______________________________________

________________________________

To Members of the Cabinet

Notice of a Meeting of the Cabinet

Tuesday 16 January 2007 at 2.00 pm County Hall, Oxford

Derek Bishop
Head of Democratic Services

January 2007

Contact officer: Kath Coldwell Tel: 01865 815902 E-mail: kath.coldwell@oxfordshire.gov.uk

Membership

Decisions taken at the meeting will become effective at the end of the working day on 24 January 2007 unless called in by that date for review by the appropriate Scrutiny Committee.

Copies of this Notice, Agenda and supporting papers are circulated to all Members of the County Council.

Date of next meeting: 20 February 2007

AGENDA

Addenda

Apologies for Absence



Declarations of Interest – see guidance note



Minutes

To confirm the minutes of the meeting held on 19 December 2006 (CA3) and to receive for information any matters arising therefrom.

Petitions and Public Address

(See Addenda)



The Future of Dunmore Infant and Junior Schools

Cabinet Member: Schools Improvement
Forward Plan Ref: 2006/184
Contact: Irene Kirkman, Assistant Head of Service (01865 815141)

Report by Director for Children, Young People & Families (CA5).

This report outlines briefly the background to the consultation on the future of Dunmore Infant and Junior Schools, the two options proposed and reports on the response to the consultation by all the stakeholders. The main themes include:

 

1. The overwhelming opposition to Option 2, the creation of a 3-19 school by extending the age range of Fitzharrys secondary school,

 

2. The majority support for the creation of an all through primary school by one of two possible methods:

 

1. closure of the existing Dunmore Junior and Infant Schools to enable the opening of a new primary school, the recruitment of a new headteacher from a national field and the setting up of a new governing body drawing largely on the existing governors of both schools.

 

2. closure of the existing Dunmore Junior School and extension of the age range of the existing Infant School from 3-7 to 3-11, thus retaining the present Infant School headteacher and extending the size of the Dunmore Infant governing body.
3. An alternative proposal for:

a federation of the existing Junior and Infant Schools with existing structures and budgets, which would be led by one governing body. A federation would mean that the two schools would retain their separate legal identities, structures and budgets but would enter into a form of "marriage" or partnership which could be dissolved at a later stage.

The Cabinet is RECOMMENDED to:

1. agree that the creation of an all though 3-19 school, by extending the age range of Fitzharrys School, should not be pursued to the formal consultation stage, given the strength and scale of the opposition to it;
2. approve the creation of an all through primary school on the Dunmore Infant and Junior School Sites; and
3. instruct officers to explore further, in consultation with a representative group of governors from the Dunmore Infant and Junior schools, ways of achieving a primary school in place of separate infant and junior schools and to report back to the Cabinet on 20 February 2007 with recommendations on the primary school model that should be taken forward to formal consultation.

Financial Monitoring

Cabinet Member: Finance
Forward Plan Ref: 2006/137
Contact: Stephanie Skivington, Strategic Finance Manager/Mike Petty, Strategic Financial Planning Manager (01865 815426/815622)

Report by Head of Finance & Procurement (CA6) (download as .doc file).

(CA6 - Annexes 1 - 5 - download as .pdf files)
(CA6 - Annex 6 - download as .pdf files)


The consolidated revenue forecast for the year-end shows a balance of £13.316m. This is made up of £15.335m general balances and a forecast directorate overspend of £2.019m (excluding the City Schools reorganisation).

Within Children, Young People & Families the main area of pressure continues within the Early Years and Family Support Service with a forecast overspend of £1.390m. The supplementary estimate of £0.800m agreed in November for the agency placement budget in this service is reflected in this month's report, the overspend for this budget is now £0.206m. Other key elements of the overspend are within Leaving Care and Unaccompanied Asylum Seeking Children (UASC) Leaving Care grant. The Leaving Care and Asylum Seeker services are being reviewed. Within Social and Community Services the key pressure is within Cultural Services as income pressures are combined with the cost of the projected write down of Audio Visual stock following a review, the remaining services within the Directorate are broadly forecast to breakeven.

The Capital Programme monitoring information is provided in Annexes 6-6f to the report.

