London Fire Brigade

Agenda and minutes

Resources Committee
Friday, 17 March 2017 10.30 am

Venue: City Hall, The Queen's Walk, London, SE1 2AAL

Contact: John Johnson, Ground Floor, 169 Union Street, London, SE1 OLL; telephone: 30084; e-mail:  JOHN.JOHNSON@london-fire.gov.uk 

Items
No. Item

1.

Apologies for Absence

Minutes:

There were no apologies for absence.

2.

Disclosures of Interests and Dispensations

Clerk to Authority – Known details of membership of the GLA, other functional bodies and London Boroughs are attached as an Appendix to this agenda.  The Appendix does not remove the need for a Member to declare at the meeting an interest (whether or not listed in the Appendix) in any relevant item on the agenda paper and to state also the nature of that interest. 

Minutes:

Resolved – That the details of membership of the GLA, other functional bodies and London Boroughs, as attached as an appendix to the agenda, be noted.   No further disclosures were made.

 

3.

Minutes pdf icon PDF 104 KB

Minutes of the meeting held on 13 January 2017.

Minutes:

Resolved – That the minutes of the meeting of the Resources Committee held on 13 January 2017 be signed as a true record.

 

4.

Resources Committee - Summary List of Actions - FEP 2707 pdf icon PDF 86 KB

Clerk to the Authority – reporting on actions arising from a previous meeting of the Committee.

 

Additional documents:

Minutes:

Report by the Clerk to the Authority.

 

The motion was made by the Chair – That the ongoing and completed actions arising from a previous meeting of the Committee, as set out in the report, be noted.

 

The motion was seconded by Andrew Dismore AM, put and agreed.

Resolved – accordingly.

 

5.

2017/18 Budget - FEP 2708 pdf icon PDF 877 KB

Director of Finance and Contractual Services – presenting the Authority’s final draft revenue and capital budget for 2017/18 for the Committee’s consideration and recommendation, and for the Authority’s decision.

 

[For Authority also]

 

Minutes:

Report by the Director of Finance and Contractual Services.

 

The Director of Finance and Contractual Services introduced the report, confirming that this was the final budget for 2017/18 for approval by the Authority on 30 March.  The report showed an improved position largely as a result of the draft outcome of the Local Government Pension Scheme (LGPS) revaluation. The intention was to reinvest the surplus over the following 3 years in order to reduce the gap in the fourth year to £8.3m, which could be further reduced by the use of reserves, as set out in the report.

 

The Director of Finance and Contractual Services referred to correspondence received

from Unison which had been tabled, and which commented on various future savings proposals.  Officers would be submitting a supplementary report to the Authority on 30 March, attaching the letter and setting out officers’ responses.

 

The Director of Finance and Contractual Services, along with the Director of Operations, answered questions from Members.  Officers agreed to provide further information to Members on how the Apprenticeship Levy will work, including in terms of when money can be drawn down and used for budgeting purposes.

 

The Commissioner answered questions from Members on some of the future savings proposals outlined in the report.  In response to further questions from Members, the Director of Finance and Contractual Services confirmed that officers would be discussing with the London Pensions Fund Authority any possible further savings as a result of the LGPS revaluation.

 

The Chair thanked the Director of Finance and Contractual Services and her staff for all their hard work in finalising the budget.

 

The motion was made by the Chair – That the Authority agree that –

 

1.             A 2017/18 revenue budget of £382.4m be approved, being made up of net expenditure of £391.1m with £2.6m funding from the earmarked reserves, £12.2m funding from specific grants and a payment of £6.2m to the budget flexibility reserve;

2.             The revenue estimates, as set out in Appendices 1, 3 and 4 of the report, showing proposed savings, growth and budget movements, are approved;

3.             The establishment changes associated with the revenue budget, as set out in Appendices 1, 3 and 4, are approved; and

4.             The capital programme with gross expenditure in 2017/18 of £49.3m, as set out in Appendix 6, be approved.

The motion was seconded by Andrew Dismore AM, put and agreed.

Resolved – accordingly.

 

6.

Financial Position as at the end of December 2016 (Quarter 3) - FEP 2709 pdf icon PDF 668 KB

Director of Finance and Contractual Services – presenting the financial position as at the end of December 2016  and providing information on financial performance against revenue and capital budgets.

 

 

Minutes:

Report by the Director of Finance and Contractual Services.

