CLEV ELAN D FI RE A UTHO RITY ORDI NARY MEE TING
30 MARCH 2012 - 2.00PM
FIRE BRIGADE HEADQUARTERS, STOCKTON ROAD, HARTLEPOOL, TS25 5TB
MEMBERS OF CLEVELAND FIRE AUTHORITY -
HARTLEPOOL : Councillors - Akers-Belcher, Richardson, Payne, Wells MIDDLESBROUGH : Councillors - Biswas, Brunton, Clark, Lancaster, Morby, Pearson REDCAR & CLEVELAND : Councillors - Briggs, Cooney, Dunning, Jeffries, Ovens STOCKTON ON TEES : Councillors - Corr, Cunningham, Gardner, O’Donnell, Stoker, Walmsley, Woodhead
A G E N D A
1. APOLOGIES FOR ABSENCE
2. DECLARATIONS OF MEMBERRS INTEREST
3. TO CONFIRM THE MINUTES OF PROCEEDINGS OF THE CLEVELAND FIRE AUTHORITY MEETING ON 10 FEBRUARY 2012
4. TO CONFIRM THE MINUTES OF COMMITTEES: - Executive Committees - 13 January and 9 March 2012 and Standards Committee - 21 FFebruary 2012
5. TO RECEIVE COMMUNICATIONS RECEIVED BY THE CHAIRMAN
6. TO RECEIVE THE REPORTS OF THE CHIEF FIRE OFFICER 6..1 Efficiency Policy and Strategy 6..2 Annualised Hours Policy aand Procedure 6..3 Draft Service Plan 2012/13 6..4 Review of Service Level Agreements for Legal and Finaancial Services 6..5 Land at Marine Fire Station, Ferry Road, Middlesbrough – to follow 6..6 Annual Service of Thanksgiving – 13 May 2012 6..7 Information Pack – March 2012
7. TO RECEIVE THE REPORT OF THE LEGAL ADVISER/MONIITORING OFFICER 7.1 Localism Act 2011 – Pay Accountability
8. TO RECEIVE THE REPORT OF THE CHAIR OF THE AUDIT AND GOVERNANCE COMMITTEE 8.1 Information Pack
9. TO RECEIVE THE REPORT OF THE CHAIR OF THE OVERVIEW AND SCRUTINY COMMITTEE 9.1 Information Pack
- 2 -
CLEV ELAND FIRE A UTHORITY ORDINARY MEETING
30 M ARCH 2012 - 2.00PM
A G E N D A
10. ANY OTHER BUSINESS WHICH, IN THE OPINION OF THE CHAIR, SHOULD BE CONSIDERED AS A MATTER OF URGENCY
11. LOCAL GOVERNMENT (ACCESS TO INFORMATION) (VARIIATION ORDER) 2006 Members are requested to passs the following resolution:- “That under Section 100(A) (4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business, on the grounds that it involves the likely disclosure of exempt informattion as defined in the paragraph below of Part 1 Scheddule 12A of the Local Government Act 1972 as amended by the Local Government (Access to Information) (Vaariation) Order 2006”.
Paragraph 3 - namely information relating to the financial or business affairs of any particular person (including the authority) holding that informatiion.
Agenda Item 12 – Paragraph 3 Agenda Item 13 – Paragraph 3 Agenda Item 14.1 – Paragraph 3 Agenda Item 14.2 – Paragraph 3
12. TO CONFIRM THE CONFIDENTTIAL MINUTES OF PROCEEDINGS OF THE CLEVELAND FIRE AUTHORITY MEETING HELD ON 10 FEBRUARY 2012
13. TO CONFIRM THE CONFIDENTTIAL MINUTES OF COMMITTTEES:- Executive Committee – 9 March 2012
14. TO RECEIVE THE REPORTS OF THE CHIEF FIRE OFFICER 14.1 Rebuild Programme – Procurement Options – to follow 14.2 FireControl Bid – to follow
15. ANY OTHER CONFIDENTIAL BUSINESS WHICH, IN THE OPINION OF THE CHAIR, SHOULD BE CONSIDERED AS A MATTER OF URGEENCY
AGENDA ITEM 3
C L E V E L A N D F I R E A U T H O R I T Y
MINUTES OF ORDINARY MEETING
10 FEBRUARY 2012
PRESENT: CHAIR:- Councillor O’Donnell – Stockton on Tees Borough Council
HARTLEPOOL BOROUGH COUNCIL Councillors Payne, Wells MIDDLESBROUGH COUNCIL Councillors Brunton, Clark, REDCAR & CLEVELAND BOROUGH C OUNCIL Councillors Briggs, Cooney, Jeffries, Ovens STOCKTON ON TEES BOROUGH COUNCIL Councillors Corr, Cunningham, Gardner, Stoker, Woodhead AUTHORISED OFFICERS Chief Fire Officer, Director of Corporate Services, Legal Adviser/Monitoring Officer, Treasurer
Councillors Akers-Belcher, Richardson (Hartlepool Borough Council) APOLOGIES FOR Councillors Morby, Pearson (Middlesbrough Council) ABSENCE: Councillor Dunning (Redcar & Cleveland Council) Councillor Walmsley (Stockton on Tees Borough Council)
96. DECLARATIONS OF MEMBERS INTEREST Councillors Briggs, Woodhead, O’Donnell and Ovens declared a personal interest (Min No. 100.1 refers).
97. MINUTES RESOLVED – that the Minutes of the Cleveland Fire Authority Meeting held on 16 December 2011 be confirmed.
98. MINUTES OF COMMITTEES RESOLVED – that the Minutes of the Executive Committee held on 13 January 2012 be confirmed. The CFO updated Members on three key areas dealt with at the Executive Committee meeting of 13 January 2012:
• Fire & Rescue Service National Framework. • Future Direction of National Fire Service College • Service Transformation: Local Agreements
The CFO referred to the tabled briefing requested by Councillor Clark at the JCC meeting of 20 January 2012. The briefing outlined how the Authority had made £2.7m efficiency savings and removed 71 posts from the organisation without the need for compulsory redundancies.
CLEVELANDCCggggg FIRE AUTHORITY ORDINARY MEETING 10.02.12
99. COMMUNICATIONS RECEIVED BY THE CHAIRMAN The Chairman outlined the following correspondence received since the last meeting: • CLG - Bob Neill MP - Fire Service College future options project
RESOLVED – that the communications be noted.
100. REPORTS OF THE CHIEF FIRE OFFICER 100.1 ARMED FORCES COMMUNITY COVENANT The Chair sought clarity from the Legal Adviser / Monitoring Officer (LAMO) in connection with declarations of interest for this matter. The LAMO advised that Members who had previously served with, or had relatives serving with, the armed forces should declare a personal interest. Councillor Briggs, Woodhead, O’Donnell and Ovens declared a personal interest.
The CFO provided Members with an outline of the Armed Forces Community Covenant and confirmed this report had been submitted to the Executive Committee meeting on 13 January 2012 for consideration prior to being presented to the Authority. He acknowledged an historical link between the Fire and Rescue Service and the Armed Forces and informed Members that the Authority had been approached by Hartlepool Borough Council to consider signing up to the Covenant.
RESOLVED: (i) that the Authority approve the signing of the Armed Forces Community Covenant.
100.2 INFORMATION PACK – FEBRUARY 2012 100.2.1 Fire and Rescue Service Monthly Bulletins 100.2.2 Employers Circulars 100.2.3 Queen’s Diamond Jubilee Medal
The CFO reported that the current criteria for emergency services personnel to be eligible to receive a Queen’s Diamond Jubilee Medal was a minimum of 5 years’ service as at 6 February 2012 and they must deal with emergencies as part of their conditions of service. He noted that under this criteria approximately 200 members of staff would not be eligible to receive a medal and proposed that a momento of the royal occasion be presented to those falling into this category, based on an estimated total cost of approximately £700 to the Authority.
Councillor Briggs supported this proposal based on recognising the work of ‘all’ members of staff. Councillor Wells agreed, adding it would be disappointing for some people to miss out due to a technicality.
100.2.4 Royal Garden Parties Nomination
The CFO informed Members that retained Firefighter Thomas Paterson from Saltburn had been nominated to attend the Royal Garden Party on behalf of the Authority. Firefighter Paterson was considered a worthy candidate as he has worked as a retained Firefighter for 22 years without sickness.
2
CLEVELANDCCggggg FIRE AUTHORITY ORDINARY MEETING 10.02.12
100.2 INFORMATION PACK – FEBRUARY 2012 (cont) RESOLVED:
(i) that the report be noted. (ii) that Members agreed that all members of staff not eligible to receive the Queen’s Diamond Jubilee Medal should receive a momento of the royal occasion.
Councillor Wells left the meeting
101 JOINT REPORT OF THE CHIEF FIRE OFFICER AND THE TREASURER 101.1 Medium Term Financial Strategy 2012/13 to 2014/15 and 2012/13 Council Tax Level The Treasurer reported that the Medium Term Financial Strategy and the Budget for 2012/13 had been particularly challenging due to the impact of the fundamental deterioration in public finances and the Government’s clear course to address this by significant reductions in public spending over the next three years. He reported that for the second year running, the Authority received the second greatest reduction in Grant Settlement across all Fire Authorities (1.7%) further reducing its spending power. The actual grant allocation confirmed for 2012/13 was £19.567m and the projected position for the last two years of the Comprehensive Spending Review (CSR) period was expected to be £18.2m and £16.8m respectively.
The Treasurer detailed the following areas:
• Forecast Outturn for 2011/12 • Capital Programme, Prudential Code and Treasury Management Strategy • Revenue Budget 2012/12 and indicative Forecasts for 2012/13 to 2014/15 • 2012/13 Tax Base and Collection Fund • Robustness of Budget Forecasts and Reserves
Councillor Payne referred to the Capital Strategy Programme detailing how the Authority’s Asset Management Plan will be funded and noted that some of the stations were in an extremely poor state of repair and sought information about plans to rebuild. The CFO outlined the timescales contained within the Asset Management Plan and reported that the Headland and Middlesbrough were a priority due to their poor working conditions and limited community facilities. He also reported that at present the cost of maintaining Brigade Headquarters in Hartlepool outweighed its value and on that basis this was also a priority to rebuild. Councillor Payne championed Redcar’s Community Fire Station and said he was pleased Headland Fire Station had been earmarked as a priority.
Councillor Payne left the meeting
The Treasurer outlined the proposed Council Tax increase of 3.95% for 2012/13, as recommended by the Executive Committee at its meeting on 13 January 2012, which equates to 5 pence per week on a Band D property. He reported that the other option considered was to take the Government’s one-year Council Tax Freeze Grant which would be the equivalent of a 3% Council Tax increase (approx. £3.3k) but would have implications on the longer term stability and sustainability of the Authority’s Council Tax income.
3
CLEVELANDCCggggg FIRE AUTHORITY ORDINARY MEETING 10.02.12
101.1 Medium Term Financial Strategy 2012/13 to 2014/15 and 2012/13 Council Tax Level (cont) Councillor Briggs commended the use of ‘pence’ as well as giving percentages in the Authority’s draft Council Tax leaflet which he felt put the increase into perspective. Councillor Stoker questioned why Council Tax leaflets refer to Band D properties when a significant number across Cleveland fell into lower bands. The Treasurer reported that the Authority was legally obliged to quote Band D figures for comparative purposes and pointed out that the Authority was not obliged to circulate leaflets but did need to have them available should they be requested. He suggested this was something the Authority may wish to consider for further discussion in the future.
RESOLVED: (i) That the proposal to earmark the 2012/13 underspend to support the revenue budget and capital investment plans in 2012/13 and beyond as the financial position becomes more challenging and the use of reserves on an ‘invest to save basis’ to address the needs to significantly reduce the overall budget requirement over the next three years be approved. (ii) That the provisional 2012/13 Capital Programme as set out in the report be approved. (iii) That the inclusion within the budget plans for investment in the Authority’s estate to address the deteriorating position of the Authority’s operational and administrative buildings be approved. (iv) That the 2012/13 revenue budget as detailed at Appendix A of the report be approved. (v) That the recommendation of the Executive Committee to confirm the 3.95% rise in Council Tax, which equates to a Band D Council Tax of £66.50 (£1.28 per week) and supporting statutory calculations as detailed at Appendix B, be approved. (vi) That the indicative Council Tax increases for 2013/14 and 2014/15 of 5 pence per week (£2.63 per year) and 5 pence per week (£2.73 per year) respectively giving indicative tax levels at Band D of £69.13 (£1.33 per week) and £71.86 (£1.38 per week) respectively be approved.
102 REPORT OF THE DIRECTOR OF CORPORATE SERVICES 102.1 Cleveland Fire Authority Meetings 2012/13 The Director of Corporate Services (DCS) referred to the proposed schedule of CFA meetings for 2012/13, as attached at Appendix 1, and invited Members’ views regarding the criteria at paragraph 3.1. Councillor Briggs confirmed that Friday meetings continued to fit in well with Council commitments and some Members requested further information about the proposed cessation of Safer Partnerships Briefings. The DCS reported that these were informal briefings between a CFA representative from each District, the District Managers and the Director of Community Protection (DCP). These meetings provided a forum to share and compare trends and initiatives across the Districts but historically have not been well attended. The DCS pointed out that all Members now receive performance information for their District and that one-to-one meetings with District Managers and the DCP may be a preferable arrangement. Councillor Cunningham supported the proposal.
RESOLVED: (i) that Members approved the Cleveland Fire Authority Meeting schedule for 2012/13. (ii) that Members agreed the new format of Safer Partnership representative meetings.
4
CLEVELANDCCggggg FIRE AUTHORITY ORDINARY MEETING 10.02.12
103. REPORT OF THE TREASURER 103.1 Treasury Management Strategy 2012/13 The Treasurer outlined the Authority’s Treasury Management Strategy for 2012/13, which included Prudential Indicators for 2012/13 – 2014/15 and confirmed that the strategy fulfilled the key legislative requirements, detailing the following issues: • Economic Background and Outlook for Interest Rates • Prudential Indicators • Capital Financing Requirement • Borrowing strategy • Investment Strategy The Treasurer stated that the Strategy was subject to scrutiny by the Audit & Governance Committee, which will monitor it on behalf of Authority.
RESOLVED: (i) That the Prudential Indicators and Limits relating to the Capital Expenditure for 2012/2013 to 2014/2015 as detailed in sections 5 and 6 of the report, be approved. (ii) That the continuation of the netting down of investment and borrowing noting that specific loans will be taken out for schemes approved on the basis of individual business cases, be approved. (iii) That the Treasury Prudential Indicators and the Minimum Revenue Provision (MRP) Statement in section 7 be approved. (iv) That the Treasury Prudential Indicators in section 8 be approved. (v) That the Investment Strategy Counterparty Criteria contained in section 8 be approved and the further restriction of operational limits be noted. (vi) That the Treasury Management Limits on activity in section 9 be approved.
104. LOCAL GOVERNMENT (ACCESS TO INFORMATION) (VARIATION ORDER) 2006 RESOLVED - “That under Section 100(A) (4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business, on the grounds that it involves the likely disclosure of exempt information as defined in the paragraphs below of Part 1 Schedule 12A of the Local Government Act 1972 as amended by the Local Government (Access to Information) (Variation) Order 2006.” Paragraph 3.
Paragraph 3: namely information relating to the financial or business affairs or any particular person (including the authority holding the information).
105. CONFIDENTIAL MINUTES OF COMMITTEES RESOLVED – that the Confidential Minutes of the Executive Committee held on 13 January 2012 be confirmed.
106. ANY OTHER CONFIDENTIAL BUSINESS 106.1 Community Interest Company The CFO updated Members on the CIC.
106.2 Removal of Potential Hazard Councillor Ovens thanked the Brigade for its role in removing potential hazard.
COUNCILLOR JEAN O’DONNELL CHAIR
5
AGENDA ITEM 4
C L E V E L A N D F I R E A U T H O R I T Y
MINUTES OF EXECUTIVE COMMITTEE MEETING
13 JANUARY 2012
PRESENT: CHAIR Councillor O’Donnell – Stockton on Tees Borough Council HARTLEPOOL BOROUGH COUNCIL Councillor Payne MIDDLESBROUGH COUNCIL Councillor Brunton REDCAR AND CLEVELAND BOROUGH COUNCIL Councillors Briggs, Ovens STOCKTON ON TEES BOROUGH COUNCIL: Councillors Woodhead, Corr AUTHORISED OFFICERS Chief Fire Officer, Director of Corporate Services, Treasurer, Legal Adviser/Monitoring Officer
88. DECLARATIONS OF INTEREST The following Declarations of Interest were submitted to the meeting: Councillors Briggs and Woodhead declared a personal interest as Army veterans (Min No. 92.1 refers).
89. MINUTES
RESOLVED – that the minutes of the Executive Committee meeting held on 25 November 2011 be confirmed.
90. REPORTS OF THE CHIEF FIRE OFFICER 90.1 Fire & Rescue Service National Framework The Chief Fire Officer (CFO) referred to the Government’s draft Fire & Rescue National Framework consultation document, which outlined the priorities and objectives for Fire and Rescue Authorities (FRAs) regarding the discharge of their functions. The draft comprised of four chapters: Safer Communities; Accountable to Communities; Assurance; and Legislation. It also proposes to reset the relationship between Central Government and FRAs by putting greater emphasis on local accountability and areas of national interest, including resilience.
The CFO advised that the overall tone of the consultation appeared more directive and less prescriptive than the previous framework and asked Members to consider how this compared with their vision for Cleveland Fire Authority. He reported that the Integrated Risk Management Plan (IRMP) which was currently contained within the annual Service Plan, would need to incorporate national resilience and interoperability under the new framework.
Councillor Payne expressed concern that issues usually dealt with by Central Government were being passed down to FRAs (de-centralisation) and requested a letter be sent to the CLG outlining these concerns and that they be included in the Authority’s draft response to the consultation.
CFA EXECUTIVE COMMITTEE 13 JANUARY 2012
90.1 Fire & Rescue Service National Framework cont. It was agreed that a full analysis and response be presented to the Executive Committee meeting on 8 March 2012 to meet the 19th March 2012 consultation deadline.
RECOMMENDED:
(i) That the report be noted (ii) That a letter be sent to the CLG, on behalf of the Authority, expressing concerns about de-centralisation. (iii) That a further detailed report on the impact analysis of the draft National Framework be received. (iv) That a draft response, including concerns about de-centralisation, be brought to the Executive Committee meeting on 8 March 2012.
90.2 Future Direction of National Fire Service College The CFO updated Members on the Government’s latest thinking regarding the future ownership and governance options for the National Fire Service College. He advised that the College had been running at a loss over the last decade and a phase of pre-market engagement concluded that there were a number of private sector organisations interested in managing and potentially owning the College.
The CFO referred to the letter received from Neil O’Connor, Director of Fire, Resilience & Emergencies, offering all FRSs the opportunity to buy into a ‘Limited Liabilities Partnership’ which would make them joint 10% owners of the College for a nominal fee of £1. The letter stressed that ‘Membership of the partnership would carry no actual or potential liabilities, but potential for some reasonably significant upside.’ The other option contained within the letter was for FRSs to invest reserves directly into the College for a larger percentage ownership.
The CFO expressed concern that the first option of investing in a partnership share of 10% for a nominal fee was to establish a strong client list to attract potential buyers. In relation to the second option, the CFO expressed concern that there was no information regarding commercial viability, return for investment, what the current financial state of the College is or its future plans.
The Treasurer’s view was to exercise caution as it was not known what liabilities may arise in the future. He advised Members that investing reserves was not an option, as there was not enough information to make a decision upon.
Councillor Ovens questioned how valuable an asset the College was to the Brigade and if it has been losing money year-on-year why we would consider investing in it. The CFO pointed out that the strength and value of the College as it stood was in its uniqueness as an operational training resource.
