To receive any apologies for absence.

There were no apologies for absence.

To receive any declarations of interest by Members in respect of items on the Agenda.

There were no declarations of interest received.

NOTE:  The Leader of the Council informed the Cabinet meeting of the news reports that Willmott Dixon has been one of the companies fined by the Office of Fair Trading (OFT).  As Willmott Dixon has been part of the bidding process for the construction of the new livestock market, Cabinet has been advised by the Monitoring Officer to defer the matter of the livestock market, so that Cabinet can be assured that they can proceed as planned and recommended in the report before them.  The Leader proposed that the meeting be adjourned at Agenda Item 7 and reconvened on 1 October at 2.00pm to consider the matter following receipt of advice from the Monitoring Officer.  It was not envisaged that there would be any problems as the OFT had advised that those companies fined should not be precluded from such work in future.  The Monitoring Officer was requested to publish her advice as soon as it was available, if it was not exempt from publication.

To approve and sign the minutes of the meeting held on 10 September 2009.  (To follow).

RESOLVED:   That the Minutes of the meeting held on 10 September 2009 be approved as a correct record and signed by the Chairman.

To report performance for the period April-June 2009-10 against the Council’s key indicators and associated projects and programmes in its Annual Operating Statement 2009-10.

Cabinet’s attention was drawn to the full text of Appendix 3, which had been distributed separately prior to the meeting.  Cabinet was reminded of the ratings for performance, from green, for performance in excess of target, through to red, indicating either not expected to achieve target or because either due data had not been reported or no action plan was yet in place.  Cabinet was advised that some 60 indicators were now being used.  These were grouped by reference to the themes of the Herefordshire Community Strategy and whether their prime focus was on citizens, services, partnerships or meeting the Council’s statutory duties.  It was noted that the percentage of children subject to a child protection plan had improved and was slightly better than target.  Improved figures to the end of August for the timely assessment of referred children strengthened the expectation that the year’s target should be achieved.  In addition reductions in delayed transfers of care from hospitals were reported and, although performance was behind target in respect of clients receiving self-directed support and people supported to live independently, both were moving in the right direction.

Cabinet went on to discuss:

• targets and action plans relating to affordable homes and organisational improvement and greater efficiencies.
• the increase in road accidents in the first five months of 2009, following the record low level in 2008, and the action in hand to continue the underlying downward trend, including through the use of safety cameras.

RESOLVED: That performance to the end of June 2009 and the measures taken to address areas of under performance be noted.

To note the progress made by the Schools’ Task Group (STG) and the proposal for the consultation process for the STG paper. (Report to follow).

The Cabinet Member ICT, Achievement and Education presented the report and informed Cabinet that the Task Group was reporting back to Cabinet following consultation with head teachers and chairs of school governing bodies.  Following Cabinet’s approval full consultation would be undertaken with the general public with feedback to the Cabinet meeting on 26 November 2009. 

Cabinet was advised of the issues discussed by the task group as:

• Falling rolls;
• Statistical data;
• Financial implications;
• Possible alternative models e.g. federating schools;
• Governance and school leadership;
• Rural considerations.

Cabinet was reminder that the work the Schools Task Group was undertaking was part of a national strategy with a timeline for delivery and was fundamental to the future of schools in the county.  It was noted that liaison needed to continue with school governors to ensure their continued involvement and provide training for governors.

Cabinet went on to discuss:

• The complexities School funding;
• Falling rolls;
• The high performance of county schools;
• Low national funding received by Herefordshire – 147 out of 149;
• The number of schools in the county and the percentage of small schools;
• How to make funding equitable and fair for all children in Herefordshire.

Cabinet emphasised the importance of Councillors attending parish council meetings to discuss the schools report with them and the community at large and to take back the views of the community to the directorate.

RESOLVED

                        THAT:

                           (a)     the process and timescale for consultation on Schools Task Group paper (Appendix 1) be approved;

                           (b)    the process followed and progress made by the Schools Task Group in preparing the paper for consultation be noted.

To report July’s budget monitoring information and provide an indication of estimated outturn.

