Prior to the start of the meeting, information regarding general housekeeping was provided by the Chair to all in attendance.

The Chair confirmed to all present that the proceedings of the meeting would be filmed and requested that any members of the public present who objected to being filmed, make themselves known.

No members of the public voiced any objection therefore the meeting was declared open and recording commenced.

Members were informed that there had been a change of appointment to MFRA by Wirral Council, who had replaced Cllr Chris Meaden, with Cllr Adrian Jones. 

The Chair advised that Cllr Adrian Jones was in attendance; and welcomed him to MFRA on behalf of the Authority.

Members are requested to consider the identification of:

a)    Declarations of interest by individual Members in relation to any item of business on the Agenda

b)    Any additional items of business which the Chair has determined should be considered as matters of urgency; and

c)    Items of business which may require the exclusion of the press and public during consideration thereof because of the possibility of the disclosure of exempt information.

·         Agenda Item 6, “TENDER FOR THE PROVISION OF INSURANCE SERVICES” contains EXEMPT information by virtue of Paragraph (3) of Part 1 of Schedule 12A to the Local Government Act 1972. 

Members considered the identification of declarations of interest, any urgent additional items, and any business that may require the exclusion of the press and public.

Resolved that:

a)  no declarations of interest were made by individual Members in relation to any item of business on the Agenda

b)  no additional items of business to be considered as matters of urgency were determined by the Chair; and

c)  the following items of business required the exclusion of the press and public during consideration thereof, due to the possible disclosure of exempt information:

·         Agenda Item 6 “Tender for the Provision of Insurance Services” contains EXEMPT information by virtue of Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972.

The minutes of the previous meeting held on 18^th October 2018, are submitted as a correct record and for signature by the Chair. 

The Minutes of the previous meeting of the Authority held on 18^th October 2018, were approved as a correct record and signed accordingly by the Chair. 

To consider Report CFO/001/19 of the Chief Fire Officer, concerning how the Authority plans to align its physical asset base with its corporate goals and objectives over the next 5 years (2019/20 – 2023/24).

Members considered report number CFO/001/19 of the Chief Fire Officer, concerning how the Authority plans to align its physical asset base with its corporate goals and objectives over the next 5 years (2019/20 – 2023/24).

Members were advised that the Asset Management Plans take account of the financial challenge faced by the Authority and consequently the changes that are likely to be necessary in order to continue to meet requirements and expectations of both internal and external service users.

Members were informed that the Asset Management Plans cover three areas: Estates, ICT and Transport, with each plan detailing how the Authority will utilise its assets to achieve the goals contained within the Integrated Risk Management Plan.

Members resolved that:

the revised Asset Management Plans provided as Appendices to this report, be approved.

To consider Report CFO/009/19 of the Treasurer, concerning information to allow Members to set a medium term capital and revenue financial plan that allocates resources in line with the Authority’s strategic aims and ensures that the Authority delivers an efficient, value for money service. This will allow the Authority to determine a budget for 2019/20 and a precept level in line with statutory requirements.

Members considered report number CFO/009/19 of the Treasurer, concerning the setting of a medium term capital and revenue financial plan that allocates resources in line with the Authority’s strategic aims and ensures that the Authority delivers an efficient, value for money service. This will also allow the Authority to determine a budget for 2019/20 and a precept level in line with statutory requirements.

Members were informed that the proposed financial plan will deliver the funding required to implement the Chief Fire Officer’s proposals around re-investing in operational response and protection services, to meet the risks identified within the draft 2019-21 IRMP Supplement.

The Budget and Financial Plan key assumptions, were outlined to Members, which are that Annual Pay awards will not exceed 2%, the Government will make a £2.1m contribution from 2020/21 towards the £2.8m increase in FPS employer rates following Government changes to the scheme: and from 2020/21 the Government financial settlement for the Authority will increase by 1.5% per annum.  

Members were provided with a detailed overview of the report, which highlighted the proposed 5 year capital programme and prudential borrowing requirement, the Minimum Revenue Provision set aside each year to repay debt associated with capital expenditure; and the prudential indicators to determine the affordability and sustainability of the proposed capital investment.

The Authority’s Treasury Management Strategy, was outlined for Members, which proposes an investment strategy consistent with the current strategy, continuing with the current institutional limits and minimum credit ratings. 

Members were advised that all costs associated with the proposed 5 year capital programme and prudential borrowing have been built into the proposed medium term financial plan and the associated borrowing is deemed to be sustainable and affordable. 

Members were informed that additional costs and funding has been identified since the approval of the 2018/19 plan, which has now been built into the proposed 2019/20 Plan.  As a result of those changes, although the 2019/20 financial position remains balanced, a £1m financial challenge from 2020/21 has been identified.

Possible saving options for the Authority to consider in order to re-balance the proposed financial plan from 2020/21, were highlighted to Members; which include repaying historic debt off early to free-up debt servicing budget; and assuming that the forecast improvement in the LGPS fund position materialises following the 2019 actuarial review, which would make the current £0.8m budget committed to the repayment of the historic deficit contributions available. 