 

The Director of Finance and Contractual Services introduced the report, confirming the forecast underspend of £7.9m (around 2%) which, since last reported, had increased by around £1m due to staff vacancies and various savings as set out in the report.

 

The Director of Finance and Contractual Services, the Director of Operations and the Head of Human Resource Management answered questions from Members on the underspend, currency fluctuation, leaver numbers, mutual assistance, Bromley fire station, energy targets and Automatic Fire Alarms (AFAs).  The Director of Operations agreed to forward a previous paper to Members which detailed the proposed strategy for dealing with AFAs going forward.

 

The motion was made by the Chair – That the Committee:

 

1.             Agrees that the Head of Procurement and Technical and Service Support accepts the proposed price of £243k each for the further batch of 73 replacement pumping appliances that will be purchased by Babcock within the Vehicles and Equipment contract services. The additional cost for the second batch of appliances of £420k will be contained within the existing fleet capital budget;

 

2.             Notes the outcome on the compensation payment relating to property PFI of  £381k; and

 

3.             Notes that £373k of outstanding AFA charges have been written off, with the cost charged to the bad debt provision, which had previously been set aside for this purpose.

 

The motion was seconded by Andrew Dismore AM, put and agreed.

Resolved – accordingly.

 

7.

Treasury Management Strategy Statement for 2017/18 - FEP 2710 pdf icon PDF 637 KB

Director of Finance and Contractual Services – reporting in accordance with Financial Regulations.

 

[For Authority also]

Minutes:

Report by the Director of Finance and Contractual Services.

 

The Director of Finance and Contractual Services introduced the report and answered questions from Members concerning treasury management governance arrangements following abolition of LFEPA which were currently being debated, and future borrowing.

 

The motion was made by the Chair – That the Authority be recommended to approve the contents of the Treasury Management Strategy Statement.

 

The motion was seconded by Andrew Dismore AM, put and agreed.

Resolved – accordingly.

 

8.

Attendance Update - FEP 2711 pdf icon PDF 751 KB

Head of Human Resource Management – providing an update on attendance management performance up to 31 December 2016.

Minutes:

Report by the Head of Human Resource Management.

 

The Head of Human Resource Management introduced the report and, along with the Director of Operations, answered questions from Members.

 

Officers confirmed that they were currently analysing why, for the first time since 2013, Stress, Anxiety and Depression (SAD) had been one of the top three reasons for sickness of operational staff. There seemed to be no link to co-responding, and officers said it might be related to there being less stigma attached to SAD and, accordingly, a greater willingness on the part of staff to report it.  Following further questions from Members, officers agreed to report to the Authority meeting on 20 April 2017 with sickness (and SAD) data over the last year by station/borough to enable any patterns to be identified.

 

The motion was made by the Chair – That:

 

1.             The report be noted; and

2.             Officers report to the Authority meeting on 20 April 2017 with sickness (and SAD) data over the last year by station/borough to enable any patterns to be identified.

The motion was seconded by Andrew Dismore AM, put and agreed.

Resolved – accordingly.

 

9.

LFEPA - Local Pay Policy - FEP 2712 pdf icon PDF 173 KB

Head of Human Resource Management – reporting on the Authority’s formal pay policy statement for 2017/18 in accordance with the requirements of the Localism Act 2011.

 

[For Authority also]

 

Additional documents:

Minutes:

Report by the Head of Human Resource Management.

 

The Head of Human Resource Management introduced the report.

 

The motion was made by the Chair – That the Authority approves the Local Pay Policy set out in Appendix 1 to the report.

 

The motion was seconded by Andrew Dismore AM, put and agreed.

Resolved – accordingly.

 

10.

Integrated Equipment and Logistics Project - Update - FEP 2713/A pdf icon PDF 122 KB

Head of Procurement, and Technical and Service Support – updating the Committee on the progress of the project.

Additional documents:

Minutes:

Report and supplementary report by the Head of Procurement and Technical and Service Support.

 

The Head of Procurement and Technical and Service Support introduced the item, drawing Members’ attention to the supplementary report attaching comments from Unison, and officers’ response.

 

The motion was made by the Chair – That the report and supplementary report be noted.

 

The motion was seconded by Andrew Dismore AM, put and agreed.

Resolved – accordingly.

 

11.

