Agenda and minutes

of the previous meeting held on 18 December 2017 attached.

RESOLVED that the Minutes of the meeting held on 18 December 2017 be signed as a correct record.

In accordance with Standing Order 11, the Authority received a question from Mrs. E. F. Morris of Westward Ho!. on the recently-held consultation on the draft Integrated Risk Management Plan and specifically on the accuracy of certain information contained in the draft Plan. 

As Mrs. Morris was unable to attend the meeting, the question was read out by the Clerk who also indicated that a written response (a copy of which was circulated to those Authority Members present at the meeting) would be provided to Mrs. Morris.

(SEE ALSO MINUTE DSFRA/70 BELOW).

In accordance with Standing Order 12, the Authority received an address from the Fire Brigades Union expressing concern over the consultation process recently undertaken for the proposed Integrated Risk Management Plan.

(SEE ALSO MINUTE DSFRA/70 BELOW).

The Chair of the Committee, Councillor Wheeler, to MOVE the Minutes of the meeting held on 17 January 2018.

RECOMMENDATIONS

(i)         that the recommendation at Minute APRC/17 (“Additional Meeting Date 2018”) be approved; and

(ii)        that, subject to (i) above, the Minutes be adopted in accordance with Standing Orders.

The Chair of the Committee, Councillor Wheeler, MOVED the Minutes of the meeting held on 17 January 2018 which had considered, amongst other things:

·         a proposal for a meeting of the Committee on 27 July 2018;

·         an update on work undertaken by the Authority’s external auditor, Grant Thornton;

·         The Annual Audit Letter for the Authority (for the year ended 31 March 2017) as provided by Grant Thornton;

·         a report on group accounts for the Authority and Red One Ltd.;

·         a report on progress against the approved internal audit plan for the current (2017-18) financial year;

·         an update on the Corporate Risk Register;

·         a report on performance of the Devon & Somerset Fire & Rescue Service during Quarter 2 of the current financial year against measures adopted by the Authority; and

·         an audit and review progress report on IT security.

RESOLVED

(i).       that the recommendation at Minute APRC/17 (Additional Meeting Date 2018) be approved;

(ii).      that, subject to (i) above, the Minutes be adopted in accordance with Standing Orders.

The Chair of the Committee, Councillor Redman, to MOVE the Minutes of the meeting held on 1 February 2018.

RECOMMENDATION

(i)         that the recommendation at Minute CSCPC/9 (“Draft Integrated Risk Management Plan 2018 – 2022 Consultation Results”) be considered in conjunction with agenda item 9 (“Integrated Risk Management Plan 2018 – 2022”) below;

(ii)        that the recommendation at Minute CSCPC/10 (“New Planning Framework”) be approved;

(NOTE:  For ease of reference, a copy of report CSCPC/18/2 – New Planning Framework – as considered by the Committee is reproduced as agenda item 7(c) below

(iii)       that, subject to (i) and (ii) above, the Minutes be adopted in accordance with Standing Orders.

The Vice-Chair of the Committee, Councillor Eastman, MOVED the Minutes of the meeting held on 1 February 2018 which had considered, amongst other things:

·         results from the recently-held consultation on the draft Integrated Risk Management Plan (IRMP); and

·         a proposed new planning framework for the Authority (to include a community-facing Integrated Risk Management Plan and an organisational Fire & Rescue Plan).

For information purposes, a copy of report CSCPC/182 (New Planning Framework) was included with the agenda for this Authority meeting.

RESOLVED

(i).       that the recommendation at Minute CSCPC/9 (Draft Integrated Risk Management Plan 2018 – 2022 Consultation Results) be considered in conjunction with Minute DSFRA/70 below;

(ii).      that the recommendation at Minute CSCPC/10 (New Planning Framework) be approved;

(iii).     that, subject to (i) and (ii) above, the Minutes be adopted in accordance with Standing Orders.

(SEE ALSO MINUTE DSFRA/70 BELOW)

The Chair of the Committee, Councillor Coles, to MOVE the Minutes of the Budget Meeting held on 8 February 2018 (TO FOLLOW).

