LIMERICK REORGANISATION IMPLEMENTATION GROUP (LRIG) Limerick City Council Limerick County Council IMPLEMENTATION PLAN to the MINISTER FOR THE ENVIRONMENT, COMMUNITY AND LOCAL GOVERNMENT DECEMBER 2012 Table of Contents Foreword 3 1.0 4 Background 1.1 Initial Report and Recommendations – March 2012 4 1.2 Progress Report and Recommendations – July 2012 4 2.0 A New Model of Local Government in Limerick 6 2.1 The Challenges and Opportunities for Local Government in Limerick 6 2.2 Organisation Structure for Joint Service Delivery 6 2.3 3.0 Implications of Local Government Reform for the New Management Structure Progress to Date 7 9 3.1 Methodology 9 3.2 The Work Programme to November 2012 9 3.3 Overview of Key Developments to Date 4.0 10 3.3.1 Economic Development in Limerick 10 3.3.2 Limerick – National City of Culture 2014 12 3.3.3 Regeneration 12 3.3.4 Financial Planning 13 3.3.5 Governance Arrangements 13 Pointing the Way Forward 15 4.1 Corporate HQ and Identity for the new Limerick Local Authority 15 4.2 Developing the Service Delivery Model 15 4.3 Strengthening the Project Management Arrangements 15 4.4 Completion of Service Unit Plans 16 4.5 Development of a Workforce Plan 16 4.6 Legislation to Underpin the Establishment of the New Authority 17 4.7 Economic Development and the Rebranding of Limerick 17 4.8 Regeneration 17 4.9 Joint Arrangements with Clare County Council 18 4.10 Financial Planning 18 5.0 Conclusions and Recommendations 19 APPENDIX 1 Terms of Reference 231 APPENDIX 2 Legislative Issues 23 Foreword The vision for local government reform of the Minister for the Environment, Community and Local Government recently published in Putting People First – Action Programme for Effective Local Government “sees local government leading economic, social and community development, as well as delivering efficient services that are good value”1. The merging of Limerick City and County Councils presents a unique opportunity to create an organisation and structures that allow the new Limerick Local Authority to proactively respond to the current and future challenges and opportunities in Limerick. This Implementation Plan aims to outline key developments to date and to set out the road map for the reorganisation and transformation of local government in Limerick. It is designed to provide an overview of the strategy and a framework to ensure the successful merger of Limerick City and County Councils by June 2014. It presents an outline of the new Limerick Local Authority’s role in relation to economic development and its mission in relation to sustaining and creating jobs. The vision for the new authority also affirms the need for the authority to embrace change, modernise, transform and adapt to new financial circumstances and deliver even better services with scarcer resources. I wish to record my thanks to past and current members of the Limerick Reorganisation Implementation Group, the project support team and the management teams and staff of both local authorities for their work and commitment in the preparation of this Plan. I also acknowledge the contribution and constructive engagement which the Implementation Group has had in the course of its work with a wide range of stakeholders in Limerick, including the elected members of both local authorities, third level institutions, business community, communities in the regeneration areas, staff and trade unions. Denis Brosnan Chairman Limerick Reorganisation Implementation Group December 2012 1 A statement by the Minister for the Environment, Community and Local Government, Mr. Phil Hogan on the publication of “Putting People First – Action Programme for Effective Local Government”, Department of the Environment, Community and Local Government, Dublin, October 2012. 3 1.0 Background 1.1 Initial Report and Recommendations – March 2012 In March 2012, the Limerick Reorganisation Implementation Group (LRIG) presented its Initial Report to the Minister, which was prepared in accordance with the requirements of its Terms of Reference (See Appendix 1). The purpose of this Initial Report was to: Identify and explore the key issues and challenges involved in merging the two Limerick local authorities and the Limerick Regeneration Agencies, in the transition phase and post the establishment of the new authority; Identify early priorities and “early wins” in the area of joint service delivery in advance of the new authority being established; Identify the changes in legislation required to enable effective interim joint service delivery arrangements and the establishment of the new authority; Identify the next steps in the reorganisation process. The main recommendations of the LRIG in this Initial Report were that: 1. The Department of the Environment, Community and Local Government (DOECLG) immediately advance the process for the selection of a Manager/CEO Designate to lead the new authority and to act as the Manager of the two existing local authorities until June 2014; 2. The DOECLG progress the drafting and enactment of the necessary legislation to provide for the establishment of the single authority by June 2014; 3. The Department progress with the preparatory work required in advance of the establishment of an Electoral Area Committee to make recommendations on the number of elected members and the formation of electoral areas for the single authority in 2014; 4. The senior management structure for the new authority should be comprised of a Manager/CEO, 6 Director of Services and 1 Head of Finance, including dedicated Directorates for Regeneration and for Economic Development; 5. Pending the establishment of the new authority, an Office for Regeneration be set up and a Director of Services be appointed with responsibility for this office who will report to the Manager/CEO designate of the new authority; 6. A dedicated project team be established to assist in the preparation of the Implementation Plan and to oversee the introduction of joint service provision. 