On 18 February 2010 the Cabinet agreed that the Council should continue to develop the Shared Services using one or more of three models as appropriate, noted that the Business Transformation Board was responsible for implementing Shared Services and authorised the Deputy Chief Executive to progress negotiations and seek further decisions from the Cabinet as necessary.

The purpose of this report is to update the Cabinet on negotiations, to report the findings of an appraisal and evaluation of the three models and to seek agreement to progress using a public-public partnership as the preferred model.

The Deputy Chief Executive (Interim) and the Interim Assistant Chief Executive Legal and Democratic did a joint presentation updating Cabinet on the Shared Services programme and the evaluation method used against the three models.  They referred to:

• Maintaining and improving customer services whilst creating efficiencies and building service improvements.
• The financial pressures due to the reduced public sector settlement.
• A strong sense of place whilst building partnerships and using innovative practices to provide quality services.

The three models considered were:

• Lead Partner
• Strategic Partner
• Public/Public Joint Venture

All three were evaluated and scored against business case design principles using legal advice and supporting information, with three rounds of scoring. 

Cabinet was advised of:

·         The advantages / disadvantages of all three models.

·         That the Joint Venture (Public / Public) partnership was the preferred model.

·         That partners needed to agree on the preferred model to enable proposals to be developed and progress to be made without delay.

Should the preferred model be approved by the partner organisations, during April to June 2010 there would be:

·         Partnership terms to be negotiated and preparatory steps taken to create a Joint Venture Company (JVCo).

·         Blueprints drafted for future service delivery.

·         Work carried out with Heads of Service on shared service development.

·         Staff and union consultation.

During June to September Cabinet and partner organisation will need to agree detailed terms for the JVCo.  During October to December the JVCo is proposed to go live with a phased transfer of services.

Cabinet discussed:

• The timelines required and agreed it would both challenge staff and provide staff with the opportunity to improve services.
• A private sector partner would be considered as a later option.
• The supporting information and believed it set out clearly the three options and why the joint venture should be the preferred option.
• Partner organisations were in principle agreement.  25 March was the date of decision for the PCT Board.  Following on from that date the Board and senior management team for HHT would then be making their decision.
• Shared services was seen by all as the first line of defence for frontline services.
• It was noted that Herefordshire was ahead of a number of other authorities in putting together a shared service programme of this nature.
• It was confirmed that the JVCo would be likely to be a company limited by guarantee, being the usual model for public / public corporate bodies.

The Leader invited the Chairman of Overview and Scrutiny to speak and he spoke in support of the proposals but voiced concerns regarding delays in the timescales.  The Interim Deputy Chief Executive reminded Cabinet that there had been an agreed pause in the processes, but added the work of Herefordshire Connects to date had resulted in significant savings for the partnership.

RESOLVED:

               THAT Cabinet:

               (a)     agreed the preferred option for the delivery and commissioning of the shared services to be a Joint Venture Company (representing a public / public partnership) involving the Council, NHSH and HHT;

               (b)    authorised the Deputy Chief Executive (DCE) to progress and take all necessary steps to establish a JVCo in consultation with the Leader and Deputy Leader of the Council and Trust Boards; and

               (c)     seek a further report on the formal decision to agree the terms of the Council’s participation in the JVCo to be presented to a future meeting of Cabinet.