fire authority...committee on 20 september 2011 (minute 3629 refers). a member referred to minute...

FIRE AUTHORITY

HUMBERSI DE

A G E N D A HUMBERSIDE FIRE AUTHORITY

Tuesday 13 December 2011

10.30 a.m.

Business Page Number

Lead Primary Action

Requested

A OPEN AGENDA

1. Apologies for absence - Secretary/Director of People

To record

2. Declarations of Interest (Members and Officers)

- Secretary/Director of People

To declare and withdraw if prejudicial

3. Minutes of meeting of the Authority held on 27 September 2011

(pages 1-18)

Chairperson

To Approve

4. Petitions and Deputations in accordance with Rule 13, Part 4 of the Constitution


To receive

5. Communications as Chairperson or Secretary may desire to lay before the Authority.

- Chairperson/ Secretary/Director of People

To receive

6. Questions by Members (if any) in accordance with Rule 12, Part 4 of the Constitution


To receive

7. Minutes of Committees:

(Note: ‘A’ denotes minutes approved as a correct record by the relevant committee, ‘D’ denotes yet to be approved)

- Chairperson To receive and approve any recommend-ations

(a) Governance and Standards Committee – Assessment Sub-Committee - 3 October 2011 (D)

(pages 19-20)

(b) Governance and Standards Committee – 25 October 2011 (D)

(pages 21-26)

(c) Policy and Executive Committee – 18 November 2011 (D)

(pages 27-32)


Lead Primary Action

Requested

(d) Appointments Committee – 18 November 2011(A)

(pages 33-34)

(e) Audit, Performance and Scrutiny Committee – 29 November 2011 (D)

(to follow)

(f) Appointments Committee – 9 December 2011 (D)

(to follow)

8. Executive Report

(pages 35-38) Chief Fire Officer & Chief Executive

To consider

9. Annual Audit Letter 2010/11*2

(pages 39-50) Audit Commission To approve

10. Treasury Management Mid-Year Update Report 2011/12*2

(pages 51-62) Director of Finance/ S.151 Officer

To consider

11. Asset Management Planning*1

11.1 Estates Capital Programme 2012/13 Onwards


To approve

11.2 Vehicle Replacement Programme 2012/13 Onwards


To approve

11.3 IT Capital Programme 2012/13 Onwards


To approve

12. Financial Planning 2012/13 Onwards*1, 2


To consider

13. Strategic Plan 2011-14

13.1 Opportunities for Collaboration and Income Generation

(pages 101-104) Chief Fire Officer/Chief Executive

To consider

13.2 Review of Non-Front Line Service Delivery

(pages 105-110) DCO/Director of Operations

To consider

13.3 Transformation/Deinvest Corporate Support

(pages 111-114) Secretary/Director of People and Director of Finance/S.151 Officer

To consider

13.4 Change Management – HR Next Steps

(pages 115-118) Secretary/Director of People

To consider

14. Service Performance Report for the Second Quarter Period April to September 2011*2

(pages 119-136) Chief Fire Officer/Chief Executive

To consider

15. Operations (Incidents of Special Interest)

(pages 137-146)

DCO/Director of Operations

To consider


Lead Primary Action

Requested

16. Localism Act – Impact upon Humberside Fire Authority


To consider

17. Corporate Risk /Opportunity Management


To consider

B EXEMPT BUSINESS

The Fire Authority is asked to consider excluding the press and public from the meeting during consideration of the following item on the grounds that it is likely to involve the disclosure of exempt information as defined in paragraph 1 of Part 1 of Schedule 12A of the Local Government Act 1972. In making its decision, the Fire Authority is asked to confirm that, having regard to all circumstances, it is satisfied that the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

18. Appointment of Chief Fire Officer and Chief Executive

(oral) Secretary/Director of People

To ratify

Note *1 - Paper previously before Policy and Executive Committee Note *2 - Paper previously before Audit, Performance and Scrutiny Committee

Humberside Fire Authority 27 September 2011

Agenda Item No. 3

HUMBERSIDE FIRE AUTHORITY

27 SEPTEMBER 2011

PRESENT: Representing East Riding of Yorkshire Council:

Councillors Chapman MBE, Hudson, Ibson, Jefferson JP, Mole and Moore Representing Kingston upon Hull City Council:

Councillors Gardiner, Gemmell OBE, Glew, Ross, Shipley and Williams Representing North Lincolnshire Council:

Councillors Briggs (Chairperson), Swift, Waltham and Wells Representing North East Lincolnshire Council:

Councillors De Freitas and Walker Mrs Clarke (Independent Member of the Governance and Standards Committee) and Mrs Hardy (Independent Member of the Audit, Performance & Scrutiny Committee) attended as observers.

Chief Fire Officer & Chief Executive, Deputy Chief Officer/Director of Operations, Secretary/Director of People, Director of Finance/Section 151 Officer, Assistant Chief Officer/Director of Safety, Head of Human Resources and Committee Manager were also present. Ms J Rae (Audit Commission) was also present.

Apologies for absence were received from Councillors Billard (7.Absent from meeting but no reason provided), Engall (3.Constuent Authority commitments), Hornby (3.Constituent Authority commitments), Skow (7.Absent from meeting but no reason provided). The meeting was held at the Humberside Fire and Rescue Service Headquarters, Kingston upon Hull. Meeting commenced at 10.30 a.m. 3631 DECLARATIONS OF INTEREST - The Chairman (Councillor Briggs) declared a personal interest in Agenda Item No. 7(a) (Minutes of the Governance and Standards Committee) in respect to Minute 3599. The Chief Fire Officer & Chief Executive and Deputy Chief Officer/Director of Operations declared a prejudicial interest in Agenda Item No. 18 (Appointment of Chief Fire Officer & Chief Executive) and stated that they would leave the meeting for that item. 3632 MINUTES – The minutes of the meeting of the Authority held on 24 June 2011 were submitted.

A Member referred to Minute 3573 (Executive Report) insofar as it related to the safety checking of the Services’ 13.5m ladders and queried whether the Authority would be receiving a report on the outcome of the testing carried out. The Chief Fire Officer & Chief Executive stated that a report had been submitted to the Audit, Performance & Scrutiny Committee on 20 September 2011 (Minute 3629 refers). A Member referred to Minute 3573 (Annual Statement of Accounts 2010/11) insofar as it related to a question regarding the electricity supply for the mobile phone mast at Peaks Lane Fire Station. The Director of Finance/Section 151 Officer stated that the mast was on a separate electricity meter.

Resolved – That the minutes of the meeting of the Authority held on 24 June 2011, having been printed and circulated amongst the Members, be taken as read and correctly recorded and be signed by the Chairperson.

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3633 PETITIONS AND DEPUTATIONS - The Secretary/Director of People stated that no petitions had been received and no requests for a deputation had been received under Rule 12, Part 4 of the Constitution. 3634 COMMUNICATIONS - The Secretary/Director of People stated that no communications had been received. 3635 QUESTIONS BY MEMBERS - The Secretary/Director of People stated that no questions had been received from Members in accordance with Rule 12, Part 4 of the Constitution. MINUTES OF COMMITTEES:

3636 Governance and Standards Committee - The minutes of the Governance and Standards Committee held on 6 September 2011 were submitted. The Secretary/Director of People drew Members’ attention to the recommendation in Minute 3587 that the present Chairperson (Mrs J Clarke should continue to hold office until the end of the current municipal year (i.e. until the Annual Meeting of the fire Authority in 2012).

Resolved - That the minutes of the Governance and Standards Committee held on 6 September 2011 be received and the recommendation therein approved and adopted. 3637 Policy and Executive Committee - Resolved - That the minutes of the Policy and Executive Committee held on 9 September 2011 be received. 3638 Audit, Performance and Scrutiny Committee - Resolved – That the minutes of the Audit, Performance and Scrutiny Committee held on 20 September 2011 be received. 3639 EXECUTIVE REPORT - The Chief Fire Officer & Chief Executive submitted a report updating Members on the following issues.

Integrated Risk Management Plan (IRMP) 2012/13 - Members were reminded that in March 2011 they had approved a number of initiatives that would lead to a reduction in the wholetime duty system (WDS) establishment of 72 posts. Without compromising operational efficiency that reduction of establishment was taking place progressively resulting in a number of supernumerary staff being in place throughout 2012. Members had also asked for additional work to be undertaken on the rescue station duty system (Residential Self Rostering), which would include further discussions with the Fire Brigades’ Union (FBU) before that proposal is confirmed by the Authority. Corporate Management Team (CMT) regarded the application of different duty systems to rescue stations only as being too restrictive and had therefore widened the scope of that work to include all stations. Members were assured that CMT was not seeking any more reductions in the establishment than those proposed in IRMP 2011/12, just alternative ways of achieving that number. As those personnel were unlikely to exit the Service before the end of 2013 and the budget forecasts remained positive it was not necessary to seek further WDS staff reductions in 2012. CMT had therefore proposed that the risk profile in the Humberside area be re-assessed to establish that there had been no significant change of risk since the previous IRMP. Once that was confirmed the 2012/13 IRMP would be produced as a refreshed and refined version of the current IRMP.

Links with the Armed Forces – The report outlined links that the HFRS Training Section had established with Territorial Army officers from Londsborough Barracks, Hull to assist with their Junior NCO training. The aim of the training was to provide the NCOs with new challenges that would help prepare them for operations in the field. The feedback from a training event on 31 July 2011 had been very positive. The Territorial Army had reciprocated by officering a training day for HFRS personnel later in the year. These activities were helping to cement a sound relationship with local armed forces which included the provision of a heavy rescue training venue at

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Leconfield and quad bike training for Service Technical Reserve personnel and were yet another example of creative partnership working and demonstrated real support for the local armed forces.

International Firefighters’ Challenge – The report outlined the involvement of HFRS personnel at an International Firefighters’ Challenge held in Poland from 13/14 August 2011. Whilst the HFRS team had trained hard for the event they were unable to secure a medal position which indicated the high calibre of the competition. Such events promoted the image of the Service and contributed to the maintenance of morale amongst staff.

Marine Incident Response Group (MIRG) Update - Despite significant contributions to consultation from the fire sector including the Chief Fire Officers’ Association, discussions nationally involving HFRS and the favourable findings of the Transport Select Committee, the Maritime & Coastguard Agency (MCA) had restated their intention to remove funding for the Marine Incident Response Group as they felt it was not needed as a control measure for fires aboard vessels at sea. The Agency believed that provision was adequately covered by the resources and crews on-board vessels, and was also of the opinion that the initial response of 12 firefighters was excessive and indicated a risk averse approach to firefighting. Members were reminded that HFRS would normally mobilise 13 firefighters to house fires when persons were reported. It was the opinion of HFRS that the removal of MIRG was not a suitable approach, and specifically not one which would adequately mitigate the risk to life, as well as the economic and environmental risks associated with a serious vessel fire off the East Coast. Currently HFRS had 46 personnel, all volunteers, who had undergone intensive training since 2006 and could be airborne to an incident at sea within an hour. HFRS was now the only local MIRG responder and HFRS personnel covered the coast from The Wash up to the River Tyne. That also meant that the Service had an excellent response capability for incidents in the Humber Estuary. Whilst the Service was of the opinion that that response was vital, and in fact one of its officers was the Deputy Lead for MIRG nationally, the Service also agreed with the Transport Select Committee that this was a matter of national resilience and that the cost should not be borne solely by the communities in the Authority’s area. The savings which the MCA would make by removing this capability were only £380k, however, the fact that many of the volunteers did so because they were part of a key national arrangement with the associated training and operational back up that comes with that arrangement also meant that even if the money could be found to cover the shortfall the response was still likely to be adversely affected. In order to influence discussions at Government level HFRS had written to all the Members of Parliament in the Service area to request they lobby for the retention of MIRG on the Authority’s behalf

Fire Safer Cigarettes – Update from Chief Fire & Rescue Adviser (CFRA) - Following publication of both the CEN and BSI standard regarding low propensity cigarettes, officers from the Chief Fire and Rescue Adviser’s Unit (CFRAU) had continued to meet with the main UK tobacco manufacturers to ensure they had in hand plans to comply with the Standard. It was clear that the industry was taking the responsibility to comply with the Standard very seriously and was on track to deliver compliance for all cigarette products at point of manufacture in advance of the publication of the Reference Standard on 17 November 2011. The Business of Innovation and Skills’ (BIS) standard practice was to communicate the existence of new standards through the Trading Standards Interlink to Local Authority Trading Standards departments on the date they take effect. This will confirm the UK Government’s expectation that all cigarettes sold in the UK and EU will comply with the new safety standard. BIS would not instruct nor expect Trading Standards to enforce the standard; it would be a matter for local Trading Standards to determine their role in any monitoring and enforcement activity. However, based on discussions with the tobacco industry, non-compliance was not expected to be an issue.

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Blue Lights Project - Members were reminded that as a part of the 2008 Integrated Risk Management Plan (IRMP) officers were instructed to work with the Police and with Citysafe to acquire joint city centre premises in Hull through a project known as the “Blue Lights Project”. The aim was to secure a 24 hour fire and rescue presence in the centre of Hull and to promote better joint working, particularly in terms of community safety. The project progressed slowly but ultimately led to an acceptable proposal for a new-build joint facility on Francis Street, Hull. As investment in Hull Central Fire Station was kept to a minimum pending replacement, conditions for fire crews were gradually deteriorating therefore a fallback plan was developed which involved the refurbishment of Hull Central Fire Station. Finding themselves in a similar situation the Police also made fallback arrangements. Due to the extreme funding pressures being experienced by much of the public sector Hull City Council, the major partner in the project, had been unable to fund the project without grant-aid which had not been forthcoming. The Blue Lights Project had therefore been terminated and would be officially wound up at a meeting scheduled for 18th October 2011. As HFRS was no longer committed to the Francis Street site the possibility of merging Hull Central Fire Station and Hull North Fire Station (which was also in very poor condition) was investigated but was proven to be impracticable as the service would be unable to meet its response standards. Because the Worship Street site (Hull Central, administrative buildings and workshops) was in poor condition and was too large for Service needs preliminary discussions were being had with Hull City Council to establish the feasibility of exchanging the Worship Street site for a smaller site in a better location. If those discussions were unsuccessful Hull Central Fire Station would be radically refurbished. In the meantime CMT intend to redevelop Hull North Fire Station as a matter of urgency and to acquire workshop premises in a suitable location. All such proposals would be brought before Members for consideration and approval. The Director of Finance/Section 151 Officer stated that a report on the Clough Road site would be submitted to the December 2011 meeting of the Authority.

A Member asked whether this meant that the possibility of a combined Blue Light station was no longer under consideration. The Chief Fire Officer & Chief Executive stated that the benefits of a combined site were limited and the only way the Citysafe scheme would have been successful would have been by including in the project all Community Protection Unit (CPU) advocates. The Chief Fire Officer & Chief Executive stated that he was satisfied that it was possible to deliver a joint service without the necessity for a joint location.

Amendments to Firefighters’ Pension Scheme (1992) and the New Firefighters’

Pension Scheme (2006) – Consultation - Lord Hutton’s final report on public sector pensions was published on 10 March 2011. That report made it clear that change was needed to make public sector pension schemes simpler and more transparent and fairer to those on low and moderate earnings, and set out 27 recommendations for public sector pension reform, including protection of accrued rights, the retention of a form of defined benefit and the fairer sharing of risk between taxpayers and scheme members. The Government had set out its approach to taking forward the proposed reforms to the firefighters’ pension scheme in July 2011 and would publish a separate consultation on the proposed 2012-13 increase in employee contribution rates shortly. The consultation therefore applied to proposed changes to both of the fire service pension schemes each of which had already been subject to discussion at the Firefighters’ Pension Committee. The report listed changes to the scheme which were the subject of the consultation. Members were reminded that the proposals outlined were but a part of wider pension reform within the Fire and Rescue Service and the wider public sector. The proposals would enhance the management of the Firefighters Pension Scheme and if approved should provide the service with the option of offering early retirement without negative financial consequences to the scheme or its members. The closing date for responses to the consultation was 26 October 2011 and Members who wished to view the full consultation document could obtain a copy from the Secretary/Director of People.

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Single Fire and Rescue Service in Scotland - Scotland’s First Minister, Alex Salmond, had recently announced the Police and Fire Reform Bill which would establish single services in Scotland. The Bill would be introduced in April 2012 and at Stage 1 of that Bill, the Scottish Government would move to appoint the Chair and members of the new Scottish Fire and Rescue Board. A Chief Officer should be appointed by December of that year. The target date for the new Service taking effect was April 2013 although civil servants accepted that that deadline might slip by two or three months. Whilst the proposal had no immediate effect on English Fire and Rescue Services it might prove to be an interesting prototype for a more efficient Fire and Rescue Service. It would also be interesting to contrast this approach with the emerging move towards localism in England.

The Future of the Fire Service College - The Fire Futures report indicated a service-wide support for the maintenance of the Fire Service College. It did however acknowledge that the current business model was ineffective and unsustainable. The Government had therefore embarked on pre-market engagement on future options for the Fire Service College. The purpose for that engagement was to inform its view of sector appetite and viable options for the future with the aim of delivering a new model for the Fire Service College. The Government’s preferred option for a Fire Service College of the future was a partnership between the public and private sectors with the fire sector playing a key role in that partnership. The Government was seeking views and ideas on arrangements that would best secure the future of the College and offer best value for the public purse. Those options might be wide- ranging and should challenge how college assets were used, training delivery models and whether training could be delivered by other organisations. The first phase of engagement would close on 31 October 2011 and Members were assured that HFRS would offer its views on the future of this unique and valuable national asset.

Resolved – That the content of the report be noted, 3640 ANNUAL GOVERNANCE REPORT 2010/11 – Ms Rae (Audit Commission) submitted the Annual Governance Report summarising the findings from the 2010/11 audit which was substantially complete. The report, which had been presented to the Audit, Performance and Scrutiny Committee on 20 September 2011 (Minute 3614 refers), was submitted prior to the District Auditor giving his formal opinion on the audit. The District Auditor expected to issue an unqualified opinion on the financial statements and an unqualified value for money conclusion. In respect of the financial statements no material errors in the accounts had been identified although a number of misstatements had been adjusted in the revised statement, as set out in Appendix 2 to the report. The District Auditor had carried out sufficient work to satisfy himself that proper arrangements had been made for securing value for money. The report identified the key messages that the Fire Authority should consider before the District Auditor issued his financial statements opinion, value for money conclusion, and audit closure certificate. It included only matters of governance interest that had come to the District Auditor’s attention in performing his audit. The report asked that this Committee and the Fire Authority should (i) take note of the adjustments to the financial statements set out in Appendix 2 to the report before approving the financial statement; (ii) approve the letter of representation on behalf of the Authority before the District Auditor issued his opinion and conclusion as set out in Appendix 1 to the report, and (iii) agree the response to the proposed action plan set out in Appendix 3. Ms J Rae drew Members’ attention to the section of the report which identified errors in the financial statements; significant weaknesses in internal control, and recommendations.

A Member referred to the significant weakness identified in the report relating to the checking of life certificates in respect to the payment of firefighter pensions and asked whether the findings meant that some pensions had been paid to pensioners who were deceased. The Director of Finance/Section 151 stated that 700 pensioners had been asked to supply life certificates and there were just 8 cases in which a reply had not been received and which were being followed up. The Director of Finance/Section 151 Officer stated that in

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the event that any payments had been made incorrectly he would look to recover such payments form the pensioner’s estate. Members thanked Ms J Rae for her report and acknowledged the work of the Audit Commission in supporting the Authority in the audit process. Resolved – (a) That the financial statement be approved and the adjustments to the financial statements set out in Appendix 2 to the report be noted, and

(b) that Members agree the response to the proposed action plan set out in Appendix 3 to the report, 3641 STATEMENT OF ACCOUNTS 2010/11 – The Director of Finance/Section 151 Officer submitted a report, further to Minute 3573, which included the audited version of the Fire Authority’s accounts for the financial year 2010/11. The draft un-audited Statement of Accounts for 2010/11 had been submitted to the Audit, Performance and Scrutiny Committee on 17 June 2011 and to the Fire Authority on 24 June 2011. The report now submitted had been presented to the Audit, Performance and Scrutiny Committee on 20 September 2011 (Minute 3615 refers). Only one change had been identified during the audit which had impacted on the outturn position ‘bottom line’, that was a correction of the accounting treatment of a prepayment (£102k) which whilst paid in 2010/11 strictly related to the 2011/12 financial year. The item was not material but the judgement was made for completeness and accuracy to correct the treatment. The amendment had resulted in a revised outturn underspend of £2.489m (£2.387m was reported in the June 2011 draft Accounts) as set out in Appendix 1 to the report. The planning for 2011/12 Annual Accounts had already begun and where possible the experiences of the first year of International Financial Reporting Standard (IFRS) compliant accounts would be used as a platform going forward. The Audit Commission’s Annual Governance Report (AGR) was included elsewhere on the Agenda for this meeting (Minute 3640 above refers). The AGR contained an unqualified opinion on the Authority’s accounts for 2010/11 and an unqualified value for money conclusion. Both of those aspects were extremely pleasing and showed another year of sound financial management. The report represented the final stages in the sign-off of the 2010/11 Statement of Accounts. A draft ‘Letter of Representation’ was attached at Appendix 2 to the report for approval by the Fire Authority before being sent to the District Auditor. Once approved the Statement of Accounts document would be distributed to stakeholders and local libraries as well as posted on the web-site, to ensure information was as accessible as possible. A further notice would be placed in the press to inform the public that the 2010/11 audit of accounts was now closed.

Resolved – (a) That Members approve the audited Statement of Accounts for 2010/11 and that they are signed by the Chairperson on behalf of the Fire Authority, and

(b) that the letter of representation to the District Auditor as set out in Appendix 2 to the report be approved and signed by the Director of Finance/Section 151 Officer on behalf of the Authority. 3642 FINANCIAL OUTLOOK FOR HUMBERSIDE FIRE AUTHORITY 2012/13 ONWARDS - The Director of Finance/Section 151 Officer submitted a report which took a comprehensive look at the Authority’s financial prospects for the years 2012/13 to 2014/15. The report also included the annual review of the Prudent Minimum General Reserve (PMGR). The Authority’s outturn for 2010/11 had delivered an underspend and closing level of total Revenue Reserves of circa £10m at 31 March 2011. The Authority had set a balanced budget for 2011/12 with an estimated contribution to Revenue Reserves and a 0% change in precept/council tax as part of the Government’s national initiative to freeze council tax. Decisions taken by the Authority on 4 March 2011 in relation to the 2011-14 Strategic Plan (SP) and Integrated Risk Management Plan (IRMP) for 2011/12 had allowed for a managed approach to balancing the budget over the short-term. As a result of those early decisions, Members were reminded of the paper to the 24 June 2011 Fire Authority which highlighted that a scheme of Voluntary Redundancy and/or Compulsory Redundancy would

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not be needed during the 2011/12 financial year. The position was and remained that the Authority should be able to meet its requirements through natural wastage and retirement in the short-term. The financial projections for 2012/13, 2013/14 and 2014/15 had been updated based on the latest assumptions and information set out in the Table at paragraph 8 of the report, and were shown in Appendix 1 to the report. The report identified three uncertainties which had have been resolved over the last 12 months which had an impact on the Authority’s financial position and a number of issues that still remained uncertain as follows:

Years 3 and 4 of CSR10 (2013/14 and 2014/15) – Formula Grant Notification will not be known until late 2012;

The review of the Fire and Rescue Formula Grant allocation mechanism;

The Local Government Resource Review: Stages 1 and 2;

The Localisation of Support for Council Tax in England;

Pension impacts – potential increases in the Employer’s Contribution;

Pay Awards – unrest building over the 2/3 year pay freeze placed on the public sector.

Appendix 1 to the report tried to reflect those uncertainties by showing a middle, upper and lower set of scenarios for 2013/14 and 2014/15 as follows:

More favourable than Middle - 15% real reduction in Formula Grant by 2014/15 Middle - 25% real reduction in Formula Grant by 2014/15 Less favourable than Middle - 35% real reduction in Formula Grant by 2014/15

2013/14 onwards was a critical period and all of the scenarios would be exacerbated by any failure to deliver the initial £4.4m of efficiencies agreed in March 2011. Those were already built into the MTFP for 2012/13 to 2014/15. It could be seen from the scenarios in Appendix 1 that in the least favourable scenario the Authority could have a circa £3.5m shortfall for the 2014/15 financial year. In short, the period for 2013/14 onwards was highly uncertain and therefore decisions on the precept for 2012/13 and any additional expenditure commitments should be taken with that in mind. Appendix 2 to the report updated the Authority’s risk assessment for the Prudent Minimum General Reserve (PMGR). The level now recommended was £5.5m and heightened risks around 2013/14 and 2014/15 were instrumental in that judgement. The outcomes of the first two years of CSR10, whereby a significant number of Fire Authorities had their Formula Grant reduced by 12.9% in cash-terms over 2011/12 and 2012/13, made that all the more real. A further report would come before Members at the November/December 2011 round of meetings to set out the details of the budget for 2012/13.

A Member asked whether the Director of Finance/Section 151 Officer was saying that if the projections for 2013/14 and 2014/15 are correct the Authority would have to set its precept at a higher level. The Director of Finance/Section 151 Officer stated that in terms of any deficit the Authority could consider using the precept (but that had limited possibilities) or reduce overall expenditure. The Member stated that if any deficit had to be funded from within then the Service would suffer. A Member referred to the recent proposals to cut staffing at Brough Aerospace and asked whether there would be scope for detrimental affects on business rates. The Chief Fire Officer & Chief Executive stated that crewing at Brough Fire Station might be compromised but that the Authority had a standard for fire cover in Brough that would be met irrespective of the situation at the Brough plant. The Director of Finance/Section 151 Officer stated that the situation at the Brough plant would have a detrimental impact on business rates.

Resolved – (a) That Members note the report and understand the potential financial challenges over the period to 2014/15, and

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(b) that the Prudent Minimum General Reserve (PMGR) be set at £5.5m in line with the Risk Assessment in Appendix 2 to the report.

(c) that Members record their thanks to the Director of Finance/ Section 151 Officer and his team for their excellent work in respect of the reports at this meeting. STRATEGIC PLAN 2011-14 3643 Opportunities for Collaboration between Humberside Fire & Rescue Service and North or South Yorkshire Fire & Rescue Service - The Chief Fire Officer & Chief Executive submitted a report, further to Minute 3578, indicating that at the June 2011 meeting of the Authority Members had approved recommendations that Humberside Fire and Rescue Service (HFRS) should enter into discussions with North Yorkshire Fire and Rescue Service (NYFRS) and South Yorkshire Fire and Rescue Service (SYFRS) regarding opportunities for mergers; collaboration; the sharing of chief officers and shared management teams. Having taken political soundings from both Authorities it was agreed that a full merger of HFRS and NYFRS would be unlikely to meet the aspirations of Members or the communities they serve. There were also significant practical barriers to merger borne out of different risk profiles, different approaches to integrated risk management and the rejection by the Government of the option to set a differential precept within a single combined fire authority. That led to the conclusion that a common response standard across a single, merged fire and rescue service could not be achieved rendering merger impracticable. Having accepted that full merger was neither achievable nor in the best interest of either authority the feasibility of forming a shared management team was considered. That would likely involve the merging of HFRS and NYFRS Corporate Management Teams under a single Chief Fire Officer or Chief Executive. Whilst previous preferred partnership reports had identified many similarities between the services the discussion also explored the significant differences between them. The Humberside Fire Authority had developed and maintained a challenging set of response standards which had been proven to effectively manage the diverse risk found in the Service area. Those standards required a significant number of whole time duty stations to meet the specified attendance times and weight of response. NYFRS managed their risk in a way that relied much more on retained duty system cover and day crewed cover. Whilst that resulted in longer average attendance times the nature of risk in North Yorkshire was such that they found that approach satisfactory. From a fire prevention perspective there were many more households in the Humberside area at serious risk from fire than there were in North Yorkshire which meant that HFRS had more staff dedicated to fire prevention than NYFRS. Those differing risk profiles and resulting resource allocation meant that HFRS had a significantly larger budget than NYFRS. The Chief Fire Officers concluded that the consequence of those differences in risk and funding was that a joint corporate management team could not effectively advise two separate political bodies particularly when budget pressures necessitated service cutbacks. Work on the preferred partnership had progressed slowly due to the difficulties caused by each Service’s particular needs. NYFRS had decided to procure a new mobilising system that should be compatible with that in place in HFRS but did not however foresee any efficiencies as a result of control room collaboration until 2015.

HFRS was working towards the procurement of a Resource Management System which should be compatible with those in use in South and North Yorkshire. That would offer the possibility of collaboration to provide resilience and to generate some small savings through joint working. The HFRS/NYFRS Joint Programme Board met on 8 September 2011 where it was agreed that Directors would bring proposals for collaboration for consideration at the December Board meeting. Discussions had also taken place at Chief Officer and Authority Chairperson level with SYFRS regarding proposals for collaboration and the feedback was that SYFRS would prefer to work on the premise that they manage HFRS rather than collaborate on an

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equitable basis. In addition, SYFRS had the control capacity to mobilise HFRS operational resources and would like to provide that service in its entirety. That information was fed back to HFA Members during a Member Day in July 2011and those who were present did not wish to collaborate on terms which would make HFRS something of a junior partner, and were united in their view that HFRS is a viable and effective organisation and should maintain its ability to function as an independent FRS in order to meet the expectations of local people.

As a consequence of the meetings held in July the way forward for HFRS was clear. HFRS would not merge with another Service nor would it form a shared management team. Fire Futures had confirmed that the Government was adopting a less prescriptive approach to the Fire and Rescue Service which meant that the Humberside Fire Authority would need to form its own view on the future direction of the Service. CMT believe that that should be articulated as a ten year vision, development of which was covered in Agenda item 13 for this meeting. Providing value for money would be a basic principle within that vision and as such the service must continue to seek opportunities to collaborate with other organisations. With that in mind HFRS was recently approached by Lincolnshire FRS with a request to have preliminary discussions around the possibility of joint mobilising. As Lincolnshire FRS used the same mobilising system as HFRS joint working could be achieved relatively easily. The Chief Fire Officer & Chief Executive had therefore sanctioned those discussions and would report back to Members on progress.

Resolved – That Members:

(i) Acknowledge that HFRS will not merge with another fire and rescue service.

(ii) Agree that HFRS will not share a Chief Fire Officer/Chief Executive or participate in a shared management team.

(iii) Approve the continuation of the preferred partnership approach with NYFRS which will explore collaborative working where that benefits Humberside Fire Authority and the community it serves.

(iv) Note that following a recent approach by Lincolnshire FRS preliminary discussions around the possibility of joint mobilising will take place and a report will be submitted on progress.

3644 Review of Non-Front Line Service Delivery - The Deputy Chief Officer/Director of Operations submitted a report reminding Members that on 24 January 2011 the Authority had approved the Strategic Plan 2011-14 containing key objectives aimed at effectively delivering the Service to 2014. In that report it was noted that there was a perception from many consultees that it appeared that all the savings appeared to be generated from front – line economies. Whilst the term ‘front-line’ and what was and was not included in that category could be a subject of debate it was noted that for the purposes of the report now submitted it was used merely to describe posts involved in service delivery activity that did not include the riding of fire appliances. A further report on the Agenda for this meeting covered posts involved in corporate support activity (Minute 3645 below refers). The report updated Members on progress against the Strategic Plan 2011-14 in preparation for a more detailed report to the Authority in December 2011. The review work carried out had been framed within the following objectives:

Strategic Objective 4 – Making the best use of resources we have to deliver more efficient services

Strategic Objective 5 – Establishing new ways of working to deliver more effective services

In carrying out the review Members were reminded of their approval to use a ‘Systems Thinking’ approach to determining the best outcomes in terms of managerial layers and

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spans of control as well as functional processes. CMT had broadly separated that approach to cover three areas of Service, namely:

Collaboration

Non-front line service delivery

Corporate support.

The report outlined proposals for the re-alignment of non-front line service delivery which had resulted from taking the systems thinking approach i.e. Purpose-Outcomes-Priorities to the non-front line service delivery activities and the result of the trial management structure within Community Protection Units (CPUs) undertaken between Oct 2010 – April 2011 set against an agreed terms of reference and critical success factors. The need to review the Community Safety Strategy following the outcomes of the Fire Death and Injury Panel (FDIP) findings, reported to the Fire Authority at its last meeting, had also been incorporated into the proposals. Work to review collaboration opportunities and corporate support services was reported on separately on this Agenda for this meeting (Minutes 3643 and 3645 refer) and Members could be assured that the impact of each review on the other had been fully accounted for. As part of the Government’s Comprehensive Spending Review there was a requirement on the Service to introduce significant spending cuts in order to maintain a balanced budget. With that in mind the approved Strategic Plan for 2011-14 included, so called ‘de-invest’, projects designed to review a number of areas of collaboration, non-front line service delivery and corporate support. Those reviews were intended to compliment and contribute to proposals already approved by the Authority in its IRMP 2011-12. The Authority agreed at the time to take a ‘whole system approach’ to redesigning the non-front line/support services with the aims of eliminating inefficiency and waste in that arena and that lent itself to applying ‘systems thinking’ methods to the project. In keeping with the systems thinking approach a trial management structure within CPUs was initiated in October 2010 with a specific terms of reference and defined critical success factors. The trial sought to establish the tenability of a single Group Manager within each CPU, effectively combining the previous roles of Service Delivery Manager and Community Risk Manager. The outcome of the trial demonstrated that that model was feasible; however a number of further recommendations were made to facilitate this approach in the long term. Those included improved ways of working, realignment of existing resources to further increase efficiency savings and some additional areas of support requiring some limited re-investment of net overall savings (Proposals 1- 8 below, as detailed in the report). The proposals, if fully implemented, would net savings on an on-going basis while maintaining and, in some instances, delivering an improved level of service to our communities.