The Acting Head of Financial Services presented the report and advised Cabinet on the overall position on the revenue budget which showed a projected overspend of £1.34m, which was 1% of the Council’s £137.718m net revenue budget, excluding dedicated schools grant funding.  Cabinet was reminded that directorates had been instructed to keep spending within budget.  Income from investments had not been reached due to the economic downturn.

In discussing the Capital Programme Cabinet was advised the forecast outturn for 2009/10 totalled £84.443m, which was an increase of £17,005k from the original programme.  The increase was due to slippage identified as a result of the 2008/09 close down and the inclusion of additional funding allocations.  Cabinet was advised of early indications of pressures for the year; however, recovery signs were in place and by highlighting now should bring the budget in line by year end. 

Cabinet also discussed:

• Potential savings against pay awards;
• Write-offs report;
• Business rates and the fall in the national pool;
• Herefordshire Connects budget.

RESOLVED

                        THAT:

(a)               the report be noted;

(b)               the forecast outturn for 2009/10 be agreed with Directors based on service and financial performance in the report, be noted.

(c)               The continuing efforts of Directors to ensure service targets are met within approved budgets be endorsed.

Cabinet adjourned at 3.15 pm and agreed to reconvene on 1 October 2009 at 2.00pm to discuss Agenda Item 7 Livestock Market.

To agree the procurement and appointment of a contractor to construct a new livestock market and to approve the anticipated expenditure.  (Report to follow).

Reconvened Cabinet Meeting 1 October 2009.

This item was deferred to enable the Cabinet to receive advice from the Monitoring Officer.

Cabinet Members Present:     AJM Blackshaw, H Bramer, JP French, JA Hyde, JG Jarvis, RJ Phillips, PD Price, DB Wilcox.

Apologies received from Councillor LO Barnett Cabinet Member Social Care Adults.

The Leader of the Council reminded Cabinet of the reasons for the adjournment of the meeting on 24 September, which related to the recent guidance received from the Office of Fair Trading (OFT) and to receive advice from the Monitoring Officer in relation to the guidance.  A copy of the Monitoring Officer’s advice is attached at Appendix 1 to the minutes.

The Monitoring Officer reminded Cabinet of the two decisions they were being required to take, namely:

·         To approve the allocation of funding for the construction of the new livestock market and associated transport improvements; and

·         To delegate authority to the Director of Regeneration to proceed with the procurement and appointment of a contractor to develop the new livestock market.

The Monitoring Officer reported to Cabinet on the guidance from the OFT stating that Willmott Dixon Construction Ltd had been one of the companies that had been fined by the OFT and the guidance had stated that contractors should not be automatically precluded from the tendering processes as a result of being fined, for the reasons set out in her advice note.

The Director of Resources explained the decisions that the Cabinet were asked to consider, the nature of the SCAPE framework contract and the advantages to the Council of using that framework to enter into a contract with the preferred contractor, Willmott Dixon Construction Limited.   The Director of Resources also explained that this provided some assurance that local sub-contractors would be used on the contract and that undertaking a full tender process instead of using the established SCAPE framework contract would not secure such reassurance.

The Monitoring Officer made it clear that if the Council chose to utilise the SCAPE framework contract that it was not possible to preclude Willmott Dixon Construction Limited from putting forward a proposal for this work because it was an established contract.

The Monitoring Officer went on to advise Cabinet that even if the Council chose to undertake a full tender exercise instead of using the SCAPE contract it would not be prudent to exclude Willmott Dixon Construction Limited from any tender exercise on the grounds of the OFT fines and in the light of the OFT advice.  She added that:

·         some companies similar to Willmott Dixon had participated in the OFT leniency programme;

·         the levels of fines imposed did not necessarily reflect the level of inappropriate activity by companies;

·         Willmott Dixon press release advises of the remedial steps put in place to prevent further occurrences in the future;

·         to exclude those companies fined from the procurement process would remove a lot of the market that would normally compete and might effect the quality of the response; and

·         companies might seek to take  ...  view the full minutes text for item 30.