The Cabinet is RECOMMENDED to:

1. note the report;
2. approve the £2.327m permanent virement from Children’s Centres South to Early Intervention (paragraph 29);
3. approve the £5.509m permanent virement within Early Years to consolidate the Sure Start grant into one cost centre for effective monitoring (paragraph 30);
4. recommend Council to approve the additional contribution of £0.200m to the Older People pooled budget (paragraph 44);
5. approve the supplementary estimate of £0.434m to Cultural & Adult Learning Services as set out in paragraph 41; and
6. approve the temporary supplementary estimate of £0.040m to Property Services as set out in paragraph 68.

Service and Resource Planning 2007/08 – 2011/12

(See also Addenda)


Cabinet Member: Finance
Forward Plan Ref: 2006/140
Contact: Lorna Baxter, Principal Financial Manager/Mike Petty, Strategic Financial Planning Manager (01865 816087/815622), Paul Edwards, Corporate Performance Manager (01865 815307)

Report by Chief Executive, Director for Resources and Head of Finance & Procurement (CA7).

(CA7 - download as .doc file)
(CA7 - annex 1 - download as .pdf file)
(CA7 - annex 2 - download as .pdf file)
(CA7 - annex 3 - download as .pdf file)
(CA7 - annex 4 - download as .pdf file)
(CA7 - annex 5 - download as .pdf file)
(CA7 - annex 6 - download as .doc file)
(CA7 - annex 7 - download as .doc file)
(CA7 - annex 8 - download as .doc file)
(CA7 - annex 9 - download as .doc file)
(CA7 - annex 10 - download as .xls file)
(CA7 - annex 11 - download as .doc file)

(CA7 - Supplement)

This report is the fourth in a series informing councillors and officers on the service and resource planning process and budget issues for 2007/08 and the medium term and is the final report to Cabinet before Council considers the budget on 13 February 2007.

The report sets out the latest information on the Council's financial position and provides an initial commentary from the Head of Finance & Procurement as well as an updated Financial Strategy for the period up to 2009/10. The commentary includes an assessment, based on the latest financial information, of the sum available to allocate to unavoidable pressures and political priorities in 2007/08 and the medium term within the constraints of the proposed Council Tax increases set out in the published Medium Term Financial Plan for 2006/07 to 2010/11.

The report includes updated schedules setting out for each Directorate, identified budget priorities and pressues (which are not currently proposed to be funded) in the respective service areas and how these could be funded along with proposed efficiency savings. A revised schedule setting out pressures proposed to be funded is also included. The report also sets out a detailed draft budget for Directorates in 2007/08.

The report includes detailed information required for recommendations to the Council on the proposed Council Tax and precepts for 2007/08, in year virement arranagements and the definition of Prudential Indicators. An updated Capital Programme for 2007/08 to 2009/10 is also circulated with this Agenda.

The Cabinet Member for Finance & Property has produced a separate report, to be circulated shortly, outlining the budget proposals which he intends, subject to taking into account the views of the Scrutiny Committees, to recommend to the Cabinet for onward submission to Council.

The Cabinet is RECOMMENDED to:

1. (in respect of revenue) to RECOMMEND Council to approve:

1. a budget for 2007/08;
2. a medium term plan to 2011/12;
3. a budget requirement for 2007/08;
4. a precept for 2007/08;
5. a council tax for band D equivalent properties;
6. virement arrangements to operate within the approved budget;
7. the allocation of the PSA reward grant between directorates and the corporate core;
8. the creation of a budget reserve in 2009/10 by deferring interest on developer contributions by one year; and
9. ask the County Council Management Team to consider how the higher AES target from 2008/09 can be achieved;

2. (in respect of capital) to RECOMMEND Council to approve:

1. that the schemes identified by the Capital Steering Group should be included in the Capital Programme for submission to Council in February 2007;
2. a Capital Programme for 2007/08 to 2009/10;and
3. prudential indicators from April 2007.

Medium Term Corporate Plan

(See also Addenda)


Cabinet Member: Leader of the Council
Forward Plan Ref: 2006/142
Contact: Paul Edwards, Corporate Performance Manager (01865 815307), Lorna Baxter, Principal Financial Planning Manager (01865 816087)

Report by Chief Executive, Director for Resources and Head of Finance & Procurement (CA8).