Proposal 1 – Merge the Service Delivery Manager (SDM)/Community Risk Manager (CRM) Group Manager roles in each CPU

Proposal 2 – Review the roles of Technical Training Officers (WMs)/Personal Development Advisors (WMs) and Risk Reduction Officers (CMs)

Proposal 3 – Human Resource (HR) Support within CPUs

Proposal 4 – Merge the Education Liaison Officer (ELO) and Community Safety Advocate (CSA) roles and reduce the overall establishment.

Proposal 5 – Realign Central Support Provision

Proposal 6 – Establishment of Road Safety Posts.

Proposal 7 – Implement Changes to the Role of a Number of Control Based Staff

Proposal 8 – Reduce the Operational Staffing in the Research and Policy Section A Member referred to paragraph 10 of the report and the public sector research poll

and asked whether any background information was available in respect to the poll. The

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Deputy Chief Officer/Director of Operations stated that the information was taken from the University of Hull and undertook to circulate a copy of the poll data to all Members for information.

Resolved – That Members note the progress outlined in the report in readiness for a fully costed set of proposals to be brought to the December 2011 meeting of the Fire Authority. 3645 Workstream – Transformation/Deinvest Corporate Support - The Secretary/ Director of People and Director of Finance/Section 151 Officer submitted a report indicating that some of the key workstreams set out in the recently approved Strategic Plan 2011-14 included mergers, shared chief/management teams, management layers and deinvest in non frontline services. The report was to be read in conjunction with the collaboration update and deinvest/transformation in community safety. The report reminded Members of some of the non-operational efficiencies delivered to date and also identified some preliminary additional efficiencies achieved within Corporate Support for approval. The report also highlighted that a report will be brought back to the December 2011 Fire Authority outlining broad timelines and workstreams for a further more considered review of Corporate Support functions, entailing an alignment of functions to strategic priorities and accordingly a restructuring. Hence the lead-in time was significant and there would be a need to develop early next year a compulsory and voluntary redundancy scheme. One of the Strategic Plan 2011-14 workstreams agreed on 4 March 2011 was to examine possibilities for Deinvestment in Corporate Support Services, as well as other areas of non-frontline operational delivery. The report represented the first stage in that process. Corporate Support and Management represented circa 12% of overall Authority expenditure and to date non-operational efficiencies totalling £550k had been generated as outlined in the report. Members were reminded that Corporate Support had largely had an external recruitment freeze for the last two years. A prudent approach had been adopted in Corporate Support regarding managing vacancies. Certain posts had not been filled and some appointed temporarily. That had put a further strain on certain areas of Corporate Support, but it had been necessary in terms of future flexibility and anticipating budget reduction. This approach had relied very heavily on staff goodwill to ensure that key roles are performed. This action had meant that underspends on Corporate Support pay had been circa approaching £300k per annum. The Director of Finance/Section 151 Officer and the Secretary/Director of People had reviewed the potential to permanently remove some of the current vacancies in the establishment and it was felt that the vacant posts and the associated funding, as set out in Appendix 1 to the report could be removed, albeit that the capacity and added benefits that those posts would have added will be lost with, of course, an impact upon other postholders. The efficiencies identified, whilst opportunistic in nature were immediately deliverable. A further report will be submitted to the Fire Authority at its December 2011 meeting.The shape of that report will depend heavily upon whether collaboration materialises as reported elsewhere on Agenda for this meeting. If there is not to be collaboration, for example a shared management team/functions or perhaps a combined Corporate Support, then time and energy needs to be diverted to reviewing Corporate Support services outlined earlier. In so doing, some clear parameters would be needed, not least of which will be the level of savings to be targeted (ignoring for now impact and priorities). The level of service required will be dictated by priorities for the Service, along with budget constraints. Corporate Support Services will be aligned accordingly, and in line with process re-engineering. Undoubtedly that will mean adjusting expectation and demands, but focusing upon an effective and efficient Corporate Support Service for the resources deployed. Further opportunities and flexibilities might arise if the Authority elected to run a Voluntary Redundancy scheme in 2012/13. The release of staff that volunteer to be considered might allow further efficiency opportunities to be pursued. A Member referred to the paragraph 22 of the report and the statement that ‘Staff have been made aware that the Authority will not be undertaking a Voluntary Redundancy scheme in 2011 and this remains the position’ and queried whether Staff Representatives

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had been involved. The Secretary/Director of People stated that the posts identified in Appendix 1 to the report were all vacant posts and the reports were also before the JCC. A Member sought clarification that the Corporate Support and Management represented circa 12% of overall Authority expenditure represented £6m against which savings of circa £500k identified in the report were being met from non frontline services. The Director of Finance/Section 151 Officer confirmed that the savings were circa £640k taking account of the vacant posts to be removed from the approved establishment set out in Appendix 1 to the report. Resolved – That Members note the report and endorse the actions taken to date. 3646 IRMP 2011/12 - Small Fires Unit (SFU)- The Chief Fire Officer & Chief Executive submitted a report reminding Members of their approval on 4 March 2011 of Integrated Risk Management Plan (IRMP) Proposal 6: Introduce a Small Fires Unit (SFU). To that end the Operational Assurance Board had been working through the specification and options to implement this project within similar timeframes to the remainder of the IRMP Projects. It had been decided to procure a new purpose built SFU rather than retro fit an existing chassis as was felt that that would be more technically robust and avoid the need to replace any existing Service vehicle that would be used for the adaptation. The original £20k earmarked for the SFU was identified as part of the 2012/13 Capital Programme. The detailed work to bring the SFU on line had been completed ahead of schedule and therefore the decision to place the order in the current year had been taken, giving the Authority the best possible chance of having the vehicle operational for the traditionally busy late October to mid November period. The £40k required to procure the vehicle (£20k body and £20k chassis) could be accommodated from the Authority’s 2011/12 revenue contingency budget. The £20k identified in the 2012/13 Capital Programme for the SFU would subsequently be removed. A Member asked whether there was a model SFU i.e. was this type of vehicle in use in any other Services. The Chief Fire Officer and Chief Executive stated that West Yorkshire and Devon Fires Services had such a vehicle and also South Yorkshire Fire Service had trialled a SFU. The Deputy Chief Officer/Director of Operations reported that this Service had trialled a vehicle similar to the one that was to be purchased from Pickup Systems in West Yorkshire. A Member queried the statement in the report to cost neutral crewing options. The Chief Fire Officer & Chief Executive stated that there were vacancies on the North Bank which would be used to crew the SFU which would be based on the North Bank. A Member asked whether the recruitment freeze would apply to Retained Duty System firefighters and queried that firefighters would exit the Authority through retirement. The Chief Fire Officer & Chief Executive Officer stated that the recruitment freeze would not apply to Retained firefighters. The Chairperson suggested that the Authority had adopted a very positive approach with firefighters leaving the Service through their normal retirement, unlike the approach adopted by some other Fire Authorities. Resolved – That Members ratify the decision taken by the Chief Fire Officer & Chief Executive to order the Small Fires Unit. 3647 ORGANISATIONAL DEVELOPMENT 10 YEAR VISION - The Chief Fire Officer & Chief Executive and Secretary/Director of People submitted a report, further to Minute 3580, reminding Members that Humberside Fire and Rescue Service (HFRS) had for some time worked to a three year planning cycle dictated by external factors. That had held back cultural and structural change of the organisation which required longer term planning. The Corporate Management Team (CMT) had therefore set out to develop a ten year vision which would facilitate the planning and implementation of sustainable change. The report outlined how a 10 year vision would facilitate that change and how the vision would be developed. This approach fitted into the fresh approach being adopted for Organisational Development as articulated in the report presented to the Policy and Executive Committee on 9 September 2011 (Minute 3604 refers). Until Fire Futures reported in April 2011 it appeared possible that the Government might adopt a prescriptive approach to the provision

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of Fire and Rescue Services and that would have limited the scope for HFRS to set its own direction. Equally, discussions with neighbouring Fire and Rescue Services (FRSs) about the possibility of merger or shared management teams would also have influenced the future direction. Now that those matters were being resolved the time was right to develop a longer term vision for the Service. It was however acknowledged that the vision should be sufficiently clear to enable the Authority to monitor the progress against it whilst being flexible enough to embrace new developments. CMT had spent some time scanning the Fire and Rescue environment and had developed a raw version of a ten year vision which was to be used to stimulate debate throughout the organisation. The vision would develop over time as the Service engaged with Members and staff and then consulted with wider stakeholder groups. The raw version of the vision was attached at Appendix 1 to the report. The Vision would be developed to the point where it was fit for purpose reflecting the aspirations and priorities of Members, officers and staff. In that form it would assist the Service to set its direction, establish its priorities and align its limited resources to deliver a tangible outcome. The Chief Fire Officer & Chief Executive stated that the vision would go forward to the Member Day to be held in December 2011 Resolved – That the report be noted. 3648 BUSINESS CONTINUITY – OPERATIONAL RESILIENCE FOR STAFF SHORTAGES - The Deputy Chief Officer/Director of Operations submitted a report indicating that the risk relating to the ability of the Authority to maintain its statutory duties during a period of widespread staff shortage had been recognised for some time and featured on the Service’s Risk Register. The most challenging staff shortage would be one arising from industrial action by operational staff. The likelihood of industrial action during the late Autumn 2011 had increased recently following the Trade Union Congress, with the announcement of moves for industrial action to take place on the 30 November 2011. The report provided an update on the work which had been undertaken so far to mitigate that risk, and the next steps which were planned to be taken. Previous Business Continuity Plans for staff shortages relied on the existing Resilience Cadre; operational staff who were not watch based but maintained their operational competence, to provide cover when needed. However, whilst that approach might be suitable for shortages caused by reasons such as pandemic flu, the fact that approximately 75% of the 90 staff on the original Resilience Cadre were Fire Brigades’ Union (FBU) members meant that they might be of limited availability during a period of industrial action. Members were reminded that plans led by a previous Deputy Chief Fire Officer to supplement the arrangements by introducing Community Volunteers were not successful and that project was terminated. With that in mind on 27 September 2010 the Senior Management Team (SMT) approved further research into operational resilience and a report was submitted to the Authority on 19 April 2011. Members who attended the development day in Grimsby on 22 November 2010 were given a verbal update on early plans to enhance the existing arrangements. The plans were based around the concept of the Service developing a menu of options to be used as necessary to provide maximum flexibility and minimise the reliance on one particular option. Since SMT approval there had been a significant amount of work in this area, some of which had already resulted in improvements to the current arrangements and some of which was still ongoing. The report outlined the following options which had been considered and the status of that option:

Enhanced arrangements for the existing Resilience Cadre

Preplans for maintaining a cadre of appliance drivers

Arrangements with industrial sites – A Member asked whether any tanker runs beyond those listed in the report would be considered. The Deputy Chief Officer/ Director of Operations stated that the Fire service would have to cover any tanker runs not listed in the report.

Arrangements with Humberside Airport – A Member asked whether the firefighters at Humberside Airport had fitness standards and what training they received. The Deputy Chief Officer/Director of Operations stated that he would

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find out about fitness standards but indicated that the staff were allowed to respond to incidents up to 5 miles from the airport. A Member stated that the staff would not be covered by the Working Time Directive. The Deputy Chief Officer/ Director of Operations stated that the Authority would apply the Directive but that personnel had the right to opt out. The Chief Fire Officer & Chief Executive stated that the Airport option related to 1 fire engine only and that in responding to a one day strike the number of people required was relatively small and reminded Members that the Authority had a statutory duty to provide a Fire service.

Arrangements with the Defence School of Transport (DST), Leconfield

The use of HFRS non operational staff

The deployment of Retained Duty System (RDS) staff

Arrangements with Continental FRS

Arrangements with a private provider

BTEC

Community Support

Control support

Direct Employment - Employing staff from outside the organisation to fulfil specific tasks, i.e. LGV drivers to drive appliances.

Retired Fire Fighters/Fire Officers - As part of direct employment, an invite specifically targeting these former employees to return to service for a short fixed term to cover staff shortages was being considered.

Resilience Contracts It was acknowledged that none of the options highlighted could provide a solution to a serious staffing shortage in their own right. However, a combination of those options might mean that the Authority would be able to provide as close to the target of 14 pumps available across the Service area as possible. 14 pumps was the level at which the first pump attendance standard could be met assuming all pumps were available and on key stations. Clearly all of the options had their own risks and significant work was still needed, not least around the legal and Human Resource implications. However, as Fire Authorities had been informed that the military will not be available to provide cover it is vital that some plans are in place to cover the eventuality of industrial action particularly. A Member referred to the legal implications associated with the Business Continuity options and suggested that the Authority would have to care for anyone providing assistance. The Secretary/Director of People confirmed that the Director of Finance/ Section 151 Officer would ensure that all persons were insured as they would if a firefighter. The Director of Finance/ Section 151 Officer confirmed that relevant background information had already been forwarded to the Authority’s Insurance Brokers. The Secretary/Director of People agreed that the duty of care applies; acknowledged that the level of risk was potentially greater and reminded Members that the Fire Authority had a duty to have a Business Continuity Plan in place. The Chairperson stated that the Plan should be on the Agenda for the Members’ Day on 14 October 2011 and that Members should receive a weekly update by email. A Member asked whether there would be any additional insurance costs. The Secretary/Director of People stated that there might not be any additional costs but that he would let Members know if there were any.

Resolved – (a)That Members take assurance from the work being undertaken, and

(b) that the Business Continuity Plan be included on the Agenda for the Members’ Day on 14 October 2011 and that all Members be sent a weekly update by email regarding the proposed firefighters industrial action on 30 November 2011.

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3649 OPERATIONS (INCIDENTS OF SPECIAL INTEREST) - The Deputy Chief Officer/ Director of Operations submitted a report outlining details of incidents of special interest for the last quarter as set out in Appendix 1 to the report. The performance of the Directorate in respect of response standards had been reported to the Audit, Performance and Scrutiny Committee on 20 September 2011. A Member expressed his thanks for the interventions carried out by the Fire Service during the recent flooding in Goole.

Resolved - That Members note the contents of the report as a quarterly update of incidents of special interest and that future reports should only include details relating to water rescue incidents in exceptional cases. 3650 ‘CHANGING BEHAVIOUR TO SAVE LIVES’ – SOCIAL MARKETING PROGRAMME – The Secretary/Director of People and Assistant Chief Officer/Director of Safety submitted a report outlining the first project in the ‘Changing Behaviour to Save Lives’ programme aimed to reduce the number of accidental domestic fire deaths by applying a social marketing approach to create positive and sustainable behaviour changes. Social marketing was an insight-led process to influence change in behaviour. There was growing evidence and experience which showed that when social marketing was applied effectively, and in the appropriate context, it could be a powerful tool for achieving tangible, sustainable and measurable impact on behaviours. Across all sectors, the limitations of old style ‘mission and message’ based communications were now being widely acknowledged. Although the pull to ‘communicate at people’ could still be strong, social marketing had become a key driver in helping people to understand what influences behaviour and therefore what can be put in place to create positive and sustainable change. This social marketing approach was something Humberside Fire and Rescue Service should be taking and the Corporate Communication team was working closely with Community Safety and the Organisational Intelligence Unit to introduce this approach to help protect communities within the Humberside area. Following a significant increase in fire deaths over the last two years, a social marketing programme was currently underway that would target residents who fall into the profile group of those who have been dying in fires. Although not all the fire deaths in Humberside during the last two years had been the same, the majority of them had had similarities which had identified a profile of people who were ‘high risk’ and were therefore the focus of the programme. That group of residents were:

Over 55 Smokers /Heavy Smokers Living alone Have an impairment – for example, physical disability or long term illness

The Service currently identified ‘high risk’ postcode areas using Life-Risk Mapping. That data was now over 10 years old and there had been fatal fires in areas which were not highlighted as ‘high risk’. New data had recently been received from the Mosaic Grand Index, which divided the UK population into socioeconomic and lifestyle groups. When that data had been cross-referenced with the Life-Risk Mapping data in a fatal fire area, a significant number of properties had been highlighted as ‘high risk’, which was not previously identified. Therefore, it was likely that those houses would have been missed by teams delivering Home Safety Visits. The Mosaic data provided enough detail to enable profile groups to be segmented down to household level, rather than just to postcode level which should more accurately identify the addresses of ‘high risk’ residents. This new data was current, with the next update due in August 2012. The data would be refreshed to include the 2011 Census; however the estimate for when all the data would be collated and any changes seen was 2013. A trial had taken place in Market Weighton and Immingham to test the accuracy of the new data. Hexagon teams had visited ‘high risk’ addresses identified by the Mosaic data to confirm that the occupants met the profile. Maps of both trial areas and showing the ‘high risk’ post code areas identified by the current Life Risk Mapping tool and the specific households identified as ‘high risk’ by the new Mosaic data were attached at

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Appendix 1 to the report. The data is currently being analysed to check its accuracy. If the data proved to be accurate, it would be used to identify households which need a Home Safety Visit, and will be circulated to Community Safety staff and stations Service-wide. Residents who met the ‘high risk’ profile during the trial had been asked to take part in the programme. Insight work would take place to develop a better understanding of the lives of the profile group in order to establish whether any meaningful interventions could be developed to be delivered by Humberside FRS and what that might look like. In comparison to other methods which have been used to communicate and engage with these groups, there will be a much stronger focus on how to develop effective behavioural interventions, to address the wide range of behavioural challenges faced by the Service trying to keep people safe from fire. The programme would focus on what really influences behaviour and how the Service can work to improve peoples’ lives by helping them achieve and sustain positive behaviours. The first part of the project, to gain an insight into the ‘high risk’ profile group and develop a toolkit, would be delivered by the end of March 2012. The idea behind the toolkit was that it would show staff what they can do to change the behaviour of these residents to assist in preventing fires and ultimately, to stop people dying in fires. That might include a more tailored approach to communicating with the profile group and would depend on the insight work and establishing how those people were influenced. Community Safety staff and operational staff would be trained accordingly to play a more influential role in changing behaviour. If the Mosaic data did not prove to be accurate, it would still need to be used in some capacity but it might be a case of refining the methodology following the outcomes of the trial. The programme would involve working with other agencies and could potentially result in partners being identified as influencers in achieving the desired behaviour change. An engagement and communication strategy had been prepared and all relevant agencies would be involved from an early stage. There was a risk that agencies who were identified during the programme as being key influences in changing behaviour might not want to be part of the programme or willing to consider the outcomes that could impact upon them. If applied effectively, and in the appropriate context, social marketing could be a powerful tool for achieving tangible and measurable impact on behaviours. It would also be an opportunity to establish this approach within the Service, which was not currently widely used in the fire sector, and potentially lead the way in how the Service improves the safety of vulnerable people. Improving the level of understanding and application of social marketing was therefore critical if real and measurable impacts on peoples’ behaviour(s) were to be achieved. A report detailing the outcomes of the Mosaic data trial and an update on the progress of the programme would be submitted to the Fire Authority in December 2011. The Secretary/Director of People stated that following questions regarding Mosaic at the Policy and Executive Committee on 9 September 2011 it was intended to give a much fuller presentation to Members at a Member Day in October or December 2011.

Resolved – That the report be noted and that Members support the programme. 3651 CORPORATE RISK/OPPORTUNITY MANAGEMENT - The Secretary/Director of People submitted a report reminding Members that the Authority’s performance and risk management processes had now been combined in to a single framework. The existing format for risk registers had been refreshed and a new automated approach using the Service’s information portal would be used, which would vastly improve current approaches to risk creation, risk review, risk referral, risk removal and action planning. Two Corporate level risks/opportunities remained on the Strategic Risk Register. The remainder of risks previously recorded on the former Corporate Risk Register were now managed through the various Boards and featured on their relevant Risk Registers. A copy of the Strategic Risk Register was attached at Appendix 1 to the report. The Register was also available on the Authority’s website and should Members wish to receive hard copies of some or all of the associated Action Plans, then that can be arranged. Members were asked to review the Strategic Risk Register and to provide an assurance that Members consider that the Register properly reflects the key issues facing the Authority. In addition, through the

16


Committee structure (particularly the Audit, Performance and Scrutiny Committee), Members should be satisfied that the Action Plans were effective and appropriate steps were being taken to further embed and resource corporate risk management. In addition, further assurance could be taken from the role of the Performance & Risk Board and the reporting of Corporate and Board level risks. Members were also asked to use the Strategic Risk Register as a tool to drive (in part) the agenda and discussions at the Fire Authority meetings.

Resolved – That the report be noted and that Members take assurance from the progress in the effective use of risk management.

3652 EXCLUSION OF PRESS AND PUBLIC – Resolved – That the press and public be excluded from the meeting during consideration of the following item (Minute 3654) on the grounds that it is likely to involve the disclosure of exempt information as defined in paragraphs 1 and 2 of Part 1 of Schedule 12A of the Local Government Act 1972.

(In making its decision the Authority confirmed that having regard to all the circumstances it was satisfied that the public interest in maintaining the exemption outweighed the public interest in disclosing the information).

(All Officers except the Secretary/Director of People, Head of Human Resources and the Committee Manager left the meeting for the following item.

3653 ADJOURNEMENT – Resolved – That the meeting shall adjourn for a 5 minute comfort break. 3654 APPOINTMENT OF CHIEF FIRE OFFICER AND CHIEF EXECUTIVE - The Secretary/Director of People submitted a report, reminding Members that the Authority had decided on 17 January 2011 that DCO Hannigan be appointed as temporary Chief Fire Officer & Chief Executive from 1 May 2011 for a period of up to 12 months, to be reviewed after 6 months. Whilst it was slightly early to review that temporary appointment the next Fire Authority would be well beyond the review due at the end of October 2011. It was, however, opportune, as the review fitted in with the broader purpose of the report which was for Members to consider the profile of the post and the process to appoint a Chief Fire Officer & Chief Executive. The report took into account the informal discussions of Members at the Member Day on 12 September 2011. It was however, for the full Fire Authority to determine a way forward. Given the late reporting of Fire Futures in April 2011 and the approval of a Strategic Plan in March 2011, the Authority had had strong grounds to wait before seeking a permanent appointment. Indeed with the possibility of merger, a shared Chief Fire Officer & Chief Executive or a shared management team being explored in the region (as reported elsewhere on the Agenda for this meeting), it would have been difficult for the Authority to proceed. As such, in effect the DCO had acted-up in the position of Chief Fire Officer & Chief Executive during this period, which was similar to the approach adopted by some other Services, including South Yorkshire, in the region. The Authority was now at the point at which to reach a decision around the appointment of a Chief Fire Officer & Chief Executive. The report also considered the current temporary arrangements at Chief Fire Officer level and in turn Deputy Chief Officer and Assistant Chief Officer. Those arrangements were agreed to be up to 12 months (from 1 May 2011), with a review in 6 months. Members were asked to review the current arrangements, but it was suggested that the temporary arrangements for Chief Fire Officer should remain in place at least until a permanent appointment is made (and, if necessary, review further at that point).

Resolved – (a) That Members approve a profile for the post and process to recruit a Chief Fire Officer & Chief Executive as set out below:

(i) Profile of the post - A Chief Fire Officer & Chief Executive to be appointed with operational competency as an essential.

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(ii) Outline Timetable – As follows:

Advert mid October 2011 Close mid November 2011 Shortlisting late November 2011 Selection mid December 2011 Target Fire Authority 13 December 2011 to ratify the appointment

(iii) Involvement of all Members - All Members to be involved in the selection process to be accommodated, by way of example, that as part of the process (and as part of the evaluation), shortlisted candidates present to all Members.

(iv) Appointments Committee – (a) That notwithstanding that under the Constitution the appointment of a Chief Fire Officer & Chief Executive falls under the Policy and Executive Committee, an Appointments Committee be established comprising up to 7 Members (Chairperson and Vice-Chairperson of the Fire Authority, Chairperson of the Audit, Performance and Scrutiny Committee and 4 other Members nominated by the Group Secretaries, (b) that all Members be given an opportunity to express an interest in being a Member of the Appointments Committee but that political proportionality would apply unless all Members agreed otherwise, and (c) that the role of the Appointments Committee shall be:

1. To draw up a short list of candidates to be interviewed.

2. To conduct interviews and make a recommendation as to an appointment to the full Fire Authority.

(v) External Consultants – Not to be used

(vi) Assessment Centre - The recruitment process shall not comprise the use of an Assessment Centre approach.

(vii) Production of Candidate Packs – to be produced, in consultation with the Chairperson and Vice Chairperson of the Authority.

(viii) Contractual Basis – Any appointment shall be on a normal contractual basis in line with the current remuneration of the post.

(b) that the current temporary arrangements at Chief Fire Officer level, and in turn Deputy Chief Officer and Assistant Chief Officer, shall remain in place at least until a permanent appointment of Chief Fire Officer & Chief Executive is made and that, if necessary, the arrangements be reviewed further at that point.

Meeting closed at 1.16pm

Assessment Sub-Committee 3 October 2011 Agenda Item No. 7(a)


GOVERNANCE AND STANDARDS COMMITTEE

ASSESSMENT SUB-COMMITTEE

3 OCTOBER 2011

PRESENT: Mr J Jepson (Chairperson), Councillor Glew and Mr R Dixon. Mr M Barnes, Monitoring Officer, West Yorkshire Fire & Rescue Authority and Committee Manager were also present. The meeting was held at Humberside Fire and Rescue Service Headquarters, Kingston upon Hull. Meeting commenced at 2.00 p.m. 3655 ELECTION OF CHAIRPERSON - Resolved – That Mr J Jepson be elected Chairperson for this meeting. 3656 COMPLAINT REF 1/2011/CONDUCT/ASC/LOUDON – UPDATE – The Sub-Committee considered a complaint that a Member of the Fire Authority had breached the Code of Conduct by disclosing information from the complainant to a third party. Mr M Barnes, Monitoring Officer to the West Yorkshire Fire and Rescue Authority advised Members on relevant guidance from Standards for England with regard to the processing of the complaint. Resolved – (i) The findings of the Sub-Committee were that the complaint if proven would not constitute a breach of the Code of Conduct because none of the information that passed from the Subject Member to the then Deputy Chief Fire Officer (R Hannigan) should have been treated as confidential and did not constitute a disclosure to a third party, and

(ii) the Sub-Committee further determined that even if there had been a failure to comply with the Code it was not sufficiently serious to warrant any further action.

(The meeting closed at 2.30pm)

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Assessment Sub-Committee 3 October 2011

20

Governance & Standards Committee 25 October 2011

Agenda Item No. 7(b)



25 OCTOBER 2011

PRESENT: Mrs J Clarke (Chairperson), Councillors Glew, Jefferson J.P. and Skow and Mr R Dixon, Mr D Hughes and Mr J Jepson.

Councillor Briggs attended as an observer. Chief Fire Officer and Chief Executive, Deputy Chief Officer/Director of Operations, Secretary/Director of People, Director of Finance/Section 151 Officer and Committee Manager were also present. The meeting was held at Humberside Fire and Rescue Service Headquarters, Kingston upon Hull. Meeting commenced at 10.30 a.m.

An apology for absence was submitted from Councillor Williams (2.Work commitments).

(Prior to the meeting the Independent Members of the Committee met in private)

3657 DECLARATIONS OF INTEREST – Councillor Briggs stated that whilst he was attending this meeting only as an observer he would nevertheless withdraw from the meeting for the consideration of Agenda Item 5 (Minutes of the Assessment Sub-Committee held on 3 October 2011) if there was to be any discussion on that item 3658 MINUTES – Resolved – That the minutes of the Committee held on 6 September 2011 be approved as a correct record and signed by the Chairperson. MATTERS ARISING FROM THE MINUTES, OTHER THAN ON THE AGENDA

3659 REVIEW OF MEMBER TRAINING GENERALLY AND SPECIFICALLY AROUND STANDARDS – An Independent Member referred to Minute 3591 and requested an update. The Secretary/ Director of People confirmed that he had contacted the unitary authorities and that no training events were being arranged at the present time.

Resolved – That the report be noted.

3660 MINUTES OF ASSESSMENT SUB-COMMITTEE – Resolved – That the minutes of the Assessment Sub-Committee held on 3 October 2011 be received. 3661 THIRD REVIEW OF CORPORATE GOVERNANCE - The Secretary/Director of People submitted a report, further to Minute 3590, encapsulating recent discussions at the Member Days on 12 September and 14 October 2011. The report reminded Members of the discussion at the Member Day on 19 July 2011 when Members had indicated their support for the third review and the way in which the review should proceed. At the Member Day on 12 September 2011 there appeared to be a consensus around the following:

Not to move towards a Board structure;

Not to form a Cabinet type structure;

To adjust the current governance structure, i.e. to increase its effectiveness, particularly around the committees of the Authority.

Members were also updated regarding the following:

Localism Bill;

Opening up Public Services White Paper;

Local Government Resource Review.

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The potential changing landscape in local government had also been reported through the committees of the Authority. Overall, there was discussion around the Authority being the primary decision making body, avoiding report duplication and ensuring a strategic agenda. The Secretary/Director of People agreed to encapsulate and develop the views further for the next Member Day. At the Member Day on 14 October 2011, Members discussed further the overall governance structure of the Authority. Following on from the September Member Day, the Secretary/ Director of People proposed that consideration be given to an enhanced governance structure. Overall a consensus emerged as follows:

Increase number of Fire Authority meetings;

The Fire Authority will be sole decision making body;

The agenda for Fire Authority will be themed during the year, but will be strategic and key decision making;

The importance of Member Days to increase, balancing CPU/local knowledge with updates/discussions upon issues locally/nationally and strategic discussions;

Policy and Executive Committee changes significantly or is abolished. Some thought to whether the Committee becomes a policy/research Member group and tasked by the Authority on an ad hoc basis;

Depending upon the outcomes of the consultation regarding the future of audit (following abolition of the Audit Committee) then a combined scrutiny, audit and governance committee be considered. The timing of such a committee and its composition was briefly discussed;

Brief discussion was also had around the Appeals Sub-Committee; and

Future agenda setting by Members. The Secretary/Director of People was asked to develop a paper on the basis of the above in readiness for the next Member Day describing how an enhanced governance model could operate in practice. In addition, in readiness for the next Member Day, it was agreed that the opinions of Members should be sought on a number of issues as set out in the report by way of a questionnaire. Members agreed that the further areas for consideration would form part of a more focused questionnaire, which would feed into a final discussion. It was suggested that this Committee might wish to discuss the areas outlined in the report and also give some thought to its future role, the role of Independent Members generally and emerging options around a Member Code of Conduct. The Secretary/Director of People stated that as the date of the next scheduled Member Day (9 December 2011) was to be used in connection with the appointment of a Chief Fire Officer/Chief Executive a further Member Day would be allocated in December 2011/January 2012 for the review of corporate governance. A discussion ensued. An elected Member questioned whether there was a need for a committee structure other than perhaps a Review Committee with Members selected from a Review Panel on a rotational basis. The Chief Fire Officer and Chief Executive reminded Members that the Authority had had a difficult experience with the 2007 Integrated Risk Management Plan and that whilst engagement with Members had progressed since then the outlook for the Authority would continue to be difficult. The Chief Fire Officer and Chief Executive stated that engagement with Members had helped drive through some big changes and that Member scrutiny had improved in the last six months, particularly through the Audit, Performance and Scrutiny Committee, and he hoped that that would continue to develop. An independent Member concurred that the Audit, Performance and Scrutiny Committee did scrutinise more but commented that the views of Members with regard to the review of corporate governance seemed to change from meeting to meeting, dependent on which Members were present at discussions. The Secretary/Director of People empathised with that viewpoint; indicated that his personal preference was for a Board like structure, and stated that he felt that the Authority needed to draw a line and agree a robust structure which

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should then remain for some time. Members discussed the proposed arrangements for progressing the review and queried whether the matter should be referred direct to the Fire Authority in December 2011 for discussion as otherwise there would only be 2 further meetings before the Annual General Meeting in which to agree a structure and changes to the Constitution. The Secretary/Director of People commented that the issues outlined in the report now submitted would influence the Constitution and would need to be considered alongside the governance structure. An independent Member referred to the proposed questionnaire and stressed the importance of the questionnaire being completed by all elected Members. The Secretary/Director of People reminded Members that a questionnaire had been used previously with reasonable return rates but that it was up to individual Members to decide whether they wished to complete the form. The Chairperson referred to the meeting of the Authority on 13 December 2011 and queried whether time might be allocated at that meeting for Members to complete a questionnaire. The Secretary/Director of People stated that it would be possible to include it on the Agenda for the next 2 committees that take place but that he had some reservations that if the matter goes to the full Authority without any pre-discussion by Members of the issues outlined in the report the Authority might not take the review forward. At the invitation of the Chairperson Councillor Briggs (Chairperson of the Fire Authority) stated that it was his view that there should be separate discussion at a Member Day prior to a final proposal being submitted to the Fire Authority for approval. The Secretary/Director of People suggested that what was needed was a further Member Day before the second week in January 2012 so that the outcomes could be reported to the Fire Authority in February 2012. The Chief Fire Officer and Chief Executive reminded Members that there would be an appointment of a Chief Fire Officer and Chief Executive in December and that that Officer would need to have an input into the corporate governance arrangements. Resolved – That this Committee acknowledges the need for a further Member Day to be arranged before the second week in January 2012 and would urge all Members to complete the proposed questionnaire. 3662 LOCALISM BILL AND WHITE PAPER (OPENING UP PUBLIC SERVICES) - UPDATE - The Secretary/Director of People submitted a report, further to Minutes 3588 and 3589, reminding Members that at the previous meeting Members had received separate updates upon progress of the Localism Bill and the White Paper (Opening Up Public Services) and providing a further update. In terms of the debates in the House of Lords regarding the proposed abolition of the current Standards regime the Secretary/Director of People stated that since the report had been written he had had the opportunity to check the latest reports in Hansard and it seemed that whilst the House of Lords supported the abolition of Standards for England there was a feeling that there was a need for a National Code of Conduct and the creation of some local Standards Committees, although the form of the Standards Committees would need to be debated, and also that no criminal sanctions were considered necessary. The Secretary/Director of People stated that it was likely that by the time of the next meeting of this Committee the discussions of the Bill might have finished and the situation be somewhat clearer. The report indicated that there were however reservations around the Right to Challenge, but those were yet to materialise into substantive amendments. It was also reported that the Fire Authority at its meeting on 27 September 2011 had agreed that the current Governance and Standards arrangements for Independent Members continue until the end of the current Authority year (April 2012) and in particular the Chairperson of the Committee be extended in office accordingly. Members were reminded that at the September 2011 meeting, the Committee had received a report in respect to the Opening Public Services White Paper published in July 2011 which fitted with the overall jigsaw of the suggested modernisation of the public sector. The Director of Finance/Section 151 Officer reported that in tandem with the White Paper and a further Transparency Code (reported elsewhere on the Agenda for this meeting (Minute 3663 below refers), the Government had announced an invitation to express views

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upon open public services (web-based), together with a number of invitation only events. The ‘consultation’ closed on 30 September 2011, with proposed outcomes to be published during November 2011. In addition, Members should be aware of the Community Budgets Prospectus (bids to be pilots) published 17 October 2011. It was likely that the White Paper (which was essentially a policy paper) would emerge as a Bill after November 2011. An update would be provided to the next meeting of the Committee, along with the other parallels in respect to potential changes to local government which would also clarify the likely impact upon fire and rescue authorities. Resolved – That it be noted that a further progress report will be submitted to the next meeting of this Committee. 3663 CODE OF RECOMMENDED PRACTICE FOR LOCAL AUTHORITIES ON DATA TRANSPARENCY- The Secretary/Director of People submitted a report In line with the broader role of the Committee in respect to governance on the recently published Code of Recommended Practice for Local Authorities on Data Transparency set out in Appendix 1 to the report. The Code was to be read in conjunction with other papers received by the Committee with regard to the ‘modernisation’ of the public sector. The Code also linked with the publication of expenditure above £500 earlier this year. Whilst the Code was voluntary, it was issued under the powers given to the Secretary of State under the Local Government, Planning and Land Act 1980, and Officers were reviewing how to respond to the Code in terms of publishing the data (and keeping that data current). What was unclear was the frequency of publication or whether the Code implied continuous updating (whether material changes or otherwise). Much of the information the Authority already published. Going forward, corporate responsibility for the Code would rest with both the Monitoring Officer and Section 151 Officer. The Code interfaced strongly with existing duties around Freedom of Information and Data Protection, and more broadly the governance arrangements of the Authority. Through the internal governance structure (the boards) mechanisms would be established to ensure compliance with the Code. There were no transitional arrangements, and as such the Code was now live. An independent Member reported that he had accesses the Authority’s website to see what information was currently available and expressed some surprise at the number of Freedom of Information requests on the system but also commented that when he tried to access information from a Library in North East Lincolnshire there were some pop-up blockers denying him access to certain information. The Secretary/Director of People stated that he was not aware of any blocking issues and that the issue would be checked. The Deputy Chief Officer/Director of Operations commented that the difficult in addressing the requirements of the Code was that the Service was in a constant state of flux and the challenge to Officers was to ensure accurate information was published. Resolved – That the report be noted. 3664 MEMBER ATTENDANCE 2011/12 TO DATE - The Secretary/Director of People submitted a report, further to Minute 3592, setting out details of Member attendance at both formal meetings of the Authority and Member Days during 2011/12 for the period to 17 October 2011. The purpose of the report was to enable the Committee to monitor and review Member attendance at meetings of the Authority. Details of individual Member/Independent Member attendance at formal meetings up to 17 October were set out in Appendix 1 to the report. Details of attendance at meetings as an observer and also attendance at Member Development Days in 2011/12 were set out in Appendix 2. The Authority had adopted a system of recording reasons given by Members for non-attendance at meetings and agreed that the system should be monitored by this Committee. A summary of the use of the system up to 17 October was set out in Appendix 3. As previously agreed by the Committee the information would be forwarded to the political group leaders at the Constituent Authorities after consideration by this Committee. Resolved – That the report be received.

