To inform Cabinet of Hereford City Council’s decision to withdraw funding support for grounds maintenance in Hereford City for 2006/7 and to advise of the impact to services of this decision.

THAT: Cabinet

(a)               Notes the unilateral decision of the City Council to vary the terms on which the City Council would contribute to grounds maintenance within the City;

(b)               Accepts that the situation is not capable of resolution between the parties prior to the forthcoming elections;

(c)               Accepts that the residents of Hereford City should not be disadvantaged as a consequence of the unilateral breach of understanding and adjusts the base budget by £130,000 to allow that activity to be funded pending a permanent resolution;

(d)               Requests that reports be prepared for the successor administration:

(i)           In relation to the potential contractual recovery of the sums unpaid in 2006/2007;

(ii)         In relation to the options available for the balance of 2007/2008 with a          view to minimising the effect of the reduction of funding on the          environment of the City;

(iii)        Following enquiry of the City Treasurer to illustrate how the sums included in the City Council’s precept for this purpose in 2006/2007 were actually expended.

The contribution from Hereford City Council which was forthcoming from 2002/3 via an SLA ceased in 2004/5 and carried over for 12 months at a reduced rate for 2005/6.  This accounted for approx 40% of actual cost of grounds maintenance expenditure in its last year.

The loss of this contribution will make a basic programme of maintenance undeliverable across the City and impact upon the ability of HJS to provide sufficient core capacity to undertake a Countywide service.

There are no alternative options.