This report introduces the Council's proposed Medium Term Corporate Plan 2007-11, to be submitted to Council on 13 February 2007 as one of those plans and strategies which require full Council approval. The draft Plan was considered by the Corporate Governance Scrutiny Committee on 11 January. The Committee’s advice will be reported to the meeting.

The Corporate Plan provides a medium-term focus for achieving the Council's priorities. It sets out the context in which the Council operates and the strategic challenges it faces. It describes the role and structure of the Council, including its role as a community leader. It outlines the rationale for the priorities we have set across four themes and identifies the areas on which we will focus. Each priority is supported by SMART targets, against which we will measure progress. The Plan goes on to explain our strategic planning and performance management framework. A summary of the key elements of the Medium Term Financial Plan (MTFP) is to be included and the MTFP will form an annex to the plan. A separate Annual Report will be produced in June, which will provide a review of the previous year, highlighting achievements and challenges faced and commenting on our performance.

The Cabinet is RECOMMENDED, subject to consideration of any advice from the Corporate Governance Scrutiny Committee and to the inclusion of consequential and editorial changes in the text as agreed by the Chief Executive in consultation with the Leader of the Council, to RECOMMEND the Council to approve the Medium Term Corporate Plan 2007-11.

Draft Corporate Asset Management Plan & Capital Strategy

(See also Addenda)


Cabinet Member: Finance
Forward Plan Ref: 2006/076
Contact: Mark Tailby, Strategic Asset Management/Mike Petty, Strategic Finance Manager (01865 816012/815622)

Report by Head of Property and Head of Finance & Procurement (CA9).

The Corporate Asset Management Plan (AMP) and the Capital Strategy (CS) have been updated for the period 2007/08 – 2009/10. These documents are an important part of the overall planning framework for the Council. The final versions will go to Council for approval alongside the Medium Term Financial Plan (MTFP) on 13 February 2007. They are attached as Annexes 1 and 2 to the report.

The AMP sets out the Council’s current and future property asset needs that arise from the Council’s corporate and service priorities and the Council’s approach to meeting those needs. The CS sets out the County Council’s investment strategy.

The Capital Steering Group (CSG) considered the draft AMP and the CS at their meeting on 15 December 2006. They have considered the needs set out in the AMP and followed the process used for prioritisation set out in the CS and reinforced by the agreement of the directorates to their highest priorities in order to recommend to the Cabinet schemes to be added to the Capital Programme 2007/08 – 2009/10 as part of the service and resource planning process for which the report is elsewhere on the agenda.

The Cabinet is RECOMMENDED to endorse the Corporate Asset Management Plan & Capital Strategy in the light of any advice from the Corporate Governance Scrutiny Committee and RECOMMEND the Corporate Asset Management Plan and the Capital Strategy to the Council.

Treasury Management Strategy

(See Addenda)


Cabinet Member: Finance
Forward Plan Ref: 2006/141
Contact: Donna Ross, Financial Manager (01865 815422)

Report by Head of Finance & Procurement (CA10) (download as .doc file).

The Treasury Management Strategy and Annual Investment Strategy for 2007/08 sets out the proposed approach in 2007/08 to managing the Council’s investing and borrowing activities. The investment strategy is concerned with how it is proposed to manage any cash surpluses the Council may have at its disposal during the year. Its borrowing strategy outlines the proposed approach to managing any borrowings the Council may be required to undertake to meet the needs of the capital programme. These investing and borrowing activities take place in the context that "a local authority may borrow or invest for any purpose relevant to its functions, under any enactment", or "for the purpose of the prudent management of its financial affairs" (Treasury Management in the Public Services, CIPFA, p6). The report also sets out in Annex 1 the Prudential Indicators that relate to the authority's treasury management activity. These Prudential Indicators, which every local authority is required to set and approve each year, are designed to ensure the affordability, prudence and sustainability of an authority's capital expenditure and borrowing plans. Finally, the report sets out a range of current views and forecasts in relation to prospects for the economy in 2007/08, including those of the Council's advisor in treasury management matters, Sector Treasury Services Ltd.