1.2 Progress Report and Recommendations – July 2012 A Progress Report was submitted to the Minister in July 2012 with an update on developments in relation to the Initial Report recommendations and other matters related to the amalgamation. A number of themes and recommendations, building on the priorities documented in the Initial Report, were identified by the LRIG in its Progress Report including: A new more efficient and unified service delivery model is being developed; 4 A new senior management structure involving a reduction of 40% in senior grades; Substantial savings to be realised on pay and non-pay administrative costs; Cost savings of €6.1m are required to be identified by January 2015 in order to reduce commercial rates in Limerick City to the County level; Further savings as a result of economies of scale and other local government reform measures; A detailed Workforce Plan is to be prepared which will match the new local authority’s organisational needs with human and financial resources; The HQ of the new authority is likely to be located in Limerick City Hall; A number of initiatives are proposed to rebrand Limerick in order to create a new and positive image for Limerick based upon its rich cultural and sporting heritage; The amalgamation will provide an unprecedented opportunity to set economic development at the centre of local government reform and will place the focus on Limerick City as a driver for economic development in the Mid-West Region; The new Limerick Local Authority will lead the revitalisation of Limerick city centre, including the redevelopment of strategic derelict sites; An independent consultant will work with the elected members of both local authorities to prepare a report on governance arrangements for the new local authority; and A new Directorate for Regeneration will be established. It was envisaged that a comprehensive Implementation Plan detailing the operational and other measures leading to the establishment of the single authority in 2014 would be completed and submitted to the Minister in November 2012. 5 2.0 A New Model of Local Government in Limerick 2.1 The Challenges and Opportunities for Local Government in Limerick The key issues and challenges facing Limerick were also highlighted in the Mid-West Task Force Final Report. The Limerick Reorganisation Implementation Group identified similar issues and challenges in its Initial and Progress Reports to the Minister for the Environment, Community and Local Government, in March and July 2012 respectively. In particular, the LRIG highlighted matters in relation to: 1. 2. 3. 4. 5. 6. The identification of a City with a population of around 100,000; The development of a new service delivery model for local government in Limerick; Defining the role of the new authority in relation to Enterprise and Employment; Revitalising Limerick City Centre; Regeneration Areas in Limerick City; Financial challenges in bring about a saving of €15m in the long-term and €6.1m in the shortterm to bring about the equalisation of rates between the City and County; 7. Corporate identity issues. An analysis of alternative models of local government in Ireland and internationally was carried out. The results of this analysis informed the development of a service delivery model and structures that best met the needs of the new authority. In outlining the proposals for the merger, the LRIG also took into consideration the recent proposals for local government reform published by the Minister for the Environment, Community and Local Government in Putting People First - Action Programme for Effective Local Government. The LRIG is in agreement with the Minister’s reform proposals that the new local authority should play a lead role in: Economic development and job creation through a new dedicated Strategic Policy Committee for Economic Development a specific Director of Services for Economic Development; The regeneration of Limerick City; Efficient delivery of services and increased responsiveness to stakeholder needs through the appointment of a Customer Services Officer and customer service initiatives; Developing a high performance organisation with a competency based framework at its core. 2.2 Organisation Structure for Joint Service Delivery The organisation structure for the new Limerick Local Authority as first envisaged by the LRIG was outlined in the Initial Report to the Minister. This structure comprised of a Manager, 6 Directors of Services and 1 Head of Finance. Following the appointment of Mr Conn Murray as the Manager of the Limerick Local Authorities in August 2012, further consideration was given to the appropriate management structure for the new 6 authority. The management structure put in place since early November 2012 for joint service delivery, together with the proposed structure post-2014, are shown in Fig. 1 below. 2.3 Implications of Local Government Reform for the New Management Structure Putting People First - Action Programme for Effective Local Government notes that “In keeping with public service reform generally, local government structures will be streamlined and strengthened. The disparate array of 114 local authorities at present will be replaced by 31 City and County Councils, with integrated districts.” Key features of the local government reform proposals set out in Putting People First - Action Programme for Effective Local Government include the following: ”The new municipal districts will cover each entire county and will be built as far as possible around the main towns and their natural hinterlands, unlike the current isolated town authorities. A single county-wide administrative structure will deal with operational functions and elected members will decide relevant matters at municipal district and County levels, respectively, with no duplication or overlapping of functions. Councillors will be simultaneously elected to the municipal districts and the County Council instead of current separate town and county councils. The areas of the municipal districts will be drawn up on the basis of a review by an independent statutory committee, which will report by early 2013. Current weaknesses and anomalies, for example, Town Councils’ lack of powers and resources; town and county duplication; boundary issues; inconsistency between municipal and nonmunicipal towns, will be removed.” The implications of these proposals will be reflected in the establishment of suitable merged management, administration and staffing structures for the new Limerick Local Authority. 