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 resolved.

·          There was discussion of HJS’s difficulties in securing work from schools. The Chief Executive commented that the Council had made clear that it could only use its best endeavours to encourage schools to purchase its services.  Whilst this had been clearly understood by HJS, HJS did have a lingering belief that the Council had not fulfilled its undertaking to HJS in this regard and he considered that there was some evidence to support that view. 

·          Mr R Wood of Owen Williams informed the meeting that a restructuring exercise should address the concerns expressed in the report about the engagement of Owen Williams in project meetings and should be advantageous to the Council.

It was noted that Cabinet’s response to the report would be reported to the Committee and that the Review Group envisaged, subject to the outcome of the consideration of the report by Cabinet that it would wish to review the progress made in response to its recommendations in six months time. 

THAT     the findings and recommendations contained in the report of the Strategic Service Delivery Review Group be endorsed and submitted to Cabinet for consideration.