These include forecasts relating to interest rates, being one of the most significant variables in terms of the overall cost to the Council of its borrowing and investing activity.

The Cabinet is RECOMMENDED to endorse:

1. the Prudential Indicators in Annex 1 to the report;
2. the continued use of Lender Option/Borrower Option loans restricted to 20% of the in-house investment portfolio;
3. the use of forward borrowing limited to £10m in 2007/08;
4. an increase in in-house lending for periods in excess of 1-year from £20m to £50 million;

(e) the continued use of the services of SWIP and Investec and, subject to performance, the investment of up to a further £10million each with these fund managers.

and RECOMMEND the Council to approve the Treasury Management Strategy Statement and Annual Investment Strategy accordingly.

Review of Property Assets

Cabinet Member: Finance
Forward Plan Ref: 2006/195
Contact: Mark Tailby, Property Services (01865 816012) and Dave Wilkins, Financial Services (10865 815441)

Report by Head of Property and Head of Finance & Procurement (CA11) (download as .doc file).

(CA11 - Annex 1 - (download as .pdf file)
(CA11 - Annex 2 - (download as .pdf file)


The Cabinet considered a report on the Review of Property Assets on 17 October 2006 which proposed that a Business Case was brought to the Cabinet in January 2007.

The research undertaken for this project has shown that the most effective way to meet the Review objectives and sustain and improve service delivery is to consolidate offices in the main towns, but also ensure there are adequate smaller offices across the county to allow staff to work effectively and customers to access services where appropriate.

The proposed office reorganisations will also help achievement of broader organisational changes such as the provision of Shared Services and the re-alignment of children’s and adults services.

The report presents the financial case and economic commercial case for this project, including benefits anticipated and alternative options.

The project would significantly increase the percentage of the Council’s property assessed as Fit for Purpose, reduce the assessed need for repairs and maintenance, enable the introduction of Modern Workstyles in the new offices and contribute to the Council’s Future First objectives.

There are financial implications resulting from vacating 17 properties, purchasing or leasing 3 new properties and refurbishing County Hall. However the net costs, after allowing for debt financing of capital expenditure, running costs of new properties and savings on running costs of current properties, are relatively modest – rising to a maximum of £258,000 per annum by 2009/10, but then reducing as the full revenue savings are achieved.

It is proposed that the short-term revenue requirements are included in the Medium Term Financial Plan and that the project is treated as a Prudential Borrowing scheme. The Cabinet approved this approach in principle as part of the report "Service and Resource Planning 2007/08 – 2011/12" discussed at its meeting on 19 December 2006.

The Cabinet is RECOMMENDED to approve the Business Case for the Review of Property Assets and approve the provision of revenue funding through prudential borrowing, as indicated in Annex 2, and to include this within the Medium Term Financial Plan 2007/08 – 2011/12.

South East Plan - Didcot Housing Distribution

Cabinet Member: Sustainable Development
Forward Plan Ref: 2006/157
Contact: Ian Walker, Community and Spatial Planning Manager, Environment & Economy, (01865 815588)

Report by Director for Environment & Economy (CA12).

The Draft South East Plan was published in March 2006. For the period 2006 – 2026 it provides for 10,200 dwellings in South Oxfordshire District and 11,500 in the Vale of White Horse. This gives a net additional requirement for Didcot of about 3,000 dwellings for the period 2016 – 2026. Currently the Plan distributes these dwellings evenly between the Vale of White Horse and South Oxfordshire, pending completion of detailed work regarding the appropriate distribution for each district. This further technical work is now complete and a joint study has been produced by South Oxfordshire and Vale of White Horse Districts and this Council.

The purpose of this report is to advise on the consideration of the joint technical work by South Oxfordshire and the Vale of White Horse District Councils and their preferred housing distribution, and to consider whether this preferred split should be supported by this Council as the principal authority. The distribution figures will then be submitted to the South East Plan Examination in Public (EiP) by 22 January 2007.

The report concludes that there is no significant planning justification to object to a housing distribution of 1,500 dwellings in the Vale and 1,500 in South Oxfordshire and recommends that this split should be supported.