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3665 PROCEDURE: RECURRING ALLEGATIONS OF MEMBER MISCONDUCT - The Secretary/Director of People submitted a report reminding Members that the current policy and procedure relating to the handling of complaints of Member Misconduct (contrary to the Member Code) as set out at Appendix 1 to the report was approved by the Committee on 21 October 2008. The procedure reflected those adopted in the region, and particularly stemmed from one of the workshops at the Annual Standards Conference of that year. With the volume of complaints experienced by some Authorities, mechanisms were introduced giving Monitoring Officers a degree of discretion to ensure that only complaints concerning the Code would trigger the convening of an Assessment Sub-Committee. Vexatious and persistent complaints were also included in the discretion to be exercised by a Monitoring Officer. A number of Authorities retain such a mechanism, but the view of Standards for England is that all complaints should go before an Assessment Sub-Committee, although they appear to accept a Monitoring Officer could dismiss a complaint which does not concern the Code. Given the recent allegation of Member Misconduct (Ref. 1/2011/ Conduct/Loudon), the Monitoring Officer had sought clarification from Standards for England regarding their current view on such a procedure. Standards for England were of a view that it was legitimate for a Monitoring Officer to dismiss a ‘complaint’ which does not relate to the Code. However, they consider that vexatious and frivolous complaints must be considered by an Assessment Sub-Committee. The Committee was asked to consider whether it would wish to amend its current procedure. The reality of receiving any vexatious and persistent complaints between now and the abolition of the current standards framework was unlikely. In terms of ‘complaints’ which do not concern the Code, then the Committee might decide that an Assessment Sub-Committee will determine all such decisions (even if that does lead to an appeal where any such ‘complaint’ is dismissed). It should be borne in mind that the safeguard introduced by this Authority did provide some comfort from a broader governance perspective. On a much more general point, it was noticeable that some authorities would have the Monitoring Officer providing guidance at both an Assessment Sub-Committee and Appeals Sub-Committee. The Monitoring Officer had taken a view that while he takes no part in any decision, from a governance perspective it would be seem to demonstrate greater independence and good practice not to do so (albeit the reality should be immaterial if the Monitoring Officer was simply providing guidance in terms of the Regulations and the role of the Sub-Committee). It was suggested that Members might wish to consider this again. Resolved – That the existing procedure as set out in Appendix 1 to the report be retained. 3666 MEMBER DEVELOPMENT AND REGIONAL/SUB-REGIONAL UPDATE – The Secretary/Director of People reported orally, further to Minutes 3591 and 3593, that he would circulate a schedule of regional training opportunities as soon as he received a copy. Resolved – That the report be noted. 3667 STRATEGIC RISK REGISTER - The Secretary/Director of People submitted a report, further to Minute 3594, reminding Members that the Authority’s performance and risk management processes had now been combined in to a single framework. The existing format for risk registers had been refreshed and a new automated approach using the Service’s information portal would be used, which would vastly improve current approaches to risk creation, risk review, risk referral, risk removal and action planning. Two Corporate level risks/opportunities remained on the Strategic Risk Register. The remainder of risks previously recorded on the former Corporate Risk Register were now managed through the various Boards and feature on their relevant Risk Registers. A copy of the Strategic Risk Register was attached at Appendix 1 to the report. The Register was also available on the Authority’s website and should Members wish to receive hard copies of some or all of the associated Action Plans, then that could be arranged. Members were asked to review the Strategic Risk Register and to provide an assurance that Members consider that the Register properly reflects the key issues facing the Authority. In addition, through the Committee structure (particularly the Audit, Performance and Scrutiny Committee), Members

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should be satisfied that the Action Plans were effective and appropriate steps were being taken to further embed and resource corporate risk management. In addition, further assurance could be taken from the role of the Performance & Risk Board and the reporting of Corporate and Board level risks. Members were also asked to use the Strategic Risk Register as a tool to drive (in part) the agenda and discussions at the Fire Authority meetings. The Secretary/Director of People reminded Members that it had been the intention to demonstrate the use of the Risk registers on line at the proposed Member Day on 9 December 2011 and stated that as that date was now being used in connection with the appointment of a Chief Fire Officer and Chief Executive he would arrange a demonstration at a separate Member day to be arranged. Resolved – That the report be noted and that Members take assurance from the progress in the effective use of risk management. 3668 GOVERNANCE ISSUES – Mr Hughes and Mrs Clarke reported following their attendance at a recent Member Day. 3669 INSPECTION OF MEMBER REGISTERS – The Member Registers of Interests and Declarations of Gifts and Hospitality were made available for inspection by any Member of the Committee as part of their monitoring role. 3670 INSPECTION OF OFFICER REGISTERS – The Officer Registers of Interests and Declarations of Gifts and Hospitality were made available for inspection by any Member of the Committee as part of their monitoring role. 3671 GLOSSARY OF FIRE AUTHORITY TERMINOLOGY – An independent Member referred to the excellent work carried out by Mrs G Hardy (Independent Member of the Audit, Performance and Scrutiny Committee) in producing a glossary of terminology to assist Members understand references within reports. Resolved – That Members record their appreciation of the work carried out by Mrs Hardy in producing the glossary. Meeting closed at 11.35 am

Policy and Executive Committee 18 November 2011

Agenda item No. 7(c)


POLICY AND EXECUTIVE COMMITTEE

18 NOVEMBER 2011

PRESENT: Councillors De Freitas (Chairperson), Briggs, Engall, Gardiner, Ibson, Mole and Shipley.

Mrs Clarke (Independent Member of the Governance and Standards Committee) and Mrs Hardy (independent Member of the Audit, Performance & Scrutiny Committee) attended the meeting as observers. Chief Fire Officer & Chief Executive, Assistant Chief Officer/Director of Safety, Secretary/Director of People, Director of Finance/Section 151 Officer and Committee Manager were also present.

The meeting was held at Humberside Fire and Rescue Service Headquarters, Kingston upon Hull. Meeting commenced at 10.00 a.m.

An apology for absence was submitted by Councillor Gemmell OBE (1.Illness).

3672 DECLARATIONS OF INTEREST – There were no declarations.

3673 MINUTES – Resolved – That the minutes of the meeting of the Committee held on 9 September 2011 be approved as a correct record and signed by the Chairperson. MATTERS ARISING 3674 Equality and Diversity Update – Further to Minute 3607 the Chief Fire Officer and Chief Executive reported that the Peer Assessment revisit had taken place on 20 October 2011 and that the Authority had now received an assessment as ‘Achieving’, which was a credit to all those involved. The Chief Fire Officer and Chief Executive stated that the aim now was to strive towards achieving the next level of ‘Excellence’ but acknowledged that that would be at some time in the future. Resolved – That the report be noted. 3675 MANAGEMENT ACCOUNTS TO 30 SEPTEMBER 2011 – The Director of Finance/ Section.151 Officer submitted a report containing the Authority’s Management Accounts and Prudential Indicators for the period ending 30 September 2011. The summary estimated outturn position from the Management Accounts and Prudential Indicators was as follows:

Revenue Budget - £1.607m underspend; Capital Programme - £5.079m total expenditure; Pensions Account - £7.647m deficit

A Member observed that the accounts showed a very satisfactory and stable position except with regard to Supplies and Services which had been commented upon at previous meetings and upon which Members had had explanations as to the position by the Director of Finance/Section 151 Officer. A Member sought clarification regarding the budget virements processed as listed on page 14 of the accounts report. The Director of Finance/ Section 151 Officer stated that the amounts shown were just budget changes. A Member referred to page 12 of the accounts and queried whether the Authority had any exposure to long term debt. The Director of Finance/Section 151 Officer reported that the Authority had recently borrowed £2m because the rates are relatively low at present with a view to meeting capital expenditure this year and stated that the Authority had now borrowed as much as was likely to be needed for the next eighteen months. A Member queried how the Authority

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was likely to manage the level of General Reserves in terms of forecasts for the next budget round. The Director of Finance/Section 151 Officer reminded Members that the Authority had agreed a prudent minimum level of reserves and flagged up that there would be expenditure requirements for improving the Wide Area Network and that part of the budget papers may look to fund that development over the next 5 years in terms of setting that money aside. The Director of Finance/Section 151 Officer also stated that with regard to the capital programme Members could if they were so minded at the December 2011 meeting of the Fire Authority look at the budget meeting in February 2012 to maximising reserves. The Director of Finance/Section 151 Officer also reminded Members that the situation for years 3 and 4 of the Comprehensive Spending Review were still uncertain, although the indicators were not good at the moment. Resolved - That the Authority’s financial position for the period ending 31 July 2011 be approved. ASSET MANAGEMENT PLANNING 3676 Estates Capital Programme 2012/13 Onwards – The Director of Finance/ Section 151 Officer submitted a report setting out for consideration the estate based schemes to be included in the Fire Authority’s capital programme for 2012/13 onwards. The main proposal contained within the report was to focus the Estates Capital Programme for 2012/13 and 2013/14 on the replacement of the Clough Road Fire Station in Hull with a new-build station on the same site. The Authority’s Asset Management Strategy (AMS) was approved by the Authority on 25 March 2011. The AMS incorporated all of the Service’s assets and was underpinned by the associated annual Asset Management Plans (AMPs) for each category of asset. The development of an over-arching AMS aimed to ensure the Authority uses its assets in the most effective manner in line with the Strategic Plan for 2011-14 and the Integrated Risk Management Plan (IRMP) for 2011/12. The AMS and AMPs were updated through an annual planning process which took into account needs identified through the Strategic Planning process and other external legislative requirements. The newly formed Infrastructure Board provided a forum for cross-directorate consideration of Estates issues and thus allowed for more effective prioritisation of resources. Table 1 to the report detailed the schemes proposed for inclusion in the capital programme for 2012/13 and 2013/14. The draft Capital Programme for 2012/13 onwards had been developed through the Board framework. Subject to Member approval, the proposals contained within the report for the Estates Capital Programme would be incorporated into the AMS and AMPs for 2012/13. The report indicated that Members could take assurance from the fact that in addition to the Estates Capital Programme expenditure there was also an Estates revenue allocation within the revenue budget of £522k in each of the years 2012/13 and 2013/14. That money was used to undertake ongoing repairs, servicing and maintenance on the wider Estate to ensure that facilities remain fit for purpose. The report also reminded Members of the recent announcements by BAe concerning the future of the workforce on the Brough site. That announcement also had a significant impact on the future of the Authority’s current fire station on the Brough site. Alternative options for the premises were currently under consideration and would be brought back to Members in due course. Members expressed their thanks to the Director of Finance/Section 151 Officer for his report. Resolved - That Members recommend to the Fire Authority the Estates Capital Programme for 2012/13 onwards contained within the report now submitted. 3677 Vehicle Replacement Programme 2012/13 Onwards – The Director of Finance/ Section 151 Officer submitted a report indicating that the current Vehicle Replacement Programme for 2011/12 to 2015/16 was approved by the Fire Authority on 14 December 2010. Budgetary provision in line with the proposals agreed was incorporated within the Authority’s Medium-Term Financial Plan for 2010/11 to 2012/13 agreed by the Fire Authority on 25 March 2011. The report updated the programme for the additional year 2016/17 and also outlined the recent changes made to the programme for 2012/13 and 2013/14. The updated heavy vehicle and associated equipment programme was shown in Appendix A to

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the report. There were no proposed amendments to the Programme for 2012/13 which showed the acquisition of 4 Fire Engines and an Aerial appliance. The light vehicles replacement programme was shown in Appendix B to the report. The Appendix contained details of the cars, vans and other light vehicles required to meet the Authority’s service delivery needs. The most significant element of the programme was officer pool cars, for which replacement was undertaken on a five-yearly rolling cycle. The Appendix reflected the following amendments to the programme:

Reduction of 6 medium cars as a result of the reductions in FDS officer numbers implemented as a part of the 2011/12 Integrated Risk Management Plan;

Upgrade 3 medium cars to 4x4 vehicles to improve operational resilience; Slippage of backup command unit to 2012/13, pending the evaluation of

operational requirements for the primary unit. The financial impact of the proposals contained within Appendices A and B was summarised in Table 1 to the report. Work was ongoing to research the most efficient and effective vehicle solutions for the Service. One of the priorities of the newly-formed Operational Assurance Board was to develop a long-term Vehicles Strategy and that might result in changes to the approved Programme going forward for 2013/14 onwards. Resolved - That Members recommend to the Fire Authority the approval of the proposals set out in the report in Table 1 and Appendices A and B. 3678 IT Capital Programme 2012/13 Onwards – The Director of Finance/Section 151 Officer submitted a report setting out for consideration the IT based schemes to be included in the Fire Authority’s capital programme for 2012/13 onwards. The schemes included took into account developing service needs around flexible access to systems and information, work to align with recognised best practice in IT Service Management using the ITIL Framework and the introduction of an Information Security Management System to achieve ISO27001 accreditation. The IT Asset Management Plan (AMP) was updated through an annual planning process which took into account service needs identified through the new Infrastructure Board framework; previously planned and agreed projects; IT best practice and work around Information Security. The proposals agreed for IT for 2012/13 would be incorporated into the AMP and the over-arching Asset Management Strategy for 2012/13. The financial plans agreed by the Fire Authority on 25 March 2011 outlined allocations of £320k for each of the financial years 2012/13 and 2013/14 for IT related capital expenditure. Based on the available resources outlined above, Table 1 to the report detailed the schemes proposed for inclusion in the capital programme for the next two years. The Capital Programme would address key issues aimed at achieving best practice in IT service management to the ITIL framework, support the delivery of the Service’s priorities and objectives as described in the Strategic Plan 2011-14 and increase efficiency going forward. Funding was included to continue the 4-year replacement strategy for IT equipment to ensure end users had up to date technology. That also now included the creation of a structured replacement programme for operational communication equipment outside the Airwave radio scheme, e.g. fire ground radios. The East Coast and Hertfordshire Consortium Control bid to improve resilience and efficiency following the closure of the Fire Control Project was subject to a bidding process through the Department for Communities and Local Government and was not contained within this programme (Minute 3680 below refers). In the event that any part of the bid was unsuccessful, it might be necessary to revise the overall IT Capital Programme for 2012/13 onwards. More information would be known on that aspect in the early part of 2012. Members were reminded that a separate piece of work was currently underway to assess the requirements for the Authority’s Wide Area Network (WAN) going forward. The initial assessment of the WAN requirements would be completed over the next 2-3 months and any upgrade proposed might have significant funding implications. The outcome and

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proposed funding to meet any WAN changes would therefore be reported back through Members as part of the budget setting cycle for 2012/13 onwards. Resolved - That Members recommend to the Fire Authority for approval the schemes included in Table 1 of the report as the basis for the IT capital programme for 2012/13 and 2013/14. 3679 BOARD UPDATE – BOARD PRIORITIES – The Secretary/Director of People submitted a report, further to Minute 3605, indicating that since the report to the Committee on 9 September 2011 all four delivery Boards had proposed 3 immediate priorities, which had been agreed by the Corporate Management Team (CMT) as set out below:

Infrastructure Board

Formulation and oversight of delivery of the Estates Capital Programme, with particular emphasis on the Hull estate in the short to medium term;

Development of IT provision – Wide Area Network project;

Embedding the environmental agenda throughout the Service.

Operation Assurance Board

Develop an Operational Vehicle Strategy;

Develop an Incident Command Strategy;

Develop and Deliver the Training Need Analysis.

People Board

Develop and propose a People Strategy;

Develop and propose a procedure for dealing with aspects of the Strategic Plan and implementation of the Integrated Risk Management Plan;

Specify and procure a HR/RM system.

Safety Board

Review and Evaluate the Technical Fire Safety Trial;

The achievement and maintenance of the ROSPA award in relation to Health & Safety management;

Development of a High Risk Team.

Progress against those priorities, was very much a matter for CMT (and also the Performance and Risk Board), but the Audit, Performance and Scrutiny Committee should also take a broader overview as part of its scrutiny role. Therefore, in the next cycle of meetings the Audit, Performance and Scrutiny Committee would receive update reports accordingly. The Sounding Board had had its first meeting on 25 October 2011. The Board existed primarily to act as a critical friend to an emerging CMT future vision for the Service. As reported to previous Committee meetings the Board was proportionally representative of all parts of the Service below Group Manager level. The Change Board continued to meet on a bi-monthly basis, with its focus upon the current Strategic Plan and broader organisational development projects. The Performance and Risk Board provided internal scrutiny and gave added assurance to the Audit, Performance and Scrutiny Committee. CMT would undertake a further review of the new Board structure in early 2011, with a further report to the Policy and Executive Committee at its Spring meeting. Resolved – That the report be noted.

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3680 EAST COAST AND HERTFORDSHIRE CONTROL ROOM CONSORTIUM JOINT RESILIENCE AND EFFICIENCY GRANT BID – The Chief Fire Officer and Chief Executive submitted a report indicating that at the Members Day on 14 October 2011, Members had received a presentation regarding the work to develop a joint funding bid between Humberside Fire & Rescue Service, Hertfordshire Fire & Rescue Service, Lincolnshire Fire & Rescue Service and Norfolk Fire & Rescue Service. The report updated Members on progress in developing the Authority’s future plans for its Control Room Service in light of the Department for Communities and Local Government’s (DCLG) intention to provide funding to support locally delivered improvements to the resilience, efficiency and security of fire and rescue control services in England. The 4 fire and rescue services had signed a high level Statement of Intent, set out in the Appendix to the report, to jointly prepare the bid and work collaboratively as the East Coast and Hertfordshire Control Room Consortium in developing their respective Control Room Services. The principles underpinning the Consortium’s bid were that each fire and rescue service (FRS) would retain its own Control Room, but with a high level of collaboration to maximise efficiencies with regard to infrastructure costs and provide a high degree of call management resilience. The Consortium bid for £8,446,341 had now been finalised and was submitted to DCLG on 4 November 2011, the closing date for all bids. DCLG had committed to inform all Fire and Rescue Authorities (FRA) of the outcomes of their respective bids by 31 January 2012. Pending the DCLG decision the four FRS would continue to work closely to prepare the necessary frameworks for implementation; including the formalisation of governance arrangements.

Resolved – (a) That Members note the contents of the report and take assurance in the proactive work in developing the Authority’s future plans with regard to its Control Room Services;

(b) that Members endorse the collaborative approach being taken to maximise Control Room efficiencies, effectiveness and resilience moving forward, and

(c) that Members commend the work done by Officers on the bid.

3681 BUSINESS CONTINUITY INDUSTRIAL ACTION – The Assistant Chief Officer/ Director of Safety presented a report by the Deputy Chief Officer/Director of Operations indicating that the risk relating to the ability of the Authority to maintain its statutory duties during a period of widespread staff shortage had been recognised for some time and featured on the Operational Assurance Board Risk Register. On 30 November 2011 it was likely that some non-operational staff might take industrial action, however, it was not anticipated that that would affect front line service delivery. The operational Representative Bodies (FBU, RFU and FOA) all elected not to ballot for industrial action on 30 November. The report provided an update on the work which had been undertaken so far to mitigate the identified risk, and the next steps which were planned to be taken. Members acknowledged the position of the FBU, RFU and FOA on 30 November 2011.

Resolved – That Members take assurance from the work being undertaken.

3682 STRATEGIC RISK REGISTER – The Secretary/Director of People submitted a report, further to Minute 3608, reminding Members that the Authority’s performance and risk management processes had now been combined in to a single framework. The existing format for risk registers had been refreshed and a new automated approach using the Service’s information portal would be used, which would vastly improve current approaches to risk creation, risk review, risk referral, risk removal and action planning. A copy of the Strategic Risk Register was attached at Appendix 1 to the report. The Strategic Risk Register has been reviewed by the Corporate Management Team (CMT) on 14 November 2011 and 2 new risk/opportunities had been identified regarding the changing landscape of local government and meeting the budget challenges of Years 3 and 4 of the Comprehensive Spending Review. The existing two strategic risks had been refreshed

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alongside corresponding action plans. Those would be further considered by CMT before the next edition of the Strategic Risk Register is finalised. The Strategic Risk Register was available on the Authority’s website and hard copies of some or all of the associated Action Plans could be made available to Members on request. Members were asked to review the Strategic Risk Register and to provide an assurance that Members consider that the Register properly reflects the key issues facing the Authority. In addition, through the Committee structure (particularly the Audit, Performance and Scrutiny Committee), Members should be satisfied that the Action Plans were effective and appropriate steps were being taken to further embed and resource corporate risk management and also use the Strategic Risk Register as a tool to drive (in part) the agenda and discussions at the Fire Authority meetings. Resolved – That the report be noted and that Members take assurance from the progress in the effective use of risk management. (Meeting closed at 10.42am)

Appointments Committee 18 November 2011

Agenda Item No. 7(d)


APPOINTMENTS COMMITTEE

18 NOVEMBER 2011

PRESENT: Councillors Briggs, Chapman, De Freitas, Swift and Walker.

Mrs Clarke (Independent Member of the Governance and Standards Committee) attended the meeting as an observer. Secretary/Director of People, Head of Human Resources and Committee Manager were also present.

The meeting was held at Humberside Fire and Rescue Service Headquarters, Kingston upon Hull. Meeting commenced at 12.12pm.

Apologies for absence were submitted by Councillors Gemmell OBE (1.Illness) and Waltham (3.Constituent Authority commitments).

(The Secretary/Director of People took the Chair for the following items (Minutes 3683-3684). 3683 DECLARATIONS OF INTEREST – There were no declarations. 3684 ELECTION OF CHAIRPERSON OF COMMITTEE Resolved – That Councillor Briggs be elected Chairperson until the Annual General Meeting of the Fire Authority in 2012. (Councillor Briggs advised the Committee that he would not be accepting the special responsibility allowance which would normally apply to any chairing of a Committee of the Fire Authority. Councillor Briggs then took the Chair). 3685 TERMS OF REFERENCE - Resolved – That that the functions of this Committee shall be construed as being those set out in Article 6 of the Constitution relating to the Policy and Executive Committee and in particular paragraph 6.3.2 (Appointment of Senior Officers) providing that all appointments made by this Committee shall be ratified by the Humberside Fire Authority. 3686 EXCLUSION OF THE PUBLIC - Resolved - That the public be excluded from the meeting for consideration of the following item (Minutes 3686 and 3687) on the grounds that they involve the likely disclosure of exempt information as defined in Paragraphs 1 & 2 of Part 1 of Schedule 12A of the Local Government Act 1972. (In passing this resolution the Committee was satisfied that the public interest in maintaining the exemption outweighed the public interest in disclosing the information). 3687 SHORTLISTING OF CHIEF FIRE OFFICER & CHIEF EXECUTIVE - The Committee was asked to consider the applications received for the post of Chief Fire Officer and Chief Executive and to determine a shortlist of candidates to be invited for interview on 9 December 2011. Resolved - That 3 candidates be invited to attend for an interview on 9 December 2011. 3688 NEXT STEPS – APPOINTMENT PROCESS – The Secretary/Director of People invited Members’ views on the arrangements to be adopted for the appointment process.

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Appointments Committee 18 November 2011

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Resolved – That the appointment process as now agreed and noted by the Secretary/Director of People be approved. (Meeting closed at 12.45pm)

Audit, Performance and Scrutiny Committee 29 November 2011


AUDIT, PERFORMANCE AND SCRUTINY COMMITTEE

29 NOVEMBER 2011 PRESENT: Councillors Chapman MBE (Chairperson), Billard, Hudson, Ross, Walker, Waltham and Wells and Mrs Hardy (Independent Member). Councillor Briggs and Mr D Hughes, Independent Member of the Governance and Standards Committee attended as observers. Deputy Chief Officer/Director of Operations, Secretary/Director of People, Director of Finance/Section 151 Officer, Assistant Chief Officer/Director of Safety, Head of Human Resources, Committee Manager and Ms J Rae (Audit Commission), S Dennis (Audit Commission) and Ms Y Mehmood (H W Controls & Assurance) were also present. The meeting was held at the Humberside Fire and Rescue Service Headquarters, Kingston upon Hull. Meeting commenced at 10.30 a.m. An apology for absence was submitted by Councillor Moore (5.Care commitments). Councillor Hudson was not present at the start of the meeting but had contacted the Authority to say that she would be delayed.

(Prior to the meeting Members of the Committee met with the internal and external auditors)

3689 DECLARATIONS OF INTEREST – There were no declarations.

3690 MINUTES – Resolved – That the minutes of the meeting of the Committee held on 20 September 2011 be approved as a correct record and signed by the Chairperson.

3691 MANAGEMENT ACCOUNTS TO 31 OCTOBER 2011 - The Director of Finance/ Section 151 Officer submitted a report containing the Authority’s Management Accounts and Prudential Indicators for the period ending 31 October 2011. The summary estimated outturn position from the Management Accounts and Prudential Indicators was as follows:

Revenue Budget - £2.119m underspend; Capital Programme - £5.036m total expenditure; Pensions Account - £7.647m deficit

The Independent Member referred to Table 1 on page 3 of the accounts and queried why the status of the budget line ‘Other Employee Expenses’ had changed from ‘green’ to ‘red’ . The Director of Finance/Section 151 Officer explained that there had been a more significant underspend in the previous year and that whilst the level of the underspend was £66,000 the budget line had been classified as ‘red’ because the underspend was less than previous. Resolved - That Members confirm that they have received sufficient assurance on the Authority’s financial position for the period ending 31 October 2011.

(Councillor Hudson arrived at 10.40am).

3692 TREASURY MANAGEMENT MID-YEAR UPDATE REPORT 2011/12 - The Director of Finance/Section 151 Officer submitted a report providing an update on the Authority’s treasury management activities for the first half of the financial year 2011/12. The report showed complete compliance with the Authority’s Capital Expenditure and Treasury Management Prudential Indicators and also investment returns broadly in line with the benchmark rate of return. The Authority on 25 March 2011 had approved the annual Treasury Management Policy Statement and agreed a range of Prudential Indicators aimed

Agenda Item No. 7(e)

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at ensuring effective treasury management and affordability of capital plans. The report ensured compliance with recommended practice as outlined in the Code, by providing Members with an update on treasury management undertaken since the beginning of the financial year and highlighting key Prudential Indicator information.

The Independent Member referred to paragraph 12 of the report and sought clarification regarding the statement that the Authority’s investment activity was marginally below the overall market benchmark. The Director of Finance/Section 151 Officer explained the Authority’s policies regarding investments led to a cautious approach being adopted but nevertheless the aim was to be as close to the benchmark as possible. The independent Member referred to paragraph 17 of the report and asked how long a period the Medium Term Financial Plan related to. The Director of Finance/Section 151 Officer stated that the plan covered a period of 4 years. A Member referred to paragraph 17 showing that investment in 3 counterparties was now restricted to £1m and sought clarification as to what it meant in practice to the Authority. A member also asked how credit worthiness of counterparty was monitored. The Director of Finance/Section 151 Officer stated that at any point in time the Authority had working balances on which it needed to obtain a return and that credit worthiness was measured using the Authority’s Treasury Management Advisers, Sector and that a credit rating list was published weekly. A Member asked how the Authority tested its borrowing rates of interest. The Director of Finance/Section 151 Officer stated that authorities tended to use the Public Works Loans Board as opposed to the money markets.

Resolved - (a) That Members note the treasury management activities undertaken during the first half of 2011/12 and the Prudential Indicators as outlined in paragraphs 24 and 25 and detailed in Appendix 1 to the report, and

(b) that Prudential indicators continue to be monitored on a monthly basis and reported to Members as part of the monthly ‘Management Accounts and Prudential Indicators’ report.

3693 ANNUAL ACCOUNTS PREPARATION 2011/12 - The Director of Finance/Section 151 Officer submitted a report outlining the key actions that had been identified as part of the preparation for the 2011/12 Annual Accounts process. The move to the International Financial Reporting Standard (IFRS) for 2010/11 Annual Accounts and a change in the Authority’s Finance Manager from March 2011 had proved to be significant challenges. However, those challenges were met and the Authority had produced compliant accounts with a clean opinion that were signed off by both the Audit Commission and Members prior to 30 September 2011. This report aimed to build on that position and looked forward to the 2011/12 Annual Accounts process. The Finance Team worked closely with the Audit Commission (the Authority’s External Auditors) on an ongoing basis and had met on 11 October 2011 after the completion of the 2010/11 Annual Accounts. That meeting focused on areas of the 2010/11 process that had worked well and other areas for development and improvement for 2011/12 as outlined in the report. Resolved - That Members take assurance from the actions planned for the 2011/12 Annual Accounts process. 3694 FINANCIAL PLANNING 2012/13 ONWARDS- The Director of Finance/Section 151 Officer submitted a report considering the Authority’s Revenue Budget for the period 2012/13 onwards. The report also discussed some of the key issues likely to impact on the Authority’s financial position over the short-to-medium term such as the decision on the 2012/13 Council Tax; the External Grant Settlement from Government for 2013/14 and 2014/15 and the delivery of the Strategic Plan 2011-14 and Integrated Risk Management Plan 2011/12 efficiencies agreed on 4 March 2011. The latest position on the Authority’s Revenue Budget for 2012/13 onwards was set out in Appendix 1 to the report. The key assumptions that had been incorporated into the budget were included in Appendix 2 with the most pertinent shown below in Table 1 to the report. The report was to be submitted to the Fire Authority on 13 December 2011. The Secretary/Director of People stated that a

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report regarding Change Management would also be submitted to the Fire Authority on 13 December 2011.

Resolved - That Members note the report and take assurance from the Authority’s proactive approach to its medium-term financial planning.

