To consider the recommendations of the Service Delivery Review of the Council’s Service Delivery Partnership with Amey and seek approval to commence formal negotiations regarding a preferred model of future service delivery.

THAT  (a)        the final report of the Service Delivery Review be noted;

(b)               Officers be authorised to commence formal negotiations with Amey to secure changes to the partnership to reflect a preferred model of service delivery whilst also addressing where possible anomalies and weaknesses in the current contractual arrangements;

(c)               The Herefordshire Model of service delivery, as outlined in this report, be pursued as the preferred model and used as the basis for negotiations. Under this model, subject to successful negotiations, Amey would take on the relevant Council staff responsible for these areas under TUPE arrangements;

(d)               Asset Management and Property Services be excluded from the negotiation whilst a wider review of the property estate and its management is carried out and that this is completed by the end of March 2009;

(e)               A report be submitted to Cabinet on conclusion of the negotiations and the negotiation of the preferred model in (c) above does not restrict the recommendation of a different model if it is clear that this would be in the Council’s best interests.

The Service Delivery Review has sought to review alternative forms of delivery with a view to identifying ways of securing annual savings of £1million and improving the quality and level of service.  The approach outlined in this report is considered to offer the potential to achieve these objectives and approval is sought to enter into formal negotiations with Amey.

Alternative options and their implications are presented within Appendix 3 of this report.