RECOMMENDATIONS

(i)         that the recommendation at Minutes RC/12 (“Financial Performance Report 2017-18:  Quarter 3) relating to budget transfers in excess of £150,000, as shown in the Appendix to the Minutes, be approved;

(ii)        that the recommendations at RC/13 (“2018-19 Revenue Budget and Council Tax Levels”), RC/14 (“Capital Programme 2018-19 to 2020-21”) and RC/15 (“Treasury Management Strategy [including Prudential and Treasury Indicators Report 2018-19 to 2020-21]”) be considered in conjunction with agenda items 8(a) (2018-19 Revenue Budget and Council Tax Levels), 8(b) (Capital Programme 2018-19 to 2020-21) and 8(c) (Treasury Management Strategy [including Prudential and Treasury Indicators Report 2018-19 to 2020-21]), respectively, below; and

(iii)       that, subject to (i) and (ii) above, the Minutes be adopted in accordance with Standing Orders.

The Chair of the Committee, Councillor Coles, MOVED the Minutes of the budget meeting held on 8 February 2018 (as tabled at the meeting) which had considered, amongst other things:

·         a report on financial performance as at the third quarter of the current (2017-18) financial year;

·         a report on the proposed revenue budget and council tax levels for the forthcoming (2018-19) financial year;

·         a report on the proposed Capital Programme 2018-19 to 2020-21;

·         a report on the proposed Treasury Management Strategy (including prudential and treasury indicators) for the forthcoming financial year;

·         a report on treasury management performance as at Quarter 3 of the current financial year; and

·         a financial statement for Red One Ltd. to Quarter 3 of the current financial year.

RESOLVED

(i).       that the recommendation at Minute RC/12 (“Financial Performance Report 2017-18:  Quarter 3) relating to budget transfers in excess of £150,000, as shown in the Appendix to the Minutes of the meeting, be approved;

(ii).      that the recommendations at Minutes RC/13 (“2018-19 Revenue Budget and Council Tax Levels”), RC/14 (“Capital Programme 2018-19 to 2020-21”) and RC/15 (“Treasury Management Strategy [including Prudential and Treasury Indicators] Report 2018-19 to 2020-21”) be considered in conjunction with Minutes DSFRA 64 (a), (b) and (c) respectively;

(iii).     that, subject to (i) and (ii) above, the Minutes be adopted in accordance with Standing Orders.

(SEE ALSO MINUTES DSFRA/64 (a), (b) AND (c) AND DSFRA/7O BELOW).

Joint report of the Director of Finance (Treasurer) and Chief Fire Officer (DSFRA/18/1) attached.

The Authority considered a joint report of the Director of Finance (Treasurer) and Chief Fire Officer (DSFRA/18/1) on the proposed revenue budget and associated Council Tax levels for 2018-19.

A provisional local government settlement for 2018-19 of £22.618m had been announced on 19 December 2017, as part of a four-year grant settlement. The Settlement Funding Assessment represented a reduction for 2018-19 of 5.3% over 2017-18 and an overall reduction of 25.4% by 2019-20 when compared to the settlement for 2015-16.  The Director of Finance (Treasurer) confirmed at the meeting that the provisional settlement as announced on 19 December had subsequently been confirmed as the final settlement for 2018-19.

The government had also announced a threshold of 3% for Council Tax increases for the next two financial years, beyond which local authorities would be required to hold a referendum.  This was a 1% increase over the 2017-18 threshold, possibly in recognition of likely pay awards.  The proposed budget contained provision for a 3% pay award for uniformed staff.  Each 1% pay award equated, for this Authority, to a cost of £0.517m which was greater than the income that an additional 1% Council Tax increase would generate (£0.487m).  The report also identified, however, the view of the Director of Finance (Treasurer) that, in light of an indicative cost of £2.3m to hold a referendum, consideration of a Council Tax increase in excess of 3% was not a viable option for this Authority.

A core budget requirement of £75.871m (representing a 4.51% [£3.275m] increase over the 2017-18 budget) for 2018-19 had been identified and, in light of the referendum threshold, two associated Council Tax options were proposed:

Option A – freeze Council Tax at the 2017-18 level (£81.57 for a Band D property);

Option B – increase Council Tax by 2.99% above the 2017-18 level (£84.01 for a Band D property).