EXTERNAL AUDIT

3695 Annual Audit Letter 2010/11 – Further to Minute 3614 Ms J Rae, Audit Commission presented the District Auditor’s Annual Audit letter in respect to the Authority’s accounts for 2010/11. The District Auditor had given an unqualified opinion on the financial statements for the year ended 31 March 2011 on 28 September 2011. This was the first year that the accounts were prepared under International Financial Reporting Standards (IFRS) which was a considerable challenge for officers and a number of changes which were required to the financial statements in order to comply with these standards had been identified. The most significant changes made related to the treatment of injury benefits, pension contributions and the layout and content of the cash flow statement and some supporting notes. A number of other amendments were identified during the audit and were agreed with management; the most significant was a correction to the valuation of some of the Authority’s buildings. The final change made to the financial statements was related to the treatment of New Dimension Assets which were formally transferred from the Department for Communities and Local Government. The draft accounts were amended to reflect the correct treatment which was not agreed centrally until August 2011 which was after the draft accounts had been presented to the Fire Authority. The Commission’s Annual Governance Report which was submitted to this Committee on 20 September 2011 had given details of all amendments made to the accounts presented for audit and included a number of recommendations aimed at improvement areas for the accounts preparation arrangements, such as the need for a more robust and evidenced review process. With regard to Value for Money the District Auditor’s overall conclusion was that the Fire Authority had proper arrangements to secure, economy, efficiency and effectiveness in its use of resources.

The letter also indicated that in common with other parts of the public sector the Fire Authority continued to face significant challenges to ensure that increasing demands on the services provided were balanced against financial pressures and noted that since the last letter the Authority had:

restructured the Corporate Management Team, following the retirement of the former Chief Fire Officer, and amended the internal governance arrangements to create six Boards covering: People; Infrastructure; Performance & Risk, Safety; Operational Assurance, and Change;

explored opportunities for joint provision with other services in central Hull;

started to explore opportunities for collaboration with neighbouring fire authorities following the outcome of the National Strategic Fire Review (Fire Futures);

reported an underspend in 2010/11 and prepared a medium term financial plan for 2011/12 to 2014/15 to deliver corporate objectives;

set arrangements in place to develop a longer term planning cycle and vision for the Authority; and

maintained high standards of service delivery and response times.

All those developments were building blocks required to help achieve the Authority’s vision of providing an excellent emergency service to the local communities.

The Independent Member referred to the significant weaknesses in internal control listed on page 6 of the letter and asked how this Committee would be able to monitor action taken to address the weaknesses. Ms Rae stated that progress would be addressed during the audit for 2011/12 and reported to the Authority.

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Resolved – That the letter be noted.

3696 Audit Committee Update – Ms Rae (Audit Commission) submitted a report, further to Minute 3617, on progress on the audit work that the Audit Commission was undertaking as the Authority’s external auditors. A work programme setting out key milestones and outputs was set out in Appendix 1 to the report. Since the meeting of this Committee on 20 September 2011 the Commission had completed their work on the Authority’s financial statements and Value for Money conclusion and the District Auditor had issued his Annual Audit Letter which was a separate report on the Agenda for this meeting (Minute 3695 above refers). The report also drew Members’ attention to briefing notes on the following matters of interest:

Update on the externalisation of the Audit Practice Code on Data Transparency Guides to Local Government Finance Business Continuity in the Fire and Rescue Service Fighting Fraud Together – for information

Ms Rae drew Members’ attention to the Key Considerations listed in paragraph 33 of the report.

A Member referred to paragraph 12 of the report and asked whether it would be for authorities to decide whether contracts for the externalisation of the Audit Practice would be for 3 or 5 years. Mr Dennis, District Auditor, stated that the period of contracts would be determined by the Audit Commission. Resolved – That the report be noted and that Members take assurance from the progress on the external audit plan. INTERNAL AUDIT 3697 Internal Audit Monitoring Report - Ms Y Mehmood, - H W Controls & Assurance submitted a report, further to Minute 3550, on the progress of the 2011-2012 Internal Audit Plan as set out in Appendix A to the report. Resolved – That the report be noted.

3698 Community Protection Unit, Hull - Ms Y Mehmood, H W Controls & Assurance submitted a report indicating that the overall objective of the audit was to ensure that adequately controlled processes were in place that supports the effective and efficient operation of the CPU. Overall, based upon the work undertaken, H W Controls & Assurance had given a ‘Substantial’ assurance on the level of control in place to manage the operations of the CPU. The audit had identified weaknesses in controls in relation to the following issues:

• Inventory records maintained by the CPU do not disclose all the relevant information for assets held. For example, date of purchase and serial numbers are not recorded in the inventory log; and

• The annual inventory inspection was performed by the same officer who maintains the inventory records.

The report identified 6 areas of good practice/controls operating effectively and set out the key conclusions of the audit and also the agreed key management actions. The Independent Member referred to the weaknesses in controls and asked how they would be addressed. Ms Mehmood drew attention to the action plan in the report which set out agreed management action and stated that this Committee would receive an update at its next meeting.

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Resolved - That Members note the findings of the audit and are assured by the management action being taken. 3699 Pension Review – Ms Y Mehmood, H W Controls & Assurance submitted a report indicating that the overall objective of the audit was to ensure that effective governance arrangements and underlying key ‘business’ processes were in place and operating effectively. Overall, based upon the work undertaken, H W Controls & Assurance had given an ‘Adequate’ assurance on the level of control in place to manage the risks associated with the pensions process. The audit had identified weaknesses in controls in relation to the following issues:

• The interim contract in place with West Yorkshire Pension Fund does not disclose any performance measures to ensure service delivery is in line with management expectations; and

• The Fire Service did not have in place a written scheme of delegation at an operational level at the time of audit.

The report identified 1 area of good practice and set out the key conclusions of the audit and also the agreed key management actions. In reply to a question by a Member the Director of Finance/Section 151 Officer stated that the agreed actions had already been implemented. With regard to finding 2 in the action plan regarding legal advice the Secretary/Director of People stated that Members could be assured that he and the Director of Finance/Section 151 Officer would ensure a proper process had been applied. Resolved - That Members note the findings of the audit and are assured by the management action being taken. 3700 SERVICE PERFORMANCE REPORT FOR THE SECOND QUARTER PERIOD APRIL TO SEPTEMBER 2011 - The Deputy Fire Officer/Director of Operations and the Assistant Chief Officer/Director of Safety presented a report by the Chief Fire Officer and Chief Executive highlighting the Service’s performance for the period 1 April – 30 September 2011. Contained within the report were the Service’s own Performance Indicators (SPIs), which were underpinned by Local Performance Indicators (LPIs). The report detailed the Service Performance Indicators showing performance of actual against target as set out in the Table below. The Assistant Chief Officer/Director of Safety referred to the indicator SPI 15 ‘Total Fatalities’ and reported that since the report was written the number of fatalities had increased to five.

Service Performance Indicator Actual Against Target Actual Against Previous

Year Actual SPI 1 – Total Number of Automatic Fire Alarms (AFAs)

3% worse than target 11.7% better than previous year

SPI 2 – Total Accidental Dwelling Fires 3% better than target 9.8% better than previous year

SPI 2a – Total Other Accidental Fires (excluding Vehicles)

14% worse than target 14.0% worse than previous year

SPI 3 – Total Deliberate Primary Fires 28% better than target 23% better than previous year SPI 4 – Total Deliberate Secondary Fires 13% better than target 15.2% better than previous year SPI 5 – Total Fatalities 5 fatalities against aspirational

target of zero 2 fatalities for the period in the

previous year SPI 6 – Total Non-fatal Casualties 31 Non-fatal Casualties against

aspirational target of zero 23 Non-fatal Casualties for the

period in the previous year SPI 16a - Standard of First Appliance in Attendance is met

9% better than target 1.2% better than previous year

SPI 16b - Standard of Second Appliance in Attendance is met

12% better than Target 1.8% better than previous year

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Availability Performance Measures Actual Against Target Actual Against Previous

Year Actual WT Crewing Achieved on 95% of Shifts 100% crewing achieved Not Available

RDS 1st Appliance Availability – 95% Target 1.3% better than Target 4.8% better than previous year RDS 2nd Appliance Availability – 80% Target 1.7% better than Target 4.3% better than previous year

The report also detailed previous year performance against this year’s actual, and also included performance against intervention standards as detailed in section 2 of the report. The performance was encouraging regarding “Deliberate primary fires”, which were property fires in dwellings, Commercial properties, and also deliberate fires of all other types. Whilst it was difficult to attribute that to specific prevention activity it did highlight the efforts being made in Community Protection Units (CPUs), particularly against a backdrop of recession during which increases in deliberate fires were normally expected. The target for Retained Duty System (RDS) second appliance availability had been increased to 80% and the performance of that measure was also included in the Table above. SPI 2a – Total other Accidental Fires (excluding Vehicles) was currently 14% worse than target. Further detail on that and other indicators performance was contained within the report. The Deputy Chief Officer/Director of Operations stated that the second quarter benchmarking data for the family group that included this Authority had just become available and that data placed this Authority at the top of 4 out of twenty indicators and in second place in 5 others and informed Members that for the first time the data showed that this Authority was progressing at a faster rate than other authorities within the group.

Resolved - That the Committee notes the report’s detail and takes assurance from the Service’s proactive approach to performance management. 3701 STRESS SURVEY/CULTURAL AUDIT - The Secretary/Director of People submitted a report, further to Minutes 3627, indicating that as previously reported the Service recently undertook a Stress Survey and a Cultural Audit. As a result of those two pieces of work, a more focused and collaborative approach to culture development was being developed. The results of both surveys had been analysed and an action plan was now being developed in line with the emerging Vision of the Service, People Strategy and Single Equality Scheme 2012 – 2015 which would be presented to the Fire Authority early in 2012. The report provided Members with an update upon progress. Overall, both the Survey and the Audit had produced some positive results including:

Job satisfaction being valued by line managers being valued by the public are able to cope with the demands of their job being able to express views and opinions to colleagues/line

management

Areas identified as requiring improvement included:

access to training promotional opportunities transparency and trust with senior management education about the benefits of having a diverse workforce how organisational change is managed and communicated understanding their role and responsibilities within the organisation

or conflict within their role, and how to raise this A number of work streams were now underway which would contribute to addressing the issues identified through both the Survey and the Audit. Those included a new promotional policy, equality and diversity e-learning modules, an appraisal system allowing a more transparent view of training and development and the new Board structure (including introduction of the Sounding Board). Those areas of work had been reflected in the recent

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Peer Assessment where the Service had received the “Achieving” level of the Equality Framework. The outcomes of those results are now being used to develop an action plan which would inform the Service’s new People Strategy, which was currently being drafted. These results could also be broken down into different staff groups and CPU’s within the Service. The Independent Member referred to paragraph 8 of the report and sought clarification of the statement ‘an appraisal system allowing a more transparent view of training and development’. The Secretary/Director of People explained that a trial had been carried out and was being looked at further, and that the aim was to move away from the appraisal being a training needs appraisal only to a performance review appraisal that would apply to all staff. The intention was also to link appraisal to promotion. It was more challenging to extend appraisal to all staff as Retained Duty System staff had other primary employment and time commitments. A Member referred to paragraph 7 insofar as it related to ‘how organisational change is managed and communicated’ and ‘transparency and trust with senior management’ and asked what action was taken to communicate the Authority’s decision to appoint a Chief Fire Officer & Chief Executive. The Secretary/Director of People reminded Members of action that had been carried out since the survey was conducted last year in terms of developing the organisation through the use of Boards; developing a 10 year vision for the Authority; the creation of a sounding board with staff involvement; publishing a weekly internal communication of ‘Siren’, and trying to develop an approach where the Corporate Management Team is more open and he gave the example of recent staff visits. The Secretary/Director of People stated that the decision regarding the appointment of a Chief Fire Officer & Chief Executive was communicated through the ‘Siren’ publication. The Chairperson commented that having read copies of ‘Siren’ she had noted that there seemed to be more personal feedback from employees than there used to be. The Deputy Chief Officer/Director of Operations reminded Members that each year the Corporate Management Team undertook a series of twice yearly visits to the Community Protection Units and that there was no set Agenda for those meetings with staff and therefore any topics could be raised. Resolved - (a) That the report be noted; and

(b) that Members support further work that will be undertaken to develop an action plant to address issues arising from the analysis of the survey results. 3702 SICKNESS ABSENCE UPDATE - The Secretary/Director of People submitted a report, further to Minute 3628, providing the second quarter summary of absence data along with a brief commentary. Projections of full year absence levels were made based on the part year figures but should be treated with caution as sickness absence levels were likely to fluctuate during the course of the year. The projections anticipated reduced levels of absence for wholetime operational and support staff and increases for Service Control and retained duty system staff compared to the previous year. Data to the end of the second quarter 2011/12, by employee groups, was shown in Appendix 1 to the report. A Member referred to the statement in paragraph 3 of the report that one of the main reasons for absence was musculoskeletal disorders and queried whether any action needed to be taken to address the situation. The Secretary/Director of People stated that the report was not saying that there was a particular problem within the Humberside Fire and Rescue Service but that such disorders figured in the breakdown of the causes of absences, and that such disorders were to be expected. The Secretary/Director of People stated that the situation would be similar in other Brigades. He emphasised the figures did not relate to workplace injuries but absence generally. The Secretary/Director of People felt that perhaps the characteristics of the role of a Firefighter was part of the reason. The Deputy Chief Officer/Director of Operations stated that the Authority took a proactive approach to fitness which had been extended on a voluntary basis to non-operational staff and suggested that that would also have contributed to the improvement in the sickness absences.

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Resolved - (a) That the report be noted; and

(b) that Members continue to take assurance from the approach adopted to effectively manage and reduce workforce sickness levels including the development of an action plan aimed at continuing the trend of managing down sickness absence. 3703 CORPORATE RISK/OPPORTUNITY MANAGEMENT - The Secretary/Director of People submitted a report reminding Members that the Authority’s performance and risk management processes had now been combined in to a single framework. The existing format for risk registers had been refreshed and a new automated approach using the Service’s information portal would be used, which would vastly improve current approaches to risk creation, risk review, risk referral, risk removal and action planning. Risk/opportunity was managed at four levels; Corporate, Board, Directorate/CPU and Project. The Corporate Management Team (CMT) had now reviewed the Strategic Risk Register and two additional risks/opportunities had been identified relating to the changing landscape of local government and responding to the budget challenge of years 3 and 4 (considering additional options to the residential self-rostering proposed as part of the 2011/12 IRMP). The Action Plans in respect to the current two strategic risks had been refreshed. The new Strategic Risk Register was not available for submission to this meeting but would be submitted to the Fire Authority on 13 December 2011. The current Strategic Risk Register was available on the Authority’s website at www.humbersidefire.gov.uk. Members were asked to review the Strategic Risk Register and the Board level red risks to provide an assurance that Members consider that the Registers properly reflects the key issues facing the Authority. In addition, further assurance could be taken from the role of the Performance & Risk Board and the reporting of Corporate and Board level risks. Also through the Committee structure (particularly this Committee), Members should be satisfied that the Action Plans are effective and appropriate steps are being taken to further embed and resource corporate risk management. Members are also asked to use the Risk Registers as a tool to drive (in part) the agenda and discussions at Committee meetings.

Resolved – That the content of the report be noted and that Members are assured by the progress made in the effective use of risk management. Meeting closed at 12.00 noon

Agenda Item No.

Humberside Fire Authority 13 December 2011

Report by the Chief Fire Officer & Chief Executive

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EXECUTIVE REPORT INTRODUCTION

This executive report is aimed at updating members on a range of issues. It is felt that with further explanation at the meeting, the issues covered in this report do not warrant a separate paper. Members are asked to note the content of this report. REPORT DETAIL

LOCAL ISSUES 1. Fire Angel ST 620 Smoke Alarms

On 31 October 2011 HFRS was called to a small fire in a domestic utility room in a Hull dwelling. The fire started in a smoke alarm that had been removed by the occupier and placed in a paper rack. The smoke alarm, recently fitted by our personnel was making a low battery warning sound. As this was the second fire involving a smoke alarm in Humberside the Head of Fire Safety alerted all other Fire and Rescue Services and asked for information about any similar fires. One was subsequently reported by London Fire Brigade and another by Cambridgeshire Fire and Rescue. In view of this the fitting of Fire Angel ST 620 smoke alarms was suspended and an interim batch of Kidde smoke alarms was purchased. As Fire Angel, the manufacturer of the ST 620 had investigated the first fire it was agreed that these fires would be investigated independently. The final report from an Independent Body concludes that the fires were all caused by a battery short circuit leading to overheating. The short circuits were most likely caused by impact. Fire Angel have modified the ST 620 and have offered to replace our entire stock of smoke alarms with the new model free of charge. Discussions are still underway to establish whether it is feasible to test the modified smoke alarm, or any other smoke alarm in such a way that gives complete assurance that battery overheating cannot be induced. Until these discussions have concluded HFRS are fitting Kidde smoke alarms which have not suffered any similar failures. Members should be aware that these failures are very rare. Over one million Fire Angel smoke alarms have been fitted in the UK alone and so far there have been five reported incidents of battery overheating (the fifth was in Dorset). No smoke alarm, once correctly fitted into position, has ever caught fire but as a precaution we will be writing to all houses in which we have fitted this alarm instructing the occupiers of actions to take in the event that the fault/low battery signal sounds.

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2. Small Fires Unit In the early hours of Wednesday 9 November 2011 the Small Fires Unit was

mobilised to a fire in Riverdale Road in Hull. On arrival the crews found a number of sheds and kennels well alight so called for a further two appliances which arrived shortly afterwards.

The fire was quickly extinguished, but two dogs, six puppies and three ferrets died.

The subsequent fire investigation and incident debrief concluded that immediate attendances of the fire appliances would not have changed the outcome of the incident.

Officers were concerned as to why the Small Fires Unit was mobilised to what had

become a moderate sized fire. An investigation into the handling of the call has been initiated and the findings will be made known to Members.

3. Operational Assessment Members will be aware that in October 2010 HFRS received a positive peer audit of

its operational capability. Whilst this is valid for three years the Performance and Risk Team have begun discussions with the LGA regarding the next round of Operational Assessment Peer Audit.

On Thursday 19 October 2011 the CFO and the Performance and Risk Team met

with Gary Hughes of the LGA to establish the future format of Operational Assessment. Gary explained that the aim of the process was to validate a self-assessment which in itself would be a means of improving operational effectiveness. It was agreed that HFRS would have a peer review in February 2013 and that the focus would most likely be operational training or health and safety.

A lead peer will be selected and agreed with the CFO and the Performance and Risk

Team will begin gathering evidence in accordance with the latest Operational Assessment Toolkit.

4. Alternative Duty Systems In March 2011 members asked officers to carry out further research into the

feasibility of implementing a residential self-rostering duty system (RSR) as proposed in the 2011-12 IRMP. That research has led to the conclusion that it would be prudent to consider other means of reducing headcount to ensure that budget targets can be met.

The conclusion was drawn primarily because legal opinion states that RSR is not

Working Time Directive compliant unless those who work such a system opt out. Whilst this does not rule out the introduction of RSR, indeed an increasing number of services are introducing such duty systems, it would be desirable to have a range of options for staff and Members to consider.

The project team is therefore drawing together many months of research and will

present a range of duty system options to the Change Board at their December meeting. It is envisaged that any firm proposals will come before Members in spring 2012 before going out to wider consultation.

As it is over two years since Members set the criteria to evaluate the 2011-12 IRMP

proposals and the economic situation has changed significantly since then, they may wish to review those criteria during a future Member Day. These factors have now been captured in Strategic Risk 342 which deals with the consequences of forecast budget reductions.

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5. Community Resilience Whilst Community Emergency Plans are well embedded in some parts of the Service

area they are not common in other parts. The developing vision for HFRS suggests that the Service should play a greater part in helping communities prepare for civil emergencies and Community Emergency Plans are an ideal vehicle to achieve that.

Community Emergency Plans are currently being promoted by the Humber

Emergency Planning Service HEPS but it is evident that these should now be supported by the Local Resilience Forum (LRF). The CFO has therefore proposed that this is discussed at the next LRF meeting which will take place on 1 December 2011.

6. Goole Fire Station Standby Arrangements Members will recall that the response arrangements at Goole Fire Station changed

from two wholetime appliances to one wholetime and one RDS appliance in July 2010. At that time special standby arrangements were put in place to give residents assurance that the fire cover model was satisfactory. These standby arrangements were to be reviewed after 12 months.

That review has taken place and drawn the conclusion that the Goole Fire cover

arrangements are fit for purpose and that special standby arrangements are no longer appropriate.

The special standby arrangements meant that as soon as the wholetime appliance

was mobilised the RDS crew were turned out to standby at Goole Fire Station. Of the 54 times that they were turned out during the review period the RDS crew were only sent on to one incident.

This clearly indicates that the special arrangements are not necessary therefore

standbys at Goole now conform to the Service norm which allows Service Control discretion to assess the need for an immediate standby. If the wholetime pump is not available within ten minutes a standby will be deployed in any case.

NATIONAL ISSUES 7. TUC Day of Action 30 November 2011 Members will be aware that a number of public sector unions went on strike on 30th

November 2011. A small number of service support staff participated in strike action but no disruption was caused to our emergency response capability.

The Business Interruption Management Team (BIMT) met regularly throughout the

run-up to the day of action and successfully anticipated all problems thus ensuring business continuity. Whilst BIMT has been stood down the Resilience Section are continuing to develop and test plans that will enable the Service to fulfill its statutory duties should the action continue or escalate.

8. Proposed Merger – Cumbria and Northumberland FRS Cumbria and Northumberland FRS have participated in a feasibility study to assess

the benefits and challenges offered by merging their services. That feasibility study is now complete and it has concluded that a merger is not possible. The principle reason for this is that without the facility to differentially precept in each authority area it would not be possible to reconcile the differences in service and cost.

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This conclusion is similar to that drawn by the HFA regarding merger with neighbouring services and adds weight to the argument that the benefits of merger are more than offset by the practicalities involved and the limited potential for savings and efficiencies.

Richard Hannigan Chief Fire Officer

Officer Contact: Richard Hannigan 01482 567417 Chief Fire Officer Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull

Audit Commission Annual Audit Letter 1

Annual Audit Letter Humberside Fire Authority

Audit 2010/11

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jsmith

Stamp


Contents Key messages..............................................................................................................................................................3

Audit opinion and financial statements...................................................................................................................3

Value for money .....................................................................................................................................................3

Current and future challenges ...................................................................................................................................4

Financial statements and annual governance statement ........................................................................................5

Overall conclusion from the audit ...........................................................................................................................5

Significant weaknesses in internal control..............................................................................................................6

Value for money...........................................................................................................................................................7

Closing remarks ..........................................................................................................................................................9

Appendix 1 - Fees......................................................................................................................................................10

Appendix 2 - Glossary...............................................................................................................................................11

Traffic light explanation Red Amber Green

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Key messages

This report summarises the findings from my 2010/11 audit. My audit comprises two elements: ■ the audit of your financial statements; and ■ my assessment of your arrangements to achieve value for money in your use of resources. I have included only significant recommendations in this report. The Fire Authority has accepted

these recommendations.

Key audit risk Our findings

Unqualified audit opinion

Proper arrangements to secure value for money

Audit opinion and financial statements ■ I have issued an audit report including an unqualified opinion on

your financial statements. ■ Your financial statements were prepared to a reasonable standard

but I did identify the need for a number of significant amendments, to ensure the statements complied with IFRS and to ensure that the statements, including the supporting notes, complied with the Code.

■ I identified a number of areas for improvements.

Value for money

I am required to give a statutory value for money conclusion on your arrangements to secure economy, efficiency and effectiveness. I need to conclude whether you have proper arrangements at a minimum standard for: ■ securing financial resilience; and ■ challenging how you secure economy, efficiency and effectiveness.

I am satisfied that you made proper arrangements to secure economy, efficiency and effectiveness for the year ended 31 March 2011.

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Current and future challenges In common with other parts of the public sector the Fire Authority continues to face significant challenges to ensure that increasing demands on the services provided are balanced against financial pressures.

Since my last letter you have: ■ restructured your Corporate Management Team, following the retirement of the former Chief Fire Officer, and amended your internal governance

arrangements to create six Boards covering: People; Infrastructure; Performance & Risk, Safety; Operational Assurance and; Change; ■ explored opportunities for joint provision with other services in central Hull; ■ started to explore opportunities for collaboration with neighbouring fire authorities following the outcome of the National Strategic Fire Review (Fire

Futures); ■ reported an underspend in 2010/11 and prepared a medium term financial plan for 2011/12 to 2014/15 to deliver corporate objectives; ■ set arrangements in place to develop a longer term planning cycle and vision for the Authority; and ■ maintained high standards of service delivery and response times.

All these developments are building blocks required to help achieve your vision of providing an excellent emergency service to the local communities.

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Financial statements and annual governance statement The financial statements and annual governance statement are an important means by which the

Fire Authority accounts for its stewardship of public funds.

Overall conclusion from the audit

I gave an unqualified opinion on your financial statements for the year ended 31 March 2011 on 28 September 2011.

This was the first year that your accounts were prepared under International Financial Reporting Standards (IFRS). This was a considerable challenge for officers. I identified a number of changes which were required to the financial statements in order to comply with these standards. The most significant changes made related to the treatment of injury benefits, pension contributions and the layout and content of the cash flow statement and some supporting notes.

A number of other amendments were identified during the audit and were agreed with management; the most significant was a correction to the valuation of some of your buildings.

The final change made to the financial statements was related to the treatment of New Dimension Assets which were formally transferred from the Department for Communities and Local Government. The draft accounts were amendment to reflect the correct treatment which was not agreed centrally until August which was after the draft accounts had been presented to the Fire Authority.

My Annual Governance Report gives details of all amendments made to the accounts presented for audit. The report includes a number of recommendations aimed at improvement areas for your accounts preparation arrangements such as the need for a more robust and evidenced review process.

There was a significant increase in the amount of audit work carried out during the audit and I have agreed an increase to the audit fee with the Director of Finance, see appendix 1.

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Significant weaknesses in internal control

In completing my audit I identified some weaknesses in your internal control arrangements which have been reported in either my Interim Governance Report or my Annual Governance Report. The weaknesses were identified in the following areas: ■ processing permanent amendment reports for payroll; ■ receipt or information from Hull City Council for investments; ■ follow up of non return of life certificates from pensioners; and ■ controls on authorisation of payroll expenditure.

My reports include actions agreed by officers to address these weaknesses.

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Value for money I considered whether the Fire Authority is managing and using its money, time and people to

deliver value for money. I assessed your performance against the criteria specified by the

Audit Commission and have reported the outcome as the value for money (VFM) conclusion.

I assess your arrangements to secure economy, efficiency and effectiveness in your use of resources against criteria specified by the Audit Commission. My overall conclusion is that the Fire Authority has proper arrangements to secure, economy, efficiency and effectiveness in its use of resources.

My conclusions, for the two areas specified by the Audit Commission for special attention in 2010/11, are set out below.

Value for money criteria and key messages

Criterion Key messages

1. Financial resilience

The organisation has proper arrangements in place to secure financial resilience.

Focus for 2010/11:

The organisation has robust systems and processes to manage effectively financial risks and opportunities, and to secure a stable financial position that enables it to continue to operate for the foreseeable future.

The Authority has recognised the challenges faced and has identified the levels of savings required and means by which they can be achieved. Financial impact forms part of key business decisions. Members have been involved in business planning processes throughout 2010/11, leading to the discussion on and agreement of the Integrated Risk Management Plan (IRMP) and strategic plan for 2011/12. The Authority has developed a future reserves strategy. Expenditure in 2010/11 has again been within budget and financial monitoring during the year reported in monthly management accounts which are discussed by officers and members. Surplus funds are invested and the prudential code followed.

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Criterion Key messages

2. Securing economy efficiency and effectiveness

The organisation has proper arrangements for challenging how it secures economy, efficiency and effectiveness.

Focus for 2010/11:

The organisation is prioritising its resources within tighter budgets, for example by achieving cost reductions and by improving efficiency and productivity.

In preparing the IRMP and strategic plan for 2011/12 there is evidence that the Fire Authority has been reviewing the services provided and looking for ways to improve efficiency without cutting front line services. There is evidence of understanding which savings have longer term impact and a clear understanding of the long term impact of government funding changes on the fire authority. The Fire Authority has entered into consultation with others and entered into discussion on collaborative arrangements. The Fire Authority also produces regular and detailed performance management reports. There has been no adverse impact on performance standards.

In completing my work I paid particular attention to the work undertaken in response to recommendations in the Audit Commission report ‘Rising to the challenge – improving fire service efficiency’ published in 2008. This report set down specific challenges to all fire authorities to make savings whilst not compromising safety and to effectively use their workforces and other resources more effectively to improve performance and reduce costs.

I specifically examined your arrangements for delivering savings and improving productivity in the following four areas: ■ identifying priorities and delivering savings; ■ crewing, shift arrangements and appliances; ■ procurement and back office services; and ■ collaboration.

I found that in developing IRMP and Strategic Plan attention had been given to all areas outlined above. However, all areas require ongoing attention to meet future financial challenges faced by all public organisations.

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Closing remarks I have discussed this letter with the Chief Fire Officer/Chief Executive and the Director of Finance. I will present this letter at the Audit, Performance and Scrutiny Committee on 29 November 2011 and the Fire Authority on 13 December 2011. Copies of the letter will be given to all board members.

More detailed findings, conclusions and recommendations in the areas covered by our audit are included in the reports issued to the Fire Authority during the year.

Report Date issued

Interim Governance Report June 2011

Annual Governance Report September 2011

The Fire Authority has taken a positive and constructive approach to our audit. I wish to thank the Fire Authority and officers for their support and co-operation during the audit.

Mark Kirkham District Auditor

November 2011

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Appendix 1 - Fees

Actual Proposed Variance

Scale fee 79,356 75,100 +4,256

Non-audit work 0 0 0

Total 79,356 75,100 +4,256

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Appendix 2 - Glossary Annual governance statement

Governance is about how local government bodies ensure that they are doing the right things, in the right way, for the right people, in a timely, inclusive, open, honest and accountable manner.

It comprises the systems and processes, cultures and values, by which local government bodies are directed and controlled and through which they account to, engage with and where appropriate, lead their communities.

The annual governance statement is a public report by the Council on the extent to which it complies with its own local governance code, including how it has monitored the effectiveness of its governance arrangements in the year, and on any planned changes in the coming period.

Audit opinion

On completion of the audit of the financial statements, I must give my opinion on the financial statements, including: ■ whether they give a true and fair view of the financial position of the audited body and its spending and income for the year in question; and ■ whether they have been prepared properly, following the relevant accounting rules.

Opinion

If I agree that the financial statements give a true and fair view, I issue an unqualified opinion. I issue a qualified opinion if: ■ I find the statements do not give a true and fair view; or ■ I cannot confirm that the statements give a true and fair view.

Value for money conclusion

The auditor’s conclusion on whether the audited body has put in place proper arrangements for securing economy, efficiency and effectiveness in its use of resources based on criteria specified by the Audit Commission.

If I find that the audited body had adequate arrangements, I issue an unqualified conclusion. If I find that it did not, I issue a qualified conclusion.

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If you require a copy of this document in an alternative format or in a language other than English, please call: 0844 798 7070

© Audit Commission 2011. Design and production by the Audit Commission Publishing Team. Image copyright © Audit Commission.

The Statement of Responsibilities of Auditors and Audited Bodies issued by the Audit Commission explains the respective responsibilities of auditors and of the audited body. Reports prepared by appointed auditors are addressed to non-executive directors, members or officers. They are prepared for the sole use of the audited body. Auditors accept no responsibility to: ■ any director/member or officer in their individual capacity; or ■ any third party.

www.audit-commission.gov.uk November 2011

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Agenda Item No.


Report by the Director of Finance/S.151 Officer

10

TREASURY MANAGEMENT MID-YEAR UPDATE REPORT 2011/12

SUMMARY 1. This report provides an update on the Authority’s treasury management activities for

the first half of the financial year 2011/12. 2. The report shows complete compliance with the Authority’s Capital Expenditure and

Treasury Management Prudential Indicators and also investment returns broadly in line with the benchmark rate of return. RECOMMENDATIONS

3. (a) That Members note the treasury management activities undertaken during the first half of 2011/12 and the Prudential Indicators as outlined in paragraphs 25 and 26 and detailed in Appendix 1.

(b) That the Prudential indicators continue to be monitored on a monthly basis and

reported to Members as part of the monthly ‘Management Accounts and Prudential Indicators’ report.

BACKGROUND 4. Treasury Management, as defined by the Chartered Institute of Public Finance and

Accountancy (CIFPA) Code of Practice 2009 is: ‘‘The management of the organisation’s investments and cash-flows, its banking, money market and capital market transactions, the effective control of the risks associated with those activities and the pursuit of the optimum performance consistent with those risks.’’

5. The Authority on 25 March 2011 approved the annual Treasury Management Policy Statement and agreed a range of Prudential Indicators aimed at ensuring effective treasury management and affordability of capital plans. 6. This report ensures compliance with recommended practice as outlined in the Code,

by providing Members with an update on treasury management undertaken since the beginning of the financial year and highlighting key Prudential Indicator information. ECONOMIC BACKDROP 2011/12

7. Following zero growth in the final half of 2010/11 the UK economy grew by a weaker than expected 0.1% in the first quarter of 2011/12, providing a knock on effect to future growth prospects. Growth prospects will be governed by UK consumer sentiment, which is currently subdued due to falling disposable income. Higher VAT, overhanging debt, high inflation and concerns over employment are likely to weigh heavily on consumers into the future.