7 Post-2014 Nov. 2012 Manager /C.E.O. Office of Regeneration Director of Services Director of Services Director of Services Director of Services Director of Services Director of Services Director of Services Director of Services Head of Finance Home & Community Culture & Sport Economic Development & Planning Travel & Transport Environment Water & Emergency Services Human Resources Corporate Services & Change Man Finance & ICT Director of Services Director of Services Director of Services Home, Community, Culture & Sport Economic Development, Planning, Travel & Transport Environment and Emergency Services Director of Services Corporate Services & Human Resources Fig. 1: Management Structure for Joint Service Delivery – November 2012 and Post-2014 Head of Finance Finance & ICT 3.0 Progress to Date 3.1 Methodology The LRIG was required to oversee the planning and implementation of the reorganisation process in respect of the merger of Limerick City and County Councils. At an operational level, work on developing and implementing plans rested with the Joint Management Team of the two local authorities. The Joint Management Team was supported in its work by the Director appointed to the LRIG in January 2012. Through a series of workshops and meetings, the Joint Management Team adopted a methodology and approach to indentifying and exploring the options in relation to the new organisation structure and service delivery model. The key stages in the process are identified in the Fig. 2 below. Decide what role and functions the new authority should perform STEP 1 Define Role & Responsibilities STEP 2 Develop Structure Develop structure to address challenges for local government in Limerick and to effectively deliver services and functions STEP 3 Assign Resources Assign staffing and other resources Fig. 2: Process for Identifying and Exploring Options in Relation to the Structure, Role and Responsibilities of the New Local Authority 3.2 The Work Programme to November 2012 The Management Team members engaged in a series of workshops and planning exercises designed to contribute to the development of joint service delivery arrangements for the transition phase and for the New Local Authority in 2014. In particular, work has been progressed on: Developing the Strategic Vision and Values for the new local authority; Developing Service Unit Plans: o Agreeing which services best fit with the functional areas within the new structure o Determining appropriate staffing structures for the functional areas within the new structure; Reviewing the policies, procedures, processes and practices of the existing local authorities and developing those which are best suited to be adopted for the new local authority; Determining the organisational and staffing arrangements to continue the work of the Regeneration Agencies post June 2012; Communicating and consulting with staff and Trade Union representatives. 3.3 Overview of Key Developments to Date In the paragraphs below, an overview of key developments to date is provided. 3.3.1 Economic Development in Limerick The Ministers Reform Proposals: The Minister for the Environment, Community and Local Governments reform proposals in Putting People First - Action Programme for Effective Local Government provide for the following in relation to the economic development and job creation in terms of local government reform: “There will be an enhanced role in economic development and enterprise support. A new dedicated Strategic Policy Committee for Economic Development will be created in each local authority and a specific director of services for economic development will be created in many local authorities. Local economic development strategies will be adopted as part of the City and County development plan. Local authorities will build on the 2,000 initiatives already in train to develop innovative best practice approaches for mainstream application across the local government sector. New Local Enterprise Offices (LEO’s) will be integrated with local authority business support units to create a one-stop-shop for business support. There will be closer alignment of local and community development supports with local government.” The reform proposals also envisage: “The formulation of regional spatial and economic strategies by the regional assemblies; A systematic and proactive approach to ensure that general functions and services support enterprise and economic development; and Intensifying those actions in the sectoral strategy that require the involvement and collaboration of local government.” Implications of Developments in relation to Shannon Airport and Shannon Development: The Group notes the recent Government decision to grant full independence to Shannon Airport on 31st December 2012. The Airport will combine with a restructured Shannon Development to form a new publicly-owned commercial company. The new entity will include Shannon Development’s extensive land bank and will be tasked with developing an international aviation centre of excellence. 