Even with a 2.99% increase, the core budget requirement exceeded available funding.  Consequently, the report identified savings of £0.711m and also proposed that, depending on the decision on the level of Council Tax to be set, the remaining shortfall in funding required to set a balanced budget in 2018-19 should, as a short-term solution (given the need to maintain the Comprehensive Spending Review earmarked reserve to fund future change activity), be met by reducing the revenue budget contribution to capital funding as indicated:

Option A (Council Tax freeze) – reduction of £2.571m;

Option B (2.99% Council Tax increase) – reduction of £1.289m.

While the four-year settlement afforded greater certainty for future funding, the Authority’s Medium Term Financial Plan indicated that further savings would be required beyond 2018-19 to deliver a balanced budget, with the actual level of savings ranging between £8.4m (2.99% Council Tax increase) to £14.6m (Council Tax Freeze).

As required by the Local Government Finance Act 1992, non-domestic rate payers

had been consulted on the proposals for Council Tax levels. Additionally, as previously agreed by the Authority, public consultation had also taken place. The consultation had been conducted by telephone  ...  view the full minutes text for item DSFRA/64a

Joint report of the Chief Fire Officer and the Director of Finance (Treasurer) (DSFRA/18/2) attached.

The Authority considered a joint report of the Chief Fire Officer and the Director of Finance (Treasurer) (DSFRA/18/2) on proposals for the Authority’s three-year Capital Programme 2018-19 to 2020-21.  All aspects of the proposed programme as set out in the report had been constructed in accordance with the Authority-set Prudential Indicator that debt charges from external borrowing should not exceed 5% of the Authority’s approved revenue budget. The Authority had set a strategy to reduce reliance on external borrowing and the proposed Capital Programme for 2018-19 to 2020-21 (together with an indicative programme for 2021-22 to 2023-24, as set out in the report for illustrative purposes only) had been produced on the basis that no new borrowing would occur within that period.

The proposed programme detailed indicative capital expenditure on estates using information from the Estates review after appropriate consultation to ensure that the programme would meet all operational and risk considerations.  The Fleet replacement programme provided for the introduction of smaller type appliances to be continued (with 25 Rapid Intervention Vehicles to be completed during 2018-19) together with other appliance replacements.

The report also summarised the Prudential Indicators associated with proposed Programme, which had been commended for approval by the Resources Committee at its budget meeting held on 8 February 2018 (Minute RC/14 refers).

RESOLVED that, as recommended by the Resources Committee at its budget meeting held on 8 February 2018:

(i).       the draft Capital Programme 2018-19 to 2020-21 and associated Prudential Indicators, as detailed in report DSFRA/18/2 and summarised in Appendices B and C respectively to these Minutes, be approved; and

(ii).      that, subject to (i) above, the forecast impact of the proposed Capital Programme (from 2021-22 onwards) on the 5% debt ratio Prudential Indicator, as indicated in the report, be noted.

(SEE ALSO MINUTES DSFRA/63(c) ABOVE AND DSFRA/64(c) BELOW)

Report of the Director of Finance (Treasurer) (DSFRA/18/3) attached.

The Authority considered a report of the Director of Finance (Treasurer) (DSFRA/18/3) setting out, amongst other things:

·                a treasury management and investment strategy for 2018-19, with associated indicators; and

·                a Minimum Revenue Provision statement for 2018-19.

The Local Government Act 2003 and supporting regulations required the Authority:

·                to ensure that its capital investment plans were affordable, prudent and sustainable; and

·                to establish a treasury management strategy setting out its policies for borrowing and managing its investments, giving priority to the security and liquidity of those investments.

In doing so, the Authority was required to “have regard to” the Prudential and Treasury Management Codes produced by the Chartered Institute for Public Finance Accountancy (CIPFA). The strategy and prudential indicators as set out in the report were compliant with the latest iterations of the CIPFA Codes.