8. The announcement by the MPC on 6 October of a second round of quantitative easing

(Q.E) of £75bn emphasised how seriously the MPC now views recession as being a much bigger concern than inflation. Although inflation remains stubbornly high, the MPC’s expectation of future falls resulting in an undershoot of its 2% target opened the way for this new round of Q.E.

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9. International investors continue to view UK government gilts as being a safe haven

from the EU sovereign debt crisis. The consequent increase in demand for gilts has helped to add downward pressure on gilt yields and sent PWLB borrowing rates to low levels.

ECONOMIC FORECAST

10. The Authority’s Treasury Management Advisers, Sector, provide the following view on

the economic outlook going forward:

“There remain huge uncertainties in economic forecasts due to the following major difficulties:

the increase in risk that the UK, US and EU could fall into recession; the likely political gridlock in the US preventing significant government fiscal action

to boost growth ahead of the Presidential elections in November 2012; the potential for a major EU sovereign debt crisis which could have a significant

impact on financial markets and the global and UK economies; the degree to which government austerity programmes will dampen economic

growth; the potential for further quantitative easing, and the timing of this in both the UK

and US; the speed of recovery of banks’ profitability and balance sheet imbalances and the

risk of substantial losses being incurred on EU sovereign debt.

The overall balance of risks is weighted to the downside:

We expect low growth in the UK to continue, with a low Bank Rate to continue for at least 24 months, coupled with a possible further extension of quantitative easing. This will keep investment returns depressed;

The expected longer run trend for PWLB borrowing rates is for them to rise, primarily due to the need for a high volume of gilt issuance in the UK, and the high volume of debt issuance in other major western countries. However the current safe haven status of the UK may continue for some time, postponing any increases until 2012.”

11. Based on the above, it is Sector’s view that there is unlikely to be any increase in Bank

Rate until September 2013. 12. Investment and borrowing strategies will continue to be kept under close review by the

Director of Finance/S.151 Officer throughout the remainder of the financial year in light of the changing market conditions.

INVESTMENT ACTIVITY

13. The Authority’s temporary investments totalled £17.0M as at 30 September 2011, with a further £1.564K in the Authority’s Special Interest Bearing Account (SIBA). Table 1 – Investment income earned April to September 2011

Interest Earned April to

September 2011

Rate of return April to

September 2011

Benchmark return April to

September 2011

Difference (Adverse)

April to September

2011

£50,000

0.42%

0.47%

(0.05%)

* Benchmark set as seven day LIBID rate

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14. Although the rate of return on the Authority’s investment activity is marginally below

the overall market benchmark, this is reflective of the Authority’s prudent approach to the on-lending of surplus funds and the decision to prioritise security of capital by restricting investments to those counterparties with the highest levels of creditworthiness.

15. Interest earned during the first six months of 2011/12 exceeded the budget by £29k

due to rates being marginally more favourable than anticipated and working balances being higher than originally budgeted.

16. Opportunities for investment may however be more limited during the remainder of the

year, following the recent downgrading of the long and short-term credit ratings of a number of UK based financial institutions, including the Lloyds Banking Group, RBS Group and the Nationwide.

17. Under the Authority’s current Treasury Management Strategy, the investment limit of

these three counterparties is now restricted to £1M each, rather than £2M and this is now being applied going forward in respect of new investments. BORROWING Short-Term Borrowing

18. The Authority seeks to minimise the use of short-term borrowing to fund temporary cash shortfalls. In the first six months of the year, the Authority undertook short-term borrowing on one occasion for a period of five days for this purpose. Long-Term Borrowing

19. Long-term loans are taken out either to replace existing loans which have matured or to fund capital expenditure. Under the Prudential Regime there are no longer centrally imposed limits on borrowing, but individual Authorities are required to determine themselves what is a sustainable and affordable level of borrowing as an integral part of their Medium-Term Financial Planning processes. 20. The Authority’s level of borrowing was £20.763M as at 30 September 2011, with an equated average rate of interest payable at 4.66%. An expected £1.216M of interest is projected to be payable on external debt for 2011/12.

21. The Authority undertook £2M of new borrowing on 9 September 2011, taking

advantage of the fall in borrowing rates being experienced in the period in order to finance new capital expenditure. This borrowing took the form of three fixed-rate loans from the Public Works Loan Board (PWLB); details of which are shown below:

Amount Duration of Loan Interest Rate £1.0m 12 years 3.84% £0.7m 7 years 2.87% £0.3m 5 years 2.36%

22. Limited opportunities for rescheduling of debt in order to secure savings in interest

have been available given the prevailing market climate, thus no re-scheduling has been undertaken during the course of the financial year to date. The Authority continues to monitor the market in conjunction with its treasury management advisors with a view to capitalising on opportunities should they arise during the remainder of the year.

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PRUDENTIAL INDICATORS

23. Appendix 1 details the Prudential Indicators agreed by Members at the Fire Authority on 25 March 2011 and shows for comparison the actual figures as at 30 September 2011. 24. During the period April to September 2011, the Authority operated wholly within the limits approved.

Capital Expenditure

25. The S.151 Officer considers the current capital programme to be affordable and sustainable with the revenue effects of capital investment built into the Medium-Term Financial Plan. Through the Service and Finance Planning Process the Authority has ensured alignment of its capital resources to key strategic priorities. Treasury Management

26. External debt is currently £10.937M below the agreed operational limit for 2011/12 and the maturity structure for both borrowing and investments remain within the approved upper and lower limits. Subsequent borrowing or re-scheduling during 2011/12 will take in to account prevailing interest rates on offer from the Public Works loans Board, the current maturity structure of loans, balanced with the need to reduce capital risk by maintaining prudently low levels of cash-balances.

STRATEGIC PLAN COMPATIBILITY

27. Treasury management is an integral part of the financial management of the Authority. Utilising approved borrowing and investment strategies will maximise investment income whilst minimising exposure to liquidity and market risks.

FINANCIAL/RESOURCES/VAULE FOR MONEY IMPLICATIONS

28. The Authority’s approach to investment of surplus funds is designed to further mitigate against potential losses as a consequence of counterparty failure and reflects a prudent approach to treasury management activity.

LEGAL IMPLICATIONS

29. The Authority must comply with the requirements of the CIPFA Code of Practice on Treasury Management and the Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2008. This report ensures such compliance.

EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS

30. No direct issues arise from this report. CORPORATE RISK MANAGEMENT IMPLICATIONS

31. The application of and regular monitoring thereafter of a prudent Treasury Management Policy and related Prudential Indicators ensures that the Authority effectively manages financial risks such as exposure to interest rate changes, liquidity and market risk whilst minimising borrowing costs and maximising investment income. As an integral part of the financial planning process, it ensures that the financial plans upon which the Authority’s Strategic Plan is based are effective and robust; Risk No. 249 of the current Strategic Risk Register refers.

HEALTH AND SAFETY IMPLICATIONS 32. No issues arising.

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COMMUNICATIONS ACTIONS ARISING 33. No direct issues arising. DETAILS OF CONSULTATION 34. The Authority’s current approved Treasury Management Strategy reflects guidance and market information supplied by the Authority’s treasury management advisors. BACKGROUND PAPERS 35. ‘Treasury Management and Capital Expenditure Prudential Indicators, Treasury Management Policy Statement 2011/12 and Minimum Revenue Provision for 2011/12’ – Report to Fire Authority 25 March 2011. CIPFA Code of Practice on Treasury Management 2009. CIPFA Treasury Management Guidance -March 2009. RECOMMENDATIONS RESTATED 36. (a) That Members note the treasury management activities undertaken during the

first half of 2011/12 and the Prudential Indicators as outlined in paragraphs 25 and 26 and detailed in Appendix 1.

(b) That Prudential indicators continue to be monitored on a monthly basis and

reported to Members as part of the monthly ‘Management Accounts and Prudential Indicators’ report.

K WILSON

Officer Contact: Kevin Wilson 01482 567183 Director of Finance/S.151 Officer Humberside Fire & Rescue Service Headquarters Summergroves Way Kingston upon Hull KW/AJ/SJ 24 November 2011

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Appendix 1

Prudential Indicators as at 30 September 2011

a) Capital Expenditure Indicator 1 - Capital Expenditure The actual capital expenditure for the current year compared to the original estimate and revised budget, together with estimates of expenditure to be incurred in future years are shown below:

2010/11 2011/12 2011/12 2012/13 2013/14 Actual Original Revised Estimate Estimate £k £k £k £k £k

Total Capital expenditure 3,340 4,007 5,100 3,707 2,160

The projected underspend for 2011/12 reflects slippage of the 2011/12 CLG grant funding, currently unallocated, as reported to Members in the monthly ‘Management Accounts and Prudential Indicators’ report in September 2011. Indicator 2 - Ratio of Capital Financing Costs to Net Revenue Stream The ratio of financing costs to net revenue stream for the current year and estimates for future years are as follows: -

2010/11 2011/12 2011/12 2012/13 2013/14 Actual Original Revised Estimate Estimate % % % % % Ratio of Financial Costs

to Net Revenue Stream 5.37 5.80 5.58 6.41 7.47

These ratios indicate the proportion of the net budget of the Authority that is required to finance the costs of capital expenditure in any year. Estimates of financing costs include current commitments and the proposals contained in the capital programme of the Authority. In calculating the ratio, Net Revenue Streams in any year have been taken to exclude any element of the net budget requirement that is intended to provide reserves for the Authority. The projected increase in the ratio over the period reflects the increase in capital financing costs resulting from the capital allocations approved as part of the medium-term financial plan.

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58

Indicator 3 - Capital Financing Requirement The capital financing requirement for 2010/12 and estimates for future years are as follows:- Actual Estimate Revised Estimate 31/03/11 31/03/12 31/03/12 31/03/13 £k £k £k £k

Capital Financing Requirement 16,022 20,537 18,566 22,848

The capital financing requirement measures the Authority’s need to borrow for capital purposes. In accordance with best professional practice, the Humberside Fire Authority does not associate borrowing with particular items or types of expenditure. The Authority has, at any point in time, a number of cash flows both positive and negative, and manages its treasury position in terms of its borrowings and investments in accordance with its approved Strategy. In day to day cash management, no distinction can be made between revenue cash and capital cash. External borrowing arises as a consequence of all the financial transactions of the authority and not simply those arising from capital spending. In contrast, the capital financing requirement reflects the Authority’s underlying need to borrow for a capital purpose. A key indicator of prudence under the Prudential Code is: - “In order to ensure that over the medium term net borrowing will only be for a capital purpose, the local authority should ensure that net external borrowing does not, except in the short term, exceed the total of the capital financing requirement in the preceding year plus the estimates of any additional capital financing requirement for the current and next two financial years”. The S.151 Officer reports that the Authority has had no difficulty meeting this requirement during the course of this financial year and no difficulties are envisaged in future years. This takes into account current commitments, existing plans and the proposals contained in the Medium Term-Financial Plan. The increase in the Capital Financing Requirement over the forthcoming period reflects borrowing rather than leasing to finance capital asset acquisition and other capital expenditure.

Indicator 4 - Authorised Limit for External Debt

The table below shows the Authorised limit for External Debt for 2011/12 and subsequent two year period as approved by Members, compared to the actual level of borrowing as at 30 September 2011. Actual 2011/12 Actual 2012/13 2013/14

as at

31/03/11 Estimate as at

30/09/11 Estimate Estimate £k £k £k £k £k Borrowing 17,614 35,700 20,763 38,400 40,500 Other Long Term Liabilities - - - - -

17,614 35,700 20,763 38,400 40,500

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The Authorised Limit reflects the Authority’s projected long and short term borrowing requirements, together with any other long-term liabilities it may have. The figures are based on the estimate of most likely, prudent but not worst case scenario, with sufficient headroom over and above this to allow for operational management of, for example unusual cash movements. The S.151 Officer confirms that the Authorised Limit has not been approached at any point during the first half of the year, nor is it likely to during the remaining six months of 2011/12. Indicator 5 - Operational Boundary for External Debt

The proposed operational boundary for external debt is based on the same estimates as the authorised limit but reflects directly the S.151 Officer’s estimate of the most likely, prudent but not worst case scenario, without the additional headroom included within the authorised limit to allow for example for unusual cash movements, and equates to the maximum of external debt projected by this estimate. The operational boundary represents a key management tool for in year monitoring by the S.151 Officer. Actual 2011/12 Actual 2012/13 2013/14

As at

31/03/11 Estimate As at

30/09/11 Estimate Estimate £k £k £k £k £k Borrowing 17,614 31,700 20,763 34,400 36,500 Other Long Term Liabilities - - - - -

17,614 31,700 20,763 34,400 36,500

The S.151 Officer confirms that borrowing in the year has not exceeded the operational boundary at any point within the year to date and is not expected to do so over the course of the next period based on information currently available.

Indicator 6 - Incremental Impact of Capital Investment decisions

In considering its programme for capital investment, the Authority must have regard to: -

Affordability – e.g. implications for Council Tax Prudence and sustainability – e.g. implications for external borrowing Value for money – e.g. option appraisal Stewardship of assets – e.g. asset management planning Service objectives – e.g. strategic planning for the Authority Practicality – e.g. achievability of the forward plan A key measure of affordability is the incremental impact on the Council Tax, which in practice will depend on individual financing decisions taken in circumstances which pertain at the time. The estimates of the incremental impact of capital investment decisions approved as part of the Medium-Term Financial Plan are as follows: -

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2011/12 2012/13 2013/14 Estimate Estimate Estimate £ £ £ Impact for Band D Council Tax - 1.48 3.03

b) Treasury Management

Indicator 7 – Fixed and Variable Rate Exposure This indicator seeks to ensure that the Authority limits its exposure to the risk of interest rate changes and the consequent impact on the investment income and interest payments on loans, by restricting the proportion of variable rate borrowing.

Actual as at

30/09/11

2011/12 2012/13 2013/14

% % % % Actual as at 30/09/11 100 - - - Fixed Rate – Upper Limit - 100 100 100 Fixed Rate – Lower Limit - 75 75 75 Variable Rate – Upper Limit - 25 25 25 Variable Rate – Lower Limit - 0 0 0

The Authority’s current loan portfolio as at 30/09/11 comprises solely of PWLB loans with a fixed rate of interest. Indicator 8 – Upper and Lower Limits for the maturity structure of borrowings This indicator seeks to ensure the Authority controls its exposure to the risk of interest rate changes by limiting the proportion of debt maturing in any single period. Ordinarily debt is replaced on maturity and therefore it is important that the Authority is not forced to replace a large proportion of loans at a time of relatively high interest rates. “The Authority will set for the forthcoming financial year both upper and lower limits with respect to the maturity structure of its borrowings. The prudential indicators will be referred to as the upper and lower limits respectively for the maturity structure of borrowing and shall be calculated as follows:

Amount of projected borrowing that is fixed rate maturing in each period expressed as a percentage of total projected borrowing that is fixed rate; Where the periods in question are:

Under 12 months

12 months and within 24 months

24 months and within 5 years

5 years and within 10 years

10 years and above”

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Actual as at 30/09/11

Upper Limit Lower Limit

% % % Under 12 Months 6.13 10 0 12 months and within 24 months 5.33 10 0 24 months and within 5 years 17.65 25 0 5 years and within 10 years 18.15 60 0 10 years and above 52.74 80 0

The S.151 Officer confirms that the maturity structure of external debt as at 30/09/11 is within the upper and lower limits approved by the Authority.

Indicator 9 – Upper limit for maturity structure of investments Under the Prudential Regime Authorities are free to invest for periods of greater than one year; however this indicator sets restrictions on the proportion of investments committed for longer periods in order to limit the risks associated with being unable to meet unexpected cash flows and/or being able to take advantage of future increases in interest rates. The Authority has agreed that liquidity and certainty are particularly desirable given the current economic climate; hence any surplus funds would not be invested for periods longer than 364 days. The S.151 Officer confirms that treasury management activity during the first half of 2011/12 has complied with this requirement.

Actual as at 30/09/11

% Upper Limit

% Under 12 Months 100 100 Over 12 months 0 0

Agenda Item No.


Report by the Director of Finance/ S.151 Officer

11.1

ESTATES CAPITAL PROGRAMME 2012/13 ONWARDS

SUMMARY 1. This report sets out for consideration the Authority’s Estates Capital Programme for

2012/13 onwards. The report was considered at the Policy and Executive Committee on 18 November 2011 and recommended to the Fire Authority for approval. RECOMMENDATIONS

2. That Members approve the Estates Capital Programme for 2012/13 onwards

contained within this report. ASSET MANAGEMENT STRATEGY (AMS) AND ASSET MANAGEMENT PLANS

(AMPs) 3. The Authority’s Asset Management Strategy (AMS) was approved by the Fire

Authority on 25 March 2011. The AMS incorporates all of the Service’s assets and is underpinned by the associated annual Asset Management Plans (AMPs) for each category of asset. The development of an over-arching AMS aims to ensure the Authority uses its assets in the most effective manner in line with the Strategic Plan for 2011-14 and the Integrated Risk Management Plan (IRMP) for 2011/12.

4. The AMS and AMPs are updated through an annual planning process which takes

into account needs identified through the Strategic Planning process and other external legislative requirements.

5. The newly formed Infrastructure Board provides a forum for cross-directorate

consideration of Estates issues and thus allows for more effective prioritisation of resources; the draft Capital Programme for 2012/13 onwards has been developed through the Board framework.

6. Subject to Member approval, the proposals contained within this report for the

Estates Capital Programme will be incorporated into the AMS and AMPs for 2012/13. ESTATES CAPITAL PROGRAMME 2012/13 ONWARDS 7. The main proposal contained within this report is to focus the Estates Capital

Programme for 2012/13 and 2013/14 on the replacement of the Clough Road Fire Station in Hull with a new-build station on the same site.

8. There are a number of significant drivers that underpin this proposed course of action

as follows:-

Under investment in the Hull Community Protection Unit (CPU) Estate

The work to develop a multi-agency ‘Blue Lights’ facility in Hull, which began in July 2008, effectively led to a moratorium on major Estates spending in Hull whilst the partners involved in the initiative worked up the proposal in detail.

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Members will be aware that recently the initiative has been drawn to a close and will not now progress. As a result of this the Infrastructure Board and CMT have undertaken a detailed examination of the whole Estate within the Hull CPU area to assess priority need. Meanwhile, over the period 2006/07 to date the Authority has undertaken significant ‘catch-up’ investment in a large proportion of its Estate outside of the Hull CPU area. Namely:-

Bridlington, Peaks Lane Grimsby, Market Weighton, Crowle, Scunthorpe, Winterton, Kirton in Lindsey, Goole, Beverley and Headquarters. Works completing during 2011/12 are taking place at Snaith, Pocklington, Waltham, Hornsea, Preston, Patrington and Withernsea with Epworth also now as a result of the June 2011 fire.

Condition surveys For Member information there are the following operational fire station sites within the Hull CPU area:-

Calvert Lane, East Hull, Bransholme, Clough Road and Central. Of the 5 Hull sites, Clough Road and Central have significant backlog maintenance issues as a result of many years of under investment. The Central site is currently subject to further discussion with Hull City Council. Tentative early discussions have taken place between the Chief Fire Officer and Chief Executive and the Chief Executive of Hull City Council to assess the possibility of land swap opportunities. A new build facility in which to house the Authority’s City Centre 1 pump presence would be seen as an ideal solution. Members will be kept up to date with this initiative as it develops which will also impact on the location for the provision of the Authority’s workshops function. Clough Road was constructed originally in 1959 and has outstanding backlog maintenance of £1.3m. Appendix 1 of this report shows some current pictures of the site and the poor state of repair. The working conditions at the facility are extremely poor with problems particularly relating to the fabric of the building, including concrete cancer of the external structure, deterioration of the roof, external asbestos paneling and issues with both mechanical and electrical services.

Key site Clough Road remains a key site for the Authority within the Hull CPU area and within the wider Humberside geographical area. The location provides easy access to the North of the City, the City Centre and in to the East Riding of Yorkshire if required. In light of this backdrop, the Infrastructure Board has met on several occasions and as part of its discussions considered a number of options for Clough Road. The preferred option is for a 3 bay new build fire station on the existing site with subsequent total clearance of the remainder of the site. This view has also been debated and ratified by the CMT at their 26 September and 7 November 2011 meetings.

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A draft schematic of the proposal is contained as Appendix 2 to this report. Subject to approval by the Fire Authority, the scheme design will be fine-tuned by a team working with the Hull CPU Manager. This will also take on board the views of staff currently working out of the Clough Road Station. The total estimated cost of the proposed scheme is as follows:-

£m Fees

0.43

Construction 3.20 Demolition/Site Clearance 0.07 IT Infrastructure 0.10 Fixtures and Fittings 0.15 3.95

FUNDING 9. Funding for the project is in place and has been identified as follows:-

£m General Estates Capital Allocation 2012/13 and 2013/14 (this is already funded within the Authority’s MTFP)

1

Capital Grant 2011/12 (the Authority will apply this capital grant in 2011/12 which therefore releases an equivalent amount of Prudential Borrowing for the Clough Road Scheme)

1.3

Application of the Capital Receipts Reserve

0.5

Capital Grant 2012/13 (may be a bidding process for 2012/13 but assume an amount of half of the 2011/12 level is allocated outside of bidding)

0.65

Property Maintenance Revenue Reserve 0.5

TOTAL FUNDING 3.95 10. The final detail of the funding for Clough Road can be agreed as part of the 2012/13

Budget and MTFP report in February 2012 once final details on the 2012/13 Capital Grant allocations have been made known by CLG.

11. The progression of the Clough Road rebuild is critical to sustaining the Fire Station

infrastructure in the Hull CPU area for all of the reasons outlined in the report above. 12. In addition to this scheme, the Authority also within its current funded MTFP has £1m

set aside for capital works to facilitate residential self-rostering proposals as agreed on 4 March 2011 as part of the 2011-14 Strategic Plan and 2011/12 IRMP.

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13. So the Estates Capital Programme for 2012/13 and 2013/14 would be as follows:- Table 1 – Proposed Estates Capital Schemes for 2012/13 and 2013/14

Scheme Criteria for inclusion (Legislative or Service Need)

Amount (£m)

2012/13

Legislative

Service Need

Clough Road Station – rebuild

Workplace (Health and

Safety at Work) Regs. 1992

To ensure appropriate

working conditions

3.95

Residential self-rostering

IRMP 2011/12 - To facilitate new ways of working

1

Total for 2012/13 4.95 2013/14

(Allocation brought forward to 2012/13 as part of the Clough Road rebuild)

Total for 2013/14 0 14. Members can take assurance from the fact that in addition to the Estates Capital

Programme expenditure there is also an Estates revenue allocation within the revenue budget of £772k in each of the years 2012/13 and 2013/14.

15. This money is used to undertake ongoing repairs, servicing and maintenance on the

wider Estate to ensure that facilities remain fit for purpose. BROUGH FIRE STATION 16. Members will be aware of the recent announcements by BAe concerning the future of

the workforce on the Brough site. 17. The announcement also has a significant impact on the future of the Authority’s

current fire station on the Brough site. Alternative options for the premises are currently under consideration and will be brought back to Members in due course.


18. The proposals outlined within the report are key enablers, essential to supporting frontline service delivery through the provision of fit for purpose Estates facilities.


19. The proposals outlined in the report are designed to ensure that the Fire Authority achieves a maximum return on the finances that it invests in its Estates assets. The programme outlined for 2012/13 and 2013/14 is contained within and funded from the resources available to the Authority for the period. The rebuild of Clough Road Fire Station should also lower the revenue running costs of the site by circa £20k per annum as a result of lower repairs and maintenance, electricity and gas costs.

66

LEGAL IMPLICATIONS

20. The requirement to maintain statutory compliance in a number of areas is a key driver that shapes the development of the Estates Capital Programme. EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS

21. Dignity at work issues are an integral part of the planning and design process for Estates-based capital schemes to ensure the provision of adequate and appropriate facilities for all staff within the workplace. CORPORATE RISK MANAGEMENT IMPLICATIONS

22. Risk management in general is fundamental to the process that has been used to identify schemes for inclusion in the Estates Capital Programme for 2012/13 and 2013/14. The need to mitigate risks to the Authority through compliance with legislation and health and safety requirements is a key determinant of the proposals included in the report for approval.

23. The Estates Capital Programme has been designed to ensure that investment in

assets is aligned to key strategic priorities and structured asset management processes support the most efficient use of the Authority’s resources.

HEALTH AND SAFETY IMPLICATIONS 24. The Authority takes its responsibility to provide a safe workplace very seriously and

the proposed Estates Capital Programme is designed to reflect this driver. COMMUNICATIONS ACTIONS ARISING 25. No direct issues arising. DETAILS OF CONSULTATION 26. The proposals contained within this report have been drawn up in consultation with

key internal stakeholders via the Infrastructure Board and the Corporate Management Team. As part of the Infrastructure Board deliberations, the 4 CPU Managers were in complete agreement that the most pressing priority for Estates investment was the Clough Road site which acknowledges the investment in the Estate that has taken place outside of Hull CPU since 2006/07.

BACKGROUND PAPERS

27. Infrastructure Board Action log 15 September 2011, CMT minutes 26 September 2011.

RECOMMENDATIONS RESTATED 28. That Members approve the Estates Capital Programme for 2012/13 onwards

contained within this report.

K WILSON

Officer Contact: Kevin Wilson 01482 567183 Director of Finance/S.151 Officer

Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull

KW/SJ 24 November 2011

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sjohnson

Stamp

71

sjohnson

Stamp

Agenda Item No.



11.2

VEHICLE REPLACEMENT PROGRAMME 2012/13 ONWARDS SUMMARY

1. The current Vehicle Replacement Programme for 2011/12 to 2015/16 was considered

and approved by the Fire Authority on 14 December 2010. Budgetary provision in line with the proposals agreed was incorporated within the Authority’s Medium-Term Financial Plan for 2010/11 to 2012/13 agreed by the Fire Authority on 25 March 2011.

2. This report updates the programme for the additional year 2016/17 and also outlines

the recent changes made to the programme for 2012/13 and 2013/14. The report was considered at the Policy and Executive Committee on 18 November 2011 and recommended to the Fire Authority for approval.

RECOMMENDATIONS

3. That Members approve the Vehicle Replacement Programme for 2012/13 onwards as set out in the report in Table 1 and Appendices A and B. VEHICLE REPLACEMENT PROGRAMME 2012/13 ONWARDS 4. The two elements of the capital programme covered by this report include:

The heavy vehicle and associated equipment replacement programme and;

The light vehicle replacement programme. Heavy Vehicles and Associated Equipment

5. The updated heavy vehicle and associated equipment programme is shown in Appendix A of this report. There are no proposed amendments to the Programme for 2012/13 which shows the acquisition of 4 Fire Engines and an Aerial appliance.

Light vehicles

6. The light vehicles replacement programme is shown in Appendix B of this report. The Appendix contains details of the cars, vans and other light vehicles required to meet the Authority’s service delivery needs. The most significant element of the programme is officer pool cars, for which replacement is undertaken on a five-yearly rolling cycle. 7. The Appendix reflects the following amendments to the programme:

Reduction of 6 medium cars as a result of the reductions in FDS officer numbers implemented as a part of the 2011/12 IRMP;

Upgrade 3 medium cars to 4x4 vehicles to improve operational resilience; Slippage of backup command unit to 12/13, pending the evaluation of

operational requirements for the primary unit. 8. The financial impact of the proposals contained within Appendices A and B is summarised in Table 1 below.

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Table 1 – Summary financial impact of Appendices A and B

Category of expenditure

2012/13 £

2013/14 £

2014/15 £

2015/16 £

2016/17 £

Heavy Vehicles and Associated Equipment (Appendix A)

1,662,050 1,069,800 1,337,250 1,579,650 1,529,860

Light Vehicles (Appendix B)

188,200 291,200 265,200 375,400 235,900

Total 1,850,250 1,361,000 1,602,450 1,955,050 1,765,760Total agreed in MTFP March 2011

1,886,800 1,339,800 n/a n/a n/a

Net change + Additional -Reduction

-36,550 21,200 n/a n/a n/a

9. Table 1 shows the Net Change in the Vehicles and Operational Equipment capital

programme over 2012/13 and 2013/14. Appendix C shows the make-up of the Net change, with details of changes to the programme and amendments as a result of changes in price.

10. Work is ongoing to research the most efficient and effective vehicle solutions for the

Service. One of the priorities of the newly-formed Operational Assurance Board is to develop a long-term Vehicles Strategy and this may result in changes to the approved Programme going forward for 2013/14 onwards.


11. The report and the proposals outlined within it are designed to support the Authority’s three key strategic priorities by providing operational staff with fit-for-purpose resources to enable them to effectively perform their roles.


12. The financial impact of the proposals is detailed in Table 1. Subject to approval of the recommendations contained within the report, the net financial effect of the proposals will be incorporated into the Authority’s revenue and capital plans for 2012/13 onwards that will be presented for consideration and final approval at the Fire Authority in February 2012.

13. The most appropriate method of financing the assets set out in this report will be determined on the basis of value for money and risk to the Authority. This will be undertaken prior to the start of the financial year in liaison with the Authority’s Treasury Management advisors.

LEGAL IMPLICATIONS

14. Up to date, modern and fit for purpose vehicles and equipment are essential in order for the Authority to meet its legal responsibilities to both employees and its communities.


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15. No direct issues arise from this report. CORPORATE RISK MANAGEMENT IMPLICATIONS

16. The provision of equipment and vehicles is fundamental to service delivery within the Authority. As such it is essential that an ongoing programme of replacement is in place to ensure that assets are ‘fit for purpose’ and to mitigate against the risks of financial resources not being synchronised with service planning. 17. In determining an appropriate programme of replacement, due consideration has been

given to expected asset lives, planned operational requirements and financial implications. This aspect of service planning is now undertaken by the Service’s Operational Assurance Board to ensure involvement from all key internal stakeholders.

HEALTH AND SAFETY IMPLICATIONS 18. Health and Safety considerations and responsibilities are paramount and to that end

the Authority aims to provide suitable and sufficient equipment and vehicles to ensure effective service delivery.

COMMUNICATIONS ACTIONS ARISING 19. No direct issues arising. DETAILS OF CONSULTATION 20. This report has been developed through the Operational Assurance Board framework

to ensure key stakeholders across the organisation have appropriate input into the development of the Programme.

BACKGROUND PAPERS 21. Vehicle Replacement Programme 2012/13 onwards; Service and Finance Planning process 2012/13 onwards. RECOMMENDATION RESTATED 22. That Members approve the Vehicle Replacement Programme for 2012/13 onwards as set out in the report in Table 1 and Appendices A and B.

K WILSON

Officer Contact: Kevin Wilson 01482 567183 Director of Finance/S.151 Officer Humberside Fire & Rescue Service Headquarters Summergroves Way Kingston upon Hull KW/AJ/SJ 22 November 2011

75

Appendix A

HEAVY VEHICLE REPLACEMENT PROGRAMME FOR 2012/13 TO 2016/17

Unit Cost Maximum Number in Fleet 12/13 13/14 14/15 15/16 16/17 £ Life at Nov 2011

WATER TENDERS/RESCUE TENDERS18 TONNE 221,450 15 58 4 4 5 4 5 12 TONNE MEDIUM COMPACT 185,400 15 2 COMPACT 10 TONNE 163,770 15 2

OPERATIONAL EQUIPMENT FOR APPLIANCES 46,000 15 49 4 4 5 4 5

TURNTABLE LADDER 509,850 20 1 - AERIAL RESCUE PLATFORM 665,380 15 1 HYDRAULIC PLATFORM (AERIAL) 509,850 20 2 1ALP (AERIAL) 592,250 20 1 1 RESCUE & SUPPORT UNIT 270,890 20 2 CONTROL UNIT 192,610 20 1 EQUIPMENT SUPPORT UNIT 146,260 20 2 WATER SUPPORT UNIT 192,610 20 1 1DRIVER TRAINING 90,640 20 2 MOBILE WORKSHOP 45,320 10 2 GP LORRY/BACK UP ESU 146,260 20 1

Total 1,662,050 1,069,800 1,337,250 1,579,650 1,529,860

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Appendix B

LIGHT VEHICLE REPLACEMENT PROGRAMME 2012/13 TO 2016/17

Unit Cost Number Max Life 12/13 13/14 14/15 15/16 16/17 £ in Fleet

HEAVY CAR 21,000 3 5 1 1 0 1 0MEDIUM CAR 11,500 36 5 0 11 14 8 3MEDIUM 4x4 14,000 4 5 3 0 0 0 4LIGHT CARS 9,000 24 5 2 9 3 7 0LIGHT VANS 8,500 11 5 0 5 0 0 6VANS - MULTI USE 8,700 12 5 0 1 0 11 0MEDIUM VAN 11,500 2 7 0 1 0 1 0MEDIUM VANS WITH FITTINGS 15,000 6 7 1 0 3 0 2PICK UPS 4X4 16,100 11 7 2 0 2 2 4HEAVY VANS (Transit/Sprinter/Relay etc) 30,000 6 10 2 0 0 0 0PERSONNEL CARRIER (8 passenger) 20,000 3 7 0 0 0 3 0

Total 118 188,200 291,200 265,200 375,400 235,900

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Appendix C

Vehicles and Operational Equipment 2012/13 - 2013/14Breakdown of changes to the Capital Programme

2012/13 2013/14(£) (£)

Reduction of 6 medium cars (69,000)(Due to approved reduction in FDS officers)

Upgrade 3 FDS cars to 4X4 vehicles 7,500

Slippage of backup Command Unit from 2011/12 30,000

Price change (decrease)/increase 14,950 21,200

Allocation for Small Fires Unit removed (20,000)(Alternative funding agreed)

Net change (36,550) 21,200

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Agenda Item No.



