To receive apologies for absence.

Apologies were received from Councillor W.L.S. Bowen.

To receive any declarations of interest by Members in respect of items on this agenda.

There were no declarations of interest.

To approve and sign the Minutes of the meeting held on 13th February, 2006.

RESOLVED:   That the Minutes of the meeting held on 13th February, 2006 be confirmed as a correct record and signed by the Chairman.

To consider suggestions from members of the public on issues the Committee could scrutinise in the future.

There were no suggestions from Members of the Public.

To consider the findings of the Strategic Service Delivery Partnership Review Group following the review of the operation of the Partnership.

The Committee considered the findings of the Strategic Service Delivery Partnership Review Group following the scrutiny review of the operation of the Strategic Service Delivery Partnership.

The Committee had agreed to review the Council’s contract with Herefordshire Jarvis Services (HJS) in April 2005, with the decision to widen the review to include Owen Williams, who together with the Council and HJS formed the Strategic Service Delivery Partnership, being reported to the Committee in October 2005. 

The Review Group’s report setting out the Group’s approach to its task, its findings, conclusions and recommendations was appended to the report.

The Chairman of the Committee, who had also chaired the review, presented the report going through each section of the report and the recommendations in turn.

In the course of discussion the following principal points were made:

·          It was suggested that the difficulties the review had identified in the arrangements for commissioning work from HJS needed to be borne in mind as the Council contemplated entering into other commissioning agreements which were potentially more complex.  It was important that each partner to an agreement clearly understood from the outset what each could and would contribute.

·          The report at paragraph 6.2 had identified a lack of input to the Partnership of expertise and investment and benefits of economy of scale which might have been expected from the association with Jarvis PLC.  The Committee noted the view of Mr S Gyford of Jarvis PLC on this point, who commented to the meeting on the extent to which newer equipment had been acquired.  However, it was suggested in reply that whilst equipment might have been replaced the Review Group had not found evidence to suggest that more innovative and efficient solutions for service delivery had been introduced which the Council itself could not have pursued.

·          It was stated that the cost to Social Care of cleaning buildings had significantly increased following the letting of the contract to HJS, adding weight to some of the concerns expressed in the report.

·          The Leader of the Council commented that to date the HJS Board had perhaps concentrated too much on operational rather than strategic issues.  The difficulties of Jarvis PLC had created problems that the Board had had to address.  However, the confidence of Sub-Contractors for example, seemed to have been restored and services had not been disrupted. 

      He was confident that the Council had taken the proper steps to protect its position during this period.  The development of the Joined Up Programme between the Partners for highways and property schemes would be important in achieving future economy and efficiency savings.  Changing the name of HJS could also be an important step in improving prospects provided the timing was right.  The recent success of HJS in securing work from the Highways Agency was to be welcomed, offering hope of improved prospects. 

      He agreed that the issue of the 8% fee on the sum invoiced to the Council paid to Jarvis PLC for managerial support needed to be discussed and  ...  view the full minutes text for item 56.

To receive an update on the review of ICT Services.

The Committee received an update on the review of ICT Services.

Further to the report to the Committee in October 2005 a revised scoping statement  for the review was circulated and the Committee informed of the revised timetable for the review and how it was intended to proceed.

RESOLVED:   That the revised scoping statement for the review of ICT Services be approved and the work programme for the review noted.

To report on employee turnover, and to provide an update on the findings of Exit Surveys.

Further to its request on 13 February 2006 in considering the Minutes of its meeting on 26th January, 2006 the Committee received a report on employee turnover and an update on the findings of exit surveys.

The Head of Human Resources presented the report.  He commented that employee turnover within the Council as a whole continued to be steady at 9%.  However, within the overall turnover figures there were areas within Directorates where turnover issues needed to be addressed via the Pay and Workforce Development Strategy.  Actions to address turnover and key shortage areas and the Joint Area Review findings were set out in the report. 

The findings of quarterly surveys of leavers from the organisation were also set out in the report.  It was indicated that the Pay and Workforce Development Strategy aimed to continue to address issues raised through the operational plan 2006/7 and as part of the longer term aims for 2008 – in particular actions to address pay, reward and recognition and developing a generic careers structure for the Council.