The Cabinet is RECOMMENDED to:

1. advise the Panel considering the Draft South East Plan that as a result of further detailed work on Didcot, which is set out in the accompanying reports, the housing distribution in policies H1 and CO2 for South Oxfordshire and the Vale of White Horse is supported; and
2. strongly emphasise to the Panel that the provision of adequate infrastructure will be key to delivering this housing growth at Didcot, including sufficient investment in transport infrastructure and funding for the management of transport demand.

New Governance and Financial Arrangements for the Oxfordshire Waste Partnership

(See Addenda)


Cabinet Member: Sustainable Development
Forward Plan Ref: 2006/193
Contact: Andrew Pau, Head of Waste Management (01865 815867)

Report by Director for Environment & Economy (CA13).

Waste management is one of the biggest environmental and financial challenges for all 6 councils in Oxfordshire. Under the Landfill Allowance Trading Scheme (LATS) Oxfordshire County Council as disposal authority needs to achieve substantial reductions in biodegradable wastes sent to landfill. If we fail to meet the required reductions we must either pay a fine of £150 a tonne or purchase allowances from other authorities – potentially at a cost approaching this sum.

The main action for managing this challenge is through the procurement of new treatment capacity, as was also agreed by Cabinet on 19 September. But treatment is only one part of a wider strategy for reducing the volumes of waste needing to be disposed of. The strategy as whole depends on strong partnership arrangements with the 5 district councils who are the collection authorities.

Hitherto the Oxfordshire Waste Partnership has not had a formal constitution nor delegated responsibility in its own right. It has acted until recently more as a forum for exchanging information and experience than as a driver of co-ordinated action. Whilst a strengthened Memorandum of Understanding was approved by Cabinet on 6 September 2005, this still falls short of what is required for the challenges of the Landfill Allowance Trading Scheme (LATS) lying ahead, and a report by the Audit Commission published in August 2006 was critical of the arrangements as being insufficiently effective.

On 24 October Leaders of all 6 councils agreed new governance and financial arrangements designed to strengthen the accountability and effectiveness of the Partnership and to incentivise all councils to work together to avoid LATS penalties.

These arrangements need the formal endorsement of all 6 councils.

The Cabinet is RECOMMENDED to agree that Oxfordshire County Council should formally sign the attached Legal agreement, subject to minor drafting changes to be approved by the Director for Environment & Economy following consultation with the Cabinet Member for Sustainable Development.

Carterton, Closure of Kilkenny Lane

Cabinet Member: Transport
Forward Plan Ref: 2006/192
Contact: Suzanne Roberts, Transport Planner (01865 815582)

Report by Director for Environment & Economy (CA14).

This report has been produced to seek approval for the closure of Kilkenny Lane, Carterton. The closure has been identified in the West Oxfordshire Local Plan and also forms part of the Local Transport Plan as a developer funded scheme. The scheme consists of a point closure and two turning heads and should approval be obtained will be constructed in the 2007/08 financial year. The objective of the scheme is to prevent rat running and create a more attractive environment in association with the new Country Park at North East Carterton.

The Cabinet is RECOMMENDED to approve the closure of Kilkenny Lane and associated construction works for implementation in the 2006/07 financial year.

Retirement Policy

Cabinet Member: Change Management and Schools Improvement
Forward Plan Ref: 2006/181
Contact: Sue Corrigan, County HR Manager, (01865 810280); Rick Harmes, Head of Strategy & Performance, (01865 810626)

Report by Director for Resources and Director for Children, Young People & Families (CA15).

Following the introduction of Age Discrimination legislation in October 2006 the Cabinet considered and agreed changes to the Council's redundancy and retirement policies. Officers were required to undertake a review in consultation with the Cabinet Members for Change Management and Schools Improvement and report back with revised policies and procedures on retirement, premature retirement compensation for teachers and redundancy following consultation with trade unions. This work has now been undertaken and revised policies and procedures are put forward for Cabinet approval together with the results of the consultation exercise.

A further report will come to the Cabinet in February 2007 regarding redundancy procedures in schools.

