Archived decisions
AT A MEETING of the HAMPSHIRE FIRE AND RESCUE AUTHORITY FINANCE AND GENERAL PURPOSES COMMITTEE held at the Hampshire Fire and Rescue Service Headquarters, Eastleigh on 26 October 2006
PRESENT:
Councillors: P.A. Heath (Chairman); F.E. Beagley; D. Horne; P.R.C. Hutcheson; R.H. Price; R. Smith; M.J. Woodhall.
44 APOLOGIES
Apologies were received from Councillors M.F. Cartwright, K. House and D. Simpson.
45 DECLARATIONS OF INTEREST
Members were mindful that, where they believed they had a personal or personal prejudicial interest in any matter to be considered at the meeting, they should, normally at the time of debate, declare their interest and having regard to the circumstances described in paragraphs 9, 10, 11 and 12 of the Fire Authority's Code of Conduct consider whether to leave the meeting whilst the matter was discussed.
There were no declarations of interest made by members under this item.
46 MINUTES
The Minutes of the meeting held on 27 July, 2006 were confirmed as a correct record and signed by the Chairman subject to the following changes to the minutes which were approved by the Fire Authority on 13 September 2006:
(a) the addition of "to include an assessment of the whole life costs of a rental alternative compared with the ownership option." to recommendation (b) of Minute 38: Asset Management Working Group - 22 June 2006;
(b) and the deletion of "to include an assessment of the whole life costs of a rental alternative compared with the ownership option." from recommendation (d) of Minute 38: Asset Management Working Group - 22 June 2006.
47 DEPUTATIONS
There were no deputations made under this item.
48 BUDGET MONITORING 2006/2007 (2)
The Committee considered the report of the Treasurer and Chief Officer (Item 5 in the Minute Book) detailing the latest budget predictions for the year. Members discussed the costs of work and consultation done in connection with the possible merger with the Isle of Wight Fire Service and felt that a record of costs should be kept for future reference.
RESOLVED:
That, it be a RECOMMENDATION to the Authority that the latest 2006/07 budget position be noted.
49 BUDGET STRATEGY 2007/08
The Committee considered the report of the Treasurer and Chief Officer (Item 6 in the Minute Book) setting out the key budgetary issues for the Authority in the coming year. The Committee were pleased to hear that the objectives which had been set for the budget strategy should be met without difficulty.
RESOLVED:
That, the budget preparation process, with the aim of identifying options that would ensure a council tax increase in line with the current Financial Management Policy, be continued.
50 ASSET MANAGEMENT WORKING GROUP - 16 OCTOBER 2006
The Committee considered the report of the Chief Officer (Item 7 in the Minute Book) summarising the Asset Management Working Group meeting on 16 October 2006. The Working Group reported on several issues in relation to the Authority's built estate and wished to pass on their thanks to Richard Kenchington, the Hampshire County Council consultant responsible for delivering savings of close to £200,000 in relation to a review of non-domestic rates liability.
This item was taken in conjunction with the Chief Officer's report on the Headquarters Development Phase 2 (see Minute 51) as they shared two recommendations. The Working Group made recommendations to the Committee on three issues: the Headquarters Development Phase II, the disposal of housing for day-crewed stations, and the building implications of changing from day- to shift-crewing. There was a full and wide-ranging discussion by Members on the issues involved, with Members concerned that the wording in recommendation 2.3 of the report was too prescriptive in stating only `the existing Winchester Fire Station'. It was, therefore,
RESOLVED:
That it be a RECOMMENDATION to the Authority,
1.1 That provision be made in the Authority's capital programme (2006/07 start) for a scheme [`Headquarters Development: Phase 2'] to provide a new vehicle workshops building at the Headquarters site, Eastleigh at an estimated total capital cost of £4m;
1.2 That approval be given to let a contract using the South East Centre of Excellence (SECE) Project Framework Agreement for the construction of the new building, plant and equipment to Brazier Construction (a division of Kier Regional Limited) at a cost not exceeding £3.7m;
1 That when those houses listed in paragraph 4.2 of the report - which are currently associated with supporting the operation of day-crewed duty system at Andover, Winchester and Havant - become surplus to operational requirements they should be immediately disposed of in accordance with the Authority's housing disposal policy; and that progress on such disposals be reported to future meetings of the Asset Management Working Group and the Finance and General Purposes Committee;
2 That provision be made in the Authority's capital programme at a current estimated cost of £650,000 to cover the cost of necessary building works associated with changing to a shift-crewing duty system at Andover, Winchester and Havant Fire Stations; that officers continue to explore options that would reduce the overall cost of these works, given that only a short-term solution may be necessary at Winchester if the Authority eventually agrees to redevelop the Station at the current vehicle workshops site.