Councillor Payne pointed out that some CFOs had expressed an interest in investing in the building and questioned how they could have made that decision based on limited information and could it end up being sold for housing?
The CFO noted that 80% of the College’s current business was with FRSs which puts them in strong position as a client. Page 2
CFA EXECUTIVE COMMITTEE 13 JANUARY 2012
90.2 Future Direction of National Fire Service College cont. He added that discussions had taken place around safeguarding the building as an educational establishment but the Government was reluctant to limit potential buyers.
Councillor Corr asked who currently runs/owns the building. The CFO reported that the College was currently Government owned and had seen a high turnover of ownership due to past financial problems. The leadership was run by civil servants and 80% of staff were seconded from FRSs.
The CFO suggested a letter be sent advising that in the absence of meaningful information the Authority had reserved its judgment.
RECOMMENDED:-
(i) that the report be noted. (ii) that a letter be sent to the CLG requesting further information. (iii) that the Authority reserve judgment on both the Limited Liability Partnership arrangement option and the option of investing a proportion of reserves, pending the provision of further information from CLG.
90.3 Service Transformation: Local Agreements The CFO updated Members on the progress of negotiations with the Fire Brigades Union (FBU) regarding the implementation of the revised Duty System and the application of Annualised Hours for Grey Book Staff. He explained that the new arrangement involved changes to terms and conditions to some staff and significant staff establishment changes. A final agreement letter was to be presented to the FBU on 13 January 2012 which referred to the implementation of Local Agreement No.12: Revision of Grey Book Duty Systems, dealing with the following issues:
(i) Flexible Duty System – Annualised Hours Working Arrangements (ii) Control Staffing Review & Annualised Hours Working Arrangements (iii) Review of Local Agreement No. 3 Section 6/7 – Detached Duty Arrangements (iv) Revised working arrangements and operational mobilisation of employees in the role of Watch Manager (station-based personnel only) (v) Facilities Time Agreement to facilitate paid time off for FBU trade union officials to enable the fulfillment of their duties and training and unpaid time off for trade union activities
The CFO reported that agreement had already been reached on Detached Duty Payments, as outlined in Local Agreement No 13: Time Off and Facilities Agreement. Agreement had also been reached on the issue of Disturbance Allowance, as outlined in Local Agreement No. 14: Disturbance Allowance Agreement.
Councillor Brunton stated that it was a sensible arrangement to have Watch Managers in cars. Councillor Briggs congratulated the Brigade’s Managers on maintaining a close relationship with the unions and for its ongoing negotiations. He also raised the issue of whether electric cars had been looked at as an option for Watch Managers.
Page 3
CFA EXECUTIVE COMMITTEE 13 JANUARY 2012
90.3 Service Transformation: Local Agreements cont. The CFO reported a change in profile to the Brigade’s fleet which included an additional eight cars for use by Watch Managers and the removal of some surplus larger vehicles from stations. He confirmed that at the current time the entire fleet was diesel but he was waiting for the outcome of an evaluation into how viable it would be to change a portion of the fleet to electric and this would be reported back to this committee.
RECOMMENDED:
(i) That the content of the report be noted (ii) That further reports be received as appropriate
91. TO RECEIVE THE REPORTS OF THE TREASURER 91.1 LGA Summary of Resource Review The Treasurer updated Members on the Government’s response to the consultation on the Retention of Business Rates made on 19th December 2011, summarised at Appendix A. The response confirmed that Fire Authorities would be included in the scheme for Retention of Business Rates and that Cleveland would receive a percentage share of each District Council’s business rate baseline subject to tariffs and top-ups required to bring the funding to the baseline. The Treasurer noted that the scheme was yet to be finalised by Government and agreed to bring further reports to Members so the impact on the Authority can be properly assessed.
RECOMMENDED:
(i) That the Government’s response be noted (ii) That further reports be received as appropriate
91.2 Provisional Medium Term Financial Strategy The Treasurer reported the implications of the Comprehensive Spending Review (CSR) delivered by the Government in October 2010 and noted that the Parliamentary Under Secretary of State wrote to Fire Authorities informing them that the reduction to the formula grant would be 25% over four years. As this makes up roughly two thirds of the Authority’s local spend we are expected to be hit disproportionately hard.
The Treasurer reported a Forecast Outturn for 2011/12 of £1m underspend owing to the pay freeze implemented by the Government, vacant posts in the establishment and the cancellation of the PFI scheme by the Government on 22 November 2010.
He reported a provision of 2% pay inflation for 2012/13 and for 2013/14 and 2014/15 the forecast will be based on a planning assumption of 1%. The general planning assumption for non-pay inflation is zero for 2011/12 and 2012/13, then 2% after that. The budget support fund will continue to support the revenue budget over the period 2013/14 to 2015/16 and this strategy should also ensure the Authority maintains minimum uncommitted reserves of around 3% of the revenue budget, subject to a risk assessment.
Page 4
CFA EXECUTIVE COMMITTEE 13 JANUARY 2012
91.2 Provisional Medium Term Financial Strategy cont. The Treasurer reported that the current MTFS was based on a council tax freeze in 2012/13 then indicative increases of 6% and 10%. All Authorities froze council tax for 2011/12 and will face a loss of funding in 2015/16 when this grant is removed. He reported that if Members decided to freeze Council Tax for 2012/13 the Authority would receive a one-off Council tax freeze grant of approximately £0.328m to offset the loss of additional income from the equivalent 3% Council Tax increase. However, as this is only payable for 1 year the Council Tax base would reduce by £0.328m and is likely to result in an increased budget deficit for 2013/14.
The Treasurer suggested Members review the existing indicative Council Tax increases and determine if they wish to approve alternative increases. He advised Members that the budget forecasts and the proposed level of balances suggested for 2012/13 were robust, based on detailed budget forecasts undertaken by the CFO and Brigade Officers, the level of Government Grant to be provided, a prudent view of the Authority’s overall cash flow (including repayment of prudential borrowing) and the establishment of at least a minimum level of reserves consistent with the identified specific risks.
The CFO informed Members that the Capital Strategy for estates had just been re- evaluated to assess whether it was still deliverable under the costs being provided. He agreed to bring this back to the Executive Committee when the evaluation was completed.
Councillor Payne said he was unable to support the recommendation to increase Council Tax for the Authority*. Councillor Ovens said she was happy to support the increase and asked how the Authority could get Cleveland’s unique ‘risk’ element over to the Government. The CFO pointed out that the Fire & Rescue Service National Framework consultation was an opportunity for the Authority to highlight any areas of concern and added that any potential disaster would rely heavily on the resources from neighbouring Authorities.
The CFO took direction from the Legal Advisor to advise Members that they were directly appointed to a unitary Authority and not answerable to their district councils and were required to make a personal judgment on Authority issues.
Councillor Woodhead asked whether Cleveland’s MPs were actively representing the Authority in relation to the grant formula. The CFO confirmed they all took a keen interest and any issues put to them were engaged. Councillor Woodhead agreed to raise awareness of this issue at the Stockton Conservative group meeting.
RECOMMENDED:
(i) That the report be noted (ii) That the 3.95% rise in Council tax for 2012/13 be approved. (iii) That the indicative rises for 2013/14 and 2014/15 of 3.95% be approved (iv) That the Capital Strategy evaluation for Estates be presented to a future meeting.
Page 5
CFA EXECUTIVE COMMITTEE 13 JANUARY 2012 *At Executive Committee meeting on 9 March 2012, it was agreed that the following amendment be made to the seventh paragraph of Minute No 91.2. – remove – and abstained from the vote.
92. ANY OTHER BUSINESS 92.1 Armed Forces Community Covenant The CFO tabled a letter from Nicola Bailey, Chief Executive of Hartlepool Borough Council, asking the Authority to consider signing up to the Armed Forces Community Covenant. Members were in favour of signing the Covenant and agreed this should be presented to the next CFA meeting.
RECOMMENDED: that the Armed Forces Community Covenant be approved for signature by the Authority.
93. LOCAL GOVERNMENT (ACCESS TO INFORMATION) (VARIATION ORDER) 2006 RESOLVED “That under Section 100(A) (4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business, on the grounds that it involves the likely disclosure of exempt information as defined in the paragraphs below of Part 1 Schedule 12A of the Local Government Act 1972 as amended by the Local Government (Access to Information) (Variation) Order 2006.” Minute No. 71 – Paragraphs 3 and 4 Minute No. 72.1 – Paragraph 4 Minute No. 73 – Paragraph 4
Paragraph 3: namely information relating to the financial or business affairs or any particular person (including the authority holding the information). Paragraph 4: namely information relating to any consultations or negotiations, or contemplated consultations or negotiations, in connection with any labour relations matter arising between the authority or a Minister of the Crown and employees of, or office holders under, the authority.
94. CONFIDENTIAL MINUTES
RESOLVED – that the Confidential Minutes of the Executive Committee meeting held on 25 November 2011 be confirmed.
95. ANY OTHER CONFIDENTIAL BUSINESS 95.1 Community Interest Company (CIC) The CFO updated Members on the CIC.
COUNCILLOR J O’DONNELL CHAIR
Page 6
AGENDA ITEM 4
C L E V E L A N D F I R E A U T H O R I T Y
MINUTES OF EXECUTIVE COMMITTEE MEETING
9 MARCH 2012
PRESENT: CHAIR Councillor O’Donnell – Stockton on Tees Borough Council HARTLEPOOL BOROUGH COUNCIL Councillor Payne MIDDLESBROUGH COUNCIL Councillor Brunton REDCAR AND CLEVELAND BOROUGH COUNCIL Councillors Briggs, Ovens STOCKTON ON TEES BOROUGH COUNCIL: Councillor Woodhead AUTHORISED OFFICERS Chief Fire Officer, Director of Corporate Services, Treasurer, Legal Adviser/Monitoring Officer APOLOGIES: Councillor Corr – Stockton on Tees Borough Council
110. DECLARATIONS OF INTEREST The Legal Adviser/Monitoring Officer declared a personal interest in Agenda Item 4.4 (Min No. 112.4 refers).
111. MINUTES Councillor Payne referred to Min No 91.2 paragraph 7 of the Executive Committee held on 13 January 2012 and stated that a vote had not been taken at the meeting on the recommendation to increase Council Tax, there had only been a consensus of opinion. He asked for the Minutes to be amended to reflect this.
RESOLVED – that the minutes of the Executive Committee meeting held on 13 January 2012 be amended with the removal of ‘and abstained from the vote’ and the amended Minutes be approved at the CFA Meeting on 30 March 2012.
112. REPORTS OF THE CHIEF FIRE OFFICER 112.1 Fire & Rescue Services National Framework – Response to the Consultation The Chief Fire Officer provided Members with background information regarding the National Framework Consultation published by the Department for Communities and Local Government (DCLG). He identified the Government’s priorities for Fire Authorities as set out in the Framework and confirmed that the Consultation deadline was 16 March 2012 which would enable Members views to be included.
The Chief Fire Officer detailed the proposed CFA responses which rather than answering the four consultation questions directly, focused on the key issues raised by Members of Cleveland Fire Authority.
CFA EXECUTIVE COMMITTEE 9 MARCH 2012
112.1 Fire & Rescue Services National Framework – Response to the Consultation (cont) Members considered and approved the proposed response to the National Framework Consultation.
RESOLVED: that the proposed response to the Fire & Rescue Services National Framework Consultation be approved.
112.2 Efficiency Policy & Strategy The Chief Fire Officer reported on the Efficiency Policy, which focused and embeded the Brigade’s efficiency arrangements to support the realisation of the Authority’s vision of delivering high quality cost effective services and the Efficiency Strategy, which acts as a framework to support the Brigade in addressing the financial challenges faced.
The Strategy will be reviewed on an annual basis to ensure it takes into account the new Comprehensive Spending Review, any budget settlements, other economic, environmental and political factors and most importantly, it reflects the Medium Term Financial Strategy of the Authority.
Councillor Payne thanked the Director of Corporate Services and her team for the success of the challenging service transformation programme and he queried the statements made on page 9 of the Efficiency Strategy under the Efficiency Challenge. The Director of Corporate Services agreed that the statements were from a national report and were without context.
RECOMMENDED:- (i) that the report be noted. (ii) that the Efficiency Policy (Appendix 1) be recommended for approval by the Fire Authority at its meeting on 30 March 2012. (iii) that the Efficiency Strategy (Appendix 2) be noted.
112.3 Annualised Hours Policy & Procedure The Chief Fire Officer reported that as part of the Service Transformation Programme, the introduction of Annualised Hours was included in the revised Duty Systems business report which was approved for implementation by the Fire Authority at its meeting on 25 March 2011.
He confirmed that the Annualised Hours Policy, which was included for noting, has now been agreed by both the FBU and Unison.
The Chief Fire Officer confirmed that discussions regarding the procedure were still ongoing although he had received verbal agreement.
The Director of Corporate Services reported that an IT System to assist in the recording and management of Annualised Hours had been procured.
RECOMMENDED – that the agreed Annualised Hours Policy and Procedure at Appendices 1 and 2 were noted.
Page 2
CFA EXECUTIVE COMMITTEE 9 MARCH 2012
112.4 Review of Service Level Agreements for Legal and Financial Services The Legal Adviser/Monitoring Officer declared a personal interest in the review.
The Chief Fire Officer reported that the Legal Services Service Level Agreement (SLA) was reviewed and renewed on 1 April 2011 and runs through to 31 March 2014 with the Financial Services SLA expiring on 31 March 2012. Both SLA’s are with Hartlepool Borough Council and continue to provide value for money.
The Chief Fire Officer advised that due to increased work emanating from accounting and changes and new legislation, it is proposed that the Legal Services SLA be increased by £2,500 pa with a full programmed review of the SLA to take place during 2013/14 and the Financial Services SLA be increased by £3,500. As the implementation of the International Financial Reporting Standards is on-going, it is proposed to extend the SLA for Financial Services for a further twelve months with a full review programmed in the current year with the aim of agreeing a new SLA for 1 April 2013.
RECOMMENDED – that approval of the points a and b (below) be recommended to the Fire Authority at its meeting on 30 March 2012: a) increased charges for the SLA’s for Legal and Financial Services, with an increase of £2,500 pa for Legal Services and an increase of £3,500 pa for Financial Services arising from increased work emanating from accounting changes and new legislation. b) an extension of 12 months to the Financial Services SLA with a full review during 2012/13 to maintain continuity during the full implementation of International Financial Reporting Standards.
112.5 Marine Fire Station – Request for Easement Middlesbrough Council The Chief Fire Officer stated that a request had been received from Middlesbrough Council to be granted a right of way (by way of a legal Easement) over land at Marine Fire Station in Middlesbrough.
He advised that the land in question comprises of an area currently used for parking at the side/rear of the Fire Station and part of the site projects over the River Tees and is a deck support on posts and joints. The request has been made to allow controlled public access to a passenger lift to be located on a platform in the River Tees Adjacent to Marine Fire Station. This lift would be predominantly for emergency purposes.
The Legal Adviser/Monitoring Officer clarified the meaning of an Easement explaining that it creates a legal right of access for a specified period of time, in this case Middlesbrough Council have requested 50 years. He confirmed that the Easement would remain in place if the land was sold.
Members discussed the various options available and agreed that further negotiation is required with Middlesbrough Council and that a report detailing the outcome of those negotiations should be taken to the Fire Authority meeting on 30 March 2012.
Page 3
CFA EXECUTIVE COMMITTEE 9 MARCH 2012 112.5 Marine Fire Station – Request for Easement Middlesbrough Council (cont)
RECOMMENDED:- (i) that the report be noted. (ii) that further negotiations be held with Middlesbrough Council with regard to access over the land at Marine Fire Station. (iii) that a report be submitted to the Fire Authority meeting on 30 March 2012 detailing the outcome of the negotiations with Middlesbrough Council.
113. TO RECEIVE THE REPORT OF THE LEGAL ADVISER AND MONITORING OFFICER 113.1 Localism Act 2011 – Pay Accountability The Legal Adviser/Monitoring Officer (LAMO) reported that the Localism Act 2011 requires the Authority to prepare a Pay Policy Statement (PPS) for the financial year 2012/13 and each subsequent financial year. He detailed what must be contained within the PPS and explained that it must be approved by a resolution of the Authority before it comes into force and then be published on the Authority’s website.
The LAMO highlighted the guidance issued by DCLG at Appendix 1 of the report and confirmed that Cleveland Fire Authority’s Pay Policy Statement (attached at Appendix 2 of the report) had been produced in line with the provisions of the Localism Act 2011 and the guidance issued by DCLG.
RECOMMENDED: (i) that Cleveland Fire Authority’s Pay Policy Statement (PPS) proposed at Appendix 2 be considered. (ii) that in light of those considerations, the Pay Policy Statement proposed at Appendix 2 be recommended for approval by the Fire Authority at its meeting on 30 March 2012. In line with the provisions set out in the Localism Act 2011, the statement is required to be approved and published by Fire and Rescue Authorities by 31 March each year.
114. LOCAL GOVERNMENT (ACCESS TO INFORMATION) (VARIATION ORDER) 2006 RESOLVED “That under Section 100(A) (4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business, on the grounds that it involves the likely disclosure of exempt information as defined in the paragraph below of Part 1 Schedule 12A of the Local Government Act 1972 as amended by the Local Government (Access to Information) (Variation) Order 2006.” Minute No. 115 – Paragraph 3 Minute No. 116.1 – Paragraph 3 Minute No. 117.1 – Paragraph 3
Paragraph 3: namely information relating to the financial or business affairs or any particular person (including the authority holding the information).
Page 4
CFA EXECUTIVE COMMITTEE 9 MARCH 2012
115. CONFIDENTIAL MINUTES
RESOLVED – that the Confidential Minutes of the Executive Committee meeting held on 13 January 2012 be confirmed.
116. TO RECEIVE THE REPORT OF THE CHIEF FIRE OFFICER 116.1 Call Management & Mobilising Strategy 2011-16 (Fire Control Bid) The Chief Fire Officer informed Members of the Outcome of the Authority’s Bid into the Governments Fire Control Services Grant.
117. TO RECEIVE THE REPORT OF THE TREASURER 117.1 Regional Control Funding Update The Treasurer provided Members with a Regional Control Funding Update.
COUNCILLOR J O’DONNELL CHAIR
Page 5 AGENDA ITEM 4
C L E V E L A N D F I R E A U T H O R I T Y
MINUTES OF STANDARDS COMMITTEE MEETING
21 FEBRUARY 2012
PRESENT: INDEPENDENT MEMBERS: Mr J B Gray (Chair), Mr R Dennis (Vice Chair), Mr K Kelly REDCAR & CLEVELAND BOROUGH COUNCIL Councillor Briggs STOCKTON ON TEES BOROUGH COUNCIL Councillors Stoker, Woodhead AUTHORISED OFFICERS Legal Adviser/Monitoring Officer, Head of Corporate Support
APOLOGIES FOR Councillor Clark – Middlesbrough Council ABSENCE: Councillor Ovens – Redcar & Cleveland Borough Council
In accordance with Standing Order No. 35, Councillor Stoker substituted for Councillor Clark. 107. DECLARATIONS OF MEMBERS INTERESTS It was noted no Declarations of Interest were submitted to the meeting.
108. MINUTES RESOLVED – that the Minutes of the Standards Committee held on 12 July 2011 be confirmed.
109. TO RECEIVE THE REPORT OF THE LEGAL ADVISER 109.1 Business Report 109.1.1 The Standards Board Regime The Legal Adviser reported that the regulatory role of the Standards Board in handling cases on behalf of local authorities and issuing guidance ceased on 31 January 2012 and that any referrals or investigations which had not been completed had been referred back to the relevant authority for completion.