The proposed Treasury Management Strategy, Annual Investment Strategy and Minimum Revenue Provision Statement for 2018-19 had been considered by the Resources Committee meeting held on 8 February 2018 which had resolved to recommend their approval to the Authority (Minute RC/15 refers).

At the conclusion of the debate on this item, the Authority asked that their appreciation for the work of the Director of Finance (Treasurer) and the finance team in producing the budget reports be placed on record.

RESOLVED that, as recommended by the Resources Committee:

(i).   the Treasury Management and Annual Investment Strategy for 2018-19 as detailed in report DSFRA/13/3 be approved;

(ii).  the Prudential Indicators and Treasury Management Indicators as detailed in the report and set out at Appendix C to these Minutes be approved; and

(iii). the Minimum Revenue Provision (MRP) statement for 2018-19, as set out in the report and attached to these Minutes as Appendix D, be approved.

(SEE ALSO MINUTES DSFRA/63(c) AND DSFRA/64(b) ABOVE)

Report of the Chief Fire Officer (DSFRA/18/4) attached.

The Authority considered a report of the Chief Fire Officer (DSFRA/18/4) to which was appended the proposed Integrated Risk Management Plan (IRMP) 2018 – 2022.  The draft Plan, as approved by the Authority at its meeting on 20 October 2017 (Minute DSFRA/40 refers), had been subject to an eight week consultation the results of which had been considered by the Community Safety & Corporate Planning Committee at its meeting on 1 February 2018.  The Committee had subsequently resolved to recommend the IRMP to the Authority for approval (Minute CSCPC/9 refers).

Councillor Eastman MOVED (with Councillor Ellery seconding):

“that the Integrated Risk Management Plan 2018 – 2022, as appended to report DSFRA/18/4, be approved”.

Some Authority Members commented on concerns expressed by the FBU and one member of the public as to the consultation process undertaken for the draft Integrated Risk Management Plan.  Additionally, Councillor Hannaford expressed concern over the high-level, strategic nature of the document and MOVED (with Councillor Biederman seconding) that the Motion before the Authority be AMENDED:

 “by replacement of words “be approved” by the words “be deferred” i.e. the Motion to read that the that the Integrated Risk Management Plan 2018 – 2022, as appended to report DSFRA/18/4, be deferred”.

In debating this issue further, Members commented that the draft Plan had been considered both by the Community Safety & Corporate Planning Committee and the full Authority prior to the consultation period commencing. 

The Director of Service Improvement confirmed that the plan was evidence-based and that the outcome of the consultation was that the majority (70%) of respondents either agreed or strongly agreed that the plan accurately identified risks to be addressed and high-level mitigating actions to deal with these risks.  The draft Plan had been subject to a full consultation process (including engagement and responses from representative bodies). 

The Director of Service Improvement advised that the “Risk Category – Efficient and effective use of our resources” section of the Plan, “Did you know…?” third bullet point would be amended to read “One two-pump on-call station has attended 170 RTC incidents in five years, whereas another two-pump on-call station attended only one”.

Detailed action plans arising from the Integrated Risk Management Plan would be subject to further consultation as required and in line with Best Value Statutory guidance.

The amendment as moved by Councillor Hannaford was then put to the vote and declared LOST.

Members commented that the Community Safety & Corporate Planning Committee would consider and recommend detailed proposals arising from the Integrated Risk Management Plan and that there might also be merit in establishing a Task and Finish Group, to be open to all Authority Members, to consider the potential consequences of implementation of such proposals.

Councillor Eastman indicated that he would be prepared to accept an amendment to this effect.  The Motion, amended as indicated, was then put to the vote and declared CARRIED whereupon it was

RESOLVED

(a).      that, subject to the amendment as indicated at the meeting by the Director of Service Improvement,  ...  view the full minutes text for item DSFRA/65

Report of the Chief Fire Officer (DSFRA/18/5) attached.

The Authority considered a report of the Chief Fire Officer (DSFRA/18/5) to which was appended, amongst other things, proposed responses to the consultations on:

·         the Fire & Rescue National Framework for England (the deadline for responding had been extended for this Authority, following a request to the Home Office, to 16 February 2016); and

·         Her Majesty’s Inspectorate of Constabulary and Fire & Rescue Services (HMICFRS) Inspection Programme and Framework 2018-19 (deadline for responding:  19 February 2018).

