Agenda item

Report DRR15/089

In progressing work to implement a new approach to the delivery of library services, officers had worked in conjunction with the London Borough of Bexley to develop a joint procurement strategy, undertake soft market testing and complete further consultation with library staff, library users and residents.

Members were requested to consider:-

•  an overview of the outcome of the soft market testing exercise (due to its commercially sensitive nature, the detailed outcome was considered during the Part 2 section of the meeting);

•  the outcome of the public consultation and staff engagement activities;

•  alternative options for the future of the library service;

•  the proposed joint procurement strategy with the London Borough of Bexley to market test the library service; and

•  how commercially sensitive issues identified would affect the procurement strategy and contracting arrangements (also considered during the Part 2 section of the meeting).

The report also outlined the separate procurement process being delivered to identify suitable community management options for the Council’s six community libraries together with a proposed alternative option that could be considered should no such arrangements be agreed.

The Chairman began by issuing the following statement:-

  "Members of this Committee are asked to pre-scrutinise a report that sets out proposals to commission the library service and to provide our comments on these proposals to the Executive at their special meeting on 9 November.

  This report establishes the business case on which the recommendation is made, including the outcome of soft market testing and consultation with the public and staff.  I would like to thank those staff who have written to me personally with their comments on these proposals.

  There is no doubt that out library service is valued by those who live, work and study in the borough.

  However, like all local authorities, we face challenging financial circumstances.  As an authority, we are committed to reviewing who is best placed to deliver our services under tough economic conditions.  Unlike some other local authorities, Bromley is not proposing to close libraries.  Rather we are trying to find ways of making reductions to our budget whilst protecting front-line services.

  This report recommends that the Council begins a formal procurement process jointly with the London Borough of Bexley, with whom we already have a shared service for back office and management functions, to test the market.  We are being asked to comment on this recommendation and on the proposed procurement strategy.

  This report also provides us with an update on a separate tender process to identify community management arrangements at our six smallest libraries.  There is not one type of community management and at this stage it is too early to say what is proposed for our community libraries however, it is pleasing that there has been interest.  We know that community management has kept libraries open across the country, including in our neighbouring boroughs of Bexley and Lewisham.

  While we are talking about libraries, I also wanted to note that at a previous meeting, I committed to looking at the opening hours at Mottingham Library.  Officers have completed work to analyse useage patterns and other data and determined that the opening hours do meet the current needs of those who live, work or study in the borough and specifically in the catchment area for Mottingham Library."

The Chairman commended Tim Woolgar and his team on the success of securing a grant for establishing wi-fi in eight of Bromley's libraries.

It was reported that the results of the joint procurement exercise would be provided to the Committee in autumn 2016 at which point the Authority would be looking to award the contract.

It was too early in the process to provide details of the next steps to take in  the event that proposals for community-run libraries were to proceed yet fail.  The results on the market testing exercise for community-run libraries would not be available until January 2016.  If the libraries were to become community-run, two full-time members of staff would be employed to work with the organisations and business returns would be analysed to ensure that proposals for community management were sustainable. These libraries could, however, be included in the wider outsourcing proposals if no suitable community management arrangements could be identified.

The framework outlined on page 104 of the report, would consist of a pre-existing arrangement which would enable other authorities to contract with a service provider from a list of a limited number of economic operators for a defined period of time.  This would reduce both time and costs during the procurement process for other authorities and could make a tender more attractive to the market.  However, the report identified that this approach carried significant risk.  The joint commissioning between Bromley and Bexley would result in economy of scales. 

With regard to the Book Fund, it was possible that funds would continue to be provided either from the Council's Core Fund or by the service provider.

The back-office venture with Bexley had been very successful and the same principle would be adopted in regard to the current proposals.  Joint project team meetings take place which feed through to Chief Executive levels at both Bexley and Bromley.  All stages of the process would be carried out in tandem with Bexley but each authority would retain its own key staff and identity.

It was noted that 60% of people borrowed books which was three times more than those who visited to make use of computers.  It was necessary, therefore, to ensure that the books on offer were plentiful and of good quality.  The tender specification would stipulate provision of service on an 'as is' basis. 

Officers would continue to look at ways of generating income from libraries such as hiring out halls or selling merchandise; one Member suggested the installation of facilities such as Amazon Lockers.

Councillor Wilkins had serious reservations about the proposals as she considered the strategic overview process had been insufficiently carried out in relation to assessment of needs and required provision etc.  Libraries were originally set up to provide books for people who could not afford to buy them - that has now changed.  25% of residents did not have access to computers as was reflected in areas like Crystal Palace.  Councillor Wilkins was also concerned about how contractors would profit from the venture.

Members were informed that an equality impact assessment and needs assessment had been carried out.  The libraries project was a long and complicated issue which was not being dealt with piecemeal.  With regard to the community management proposals, a number of interested responses from organisations had been received and would be analysed.  All stages of the process would be undertaken properly. 

As part of the soft market testing, interested parties would be required to provide the same service as that currently being offered; they would also be asked for suggestions on ways to improve provision.  All options and issues would be looked at and terms and conditions would be included in contracts.  For budget monitoring purposes, providers would be required to submit an Annual Library Plan and would need to attended PDS meetings twice per year to discuss progress achieved and projected targets.

RESOLVED that the report be noted and Member comments be made available to the Executive Committee for consideration.

Councillor Wilkins’ voted against proceeding with the proposals.