51 PHASE 2: PROVISION OF NEW VEHICLE WORKSHOPS - PROJECT APPRAISAL
The Committee considered the report of the Chief Officer (Item 8 in the Minute Book), setting out the project appraisal for the provision of new vehicle workshops, in conjunction with the report of the Asset Management Working Group Meeting on 16 October 2006. The resolutions were agreed and are recorded in Minute 50 as 1.1 and 1.2.
52 "FIREBUY" - PROPOSAL TO CREATE A FIRE AND RESCUE SERVICES MUTUAL INSURANCE COMPANY TO PROCURE INSURANCE COVER
The Committee considered the report of the Chief Officer (Item 9 in the Minute Book) on the proposal to establish a mutual insurance company for fire and rescue authorities. Officers highlighted the significant savings that would be associated with such a venture, being in the region of £85,000 per year. The Committee discussed the associated risks but agreed that the potential benefits warranted further consideration, and it was therefore,
RESOLVED:
That it be a RECOMMENDATION to the Authority,
1. That the Authority agrees in principle to participate in establishing a Fire and Rescue Authorities Mutual Insurance Company (the Mutual) for the reasons and on the basis set out in the report.
2. That, subject to the Clerk, Treasurer and Chief Officer being satisfied with the detailed contractual and governance arrangements for participating in the proposed Mutual and subject to reporting back to this Committee, the Authority becomes a full member of the company and authorises the Chief Officer in consultation with the Clerk and Treasurer to take all necessary steps to achieve this.
3. That, subject to the caveat in recommendation 2 above, the Authority purchases its corporate property, liability, motor insurance and other miscellaneous insurance requirements for a minimum period of one year through the Mutual with effect from 1 July 2007 [or the expiry date of any Long Term Agreements], but that in the event that the Mutual is unable to assume risk by that date the Chief Officer be authorised to arrange interim insurance cover as detailed in recommendation 7.
4. That the Director of Corporate Services be nominated as the Authority's representative on the Mutual and be empowered to represent and vote on behalf the Authority at general meetings of the Mutual.
5. That the Authority agrees in principle to participate in capitalising the company by way of an initial cash contribution of £26,121 and an additional financial guarantee of no more than £287,333 and authorises the Chief Officer to take all necessary steps to achieve this.
6. That the Authority agrees to waive the usual standing orders relating to contracts in view of the fact that the procurement in this case is being pursued through Firebuy.
7. That, in anticipation of the Authority potentially participating in the Mutual with effect from 1 July 2007 and if for any reason that the proposed start date for the Mutual is delayed, the Chief Officer be authorised to extend existing insurance cover arrangements (due to expire on 31 March 2007) until 30 June 2007 and on a monthly basis up to 31 March 2008 thereafter.
53 CODE OF PRACTICE RELATING TO CONTRACTS
The Committee considered the report of the Chief Officer (Item 10 in the Minute Book) on the annual report of contracts for goods and services likely to exceed £50,000.
RESOLVED:
That the annual presentation of the Code of Practice report changes from July to April, starting in April 2008, be approved.
54 REPLACEMENT OF OBSOLETE CONTROL ROOM AND STATION-END MOBILISING AND COMMUNICATIONS EQUIPMENT
The Committee considered the report of the Chief Officer (Item 11 in the Minute Book) setting out the operational and financial details of the replaced information and communications technology.
RESOLVED:
That the report be noted.
55 CESSATION OF DAY CREWING DUTY SYSTEM: TRANSITIONAL ALLOWANCES TO STAFF
The Committee considered the report of the Chief Officer (Item 12 in the Minute Book) detailing the financial implications of paying transitional allowances to staff in light of the change from day- to shift-crewing. A report on the merits of awarding such allowances will be taken to the Human Resources Committee on 1 December 2006. Members of this Committee were required to look at only the financial case for transitional allowances. Members discussed the various factors involved and understood the need to ensure equitable treatment for all staff.
RESOLVED:
That, in the event the Human Resources Committee agrees at its meeting on 1 December 2006, to recommend to the Authority the payment of transitional allowances arising from the cessation of the day-crewing duty system, it be a RECOMMENDATION to the Authority, by this Committee:
That the financial implications of the proposed allowances be acknowledged and that the costs of implementation be included in the draft budget proposals for 2007/08 and 2008/09.
56 VEHICLE REPLACEMENT PROGRAMME 2007/08 TO 2009/10
The Committee considered the report of the Chief Officer (Item 13 in the Minute Book) on the vehicle replacement needs for the next three financial years.
RESOLVED:
That it be a RECOMMENDATION to the Authority,
1. That, subject to the approval of the overall capital programme by the Authority, the vehicles replacement programme 2007/08 - 2009/10 be approved.
2. That, for the reasons set out in paragraph 5 in the report, the contract for the 2007/08 pumping appliances be let to Emergency One (UK) Ltd.