The Chair proposed that both draft consultation responses should be amended by the addition of a paragraph (as tabled at the meeting) setting out contextual details of the Devon & Somerset Fire & Rescue Authority (geography and population, resources, risks faced).

RESOLVED that, subject to inclusion of the additional contextual paragraph (as amended further at the meeting), the responses to the consultations on the Fire & Rescue National Framework for England and on Her Majesty’s Inspectorate of Constabulary and Fire & Rescue Services (HMICFRS) Inspection Programme and Framework 2018-19, as appended to report DSFRA/18/5, be approved and the Chief Fire Officer authorised to submit them on behalf of the Authority.

The Authority received, for information, details of events attended by both the Chair and Vice-Chair since the last Authority meeting.

The Chief Fire Officer reported, for information on:

·         the recent road traffic fatalities on the M5 motorway and A30 and specifically “defusing” afforded to Service staff involved in attending those incidents; and

·         a fire fatality in the Tiverton area involving an elderly male.

RESOLVED that the press and public be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A (as amended) to the Act, namely information relating to the financial and business affairs of any particular person – including the authority holding that information.

(An item taken in accordance with Section 100A(4) of the Local Government Act 1972 during which the press and public were excluded from the meeting).

(Councillors Healey MBE, Saywell and Thomas each declared a personal, non-pecuniary interest in this matter by virtue of their being Authority-appointed non-executive directors on the Board of Red One Ltd).

Councillor Coles MOVED the restricted minutes of the meeting of the Resources Committee held on 8 February 2018 (as tabled at the meeting) which had considered, amongst other things, an update on the performance of Red One Ltd.

RESOLVED that the restricted Minutes be adopted in accordance with Standing Orders

(SEE ALSO MINUTE DSFRA/63(c) ABOVE)

APPENDIX A TO THE MINUTES OF THE BUDGET MEETING OF THE DEVON & SOMERSET FIRE & RESCUE AUTHORITY MEETING HELD ON 16 FEBRUARY 2018

STATEMENT OF THE ROBUSTNESS OF THE BUDGET ESTIMATES AND THE ADEQUACY OF THE DEVON AND SOMERSET FIRE AND RESCUE AUTHORITY LEVELS OF RESERVES

It is a legal requirement under Section 25 of the Local Government Act 2003 that the person appointed as the ‘Chief Finance Officer’ to the Authority reports on the robustness of the budget estimates and the adequacy of the level of reserves. The Act requires the Authority to have regard to the report in making its decisions.

THE ROBUSTNESS OF THE 2018-19 BUDGET

The net revenue budget requirement for 2018-19 has been assessed as £73.870m (Option B in report). In arriving at this figure a detailed assessment has been made of the risks associated with each of the budget headings and the adequacy in terms of supporting the goals and objectives of the authority as included in the Corporate Plan. It should be emphasised that these assessments are being made for a period up to the 31 March 2018, in which time external factors, which are outside of the control of the authority, may arise which will cause additional expenditure to be incurred. For example, the majority of retained pay costs are dependent on the number of call outs during the year, which can be subject to volatility dependent on spate weather conditions. Other budgets, such as fuel are affected by market forces that often lead to fluctuations in price that are difficult to predict. Details of those budget heads that are most at risk from these uncertainties are included in Table 1 overleaf, along with details of the action taken to mitigate each of these identified risks.

Whilst there is only a legal requirement to set a budget requirement for the forthcoming financial year, the Medium Term Financial Plan (MTFP) provides forecasts to be made of indicative budget requirements over a four year period covering the years 2019-20 to 2021-22.  These forecasts include only prudent assumptions in relation future pay awards and prices increases, which will need to be reviewed in light of pay settlements and movement in the Consumer Prices Index.

TABLE 1 – BUDGET SETTING 2018-19 ASSESSMENT OF BUDGET HEADINGS MOST SUBJECT TO VOLATILE CHANGES  

THE ADEQUACY OF THE LEVEL OF  ...  view the full minutes text for item DSFRA/70