The Mayor received the call-in report of the Overview and Scrutiny Committee in respect of the Cabinet Decision taken on Wednesday 26 September 2018.

Following consideration of the report he reaffirmed his original decision.

Councillor Abdal Ullah, Chair of the Overview and Scrutiny Committee (OSC), presented the Committee’s reference back to the Mayor on his decision taken at Cabinet on Wednesday 26 September 2018. He highlighted the Committee’s key concerns as referenced in the report including;

·         Whether the service had had the opportunity to seek improvements under the current model

·         That a business plan for the next two years could be developed and a new review take place at that time.

·         Concerns over long term costs.

The Mayor, considered the points raised. He noted that the proposed service provider was already delivering a good service in 18 London Boroughs and that there had been extensive discussion on the proposals. He then reaffirmed his original decision.

·                     The Mayor in Cabinet’s decision, published on 28 September 2018, had agreed to Support awarding a contract to Medequip Assistive Technology Ltd (Medequip) for the Community Equipment Service via a call-off from the framework agreement procured by Hammersmith & Fulham, for four years, from 1st April 2019 to 31st March 2023, with an option to extend for a further two years.  Which would enable delivery of the savings target for Community Equipment Service of £308,000 for 2019/20 as agreed by the Cabinet in the MTFS plan;

·                     The early surrender of the lease on the Yeo St premises (12 years unexpired) would result in the landlord paying the Council an estimated £900,000 as a surrender premium.  This would be a one-off payment back to the Council, and in part be utilised to cover the one-off moving and setup costs;

·                     The alternative course of action proposed in the call-in was that the Decision to outsource the Community Equipment Service to Medequip Assistive Technology Ltd via the London Community Equipment Consortium framework is withdrawn.  Then Officers to be instructed to draw up a business plan to improve the service further and secure better Value for Money over the next two years, when the service should then be reviewed;

·                     Discussions should be initiated with the local NHS to determine the future level of funding it will provide for community equipment

·                     Full details of the budget for Community Equipment Service, Telecare Alarms and Assistive Technology, and the external consultant’s report (underpinning the “due diligence” work in relation to this proposal) are published;

·                     There Call In had referenced concerns over outsourced services failing to maintain or improve the quality of service that residents had received in the past.  Which apparently had included persistent problems with some private agencies that had taken over Homecare, following the decision to close the award-winning in-house Homecare Service in 2011;

·                     In accordance with the Labour Local Government Trade Union Principles, an opportunity should be given to in-house services proven not to be delivering value for money to make the required improvements to avoid costly tendering and outsourcing procedures. The Community Equipment Service had apparently not been given this opportunity with three years’ worth of uncertainty and several vacant staff posts. However, despite this uncertainty, Community Equipment Service staff had remained committed to their service users and the delivery of a good service.  In response to this point the Committee queried whether the Labour Local Government Trade Union Principles were relevant to the Council and a cross-party committee. However, the Committee  ...  view the full minutes text for item 3

It was noted that the report had originally been published as exempt but was now unrestricted.

DECISION

1.    To support awarding a contract to Medequip for the Community Equipment Service via a call-off from the framework agreement procured by Hammersmith & Fulham, for four years, from 1st April 2019 to 31st March 2023. The contract will have an option to extend for a further two years which will give the Council and the CCG further service stability. The estimated value is circa £6.1 million over the 4 year contract period and circa £9.3 million over 6 years (if the extension was utilised).

2.    To delegate award of the outsourcing contract and further extension to the Corporate Director, Health, Adults & Community.

3.    To note the recommendation will enable delivery of the savings target for CES of £308,000 for 2019/20 as agreed by the Cabinet in the MTFS plan.

4.    To note the early surrender of the lease on the Yeo St premises (12 years unexpired) would result in the landlord paying the Council an estimated £900,000 as a surrender premium.  This would be a one-off payment back to the Council, and in part be utilised to cover the one-off moving and setup costs.

5.    To authorise the surrender of the lease on the Yeo St premises and delegate authority to the Corporate Director, Place to agree the terms.

Action by:

CORPORATE DIRECTOR, HEALTH, ADULTS AND COMMUNITY (D. RADLEY)

(Interim Divisional Director, Adult Social Care (D. Jones)

Councillor Denise Jones, Cabinet Member for Adults, Health and Wellbeing, introduced the report. She noted that the report had originally been published as exempt but was now unrestricted. She took Members through the benefits of the services to those who needed support to maximise their independence. She explained that the proposals were to integrate with 18 other boroughs in order to provide a better to service users and that there were savings for the Council as well.

The Mayor noted the pre-decision scrutiny questions and officer responses, he agreed the recommendations set out on the basis that this proposal would provide both a saving to the Council and also an improved service to residents.

RESOLVED

1.    To support awarding a contract to Medequip for the Community Equipment Service via a call-off from the framework agreement procured by Hammersmith & Fulham, for four years, from 1st April 2019 to 31st March 2023. The contract will have an option to extend for a further two years which will give the Council and the CCG further service stability. The estimated value is circa £6.1 million over the 4 year contract period and circa £9.3 million over 6 years (if the extension was utilised).

2.    To delegate award of the outsourcing contract and further extension to the Corporate Director, Health, Adults & Community.

3.    To note the recommendation will enable delivery of the savings target for CES of £308,000 for 2019/20 as agreed by the Cabinet in the MTFS plan.

4.    To note the early surrender of the lease on the Yeo St premises (12 years unexpired) would result in the landlord paying the Council an estimated £900,000 as a surrender premium.  This would be a one-off payment back to the Council, and in part be utilised to cover the one-off moving and setup costs.

5.    To authorise the surrender of the lease on the Yeo St premises and delegate authority to the Corporate Director, Place to agree the terms.