The Legal Adviser confirmed that content from the Standards for England website was currently being transferred to the National Archives. He explained that although communication from the Standards Board indicated that DCLG had yet to confirm when the other elements of the Localism Act, 2011, relating to Standards, will come into force, it had been intimated by DCLG that the ‘new’ system was to be effective from ‘the start of the municipal year’. However, following receipt of a letter from DCLG by the Association of Council Secretaries and Solicitors, it now seems that a later date may apply.
The Legal Adviser reported that some Local Authorities are considering combining their Standards Committee with their Audit & Governance Committee.
Councillor Stoker pointed out that Members of the Authority also have their own Local Authority and asked if it would be possible for two different Standard Committees to be dealing with the same issue. The Legal Adviser commented that whichever Standards Committee would be best to address the issue would deal with the case. CFA STANDARDS COMMITTEE 21.02.2012
109.1.2 The Localism Act, 2011 The Legal Adviser reminded Members of the ethical standards contained within the Localism Act which received Royal Assent on 15 November 2011. He explained that certain provisions of this legislation are dependent upon formal Commencement Orders.
The Legal Adviser reported that each ‘relevant authority’ must adopt a Code which deals with the conduct expected of Members and voting Co-opted Members when acting in that capacity. He detailed that any Code of Conduct must be consistent with a set of general principles of selflessness, integrity and objectivity, accountability, openness, honesty and leadership and noted that the principles of ‘personal judgement’, ‘duty to uphold the law’, ‘stewardship’ and ‘respect for others’ would not be a mandatory requirement of the new Code of Conduct.
The Legal Adviser stated that the Code must also include provisions in respect of the registration of interests and the disclosure of ‘pecuniary interests’ and in respect of interests other than pecuniary interests. He reported that an authority may either revise its existing Code or adopt a new Code.
The Legal Adviser highlighted a draft Code of Code appended to the report which is currently being developed through the Association of Council Secretaries and Solicitors. Members commented that they would be happy to include an amount of £25 for declaration of gifts and hospitality.
The Legal Adviser detailed the arrangements under the Localism Act, 2011 with regard to registration of interests and explained that it becomes a criminal offence to fail to notify the Monitoring Officers of an interest, or to participate in a meeting or to take a decision, without reasonable excuse. It will also be an offence to knowingly or recklessly provide false or misleading information.
109.1.3 Sanctions and Independent Persons – Counsel’s Advice The Legal Adviser explained that in order to assist authorities in adopting the new standards arrangements, the Association of Council Secretaries and Solicitors sought the advice of Clive Sheldon QC on two areas requiring some clarification:
- The nature and scope of any action lawfully available to authorities in respect of those Members found to have failed to comply with the authority’s Code of Conduct in the ‘new standards framework’ - Whether a former independent Member of an authority’s Standards Committee is lawfully able to become an independent person under Section 28 of the Localism Act, 2011
Counsel highlighted the following possible sanctions:
- A formal letter to the Member found to have breached the Code - Formal censure through motion - Removal of a Member from Committees subject to statutory and constitutional requirements. - Press Release/publicity
2 CFA STANDARDS COMMITTEE 21.02.2012
109.1.3 Sanctions and Independent Persons – Counsel’s Advice cont In the opinion of Counsel ‘it is not permissible for an Independent Member to serve as the ‘independent person’. The Legal Adviser detailed to Members when a person is not classed as being independent. He advised that the vacancy for an independent person must be advertised, the person should have responded with an application and the appointment should be approved by the majority of Members of the authority.
Following discussion, Members requested if a letter could be drafted to Eric Pickles of DCLG requesting that the position regarding Independent Members becoming Independent Persons of the Standards Committee be reconsidered so that the knowledge base and skills set are not lost
The Legal Adviser advised that a further meeting of the Standards Committee would be required to discuss the Terms of Reference and Code of Conduct once additional guidance has been received.
RESOLVED: i) that the report be noted. ii) that a letter be forwarded to Eric Pickles MP, Secretary of State for Communities and Local Government requesting that the criteria for becoming an Independent Person reviewed. iii) that a meeting of the Standards Committee be arranged once further guidance has been received.
J B GRAY CHAIR
3 AGENDA ITEM 6.1 CLEVELAND FIRE AUTHORITY MEETING 30 MARCH 2012
EFFICIENCY POLICY AND STRATEGY
REPORT OF THE CHIEF FIRE OFFICER
For Approval
1. Purpose of the Report
1.1 To seek Members considerations on the Efficiency Policy and Strategy as attached at Appendix 1 and 2.
2. Recommendations
2.1 That Members note the report.
2.2 That Members ratify the Executive Committees recommendation to approve the Efficiency Policy as attached at Appendix 1.
2.3 That Members note the Efficiency Strategy as attached at Appendix 2.
3. Background
3.1 The Government published its Comprehensive Spending Review (CSR) 2010 in October 2010 which presented Cleveland Fire Authority with exceptional and unprecedented financial challenges. The Fire and Rescue Services Grant was cut by 25% which translated into a financial deficit for Cleveland of £8.9m to address by 2014/15.
3.2 The Fire Authority took the decision that, despite these financial challenges, priorities would remain the same with the focus on continuing to deliver a balanced strategy of prevention, protection and response.
3.3 As part of the Authority’s strategic and financial planning arrangements, the Brigade’s Strategic Management embarked upon developing a Service Transformation Programme to proactively identify even more efficient ways in which the Authority operates and how the Brigade can continue to deliver greater value for money services to the community it serves.
3.4 The Executive Committee considered the Efficiency Policy and Strategy at its meeting on 9 March 2012 and recommended its approval to the Fire Authority.
Page 1
CLEVELAND FIRE AUTHORITY MEETING 30 MARCH 2012
4. Efficiency Policy and Strategy
4.1 The Efficiency Policy at Appendix 1 focuses and embeds the Brigade’s efficiency arrangements to support the realisation of the Authority’s vision of delivering high quality cost effective services.
4.2 The Efficiency Strategy at Appendix 2 acts as a framework to support the Brigade in addressing the financial challenges faced. The Strategy will be reviewed on an annual basis to ensure it takes into account the new CSR, any budget settlements, other economic, environmental and political factors and most importantly it reflects the Medium Term Financial Strategy of the Authority.
IAN HAYTON KAREN WINTER
CHIEF FIRE OFFICER DIRECTOR OF CORPORATE SERVICES
EFFICIENCY POLICY AND STRATEGY Page 2
APPENDIX 1
Policy No. 41
Efficiency
Date Originally Issued : 3rd March 2010 Date Reviewed : February 2012 Reviewed by : Director of Corporate Services Ratified by : SMT Date Ratified : Date of Review :
1. Policy
1.1 Policy Statement
Achieving efficiency is about making the best use of resources to deliver continuous improvement of services. Cleveland Fire Brigade is committed to being high performing and ensuring that all services provided are delivered in the most efficient and economical manner, within the financial resources that are available. Delivering such value for money services is one of the Authority’s priorities and is instrumental in the achievement of its overall vision for 2014. Two of the Brigade’s strategic objectives nurture a value for money ethos, promoting the understanding of the concept of value for money, ensuring this becomes fully integrated into the culture of the Authority’s arrangements at all levels.
Providing value for money is not a once only achievement. Rather it is an ongoing process which aims to continually seek ways of providing a high quality service whilst realising efficiency gains from the introduction of innovative ideas and plans.
Cleveland Fire Authority is fully committed to this policy and as such has ensured that it is integral to its corporate governance arrangements. In addition, it has demonstrated its commitment to efficiency by appointing a Member Champion for its strategic priority of ‘improvement and value for money’.
1.2 Policy Objectives
The aim of this policy is to focus and embed the Brigade’s efficiency arrangements to support the realisation of the Authority’s vision of delivering high quality cost effective services.
Priority
Being high performing and delivering value for money services
Strategic Objective Strategic Objective
To be a high performing and To demonstrate the value of efficient fire and rescue service our contribution to the broader local priorities of our areas
Efficiency Policy
The following specific efficiency objectives support delivery of this policy:
Page 2 of 6
To ensure that we achieve the efficiency savings prescribed in the Medium Term Financial Strategy by 2014/15, across key themed areas of work;
To embed efficiency by continuing to integrate it into strategic business planning, financial planning, service delivery, performance and project management across the Authority;
To continue to improve service performance through better outcomes for local citizens and communities;
To ensure we work more closely with our partners to deliver more integrated services;
To ensure the Brigade works smarter to deliver greater efficiency gains;
To adopt new ways of working in the delivery of our frontline services;
To develop business opportunities so we can invest more in local services.
1.3 Policy Category
This Policy is categorised as ‘Brigade’ within the Policy and Strategy Framework.
1.4 Scope
This policy applies to all employees, managers and Elected Members covering both the strategic and tactical levels of the organisation. It will form the bedrock of all activities within the Brigade and will follow the following principles of efficiency.
Source :Improvement Network – www.improvementnetwork.gov.uk
Page 3 of 6
2. Organising: Roles and Responsibilities
2.1 Cleveland Fire Authority (CFA) is responsible for:
• setting the Authority’s vision and strategic direction;
• establishing efficient and effective corporate governance frameworks for the Authority;
• annually reviewing the constitution and terms of reference which includes a review of efficiency;
• the preparation of a programme of training and development for Members annually. This encompasses induction training for new Members and refresher training for existing Members across a range of subjects, including VFM related topics. This helps to ensure that Members can challenge proposals from a well- informed position, further assisting the pursuit of VFM;
• improvement and value for money which is undertaken via an Elected Member Champion;
• scrutiny of financial and non-financial performance issues which is undertaken by the Audit and Governance Committee who meet on a quarterly basis.
2.2 The Brigade’s Strategic Management Team is responsible for:
• providing organisational leadership in developing and implementing strategies for the Brigade to achieve the Authority’s vision, priorities and objectives;
• overseeing the financial planning and monitoring arrangements associated with the Authority’s revenue and capital budgets;
• effectively communicating the need for efficiency to be embedded throughout the whole of the Brigade;
• monitoring, reviewing and reporting on Brigade efficiencies.
2.3 The Director of Corporate Services is responsible for:
• developing and implementing the Authority’s corporate governance framework and associated arrangements;
• monitoring the progress of the Authority’s priorities, strategic objectives and improvement plans and coordinating corporate activity towards the achievement of outcomes;
• leading the corporate delivery of the Authority’s strategic planning processes and the development and implementation of its Strategic Plan, vision and long term priorities and objectives; Page 4 of 6
• developing, coordinating and reviewing the Brigade’s strategy for embedding efficiency and value for money;
• creating a vision for delivery of efficiency and value for money and associated development of a medium term plan for delivery of this vision;
• overseeing the development and implementation of the Brigade’s efficiency strategy and associated arrangements;
• leading on the key areas of internal audit including the internal audit plan and the Brigade’s three year efficiency action plan;
• Ensuring that individuals within the organisation are aware of their responsibility for efficiency.
2.4 All Managers are responsible for:
• implementing Brigade strategy to deliver the Authority’s vision and strategic direction, including being high performing and delivering VFM services;
• being a champion in promoting the ethos of efficiency;
• operating within the Brigade’s corporate governance and financial frameworks;
• ensuring that themselves and any directly managed staff continuously develop to improve efficiency;
• identifying and promoting good practice on efficiencies implemented within their area.
3. Planning and Implementing
3.1 This policy is supported by an efficiency strategy and action plan which sets out the ambitions and priorities relating to developing the Brigade’s efficiency arrangements. Both documents will be reviewed and implemented together to ensure that any developments are comprehensively communicated to staff, managers and Elected Members.
3.2 Whilst this policy and associated strategy discretely focuses on issues associated with the development of efficiency processes and arrangements, it is intrinsically linked to the Performance, Evaluation, Medium Term Financial and Partnership Strategies, all of which are integral pieces of the corporate governance jigsaw. It is therefore essential to achieving our strategic priority to deliver improvement and value for money.
3.3 There is no specific financial resource implications directly associated with this Policy. Any resources required to deliver the efficiency action plan will be identified and managed through the efficiency strategy.
Page 5 of 6
3.4 This policy has been equality impact assessed in line with the Brigade’s procedure and no issues have been identified.
4. Monitoring
4.1 The Head of Risk and Performance will ensure the central policing of this policy and ensure that a register of policies and strategies and their status of review and implementation are provided to the Strategic Management Team at every Policy, Strategy and Planning meeting.
5. Audit
5.1 The results from any external assessment and/or internal audit assessment of performance management arrangements will help to inform us of any areas for development.
5.2 The External Auditor’s Value for Money conclusions show that the Authority has proper arrangements in place to secure financial resilience and arrangements are in place to challenge how we secure economy, efficiency and effectiveness.
6. Review
6.1 The Director of Corporate Services will undertake an annual review of this policy to ensure it is driving performance management and that it is taking account of any new or emerging economic or environmental factors.
Page 6 of 6
APPENDIX 2
EFFICIENCY STRATEGY 2012/13 – 2014/15
PRIVATE & CONFIDENTIAL
Prepared by Risk and Performance February 2012
Page 2 of 17 PRIVATE & CONFIDENTIAL
CONTENTS
Page
1. INTRODUCTION 3
2. DELIVERING THE BRIGADE’S VISION 4
3. EFFICIENCY DEFINITIONS 5
3.1 Value for Money 5
4. AIMS AND OBJECTIVES 6
5. FINANCIAL SITUATION 7
6. FINANCIAL CHALLENGES 8
7. EFFICIENCY SAVINGS 9
4.1 Summary of efficiencies 9
8. REVISED APPROACH TO SAVINGS 11
8.1 Efficiency Strategy 2009-2014 11 8.2 Integrated Risk Management Plan (IRMP) 11 8.3 Service Transformation Programme 12 8.4 Medium Term Financial Plan 13
9. SCHEDULE OF FINAL EFFICIENCY SAVINGS 15
10. ACTION PLAN 16
10.1 Resources required 16 10.2 Efficiencies expected 16
11. EVALUATION AND REVIEW 17
12. EQUALITY AND IMPACT ANALYSIS 17
S:\Cleveland Fire Authority\2011\CFA Committee\30 March 2012\Agenda Item 6.1 - Efficiency Policy & Strategy - Appendix 2.doc
Page 3 of 17 PRIVATE & CONFIDENTIAL
1. INTRODUCTION
The Government published its Comprehensive Spending Review (CSR) 2010 in October 2010 which presented Cleveland Fire Authority (CFA) with exceptional and unprecedented financial challenges. The Chancellor announced the Government was going to limit the Fire and Rescue Services’ budget reductions and backload these reductions, in return for substantial operational reform. Subsequently the Fire and Rescue Services Grant has been cut by 25%. This translates into a financial deficit for Cleveland of £8.9m to address by 2014/15.
The Fire Authority took the decision that, despite these significant financial challenges, priorities will remain the same with the focus on continuing to deliver a balanced strategy of prevention, protection and response. It directed the Chief Fire Officer to examine the way in which the Brigade delivers services and to make any appropriate changes in order to achieve the substantial efficiencies required.
Service Transformation Programme
As part of the Authority’s strategic and financial planning arrangements, the Brigade’s Strategic Management Team (SMT) embarked on developing a Service Transformation Programme to proactively identify more efficient ways in which the Authority operates and how the Brigade can continue to deliver greater value for money services to the community it serves. The outcomes of this programme are reflected in the Medium Term Financial Strategy (MTFS), the Integrated Risk Management Plan (IRMP) as well as this Efficiency Strategy.
Purpose
This Efficiency Strategy will act as a framework to support the Brigade in addressing the financial challenges faced. It provides details on the Brigade’s new approach to the efficiency agenda, provides information on the specific financial challenges facing the Brigade as well as detail on those areas identified as helping drive the Brigade towards achieving the original estimated £8.9 million of efficiencies required to 2014/15.
The Strategy will be reviewed on an annual basis to ensure it takes into account the new CSR, any budget settlements, other economic, environmental and political factors and most importantly it reflects the Medium Term Financial Strategy of the Authority.
The Brigade has reached the second year (2012/13) of its four year plan to address these financial challenges and has made significant progress to reducing this deficit.
S:\Cleveland Fire Authority\2011\CFA Committee\30 March 2012\Agenda Item 6.1 - Efficiency Policy & Strategy - Appendix 2.doc
Page 4 of 17 PRIVATE & CONFIDENTIAL
2. DELIVERING THE BRIGADE’S VISION
Our Efficiency Strategy supports the priorities contained within our Strategic Plan. The Authority’s ambitious vision is:
‘…to continue to make a positive difference to every local citizen’s safety and quality of life and the places where they live and work. We fully understand their diverse needs and respond with a wide range of excellent value for money, integrated, community services….
We are nationally recognised by other Fire and Rescue Services as being innovative and high performing; our partners value our influence and contribution in delivering shared services and our ability to reduce risk in business, industry and the home is internationally renowned…
People want to work for us; we are a reputable employer of choice recognised through staff passion, professionalism and pride.’ 1’
In delivering the vision the Brigade operates and behaves in line with its five corporate and three cross cutting priority themes, one of which is:
‘improvement and value for money…’.
This priority is underpinned by two strategic objectives which are ‘to be a high performing and efficient fire and rescue service’ and ‘to demonstrate the value of our contribution to the broader local priorities of our areas’.
To support the delivery of these eight corporate priorities each year the Brigade will develop annual priorities.
1 Cleveland Fire Brigade Strategic Plan 2009/10 – 2013/14. Protecting local communities. S:\Cleveland Fire Authority\2011\CFA Committee\30 March 2012\Agenda Item 6.1 - Efficiency Policy & Strategy - Appendix 2.doc
Page 5 of 17 PRIVATE & CONFIDENTIAL
3. EFFICIENCY DEFINITIONS
3.1 Value for Money
Vfm is defined as the relationship between economy (price), efficiency (productivity) and effectiveness (outcomes):
Economy is the price paid for the resources in providing a service; Efficiency is a measure of productivity – how much you get out in relation to what’s put in; Effectiveness is a measure of the impact/outcomes achieved and can be quantitative or qualitative.
Vfm is achieved when there is a balance between all three. This is when:
Cost is low; Productivity is high; Outcomes are successful.
Source: Improvement Network – www.improvementnetwork.gov.uk Chart 1: Value for money
VfM is not about cuts. It can be achieved in different ways including:
• reducing costs (for example labour costs, better procurement and commissioning) for the same outputs • reducing inputs (for example people, assets, energy, materials) for the same outputs • getting greater outputs with improved quality (for example extra service or productivity) for the same inputs • getting proportionally more outputs or improved quality in return for an increase in resources.
S:\Cleveland Fire Authority\2011\CFA Committee\30 March 2012\Agenda Item 6.1 - Efficiency Policy & Strategy - Appendix 2.doc
Page 6 of 17 PRIVATE & CONFIDENTIAL
4. AIMS AND OBJECTIVES
The overall aim of this Strategy is to provide a framework to enable the Brigade to meet the challenges of the current financial climate, continue to protect and maintain services to the public and develop new ways of working.
More specifically, a number of objectives are aligned to the Strategy:
To ensure that we achieve the required savings by 2014/15, across key themed areas of work;
To embed efficiency by continuing to integrate it into strategic business planning, financial planning, service delivery, performance and project management across the Authority;
To continue to improve service performance through better outcomes for local citizens and communities;
To ensure closer working with partners to deliver more integrated services;
To move towards a more district based delivery of services;
To ensure the Brigade works smarter to deliver greater efficiency gains;
To adopt new ways of working in the delivery of frontline services;
To develop business opportunities to allow for more investment in local services.
To support the Brigade’s Growth and Investment Strategy.
S:\Cleveland Fire Authority\2011\CFA Committee\30 March 2012\Agenda Item 6.1 - Efficiency Policy & Strategy - Appendix 2.doc
Page 7 of 17 PRIVATE & CONFIDENTIAL
5. FINANCIAL SITUATION
The Brigade’s revenue budget forecast to 2014/15 is £30.921m. It is funded through a combination of the Central Government Grant and local taxation. The amounts received from various sources are shown in the following chart.