IT CAPITAL PROGRAMME 2012/13 ONWARDS SUMMARY 1. This report sets out for consideration the IT based schemes to be included in the Fire

Authority’s capital programme for 2012/13 onwards. The schemes included take into account developing service needs around flexible access to systems and information, work to align with recognised best practice in IT Service Management using the ITIL Framework and the introduction of an Information Security Management System to achieve ISO27001 accreditation. The contents of the IT Capital Programme 2012/13 onwards was considered by the Policy and Executive Committee on 18 November 2011 and recommended to the Fire Authority for approval.

RECOMMENDATIONS 2. (a) That Members approve the schemes included in Table 1 of the report as the

basis for the IT capital programme for 2012/13 and 2013/14. (b) That Members approve an additional £70k of capital funding in 2011/12 for

the HR/RMS project.

ASSET MANAGEMENT PLAN 3. The IT Asset Management Plan (AMP) is updated through an annual planning

process which takes into account service needs identified through the new Infrastructure Board framework, previously planned and agreed projects, IT best practice and work around Information Security. The proposals agreed for IT for 2012/13 will be incorporated into the AMP and the over-arching Asset Management Strategy for 2012/13.

IT – CAPITAL PROGAMME 2012/13 ONWARDS

4. The financial plans agreed by the Fire Authority on 25 March 2011 outlined allocations of £320k for each of the financial years 2012/13 and 2013/14 for IT related capital expenditure.

5. Based on the available resources outlined above, Table 1 below details the schemes

proposed for inclusion in the capital programme for the next two years.

Table 1 – Proposed IT Capital Schemes for 2012/13 and 2013/14

2012/13 Schemes Description Amount (£k)

Replacement Programme (including Microsoft Enterprise Agreement)

To complete the move to the agreed 4 year replacement policy and include initiatives to minimise the impact of IT on the environment

215

Additional Equipment To continue to manage changing and increasing demand of roles requiring IT access

30

11.3

83

Mobile and Flexible Working Continue enhancing staff ability to access data and systems on an anytime, anywhere basis

20

Replacement of mobile handsets for specified uses

To replace handsets at end of contract and ensure high security specifications

20

Development of Voice and Data Network

Additional capacity for the data network and complete phase 3 of the telephone system development

20

Information Systems To enhance existing systems to increase integrations where this is technically possible

15

Total 320

2013/14 Schemes Description Amount

(£k)

Replacement Programme (including Microsoft Enterprise Agreement)

To continue the move to the agreed 4 year replacement policy and include initiatives to minimise the impact of IT on the environment

235

Additional Equipment To continue to manage changing and increasing demand of roles requiring IT access

30

Mobile and Flexible Working Continue enhancing staff ability to access data and systems on an anytime, anywhere basis

20

Development of Voice and Data Network

Additional capacity for the data network and complete phase 3 of the telephone system development

20

Information Systems To enhance existing systems to increase integrations where this is technically possible

15

Total 320

6. The Capital Programme will address key issues aimed at achieving best practice in

IT service management to the ITIL framework, support the delivery of the Service’s priorities and objectives as described in the Strategic Plan 2011-14 and increase efficiency going forward.

7. Funding is included to continue the 4-year replacement strategy for IT equipment to

ensure end users have up to date technology. This also now includes the creation of a structured replacement programme for operational communication equipment outside the Airwave radio scheme, e.g. fire ground radios.

8. Allocations have been included to provide additional and appropriate equipment

based on the changing roles within the Service which need access to IT to effectively operate and better use IT to increase efficient working.

9. A scheme is included to improve business continuity and security by developing

highly resilient infrastructure, e.g. server replacement. 10. The allocation to further upgrade the data network will allow for network speeds to be

maintained, additional telephony convergence and capacity to be realised and the ability to integrate our systems better with partners.

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11. The East Coast and Hertfordshire Consortium Control bid to improve resilience and efficiency following the closure of the Fire Control Project is subject to a bidding process through DCLG and is not contained within this programme. In the event that any part of the bid is unsuccessful, it may be necessary to revise the overall IT Capital Programme for 2012/13 onwards. More information will be known on this aspect in the early part of 2012.

12. Members will also be aware that a separate piece of work is currently underway to

assess the requirements for the Authority’s Wide Area Network (WAN) going forward.

13. The initial assessment of the WAN requirements will be completed over the next 2-3 months and any upgrade proposed may have significant funding implications. The outcome and proposed funding to meet any WAN changes will therefore be reported back through Members as part of the budget setting cycle for 2012/13 onwards.

14. In addition to the East Coast Consortium project and the WAN initiative, the Authority

has been developing proposals for a replacement Human Resources (HR) and Resource Management System (RMS).

15. The tender process for the HR/RMS is nearing completion. The costs are likely to be slightly higher than originally anticipated and therefore £70k of additional capital funding will be allocated to the existing £150k allocation in 2011/12.

16. The ongoing revenue impacts of the project are likely to be circa £100k in 2012/13 and £40k per year from 2013/14 onwards.

17. The HR/RMS project is an integral part of the major IT infrastructure projects underway at the moment and fits firmly into the East Coast Consortium project and the WAN initiative.


18. The report and the proposals outlined within it are key enablers to support front-line

staff with a fit for purpose IT infrastructure, ensure that information is stored and handled correctly and that business continuity is maintained in the event of an emergency. FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATIONS

19. The proposals outlined in the report are designed to ensure that the Fire Authority

achieves a maximum return on the finance it invests in its IT assets. The schemes outlined will enable staff across the organisation to work more efficiently towards the Authority’s key strategic objectives. The schemes outlined for 2012/13 and 2013/14 are contained within, and funded from, the capital resources available to the Authority for that period. LEGAL IMPLICATIONS

20. The requirements to maintain statutory compliance relating to the Data Protection

Act, as well as the need for the Service to maintain effective business continuity arrangements to deliver its statutory duties are key drivers for the IT capital programme.

EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS 21. The provision of some schemes will enable more flexible working arrangements

which make the Service a more favourable employer to a more diverse workforce.

85

86

CORPORATE RISK MANAGEMENT IMPLICATIONS 22. The improved arrangements relating to business continuity and the work around

Information Security will mitigate against a number of identified risks through the Authority’s risk management framework. HEALTH AND SAFETY IMPLICATIONS

23. No direct issues arising.

COMMUNICATION ACTIONS ARISING

24. The IT Asset Management Plan will be communicated to staff internally.

DETAILS OF CONSULTATION 25. The proposals within this report have been developed through the Infrastructure

Board, thus ensuring cross-directorate input into the planning process and therefore better prioritisation of resources.

BACKGROUND PAPERS AVAILABLE FOR ACCESS 26. None.

RECOMMENDATIONS RESTATED 27. (a) That Members approve the schemes included in Table 1 of the report as the

basis for the IT capital programme for 2012/13 and 2013/14. (b) That Members approve an additional £70k of capital funding in 2011/12 for

the HR/RMS project.

K WILSON Officer Contact: Kevin Wilson 01482 567433 Director of Finance/S.151 Officer Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull KW/AJ/SJ 2 December 2011

Agenda Item No.


Report by Director of Finance/S.151 Officer

12

FINANCIAL PLANNING 2012/13 ONWARDS

SUMMARY 1. This report considers the Authority’s Revenue Budget for the period 2012/13

onwards.

2. The report also discusses some of the key issues likely to impact on the Authority’s financial position over the short-to-medium term such as the decision on the 2012/13 Council Tax, the External Grant Settlement from Government for 2013/14 and 2014/15 and the delivery of the Strategic Plan 2011-14 and Integrated Risk Management Plan 2011/12 efficiencies agreed on 4 March 2011.

RECOMMENDATIONS

3. That Members note the report and take assurance from the Authority’s proactive

approach to its medium-term financial planning. 2012/13 ONWARDS 4. Appendix 1 of this report sets out the latest position on the Authority’s Revenue

Budget for 2012/13 onwards. 5. The key assumptions that have been incorporated into the budget are included in

Appendix 2 with the most pertinent shown below in Table 1. Table 1 Assumptions applied to the Medium-Term Financial Plan 2012/13 to 2014/15

2012/13 2013/14 2014/15

Pay Awards 2.5% 2.5% 2.5% Council Tax* 0% 2% 2% External Grant** As notified in

Jan 2011 -5% -5%

Non-pay Inflation - Utilities/Rates/Fuel 5% 5% 5% - Insurance/Income 2.5% 2.5% 2.5% - Other 0% 0% 0%

* As a planning assumption for 2012/13 a freeze on the precept/council tax

has been assumed in return for the 3% ‘compensation grant’ from Government. More details are shown on this below and clearly the final council tax decision for 2012/13 will be taken by Members at the February 2012 Fire Authority.

** The External Grant assumptions are in line with the ‘middle’ assumption

that Members considered in the report to the September 2011 cycle of meetings.

87

6. Members will see from Appendix 1 that deficits are projected for 2013/14 and 2014/15. The Authority will however be able to set a balanced budget for 2012/13 but there are a number of factors worthy of further consideration that will have a bearing on the Authority’s finances in the short-to-medium term as follows:-

2012/13 Council Tax Decision 7. The Government on 3 October 2011 and 14 November 2011 announced the details

of a voluntary council tax freeze scheme for 2012/13. 8. In return for holding the 2012/13 council tax at the level of the basic amount of

council tax for 2011/12, Fire and Police Authorities will receive a one-off grant equal to a 3% increase in the Authority’s council tax.

9. The difference (and it is a significant one) between the 2012/13 scheme and that

offered last year for 2011/12 is that the grant compensation for 2012/13 is for one year only. Compensation for participating in the 2011/12 scheme will be paid to the Authority in each of the years 2011/12 to 2014/15 inclusive.

10. In financial terms a quick comparison for Humberside Fire Authority would be as

follows:-

SCENARIO A – 2012/13 FREEZE (£m) 2012/13

Freeze (£m) 2013/14 2% increase

(£m) 2014/15 2% increase

Total Council Tax 22.4 22.848 23.305 Freeze Grant @ 3% 0.672 n/a n/a

Total 23.072 22.848 23.305

SCENARIO B – 2012/13 2% INCREASE (£m) 2012/13

2% increase (£m) 2013/14 2% increase

(£m) 2014/15 2% increase

Total Council Tax 22.848 23.305 23.771

Total 22.848 23.305 23.771

3 year totals of Scenario A = £69.225m Difference £699k over Council Tax income Scenario B = £69.924m the 3 years 11. Clearly, there is a short-term benefit from the freeze in 2012/13 (3% grant versus a

2% actual council tax increase) but this is overtaken in subsequent years as the increased base from a 2012/13 increase yields benefits in years 2013/14, 2014/15 and beyond.

12. That said, the Authority has to weigh up how council tax increases will be viewed by

Government given the ‘offer’ available and therefore also the subsequent shape of any capping regime that may be put in place for 2012/13.

13. At the moment the planning assumption is that the Authority will accept the freeze

offer for 2012/13 but it is again reiterated that the final decision will be for Members to agree at the February Fire Authority meeting.

External Grant (Years 2013/14 and 2014/15) 14. Members have received updates previously on the possible scenarios for the

2013/14 and 2014/15 Formula Grant settlement from Government. The September Fire Authority paper outlined three broad scenarios of ‘Upper’, ‘Middle’ and ‘Lower’. This paper concentrates on the ‘Middle’ scenario for simplicity but Members must not lose sight of the fact that the eventual outcome may vary significantly. In order to aid

88

understanding, it’s worth remembering that any change in External Grant up or down by 1% would be circa £240k.

15. In addition to potential significant reductions in External Grant, there are a number of

other possible changes to the funding allocation mechanism. Principally, these are:

Review of the Fire and Rescue Service funding allocation mechanism; The localisation of Business Rates; The localisation of Council Tax Benefit; Community Budget pilots commencing and concluding 2012.

Strategic Plan/Integrated Risk Management Plan Efficiencies 16. A range of measures aimed at improving the Authority’s efficiency and value for

money were agreed at the 4 March 2011 Special Fire Authority meeting. The IRMP efficiencies implemented so far will total £2.7m once the full benefits have been realised. The current Medium-Term Financial Plan (MTFP) in Appendix 1 sees these efficiencies achieved as follows:-

£m

2012/13 1.2

2013/14 0.4

2014/15

0.4

Total 2.0

17. Clearly, the rate of the achievement of the efficiencies (£2m by close of 2014/15) is

constrained in the short-term by the Authority’s retirement profile and level of natural wastage.

18. A further £1.6m of efficiencies relating to the introduction of Residential Self-

Rostering were agreed but have not yet been implemented and the details of any such proposal will be subject to Member agreement.

19. The Authority has consistently stated that a prudent position would be to develop a

voluntary/compulsory redundancy scheme in 2012 and the speed and degree to which it might then be used will in a large part be determined by the External Grant Settlement due late 2012.

20. The final report in the 2012/13 budget setting process will be brought back to

January/February 2012 round of meetings. The final report will also cover the issue of setting the precept/council tax for 2012/13.

STRATEGIC PLAN COMPATIBILITY 21. The Authority’s Medium-Term Financial Plan dovetails with the 2011-14 Strategic

Plan and 2011/12 IRMP. FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATIONS

22. The position for the medium-term will be kept under continuous review with regular

reports from the Authority’s S.151 Officer. LEGAL IMPLICATIONS

23. Statutorily the Authority must set a balanced budget. Part of this process also

requires the S.151 Officer to comment on the ‘robustness of the estimates’, ‘the adequacy of reserves’ and the ‘in-year budget monitoring arrangements’.

89


24. There are a number of workstreams under the Strategic Plan and IRMP, together

with trial structures in place, for example in respect to technical fire safety. Some have resulted in changes to the establishment, i.e. reduction in posts in respect to both operational and corporate support staffing (as previously reported to Members). Thus far reliance has been upon natural retirements and removing of vacant posts. With further workstreams underway aimed at transformation and the likely impact upon staffing, then there will be a need to formally consult in 2012. An early release scheme (early retirement and voluntary redundancy) will be developed and consulted upon during Spring/Summer 2012, in tandem with criteria etc., around compulsory redundancy.

25. Members should note that redundancy is a last resort. However, given the likely

financial challenges in years 3 and 4, then it is necessary to have a scheme in place. It is hoped that the anticipated workforce reduction can be achieved through retirement and voluntary release.

26. Members should also note that while the operational establishment has been

reduced following the approval of certain parts of the 2011/12 IRMP, this has resulted in supernumerary staff (as opposed to any redundancies proposed). Members will also recall that the power to be able to offer voluntary redundancy to operational (grey book) members of staff is yet to be concluded, with regulation expected sometime in early 2012 which will permit such an invitation to be made.

27. Further more detailed reports will be submitted to the Authority during the Spring

cycle of meetings. A full EIA on all proposals will be undertaken.

CORPORATE RISK MANAGEMENT IMPLICATIONS 28. Setting a sustainable and prudent budget for the Authority is fundamental in

mitigating one of the key risks in the Strategic Risk Register. HEALTH AND SAFETY IMPLICATIONS

29. No direct issues arising.


30. Key messages on the Authority’s financial position that were outlined at the

September Fire Authority have been communicated to all staff.

DETAILS OF CONSULTATION 31. The key messages within this report have been discussed at the CMT as a backdrop

for future service planning.

BACKGROUND PAPERS AVAILABLE FOR ACCESS 32. Medium-Term Financial Plan 2011/12 to 2014/15. September Fire Authority report – ‘Financial Outlook for Humberside Fire Authority

2012/13 Onwards’.

RECOMMENDATIONS RESTATED 33. That Members note the report and take assurance from the Authority’s proactive

approach to its medium-term financial planning.

90

K WILSON

Officer Contact: Kevin Wilson 01482 567183 Director of Finance/S.151 Officer Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull KW/SJ 22 November 2011

91

Appendix 1

2012/13 2013/14 2014/15Budget

ProposalBudget

ProposalBudget

Proposal

£ £ £Community Fire Safety 5,889,146 6,047,378 6,218,741Fire Fighting & Rescue Operations 42,644,436 42,883,740 42,282,938Fire Service Emergency Planning - - - Management & Support Services - - - Corporate & Democratic Core

Democratic Representation & Management 181,764 183,133 184,514Corporate Management 104,945 105,693 106,398

Non Distributable IncomeCouncil Tax Freeze Grant (561,428) (561,428) (561,428)

(677,364)

Net Cost of Service 47,581,499 48,658,516 48,231,163

Interest Payable and Similar Charges 1,330,529 1,486,507 1,570,798Less - Interest Receivable (50,000) (50,000) (50,000)

Net Operating Expenditure 48,862,028 50,095,023 49,751,961

Depreciation and Impairment of Fixed Assets (3,560,392) (3,522,417) (3,327,738)

Minimum Revenue Provision 1,773,399 2,294,568 2,434,585Revenue Contributions to Capital Outlay - - -

Contribution to/(from) Earmarked Reserves - - - Contribution to/(from) General Reserve - - -

Budget Requirement (A) 47,075,035 48,867,174 48,858,808

Financed by :Formula Grant 25,550,758 24,273,220 23,059,559Collection Fund Surplus - - - Precept 22,457,102 22,906,244 23,364,369

Total Financing (B) 48,007,860 47,179,464 46,423,928

Surplus/(Deficit) (A-B) 932,825 (1,687,710) (2,434,880)

HUMBERSIDE FIRE AUTHORITYREVENUE ESTIMATES 2012/13

ESTIMATE SUMMARY

93

COMMUNITY FIRE SAFETYFORECAST FORECAST FORECAST

2012/13 2013/14 2014/15£ £ £

EXPENDITUREEmployees

Wholetime 1,884,570 1,931,682 1,979,972Retained 76,406 78,316 80,274Non-uniformed 2,037,947 2,088,895 2,141,639Indirect Employees 9,500 9,500 9,500

PremisesRepairs & Maintenance 550 550 550

TransportDirect Transport Costs 2,750 2,750 2,750Contract Hire & Operating Leases 4,600 4,600 4,600

Supplies & ServicesEquipment, Furniture & Materials 284,182 284,182 284,182Catering 1,200 1,200 1,200Printing, Stationery & General Office Expenses 366 366 366Communications & Computing 3,700 3,700 3,700Expenses 5,100 5,100 5,100Grants & Subscriptions 1,690 1,690 1,690Miscellaneous 9,650 9,650 9,650

Support ServicesManagement & Support Services 1,613,467 1,673,229 1,755,393

Capital Charges 16,157 16,155 3,898

Total Expenditure 5,951,835 6,111,565 6,284,464

INCOMEOther Grants & Contributions (2,750) (2,750) (2,750)Customer & Client Receipts

Fees & Charges (59,939) (61,437) (62,973)

Total Income (62,689) (64,187) (65,723)

Net Expenditure 5,889,146 6,047,378 6,218,741

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FIRE FIGHTING & RESCUE OPERATIONSFORECAST FORECAST FORECAST

2012/13 2013/14 2014/15£ £ £


Wholetime 22,102,234 22,049,651 21,318,558Retained 3,526,890 3,615,062 3,701,598Control 1,251,023 1,282,298 1,314,356Non-uniformed 122,667 125,734 128,877Indirect Employees 10,188 10,443 10,704

PremisesRepairs & Maintenance 340,522 340,522 340,522Energy Costs 357,266 375,130 392,912Rent, Rates & Water 505,717 531,003 557,101

TransportCar Allowances & Public Transport 17,195 17,195 17,195

Supplies & ServicesEquipment, Furniture & Materials 526,927 526,927 526,927Catering 1,400 1,400 1,400Clothing, Uniforms & Laundry 2,305 2,305 2,305Printing, Stationery & General Office Expenses 200 200 200Services 143,025 143,025 143,025Communications 592,500 592,500 592,500Expenses 12,000 12,000 12,000Grant & Subscriptions 500 500 500Miscellaneous 1,000 1,000 1,000

Support ServicesManagement & Support Services 10,899,082 11,055,759 11,059,902

Capital Charges 2,553,915 2,523,975 2,485,033


INCOMEGovernment Grants (118,000) (118,000) (118,000)Other Grants & Contributions (73,814) (73,814) (73,814)Customer & Client Receipts

Fees & Charges (30,751) (31,520) (32,308)Rents (99,555) (99,555) (99,555)

Total Income (322,120) (322,889) (323,677)

Net Expenditure 42,644,436 42,883,740 42,282,938

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MANAGEMENT & SUPPORT SERVICESFORECAST FORECAST FORECAST

2012/13 2013/14 2014/15£ £ £


Wholetime 2,133,140 2,186,470 2,241,130Non-uniformed 4,443,644 4,554,738 4,670,952Other Pension Costs 574,693 589,060 600,844Indirect Employees inc. Training 575,171 576,991 578,857Employee Related Insurances 182,890 187,463 192,149

PremisesRepairs & Maintenance 431,285 431,285 431,285Energy 81,615 85,696 89,981Rent, Rates & Water 197,804 202,994 208,376Other Premises Costs 95,659 95,659 95,659Premises Insurance 85,521 87,659 89,851

TransportDirect Transport Costs 873,834 901,734 931,034Contract Hire & Operating Leases 17,000 17,000 17,000Car Allowances & Public Transport 90,800 90,800 90,800Transport Insurance 153,047 156,873 160,795

Supplies & ServicesEquipment, Furniture & Materials 153,325 153,325 153,325Catering 65,817 65,817 65,817Clothing, Uniforms & Laundry 301,029 301,029 301,029Printing, Stationery & General Office Expenses 67,610 67,610 67,610Services 59,649 59,649 59,649Communications & Computing 796,035 796,035 796,035Expenses 60,248 60,248 60,248Grants & Subscriptions 22,595 22,595 22,595Miscellaneous 48,682 48,682 48,682

Support ServicesSupport Services 118,950 118,950 118,950

Capital Charges 990,320 982,287 838,807Contingency 100,000 100,000 100,000


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MANAGEMENT & SUPPORT SERVICES (Cont'd)FORECAST FORECAST FORECAST

2012/13 2013/14 2014/15£ £ £

INCOMECustomer & Client Receipts

Sales (42,473) (43,534) (44,624)Fees & Charges (1,967) (2,016) (2,066)Rents (103) (106) (109)Other Grants and Contributions (109,344) (112,078) (115,440)

Administration & Management rechargeAdministration & Management Recharge (12,566,476) (12,782,915) (12,869,221)

Total Income (12,720,363) (12,940,649) (13,031,460)

Net Expenditure - - -

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CORPORATE & DEMOCRATIC COREFORECAST FORECAST FORECAST

2012/13 2013/14 2014/15£ £ £

DEMOCRATIC REPRESENTATION & MANAGEMENT

EXPENDITURETransport

Public Transport 2,249 2,249 2,249Car Allowances 2,140 2,140 2,140

Supplies & ServicesMembers Allowances 128,429 129,714 131,011Travel & Subsistence 8,357 8,441 8,525Grants & Subscriptions 16,800 16,800 16,800

Departmental AdministrationDepartmental Administration 23,789 23,789 23,789

Total Expenditure 181,764 183,133 184,514

CORPORATE MANAGEMENT

EXPENDITURESupplies & Services

Audit Fees 69,807 70,505 71,210Support Services

Support Services 5,000 5,050 5,050

Departmental AdministrationDepartmental Administration 30,138 30,138 30,138

Total Expenditure 104,945 105,693 106,398

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HUMBERSIDE FIRE & RESCUE SERVICEESTIMATES 2012/13

Assumption used on compiling the Budgets

1) Pay inflation at : Uniformed Staff @ 2.5% from 1/07/12 : Non uniformed Staff @ 2.5% from 01/04/12 : Senior Officers @ 2.5% from 01/01/12 plus another 2.5% 01/01/13

2) General inflation utilities, fuel and rates only, @ 5.0%

Insurances and Income @ 2.5%All Other lines at 0%

3) Capital Charges are based on the draft Capital Programme consiered at the Policy and Executive Committee on 18 November 2011 and the Fire Authority on 13 December 2011.

4) PWLB rate used 5.00%long term loans outstanding at 31 March 2011 - £18.763m 31 March 2012 - £23.715m (Reflecting 11/12 Capital Programme) 31 March 2013 - £26.593m 31 March 2014 - £29.280m 31 March 2015 - £29.280m

5) Uniformed pay budget based on establishment, per HR at 01/10/11

6) Non uniformed pay based on establishment, per HR at 01/10/11

7) Contingency breakdown : 2012/13 Workshops £50k Other £50k

2013/14 Workshops £50k Other £50k

2014/15 Workshops £50k Other £50k

8) No additional New Burdens grant for 2012/13 onwards.

9) Precept increase of 2% from 2013/14.

10) To receive a 1 year council tax grant of 3% for 2012/13.

11) No increase in Band D Properties or collection fund surplus is included in the budget at this stage as confirmation from the 4 Unitary Authorities will not be received until January 2012.

Budget Requirement 2011/12 48,390IRMP Implementation (1,200)Pay Inflation 762Vacancy Factor Reduction 137NI Contribution rate reduction (111)Control - Resilience Posts & New Burdens Funding (108)Non-pay Inflation 87Firelink 181FDS Reduction in line with 4 March 2011 decision (43)Additional Retained costs 163Employers' FFP contribution (500)Corporate Support savings agreed 27 September Fire Authority (166)Other 85Council Tax Grant (677)Interest Payable 114MRP 227General Reserve Contribution 67IT Infrastructure Costs (WAN) 350Repairs & Maintenance 250

Budget Requirement 2012/13 48,008

Appendix 2

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Agenda Item No.


Report by the Chief Fire Officer & Chief Executive

13.1

STRATEGIC PLAN 2011-14 OPPORTUNITIES FOR COLLABORATION

AND INCOME GENERATION

SUMMARY 1. At the September meeting of Humberside Fire Authority Members received a

recommendation following discussions between Humberside Fire and Rescue Service (HFRS), North Yorkshire Fire and Rescue Service (NYFRS) and South Yorkshire Fire and Rescue Service (SYFRS) about mergers or the sharing of senior managers.

2. Members approved the recommendation that HFRS will not merge with another Fire

and Rescue Service neither will it enter into arrangements to share Chief Fire Officers/Chief Executives or share management teams.

3. Approval to continue the preferred partnership approach with NYFRS was, however,

approved and the report updated Members on those arrangements. It also outlined the progress that had been made regarding a bid to secure funding to improve the efficiency and operational resilience of our Control Room.

4. Members will recall that the Strategic Plan 2011-14 approved in March 2011 gave

officers the mandate to explore opportunities for income generation. This report outlines the progress made so far and also seeks Members’ endorsement of a proposal to establish a delivery model and develop a viable income generation project(s).

RECOMMENDATIONS

5. That Members consider this report and endorse the proposal to establish a delivery

model and develop a viable income generation project(s).

BACKGROUND 6. On 27 September 2011 Humberside Fire Authority approved the following

recommendations:-

(i) Acknowledge that HFRS will not merge with another Fire and Rescue Service.

(ii) Agree that HFRS will not share a Chief Fire Officer/Chief Executive or

participate in a shared management team.

(iii) Approve the continuation of the preferred partnership approach with NYFRS and encourage collaborative working where that benefits the Authority and the community it serves.

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PREFERRED PARTNERSHIP 7. With regard to Recommendation (iii) CFO Hannigan has met twice with CFO

Hutchinson since September 2011 to discuss how best to progress the preferred partnership. At the first meeting it was agreed that immediate collaboration on preparing a joint bid for Control Room funding could not take place as NYFRS are currently out to tender for a mobilising system. That decision has led to the East Coast and Hertfordshire Control Room Consortium described later in this report.

8. Following a meeting of HFRS and NYFRS Operations Directors the CFOs have

agreed that there appears to be potential for worthwhile collaboration in a number of areas of activity, examples being:-

(i) Standard Operating Procedures

(ii) Duty System development and implementation

(iii) Gold/Silver Command Resilience.

9. This list is far from exhaustive and it is anticipated that other opportunities will be

identified as the relationship matures. The CFOs and Directors are scheduled to meet again on 19 December 2011 to agree a programme of work.

EAST COAST AND HERTFORDSHIRE CONTROL ROOM CONSORTIUM

10. At the Members’ Day on 14 October 2011, Members received a presentation

regarding the work to develop a joint funding bid between Humberside Fire & Rescue Service, Hertfordshire Fire & Rescue Service, Lincolnshire Fire & Rescue Service and Norfolk Fire & Rescue Service.

11. This report updates Members on progress in developing the Authority’s future plans

for its Control Room Service in light of the Department for Communities and Local Government’s (DCLG) intention to provide funding to support locally delivered improvements to the resilience, efficiency and security of fire and rescue control centres in England.

12. The four Fire and Rescue Services have signed a high level Statement of Intent to

jointly prepare the bid and work collaboratively as the East Coast and Hertfordshire Control Room Consortium in developing their respective Control Room Services. Work is now progressing on drafting the heads of a agreement which will ensure that the consortium can be established in a robust and transparent arrangement

13. The principles underpinning the Consortium’s bid are that each Fire and Rescue

Service (FRS) will retain its own Control Room, but with a high level of collaboration to maximise efficiencies with regard to infrastructure costs and provide a high degree of call management resilience.

14. The Consortium bid for £8,446,341 has now been finalised and was submitted to

DCLG on 4 November 2011, the closing date for all bids. 15. DCLG have committed to inform all Fire and Rescue Authorities (FRA) of the

outcomes of their respective bids by 31 January 2012.

INCOME GENERATION 16. Following approval of the 2011-2014 Strategic Plan a sub-board of the Infrastructure

Board was created to research the opportunities for generating income. The primary aim of income generation is to secure and/or create employment and to supplement the Service budget as grant support reduces.

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17. Because of the wide-ranging organizational implications associated with this initiative the sub-board has been stood down and has been replaced with a project team working directly to the Change Board. The project team has identified a number of business opportunities ranging from consultancy to the provision of on-site fire and rescue teams. They have confirmed that the HFRS brand image is strong in the area and that local businesses appear interested in procuring services from us. Should Members choose to go down that route then it would be necessary to establish some form of delivery model which, once agreed, could be achieved quickly and at low cost.

18. In view of the progress made so far CMT have instructed the project team to continue

with their research and to recommend an appropriate delivery model for HFRS income generation activities. Members should be assured that CMT recognise that there are many factors to be considered and that they will exercise due diligence throughout this process. Whilst this project will increase organisational knowledge and better prepare us for the challenges ahead Members should bear in mind that we already have experience in establishing a social enterprise in North Lincolnshire and that the project team will draw on that experience.

19. During the market-testing phase of the research the project team has been asked if HFRS would be interested in bidding for a substantial local contract. They are currently gathering information on this proposal with a view to presenting to Members during the January Member Day.


20. The proposals in this report deal with elements of the Strategic Plan 2011-14

Objective 4: Making the Best Use of Resources.

FINANCIAL RESOURCES/VALUE FOR MONEY IMPLICATIONS 21. The preferred partnership is unlikely to require additional resources and in the longer

term may lead to small reductions in cost. Its major benefits are likely to be in increasing organisational resilience and capacity. The East Coast and Hertfordshire Control Room Consortium is likely to secure at least £7.2m (possibly £8.4m) of CLG funding and the share allocated to HFRS is likely to exceed the £1.8m individual ceiling. In the longer term the investment will yield significant efficiency savings in the Control Room. The financial benefits of the income generation work stream have yet to be fully assessed but Members can be assured that the initiative will progress only if the potential income outweighs the risk.

LEGAL IMPLICATIONS

22. There are significant legal implications for both the Control Room project and for the

Income Generation project. As these emerge they will be assessed and reviewed by CMT. EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS

23. As the projects mature they will be subject to equality impact assessments. The HR

implications are likely to be significant and complex and these will be identified by the Project Team and managed by CMT.

STRATEGIC RISK MANAGEMENT IMPLICATIONS

24. All of these projects aim to reduce the likelihood and impact of Strategic Risk No 249.

HEALTH AND SAFETY IMPLICATIONS 25. None.

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104

COMMUNICATIONS ACTIONS ARISING 26. The Income Generation Project Team are dealing with commercially sensitive

information and where it is necessary to discuss at HFA these may have to be proposed as exempt items.

DETAILS OF CONSULTATION

27. Not appropriate.

BACKGROUND PAPERS AVAILABLE FOR ACCESS 28. None.

RECOMMENDATIONS RESTATED 29. That Members consider this report and endorse the proposal to establish a delivery

model and develop a viable income generation project(s).

R HANNIGAN

Officer Contact: Richard Hannigan 01482 567417 Chief Fire Officer

Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull RH 2 December 2011

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Agenda Item No.


Report by the Deputy Chief Fire Officer and Director of Operations

13.2

STRATEGIC PLAN 2011–14 REVIEW OF NON-FRONT LINE SERVICE DELIVERY

SUMMARY 1. On 27 September 2011 Members were updated on the progress on the Strategic

Plan 2011-14 containing key objectives aimed at effectively delivering the Service to 2014. In particular it outlined potential efficiencies in a number of non-front line services (but not including corporate support which is the subject of a separate report on this meeting’s agenda). This report now gives Members further detail of where and how those efficiencies can be made in keeping with the Strategic Plan 2011-14, particularly the objectives outlined below:

Strategic Objective 4 – Making the best use of resources we have to deliver more

efficient services

Strategic Objective 5 – Establishing new ways of working to deliver more effective services

2. The Corporate Support Review has already highlighted a number of significant

saving opportunities taken in areas such as management costs, discretionary spends and the removal of vacant posts.

3. The savings outlined in this report are in addition to those identified above and seek to balance, more proportionately, the efficiencies necessary to meet our potential overall budget reduction through years three and four of this CSR period in line with the Authorities agreed IRMP and Strategic Plan

4. A summary of the estimated cost/savings of the proposals can be found in Appendix A. RECOMMENDATIONS

5. This report seeks Members approval for Proposals 1-8.

REPORT DETAIL 6. As part of the Governments comprehensive spending review there is a requirement

on the service to introduce significant efficiency savings in order to maintain a balanced budget. With this in mind the approved Strategic Plan for 2011-14 included, so called ‘de-invest’ projects designed to review a number of areas of collaboration, non-front line service delivery and corporate support. These reviews were intended to compliment and contribute to proposals already approved by the Authority in its IRMP 2011 - 12.