In the course of discussion the following principal points were made:

·         In relation to the employee turnover statistics it was requested that the figure for the Children’s Services Directorate should show school based staff separately.

·         In response to questions about the vacancy rate the Head of Human Resources explained that the Council did not currently operate a fixed establishment making it difficult to assess vacancy rates accurately.  An establishment was now to be put in place to make it easier to identify and manage vacancy levels in the future.  It was intended that the system would retain a degree of flexibility so that employee levels could continue to be managed according to service delivery needs. 

RESOLVED:            That the report be noted.

To note the Council’s strategy for achieving service efficiencies for 2006/07.

The Committee considered the Council’s strategy for achieving service efficiencies for 2006/07.

The report to Cabinet on 30th March, 2006 was appended to the report.

The Committee questioned some of the anticipated savings and some concern was expressed that the Strategy was optimistic.

RESOLVED: That the report be noted.

To note the final performance against the first Local Public Service Agreement.

The Committee was informed of the final performance against the first Local Public Service Agreement.

The report to Cabinet on 16th March, 2006 was appended to the report.

It was noted that the Performance Reward Grant earned under the first Local public Service Agreement (LPSA1) was £1.65 million, 47% of the total available of £3.54 million and that the sum was to be invested in LPSA 2.

In response to a question about the target 9.1 in the LPSA1 (%age of pupils attaining more A* - C grades at GCSE it was confirmed that it was a challenging target and noted that very few Councils had attained the national target let alone the stretched target in the LPSA1.

RESOLVED: that the report be noted.

To note the negotiation of the Local Area Agreement and the next stage of the process.

The Committee was informed of the negotiation of the Local Area Agreement (LAA).

The report noted that this would run for three years from 1st April, 2006 and that the Agreement would incorporate the second Local Public Service Agreement (LPSA2) which would in future be described as the reward element of the LAA.

The Committee’s attention was drawn to the arrangements for performance management of the LAA.  It was noted that this would be dealt with as part of the wider performance management arrangements for the Herefordshire Community Strategy Action Plan with regular monitoring reports being presented to Cabinet.

A question was asked about the cost of delivering the Agreement noting the investment of effort in the first Local Public Service Agreement which had resulted in 47% of the Performance Reward Grant being achieved.  In reply it was advised that the Local Area Agreement was different in nature to the LPSA and the key lay in achieving savings through working closely and innovatively with partner organisations.

RESOLVED: That the report be noted.

To draw the Committee’s attention to the Council’s Annual Operating Plan (AOP) 2006-07 and to its further development to serve as the basis for performance management, and to invite the Committee to have regard to it in determining the scrutiny programme.  

The Committee’s attention was drawn to the Council’s Annual Operating Plan (AOP) 2006-07 and to its further development to serve as the basis for performance management.

The Committee was also invited to have regard to the Plan in determining the scrutiny programme.

It was noted that the AOP would be maintained as a living document as part of the in-year reporting and management of performance.  In particular it would be updated to reflect fully the Herefordshire Community Strategy, the Local Area Agreement, the key actions in the Council’s Herefordshire connects service improvement programme and the key actions in the Council’s Overall Performance Improvement Action Plan, although the key issues had already been taken into account.

It was also noted that some targets, milestones and actions had yet to be determined because of the need to establish an accurate baseline.

The Chief Executive drew attention to his foreword to the Plan which highlighted the challenges facing the Council and the need to improve and to re-energise the Council’s Improvement Programme, improve key processes and ensure the essential underpinning of rigorous planning and performance management was in place in all parts of the Council including the scrutiny function.

RESOLVED:

THAT     (a) the Annual Operating Plan 2006-07 and what will be done to maintain it as the basis for effective performance monitoring and management be noted;      

                        and

(b)         regard be had to the Annual Operating Plan in determining the future scrutiny programme.    

To consider the Committee’s work programme.

The Committee considered its work programme.

It was agreed that an informal meeting should be held in May to consider how the work programme might be developed having regard to the Annual Operating Plan, the Community Strategy and the Council’s overall improvement plan.

To consider the work being undertaken by the Scrutiny Committees.

The Committee noted the work being undertaken by the Scrutiny Committees.