Funding of Budget Requirement to 2014/15
Government Revenue Support Grant
Council Tax Freeze S31 Grant
Council Tax
Collection Fund Surplus
Efficiencies required
Chart 2: Funding of Budget requirement, 2014/15
S:\Cleveland Fire Authority\2011\CFA Committee\30 March 2012\Agenda Item 6.1 - Efficiency Policy & Strategy - Appendix 2.doc
Page 8 of 17 PRIVATE & CONFIDENTIAL
6. FINANCIAL CHALLENGES
Since the adoption of the Medium Term Financial Strategy 2011/12 – 2014/15 the impact of deteriorating public finances have become clearer. Economic growth is lower than expected and the economy will take longer to recover. This position increases the risk of a further phase of public sector austerity before and continuing after the next election.
For CFA this increases the risk that the actual grant cuts for 2013/14 could be greater than the MTFS forecasts. Figures included within this Strategy are based on identified figures from the MTFS 2012/13 to 2014/15 as detailed below (excludes future growth and pressures):
2011/12 2012/13 2013/14 2014/15 Cumulative total £’000 £’000 £’000 £’000 £’000
Budget deficit 1,905 1,417 818 1,670 5, 810
Table 1: Budget deficit
There still remain £1.787 million of efficiencies to achieve by 2014/15.
Planned Efficiencies 2011-2015 £’000
Service Transformation 2,633
Revised Duty System 1,087
Non-pay budgets 303
Unidentified 1,787
TOTAL 5,810 Table 2: Planned efficiencies
S:\Cleveland Fire Authority\2011\CFA Committee\30 March 2012\Agenda Item 6.1 - Efficiency Policy & Strategy - Appendix 2.doc
Page 9 of 17 PRIVATE & CONFIDENTIAL
7. EFFICIENCY SAVINGS
7.1 Summary of efficiencies
The Brigade has had a robust approach to delivering efficiencies for many years. These savings have included cumulative cashable efficiency gains (pay and non-pay), one off efficiencies and recurring efficiencies. This has resulted in a number of re- investments into the Brigade, including staff restructures and the addition of new posts.
In September 2010 the Audit Commission provided the Brigade with findings on its financial statements, governance arrangements and a VFM judgement as part of its Annual Governance report. The AC judgement on VFM stated that
‘The Authority has proper arrangements in place to secure economy, efficiency and effectiveness in its use of resources. The Authority faces unprecedented challenges in the coming years but is rising to the challenge and exploring new ways of working. Alongside the well documented difficult economic climate, the new ways of working will present both risks and opportunities that the Authority will need to manage and monitor’.
The Audit Commission provided the following commentary in relation to the two elements that they assessed the Brigade under:
Financial Resilience
‘The authority has proper arrangements in place to ensure its financial resilience. The Authority demonstrates good financial management, robust systems of corporate governance and internal control and a track record of managing within its budget’.
VFM in Service provision
‘The Authority has proper arrangements in place for challenging how it secures economy, efficiency and effectiveness. The Authority needs to continue to closely monitor its budget, in particular progress against the savings identified’
The Audit Commissions Value for Money profiles 2010/11 and CIPFA Statistics have highlighted the Brigade as achieving the following:
Efficiency challenge
• The 7th highest number of incidents per appliance nationally; • 3rd highest level of expenditure on Whole-time fire fighters/ 1,000 population and one of the lowest levels on retained fire fighters; • 3rd highest spend on non-uniformed staff per 1,000; • 4th highest spend on community safety per 1,000 population; • Highest formula grant as a proportion of total spend;
S:\Cleveland Fire Authority\2011\CFA Committee\30 March 2012\Agenda Item 6.1 - Efficiency Policy & Strategy - Appendix 2.doc
Page 10 of 17 PRIVATE & CONFIDENTIAL
• The 8th lowest spend on supplies and services as a percentage of the total spend per 1,000 population.
Despite the extent of efficiency savings that have been made continually over a period of many years, the economic climate has become so acute that these efficiencies were insufficient to meet the budget deficits facing the Brigade.
S:\Cleveland Fire Authority\2011\CFA Committee\30 March 2012\Agenda Item 6.1 - Efficiency Policy & Strategy - Appendix 2.doc
Page 11 of 17 PRIVATE & CONFIDENTIAL
8. REVISED APPROACH TO SAVINGS
8.1 Efficiency Strategy 2009-2014
The Brigades first Efficiency Strategy was developed during 2009/10, both to support the Value for Money Policy, and as a vehicle to drive efficiencies across the Brigade and allow re- investment. It was developed across six key interlinked themes, driven by an action plan and Efficiency Strategy, 2009-14 monitored on a quarterly and annual basis. The six themes were: This was reviewed as a result of:
Risk Management Processes; • the unprecedented IRMP & Service Reviews; grant reductions; Performance Management Processes; Evaluation Framework; • most of the identified Partnerships; actions within the Efficiency Strategy Embedding Effective Support Structures; Action Plan being either achieved, or subsumed It became evident that the scale and complexity of into work undertaken as the financial challenges that face the Brigade were part of Service bigger than what the Efficiency Strategy (2009-2014) Transformation Programme. could deliver and a new approach, as well as a new strategy, was required to ensure sufficient savings can be made.
Significant efficiencies and savings have been required to balance the budgets over the next four years and a number of approaches were adopted.
8.2 Integrated Risk Management Plan (IRMP)
The Brigade is aiming to shape and improve services over the CSR10 period by focusing on five key IRMP actions as summarised below (more detail available within the IRMP):
Working more closely with partners to deliver more integrated services: movement to an integrated approach in delivering prevention and protection services with partner agencies. Development of assets to create ‘Community Hubs’ which will bring more seamless delivery of services to local communities;
Movement towards a more district based delivery of services: decentralising services to districts making them more joined up and integrating services with partners through the Fire Stations as ‘community hubs’ to make a wider range of services more accessible;
S:\Cleveland Fire Authority\2011\CFA Committee\30 March 2012\Agenda Item 6.1 - Efficiency Policy & Strategy - Appendix 2.doc
Page 12 of 17 PRIVATE & CONFIDENTIAL
Working smarter to deliver greater efficiency gains: communities will be able to access services through new and different routes to suit their needs. This will include improvements to assets and technology and working more closely with partner agencies;
Adopting new ways of working in the delivery of frontline services: reviewing the configuration of emergency response provision; exploring ways of developing technology to streamline the way specialist equipment and expertise is delivered to an incident;
Developing business opportunities to invest more in local services: individuals, communities and business will have access to a range of commercial services; pursuing new business models to market specialist products and services.
A number of actual projects have been identified and developed to move towards this vision.
8.4 Service Transformation Programme
During 2010/11 the Brigade’s Senior Management Team developed a Service Transformation Programme laying the foundations to enable the Brigade to act to mitigate future financial challenges. This Program identified seven key themes where efficiencies • Organisational were possible and acknowledged potential Structures savings made from each area of work. The following work streams were identified as part of • Duty Systems the Service Transformation Programme: • Business Modelling
Organisational Structures: adopting more • Re-configuration of efficient business processes and investing in specialist appliance fleet technology in order to release resources, streamline departments and management • Strategic asset structures; management
• Duty Systems: changing shift systems and the Commissioning
way staff are rostered for work resulting in • Contractual changes increased productivity;
Business Modelling: generating income through commercial business ventures to reinvest in public services;
Re-configuration of specialist appliance fleet: re-configuring Emergency Tender Fleet to meet risk and service demands with reduced staffing;
Strategic Asset Management: re-aligning Assets, Technology and transport to new structures and systems;
S:\Cleveland Fire Authority\2011\CFA Committee\30 March 2012\Agenda Item 6.1 - Efficiency Policy & Strategy - Appendix 2.doc
Page 13 of 17 PRIVATE & CONFIDENTIAL
Commissioning: commissioning and sharing services where it can be shown to improve value for money and quality;
Contractual Changes: negotiating changes to some contractual terms and conditions which will result in reduced staff costs;
Re-configuration of service delivery: re-configuring Community Safety Services to adopt a more flexible approach to meet risk and service demands.
8.2 Medium Term Financial Plan Assumptions
The initial projections identified within the existing MTFS (2011/12–2014/15) were based on a number of key assumptions and culminated in a deficit of £8.9 million. This has since been regularly reviewed given the changes occurring over the past few years with a number of different assumptions being made, because of new information becoming available, which need rolling forward to 2014/15. These are summarised:
Grant settlement The grant settlement for the next year (2012/13) has been confirmed by the Government & identifies actual grant allocation as £19.567 million. The projected grant position for the last two years is £18.2 million and £16.8 million respectively. These will be confirmed in the next CSR (due autumn 2012) which will also incorporate a revised formula distribution methodology.
Council Tax Strategy The original MTFS was based on a Council Tax Strategy of freezing Council Tax for 2012/13 then indicative increases of 6%, 10% and 10% (total of £13,843). Due to central government intervention and guidance it has been suggested within the revised MTFS that for planning purposes Members set the indicative levels for 2012/13 to 2014/15 of 3.95%. Actual Council Tax increases will be determined on an annual basis.
Pay budgets For the purposes of future planning there is provision of 2% pay inflation for 2012/13 then the forecast is based on a planning assumption of 1% for 2013/14 and 2014/15.
Non-pay budgets The existing MTFS was based on a planning assumption of non-pay inflation of 2%. It is suggested that the general planning assumption for non-pay inflation is zero for 2011/12 and 2012/13, then 2% after that.
Use of reserves The Brigade’s reserves have been reviewed to meet specific challenges facing the Authority. They have been earmarked for: - the Capital Investment Programme (agreed by Members of the Authority on 14th October 2011); S:\Cleveland Fire Authority\2011\CFA Committee\30 March 2012\Agenda Item 6.1 - Efficiency Policy & Strategy - Appendix 2.doc
Page 14 of 17 PRIVATE & CONFIDENTIAL
- supporting the budget on an ‘’invest to save basis’ to assist delivery of the necessary budget reduction during 2012/13 and 2013/14. It will continue to support the revenue budget over the period 2013/14 to 2014/15.
PFI and revised Asset Management Plan The position with the PFI is now clear and a revised Asset Management Strategy has been produced. Implementation to commence 2012/13 onwards.
Achievement of efficiencies Efficiencies to date have been made, or in the process of being made of approximately £5.8m from the Service Transformation Review without making any cuts in emergency response services. This level of efficiencies has been built into budget planning in order to determine the level of additional savings and Council Tax that will be required to balance the budget each year.
S:\Cleveland Fire Authority\2011\CFA Committee\30 March 2012\Agenda Item 6.1 - Efficiency Policy & Strategy - Appendix 2.doc
Page 15 of 17 PRIVATE & CONFIDENTIAL
9. SCHEDULE OF FINAL EFFICIENCY SAVINGS
Achieving these additional efficiency savings will be further supported by the Authority continuing to undertake a comprehensive and balanced review of its strategic objectives, taking into account both local and national improvement priorities. In addition the Authority’s internal review methodology involving best value, risk-based management and service reviews targeted at high cost services that potentially will lead to improved value for money services. The following schedule highlights how efficiencies will be made.
2012/13
• Organisational Restructure As part of the service transformation process a restructure of the organisation to be implemented, including all management and staff. This commenced in 2011/12.
• Revised Duty Systems Focus on the adoption of more flexible duty systems that more appropriately match staff both to work needs as well as to the diverse needs of local communities. This commenced in 2011/12.
• Non-Pay Budgets This has included a review of all non-pay budgets within the Brigade and the implementation of reductions or cash limiting processes within these budgets.
2013/14
• Implementation of revised duty systems Implementation of the revised duty systems identified above.
2014/15
• To be determined following strategic resource and IRMP work This will include a review of the capital programme; a review of our fleet of Specialist Emergency Tender vehicles and specialist functions such as Incident Command; and ensuring we have the most flexible approach to ensuring that our operational resources are available and used more efficiently.
S:\Cleveland Fire Authority\2011\CFA Committee\30 March 2012\Agenda Item 6.1 - Efficiency Policy & Strategy - Appendix 2.doc
Page 16 of 17 PRIVATE & CONFIDENTIAL
10. ACTION PLAN
The Action Plan to deliver the £1.787 million savings is attached and identifies the key projects that will be undertaken. It specifies a lead officer, an expected time line for each initiative as well as anticipated savings. The success of these actions will be reviewed on a regular basis and financial savings recorded and charted by the finance department. Detailed reports on each of these projects will be developed for their implementation.
10.1 Resources required
As this stage the costs required to support the delivery of this strategy are unknown. As these are identified they will be resourced, if appropriate, through the budget setting process and appropriate reports and Business Cases produced for Member and SMT consideration.
10.2 Efficiencies expected
As this stage the anticipated efficiencies expected from delivery of this strategy have been aligned to each key area of the action plan.
11. EVALUATION AND REVIEW
This strategy will be reviewed on an annual basis by the Director of Corporate Services to ensure it is aligned and reflects the information within the Authority’s Medium Term Financial Strategy.
12. EQUALITY AND IMPACT ANALYSIS
The Authority are fully committed to the principles of equality and diversity and central to this commitment is the belief that all staff or members of the local communities with whom we interact should be treated with civility and respect regardless of their situation, circumstances or life style. In accordance with the requirements of the Race, Disability and Gender Equality schemes and other relevant legislation this Strategy has been Equality Impact Assessed (EIA). No issues were identified.
S:\Cleveland Fire Authority\2011\CFA Committee\30 March 2012\Agenda Item 6.1 - Efficiency Policy & Strategy - Appendix 2.doc
APPENDIX 2
Appendix I IMPROVEMENT ACTION PLAN TO 2014/15
Ref no Improvement action Lead officer Anticipated Completion Savings date £,000 ES1 Organisational Restructure K. Winter 2,633 03/2015
ES2 Revised Duty Systems P. Lancaster 1,087 03/2015
ES3 Non-Pay Budgets K. Winter 303 03/2015
ES5 To be determined following strategic review of resources and P. Lancaster 1,787 03/2015 IRMP review of service delivery.
AGENDA ITEM 6.2 CLEVELAND FIRE AUTHORITY MEETING 30 MARCH 2012
ANNUALISED HOURS POLICY & PROCEDURE
REPORT OF THE CHIEF FIRE OFFICER
For Noting
1. Purpose of Report
1.1 To advise Members of the agreed Annualised Hours Policy and Procedure at Appendices 1 and 2 for Green Book Staff.
2. Recommendation
2.1 That Members note the agreed Annualised Policy and Procedure for Green Book staff as outlined at Appendices 1 and 2.
3. Background
3.1 At the Fire Authority meeting of the 26th March 2010 Members approved the Service Plan 2010/11 and supported the single high level priority of the Integrated Risk Management Plan (IRMP) for 2010/11 to develop an ambitious service transformation programme which would fundamentally re-engineer the way our services are delivered.
3.2 The Service Transformation Programme was presented and approved by the Executive Committee on 7 January 2011 and ratified by the full Fire Authority on the 28 January 2011. The Organisational Structure and revised Duty System business reports were approved for implementation by the Fire Authority on 25 March 2011.
3.3 The Executive Committee considered the Annualised Hours Policy and Procedure for Green Book staff at its meeting on 9 March 2012.
4. Negotiation
4.1 The Authority enjoys a harmonious and constructive relationship with its recognised trade unions and has done for many years. As a result, a great deal of discussion regarding organisational change is on a relatively informal basis through, for example, exchanges between trade union representatives and senior managers. There are occasions, however, when communications need to be undertaken in a more formal manner.
Page 1
CLEVELAND FIRE AUTHORITY MEETING 30 MARCH 2012
4.2 The Service Transformation Programme introduced changes to the terms and conditions of employment of individuals or groups of staff, and significant staff establishment changes. Therefore local consultation and, where appropriate, negotiation with the staff affected and their local trade union representative(s) was of paramount importance. Such consultation/negotiation was conducted in accordance with the Authority’s Employee Relations Framework which describe the agreed arrangements by which the management of the Brigade and the local leadership of the Fire Brigades Union and Unison discuss and, where possible, resolve employment relations issues speedily and to the satisfaction of all concerned.
4.3 This report presents the outcomes of the negotiations relating to the application of Annualised Hours for staff on Green Book terms and conditions.
5. Local Agreement No. 11
5.1 Further to the on-going dialogue between Cleveland Fire Brigade Management and the Officials of Unison, Local Agreement No. 11 ‘Annualised Hours for Staff on Green Book Terms and Conditions’ was signed in August 2011.
5.2 The Annualised Hours Policy for Staff employed under the NJC for Local Authorities Scheme of Conditions of Service (the Grey Book) and the NJC national Agreement on Pay and Conditions of Service Handbook (the Green Book) was agreed in by Unison on 27 February 2012 (Appendix 1).
5.3 Negotiations are on-going regarding the Implementation Procedure at Appendix 2 for Staff Employed under the NJC National Agreement on Pay and Conditions of Service Handbook (Green Book). Implementation date remains at 1st April 2012.
IAN HAYTON KAREN WINTER CHIEF FIRE OFFICER DIRECTOR OF CORPORATE SERVICES
ANNUALISED HOURS FOR GREEN BOOK STAFF Page 2
APPENDIX 1
Policy No 45
Annualised Hours for Staff employed under the NJC for Local Authorities Fire and Rescue Services, Scheme of Conditions of Service (Grey Book) and the NJC National Agreement on Pay and Conditions of Service Handbook (Green Book)
Reviewed by : Bev Parker: Head of Corporate Support Agreed by SMT: 25th January 2012 Agreed by Unison: 27th February 2012
Agreed by FBU: 13th June 2011
th Noted by Executive 9 March 2012 Committee: Noted by CFA 30th March 2012 Date of Review : 1st April 2013
1. Policy
1.1 Policy Statement
Cleveland Fire Authority is committed to being an employer of choice and developing and delivering model employment practices. As part of our commitment to service transformation we need to ensure that we have a more efficient and effective staff duty system to support service delivery.
The Annualised Hours Policy sets out how this will be achieved and is applicable to staff under Grey and Green book terms and conditions.
Annualised Hours is a system that enables staff to be contracted to work an agreed number of hours per year rather than a standard number of hours per week. The actual number of hours to be worked will be ‘flexed’ to match both the workload requirements of the department in which they are employed and those of the Brigade. This flexible scheme will also offer the opportunity to respond to the specific needs of individuals, which may be accommodated following approval with managers.
Cleveland Fire Authority is fully committed to this policy and as such has ensured that it is integral to its corporate governance arrangements. In addition it has demonstrated its commitment by appointing a Member Champion for its strategic priority: ‘Employer of Choice’.
1.2 Policy Objectives
This policy sets out the measures that the Brigade will need to take into account to provide a consistent, equitable framework to be adopted by Cleveland Fire Authority to manage the way in which staff roster for duty.
The objectives of this policy are:
• To ensure that Cleveland Fire Authority has in place a duty system for staff employed under the NJC for Local Authorities Fire and Rescue Services, Scheme of Conditions of Service (the Grey Book) and the NJC National Agreement on Pay and Conditions of Service Handbook (Green Book) which supports service delivery in a way that minimises any adverse impact for either the Brigade or the individual.
• To ensure that the Annualised Hours system enables staff to work the required number of hours to meet the needs of the service and also offers the opportunity, where it is reasonable and practicable to respond to the specific needs of individuals.
Specifically it is a key building block in the delivery of the Authority’s strategic priority of ‘Employer of Choice’
Page 2 of 5
Priority
Ensuring that people want to work for us, stay with us and develop to their full potential
Strategic Objective Strategic Objective
To provide a safe and healthy To be a modern and diverse working environment employer
Annualised Hours for Staff employed under the NJC for Local Authorities Fire and Rescue Services, Scheme of Conditions of Service (Grey Book) and the NJC National Agreement on Pay and Conditions of Service Handbook (Green Book) Policy
1.3 Policy Category
This policy is categorised as ‘Brigade Policy’ within the Policy and Strategy Framework.