7. The Authority agreed at the time to take a ‘whole system approach’ to redesigning

our non-front line/support services with the aims of eliminating inefficiency and waste in this arena and this lent itself to applying ‘systems thinking’ methods to the project. This approach is predicated on ‘customer needs’, doing more for less, addressing

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efficiency and improving service delivery and processes.

8. These proposals, if fully implemented, will net savings on an on-going basis while maintaining and, in some instances, delivering an improved level of service to our communities. Some of these savings will also be used to reinvest in areas identified in the Integrated Risk Management Plan 2011-12 and future reviews. Proposal 1 – Merge the Service Delivery Manager (SDM)/Community Risk Manager (CRM) Group Manager roles in each CPU

9. This proposal is put forward as a result of the CPU Management Re-alignment trial which has been running since Oct 2010. The trial has been evaluated against a number of critical success factors and it has been concluded that CPUs can be run successfully under the proposed managerial structure, indeed, a number of benefits have been identified. The proposal seeks to combine the role of Service Delivery Manager and Community Risk Manager into a single CPU Manager post.

10. Implementing this proposal would result in the loss of a Group Manager post from the overall establishment in line with the IRMP Task 3: FDS Review. Proposal 2 – Review the roles of Technical Training Officers (WMs)/Personal Development Advisors (WMs) and Risk Reduction Officers (CMs)

11. This proposal seeks to establish a new role, which reflects the current and emerging needs of CPU’s in terms of training delivery, operational support and risk management. Currently these activities are undertaken, to a limited degree, by nine Risk Reduction Managers (Crew Managers) and nine Personal Development Advisors (Watch Managers). The establishment of 16 new posts will effectively amalgamate these roles into a more clearly defined post with a wider remit to address the new challenges facing CPU’s in supporting operational delivery, this underpins the need to ensure operational competence. The reduction will be achieved through vacancy management.

12. It is also proposed that the existing cadre of ten centrally based Technical Trainers assume the same role map given the obvious synergy within the roles described above. This will allow for a degree of resilience and also additional capacity to service both the needs of CPU’s and Central Training based on risk. It is envisaged that staff within these roles will be able to operate much more flexibly and move between the various areas/disciplines as required by the needs of the Service at any given time.

13. This will see an increase in seven WM posts which will be fully funded from the reduction of nine CM posts, those personnel in remaining CM posts will be absorbed within the current establishment on completion of the moves.

Proposal 3 – Human Resource (HR) Support within CPUs

14. Following the feedback from the CPU management trail it was established that HR issues presented a particular challenge in terms of the time available to deal effectively with this area. This significantly reduced the capacity of the CPU Manager to manage the wider range of issues falling to the combined SDM/CRM role.

15. In addressing this issue CPU administration managers are undertaking training within the HR arena (CIPD Foundation level) in order to deal with a wider range of HR issues and become more aligned with the HR central support function.

16. It is recommended that the above is accounted for in the Corporate Support Review.

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Proposal 4 – Merge the Education Liaison Officer (ELO) and Community Safety Advocate (CSA) roles and reduce the overall establishment.

17. A fundamental review of the ELO role was undertaken in 2010, it was recommended that the ELO be amalgamated with the role of the CSA. This is in keeping with the more general role of CSA’s in regard to educational delivery. Combining the role of ELO’s with CSA’s also provides greater flexibility and resilience particularly during school leave periods were there is limited scope to utilise the skills of ELO’s effectively.

18. Feedback as a result of the CPU management trial and through the Fire Death and Injury Review Panel (FDIP) indicates that there is also an opportunity to refocus the range of existing activities undertaken within the Community Safety arena. This is based on meeting the needs of the most vulnerable. In taking this approach it is possible to rationalise the number of personnel allocated to this area. Through the management of existing vacancies it has already been possible to demonstrate the sustainability of this approach.

19. It is recommended that the current four full time and one part time vacant ELO positions are removed from the establishment immediately and all of the remaining six ELO posts be amalgamated into CSA roles on completion of consultation and the application of the Restructuring Implementation Policy. The overall establishment of CSAs will increase by one as part of this proposal, resulting in an overall reduction of eight full time and one part time posts. This proposal is linked to Proposal 6 which will see one existing CSA post be changed to provide a supervisory role for Road Safety staff. Proposal 5 – Realign Central Support Provision

20. Following a range of development and implementation work in terms of CPU based activity, the need for on-going provision within all areas of central support will be reviewed. These currently cover three distinct areas, namely, Partnerships, Safeguarding and the Learning Centre.

21. The review is still on-going and will be reported on in the April cycle as part of the Corporate Support Review and, in the case of the Learning Centre, will form part of the wider work on the review of the current Community Safety Strategy. . Proposal 6 – Establishment of Road Safety Posts.

22. IRMP 2008/11 – Task 5 reflected the growing risk around road traffic collisions (RTCs) both with regard to operational training and community education. In response a dedicated technical training post was established along with two advocate posts to support our partnership involvement in Safer Roads Humber through the ‘iCar’ Project. This has seen Road Safety education, which has been recognised as good practice nationally, as well as operational improvements in extrication times from RTCs since the training post has been in place.

23. It is proposed that all three posts now be permanently added to the establishment and that the supervisory role which is already being undertaken by a CSA is permanently created by transferring the existing CSA post into this supervisory role, which has been job sized at Grade 7. This proposal is cost neutral as a result of the on-going revenue funding arrangements set out as part of IRMP 2010-11 Task 5. Proposal 7 – Implement Changes to the Role of a Number of Control Based Staff

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24. This proposal will require the establishment of two additional posts to manage operational communications and risk information and will utilise existing posts which have been freed up by more efficient crewing arrangements in Control.

25. This will deliver some of the requirements of the previous FARMSS audit around the management of risk information and also the Project under Task 7 of IRMP 2011-12. to “Strengthen the management and resourcing of operational risk information” which was approved by the Authority.

26. As a result of the above and ongoing consultation and resultant job grading there is likely to be an investment of circa £66k to complete the changes proposed. However, Members should note this investment represents the formal establishment of necessary posts that have been funded by the Service for some years.

Proposal 8 – Reduce the Operational Staffing in the Research and Policy Section

27. This proposal will remove one Watch Manager post from the Research and Policy Section, being replaced by a grade 4 (dependent upon grading) within the Research and Policy Section to administer Policies and Policy Guidance notes. This proposal will not be completed until the Corporate Support Review has determined the capacity requirements for managing complaints to the Service, which was a part of the job being removed by this proposal. STRATEGIC PLAN COMPATIBILITY

28. The proposals outlined in this report comply with the Service Strategic Plan 2011-14

particularly strategic objectives 4 and 5.

FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATIONS 29. Implementation of the review work outlined in this report will yield significant net

revenue savings which will compliment and contribute to the savings from front line service delivery functions outlined in the IRMP 2011-12 proposals already approved. There will also be savings in indirect costs, such as staff training and equipment, resulting from an overall reduction in establishment.

LEGAL IMPLICATIONS

30. None arising directly at this time.


31. All of the proposals set out in the report have been subject to an equality impact

assessment. Subject to Member approval the proposals will be progressed in accordance with the Service policy – Restructuring Implementation as well as being cognisant of the necessary ‘HR Next Steps’ outlined at Item 13.4 on this meeting’s agenda.

CORPORATE RISK MANAGEMENT IMPLICATIONS

32. These proposals directly mitigate the Strategic Risk 249 relating to funding shortfalls.

HEALTH AND SAFETY IMPLICATIONS

33. None arising directly.


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34. Details of the proposals and their implementation will be communicated widely following Fire Authority approval.

DETAILS OF CONSULTATION 35. The nature of some of the proposals will necessitate a full formal consultation

process with staff and their representative bodies. This will be commenced within appropriate timescales subject to Fire Authority approval of these proposals. BACKGROUND PAPERS AVAILABLE FOR ACCESS

36. HFA Report 24/01/2011 – Strategic Plan 2011 – 2014.

HFA Report 19/04/2011- Analysis of fatal injuries in accidental dwelling fires. CPU Realignment trial terms of reference/critical success factors. RECOMMENDATIONS RESTATED 37. This report seeks Members approval for Proposals 1-8.

D SANDERS

Officer Contact: Dene Sanders 01482 567413 Director of Operations Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull DS/KE 23 November 2011

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Appendix A

Proposal Number

Establishment changes

Grade of Post Net Savings inc. on costs (£k) Current estimate

1 Proposed reduction of one x GM post

GM £72

2 Proposed merging of Risk Reduction roles and Personal Development Advisor roles resulting in the overall reduction of two x CM posts

CM £47

3 Subject to Corporate Support Review

4 Combined ELO and CSA role resulting in a reduction of eight full time and one part time posts overall (linked to proposal 6)

Grade 5 and 6

£179

5 Subject to Corporate Support Review and Review of Community Safety Strategy

6 Establish two Road Safety Advocates and one WM post £100k funding from Revenue, and develop one CSA post into a supervisory role

two x Grade 6 one x WM One re-grade (6 to 7)

Fully cost Neutral posts already funded by existing revenue budget

7 Establish additional post to manage Operational Communications

-£66

8 Removal of a WM post within R&P and replace with a grade 4

£25

Total

£257

Agenda Item No.


Report by the Secretary/Director of People and Director of Finance/S.151 Officer

13.3

STRATEGIC PLAN 2011-14 WORKSTREAM – TRANSFORMATION/DEINVEST CORPORATE SUPPORT

SUMMARY 1. At the September meeting of the Fire Authority, Members received two separate

reports in respect to Transformation/Deinvest arising out of the Strategic Plan 2011-14 workstreams. The Deputy Chief Officer submitted one report in respect to Non-Front Line Service Delivery and the Directors of People and Finance the other. This report is further to the latter and provides a broad update, in particular informing the next steps in 2012 as set out in report ‘Change Management – HR Next Steps’ under Agenda item 13.4.

RECOMMENDATIONS 2. Members are asked to consider this report.

SEPTEMBER FIRE AUTHORITY PAPER – CORPORATE SUPPORT

3. Members will recall that non-operational efficiencies had been generated to the level of £550k (comprising £290k senior management and £260k discretionary spend). Members also approved the deletion of certain posts within corporate support, representing a further saving of £143k.

4. The September paper to the Authority also alluded to next steps.

5. One of those next steps was in relation to the potential impact of collaboration.

Given other papers to the Fire Authority, it is unlikely that the collaboration anticipated earlier in the year will now materialise, for a number of reasons, and as such any collaboration would be more around knowledge transfer and resilience.

6. Since September there have been some broad Directorate discussions within Corporate Support around the challenges ahead, the changing face of local government and responding to the budget pressures. To date there has been no need to commence formal consultation with staff and their representative bodies.

7. With regard to Corporate Support, there are a limited number of vacant posts which could be removed and, as such, changes in structure and focus will inevitably lead to a potential redundancy situation (voluntary or otherwise). In most areas, current Corporate Support is extremely lean, with the cost of support being around 12% of total expenditure budget. Corporate Support comprises a wide range of functions, including HR, Equality & Diversity, Occupational Health, Communication and Engagement, Secretariat, Project/Risk Management, Personal Development, Finance, Technical Services, Property Services, Administration, IT, Organisation Intelligence Unit, Health and Safety. It will be possible to generate further efficiencies, in part by adopting new ways of working and in part by deploying our resources more clearly against future priorities and ensuring that the level of service is effective and efficient as can be expected from those resources. Much has already been done, but refreshed structures will be needed and the level of expectation will need to be managed accordingly. For the purposes of this report, it is perhaps sufficient that Members acknowledge the current position and the approach that the Directors will take as set out in this paper. There are also some areas of the

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organisation currently under other Directorates which may need to be included. While there is no ‘target’ in terms of a future reduction in Corporate Support costs, the intention is to seek further efficiencies across Corporate Support at about £250,000, in addition to the savings already generated highlighted earlier.

STRATEGIC PLAN COMPATIBILITY 8. This report updates on one of the key workstreams agreed as part of the Authority’s

2011-14 Strategic Plan. FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATIONS

9. Members are aware of the earmarked reserves of £2.2m which are designed to aid

change management and restructuring. 10. In order to support the HR and change process, then additional support will be

procured.

LEGAL IMPLICATIONS 11. The Authority must consider efficiencies in some areas of support very carefully to

ensure that legal and statutory responsibilities can continue to be met. The Authority must meet its legal obligations and ensure compliance with good HR practice. EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS


with trial structures in place, for example in respect to technical fire safety. Some have resulted in changes to the establishment, i.e. reduction in posts in respect to both operational and corporate support staffing (as previously reported to Members). Thus far reliance has been upon natural retirements and removing of vacant posts.

13. In terms of retirements of operational personnel during the CSR period, presuming

that all those eligible to retire do so, then that will result in 76 retirements. To date 25 have retired. Therefore, with the additional need to achieve further efficiencies in readiness for 2014/15, relying upon ‘natural retirement’ is not an option in any event. Accordingly, the need to have in place an ‘early release scheme’ in such circumstances is entirely prudent.

14. With further workstreams underway aimed at transformation and the likely impact

upon staffing, then there will be a need to formally consult in 2012. An early release scheme will be developed and consulted upon during Spring/Summer 2012, in tandem with criteria etc., around compulsory redundancy. Note that in terms of early retirement and compulsory redundancy, this is about reviewing existing schemes.







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CORPORATE RISK MANAGEMENT IMPLICATIONS 18. None arising directly but the Strategic Risk (ref. 249) referring to CSR years 3 and 4

is mitigated in some small part by the proposed actions set out in this report.

HEALTH AND SAFETY IMPLICATIONS 19. None arising directly.


20. Staff have been made aware that the Authority will not be undertaking a Voluntary

Redundancy scheme in 2011 and this remains the position. There have been regular and open communications with staff and these will continue. The relevant Authority papers will also go before the next meeting of the JCC (which the previous September papers did). This is not formal consultation at this stage, but good practice in terms of keeping staff and representative bodies aware of the situation and the next steps. DETAILS OF CONSULTATION

21. Senior Managers within Corporate Services have been involved in the discussions

aimed at identifying efficiencies. At this stage discussions have been informal and a very early stage.

BACKGROUND PAPERS AVAILABLE FOR ACCESS 22. Strategic Plan 2011-14.

RECOMMENDATIONS RESTATED 23. Members are asked to consider this report.

R GRAHAM K WILSON

Officer Contact: Robin Graham 01482 567443 Secretary/Director of People Kevin Wilson 01482 567183 Director of Finance/S.151 Officer Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull RG/SJ 2 December 2011

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Agenda Item No.


Report by the Secretary/ Director of People

13.4

STRATEGIC PLAN 2011-14 WORKSTREAM - CHANGE MANAGEMENT – HR NEXT STEPS

SUMMARY 1. This report should be read in conjunction with report ‘Transformation/Deinvest

Corporate Support (Agenda Item 13.3 refers). Set out below is the need to bring together a number of workstreams into a Human Resource process in order to manage anticipated change.

RECOMMENDATIONS 2. Members are asked to consider this report. CHANGE MANAGEMENT 3. There are a number of issues which impact upon the next steps in respect to change

management arising from the Strategic Plan 2011-14 and IRMP.

Firstly, our financial position in the current year (year 1) and largely next year (year 2) (of the CSR period) is reasonably healthy as reported elsewhere on the agenda. This has meant the immediate need to remove posts and then seek redundancies has been stayed for the time being. In June, CMT announced that there would be no early release or redundancies sought until 2012, at the earliest. Part of the problem has been the lack of absolute certainty in respect to year 3 and 4 funding. As such, the message has remained that compulsory redundancies would be a last resort, but that a voluntary release and redundancy scheme would be developed in readiness (and consulted upon) in 2012.

Secondly, we need to ensure that there is an organisation read across in terms of

potential changes and the need for consistency and timing. Members will see a separate paper under Agenda item 13.2 in respect to other non-frontline services. In addition to those workstreams arising from the Strategic Plan and IRMP, there are others which are linked, for example around Control, RDS contracts, Technical Fire Safety trial review.

Thirdly, as Members are aware, the retirement profile is insufficient to meet the

organisation staff reduction needs (and in any event a retirement profile is no guarantee of actual future retirements). There are also future anticipated savings from the planned acquisition of a new HR/RMS system. There are also a number of supernumerary operational staff as a result of the implementation of certain parts of the IRMP 2011/12.

The final factor, which relates to timing and direction, links to the appointment of a

Chief Fire Officer & Chief Executive. It is essential to first set the strategic priorities arising from a longer-term vision and align our resources accordingly. The structures and fit of staffing in support must follow. Those processes, systems and work which are unnecessary or are of limited value or no longer fit strategic priorities will need to be removed (impacting upon staffing).

115

4. In terms of the predicted budget shortfall in 2014/15 of £2.5m (most likely scenario, although worse case could be £4.8m), then there remains under the IRMP 2011/12 work underway in respect to residential self-rostering (RSR), but this has been broadened to examine new duty systems across the Service. This work will need to come back before Members. It is too early to say whether this predicted shortfall will be met by RSR as part of a possible new duty system and as such there may be an impact upon savings generated elsewhere. While not the purpose of this paper, Members will note the intention of CMT to come forward to the Authority with further options in respect to meeting the predicted shortfall. This may result in a later HR process for changes to staffing as a direct consequence. This is unavoidable given the lead in time of any new duty system, particularly residential self-rostering. NEXT STEPS

5. There is confidence in the financial forecasts reported to Members and as such it is important to take the steps next year as outlined below in order to be in a position to achieve the necessary efficiencies. There is a duty to act and create certainty rather than simply to ‘wait and see’.

6. Given the above, it is seems reasonably likely that the Authority will have potential redundancy situations going forward. Consequently, it is now important to begin to plan ahead, even if the position changes a little during 2012/13. The Early Release Scheme needs to be put in place in readiness, even if it transpires later that there is limited use of the scheme. The likelihood of redundancy triggers formal redundancy consultation. At this stage, through the JCC, informal and early discussions will continue.

7. In addition, in order to bring about effective change, it is important to engage and communicate with all staff, not only those potentially most affected by restructuring. It is important that staff understand the financial position but also understand the need for further change in response to the challenges ahead. The last thing that staff want is prolonged uncertainty and a piecemeal process of structural reviews, unless absolutely unavoidable.

8. Consequently, set out below is an indicative timetable. This will provide staff with some clarity upon the next steps, but naturally, depending upon other factors, the timetable may need to be adjusted. The Authority and staff will be kept fully updated. 1) January/February 2012 – identify further the potential areas/functions for

transformation/further efficiencies.

2) February 2012 – Identify the staff groups at potential risk. Run in tandem across the Service.

3) March 2012 – Commence formal consultation in respect to potential

redundancies and workforce changes. 4) Engage upon proposed new structures (and consult upon) in Corporate

Support to yield further efficiencies in readiness for 1 October 2012. 5) Consult upon Early Release Scheme (and redundancy selection criteria

review) – commence March 2012*. 6) Put in place the necessary policy and guidance infrastructure by April 2012. 7) Draft structures finalised announced May 2012. 8) Invitation to Early Release sought June 2012. 9) New structures effective October 2012.

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* Note there still remains the need nationally for there to be clarification (by

regulation) for the position of grey book members of staff to be able to access early release schemes.

STRATEGIC PLAN COMPATIBILITY 9. This report updates on one of the key workstreams agreed as part of the Authority’s

2011-14 Strategic Plan. FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATIONS

10. Members are aware of the earmarked reserves of £2.2m which are designed to aid

change management and restructuring. 11. In order to support the HR and change process, then additional support will be

procured.

LEGAL IMPLICATIONS 12. The Authority must consider efficiencies in some areas of support very carefully to

ensure that legal and statutory responsibilities can continue to be met. The Authority must meet its legal obligations and ensure compliance with good HR practice. EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS


with trial structures in place, for example in respect to technical fire safety. Some have resulted in changes to the establishment, i.e. reduction in posts in respect to both operational and corporate support staffing (as previously reported to Members). Thus far reliance has been upon natural retirements and removing of vacant posts.

14. In terms of retirements of operational personnel during the CSR period, presuming

that all those eligible to retire do so, then that will result in 76 retirements. To date 25 have retired. Therefore, with the additional need to achieve further efficiencies in readiness for 2014/15, relying upon ‘natural wastage’ is not an option in any event. Accordingly, the need to have in place an ‘early release scheme’ in such circumstances is entirely prudent.

15. With further workstreams underway aimed at transformation and the likely impact

upon staffing, then there will be a need to formally consult in 2012. An early release scheme will be developed and consulted upon during Spring/Summer 2012, in tandem with criteria etc., around compulsory redundancy. Note that in terms of early retirement and compulsory redundancy, this is about reviewing existing schemes.







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118

CORPORATE RISK MANAGEMENT IMPLICATIONS 19. None arising directly but the Strategic Risk (ref. 249) referring to CSR years 3 and 4

is mitigated in some small part by the proposed actions set out in this report.

HEALTH AND SAFETY IMPLICATIONS 20. None arising directly.


21. Staff have been made aware that the Authority will not be undertaking a Voluntary

Redundancy scheme in 2011 and this remains the position. There have been regular and open communications with staff and these will continue. The relevant Authority papers will also go before the next meeting of the JCC (which the previous September papers did). This is not formal consultation at this stage, but good practice in terms of keeping staff and representative bodies aware of the situation and the next steps. DETAILS OF CONSULTATION

22. Senior Managers within Corporate Services have been involved in the discussions

aimed at identifying efficiencies.

BACKGROUND PAPERS AVAILABLE FOR ACCESS 23. Strategic Plan 2011-14.

RECOMMENDATIONS RESTATED 24. Members are asked to consider this report.

R GRAHAM

Officer Contact: Robin Graham 01482 567443 Secretary/Director of People Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull RG/SJ 2 December 2011

Agenda Item No.


Report by the Chief Fire Officer/ Chief Executive

SERVICE PERFORMANCE REPORT 2nd QUARTER PERIOD

1 APRIL 2011 – 30 SEPTEMBER 2011 SUMMARY 1. This report highlights the Service’s performance for the period 1 April 2011 –

30 September 2011. Contained within the report are the Service’s own Performance Indicators (SPIs), which are underpinned by Local Performance Indicators (LPIs).

2. The report details the Service Performance Indicators showing performance of actual

against target, and previous year performance against this year’s actual. This also includes performance against intervention and availability standards which is detailed in section 2 of the report.

3. The performance is encouraging regarding “Deliberate primary fires”, which are

property fires in dwellings, Commercial properties, and also deliberate fires of all other types. Whilst it is difficult to attribute this to specific prevention activity it does highlight the efforts being made in CPUs, particularly against a backdrop of recession during which increases in deliberate fires are normally expected.

4. The target for RDS 2nd Appliance Availability has been increased to 80% and the

performance of this measure is detailed below and within the body of this report. 5. SPI 2a – Total other Accidental Fires (exc Vehicles) is currently 14% worse than

target. Further detail on this and other indicators is contained within the body of this report.

Report Highlight Summary Table

Service Performance Indicator Actual Against Target Actual Against Previous

Year Actual SPI 1 – Total Number of AFA’s 3% worse than target 11.7% better than previous year

SPI 2 – Total Accidental Dwelling Fires 3% better than target 9.8% better than previous year

SPI 2a – Total Other Accidental Fires (exc Vehicles)

14% worse than target 14% worse than previous year

SPI 3 – Total Deliberate Primary Fires 28% better than target 23% better than previous year

SPI 4 – Total Deliberate Secondary Fires 13% better than target 15.2% better than previous year

SPI 5 – Total Fatalities 4 fatalities against aspirational target of zero

2 fatalities for the period in the previous year

SPI 6 – Total Non-fatal Casualties 31 Non-fatal Casualties against aspirational target of zero

23 Non-fatal Casualties for the period in the previous year

SPI 16a - Standard of First Appliance in Attendance is met

9% better than target 1.2% better than previous year

SPI 16b - Standard of Second Appliance in Attendance is met

12% better than Target 1.8% better than previous year

Availability Performance Measures Actual Against Target

Actual Against Previous Year Actual

WT Crewing Achieved on 95% of Shifts

100% crewing achieved Not Available

RDS 1st Appliance Availability – 95% Target

1.3% better than Target 4.8% better than previous year

RDS 2nd Appliance Availability – 80% Target

1.7% better than Target 4.3% better than previous year

14

119

RECOMMENDATIONS

6. That Members consider the report’s detail and take assurance from the Service’s proactive approach to performance management. 1 APRIL 2011 TO 30 SEPTEMBER 2011 PERFORMANCE

7. The attached performance graphs and information are categorised in two sections:

Section One details performance against the Service Performance Indicators including targets and previous year actuals.

Section Two details performance around emergency response and availability

8. The graphs display comparators between target, previous year actual, and actual

performance, on a month by month basis. Below each graph is a tabular representation of the data, which gives specific numerical comparison in period by period monthly detail. The Targets have been calculated using a seasonal adjustment and as a result the comparator lines displayed on the graph have the associated peaks and troughs associated with historical data trends of seasonal incident activity.

9. Any SPI associated Action Plans will be created via the new Risk Register system

and these will be generated to address specific risks that cannot be managed through day to day business. Copies can be provided if required and are also available on the Corporate Information Portal.


10. This directly supports the strategic objective “Making the best use of the resources

we have”. FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATIONS

11. Any area of improvement in performance without an increase in resources

contributes to value for money. LEGAL IMPLICATIONS

12. None arising directly


13. None arising


14. None arising directly, although risks relating to specific issues of prevention activity

are captured within CPU Risk Registers where appropriate. HEALTH AND SAFETY IMPLICATIONS

15. None arising


16. None arising

120

DETAILS OF CONSULTATION 17. None applicable

BACKGROUND PAPERS AVAILABLE FOR ACCESS 18. None

RECOMMENDATIONS RESTATED

19. That Members consider the report’s detail and take assurance from the Service’s proactive approach to performance management.

R HANNIGAN

Officer Contact: AM Phil Jackson 01482 567493 Head of Policy, Performance & Risk Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull

PJ/RJ/APS 30 November 2011

121

SECTION 1

Service Performance Indicators

2nd Quarter 2011/12

123

SPI Quarterly Performance Report - 2011-2012 For this measure, low numbers are good

SPI 1 - Total Number of AFA's (HFRS CPU Area Teams) Period only

Period Table

Actual Target Previous Year Actual

2011/04 114.00 103.10 120.00 2011/05 107.00 115.40 135.00 2011/06 133.00 110.50 129.00 2011/07 180.00 170.00 199.00 2011/08 175.00 183.50 215.00 2011/09 144.00 143.60 168.00 2011/10 135.10 158.00 2011/11 127.70 149.00 2011/12 135.00 158.00 2012/01 99.40 116.00 2012/02 99.20 117.00 2012/03 96.80 115.00

Commentary (2011/09)

As can be seen from the above graph and data table, there has been a decrease in the number of AFA's within the service area in comparison to last years 2nd quarter actuals. There have been 27 more incidents than the Target figure of 826 for this 2nd quarter period, which equates to performance of 3% worse than Target.

Overall performance for the 2nd quarter - The Service is performing at 3% worse than target.

In Summary

Actual vs Target - 3% worse than Target

Actual vs Previous Year Actual - 12% better than previous years Actual

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SPI 2 - Total ADF's (HFRS CPU Area Teams) Period only

Period Table


2011/04 45.00 47.00 53.00 2011/05 38.00 56.20 62.00 2011/06 50.00 39.20 48.00 2011/07 39.00 38.30 38.00 2011/08 32.00 43.20 39.00 2011/09 52.00 39.60 45.00 2011/10 40.00 43.00 2011/11 50.10 45.00 2011/12 55.00 68.00 2012/01 43.00 43.00 2012/02 41.70 40.00 2012/03 48.20 46.00


As can be seen from the above graph and data table, there has been a decrease in the number of Accidental Dwelling Fires within the service area in comparison to last years 2nd quarter actuals. There have been 7 fewer incidents than the Target figure of 263 for this 2nd quarter period, which equates to performance of 3% better than Target.

Overall performance for the 2nd quarter - The Service is performing at 3% better than target.

In Summary

Actual vs Target - 3% better than Target


126


SPI 2a - Total Other Accidental Fires (Exc Vehicles) (HFRS CPU Area Teams) Period only

Period Table


2011/04 29.00 35.00 32.00 2011/05 42.00 31.40 26.00 2011/06 38.00 26.20 36.00 2011/07 38.00 33.70 33.00 2011/08 38.00 38.20 41.00 2011/09 35.00 28.60 25.00 2011/10 34.30 31.00 2011/11 32.10 30.00 2011/12 26.60 27.00 2012/01 22.30 24.00 2012/02 21.40 21.00 2012/03 24.20 30.00


As can be seen from the above graph and data table, there has been an increase in the number of "Other" Accidental Fires (exc Vehicles) within the service area in comparison to last years 2nd quarter actuals. There have been 27 more incidents than the Target figure of 193 for this 2nd quarter period, which equates to performance of 14% worse than Target.

Overall performance for the 2nd quarter - The Service is performing at 14% worse than target.

In Summary

Actual vs Target - 14% worse than Target

Actual vs Previous Year Actual - 14% worse than previous years Actual

127


SPI 2a – Total Other Accidental Fires (exc Vehicles)

SPI 2a currently has 220 incidents recorded against a target of 193 making it 14% worse than target.

The incidents contributing most to this indicator are accidental fires in industrial premises, private sheds and garages and retail outlets making up 45% (100 incidents) of the total number. The remainder of the incidents involve such things as standing crop, recycling bins, outdoor equipment etc.

Type of Property Total Incidents % of Total Industrial Manufacturing/Processing/Warehouses 40 18% Private Garden Shed 26 12% Private garage 18 8% Retail 16 7%

Last quarter’s report stated that some incidents were being included in this indicator due to the use of ‘not known’ as a motive. From September 1st the use of ‘not known’ has been discontinued. This may have a positive effect on this indicator for the remainder of the year.

62% (25) of the fires in industrial premises involved a piece of equipment, being caused either by a fault or an accumulation of flammable material.

Of the 220 total incidents contributing to this indicator 10% (23) involved spread from a secondary location meaning that some incidents although recorded as accidental, were actually started deliberately but the Officer in Charge has concluded that the perpetrator didn’t intend the fire to spread to a primary location.

Of the four CPU areas, North East Lincolnshire is the only one currently better than target with 34 incidents against a target of 36. Hull is 23.7% worse than target with 47 incidents against a target of 38. East Riding is 8.1% worse than target with 76 incidents against a target of 70. North Lincolnshire is currently 30.4% worse than target with 63 incidents against a target of 48. All of the CPUs have improved their target index this quarter compared to the last quarter with the exception of Hull which has deteriorated.

There are no highlighted hotspots or trends other than the ones detailed above, but the CPUs are closely monitoring the indicator. Technical Fire Safety will investigate the current trend in accidental fires in Commercial Premises, in conjunction with Community Fire Safety where the fire involved an initial deliberate ignition, which spread to a primary location.

128


SPI 3 - Total Deliberate Primary Fires (HFRS CPU Area Teams) Period only

Period Table


2011/04 72.00 68.50 58.00 2011/05 65.00 68.10 59.00 2011/06 54.00 87.20 73.00 2011/07 44.00 89.50 98.00 2011/08 53.00 80.30 71.00 2011/09 51.00 80.00 84.00 2011/10 75.40 57.00 2011/11 75.10 64.00 2011/12 46.20 42.00 2012/01 54.30 49.00 2012/02 51.00 47.00 2012/03 57.80 53.00


As can be seen from the above graph and data table, there has been a significant decrease of 104 incidents in the number of Deliberate Primary Fires within the service area in comparison to last years 2nd quarter actuals. There have been 134 fewer incidents than the Target figure of 473 within this 2nd quarter period, which equates to performance of 28% better than Target.


In Summary



129


SPI 4 - Total Deliberate Secondary Fires (HFRS CPU Area Teams) Period only

Period Table


2011/04 285.00 258.00 282.00 2011/05 250.00 244.10 257.00 2011/06 187.00 222.00 210.00 2011/07 177.00 265.30 304.00 2011/08 165.00 239.60 237.00 2011/09 192.00 212.50 194.00 2011/10 254.40 221.00 2011/11 259.60 251.00 2011/12 51.60 35.00 2012/01 90.80 94.00 2012/02 88.80 80.00 2012/03 211.90 213.00


As can be seen from the above graph and data table, there has been a decrease of 228 incidents in the number of Deliberate Secondary Fires within the service area in comparison to last years 2nd quarter actuals. There have been 185 fewer incidents than the Target figure of 1441 within this 2nd quarter period, which equates to performance of 13% better than Target.


In Summary



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SPI Quarterly Performance Report - 2011-2012 For these measures, low numbers are good

SPI 5 – Total Fatalities

There has been a slight increase in the number of fatalities within the service area for the 2nd Quarter period in comparison to last year’s actuals. There have been 4 fatalities within this 2nd quarter period compared to 2 for the same period last year.

Overall performance for the 2nd quarter period is 4 fatalities compared with the service aspirational target of no fatalities within the year.

In Summary

Actual vs Target - 4 fatalities against an aspirational Target of no fatalities a year

Actual vs Previous Year Actual - 4 fatalities against previous years Actual of 2

SPI 6 – Total Casualties

There have been 31 injuries within the service area for the 2nd Quarter period in comparison to last year’s actuals of 23. Overall performance for the 2nd quarter period is 31 injuries compared with the service aspirational target of no casualties.

