 to 3 years to: – Implement – Bed in – Become sustainable
Savings Potential Category 2016 / 17 Fleet £ 590,000 Existing Plans Bus Services £ 90,000 Other £ 10,000 Additional Passenger Transport £ 408,620 Plans Fleet £ 403,004 Staff travel £ 88,550 Total £ 1,590,174
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