Issue - meetings

To consider recommendations from the Executive to in respect of the renewal of the Optalis Contract.

RECOMMENDATION The Executive recommends Council to:

1)       approve the attached procurement business case to renew the contract to Optalis;

2)       delegate authority to the Director of Adult Services, in consultation with the Lead Member for Adult Services to:

a)      approve and complete the contract with Optalis for £7.3mil – 2022-23; and

b)      undertake all activities required to complete the joint ownership arrangements between RBWM and the Council as set out under the heading ‘Future Arrangements’ below.

3)        delegate jointly to the Director of Adult Services and the Director of Resources and Assets authority to add to and remove services within Optalis during the term of the contract provided that in each case, up to the total value of £500k:

a)    the budget for the costs of the services has already been approved as part of the agreed Council Budget;

b)    the business case has been approved by both Directors;

c)     the Executive Member with responsibility for Adult Services and the Executive Member with responsibility for Finance have been consulted.

4)       note the shareholders agreement.

Charles Margetts left the meeting during the discussion of this item and did not participate in discussions or the vote.

The Council considered a report regarding the Optalis Contract Renewal.

It was proposed by Phil Cunnington and seconded by David Hare that the recommendations set out within the report be agreed.

Phil Cunnington commented that Optalis had evolved into a joint organisation in conjunction with the Royal Borough of Windsor and Maidenhead to provide adult care services across the two areas and to provide as many of the corporate and operational costs as possible so as to provide value for money.  Whilst the objectives of the authorities remained the same, the construct of Optalis was unfavourable to the Council.  It was necessary to reset the strategic focus of Optalis to ensure quality of services provided to Wokingham residents as opposed to growth.  The Board structure had been slimmed down to allow quicker decision making.  The Lead Members for Adult Services and the Directors of Adult Services from the two authorities would be Board members, allowing direct operational control and the setting of objectives to suit shareholders and residents.  Services in Wokingham would be run independently from RBWM, giving more flexibility and independence for the Council.

David Hare praised the work of Optalis, and in particular, David Birch, Chief Executive of Optalis, and Matt Pope, Director Adult Services.  He referred to some of the improvements being made and highlighted the benefits of the peripatetic team.

Shirley Boyt referred to the care staff who were ‘at the sharp end’ caring for the elderly and disabled.  Many of these were some of the lowest paid workers in the Borough.  Shirley Boyt commented that whilst it was likely that Optalis was paying the national living wage of £9.50 to those employees who were over 23, she asked whether consideration could be given to paying the real living wage, which was 40p an hour more, and which could make a real difference to people.  She questioned whether this could form part of the Council’s Anti-Poverty Strategy.

Phil Cunnington responded that the Council wanted to make sure that services was run as efficiently as possible so as to make the best offers to keep and reward staff, in a very competitive market.

Voting was as follows:

RESOLVED:  That

1)       the attached procurement business case to renew the contract to Optalis be approved;

2)       authority be delegated to the Director of Adult  ...  view the full minutes text for item 109

That Council be recommended to:

1)              approve the procurement business case, as set out in the report, to renew the contract to Optalis;

2)              delegate authority to the Director of Adult Services, in consultation with the Lead Member for Adult Services to;

a)       approve and complete the contract with Optalis for £7.3mil – 2022-23; and

b)       undertake all activities required to complete the joint ownership arrangements between RBWM and the Council as set out under the heading ‘Future Arrangements’.

3)              delegate jointly to the Director of Adult Services and the Director of Resources and Assets authority to add to and remove services within Optalis during the term of the contract provided that in each case, up to the total value of £500k:

a)       the budget for the costs of the services has already been approved as part of the agreed Council Budget;

b)       the business case has been approved by both Directors;

c)       the Executive Member with responsibility for Adult Services and the Executive Member with responsibility for Finance have been consulted.

4)              note the shareholders agreement.

[NOTE:  Please note that in accordance with Rule 6.3.34d) of the Council’s Constitution this item is not subject to call-in]

(Councillors John Halsall, John Kaiser and Charles Margetts declared personal and prejudicial interests in this item.

Councillor Stuart Munro took over the Chair for this item only)

The Executive considered a report setting out the procurement business case to renew the contract for adult care services with Optalis Ltd.

During his introduction of the report the Executive Member for Business and Economic Development highlighted the amount of work that had gone into the contract.  Three years ago Optalis was exclusively focussed on growth however the Council’s view was that it should be focussing on quality and value.  Two years of negotiations followed with the result that £2.5m was returned to the Council and the company had been restructured which had led to three boards of Directors being reduced to one.  Optalis was now a more flexible and agile company, with the Council’s operation separated from the overall company which meant that the Council could focus on the service it required for Wokingham residents.

Councillor Munro confirmed that the contract would enable the Council to use Optalis as a provider which would help ensure against rising and variable care costs from other providers and would also enable the development of new services to suit the needs of its residents.

RECOMMENDATION that Council be recommended to:

1)              approve the procurement business case, as set out in the report, to renew the contract to Optalis;

2)              delegate authority to the Director of Adult Services, in consultation with the Lead Member for Adult Services to;

a)       approve and complete the contract with Optalis for £7.3mil – 2022-23; and

b)       undertake all activities required to complete the joint ownership arrangements between RBWM and the Council as set out under the heading ‘Future Arrangements’.

3)              delegate jointly to the Director of Adult Services and the Director of Resources and Assets authority to add to and remove services within Optalis during the term of the contract provided that in each case, up to the total value of £500k:

a)       the budget for the costs of the services has already been approved as part of the agreed Council Budget;

b)       the business case has been approved by both Directors;

c)       the Executive Member with responsibility for Adult Services and the Executive Member with responsibility for Finance have been consulted.

4)       note the shareholders agreement.