1.4 Scope
This policy applies to all staff of the Brigade employed under NJC Grey and Green Book Terms and Conditions and will be implemented with effect from 1 January 2012 for Grey Book and 1 April 2012 for Green Book staff.
2. Organising: Roles and Responsibilities
2.1 Cleveland Fire Authority (CFA) is responsible for :
setting the Authority’s vision and strategic direction
reviewing and ensuring the delivery of service improvements and efficiencies
supporting Local Agreement 11 – Annualised Hours for Staff on Green Book Terms and Conditions and Local Agreement 12 – Revision of the Grey Book Duty System
Championing Employer of Choice
Page 3 of 5
2.2 The Brigade’s Strategic Management Team is responsible for:
providing organisational leadership in implementing this policy to achieve the Authority’s vision, priorities and objectives
ensuring this policy is applied in a fair and consistent manner
ensuring this policy is appropriately resourced
effectively communicating this policy and all related information and messages to all staff
developing and strategically managing the policy
providing high quality advice and support on related matters
overseeing the provision of a centrally coordinated policy
reviewing the Annualised Hours Policy and Procedure and associated monitoring arrangements
2.3 The Head of Human Resources is responsible for:
reviewing the Annualised Hours Policy and Procedure and associated monitoring arrangements
providing advice, support and guidance on the application of the policy
2.4 All Managers are responsible for:
implementing the Annualised Hours Policy and Procedure to deliver the Authority’s vision and strategic direction
ensuring compliance and support to the key principles of the policy
supervising and managing the Annualised Hours Procedure which will align staffing levels to meet the service requirements
providing appropriate staff training, advice and guidance regarding the recording of Annualised Hours
2.5 All employees are responsible for:
ensuring that they operate in line with the established Annualised Hours Policy and Procedure
2.6 Representative Bodies are responsible for:
Working to the agreed union/management ethical code (currently under review); promoting and maintaining good practice
Page 4 of 5 3. Planning and Implementing
3.1 Links to Other Policies, Strategies and Standard Operating Procedures This policy will be implemented through the Brigade’s Policy and Standard Operating Procedure. Both documents will be reviewed and implemented together to ensure that developments in policy and strategy arrangements are comprehensively communicated to staff, managers and Elected Members.
3.2 Resource Implications Any financial resources required to develop the policy and procedure in the future will be identified and managed through the budget cycle.
3.3 Equality Impact Analysis This policy has been equality impact assessed in line with the Brigade’s procedure and no adverse issues have been identified. The Policy has the potential to support the various circumstances of staff. Copies of the EIA are available from the Head of Corporate Suppport.
4. Monitoring
4.1 The Head of HR will be responsible for the monitoring of this policy to ensure it is being correctly and consistently applied across the Brigade.
5. Audit
5.1 The success of this policy will be determined by its application
5.2 This policy will be subject to internal scrutiny and to external audit as required
6. Review
6.1 The Head of Human Resources will be responsible for the review of the policy and will provide SMT with appropriate information.
6.2 This policy will be reviewed annually and in line with legislative changes.
Page 5 of 5 APPENDIX 2
Procedure No
Annualised Hours for Staff employed under the NJC National Agreement on Pay and Conditions of Service Handbook (Green Book)
Reviewed by : Bev Parker: Head of Corporate Support Agreed by SMT: 25th January 2012 Agreed by Unison:
Noted by Executive 9th March 2012
Committee:
Noted by CFA Not Applicable Date of Review : 1st April 2013
Procedure currently under discussion with Unison
CONTENTS
1. PROCEDURE 3 1.1 Procedure Definition 3 1.2 Procedure Objectives 3
2. PLANNING AND IMPLEMENTATION 3 2.1 Scope 3 2.2 Procedure Statement 3
3. ORGANISING ROLES AND RESPONSIBILITY 4 3.1 Accountability 4 3.2 Responsibility 4
4. PLANNING AND IMPLEMENTATION 4 4.1 Diversity and Equality 4 4.2 Equality Impact Analysis 4 4.3 Annualised Hours Procedure 5
4.3.1 Hours to be Worked 5 4.3.2 Carrying Forward Annual Leave 6 4.3.3 Payment 6 4.3.4 Credited Absences 6 4.3.5 Non Credited Absences 7 4.3.6 General 8 4.3.7 Recording and Monitoring 8 4.3.8 Leavers 8 4.3.9 Falsification of Hours 9 4.3.10 Hours of Work and the Working Time Regs (1998) 9
4.4 Review 9 4.5 2011/12 Flexi and Annual Leave 9 4.6 Appeals 9
APPENDIX A Calculations 10
APPENDIX B Examples of Monthly outstanding Hours 11
Page 2 of 11 Procedure for Annualised Hours Green Book 1. Procedure
1.1 Procedure Definition
Annualised hours is a system that enables staff to be contracted to work an agreed number of hours per year rather than a standard number of hours per week. The actual number of hours to be worked will be „flexed‟ to match workload requirements when they are needed most by the service in the areas in which they are employed. It will also offer the opportunity, where possible, to respond to the specific needs of individuals which may be accommodated following approval with managers by this flexible system.
1.2 Procedure Objectives
As we change the way in which we deliver our services we also need to change our ways of working to ensure we have effective systems that produce efficiencies and enhance productivity whilst still supporting a work life balance for our staff.
The objectives of this procedure are:
• To ensure that Cleveland Fire Authority has in place a duty system for corporate (Green Book) staff that supports service delivery in a way that minimises any adverse impact for either the Brigade or the individual.
• That Cleveland Fire Authority ensures that all line managers are responsible for the supervision and management of the Annualised Hours so that staffing levels are maintained and a comprehensive service can continue to be provided.
2. Planning and Implementing
2.1 Scope
This procedure applies to all staff employed under the NJC National Agreement on Pay and Conditions of Service Handbook (the Green Book) and will be implemented with effect from 1 April 2012.
2.2 Procedure Statement
The Brigade is committed to the promotion of good employment practices and improving the working lives of its staff. This procedure sets out a system whereby an employee‟s hours are annualised to be worked over a 12 month period. This is just one of a range of such policies aimed at ensuring the delivery of service meets business needs whilst where possible helping staff to balance their home and working lives.
Page 3 of 11 Procedure for Annualised Hours Green Book 3. Organising Roles and Responsibility
3.1 Accountability
SMT have overall accountability for this procedure and its execution.
3.2 Responsibility
The Chief Fire Officer has the overall responsibility and accountability for this procedure.
SMT are responsible for ensuring that this procedure is executed in accordance with its overall principles and that resources are available to facilitate the process as required.
The Head of Human Resources will be responsible for the administration and management of the process.
All Managers are responsible for ensuring staff adherence to this Procedure and assisting the Authority in achieving its objectives within this procedure.
All Staff are responsible for adhering to this Procedure and assisting the Authority in achieving its objectives within this procedure through their engagement and participation in the process.
Trade Unions are responsible for assisting the Authority in achieving its objectives within this procedure through its engagement in the involvement process.
4. Planning and Implementing
4.1 Diversity & Equality
Implementation of this procedure will be fair consistent and without prejudice to any member of staff regardless of gender, age, marital status, perceived religion or belief, affiliation to trade union, political opinion, race, ethnic origin, disability or sexual orientation.
4.2 Equality Impact Analysis
In order to comply with employment legislation an Equality Impact Analysis has been undertaken for this Procedure.
Page 4 of 11 Procedure for Annualised Hours Green Book 4.3 Annualised Hours Procedure
4.3.1 Hours to be worked
All full time staff will be contracted to 1929 hours per year (averaged 37 hours per week), part time staff will work their pro rata equivalent as will those in a job share position. Staff will be required to work their contracted hours MINUS their annual leave entitlement (see Appendix A). All paid authorised absences such as annual leave or sick leave, will be counted as a credit and be submitted to make up the requisite hours for each member of staff. This will be done on a standard basis such as 7 hours 24 minutes for one day and 3 hours 42 minutes for a half day. A lunch break between a minimum of 30 minutes and a maximum of 90 minutes can be taken by staff. This will not be counted as a credit. There will not be a fixed „bandwidth‟ for hours as this system is intended to offer the flexibility needed to support the various ways that different departments may need to provide their service which may be on a 24/7 basis. However it will be expected that staff work hours appropriate to the needs of the organisation and department in meeting service delivery demands as agreed with their line manager. Patterns of annualised hours may include: Working the same number of hours for some weeks and different hours for other weeks (ie Monday to Sunday) Working different days each week Varying the number of hours worked each week Working more than the standard hours on some days or weeks and not working on other days or weeks No additional hours should be claimed for work in excess of the standard week as hours should balance out at the end of each year. Any outstanding additional hours worked will not be carried forward to the next year. There should not be any deficits or credits at the end of each year. Agreements will be made between the departmental head/line manager and the individual where possible on an annual basis or quarterly basis or as a minimum on a monthly basis as to how their hours will be worked. This will depend upon the needs of the service and how much forward planning is required. This will also apply to post holders undertaking a job share post. The individual and the manager will agree a maximum and minimum number of hours to be worked within a given period and any variations to this must also be agreed between both parties. Managers will also need to adhere to the Lone Working Policy when agreeing staffs working hours.
Page 5 of 11 Procedure for Annualised Hours Green Book For audit purposes, records should be kept for a minimum of 24 months following the end of the year that the annualised hours were worked. HR will validate working patterns and hours in conjunction with managers.
4.3.2 Carrying Forward Annual Leave
Staff who are unable to take their full annual leave entitlement by the 31st March as a result of maternity leave will be able to carry forward this leave into part of the next financial year following agreement with their line manager and in consultation with HR.
At the end of every year we will reimburse (as annual leave or payment) all annual leave untaken on account of sickness up to the statutory minimum of 28 days
The basic statutory leave entitlement can be taken only in the leave year that it falls due, „save where an employee has been prevented by illness from taking a period of holiday leave and returns from sick leave with insufficient time to take that holiday leave within the relevant leave year, in which case he or she will be given the opportunity of taking that holiday in the following leave year‟
4.3.3 Payment
Contracted hours are worked over a twelve month period rather than fixed hours being worked every week. An employee working annualised hours however, will receive their annual salary divided into 12 equal payments. Part time employees have contractual entitlements based on a pro rata basis. Any additional hours above contracted hours, that are requested by management and are required to be worked at normal rate of pay will be undertaken on a voluntary basis. Overtime at an enhanced rate will only apply to those circumstances in which additional hours are required to be worked for emergency or (unplanned) exceptional circumstances as determined by the Service. This must be approved by the Director of the Department. Stand By and Call Out will be in accordance with those agreements that the Brigade already has in place and for those staff groups who are expected to respond under these requirements. Some of these departmental procedures are being reviewed and formalised.
4.3.4 Credited Absences
Annual Leave will be credited in accordance with the individual‟s contractual entitlement to make up the requisite hours for each member of staff. This will be done on a standard basis for all individuals such as 7 hours 24 minutes will be credited for one day, 3 hours 42 minutes for a half day (see Appendix A). Bank Holidays
Page 6 of 11 Procedure for Annualised Hours Green Book Sickness absence will be credited providing the individual submits self-certified or medically certification as appropriate. This will be credited in the same way that annual leave is credited. Maternity/Paternity/Adoption leave (paid element) Jury Service Military Call Ups Courses essential to the role and authorised by line manager. Hours relating to the travelling time to and from the course will be agreed and authorised by line manager. Compassionate Leave (bereavement) up to 5 days in line with current Bereavement policy. Other Compassionate Leave at the Authority‟s discretion Territorial Army duties as approved by Head of Department. Court attendance on Brigade business as approved by Head of Department Medical, Dental and Physiotherapy Appointments where under the oversight of the Occupational Health Unit Deficit of hours due to a phased return to work in accordance with the Sickness Absence Management Procedure and DDA. Trade Union leave in accordance with ACAS guidelines and Brigade Policy and approved by HR. Preparation for exams that are essential to the role and pro rata to the length of the exam as outlined in the Brigade Policy.
4.3.5 Non Credited Absences
The Annualised Hours system allows for flexible arrangements to accommodate any time needed to attend personal appointments or unexpected absences as any deficits in hours caused by these situation can be made up a later date. The following do not attract any credits towards working hours:
Lunch Breaks Medical, Physiotherapy, Dental or other similar personal appointments Failure to attend work or arriving to work late due to inclement weather Childcare responsibilities Carer responsibilities Election Leave Public duties eg JP, School Governors, Elected Member Representing National team at International Sporting Events.
Page 7 of 11 Procedure for Annualised Hours Green Book Authorised absences such as unpaid leave will not be credited against the annualised hours and in such cases the total number of hours to be worked will be reduced accordingly.
4.3.6 General
Due to the implementation of the Procedure for Annualised Hours coinciding with the commencement of the Annual Leave Year, arrangements have been made to manage a deficit in hours due to an unplanned absence in March.
Any queries regarding credited non credited absences should be referred to the Head of Human Resources.
4.3.7 Recording and Monitoring
There will be an electronic recording system for daily recording of actual hours worked to ensure that over the whole year the individual‟s contracted hours are met. The system will also enable line managers to display the agreed days and hours to be worked on a 4 weekly basis. Examples of how the system will show the gradual reduction in annualised hours based on a 37 and a variable weeks is shown at Appendix B. Workshops and/or training will be provided for all staff and managers prior to implementation of the new software system. All line managers are responsible for the supervision, management and monitoring of Annualised Hours within their area of accountability. Services provided must not be reduced or suffer in any way as a result of Annualised Hours working. Managers must therefore ensure that staffing levels are maintained so that a comprehensive service can continue to be provided. Advice and Guidance will be provided to Line Managers on the management and monitoring of the system. The recording and monitoring of Annualised Hours will be undertaken by HR, who will identify and refer any further development needs or problems as appropriate. Exceptions reports will be monitored by the Director of Corporate Services.
4.3.8 Leavers
When an employee leaves the employment of the Brigade or for anyone going on maternity leave or a career break, arrangements should be made to recalculate the number of hours they should have worked pro rata to that date in the year. This figure should be compared to the actual hours worked which may result in an adjustment to the final salary. Where possible the individual may be able to adjust their working hours to ensure there are no deficits or credits remaining.
Page 8 of 11 Procedure for Annualised Hours Green Book 4.3.9 Falsification of Hours
Any deliberate attempt to falsify the hours worked, or otherwise abuse the Annualised Hours Scheme, may lead to disciplinary action. This will classed as gross misconduct as any deliberate falsification of time will be regarded as fraud.
4.3.10 Hours of work and the Working Time Regulations (1998)
In accordance with the Working Time Regulations (1998) an employee will not normally be expected to work more than 48 hours during any given seven day period. In order to allow for weekly fluctuations in the hours worked, which may be more or less than 48 hours, the hours may be averaged out over a 17 week reference period. This could also affect staff on Secondary Employment contracts or who undertake Diversionary Activities and Managers will need to take this into account when agreeing staffs annualised hours.
The Working Time Regulations also state that an employee must take a break of at least 20 minutes wherever the working day is longer than six hours. As outlined in Brigade procedures our practice is for all employees to take a lunch break of at least 30 minutes during the working day. In addition there must also be a rest period of no less than 11 hours between each period of duty and one rest period per week of not less than 24 hours.
The restrictions are greater for young workers under the age of 18 years. They may only work a maximum eight hour day and 40 hours per week. This may not be averaged out over a reference period as for adults. A break of at least 30 minutes should be taken if working 4½ hours or more.
4.4 Review
The “Annualised Hours Procedure” will be jointly reviewed annually with recognised Trade Unions, and reported to SMT.
The Annualised Hours for Staff on Green Book Terms and Conditions (Local Agreement No. 11) will be jointly reviewed annually with recognised Trade Unions.
The monitoring of Annualised Hours will be undertaken by Human Resources and reported to SMT in May/June annually.
4.5 2011/12 Flexi and Annual Leave
All outstanding annual leave should be taken by 31 March 2012. No credits of flexi hours will be carried forward and any deficits in hours should be cleared by 31 March 2012. See 4.3.2 relating to annual leave of staff on long term sickness.
4.6 Appeals Any concerns or issues regarding annualised hours should be pursued through the normal Brigade Procedures.
Page 9 of 11 Procedure for Annualised Hours Green Book Appendix A
CALCULATIONS
Annualised hours is based on an employee working a total number of hours 1929 hours over a year rather than a fixed 37 hours every week.
A basic example of how to calculate the hours to be worked is set out below.
A) Full-time staff
A full-time member of staff is contracted to 1929 hours per year (37 hours per week x 52.1428)
For anyone with 0 to 5 years‟ service they get 26 days annual leave = 26 x 7.4 = 192.4 hours leave per year
For anyone with 5 plus years‟ service they get 31 days annual leave = 31 x 7.4 = 229.40 hours leave per year
Hours to be worked are: 1929 minus the leave entitlement
An example of the average hours expected to be worked over a 4 week period for a full- time member of staff working a 37 hour week is outlined at Appendix B.
B) Part-time staff
Contracted weekly hours x 52.1428 weeks of the year = annual contracted hours
Annual leave entitlement x (contracted part time hours divided by full-time hours)
Hours to be worked are: contracted hours minus leave entitlement
Page 10 of 11 Procedure for Annualised Hours Green Book APPENDIX B
EXAMPLE OF MONTHLY OUTSTANDING HOURS BASED ON A 37 HOUR WEEK
AVERAGE HOURS STANDARD OUTSTANDING WORKED PER WEEK 4 WEEK PERIOD ANNUALISED HOURS (Approx 148 hrs) Commencing 1st April 1929 37 1 1780 37 2 1632 37 3 1483 37 4 1335 37 5 1186 37 6 1038 37 7 890 37 8 741 37 9 593 37 10 445 37 11 296 37 12 148 37 13 0 Ends 31 March zero
EXAMPLE OF MONTHLY OUTSTANDING HOURS BASED ON VARIABLE WEEKS
AVERAGE HOURS VARIABLE OUTSTANDING WORKED PER WEEK 4 WEEK PERIOD ANNUALISED HOURS
Commencing 1st April 1929 44 1 1753 44 2 1577 30 3 1457 44 4 1281 30 5 1161 0 6 1161 30 7 1041 42 8 872 42 9 704 44 10 528 44 11 352 44 12 176 44 13 0 Ends 31 March zero
Page 11 of 11 Procedure for Annualised Hours Green Book AGENDA ITEM 6.3 CLEVELAND FIRE AUTHORITY MEETING 30 MARCH 2012
DRAFT SERVICE PLAN 2012/13
REPORT OF THE CHIEF FIRE OFFICER
For Approval
1. Purpose of Report
1.1 To seek Members views and input regarding the Draft Service Plan 2012/13
2. Recommendations
2.1 That Members views be sought regarding the draft Service Plan 2012/13 as attached at Appendix 1.
2.2 That the Service Plan 2012/13 be published on the completion and validation of the 2011/12 performance data.
3. Background
3.1 Service planning continues to be an integral part of the Authority’s corporate governance arrangements and is essential in delivering the strategic direction of the Authority. It ensures that clear links are made between the Brigade’s immediate actions and to what it aims to achieve in the medium and longer term.
4. Draft Service Plan 2012/13
4.1 The draft Service Plan 2012/13 is attached at Appendix 1 and reflects the fourth year of delivery of the Authority’s Five Year Strategic Plan.
4.2 The Service Plan outlines the achievements and performance for 2011/12; the priorities for 2012/13 and the actions we will undertake to deliver those priorities and the measures that will be used to inform us of our success.