Members were asked to note that there is a small outstanding financial balance remaining from 2022/23, due to the significant uncertainty around future years’ spending and funding assumptions.

The anticipated reserves over the financial plan period and the proposed use of these reserves, was highlighted to Members, which recommends maintaining a general fund reserve at the current level of £2m which equates to 3% of the net operating expenditure budget. It was also highlighted that most of the £23m of committed reserves, is expected to be utilised over the next 2 years.

Members were advised that for the revenue budget to  ...  view the full minutes text for item 4.

To consider Report CFO/010/19 of the Chief Fire Officer, concerning the release of the draft 2019-21 Supplement to the Integrated Risk Management Plan (IRMP) 2017-20 for a period of 12 weeks’ consultation prior to adoption and implementation, whilst noting that the proposals outlined within the IRMP may change to reflect the views expressed during the consultation process.

Members considered report number CFO/010/19 of the Chief Fire Officer, concerning the release of the draft 2019-21 Supplement to the Integrated Risk Management Plan (IRMP) 2017-20 for a period of 12 weeks’ consultation prior to adoption and implementation, whilst noting that the proposals outlined within the IRMP may change to reflect the views expressed during the consultation process.

Members were informed that following on from the Budget Strategy Day on 24th January 2019, Officers had been lobbying the Government extensively to secure additional funding for a long term investment in MFRA. However, in the short-term, the position would not be altered; and MFRA will need to continue to deliver against the proposals within the current IRMP.

Members were advised that the recent challenges and emerging risks, had given Officers some cause for concern. This has prompted the proposals within the 2019-21 IRMP Supplement, which if approved will result in a re-investment in front line services for the first time in a long time. 

It was highlighted to Members that the National Framework places a duty on FRA’s to assess all foreseeable risk, locally and nationally; and put arrangements in place to enable them to reduce or address those risks. Members were informed that such considerations have been given when identifying the proposals within the draft 2019-21 IRMP Supplement.

They were advised that the proposals would see an improvement in our resilience and emergency response, by having up to 30 fire appliances available day and night (a combination of wholetime and retained). This would be achieved by introducing multiple fire engines at three stations, in a “hybrid” model, with each providing 2 fire engines immediately available during the day with 1 retained; and 1 fire engine immediately available during the night with 2 retained.  Members were advised that if this is implemented, night-time cover would remain at Liverpool City and Wallasey Community Fire Stations.

The proposals around investment in Protection, were then highlighted to Members, which would see an increase in the Protection establishment by 5 Protection Officers, the introduction of a Fire Engineer role; and support the development of a new management information system. Members were informed that these proposals would address issues raised within the HMICFRS 1^st Tranche Report and the Hackett Review.

In terms of response, Members were informed that the proposals are to increase the number of Firefighter roles from 620 to 642, establish a ridership factor of 5 at key locations, re-establish Crew Managers at key locations; and maintain night time cover at Liverpool City and Wallasey. Response to terrorist attacks and marine/ flood related incidents, will also be enhanced; and specialist appliances will be re-distributed to align with the new hybrid model.   

Members were advised that the proposed changes require the Authority to invest £1m, so as previously approved, underspend will be utilised to reduce debt, in order to release the revenue required. 

Members were informed that the proposals will also enable MFRA to continue to recruit Firefighters, staff the Combined Platform Ladder on  ...  view the full minutes text for item 5.

To consider Report CFO/008/19 of the Monitoring Officer, concerning the award of contract for the provision of insurance services.

This Report contains EXEMPT information by virtue of Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972.

Members considered report number CFO/008/19 of the Monitoring Officer, concerning the award of contract for the provision of insurance services.

Members were advised that the Authority’s current contract of insurance is due to expire on 31^st March 2019; and a procurement exercise has therefore been undertaken to ensure best value is acquired from the new provider and that there is a continuity of cover. 

Members were informed that the Tender was split into 5 lots, as follows, with bids received for all 5 lots:

·         Lot 1 Property

·         Lot 2 Liability/Crime

·         Lot 3 Motor Fleet

·         Lot 4 Business Travel: and

·         Lot 5 Cyber Liability.   

Members were advised that Officers had considered changes to some insurance provisions, which were highlighted, along with the savings identified should the recommendations within the report be approved.

Members queried who the Official’s Indemnity covered and were informed that it covers Officers and Members. 

Members resolved that:

a.    the award of Lots 1-4 to Zurich Municipal, be approved;

b.    the award of Lot 5 to Risk Management Partners, be approved;

c.    the level of Official’s Indemnity insurance cover will increase to £5million with a £250,000 excess, be approved;

d.    the increase of level of cover for Libel and Slander to £5million with an excess of £250,000, be approved; and

e.    the utilisation of the insurance premium saving of £121,900 from 2019/20 to;

                                          i.    increase in the self-insurance and excess payments budgets by £21,900, and

                                        ii.    that the remaining £100,000 saving be taken into account in the proposed 2019/20 Medium Term Financial Plan.   

f.     The award of contract for a period of three (3) years with the option to extend for a further two (2) years, be approved.

i.