Agenda and minutes

Members are reminded that this meeting will be audio-recorded.

Apologies were received from Councillors A Dirir, S Parker and M Tarr.

To receive any announcements that the Chair wishes to make prior to the commencement of the formal business of the meeting.

The Chair asked Members to note the content of the Chair’s announcements, which included details of the Authority’s achievements and events that Members had attended since the last Fire Authority meeting in September 2017.

Members are reminded that the Members’ Code of Conduct requires the disclosure of Statutory Disclosable Pecuniary Interests, Non-Statutory Disclosable Pecuniary Interests and Disclosable Non-Pecuniary Interests.

There were no declarations of Members’ interests.

To confirm as a correct record the minutes of the Fire Authority Meeting held on 20^th September 2017.

RESOLVED:

That the minutes of the meeting of the Fire Authority held on 20^th September 2017 be approved as a correct record.

In accordance with procedural rules 4.47 to 4.54, questions have been submitted by members of the public from within the area covered by the Fire Authority for consideration.

Questions submitted by members of the public from within the area covered by the Fire Authority were dealt with at this point in accordance with procedural rules 4.47 to 4.54.  The questions and responses are annexed to these minutes.

To receive, for information, the minutes of the Performance and Overview Committee meeting held on 6^th September 2017.

RESOLVED:

That the minutes of the Performance and Overview Committee meeting held on 6^th September 2017 be received, for information.

To receive, for information, the minutes of the Performance and Overview Committee meeting held on 22^nd November 2017. (TO FOLLOW)

RESOLVED:

That the minutes of the Performance and Overview Committee meeting held on 22^nd November 2017 be received, for information.

To receive, for information, the minutes of the Governance and Constitution Committee meeting held on 8^th November 2017.

RESOLVED:

That the minutes of the Governance and Constitution Committee meeting held on 8^th November 2017 be received, for information.

To receive, for information, the minutes of the Estates and Property Committee meeting held on 1^st November 2017.

RESOLVED:

That the minutes of the Estates and Property Committee meeting held on 1^st November 2017 be received, for information.

To receive, for information, the minutes of the Brigade Managers’ Pay and Performance Committee meeting held on 1^st November 2017.

RESOLVED:

That the minutes of the Brigade Managers’ Pay and Performance Committee meeting held on 1^st November 2017 be received, for information.

To receive, for information, the minutes of the Staffing Committee meeting held on 30^th October 2017.

RESOLVED:

That the minutes of the Staffing Committee meeting held on 30^th October 2017 be received, for information.

To receive, for information, the notes of the Member Training and Development Group meeting held on 5^th October 2017.

RESOLVED:

That the notes of the Member Training and Development Group meeting held on 5^th October 2017 be received, for information.

To receive, for information, the notes of the Risk Management Board meeting held on 17^th October 2017.

RESOLVED:

That the notes of the Risk Management Board meeting held on 17^th October 2017 be received, for information.

To receive, for information, the notes of the Pension Board meeting held on 28^th November 2017. (TO FOLLOW)

RESOLVED:

That the notes of the Pension Board meeting held on 28^th November 2017 be received, for information.

The Policy and Transformation Officer presented the report which provided initial feedback on the consultation programme that was being carried out into the Authority’s draft Integrated Risk Management Plan for 2018-19 (IRMP 15).  The consultation programme ends on 2^nd January 2018 and the information contained within the current report was based on views and comments received up to 20^th November 2017.

He informed Members that the consultation programme consisted of a number of public roadshow style events, direct contact with a range of local partner organisations and stakeholders and a programme of internal consultation events for staff.  He provided an update on the number of responses received from the public (over 460) and explained that this figure would provide a significant degree of confidence in the results of the consultation.  He also provided an update on the number of responses received from staff (approximately 105). This was a significant increase compared to the response rate of 49 members of staff at the same stage during last year’s consultation.

A Member queried whether there had been any issues concerning access to the online consultation survey.  The Policy and Transformation Officer informed Members that details about the consultation had been a feature on the Service’s website homepage since the consultation opened and would continue to be until the consultation closed.  A Member queried whether feedback from the consultation that was received after the closing date would be fed back to Members for their consideration.  The Policy and Transformation Officer confirmed that Members would, as always, have an opportunity to see all feedback.