In Summary

Actual vs Target - 31 injuries against an aspirational Target of none

Actual vs Previous Year Actual - 31 injuries against previous years Actual of 23

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SECTION 2

Emergency Response & Availability Performance

2nd Quarter 2011/12

133

RESPONSE

This section gives details around SPI 16 Emergency Response Standards, Average First Appliance Attendance Times and also provides details of other response areas of performance.

We measure the following Performance Indicators around emergency response standards:

SPI 16a - Standard of First Appliance in Attendance is met

SPI 16b – Standard of Second Appliance in Attendance is met

The table below details our current performance against our service intervention standards to the end of the 2nd quarter. The actual percentage values are the average over the 2nd quarter period, 01-April 2011 to 30 September 2011.

Performance Measure Actual Target SPI 16a –Standard of First Appliance in Attendance is met 99.18% 90%

SPI 16b – Standard of Second Appliance in Attendance is met 94.10% 80%

Average First Appliance attendance times for the Service

Our average first appliance attendance time to the end of the 2nd Quarter reporting period for all dwelling fires across the Service is 5 minutes 32 seconds. This is well below our most stringent target of 8 minutes for dwellings in high and very high risk areas.

Our average attendance time of the first appliance to Road Traffic Collisions was 7 minutes 32 seconds to the end of this 2nd Quarter reporting period. This again is well within the 15 minutes target time attendance that we have set as an overall standard.

April 2011 May 2011 June 2011 Incident

Type Actual Target Actual Target Actual Target

Dwellings 5 Mins 31

Secs 8 mins

5 Mins 35 Secs

8 mins 5 Mins 25

Secs 8 Mins

RTCs 8 Mins 17

Secs 15 mins

8 Mins 14 Secs

15 mins8 Mins 10

Secs 15 Mins

July 2011 August 2011 September 2011 Incident

Type Actual Target Actual Target Actual Target

Dwellings 5 Mins 17

Secs 8 mins

5 Mins 23 Secs

8 mins 5 Mins 59

Secs 8 Mins

RTCs 7 Mins 54

Secs 15 mins

6 Mins 15 Secs

15 mins6 Mins 22

Secs 15 Mins

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AVAILABILITY

This section gives details around API 18, Availability of Wholetime and Retained Duty System Appliances.

WT availability to the end of the 2nd Quarter April to September is currently 5% better than target with a 100% achievement.

Performance Measure Actual Target

API 9a – WT Crewing Achieved on 95% of Shifts 100% 95%

RDS availability for the first appliance to the end of the 2nd Quarter, April to September is currently 1.6% better than target with a 96.6% achievement. The 2nd pump standard is currently 2.8% better than target with an 82.8% achievement.

Performance Measure Actual Target

API 15a – One Appliance Crewed 95% of the time 96.6% 95%

API 15b – Two Appliances Crewed 80% of the time 82.8% 80%

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Agenda Item No.


Report by the Deputy Chief Fire Officer/ Director of Operations

15

OPERATIONS RESPONSE

(INCIDENTS OF SPECIAL INTEREST) SUMMARY 1. This report outlines details of incidents of special interest for the last quarter. The

performance of the Directorate in respect of response standards has been reported to the Audit, Performance and Scrutiny Committee.

RECOMMENDATION S 2. That Members note the contents of this report as a quarterly update of Incidents of

Special Interest. REPORT DETAIL 3. Response

3.1 Performance for the Directorate was reported to Audit, Performance and Scrutiny on 29 November 2011.

3.2 Incidents of Special Interest are included as Appendix 1 to this paper.

STRATEGIC PLAN COMPATIBILITY 4. The activities outlined above all contribute to the delivery of the strategic plan. FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATIONS 5. None at this time. All activities are met within agreed budgets. LEGAL IMPLICATIONS 6. None arising from this report EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS 7. None arising from this report CORPORATE RISK MANAGEMENT IMPLICATIONS 8. All managed within the Risk and Opportunity Management process. HEALTH AND SAFETY IMPLICATIONS 9. None. COMMUNICATION ACTIONS ARISING 10. None at this time.

137

138

DETAILS OF CONSULTATION 11. For HFA information and discussion only BACKGROUND PAPERS AVAILABLE FOR ACCESS 12. Appendices attached to this report: Appendix 1 – Incidents of Special Interest RECOMMENDATIONS RESTATED 13. That Members note the contents of this report as a quarterly update of Incidents of

Special Interest. .

D SANDERS Officer Contact: Area Manager Keith Evans 01482 567431 Head of Operations Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull HU4 7BB 2 December 2011

Appendix 1

INCIDENT: Large Fire: Sandsfield Gravel Company Limited, Brandesburton 30,000 Tonnes of chipped wood

DATE AND TIME: 1200 hours 14 August 2011

INITIAL FIRE APPLIANCE ATTENDANCE: 2 Pumping appliances

ADDITIONAL APPLIANCE MOBILISED: 3 Pumping appliances Water Support Unit High Volume Pump

METHOD OF EXTINCTION: 3 Main Jets and 4 Ground Monitors

NUMBER OF PERSONNEL ATTENDING: 6, 4, 2, 6, 6, 5, 2 and 3 FDS Officers = 34

NUMBER OF BREATHING APPARATUS SETS USED: 2

TIME INCIDENT UNDER CONTROL: 0819 hours 16 August 2011

TIME OF RETURN OF LAST APPLIANCE: 1219 hours 16 August 2011

SMOKE ALARM: Not applicable

SUMMARY:

On arrival the crews were faced with a fire involving approximately 30,000 tonnes of wood and chipped wood combination. There was also a possibility of fire spread to approximately another 100,000 tonnes of the same. Due to the distance of a water supply from the fire, the Water Support Unit was requested to enable large quantities of water from an onsite lake to be relayed to the fire. A fire break was made using on-site diggers and 3 ground monitors were used in an attempt to extinguish the fire. A request was made for the High Volume Pump to replace the Water Support Unit as this would give better access to the water supply as it provides a floating pump which would be more resilient when the water levels drop. Crews continued to fight the fire over the next 2 days. In total 4 ground monitors in conjunction with the HVP’s were used during the incident. Approximately 20,000 Tonnes of wood and chipped wood combination used for Biomass fuel suffered 100% fire damage. Water run off from the fire was an environmental consideration but after consultation with the site owner all run off was confined to the site. The cause of the fire was recorded as self ignition due to the type of material involved and the warm weather conditions at the time.

139

INCIDENT: Large Fire: Flat 75, High Court Flats, Courtway Road, Hull

11th floor of 23 storey flats



ADDITIONAL APPLIANCE MOBILISED: 2 Pumping appliances

METHOD OF EXTINCTION: 1 Main Jet

NUMBER OF PERSONNEL ATTENDING: 6, 5, 4, 5, 5 and 3 FDS Officers = 28




SMOKE ALARM: Not fitted to property

SUMMARY: Multiple calls were received to the Service and three pumping appliances were mobilised by Service Control. En-route the OIC made pumps five as flames could be seen issuing from the high rise flats. This early make-up enabled a rapid and safe deployment of resources upon arrival in line with the Service’s high rise procedure. The incident involved a flat on fire on the 11th floor of a 23 storey block of flats. It was quickly ascertained that all persons were accounted for and a severe fire within the flat was quickly brought under control using one jet supplied from ground level via the premises internal dry riser. Two adult females and one baby were led to safety from the flat two floors above. The area of damage was limited to the room of origin and the cause of the fire has been determined as accidental ignition due to carelessly discarded smoking materials.

140

INCIDENT: Special Service Incident: Belby Hall Farm, Howden

Animal Rescue



ADDITIONAL APPLIANCE MOBILISED: 2 Pumping appliances Technical Rescue Unit

METHOD OF EXTINCTION: N/A

NUMBER OF PERSONNEL ATTENDING: 5, 6, 5, 2, 2 and 1 FDS officers = 21

NUMBER OF BREATHING APPARATUS SETS USED: N/A



SMOKE ALARM: N/A

SUMMARY:

Upon arrival the crews were met by a distressed owner who directed them to a large horse, which was also distressed and trapped in a dyke, approximately 8 feet deep, at the rear of Belby Hall Farm, Howden. The OIC made his initial assessment and ensured the owner had requested a vet to attend. He also acquired the service of the local farmer and his lifting equipment to assist in lifting the animal clear of the dyke. The crews prepared the area for the arrival of the Technical Rescue Unit and made access down the sides of the dyke with spades to allow heavy rescue fibre lifting strops to be fitted around the body of the horse. At the same time the vet attended and sedated the horse to relieve its state of distress and calm the animal to make it safe for crews to approach and work around it. Upon arrival of the Technical Rescue Unit work was undertaken in confined conditions around the horse to feed the lifting strops down the side of the dyke and around the body of the animal. Within an hour of the arrival of initial crews the horse had been successfully rescued and carefully lifted clear of the dyke, utilising the farmers lifting unit and was lowered onto its side for the vet to attend to. The vet attempted for 45 minutes to reverse the sedation of the horse to attempt to get it back on its feet but despite his best efforts the horse had suffered so much trauma that it could not be resuscitated. The decision had to be made that the horse would not recover and sadly had to be put to sleep despite everyone’s best efforts to save its life.

141

INCIDENT: Large Fire: Derelict Office Block at Rank Hovis Mill Site, Hull

DATE AND TIME: 0008 hours

1 Sept 2011


ADDITIONAL APPLIANCE MOBILISED: 3 Pumping appliances Aerial Ladder Platform

METHOD OF EXTINCTION: 2 Main Jets

NUMBER OF PERSONNEL ATTENDING: 5,4,5,6,2,2 and 2 FDS Officers = 26


TIME INCIDENT UNDER CONTROL: 0058 hours 1 Sept 2011

TIME OF RETURN OF LAST APPLIANCE: 0139 hours 1 Sept 2011

SMOKE ALARM: Disconnected

SUMMARY: Upon arrival crews were faced with a potentially well-developed fire on the ground floor of a two storey office complex belonging to the former Rank Hovis mill premises. Access had been gained by persons unknown by removing external boarding and initiating a fire at ground level which had quickly spread smoke throughout the building. The OIC requested a further three pumps and the Aerial Ladder Platform as the complete extent of the fire was unknown at this time. Initial actions centred on gaining access to the building at both front and rear to allow effective operations to take place. Upon gaining access it was found that the seat of the fire was relatively small and that due to the boarding of the property, smoke had been forced into the remainder of the building by over pressurisation creating a visually more serious fire. Following defensive operations two BA wearers entered the property to damp down and turn over subsequent embers. The area of damage was limited to the floor of origin and the cause of the fire recorded as deliberate ignition.

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INCIDENT: Special Service Incident: 6 Gibraltar Court, Goole

Body Recovery

DATE AND TIME: 2136 hours 27 September 2011


ADDITIONAL APPLIANCE MOBILISED: 1 Pumping appliance Technical Rescue Unit Rescue Support Unit


NUMBER OF PERSONNEL ATTENDING: 2, 3, 4, 6, 2 and 3 FDS officers = 23


TIME INCIDENT UNDER CONTROL: 2340 hours 27 September 2011

TIME OF RETURN OF LAST APPLIANCE: 0049 hours 28 September 2011

SMOKE ALARM: N/A

SUMMARY: Service Control received a call from Humberside Police requesting assistance with the recovery of a deceased 29 stone male adult from a top floor flat in Gibraltar Court in Goole. The gentleman had been dead for approximately ten days and as such had succumbed to severe decomposition and was distended with decomposition gasses. A FDS officer attended the scene as Technical Rescue Tactical Advisor to make an initial assessment and liaised with Police and undertakers. It was confirmed that the recovery could be achieved, though due to the size of the body and the nature of the decomposition it was likely to be a protracted incident and would require the use of breathing apparatus and viral protection suits.

With the Technical Rescue Unit and the Rescue Support Unit, the recovery of the individual was achieved by six technical rescue firefighters utilising lines, salvage sheets, plastic sheets and personal protective equipment. The incident raised a number of issues regarding the specific equipment required to complete this type of task, which was recorded at the Operational debrief and which will now be considered by the Service Appliance, Equipment and Uniform Committee.

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INCIDENT: Large Fire: Orchard Park Health Centre, Ellerburn Avenue, Hull

Single Storey Former Health Centre

DATE AND TIME: 1442 hours 22 October 2011

INITIAL FIRE APPLIANCE ATTENDANCE: 2 Pumping Appliances

ADDITIONAL APPLIANCE MOBILISED: 4 Pumping Appliances 1 Aerial Ladder Platform

METHOD OF EXTINCTION: 3 Main Jets

NUMBER OF PERSONNEL ATTENDING: 6, 5, 5, 4, 6, 2, 5, and 5 FDS Officers = 38


TIME INCIDENT UNDER CONTROL: 1708 hours 22 October 2011

TIME OF RETURN OF LAST APPLIANCE: 2045 22 October 2011


SUMMARY:

Upon arrival the Crews found the former Health Centre well alight. The Officer-in-Charge immediately made pumps four. Fire fighters wearing Breathing Apparatus were committed into the building, carrying high pressure hose reels and main jets. This method initially reduced the fire size and intensity, but as the crews went deeper into the building, it became apparent that the fire had spread to the roof void and was spreading above them, so application of water on the fire became difficult. There was also a large amount of furniture in the building, which made movement within the building difficult and limited access due to the security measures. As the containment of the fire within the roof void also created a risk of the roof collapsing, crews were withdrawn and an aerial appliance was used to apply water from outside. Water supplies in the area were limited and whilst the large jet of water was being applied, other jets could not be deployed. Because this jet could only be directed through holes which appeared in the roof, the fire was able to spread underneath the roof inside the building. Once the size and intensity of the fire had been diminished substantially and the danger of internal collapse was minimised, crews wearing Breathing Apparatus were again deployed into the building. The further spread of the fire was soon halted and the fire controlled. The building was severely damaged with approximately 60% of the roof collapsing. Internally, approximately 80% of the building was affected by direct burning and heat, the remainder was affected by smoke damage. The cause of the fire was recorded as deliberate ignition, by youths.

144

INCIDENT: Fatal Fire Incident: 4 Marshfield Road, Goole

Fire Investigation 2 Storey Terrace House One 54 year old male

DATE AND TIME: 1330 hours 5 November 2011

INITIAL FIRE APPLIANCE ATTENDANCE: None

ADDITIONAL APPLIANCE MOBILISED: N/A


NUMBER OF PERSONNEL ATTENDING: 3 FDS Officers

NUMBER OF BREATHING APPARATUS SETS USED: None

TIME INCIDENT UNDER CONTROL: N/A

TIME OF RETURN OF LAST APPLIANCE: 1728 hours 05 November 2011


SUMMARY: Service Control received a call from Humberside Police requesting a Fire Investigation Officer attend a Mid terrace house where the deceased 54 year old male occupier had been discovered on his bed in the first floor bedroom, by the landlord. The Police stated there had been a small fire in the bedroom which had previously self-extinguished and was clearly now out. The duty Level 2 Fire Investigation Officer was mobilised and attended the address. Following the initial preliminary inspection of the scene and the casualty with Police Crime Scene Investigators, it was decided that the victims’ most likely cause of death was from smoke inhalation from the small smouldering fire that had occurred within the bedroom on the floor area underneath the window. YEDL were requested and attended the scene to isolate and make safe the electrics in the property which had been affected around the seat of the fire in the bedroom. As it was then dark, it was decided the casualty be removed from the scene to allow a more detailed inspection and the investigation be completed at a later date. Upon return, the joint investigation concluded that the cause of the fire was most likely to have been accidental, but further investigations are ongoing to attempt to identify the source of ignition and item first ignited. At this time the result of the Post Mortem are being awaited to confirm if the death occurred prior to, or as a result of the fire, along with the findings of the Coroner’s inquest into the death.

145

146

OTHER NOTABLE INCIDENTS

LIVES SAVED INCIDENT: 28 Selge Way, Grimsby. Crews were called at 0514 on Friday 11th November to attend a flat fire, from the initial call it was established that there were six flats in this block. Upon arrival, crews were confronted with large volumes of thick black acrid smoke issuing from the open front door of no 28. Three BA teams were instructed to enter the premises with fire-fighting media, for fire-fighting and search and rescue purposes. Shortly after entry the room of origin was fully involved in fire and crews were forced to withdraw for less than two minutes for further gas cooling to take place, and to replace a BA facemask visor that was damaged by extreme heat. A male casualty was rescued from a rear bedroom, and carried to the waiting ambulance for treatment. A fourth BA crew was detailed to complete the search of the property to ensure there were no further casualties, and a fifth crew post incident were used for ventilation purposes to adjacent flats. In total ten BA wearers were used, and four fire-fighting jets 3 x high pressure hose reels and one 45mm main line/Jet, two thermal imaging cameras and two ventilation fans. POTENTIAL FLOODING During the weekend of the 25th November 2011 the Service were made aware of potential flooding to the East coast partially around the Kilnsea and Hessle foreshore area due to above normal tidal conditions between 1900- 2100hrs of the 27th November. As part of the planning process the duty Area Manager responded to the control room where water rescue resources were put on standby for the potential flood, these units prepared water rescue PPE and water rescue equipment for immediate deployment. Each team consisted of a flexi technical recue officer and two swift water technical rescue crews, one team remained in the Hull area and one team was deployed to Goole in case of over topping of flood defences within that area. Although all flood defences held back the tide there was slight leakage at the old dry dock on Humber Street Hull which saw footpaths being closed due to water levels. All crews were stood down at 2200hrs

Agenda Item No.


Report by the Secretary/ Director of People

16

LOCALISM ACT – IMPACT UPON HUMBERSIDE FIRE AUTHORITY

SUMMARY 1. This paper provides an initial and brief outline upon the implications arising from the

Localism Act 2011 in respect to the functions of a Combined Fire Authority. Members will note that the Governance and Standards Committee and Policy and Executive Committee have received regular reports providing updates.

2. In terms of drafting, there appears to have been quite frantic late redrafting of a

number of provisions once the Localism Bill had gone through the House of Lords reporting stage. To that end, the drafting is perhaps not as clear as it might be and much may depend upon subsequent clarification, whether by Regulation or Guidance. There are also a number of anomalies for Combined Fire Authorities, in the sense that some of the provisions are more narrowly drawn than for County Brigades, which are part of a Principal Authority. This might be a quirk, but the Act could have resolved ambiguities.

3. A further report will be circulated at a later date once all the implications for the Fire Authority are clear. There are also opportunities around charging which need to be considered. RECOMMENDATIONS

4. (a) Members are asked to consider this report generally.

(b) Members are asked to agree to the composition of the Governance and Standards Committee under paragraph 17 below until the Third Review of Corporate Governance concludes.

BACKGROUND 5. The Localism Act received Royal Assent on 15 November 2011. Only a limited

number of provisions came into effect on enactment mainly about transitional arrangements. The majority of provisions will come into force in January 2012, the remainder are subject to the Secretary of State making implementation orders, probably by April 2012. The Act is expressed to be about making a ‘substantial and lasting shift in power away from central government towards local people’ and in essence concerns the functions and procedures of local authorities and contains nearly 500 pages. Only a small part of which is relevant to the functions of a Combined Fire and Rescue Authority. The purpose of this report is to provide a brief summary of the main provisions which are relevant to the functions of this Fire Authority as a Combined Fire Authority.

GENERAL POWER OF COMPETENCE

6. As Members will be aware, all Local Authorities will have a general power of

competence, i.e. the general power to do anything which is not prohibited. Fire Authorities are not included in the general power of competence (although by definition County Brigades will be). Fire Authorities will have a more limited extension to current powers, i.e. by clarifying the Authority can:

147

Do anything it considers appropriate for carrying out its functions; Anything incidental to functions Anything indirectly incidental.

7. Current statutory limitations apply (unless later removed), for example it is not

possible to charge for services where there is a duty to deliver a service (see below). No additional borrowing powers are granted. Anything done for a commercial purpose (provided permitted) must be through a trading company or a mutual/cooperative.

CHARGING POWERS

8. The Act amends the Fire Rescue Services Act 2004 by inserting new charging powers, which permit charges to be imposed (agreement is not a necessity in non-commercial situations) on persons for action taken for commercial purposes. However before beginning to charge, an Authority must consult any person it considers appropriate. An Authority may charge different amounts in different circumstances, but in non-commercial cases the charge setting process remains as now in that the Authority must aim to secure that taking one financial year with another the overall income from charging does not exceed the cost of taking the action for which the charges are imposed.

9. As before, the Authority cannot charge for land based fire-fighting and life and

property protection activities nor for emergency medical assistance nor for charging for rescuing or protecting individuals from serious harm in the event of an emergency nor for action taken in response to events of widespread significance, the direct result of severe weather or road traffic accidents. The Authority cannot charge for providing advice on how to prevent fires. Nor can it charge for action taken in its capacity as an enforcing authority under the Fire Safety Order (this does not prevent recovery of prosecution costs on conviction as that is authorised under separate legislation, which Humberside has done so recently).

10. There is a new power to make charges for responding to persistent false reports of fire if the report is of a fire at non-domestic premises and made in consequence of misinstalled or malfunctioning warning equipment under common control.

CODE OF CONDUCT AND STANDARDS

11. As previously reported, Standards for England will be abolished alongside the standards regime and current Standards Committees. Transitional arrangements will be announced. The national Code of Conduct will cease. Authorities (including the Humberside Fire Authority) will be free to adopt a local code, although it seems likely that through the LGA, a national voluntary code may emerge.

12. The Authority will have put in place arrangements under which written allegations about Members alleged to be in breach of a Code can be investigated and decisions on them made and that includes a requirement to make provision for the appointment of at least one independent person whose views are sought and taken into account before it makes a decision of an allegation that it has decided to investigate. The Code must be approved by the Authority.

13. The existing Standards Committee powers to impose sanctions will be revoked and thereafter sanctions will probably be limited to such as issuing a letter of censure to a Member or removing a Member from membership of committees for a period of time. The intention is that it is then up to the electorate to determine whether or not to re-elect someone who may have transgressed, but the Authority itself will no longer be able to suspend the Member and the disqualification powers of the First Tier Tribunal will no longer apply.

148

14. There will be a criminal offence now for the failure to declare a pecuniary interest. DUTY TO PROMOTE STANDARDS

15. The 7 principles of public life (Nolan principles) have been enshrined into the Act. A Code of Conduct must be consistent with those principles (selflessness, integrity, objectivity, accountability, openness, honesty and leadership). There is a positive duty to promote standards.


16. Members will recall that the terms of office of the current Chair of the Governance and Standards Committee was further extended at the September Fire Authority meeting to the end of April 2012. This was to enable clarity around the future of Standards and the Localism Bill. Given late changes to the Bill provisions around standards, then this has proved to be the right approach. The overall governance structure of the Authority is under review and the future structure of that Committee will form part of that review, taking into account now the changes under the Localism Act.

17. In addition, Members should note that Mr Richard Dixon, an Independent Member, has resigned from his position on 9 November 2011. It is suggested that rather than look to appoint to that role, the Committee continues with 3 Independent Members. Should there be the need to populate an Assessment Sub-Committee and an Appeals Sub-Committee, then an approach is made via the joint arrangements currently in place or by request to Unitary Authorities or neighbouring Fire Authorities. PREDETERMINATION

18. There is some relaxation around predetermination in respect to Members giving prior indications of a view. The Act is not particularly clear and no doubt what amounts to predetermination will remain a somewhat objective test. However, the relaxation does not apply to Combined Fire Authorities (i.e. the Humberside Fire Authority). MEMBER INTERESTS

19. There will be new requirements to maintain and publish on the Authority website a register of Members interests. If a Member fails to comply with the new requirements they will be liable to criminal prosecution with a maximum fine of £5,000 and the Court will have a discretionary power to impose up to 5 years disqualification from holding office in any relevant authority. GOVERNANCE

20. It is perhaps worth mentioning that Fire Authorities (along with most District Councils) were not caught by the governance arrangements set down by the Local Government Act 2000. As such, the freedoms to determine an effective governance structure remain a matter for the Fire Authority. The Localism Act now extends those freedoms for local authorities to move away from the restrictions under the 2000 Act. PAY ACCOUNTABILITY

21. Intended to delivery transparency over senior officers pay, the Act requires the Authority to prepare and publish a pay policy statement for financial year 2012/13 and each subsequent year which requires specific approval from the Authority itself with the first statement published not later than 31 March 2012. It will include policies on pay, bonuses and severance terms.

149

PRECEPT

22. The Authority is a major Precepting Authority and the Act will impose new provisions dealing with the right to approve or veto “excessive” precept rises. The current capping regime is to be replaced with a new system under which the Secretary of State will determine a limit for increases which then has to be approved by Parliament. If the Authority proposes to raise taxes above this limit it will have to hold a referendum to get approval for this from local voters who will be asked to approve or to veto the rise.

COMMUNITY RIGHT TO CHALLENGE AND BID FOR ASSETS OF COMMUNITY VALUE

23. Under this part of the Act, voluntary and community groups and local authority employees are to be given the right to express an interest in taking over the running of a local authority service. If the expression of interest is accepted, this will trigger a competitive procurement process under which other commercial organisations might also then bid to provide services. However, as it stands Combined Fire Authorities are not “relevant authorities” for this purpose. The Secretary of State is empowered to designate other bodies for this purpose and, as reported to the last cycle of committee meetings, commenced a consultation process some time ago, which indicated that core operational fire-fighting and rescue services would probably not be exposed to this new process. The position remains unclear and no doubt will be clarified when an Order is made.

24. The Act requires local authorities to maintain a list of assets of community value which have been nominated by the local community who are then given rights to develop a bid and to seek to buy such assets when they come onto the open market. Again Combined Fire Authorities are not currently defined as “local authorities”. OTHER PROVISIONS

25. The Act contains many other provisions, some of which may be indirectly relevant to the Authority. For example, going forward, the development of directly elected mayors and the interface with other legislation, i.e. around elected Police Commissioners, may also signal change. The greater issue of scrutiny and being integral to new scrutiny arrangements will no doubt become clearer. This is more challenging for an Authority which spans four Unitary Authority areas. For the time being it is sufficient to note the thrust of the Act and the broad implications for the Authority. Detail will undoubtedly follow.

STRATEGIC PLAN COMPATIBILITY 26. The Localism Act and other related proposed legislation (e.g. White Paper – Opening

Up Public Services) may impact upon the current Strategic Plan and a longer term Vision for the Service.

FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATIONS

27. As set out above.

LEGAL IMPLICATIONS 28. As set out above.

EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS 29. None arising.

150

CORPORATE RISK MANAGEMENT IMPLICATIONS 30. The Localism Act is a key part of the changing landscape of local government and

links to new Strategic Risk 338. The Act needs to be read in conjunction with the White Paper (Opening Up Public Services) and community budget pilots.


31. None arising directly. COMMUNICATION ACTIONS ARISING 32. None arising. DETAILS OF CONSULTATION 33. None.

BACKGROUND PAPERS AVAILABLE FOR ACCESS 34. None. RECOMMENDATIONS RESTATED 35. (a) Members are asked to consider this report generally.

(b) Members are asked to agree to the composition of the Governance and Standards Committee under paragraph 17 below until the Third Review of Corporate Governance concludes.

R GRAHAM

Officer Contact: Robin Graham 01482 567443 Secretary/Director of People Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull RG/SJ 2 December 2011

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Agenda Item No.

Humberside Fire Authority

13 December 2011

Report by the Secretary/Director of People

17

CORPORATE RISK/OPPORTUNITY MANAGEMENT

SUMMARY

1. Members will be aware that the Authority’s performance and risk management

processes have now been combined in to a single framework. 2. The existing format for risk registers has been refreshed and a new automated

approach using the Service’s information portal will be used, which will vastly improve current approaches to risk creation, risk review, risk referral, risk removal and action planning. This will be demonstrated to Members at the next Member Day.

3. Members will find attached at Appendix 1, the new edition of the Strategic Risk

Register. The Strategic Risk Register contains two new risks/opportunities and refreshed action plans relating to the existing risks/opportunities. The two new risks/opportunities concern the changing landscape of local government and developing options around meeting the financial challenges in years 3 and 4 of the CSR period.

4. The Strategic Risk Register and associated Action Plans can be found at

www.humbersidefire.gov.uk under Fire Authority documents and then clicking on ‘Corporate Risk Management’. Members will be able to click between the Action Plan and the Strategic Risk Register. Should Members wish to receive hard copies of some or all of the Plans, then this can be easily arranged.

5. Members are asked to review the Strategic Risk Register and to provide an

assurance that Members consider that the Register properly reflects the key issues facing the Authority. In addition, through the Committee structure (particularly the Audit, Performance and Scrutiny Committee), Members should be satisfied that the Action Plans are effective and appropriate steps are being taken to further embed and resource corporate risk management.

6. Members are also asked to use the Strategic Risk Register as a tool to drive (in part)

the agenda and discussions at the Fire Authority meetings.

RECOMMENDATIONS 7. Members are asked to consider the Strategic Risk Register and provide an

assurance as to progress in the effective use of risk management. UPDATE 8. Corporate Risk/Opportunity management is received and considered at each

meeting of the three Committees of the Fire Authority (Policy and Executive, Audit, Performance and Scrutiny, and Governance and Standards).

9. The Audit, Performance and Scrutiny Committee has a particular role to play in

reviewing the effectiveness of risk management. The Audit, Performance and Scrutiny Committee receive all ‘red’ risks detailed on Board level Risk Registers.

10. Members are asked to take a broad assurance from progress in the management of

performance and risk. In addition, further assurance can be taken from the role of the Performance & Risk Board and the reporting of Corporate and Board level risks.

153

http://www.humbersidefire.gov.uk/

154


11. Effective corporate risk management will enable the Authority to better achieve its

strategic objectives set out in its Strategic Plan.

FINANCIAL/RESOURCES/VALUE FOR MONEY IMPLICATION 12. None arising directly.

LEGAL IMPLICATIONS

13. None arising directly. The processes underpinning corporate risk management

provides a more robust means to identify and manage legal and regulatory risks. EQUALITY IMPACT ASSESSMENT/HR IMPLICATIONS



15. None arising directly



COMMUNICATION ACTIONS ARISING 17. All the Risk Registers are available for all staff to view, including the Strategic Risk

Register. DETAILS OF CONSULTATION

18. None.

BACKGROUND PAPERS AVAILABLE FOR ACCESS 19. Performance & Risk Framework – APS Committee paper – September 2011 RECOMMENDATIONS RESTATED 20. Members are asked to consider the Strategic Risk Register and provide an

assurance as to progress in the effective use of risk management.

R GRAHAM

Officer Contact: Phil Jackson 01482 567418 Head of Performance & Risk Humberside Fire & Rescue Service Summergroves Way Kingston upon Hull RG/PJ/SJ 2 December 2011

Not Protectively Marked

Date Printed:

Strategic Risk: 342

Next Formal Review Date: 05/03/2012

Risk Or Opportunity Description Risk Owner

Likely Outcomes And Consequences Risk Tracking Effectiveness & Summary Of Action Plan

Likelihood Impact

If grant reductions are as forecast there is a need to reduce the WDS establishment. Options will now be developed to enable the Fire Authority to be able to respond to the challenges ahead.

RH In the event that the WDS establishment cannot be reduced there will be a significant budget shortfall in 2013-15.

7 9

A 63

A

10

90

80

70

60

50

40

30

20

10

0 FS

-Q4

Q1

Q2

Q3

Q4

Q1 % Complete

Q2 % Complete

Q3 % Complete

Q4 % Complete

0

0

01/12/2011

155

jsmith

Stamp


Date Printed:

Strategic Risk: 249




Likelihood Impact

A reduction in external financial support from Government for years 3 and 4 (2013/14 and 2014/15) of the current CSR period 2011-2015. The review of the local government

funding mechanism adds to the uncertainty against a backdrop of reducing Government financial support which has been consistently stated as a

back-loaded 25% real reduction in formula grant for English FRSs over the 4 year period to 2014/15.

KW Lower funding Requirement to make further efficiencies Impact on the service to communities Make medium-term planning more difficult

6 9

A 54

A

10

90

80

70

60

50

40

30

20

10

0 FS

-Q4

Q1

Q2

Q3

Q4

Q1 % Complete

Q2 % Complete

Q3 % Complete

Q4 % Complete

0

0

0

0

50

50

01/12/2011

156


Date Printed:

Strategic Risk: 250




Likelihood Impact

The Strategic Plan 2011-14 comprises a number of key work streams, which provide an opportunity to shape the Service for the future. Those work streams also reflect the Strategic Review

of the Fire & Rescue Service. The challenge ahead is successfully managing those work streams and maximising the opportunities which may be presented to

deliver a more effective and efficient Service.

RH Service design, culture and shape reflects future expectations of HFRS

5 9

B 45

B

10

90

80

70

60

50

40

30

20

10

0 FS

-Q4

Q1

Q2

Q3

Q4

Q1 % Complete

Q2 % Complete

Q3 % Complete

Q4 % Complete

20

20

20

20

50

50

01/12/2011

157


Date Printed:

Strategic Risk: 338




Likelihood Impact

The potential impact of a number of planned or likely changes in local government presents risks and opportunities to the Service. The Localism Act, Public Services White Paper,

Community Budget, alongside other initiatives could result in the Service moving towards a commissioned service, with a number of functions exposed to

potential challenge/competition with fresh scrutiny arrangements.

RG The Vision of the Service needs to take account of changes to be flexible in order to respond to commissioning needs. The way we deliver the Service and are accountable will require new ways of

working and remodelling of the Service structure.

5 8

B 40

B

10

90

80

70

60

50

40

30

20

10

0 FS

-Q4

Q1

Q2

Q3

Q4

Q1 % Complete

Q2 % Complete

Q3 % Complete

Q4 % Complete

0

0

01/12/2011

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fire authority...committee on 20 september 2011 (minute 3629 refers). a member referred to minute...

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