Recommendation

Agree?

Comment

1. That the Oxford Direct Services companies should be encouraged to promote their corporate values (which should reflect those of the Council).  The companies should also mention that they are social enterprises (if applicable).

Yes

ODS management are working on a mission and values statement in partnership with the staff and the trade unions. These will be discussed with the Board and with Scrutiny and will form the touchstone of how ODS  operates

2. The Council agrees some social value metrics with the Oxford Direct Services Companies and includes these within a balanced scorecard that is regularly monitored by the Council. These could include measures around local employment opportunities, for example.

Yes

The balanced scorecard will be informed by our mission and values so that everything points back to these. The table on page 50 of the Business Plan is a work in progress to allow for the mission and values to be reflected in the metrics

3. That the presentation of net margins as well as gross margins would be helpful in future reports to the Shareholder.

Yes

The plan will be amended accordingly

4. That a summary of other authorities’ LATCos, the services they provide and their success or failure would provide a useful picture of the landscape and help to inform whether other Council services should be transferred to the  companies in future.

Yes

This will depend on whether the data can be obtained. ODS management will contact Grant Thornton who work with a number of LATCos and understand the details of the landscape

5. That as the companies develop they should do so in a way that does not prejudice the future of smaller local companies or stifle the local economy, and in fact serves to do the opposite.

Yes

Our strategy is geared towards larger works so we are likely to be operating in a different market to smaller local companies.

6. That it would be helpful for a more detailed turnover analysis to be undertaken within each of the four key sectors in order to identify risks, such as those parts of the business that are reliant on a small number of customers.

Yes

As part of the evolution of the commercial arm of the company we will be undertaking more market analysis to further inform our understanding of the profitability and potential of our various service lines

7. That consideration should be given in future to the distribution of a proportion of company profits to community projects or organisations as a tax efficient means of returning value to the city and the Council.

Yes

This is another opportunity to return increased value to the Council and the community and we will review the scope for doing this during 18/19

8. That measures of additional financial returns to the Council should distinguish between value created through efficiency savings and new revenues.

Yes

The efficiency savings are in Building Services. The other 3 main service lines (motor transport, highways & engineering and commercial waste) are all about growth. The additional £500k per annum by 21/22 is expressed as 'value' because it is a combination of profit and efficiency. Estimates of efficiency and growth are included under each service line but these cannot be predicted precisely.  The focus will be on achieving £500k per annum as a minimum through a combination of efforts.