A Member queried whether comments raised on public forums (e.g. the Service’s Facebook and Twitter pages) were taken into consideration during the consultation process.  He also queried whether a petition from the MP for Crewe and Nantwich, concerning the second appliance at Crewe fire station, would be included as part of the consultation process.  The Chair informed Members that MPs were welcome to approach him or the Chief Fire Officer and Chief Executive to discuss any matters concerning the Authority.  The Chief Fire Officer and Chief Executive informed Members that comments raised on public forums were not included in the formal response to the consultation but the Service ensured officers were made aware of them.  He also continued that any petitions or comments concerning the second appliance at Crewe Fire Station would be considered as part of the review process which was scheduled to be reported back to Members at the meeting of the Authority in February 2018.

RESOLVED: That

[1]     the interim feedback on the consultation programme for the draft 2018-19 Integrated Risk Management Plan be noted.

The Head of Finance introduced the report which provided an update on the Authority’s draft 2018-19 budget and the current approved Medium Term Financial Plan (MTFP).  The Authority was required to approve an annual budget and set a council tax precept by mid-February.  Members were informed that this was the first of two budget reports and that the final report would be considered by the Authority in February 2018.

She highlighted changes since the setting of the budget for 2017-18.  Changes included:

-        the Authority’s decision to delay implementing changes at Crewe and Ellesmere Port pending a review, with the shortfall in savings being funded from reserves;

-        Approval from the Authority for the training centre programme and Sadler Road requirements subject to successful procurement being undertaken at an estimated cost of £9m;

-        A 2% pay award for firefighters from July 2017 (and a further 3% from April 2018 offered but not yet agreed with the trade union).

The Head of Finance also informed Members that very little had been mentioned concerning fire and rescue services in the Chancellor’s autumn budget.  She highlighted that there was no indication of further funding for the pay awards from the Government.

She informed Members that the estimated £9m cost for the training centre project, alongside the annual replacement and maintenance capital schemes, would utilise all reserves earmarked for capital purposes within the next few years.  She advised that the alternative option would be for Members to borrow and that Item 6 – Capital, Reserves and Borrowing contained further information on this option.

A Member queried whether further details could be provided for Members concerning the savings listed in the overview of the MTFP 2016-17 to 2020-21, attached as Appendix 1 to the report.  The Head of Finance confirmed that further details would be included in the February 2018 report to Members.

A Member referenced the 2% pay award and highlighted that members of the Fire Brigades Union did not want the Fire Authority to pay for these increases.  The Chair informed Members that this point had been made nationally and that MPs were lobbying in relation to the funding of pay increases.

RESOLVED: That

[1]      the information relating to the 2018-19 budget setting together with the MTFP be noted.

The Director of Governance and Commissioning informed Members that representatives from Grant Thornton had sent their apologies for the meeting and that he would present the report in their absence.  He explained that the Annual Audit Letter provided an overall summary of the audit carried out by the External Auditors.  The letter summarised the key findings which had been highlighted at the September meeting when the Audit Finding Report was prepared by Grant Thornton.

RESOLVED: That

[1]      the Annual Audit letter for Cheshire Fire Authority for the year ended 31^st March 2017 be noted.

The Head of Finance introduced the report which provided an update on performance against the Authority’s Treasury Management Strategy and sought approval from the Authority for the revised limits to borrowing activity as detailed in paragraphs 14 to 18 of the report.

She informed Members that the Authority’s treasury portfolio at the end of September 2017 was in line with expectations.  The Authority continued to maintain high levels of cash which were suitably invested.   She highlighted that the Authority had investments with Lloyds (£7.05m), Goldman Sachs (£10m) and Santander UK (£5m).

Consideration was now being given to financing the recently approved training centre project from new borrowing, rather than from cash reserves.  In view of this, it was recommended that Members amend the currently approved 2017-18 borrowing limits as per the tables in paragraph 16 and 17 of the report to enable new borrowing of up to £9m. 

RESOLVED: That

[1]       the Treasury Management – Mid Year Report 2017-18 be noted; and

[2]       the revised limits to borrowing activity as detailed in paragraphs 14 to 18 be approved.

The Head of Finance introduced the report which outlined the Authority’s capital and reserves position.  The report also explained the current borrowing context and sought approval from Members for officers to borrow up to £9m from the Public Works Loan Board (PWLB), when appropriate, using the best available loan option at the time of borrowing.