Asset Management Plan (Property) 2017 - FEP 2714 pdf icon PDF 296 KB

Head of Procurement, and Technical and Service Support – presenting the draft Asset Management Plan for approval.

 

Additional documents:

Minutes:

Report by the Head of Procurement and Technical and Service Support.

 

The Head of Procurement and Technical and Service Support introduced the report and answered questions from Members regarding the station priorities listed in paragraph 80 of the report, other estate improvements, and officer accommodation (‘camp out’).

 

The motion was made by the Chair – That the Committee:

 

1.             Notes  this report;

2.             Approves the appended  draft  of the Asset Management Plan (2017) at Appendix 1;

3.             Approves the proposed capital works for the Forward Capital Programme to be agreed as part of the annual budget setting process as follows -

(i)            Heating works at Chelsea, Fulham and Kingston fire stations (paragraphs 18 to 29) at a total project estimated project cost of £1.425 million chargeable to the Capital Programme at £1.390 million in 2017/18 and £35k in 2018/19; and

(ii)          Yard and forecourt improvements at New Cross fire station (paragraphs 30 to 38) at a  total project estimated cost of £450k chargeable to the Capital Programme at £435k in 2017/18 and £15k in 2018/19; and    

4.             Authorises the Head of Procurement and Technical and Service Support, after consultation with the Head of Legal and Democratic Services, to invite competitive tenders in accordance with the Authority’s Code of Practice on Tenders and Contracts, for the works in 3 i) and 3 ii) above and to accept the most economically advantageous tender, subject to the overall cost being within 5% of the predicted costs shown.

The motion was seconded by Andrew Dismore AM, put and agreed.

Resolved – accordingly.

 

12.

8 Albert Embankment Update and Deferred Payment Options - FEP 2715 pdf icon PDF 87 KB

Head of Procurement, and Technical and Service Support – updating on progress for the submission of the planning application for the redevelopment of the 8 Albert Embankment site.  Options regarding the possibility of deferring receipt of payment for the site are set out in the Part II Report FEP 2715X.

 

Minutes:

Report by the Head of Procurement and Technical and Service Support.

 

The motion was made by the Chair – That the report be noted and the recommendations contained in the Part II report be considered.

 

The motion was seconded by Andrew Dismore AM, put and agreed.

Resolved – accordingly.

 

13.

Judgment of an Employment Tribunal - FEP 2716 pdf icon PDF 77 KB

Commissioner – updating the Committee on discussions with the FBU following the Employment Tribunal Judgment.

 

Minutes:

Report by the Commissioner.

 

The motion was made by the Chair – That the report be noted and that consideration be given to the recommendations set out in the Part 2 report.

 

The motion was seconded by Andrew Dismore AM, put and agreed.

Resolved – accordingly.

 

14.

Urgent Business

Any other items which the Chair decides are urgent.

Minutes:

There was no urgent business.

 

15.

Exclusion of Press and Public

The Committee is recommended to agree to exclude the public and press from the meeting, in accordance with paragraphs 3, 4, 5 and 7a of Schedule 12A of the Local Government Act 1972 (as amended), in order to consider the following items of business.

Minutes:

Resolved – That the press and public be excluded from the meeting for the following items of business, in accordance with paragraphs 3, 4, 5 and 7A of Schedule 12A of the Local Government Act 1972 (as amended).

 

16.

8 Albert Embankment Update and Deferred Payment Options - FEP 2715X

Head of Procurement, and Technical and Service Support – reporting on payment options.

Minutes:

Report by the Head of Procurement and Technical and Service Support.

 

The Head of Procurement and Technical and Service Support introduced the report.

 

The motion was made by the Chair – That the recommendations as set out in the report be agreed.

 

The motion was seconded by Andrew Dismore AM, put and agreed.

Resolved – accordingly.

 

17.

Judgment of an Employment Tribunal - FEP 2716X

Commissioner – providing further information.

Minutes:

Report by the Commissioner.

 

The Head of Human Resource Management introduced the report and answered questions from Members.

 

The motion was made by the Chair – That the Authority enters into a further Standstill Agreement with the FBU, expiring on 30 October 2017, so that the negotiations relating to the other redeployment deductions may continue.

 

The motion was seconded by Andrew Dismore AM, put and agreed.

Resolved – accordingly.

 

18.

Urgent Exempt Business

Any other exempt items which the Chair decides are urgent.

Minutes:

There was no urgent exempt business.