Agenda item

The Committee received a report and presentation providing an overview of contractual performance and wider development of the Thames Valley Transactional Services Public Private Sector Partnership for the period between April to September 2016.

John Wybrant and Peter Schriewersmann, Key Account Directors at arvato, addressed the Committee and summarised the key aspects of the half year review for year 5 of the contract.  Revenue and Benefits had progressed well with collections of Council Tax and Business Rates on course to deliver another year on year improvement.  Transactional Payroll had been operational on the agresso platform since the end of the reporting period.  The transfer had presented a number of challenges, however, it was anticipated that a number of benefits would be realised in 2017.  It was also noted that the outsourced service portfolio included a new element of Cyber Security.  IT services provided to September included 460 new iGels and the fit out of infrastructure and devices at The Curve ready for opening.

There was continued growth of arvato in the Slough Head Office with a range of customers such as BMW, Zara.com, Renault and Telefonica in addition to the Council.  The success of arvato’s public sector partnerships had been recognised by being shortlisted for three Global Sourcing Association Awards and the Council and arvato had been named as a finalist in the coveted LGC awards in the Partnership of the Year category.

Operational performance to the end of September was reviewed and Members noted that Business Rates collection for the period was 2.35% higher than the previous year at 57.35% and Council Tax collection was 57.67% which was an increase of 1%.  Asked about the current position, it was reported that Business Rates collection was ahead of the 91% target and on course to meet the annual target of 97%.  A total of £102m was of Business Rates was due to be collected in 2016/17 compared to £92m at the start of the contract.  The approach to debt collection was discussed and the Committee was informed that there were six Council Tax cases where a sum in excess of £100,000 was owed.  A Member requested further information outside of the meeting, noting that proceedings had begun to recover these debts.  More generally, the Committee was reassured that performance on debt recovery had improved markedly since the beginning of the contract with Council Tax collection rising from 94.8% to 97%.

The progress made in relation to the Apprenticeship Commitment was considered and it was noted that the scheme was ahead of target with 46 apprentice positions filled in the past five years against a target of 36.  Arvato had been listed in the Top 100 Companies for delivering Apprenticeship Schemes and it was agreed that an article and video on this would be circulated to Committee Members.  Following a request, details relating to apprenticeship placements, i.e. the specific business areas within arvato, would also be sent to the Committee.

Members discussed a wide range of issues including data capture, the CRM system, the disposal of old IT equipment and the value for money of the contract.  A query was raised about whether payments could still be made over the telephone, which Members considered particularly important for elderly and vulnerable people.  It was responded that telephone payments should still be able to be made and any such issues should be looked into.  In relation to customer service performance and ‘Front of House’ issues, Members asked why there had been a reduction in the percentage of customers seen within a 30 minute time period given that there was a reduction in the total number of customers seen in that quarter compared to the same time period for the previous year.  It was agreed that an explanation and further information would be provided to the Committee.

At the conclusion of the discussion, the Committee welcomed the progress that was being made and the report was noted.

Resolved –  That details of arvato’s performance for the period April 2016 to September 2016 be noted.