The Head of Finance drew Members’ attention to information within the report concerning capital.  She highlighted that the Authority had not received an annual capital grant from the Government since 2014 and that it was unlikely that such a grant would be reintroduced under the current financial constraints.  She informed Members that it was estimated that the current level of regular capital expenditure that was required (for fire appliances and operational equipment – with no allowance for IT replacement costs) was circa £1.5m to £2m at current costs. 

In relation to capital investment, the Authority had allocated £9m for the training centre project at Sadler Road and the Authority’s regular capital expenditure over the next four years was expected to be in the region of £7m.  Between £3.5m and £5.5m per new build (at current costs) was also needed to replace two or three of the Authority’s existing fire stations.  She highlighted that a significant proportion of this capital investment would need to be funded by borrowing.

The Head of Finance drew Members’ attention to the Authority’s reserves and informed Members that, based on the anticipated levels of capital investment, the reserves set aside for such purposes would be exhausted in 2019-20.  She explained that there was still a demand on the capital programme to keep investing to carry out work such as station refurbishments. 

She informed Members that the Authority’s outstanding debt at 31^st March 2017 was £1.9m.  She stated that interest rates were increasing and, with no annual capital grant funding, borrowing would be required.  She advised that the PWLB offered favourable interest rates and that there were three types of PWLB loans available: annuity, equal instalments of principal (EIP), and maturity.  The cost of each type of loan for the sum of £9m was contained within a table in the report, with interest rates included which were applicable as of 20^th November 2017.  A Member queried whether the interest rates would be fixed and the Head of Finance confirmed that they would.

A Member queried whether officers had considered leasing as an option. She also asked when officers would consider was the right time for the Authority to borrow.  The Head of Finance informed Members that leasing was an option officers considered and utilised when viable.  Officers were monitoring interest rates daily and were seeking permission from the Authority to borrow now so that a loan could be taken out at the optimum time.  She informed Members that she anticipated that it would be before the end of the financial year.  A Member indicated that the Authority must take the opportunity to borrow at the appropriate time and that she  ...  view the full minutes text for item 6.

The Director of Governance and Commissioning introduced the report which requested approval from Members for the write off of assets prior to the commencement of the programme of works at Sadler Road (training centre, vehicle workshop etc.). 

A Member queried what officers were going to do with the assets once they were written off.  The Director of Governance and Commissioning informed Members that officers would be tasked with securing any potential value from the assets and identifying any items that could be donated.

RESOLVED: That

[1]      the write off of assets valued at £39,896.15 be approved.

The Director of Governance and Commissioning introduced the report which confirmed the intended arrangements for the provision of financial advice to the Authority. The report sought approval from Members to changes to the Financial Regulations and Scheme of Delegation.  Appendix 1 to the report contained the updated Financial Regulations and Scheme of Delegation.

The Director of Governance and Commissioning explained that, following a successful recruitment process, the Authority now had a part-time Treasurer (Section 151 Officer). Members welcomed the new Treasurer who was observing the meeting.

RESOLVED: That

[1]      the arrangements for the provision of financial advice to the Authority be noted;

[2]      the changes to the Financial Regulations and Scheme of Delegation (attached as appendix 1 to the report) be approved; and

[3]      the Director of Governance and Commissioning be allowed to make such changes to the Financial Regulations and Scheme of Delegation as are necessary to allow the efficient operation of the new arrangement for the provision of financial advice to the Authority.

The Director of Governance and Commissioning introduced the report which provided an update about the situation concerning the creation of a new fire station on the existing Chester Fire Station site.  The report provided the opportunity for the Authority to confirm its intention to create a new fire station on part of the existing Chester Fire Station site and to agree to the marketing of the surplus part of the site.

RESOLVED: That

[1]      the Authority’s intention to create a new fire station on the existing Chester Fire Station site be restated; and

[2]      the marketing of the Authority’s land to be released from the redevelopment of the Chester Fire Station site be agreed.

The report provided Members with details of the proposed programme of Member meetings for 2018-19 for approval.

Meetings were scheduled to tie in with relevant dates for budgetary and policy requirements and to satisfy the requirements of the Fire Authority’s constitution. The 2018-19 timetable also included dates for a number of additional Member meetings and planning days to assist Members with diary planning for the coming year. 

Members requested that dates be scheduled in the programme of meetings for 2018-19 for the Estates and Property Committee.

RESOLVED: That

[1]       the programme of Member meetings for 2018-19 (attached as Appendix 1) be approved; and

[2]       dates be added to the programme of meetings for 2018-19 for the Estates and Property Committee.