IAN HAYTON KAREN WINTER CHIEF FIRE OFFICER DIRECTOR OF CORPORATE SERVICES
Page 1
Appendix 1
Service Plan 2012/13 To be circulated at the meeting AGENDA ITEM 6.4 CLEVELAND FIRE AUTHORITY 30 MARCH 2012
REVIEW OF THE SERVICE LEVEL AGREEMENTS
FOR LEGAL AND FINANCIAL SERVICES
REPORT OF THE CHIEF FIRE OFFICER For Approval
1. Purpose of the Report
1.1 To enable Members to consider and approve changes to the current charges for services under the Service Level Agreements (SLA’s) for Legal and Financial Services with Hartlepool Borough Council and the extension of the Financial Services SLA for 12 months with a full review to be undertaken during 2012/13.
2. Recommendations
2.1 Members are requested to ratify the Executive Committees decision to approve–
(a) Increased charges for the SLA’s for Legal and Financial Services, with an increase of £2,500 p.a. for Legal Services and an increase of £3,500 p.a. for Financial Services arising from increased work emanating from accounting changes and new legislation. (b) An extension of 12months to the Financial Services SLA with a full review during 2012/13 to maintain continuity during the full implementation of International Financial Reporting Standards..
3. Background
3.1 This report was considered and recommended for approval by the Executive Committee on 9 March 2012.
3.2 Members will be aware that the Fire Authority has had Service Level Agreements with Hartlepool Borough Council for Legal and Financial Services since its inception as a Combined Fire Authority in 1996.
3.3 These agreements have been reviewed and renewed several times since inception and continue to give a value for money service to the Authority. The Legal Services SLA was reviewed and renewed on 1st April 2011 and runs through to 31st March 2014. The Financial Services SLA expires on 31st March 2012.
3.4 Both SLA’s provide for an annual increase in fees linked to nationally agreed pay increases and an annual review of workload and technical changes which may generate an increase in cost. In regards to increases arising from the link with pay increases no changes have been made on account of the public sector pay freeze.
REVIEW OF SLA’S FOR LEGAL AND FINANCIAL SERVICES Page 1
AGENDA ITEM 6.4 CLEVELAND FIRE AUTHORITY 30 MARCH 2012
4. Legal Services SLA
4.1 The current Legal Services SLA runs from 1st April 2011 to 31st March 2014. Hartlepool Borough Council provides basic legal services set out in the SLA for a retainer fee of £18,198 (reviewed annually) and an additional charge at agreed staff rates for work outside of the basic service.
4.2 The basic service includes -; preparation of routine contracts; attendance at meetings of the CCFA, its committees and sub-committees; scrutiny of and advice on new legislation, cases etc., general advice on constitutional, procedural matters. general advice on routine legal issues not involving significant research and/or discussion.
4.3 The agreement provides for an annual review of the retainer fee in two ways; firstly by a link to nationally agreed pay awards. No increase has been applied in light of the public sector pay freeze. The second review element is an annual review of the level of work undertaken under the retainer model and the implications of any changes.
4.4 Members are aware from previous reports of the significant changes being introduced through the Localism Act 2011 and other legislation currently going through Parliament. The Act introduces significant change in the governance arrangements for public authorities and introduces new duties to co-operate with other public authorities, greater potential for community involvement and wider powers through the “general power of competence”. Also the Authority has embarked upon new initiatives since the last review of the SLA, namely the setting up of a Community Interest Company and the exploration of the “Social Enterprise” opportunities available. These particular areas of work require significant research and discussion and therefore create more work under the legal services SLA. Discussions with the Legal Officer have identified an additional estimated cost of £2,500 p.a.
4.5 It is proposed that the retainer fee be increased by this amount, to £20,698 from 1st April 2012, with a full programmed review of the SLA during 2013/14.
5. Financial Services SLA
5.1 The current Financial Services SLA is due to expire on 31st March 2012.
5.2 The SLA covers provision and maintenance of the Financial Management System, Accounting Services including payroll administration and statutory financial services including preparation of statutory accounts in accordance with all relevant standards. The fee for these services is currently £71,300 p.a.
REVIEW OF SLA’S FOR LEGAL AND FINANCIAL SERVICES Page 2
AGENDA ITEM 6.4 CLEVELAND FIRE AUTHORITY 30 MARCH 2012
5.3 Implementation of International Financial Reporting Standards has, as expected, increased the workload on the preparation of statutory accounts and additional work and cost in terms of returns to government on Whole of Government Accounts etc has prompted a review of cost.
5.4 No increases have been applied under the annual review of costs arising from the link to nationally agreed pay increases owing to the public sector pay freeze.
5.5 There is also provision within the SLA to extend the service. As the implementation of International Financial Reporting Standards is still on-going with further changes necessary in respect of the Authority’s accounts for 2011/12, and in view of the successful implementation of the new regime last year by the Council it is proposed to extend the SLA for Financial Services for a further twelve months with a full review programmed in the current year with the aim of agreeing a new SLA for the 1st April 2013.
5.6 Discussions with Hartlepool Borough Council have identified additional staff costs in connection with preparation of statutory accounts and additional costs in complying with new standards of reporting and compliance on statutory financial issues. An additional fee of £3,500 has been assessed as appropriate from 1st April 2012.
5.7 The additional resources will enable the Authority and the Council to achieve the external auditors recommendation of creating time for a review of accounts before presentation for audit and reduce the possibility in the future of any additional audit charges. This particular aspect has been discussed with the Council and £2,400 of the proposed increase will be “at risk” of the Authority incurring additional audit fees. Any additional fee charged by the external auditor will be offset against the SLA increase.
6. Conclusion
6.1 Both SLA’s continue to provide value for money. The services provided are closely monitored and continue to be of a high level utilising the expertise that has been built up over time.
6.2 As the implementation of International Financial Reporting Standards is on-going, and so far has been successful, it is logical to extend the current Financial Services SLA for a further year to incorporate preparation of the statutory accounts for 2011/12. A full review of this SLA will be carried out in 2012/13.
6.3 The proposed increases in fees have been discussed and evaluated and are reasonable and “at risk” where appropriate, being subject to performance.
IAN HAYTON KAREN WINTER CHIEF FIRE OFFICER DIRECTOR OF CORPORATE SERVICES
REVIEW OF SLA’S FOR LEGAL AND FINANCIAL SERVICES Page 3
AGENDA ITEM 6.5 CLEVELAND FIRE AUTHORITY MEETING 30 MARCH 2012
MARINE FIRE STATION, FERRY ROAD, MIDDLESBROUGH – REQUEST FOR EASEMENT BY MIDDLESBROUGH COUNCIL
REPORT OF THE CHIEF FIRE OFFICER For Approval
1. PURPOSE OF REPORT
1.1 The purpose of the report is to advise Members of a request from Middlesbrough Council to be granted a right of way (by the granting of a legal Easement) over land at Marine Fire Station in Middlesbrough.
2. RECOMMENDATIONS
2.1 That Members note the contents of this report including the additional information as detailed at paragraph 6
2.2 It is recommended that the Fire Authority consider the granting of an Easement over land at Marine Fire Station to Middlesbrough Borough Council with conditions.
3. BACKGROUND
3.1 The Fire Authority operates a single bay Fire Station situated on Ferry Road at Middlesbrough immediately adjacent to the Transporter Bridge. The Station is known as the Marine Fire Station as in the past the Authority located its two fire boats on the River Tees on the Pontoon to the rear of the Fire Station. Currently a single whole time fire appliance operates from the premises providing immediate response into the Middlehaven area and supporting fire cover into central Middlesbrough.
3.2 The 2 storey building was constructed in 1996 and part of the rear structure is suspended on metal stanchions over the River Tees. There is a car park to the rear and access to the floating pontoon is via the smaller car park located to the front and side of the building.
Page 1
CLEVELAND FIRE AUTHORITY MEETING 30 MARCH 2012
4. MIDDLESBROUGH BOROUGH COUNCIL REQUEST
4.1 Middlesbrough Council has approached the Authority to explore the various options that exist for an agreement to have a long term right of access over an area of land at Marine Fire Station covering approximately 57 square metres. The area in question comprises an area used for parking at the side/rear of the Fire station. Part of the site projects over the River Tees and is a deck supported on posts and joists.
4.2 The request has been made to allow controlled public access to a passenger lift located on a platform in the River Tees adjacent to Marine Fire station. The lift would be one of two lifts to be installed as part of a successful £2.6 million pounds Heritage Lottery Bid to provide easier and safer access to the Transporter Bridge.
4.3 The main lift would be located on the other leg of the Transporter where a visitor centre is to be built. The lift to be located on the leg adjacent to the Fire Station is predominantly for emergency purposes.
4.4 This request was considered at a meeting of the Executive Committee on 9 March 2012, when Members recommended that following further negotiations, a report be forwarded to the Cleveland Fire Authority Meeting on 30 March 2012 for consideration.
5. THE OPTIONS
5.1 The options that were explored was an outright purchase of the land, a yearly licence to occupy the land, or annual leasing arrangements but all these were all found not to be suitable types of agreements given the Lottery Grant conditions and the type of access/use of the land. Middlesbrough Council has intimated that they do not have any financial provision made to purchase or lease the land from the Authority.
5.2 The Council’s preferred option is for a legal agreement comprising of an Easement. Under this arrangement Middlesbrough Council would be responsible for the maintenance of the surface of the new footpath to the Lift whilst the Fire Authority would retain responsibility for maintaining the deck and structure.
5.3 A proposal for Middlesbrough Council to make a one- off contribution towards the future cost of maintaining the deck and structure has been put to them. Whilst Middlesbrough Council propose to charge visitors to use the lifts there is no intention that any funds generated would be for profit but will contribute to the upkeep and maintenance of the Transporter Bridge for generations to come. As such the Council have intimated that any one-off contribution to maintain Marine Stations deck will be relatively small.
LAND AT MARINE FIRE STATION, FERRY ROAD, MIDDLESBROUGH Page 2 CLEVELAND FIRE AUTHORITY MEETING 30 MARCH 2012
5.4 Middlesbrough Council have also requested that any future sale of Marine Fire Station by the Authority should in no way affect their rights of access to the Lift during the Easement Period, which they are requesting be at least of 50 years duration and they are seeking this right to be protected legally.
5.5 Middlesbrough Council will pay the Fire Authority’s Legal costs associated with this proposed arrangement.
5.6 It is worth noting that Middlesbrough Council have intimated that they have a ‘plan b’ to achieve access to the secondary lift should their request to the Authority prove unsuccessful.
5.7 The Options available to the Fire Authority are:
To refuse the request To offer for sale the land in question. To offer a long term lease on the said land. To offer right of reasonable access by agreeing to an Easement. The Easement may or may not include conditions as attached by the Fire Authority.
5.8 Notwithstanding the Council’s assertions that it has limited finances, the Authority may select to offer the land for sale or lease. However, a disadvantage of these options is that they will impact on the suitable uses of the site in the future and this will affect its attractiveness to prospective buyers and therefore the value of the site.
5.9 The granting of an Easement is the most appropriate legal agreement particularly as enquiries made by the Council with the Heritage Lottery fund have confirmed that there is no funding within the grant award for any land acquisition. Therefore, the area of land has special value to Middlesbrough Council but the funds they have available to make a one-off contribution towards the future maintenance of the deck and structure will be limited.
6. THE OUTCOME OF FURTHER NEGIOTIATIONS
6.1 At the Executive Meeting on the 9th March Members requested that Middlesbrough Council be asked to consider two counter proposals. These were that they purchase the area of land in question for the sum of £6,000 or that they accept the following restrictions on the Easement. These are:
That Middlesbrough Borough Council accepts all legal liabilities and indemnifies the Fire Authority against any claims arising from the use of the land covered by the Easement. That the Easement if granted would be subject to a termination clause that at any time during the Easement period CFA wishes to change any material use of the Marine site or wishes to dispose of the site then CFA can give reasonable notice to MBC that the Easement Agreement is to be terminated.
LAND AT MARINE FIRE STATION, FERRY ROAD, MIDDLESBROUGH Page 3 CLEVELAND FIRE AUTHORITY MEETING 30 MARCH 2012
6.2 Discussions have been held with Officers from Middlesbrough Council regarding these issues the outcome being that MBC are not prepared to purchase the land because funding for this was not allowed for in their Heritage Lottery Grant submission and perhaps more importantly they would be purchasing a small part of a suspended deck structure which they are unsure as to its condition and future maintenance liability.
6.3 The granting of an Easement for a period of 50 years is their favoured option and MBC are prepared to accept all legal liabilities as stated but they are not prepared to accept that the Easement agreement can be terminated before it expires at the end of 50 years.
6.4 The reason MBC gives for this decision is that in order for the Heritage Lottery to agree to the level of investment they are putting into the Transporter Bridge Project access over the Marine Station land would need to be secured for a period of 25 to 50 years to enable sufficient return on their initial investment in the heritage structure.
7. CONCLUSION
7.1 There is no doubt that Cleveland Fire Authority wishes to support the work of Middlesbrough Council in making the Transporter Bridge more accessible to the public and that granting an Easement over a small area of land at Marine Fire Station would demonstrate that commitment. However should the Fire Authority decide to dispose of Marine Fire station sometime in the future the existence of the Easement might have a detrimental financial effect on that potential sale.
7.2 It is clear that negotiations have now run their course and it is not possible to obtain MBC’s agreement to the Easement being terminated before its stated period. As stated previously MBC can construct a walkway to access the lift without using the CFA land but a more aesthetically pleasing approach could be delivered with the Easement in place and associated accommodation works. If Members decide against agreeing to the Easement this in no way jeopardises the Heritage Lottery funding which is already secured.
IAN HAYTON KAREN WINTER CHIEF FIRE OFFICER DIRECTOR OF CORPORATE SERVICES
LAND AT MARINE FIRE STATION, FERRY ROAD, MIDDLESBROUGH Page 4
AGENDA ITEM 6.6 CLEVELAND FIRE AUTHORITY MEETING 30 MARCH 2012
ANNUAL SERVICE OF THANKSGIVING
13 MAY 2012
REPORT OF THE CHIEF FIRE OFFICER For
Recommendation
1. Purpose of Report
1.1 To seek Members views regarding Member attendance at the Annual Service of Thanksgiving at the Firefighters Monument, National Memorial Arboretum in Staffordshire on Sunday, 13 May 2012.
2. Recommendation
2.1 That Members consider if they wish to send a representative to attend the Annual Service of Thanksgiving at the Firefighters Monument, National Memorial Arboretum in Staffordshire on Sunday, 13 May 2012. .
3. Background
3.1 This annual service is an act of thanksgiving and celebration for the work of the Fire and Rescue Services and all who, have served, are serving or will serve in it.
3.2 The Service will be conducted by the Reverend Canon Dr Peter Mortimer, who is Chaplain to the Trust.
3.3 The Service will commence at 12 noon and will be of 40 minutes duration.
IAN HAYTON KAREN WINTER CHIEF FIRE OFFICER DIRECTOR OF CORPORATE SERVICES
Page 1
AGENDA ITEM 6.7 CLEVELAND FIRE AUTHORITY MEETING 30 MARCH 2012
CHIEF FIRE OFFICER’S INFORMATION PACK
REPORT OF THE CHIEF FIRE OFFICER
For Information
1. FIRE AND RESCUE SERVICE MONTHLY BULLETINS
Listed below are the Bulletins issued since our last meeting along with a summary of their contents. Full versions of the Bulletins are available from the CLG website, www.communities.gov.uk or by contacting the DMS Office.
Bulletin 18 6 February 2012 - Local Government Resource Review Update - 2011-12 Local Risk Assessment Guidance and Local Resilience Planning Assumptions Guidance - Future of Local Audit - National Operational Guidance
Bulletin 19 5 March 2012 - Fire and Rescue Control Services - Fire Kills Campaign – National Advertising Activity - Fire and Rescue National Framework for England Consultation closes on 19 Mach 2012 - Localism Act 2011 – commencement of general power of competence and fire provisions
2. EMPLOYERS CIRCULARS
EMP/02/12 Part Time Workers (Prevention of Less Favourable Treatment) Regulations EMP/03/12 Pay Claim 2012 EMP/04/12 Terrorist Activity
3. NATIONAL JOINT COUNCIL CIRCULARS
NJC/1/12 Part Time Works (Prevention of Less Favourable Treatment) Regulations – Fire Brigade Union Agreement NJC/2/12 Queens Diamond Jubilee Commemorative Medal
Page 1
CLEVELAND FIRE AUTHORITY MEETING 30 MARCH 2012
4. APPOINTMENT OF INTERIM AUDITOR
The Audit commission had previously appointed an officer of the Commission to audit the 2011/12 accounts for Cleveland Fire Authority. The Commission now needs to make a new audit appointment for 2012/13.
As an auditor must be in place at the start of the financial year and the procurement process for outsourcing work currently undertaken by the Commission means new audit appointments cannot be made before 1 September 2012, the Audit Commission are proposing to make an interim auditor appointment to cover the period form 1 April 2012 to 31 August 2012
The scope of the interim auditor’s role is not to take on any substantive audit work relating to 2012/13 but to keep a watching brief. Provided this is the case the Commission will meet any costs incurred by the interim auditor. Should the interim auditor be required to carry out any substantive work the Commission will determine a variation to the scale audit fee to reflect the costs of the work. The additional fee will then become payable to the audited body.
The Commission proposes to appointment Gavin Barker to audit the accounts of Cleveland Fire Authority for 2012/13 on an interim basis.
5. FIRE AND RESCUE SERVICES NATIONAL FRAMEWORK – RESPONSE TO THE CONSULTATION
The Cleveland Fire Authority response to the Fire and Rescue Services National Framework Consultation was approved at the Executive Committee on 9 March 2012. For information the report submitted to the meeting which included our response is attached at Appendix 1.
The deadline for the consultation was 16 March 2012.
6. FIRE CAPITAL GRANT FUNDING BIDDING PROCESS FOR FIRE AND RESCUE AUTHORITIES 2013-15
A letter has been received from Bob Neill MP, Parliamentary Under Secretary of State, DCLG regarding the opening of the bidding process for Fire Capital Funding. A copy of this letter is attached at Appendix 2.
The letter refers to a document entitled ‘Guidance to fire and rescue authorities bidding for capital funding 2013-2015’, should you wish to receive a copy of the Guidance please contact the DMS Office who will happy to arrange this.
IAN HAYTON KAREN WINTER CHIEF FIRE OFFICER DIRECTOR OF CORPORATE SERVICES
CHIEF FIRE OFFICER’S INFORMATION PACK Page 2
APPENDIX 1 EXECUTIVE COMMITEE 9 MARCH 2012
FIRE & RESCUE SERVICES NATIONAL
FRAMEWORK – RESPONSE TO CONSULTATION
REPORT OF THE CHIEF FIRE OFFICER For Recommendation
1. Purpose of the Report
1.1 This paper sets out background information and a draft response to the consultation on the new National Framework and strategic governance arrangements for national resilience.
2. Recommendations
2.1 Members are asked to comment on the draft response to the consultation on the new National Framework and strategic governance arrangements for national resilience set out in paragraph 4.
3. Background
3.1 The Department for Communities and Local Government (DCLG) published its consultation on the Fire and Rescue Service National Framework for England in December 2011 (see Appendix A). The Framework sets out the Government‟s priorities and objectives for Fire and Rescue Authorities in England. The Framework is produced under section 21 of the Fire and Rescue Services Act 2004.
3.2 At its meeting on the 13 January 2012, the Executive Committee of the Cleveland Fire Authority considered the proposed new National Framework. The issues raised by Executive Committee form the draft response set out in paragraph 4 below.
3.3 The Framework is set out under three broad headings: Safer Communities; Accountable to Communities; and Assurance.
3.4 The Government‟s priorities for Fire Authorities, as set out in the Framework, are to:
identify and assess the full range of fire and rescue related risks their areas face, make provision for prevention and protection activities and respond to incidents appropriately; work in partnership with their communities and a wide range of partners locally and nationally to deliver their service; and be accountable to communities for the service they provide.