The Cabinet is RECOMMENDED to:

1. agree that existing policies and procedures will be applied to cases where estimates of benefits have been given and the termination of employment date is on or before 31 March 2007;
2. approve the attached Redundancy Policy for Green Book Non-School Employees and policies on Retirement for ‘Green Book’ Employees and Teachers and Teachers’ Premature Retirement Compensation Scheme.

Oxfordshire Fire Cover Review

(See Addenda)

The Cabinet is RECOMMENDED:

1. to note the three options and indicative costs, which will be subject to further financial analysis;
2. to note the expectations and parameters of the fundamental review into the Retained Firefighter costs;
3. to note that the Review will be a continual process monitored with successes or challenges being identified by Best Value Performance Indicators and the local performance standards that will flow from the 365 Alive Strategy.

Car Boot Sales Scrutiny Review

(See Addenda)


Cabinet Member: Community Safety
Forward Plan Ref: 2006/201

Contact: Matt Bramall, Scrutiny Review Officer (01865 810822)

The Scrutiny Committee, concerned by the existence of unlawful markets for stolen, counterfeit, sub-standard, smuggled and age-restricted products, wanted to investigate the extent to which a minority of traders may take advantage of the traditionally under-regulated environment in which car boot sales operate. Their Review examines the efficacy of the current regulatory framework for such local events and assesses the contribution different agencies make to its enforcement. Support for the activity of Trading Standards in encouraging the organisers of car boot sales to take some responsibility for policing the vendors who sell at their events is critical to establishing a level playing field for legitimate traders and ensuring high standards of consumer protection. The encouraging direction of travel of both Trading Standards and Thames Valley Police is welcomed by the Committee but needs to be sustained and strengthened.

On 4 December the Committee received the report of its Lead Member Review Group. The Committee agreed the report, subject to minor amendments, for submission to the Cabinet. An executive summary of the report with its recommendations is attached (CA17). The full report (as amended) has been circulated to Cabinet Members. A copy has been placed in the Members' Resource Centre and is also available for public inspection.

(CA17 - download as .pdf file)
(CA17 - summary - download as .pdf file)


The Report’s publication was considered to be timely as it coincided with the Chancellor of the Exchequer’s Pre-Budget Report, in which he announces plans to reduce the abuse of copyright and intellectual property aimed at catching both petty and serious criminals, explicitly targeting people who sell counterfeit CDs and DVDs at car-boot sales. The Chancellor will announce an extra £5 million for Trading Standards officers next year to begin taking action against copyright infringement. The report also makes a number of recommendations that relate to the activity of Thames Valley Police. In future the Police and the County Council will be required to work in ever closer partnership, as the government believes the public sector must use its Sustainable Communities Strategy to achieve shared objectives. The Scrutiny Committee very much hopes that the Cabinet will seek to use its influence with the Police to urge them to take appropriate action in response to the issues raised. It will also be sending a copy of the report to the Police and requesting a response.

The Cabinet is RECOMMENDED to consider the Scrutiny Review Report and communicate to the Community Safety Scrutiny Committee its response to the Review's recommendations.

Connexions


Cabinet Member: Children Young People & Families
Forward Plan Ref: 2006/198
Contact: Sandra Bingham, Senior Education Officer (01865 816217)

Report by Director for Children Young People & Families (CA18).

The Connexions Service and budget (approx £5m) will transfer through the Local Area Agreement to Oxfordshire County Council from the regional Milton Keynes, Oxfordshire and Buckinghamshire Partnership (MKOB) in April 2007. The attached report sets out a summary of the transition arrangements for both the management of the service and for the ongoing service delivery to young people.

The report seeks approval to enter into contracts with existing service providers and to exempt those contracts from tendering for one year pending a longer term redesign and recommissioning of services for 2008.

The Cabinet is RECOMMENDED to:

1. endorse the Children & Young People’s Board’s recommendations for the transfer of the Connexions Service to OCC from April 2007;
2. ask the Children & Young People’s Board to monitor progress;
3. approve the ongoing provision of direct services to young people through entering into one year contracts with existing providers; and
4. exempt those contracts from tendering under Contract Procedure Rule 4.1.1 for one year pending the redesign and recommissioning of services for 2008.

Forward Plan and Future Business

(See Addenda)