EXECUTIVE COMMITEE 9 MARCH 2012
3.5 DCLG require consultation responses by 19 March 2012.
3.6 Separately, the Department for Communities and Local Government and the Chief Fire Officers Association have also written to all Fire Authorities seeking comments on proposals for strategic governance arrangements for fire and rescue national resilience (see Appendix B). These proposals need to be considered in conjunction with the proposed National Framework. DCLG have asked for comments on the proposals for national resilience strategic governance arrangements by 16 March 2012.
3.7 In the foreword to the National Framework, Bob Neill MP makes clear that the Framework is intended to reflect the localist agenda. He states that “the best thing central government can do to improve the services provided by Fire and Rescue Authorities and the professionals they employ is not to micro manage from the centre, but to provide an overall strategic direction and support, to empower and encourage them but not to interfere in the way in which they serve their communities”. The Fire Minister is also clear that “ultimately, it is to local communities, not central government, that Fire and Rescue Authorities are accountable”. In addition, Bob Neil MP reiterates Government‟s overarching responsibility for resilience.
3.8 These principles broadly reflect the views of the Members of the Fire Authority and local government more widely. The test of the framework is the extent to which it delivers these principles.
3.9 The consultation document asks four questions:
Question 1: Is the content of each chapter clear, specific and proportionate?
Question 2: Does the draft National Framework set clear and appropriate expectations of Fire and Rescue Authorities? If not, how could it be improved?
Question 3: Are the respective roles of Fire and Rescue Authorities and the Government set out clearly? If not, how could they be improved or made clearer?
Question 4: Do the requirements for Fire and Rescue Authorities on scrutiny, access to comparable performance data and assurance go too far or not far enough?
FIRE & RESCUE SERVICES NATIONAL FRAMEWORK – RESPONSE TO CONSULTATION Page 2
EXECUTIVE COMMITEE 9 MARCH 2012
4. CFA Response
4.1 The following paragraphs set out the key points proposed for inclusion in the consultation response. Rather than answering the four consultation questions directly, the proposed response focuses in on the key issues raised by Members of Cleveland Fire Authority.
i The approach to the development of the new Framework by DCLG is welcomed and the CFA is pleased with the opportunity it has had to contribute to and influence the current draft.
ii We support the comments made by Bob Neill MP in the foreword to the draft and we are pleased that in general the Framework reflects the new terms of the relationship between local and central government.
iii The Government‟s strong statement on its own responsibility for national resilience is also welcome. However, the CFA would seek greater clarification on the respective roles of both DCLG and the Chief Fire and Rescue Advisory Unit (CFRAU) in this new decentralised relationship.
iv However, we think that there are a number of issues which need clarification and or amendment.
4.2 General
The CFA welcome the National Framework document, however, we would wish to express our concerns regarding the potential detrimental impact it may have on the implementation of decentralisation as advocated within the recently enacted Localism Act. The foreword of that legislation emphasises the Coalition Government‟s desire to shift power away from Whitehall and create less bureaucracy by removing imposed decisions, targets and audit inspections. Consequently, the CFA believe that the NF document over-emphasises central government policy and direction rather than specific fire sector policy. In addition, the NF document has an over-prescriptive tone, with an abundance of absolute duties (18 „musts‟). The CFA would welcome clarification on how government policy on decentralisation and the NF directive style sit together.
4.3 Resilience and risk
CFA are very comfortable with the requirements of collaboration and intra and interoperability. However, there is a concern in the sector that the basis for the risk analysis is drawn very broadly, particularly as it relates to risks outside an authority‟s geographic borders (paragraph 1.3 in the consultation document). To enable the CFA to undertake an assessment of risk and any subsequent capability gap would necessitate central support and input on areas such as national risk register, national capability, etc. which is beyond the Authority‟s
FIRE & RESCUE SERVICES NATIONAL FRAMEWORK – RESPONSE TO CONSULTATION Page 3
EXECUTIVE COMMITEE 9 MARCH 2012
scope or resource capability. Consequently, the CFA calls for greater clarity is required on the expected scope of the risk assessment. The assessment of risk should be based on all reasonable Fire Authority risks.
The Consultation document makes no reference to Protective Security. In the CFA‟s view, FRS assets, people and information require a level of secure processes applied to ensure that services function effectively, safely and with resilience. Applying the HMG Security Policy Framework and emphasising its application through the FRS Framework would, we believe, provide assurance that there is a process in place to maintain the, security, accessibility and continuity of assets and other resources. In addition, it will provide partner organisations with a level of confidence that sensitive information will be handled in an appropriate way. Further, it will provide a foundation to enable access to secure networks to share information electronically and it will strengthen requirements to implement business continuity arrangements that already exist within the Civil Contingencies Act. The Authority also believe that inclusion in the FRS Framework will serve to reinforce the National structures which already exist and are operating within the Chief Fire and Rescue Adviser‟s office and through CFOA to implement the objectives of HMG Security Policy Framework.
At paragraph 1.14 of the NF document, the Government place a requirement of the Fire Authority to collaborate with other fire and rescue services, other emergency services, wider Category 1 and 2 Responders and Local Resilience Forums to ensure interoperability. The CFA seeks clarification on what reciprocal arrangements and requirements are being placed upon the other relevant agencies. The CFA‟s view is that this matter is adequately encompassed with the Civil Contingencies Act and therefore unnecessary.
4.4 Strategic governance arrangements
The supplementary letter from DCLG and CFOA sets out a proposal for the new strategic governance arrangements for national resilience. The governance arrangements are a very significant issue and should be incorporated into the National Framework document, and consultation, rather than being the subject of a separate process. On that basis we are commenting on the strategic governance arrangements as part of this consultation response.
CFA recognise the need for a strategic body to oversee national resilience issues. The current National Resilience Forum does excellent work, but it does not perform a strategic role. However, in establishing a strategic body it is essential that it has formal membership (rather than visitation rights) from across Whitehall, so that resilience can be considered at a strategic level across all Category 1 and 2 responders.
FIRE & RESCUE SERVICES NATIONAL FRAMEWORK – RESPONSE TO CONSULTATION Page 4
EXECUTIVE COMMITEE 9 MARCH 2012
It is very important that the strategic governance body has elected member involvement and CFA would support the LGA Fire Commission view that it would like to see greater representation from FSMC.
4.5 Scrutiny
Fire authorities, and more generally local government, has been and is open to scrutiny. There is no single model of scrutiny and so it is to be welcomed that the proposed National Framework is not prescriptive on this matter. Each fire authority comes to its own arrangement on scrutiny and, as the new National Framework implies, it for local communities to judge the appropriateness of those arrangements. CFA are strongly of the view that scrutiny arrangements should remain a local matter for local determination. However, in the interest of continuous improvement, CFA would welcome DCLG‟s assessment of where central government believe the scrutiny gaps are and what improvements are being sought.
4.6 Improvement support
CFA believes that there appears to be a fundamental misunderstanding of the concept of improvement support within the proposed new National Framework. Peer supported improvement programmes, such as the LGA‟s well respected peer review and challenge programmes, are primarily forward looking. They are an aid to unlocking future potential rather than an audit process or a form of intervention (see paragraph 4.3 of the proposed new National Framework). The peer review process has always been voluntary and will remain so. The CFA has always embraced performance assessment but strongly believe that decisions to publish peer reports and self-assessments are a matter for local determination. Consequently, the CFA believe that paragraph 2.9 of the proposed new National Framework should be amended so that the requirement to publish peer reviews and self-assessments is removed.
4.7 Annual statement of assurance
The CFA believe that the requirement for an annual statement of assurance (see paragraph 3.2 of the proposed new National Framework) needs further clarification. There could be merit in this proposal if it means a consolidation of existing reporting requirements and a reduction in the burden of reporting. However, if the requirement is for an additional publication over and above existing reports such as annual financial reports then this must en seen as duplicative and unnecessary. CFA ask that DCLG clarify its expectation about the annual assurance statement in advance of any decisions on this proposed requirement.
IAN HAYTON KAREN WINTER CHIEF FIRE OFFICER DIRECTOR OF CORPORATE SERVICES
FIRE & RESCUE SERVICES NATIONAL FRAMEWORK – RESPONSE TO CONSULTATION Page 5
Bob Neill MP APPENDIX 2 Parliamentary Under Secretary of State
Department for Communities and Local Government Eland House Bressenden Place London SW1E 5DU
Tel: 0303 444 3430 To All Chairs of Fire and Rescue Authorities Fax: 0303 444 3986 E-Mail: [email protected]
www.communities.gov.uk
21 March 2012
Dear Colleague,
FIRE CAPITAL GRANT FUNDING BIDDING PROCESS FOR FIRE AND RESCUE AUTHORITIES 2013-2015
I announced today at the Local Government Association Fire Conference, the opening of the bidding process for Fire Capital Funding for all fire and rescue authorities designed to incentivise and reward efficiencies, for 2013 -15.
Capital grant is currently distributed by way of an allocation of a fixed sum to every authority, with the balance distributed pro rata according to population. Following a consultation last year, I decided to maintain the current allocation process for the financial year 2012-2013, but for 2013-2014 and 2014-2015, move towards a combination of:
• an efficiency fund, administered as a capital grant via a bidding process; and • a pro rata distribution
The bidding process will run from 21 March 2012 to 2 July 2012, and guidance for bidding, along with further detail, is available on our website at:
Link: http://www.communities.gov.uk/publications/fire/capitalfunding201315
I look forward to seeing your bids later this year. If you have any queries relating to the bidding process please email: [email protected] or telephone Dipti Bhatt - 0303 44 44106 or Anthony Maude - 0303 44 42930
I am copying this letter to your Chief Fire Officer or Chief Executive and Finance Officers.
Yours sincerely,
BOB NEILL MP AGENDA ITEM 7.1 CLEVELAND FIRE AUTHORITY MEETING 30 MARCH 2012
LOCALISM ACT 2011 – PAY ACCOUNTABILITY
REPORT OF THE LEGAL ADVISER AND
MONITORING OFFICER
For Approval
1. PURPOSE OF REPORT
1.1 To seek Members‟ considerations on Cleveland Fire Authority‟s Pay Policy Statement as outlined at Appendix 2.
1.2 That in line with the provisions set out in the Localism Act 2011, the Pay Policy Statement is approved and published annually by the Authority before 31st March.
2. RECOMMENDATIONS
2.1 That Members consider Cleveland Fire Authority‟s Pay Policy Statement at Appendix 2.
2.2 That Members ratify the Executive Committees recommendation to approve the Pay Policy Statement at Appendix 2.
2.3 That the Pay Policy Statement be published by the Authority by 31st March 2012.
3. BACKGROUND
3.1 The Localism Act 2011 received Royal Assent on 15th November 2011. Chapter 8 of the Act, Sections 38-43, state that a relevant1 authority must prepare a pay policy statement (PPS) for the financial year 2012-2013 and each subsequent financial year.
3.2 A PPS for a financial year must set out the authority‟s policies for the financial year relating to: the remuneration of its chief officers the remuneration of its lowest paid employees and the relationship between: o the remuneration of its chief officers and o the remuneration of its employees who are not chief officers
1 CLG draft guidance (Nov 2011) under section 40 of the Localism Act: a fire and rescue authority constituted by a scheme under Section 2 of the Fire and Rescue Services Act 2002 or a scheme to which section 4 of the Act applies. Page 1
CLEVELAND FIRE AUTHORITY MEETING 30 MARCH 2012
3.3 The statement must state: the definition of “lowest paid employees” adopted by the authority for the purposes of the statement, and the authority‟s reasons for adopting that definition.
3.4 The Statement must include the policies relating to: the level and elements of remuneration for each chief officer remuneration of chief officers on recruitment increases and additions to remuneration for each chief officer the use of performance related pay for chief officers the use of bonuses for chief officers the approach to the payment of chief officers on their ceasing to hold office under or to be employed by the Authority, and the publication of and access to information relating to the remuneration of chief officers
3.5 A PPS for a financial year may also set out the authority‟s policies for the financial year relating to the other terms and conditions applying to the authority‟s chief officers.
3.6 A relevant authority‟s PPS must be approved by a resolution of the Authority before it comes into force.
3.7 The first statement must be prepared and approved before the end of 31st March 2012. Each subsequent PPS must be prepared and approved before 31st March immediately preceding the financial year to which it relates.
3.8 A relevant authority may by resolution amend its PPS (including after the beginning of the financial year to which it relates).
3.9 As soon as it is reasonably practicable after approving or amending a PPS, the Authority must publish the statement or amended statement in such a manner as it thinks fit (which must include publication on the Authority‟s website)
3.10 The Executive Committee considered the Pay Policy Statement at its meeting on 9 March 2012 and recommended its approval by the Authority.
4. GUIDANCE
4.1 The Secretary of State for Communities and Local Government has issued guidance (Appendix 1) under section 40 of the Localism Act entitled „Openness and Accountability in local pay‟. It sets out the key policy principles that underpin the pay accountability provisions in the Act and all relevant authorities in England must have regard to this guidance in performing their functions in preparing and approving pay policy statements.
LOCALISM ACT 2011 – PAY ACCOUNTABILITY Page 2
CLEVELAND FIRE AUTHORITY MEETING 30 MARCH 2012
4. GUIDANCE continued
4.2 Each local authority is an individual employer in its own right and has the autonomy to make decisions on pay that are appropriate to local circumstances and which deliver value for money for local taxpayers. The provisions in the Act do not seek to change this or to determine what decisions on pay should be taken or what policies that individual employing authorities should have in place. Rather, they only require that authorities are more open about their own local policies and how their local decisions are made.
5. CLEVELAND FIRE AUTHORITY’S PAY POLICY STATEMENT
5.1 Cleveland Fire Authority‟s Pay Policy Statement is attached at Appendix 2. The statement has been produced in line with the provisions of the Localism Act 2011 and the guidance produced by the Secretary of State for Communities and Local Government.
PETER DEVLIN LEGAL ADVISER AND MONITORING OFFICER
LOCALISM ACT 2011 – PAY ACCOUNTABILITY Page 3
APPENDIX 1
Openness and accountability in local pay:
Guidance under section 40 of the Localism Act
Openness and accountability in local pay:
Guidance under section 40 of the Localism Act
February 2012 Department for Communities and Local Government
© Crown copyright, 2012
Copyright in the typographical arrangement rests with the Crown.
You may re-use this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit http://www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or e-mail: [email protected].
This document/publication is also available on our website at www.communities.gov.uk
Any enquiries regarding this document/publication should be sent to us at:
Department for Communities and Local Government Eland House Bressenden Place London SW1E 5DU Telephone: 030 3444 0000
February, 2012
ISBN: 978-1-4098-3351-2
Openness and accountability in local pay: Guidance under section 40 of the Localism Act
Introduction 1. This guidance applies in relation to England only.
2. Sections 38 to 43 of the Localism Act 2011 (‘the Act’) apply to ‘relevant authorities’. Relevant authorities in England, as listed in section 43 (1) of the Act, are:
- a county council, (which may be a unitary) - a district council, (which may be a unitary) - a London borough council, - the Common Council of the City of London in its capacity as a local authority, - the Council of the Isles of Scilly, - the London Fire and Emergency Planning Authority, - a metropolitan county fire and rescue authority, or - a fire and rescue authority constituted by a scheme under section 2 of the - Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies.
3. Relevant authorities are required by section 38(1) to prepare pay policy statements. These statements must articulate an authority’s own policies towards a range of issues relating to the pay of its workforce, particularly its senior staff (or ‘chief officers’) and its lowest paid employees. Pay policy statements must be prepared for each financial year, beginning with 2012/13. They must be approved by full council, or a meeting of members in the case of a Fire and Rescue Authority, and published.
4. This guidance sets out the key policy principles that underpin the pay accountability provisions in the Act. It is issued by the Secretary of State for Communities and Local Government and, by section 40(1) of the Act, relevant authorities in England must have regard to this guidance in performing their functions in preparing and approving pay policy statements.
Scope 5. Nothing in the pay accountability provisions in the Act or in this guidance supersedes existing responsibilities and duties placed on authorities in their role as employers, under employment and other relevant legislation. Authorities must, of course, bear in mind these responsibilities and duties when formulating a pay policy statement. Discussion of an authority's policies in relation to pay would not engage the Data Protection Act as it does not concern data relating to a particular individual.
6. Each local authority is an individual employer in its own right and has the autonomy to make decisions on pay that are appropriate to local circumstances and which deliver value for money for local taxpayers. The provisions in the Act do not seek to change this or to determine what decisions on pay should be taken or what policies that individual employing authorities should have in place. Rather, they only require that authorities are more open about their own local policies and how their local decisions are made.
7. The provisions in the Act do not apply to the staff of local authority schools and therefore teaching staff need not be brought within the scope of a pay policy statement.
Policy Principles 8. It is estimated that, between 2001 and 2008, median top salaries in local government grew at faster rates than entry salaries.1 In that context, around 800 local government employees are in the top 1% of all earners.2 The decisions about the pay and reward of senior local authority staff which have underpinned this growth have, for too long, been taken without the accountability and transparency that many would expect.
9. In the Coalition Agreement, the Government made a commitment to strengthen councillors’ powers to vote on large salary packages for council officers. In addition, the Government has taken necessary steps to increase transparency about how taxpayers’ money is used, including in the pay and reward of public sector staff. The Secretary of State published the Code of Recommended Practice for Local Authorities on Data Transparency on 29 September 2011.3 The Code on transparency enshrines the principles of transparency and asks councils to follow three principles when publishing data they hold; responding to public demand; releasing data in open formats available for re-use; and, releasing data in a timely way. This includes data on senior salaries and the structure of their workforce.
10. In June 2010, the Government asked Will Hutton to undertake an independent review of Fair Pay in the public sector. Hutton’s Final Report was published in March 2011 and made several recommendations for promoting pay fairness in the public sector by increasing transparency over pay and tackling disparities between the lowest and the highest paid in public sector organisations.4 The Government welcomed these recommendations.
11. The provisions in the Act bring together these strands of increasing accountability, transparency and fairness in the setting of local pay. They require councillors (in the case of local authorities) or elected members (in the case of other relevant authorities) to take a greater role in determining pay, ensuring that these decisions are taken by those who are directly accountable to local people. Alongside the Code on transparency, the Act’s provisions will ensure that communities have access to the information they need to determine whether remuneration, particularly senior remuneration, is appropriate and commensurate with responsibility. In addition, the provisions will ensure that policies on the pay and reward of the most senior staff are set clearly within the context of the pay of the wider workforce.
1 Page 9: Hutton Review of Fair Pay in the Public Sector: Interim report (December 2010) 2 Page 41: Hutton Review of Fair Pay in the Public Sector: Interim report (December 2010) 3 Available at: www.communities.gov.uk/publications/localgovernment/transparencycode 4 Available at: www.hm-treasury.gov.uk/indreview_willhutton_fairpay.htm Accountability 12. The Secretary of State considers that decisions on pay policies should be taken by councillors or elected members - those who are directly accountable to local communities. Authorities should ensure that all democratically accountable members have a significant input into how decisions on pay are made, particularly decisions on senior pay, and that they are open about the policies that determine those decisions.
13. That is why the Act requires that pay policy statements, and any amendments to them, are considered by a meeting of full council, or a meeting of members and cannot be delegated to any sub-committee. In scheduling such meetings, authorities should act in accordance with their responsibilities under Part 5A of the Local Government Act 1972. However, the Secretary of State does not consider that pay policy statements engage the Data Protection Act, as they should contain the general principles underpinning the decisions on pay and not personal data. There should therefore be no reason to exclude the public from discussions about the statement on these grounds and such meetings should be open to the public and should not exclude observers. All decisions on pay and reward for chief officers must comply with the current pay policy statement.
14. In addition, under these arrangements, full council, or a meeting of members should be offered the opportunity to vote before large salary packages are offered in respect of a new appointment. The Secretary of State considers that £100,000 is the right level for that threshold to be set. For this purpose, salary packages should include salary, any bonuses, fees or allowances routinely payable to the appointee and any benefits in kind to which the officer is entitled as a result of their employment.
Transparency 15. It is essential that an authority’s approach to pay, as set out in a pay policy statement, is accessible for citizens and enables local taxpayers to take an informed view of whether local decisions on all aspects of remuneration are fair and make best use of public funds. Approved pay policy statements must be published on the authority’s website and in any other manner locally that the authority thinks appropriate, as soon as is reasonably practicable after they are approved or amended.
16. The Act also requires that authorities include in their pay policy statements, their approach to the publication of and access to information relating to the remuneration of chief officers. Remuneration includes salary (for chief officers who are employees) or payment under a contract for services (for chief officers who are self-employed), expenses, bonuses, performance related pay, as well as contractual arrangements involving possible future severance payments.
17. The definition of chief officers (as set out in section 43(2)) is not limited to heads of paid service or statutory chief officers. It also includes those who report directly to the head of paid service or statutory chief officers (non- statutory chief officers), to those who report directly to non-statutory chief officers (deputy chief officers) and, in the case of a Fire and Rescue Authority, a Deputy Chief Fire Officer. Authorities are reminded that the Act sets out the information that they are required to include in their pay policy statements as a minimum. Authorities should consider whether, in the light of local circumstance and their own reward structure, it would be appropriate to extend the scope of their pay policy statement to include any other highly paid members of staff who would not come within the definition of chief officers.
18. The Act does not require authorities to use their pay policy statements to publish specific numerical data on pay and reward. However, authorities should consider how the information in their pay policy statements fits with that data on pay and reward that they publish separately. This includes that data required to be published under the Code of Recommended Practice for Local Authorities on Data Transparency and by the Accounts and Audit (England) Regulations 2011. Indeed, pay policy statements offer an opportunity to put that data firmly within the context of the authorities agreed policies, and to provide the public with a clear justification of how their money is being used appropriately in the pay and reward of senior staff.
Fairness 19. In his interim report, Will Hutton found that top managers in local government have seen larger increases in pay than the lowest paid in their workforces and the pay ratios between local authority chief executives and the lowest paid in local councils have grown in the last ten years.5 In his final report, Will Hutton went on to highlight that there is value in ensuring that decisions about senior pay are taken in the context of similar decisions on lower paid staff, and that the relationship between those decisions is considered.6
20. The Government agrees that the type of approach Hutton recommends will enable a clearer debate about whether pay levels across an organisation are fair, and whether differing approaches to the pay and reward are justified. In this context, the Act requires authorities to set their policies on remuneration for their highest paid staff alongside their policies toward their lowest paid employees. In addition, it requires authorities to explain what they think the relationship should be between the remuneration of its chief officers and its employees who are not chief officers.
21. Hutton recommended the publication of an organisation’s pay multiple – the ratio between the highest paid employee and the median average earnings across an organisation – as a means of illustrating that relationship.7 The Code of Recommended Practice for Local Authorities on Data Transparency includes pay multiples within the minimum set of data that authorities should publish.8 While authorities are not required to publish data such as a pay multiple within their pay policy statement, they may consider it helpful to do so, for example, to illustrate their broader policy on how pay and reward should be fairly dispersed across their workforce. In addition, while they are not required to develop local policies on reaching or maintaining a specific pay multiple by the Act they may wish to include any existing policy.
5 Page 48: Hutton Review of Fair Pay in the Public Sector: Interim report (December 2010) 6 Chapter 2: Hutton Review of Fair Pay in the Public Sector: Final report (March 2011) 7 Chapter 2: Hutton Review of Fair Pay in the Public Sector: Final report (March 2011) 8 Available at: www.communities.gov.uk/publications/localgovernment/transparencycode 22. Section 38(4) of the Act specifies that in addition to senior salaries, authorities must also make clear what approach they take to the award of other elements of senior remuneration, including bonuses, performance related pay as well as severance payments. This should include any policy to award additional fees for chief officers for their local election duties. While some authorities have taken the local decision to include such fees within a chief officer’s overall salary, others pay separate fees. Authorities should make clear in their pay policy statements which approach applies and, if separate fees are paid, describe their approach to setting and publishing these.
23. In articulating their policies on performance related pay, authorities should consider Will Hutton’s recommendations on the value of a system of ‘earn back’ pay. Hutton considered that senior staff could have an element of their basic pay ‘at risk’, to be earned back each year through meeting pre-agreed objectives. It was his view that such an approach would allow pay to vary with performance, and ensure that public services do not offer rewards for failure.9
24. Authorities should ensure that the way they manage their workforce – including payments offered to staff leaving the authority – delivers the best value for money for local taxpayers and sets the right example on restraint. Authorities are already required to publish their policy on offering discretionary compensation for relevant staff in the event of redundancy.10 The Act is intended to bring out in the open the approach an authority may take in offering a severance payment to senior staff as part of a decision to terminate a contract for any reason. As with other elements of a pay policy statement, any decision that authority takes in relation to the award of severance to an individual chief officer, must comply with their published policy for that year and should represent value for money for taxpayers.
25. Taxpayers should rightly expect that their interests are being protected including when senior staff move posts within the public sector, particularly when those moves could be seen to have the effect of driving up average pay levels across the sector. In addition, taxpayers should have the opportunity to question whether they are getting value for money from arrangements where it could appear that the public sector is paying an individual twice – through salary and a pension – for doing the same job. Authorities should have an explicit policy in their pay statement on whether or not they permit such practices within their workforces.
26. Authorities should use their pay policy statements to explain their policies toward the reward of chief officers who were previously employed by the authority and who, on ceasing to be employed, were in receipt of a severance or redundancy payment from that authority. This should include any local policy toward ex-employees later engaged as chief officers under a contract for services. Similarly, authorities should include their policies toward the reward of chief officers who are also in receipt of a pension under the Local Government Pension Scheme or relevant Fire Fighter Pension Scheme. These policies should take account of their agreed approach on abatement of pensions.
9 Chapter 3: Hutton Review of Fair Pay in the Public Sector: Final report (March 2011) 10 Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006 27. The Chief Secretary to the Treasury has made clear that the Government is committed to tackling all forms of tax avoidance.11 Public appointments that involve arrangements whereby savings in tax and National Insurance contributions are made may be at the expense of other taxpayers or other parts of the public sector.
28. In their approach to appointments, particularly senior appointments, authorities should consider the value for money to the whole of the public sector. In developing their pay policy statements, authorities should actively review their approach to the terms of remuneration for their senior appointments, particularly where arrangements exist which could be perceived as seeking to minimise tax payments. Authorities should develop, and include within their pay policy statements, a local policy on the use of such arrangements within their workforces.
Scope for local variation 29. Pay policy statements must include an authority’s policies towards the remuneration of its lowest paid employees. The Act also does not seek to impose a single definition of “lowest paid” for these purposes. Instead, the Act requires authorities to develop their own definition of ‘’lowest paid’’, one which fits appropriately with their own local circumstances and explain why they have chosen that definition. In formulating such a definition, authorities may wish to consider any guidance provided by the sector for this purpose and whether it is appropriate to consult with relevant parties.
30. Section 38(4) sets out in detail the specific elements which a pay policy statement must include in relation to senior pay. In addition to the information which is required by section 38(2)(b) (policies on the remuneration of an authority’s lowest paid employees), it is open to authorities to mirror this level of detail within the pay policy statement for their approach to the pay of those who are not chief officers.
31. While section 38 of the Act specifies the information which must be included in a pay policy statement, authorities can include any additional information relating to their policies on pay that they consider is appropriate to do so.
32. For example, an authority which has or develops a local policy towards the pay of staff working for external contractors with whom the authority has contracted to perform services, may wish to articulate that policy in their pay policy statement. Similarly, an authority may consider it relevant or appropriate to explain their approach to any shared senior management arrangements that it has in place. Where these arrangements exist, an authority should use its pay policy statement to explain its approach to its share of the reward of the staff concerned taking account of principle of the provisions.
33. Pay policy statements may be amended during the course of a financial year to reflect changes or developments in an authority’s pay policy. However, section 39(5) of the Act requires that amendments can only be made by resolution of
11 Hansard: www.publications.parliament.uk/pa/cm201212/cmhansrd/cm120202/debtext/120202- 0001.htm#12020240000004 the full council, or a meeting of members, and that any amended statement must be published as soon as is reasonably practicable.
Queries 34. If you have any queries on this guidance, please submit them using the details below.
Workforce and Pay Team Department of Communities and Local Government Zone 5/F5 Eland House Bressenden Place London SW1E 5DU
APPENDIX 2 Pay Policy Statement 2012/13
(Sections 38-43, Localism Act 2011)
1. Introduction
1.1 In accordance with Sections 38-43 of the Localism Act 2011, this document represents Cleveland Fire Authority‟s Pay Policy Statement (PPS) for 2012/13. It sets out the Authority‟s policies in relation to the remuneration of its staff.
1.2 The PPS is subject to annual review and must be approved by the Authority for each financial year. It was approved on 30th March 2012 for the Year 2012/13.
1.3 The PPS will be published on the Brigade‟s website as soon as reasonably practicable after approval or amendment.
2. Pay Structures
2.1 The pay structure for employees conditioned to the scheme of conditions of service for local authorities‟ fire and rescue services is established through national negotiating committees of the National Joint Council (NJC).
2.2 The pay structure for employees conditioned to the scheme of conditions of service for local government services is established using the NJC spinal column points and the application of the NJC Job Evaluation Scheme which forms the locally determined Pay and Grading Structure.
2.3 For both groups of employees, rates of pay are based on defined stages of development leading to demonstration of competence in the employee‟s role. After all the applicable functions have been assessed as being achieved, competence is deemed to have been demonstrated and the „competent‟ pay rate is applied.
2.3 All pay awards applied to the salary scales are as agreed through the NJC and notified to Authorities.
3. Definitions
3.1 Chief Officers in Cleveland Fire Authority are defined as being the: Chief Fire Officer and Head of Paid Service as designated under section 4(1) of the Local Government and Housing Act 1989 Treasurer to the Fire Authority as designated under section 5(1) of that Act Legal Adviser and Monitoring Officer as designated under section 5(1) of that Act Director of Business Development Director of Community Protection Director of Corporate Services Director of Technical Services
3.2 Lowest Paid Employees:
Fire-fighter (First Pay Point Development) is the lowest paid operational employee; this is paid after a twelve week induction. Once the employee is deemed competent Fire-fighter (Second Pay Point Competent) rate will apply.
Grade A (First Pay Point Development) is the lowest paid non-operational employee; this is the starting point on appointment. Once the employee is deemed competent Grade A (Second Pay Point Competent) rate will apply.
4. Remuneration of and Payments to Chief Officers
4.1 Remuneration
a) Chief Fire Officer The salary will be established via a locally negotiated pay formula which includes an independent consideration of comparative information and any substantial local factors.
The North East Regional Employers Organisation (NEREO) will independently evaluate salary data on an annual basis from two lists of comparable fire and rescue authorities. One list measures „managerial responsibility‟(size of Brigade) and the other list measures „risk‟ based on a risk index including deprivation, COMAH sites etc. The comparable information is used to calculate a median salary with a weighting of 1;2 between the two comparator lists.
This formula approach was approved by the Authority in November 2007.
b) Directors The salaries will be established via a locally negotiated pay formula which includes an independent consideration of relative job size of each post, comparative information, special market considerations and any substantial local factors.
The North East Regional Employers Organisation (NEREO) will independently job evaluate salary levels on an annual basis by applying the Joint National Council (JNC) Job Evaluation Scheme for Chief Officers.
This agreed local pay is reviewed and approved by the Fire Authority on an annual basis.
c) Treasurer The salary will be paid on a pro rata basis directly linked to the salary of the Director of Corporate Services as at 31st March 2012
d) Legal Adviser and Monitoring Officer The Legal Adviser and Monitoring Officer role is provided by Hartlepool Borough Council under a Service Level Agreement. The Legal Adviser and Monitoring Officer receives the equivalent of an increment for discharging the statutory duties of Monitoring Officer under Section 5 of the Local Government and Housing Act, 1989.
2 March 2012
4.2 Increases and Additions to Remuneration
Annual salary increases for the Chief Fire Officer and Directors will be constructed using a two-track approach as set out in paragraphs 10 and 11 of the National Joint Council (NJC) Scheme of Conditions of Service for Brigade Managers („the Gold Book‟). The first element is a nationally negotiated basic salary increase agreed between the Employers and the Association of Principal Fire Officers (APFO) and the second is a review of locally negotiated pay formula.
The Treasurer to the Fire Authority‟s annual increases will reflect those of the Director of Corporate Services.
The Legal Adviser and Monitoring Officer annual increases are not determined by this Authority.
4.3 Bonuses
No bonuses will be paid to Chief Officers
4.4 Performance Related Pay
It is expected that Chief Officers will perform to the highest level and therefore performance related pay will not form part of current remuneration arrangements. This position will be reviewed if legislation and/or guidance relating to senior posts are changed.
4.3 Other Payments
A fixed sum telephone allowance is paid to those Chief Officers with an operational portfolio in recognition of the 24 hour „on call‟ nature of their roles.
A fully expensed car is provided to the Chief Fire Officer and Directors on a leased basis. The maximum annual cost of a leased car was assessed and approved by the Authority in 2002 based on the previous provision of a Brigade vehicle and index linked to NJC Pay Awards each year. Any associated costs above the approved maximum annual costs are paid for by the individuals.
Fuel is provided for the leased vehicle of operational chief officers to reflect the continuous operational/on call role. Non-operational chief officers reclaim business miles in accordance with their terms and conditions.
4.4 Terms and Conditions
Terms and Conditions of Employment are those negotiated nationally by the National Joint Council (NJC) Scheme of Conditions of Service for Brigade Managers („the Gold Book‟) and the Joint Negotiating Committee for Local Authority Chief Officers
4.5 Future Position
In cases of new Chief Officer‟ appointments, the position and remuneration will be reviewed by the Fire Authority prior to recruitment.
3 March 2012
5. Payment to Chief Officers Upon Termination of their Employment
5.1 Chief Officers who cease to hold office or be employed by the Authority will receive payments calculated using the same principles as any other member of staff, based on entitlement within their contracts of employment; their general terms and conditions and existing policies.
5.2 In the case of termination of employment by way of early retirement, redundancy (voluntary or otherwise) or on the grounds of efficiency of the service, the Brigade‟s Retirement and Redundancy Policies and the appropriate Pension Schemes sets out provisions which apply to all staff regardless of their level of seniority.
5.3 The Authority‟s Retirement and Redundancy Policy also sets out the applicable provisions in respect of awarding additional pension entitlement by way of augmentation or otherwise.
6. Flexible Retirements
6.1 The Authority will only consider flexible retirement outside of the normal rules on an individual case by case basis. A full business case must be prepared in each case and approval will depend on the financial case and affordability.
7. Abatement
7.1 In accordance with the Regulations of the relevant Pension Schemes, if an employee retires and then returns to work and their earnings on re-employment (including pension) exceed their earnings before they retired, the Fire Authority will reduce or stop (“abatement”) the employees‟ pension to the point where the aggregate of the pension in payment and the salary received on re-employment does not exceed the level of earnings directly prior to their retirement.
8. Remuneration of Lowest Paid Employees
8.1 As stated in paragraph 3.2 the lowest paid operational employees are Fire-fighter (Development) and lowest paid non- operational employees Grade A (First Point Development)
8.2 The remuneration of these employees are:
Fire-fighter (Development) - £22,038 Non - operational employees Grade A (Development) - £ 13,589
8.3 The Authority introduced single status arrangements in 2004. The lowest paid non- operational lowest paid employees are appointed to posts which have been evaluated using an agreed job evaluation scheme and are remunerated accordingly
4 March 2012
9. Relationship between Chief Officer and Non Chief Officer Remuneration
9.1 The „pay multiple‟ for the Authority is determined by comparing the hourly pay for the highest paid employee against that of the median hourly pay for the organisation as a whole. The current „pay multiple‟ is 5.2.
9.2 The Authority will aim to maintain a pay multiple of less than 10.
10. Publication and Access to Information relating to Remuneration of Chief Officers
10.1 Key documents in relation to pay are this PPS and the Authority‟s Annual Statement of Accounts. Both of these and other information will be published on the Authority‟s website in line with the Code of Recommended Practice for Local Authorities on Data Transparency.
11. Equal Pay
11.1 This Authority is committed to ensuring equal treatment between men and women so that men and women doing equal work and work rated as such are entitled to equal pay. Men and women will be given equal treatment in the terms and conditions of their employment contract if they do like work, work rated as such or work of equal value.
5 March 2012 AGENDA ITEM 8.1 CLEVELAND FIRE AUTHORITY MEETING 30 MARCH 2012
INFORMATION PACK
AUDIT & GOVERNANCE COMMITTEE CHAIR For Information
The following reports were presented and scrutinised at the Audit & Governance Committee on the 24 February 2012:
1. Audit Plan 2010/2011 The Audit Manager outlined the key milestones and noted that the Annual Audit Letter was scheduled for completion by 31 October 2012. She reported that the scale audit fee for 2012/13 was £57,774, representing a 10 per cent reduction from the 2011/12 fee.
2. Audit Progress Report 2011/12 The Audit Manager reported on the completion of the internal financial system controls and noted no significant issues. She reported that an early review of the financial statements would take place prior to the accounts being issued in June 2012.
3. Interim Auditor’s Appointment Members were informed that the Audit Commission had proposed to appoint Gavin Barker as interim auditor for the period 1 April - 31 August 2012.
4. Organisational Performance Presentation Members were appraised of the performance for April to December 2011. A summary of the organisational performance and the individual districts performance were circulated to all CFA members after the meeting.
5. Corporate Risk Register Review A review of the Corporate Risk Register had been undertaken by the Brigade’s Strategic Management Team on 13 December 2011 where new and emerging risks had been identified (Industrial Action & financial position) and included with the Plan.
6. Progress Against Revenue and Capital Budgets The Head of Finance summarised the variances between the expected and actual expenditure and income.
7. Scrutiny of Internal Audit Reports The Head of Finance updated Members that all Internal Auditor’s Reports recommendations were complete with the exception of Payroll which was on target for completion by 31 March 2012.
Page 1
CLEVELAND FIRE AUTHORITY 16 DECEMBER 2011
8. Internal Audit Plan Members scrutinised the report and recommended it be adopted for 2012/13. Members also recommended that Annual Governance Statement be reviewed at the meeting of 25 May 2012.
9. Scrutiny of Treasury Management Strategy 2012/13 Members scrutinised this report, as recommended by the CFA committee at its meeting on 10 February 2012.
Copies of all the above reports are published on the Brigade website and are available from the Democratic and Member Services Department [email protected] (01429) 874076.
COUNCILLOR MICK STOKER CHAIR – AUDIT & GOVERNANCE COMMITTEE
INFORMATION PACK – AUDIT & GOVERNANCE Page 2
AGENDA ITEM 9.1 CLEVELAND FIRE AUTHORITY MEETING 30 MARCH 2012
INFORMATION PACK
REPORT OF THE CHAIR OF OVERVIEW & SCRUTINY COMMITTEE For Information
The following reports were considered by the Overview and Scrutiny Committee on 17 February 2012:-
1. Update on Service Priorities Members received an update on the Service Priorities for 2011/12 and requested further detail and discussion on the Organisational Structure, Asset Management Plan, Carbon Emissions, Social Enterprise/CIC and Sprinklers. Members requested Sprinklers be put on the agenda for the next meeting on 27 April 2012.
2. Call Management and Mobilising Strategy 2011-16 The Chief Fire Officer outlined the Authority’s Call Management Strategy 2011-16.
Copies of all the above reports are published on the Brigade website and are available from the Democratic and Member Services Department [email protected] 01429 874076.
COUNCILLOR NORAH COONEY CHAIR – OVERVIEW & SCRUTINY
Page 1