10 It is understood that Shannon Development’s enterprise functions will transfer to Enterprise Ireland and the IDA and that a plan for delivery of enterprise supports in the Region by those agencies will be developed. The tourism functions of Shannon Development, including Regional Tourism Offices, will transfer to Fáilte Ireland. This new entity will continue to support the property needs of IDA/EI clients in the area. The LRIG considers that it is critically important that the Shannon Development strategic industrial zoned lands at the National Technology Park at Plassey and the Raheen Industrial Estate in Limerick City Environs are transferred to the ownership of the Local Authority or the IDA. The transfer of these zoned industrial lands to the local authority in Limerick would greatly enhance the local authority’s capacity and remit to attract investment and to provide a proper “one-stop-shop” in relation to the facilitation of new medium to large FDI and indigenous industries. The development of these lands would not form part of the core business of the new Airport Company, whose role is envisaged to be concentrated on revitalising Shannon Airport and the development of the large land bank adjacent to the airport for aircraft-related enterprise. The LRIG also considers that the other outlying Shannon Development owned lands in County Limerick, including in NewcastleWest, Kilmallock and Askeaton, be transferred to the local authority. These lands have little or no strategic importance to the IDA or the new Shannon Airport Company but could be used by the local authority and other local enterprise agencies (new LEO, Leader Companies, etc.) to accommodate small to medium enterprises. Measures in place in the Limerick Local Authority in Relation to Economic Development: The following measures have been put in place to enhance the Limerick Local Authorities role in Economic Development: A new Economic Development and Planning Directorate has been established; A new Director of Services with responsibility Economic Development and Planning has been appointed; A management and administrative structure for Economic Development based on four business units has been developed (See Fig. 3 below); The preparation of an Economic Development and Spatial Implementation Plan is well advanced and will be brought before both Councils in early 2013. 11 Director of Services Economic Development and Planning Planning and Development Urban Centre Management and Development Business Support Unit LARGE Marketing / Rebranding MICRO/MEDIUM Fig. 3: Economic Development and Planning – Management Structure 3.3.2 Limerick – National City of Culture 2014 The LRIG developed a proposal for the granting the inaugural National City of Culture designation to Limerick in 2014. This proposal met with a positive response from the Minister for Arts, Heritage and the Gaeltacht and in July 2012 Minister Deenihan officially announced that he had granted the National City of Culture designation to Limerick in 2014. It is intended that the designation of Limerick – National City of Culture 2014 will act as a catalyst to deliver real and credible changes, economically, physically, socially and emotionally, leading to a long lasting renewal. The Management Structure for the Limerick – National City of Culture 2014 initiative has been agreed and is set out in Fig. 4 below. Key members of the Management Group are now in place. Management Group Finance Group Operational Groups (7 no.) Marketing Group Fig. 4: City of Culture – Management Structure 3.3.3 Regeneration The statutory remit of the Limerick Regeneration Agencies ended in June 2012. An Interim Director of the Office of Regeneration was appointed in April 2012 and charged with responsibility for the transfer of all functions, assets and liabilities of the Regeneration Agencies to the new Office of Regeneration in the Limerick Local Authority under the control of the new unitary manager. This transition was successfully completed and the Office of Regeneration has been organised and configured so as to bring about significant financial savings. These savings can now be reinvested in the regeneration communities and infrastructural projects in the 12 regeneration areas. The Interim Director’s remit was extended in November 2012 to also include the Home and Community functions of both Limerick local authorities. Fig. 5 below sets out the Management Structure for the Office of Regeneration. Director of Services Office of Regeneration North-side Regeneration Office Central Administration Project Management and Technical South-side Regeneration Office Fig. 5: Regeneration – Management Structure 3.3.4 Financial Planning The amalgamation of the two Limerick local authorities presents a set of unique financial challenges which must be addressed. There is a need to maximise the potential for savings from combining services, ending duplication in services, economies of scale, together with results from the workforce planning exercise and the application of best practice in organisational and operational standards. The most pressing challenge is to put measures in place which will bring about a sustainable convergence of the commercial rate between the City and County Councils at the earliest possible date. Progress has already been made in 2012 with a significant reduction in senior management grades in both local authorities and in the Regeneration agencies which has resulted in financial savings in staff costs in excess of €500,000. Work is ongoing on analysing the financial position of both local authorities in order to identify where cost savings and efficiencies may be achieved. The Group acknowledges that it will take time for significant savings to accrue from payroll and non-payroll costs. 3.3.5 Governance Arrangements The LRIG has met on a number of occasions with the Joint Committee of Elected Members from both the City and County Councils for the purpose of briefing them on developments and progress being made in relation to its Terms of Reference. One of the key concerns of the Elected Members is the governance arrangements for the new Limerick City and County Council. 13 The LRIG provided the Elected Representatives with independent expert assistance to advise and facilitate their discussions on matters relating to the governance of the New Authority. This work is ongoing and will assist the Elected Members in the preparation of a submission to the Local Electoral Area Boundary Committee. Mr. Phil Hogan, T.D., Minister for the Environment, Community and Local Government, announced on 15th November 2012 that he has established a Local Electoral Area Boundary Committee. This Committee will review and make recommendations on local electoral area boundaries in the context of the results of census 2011 and the Action Programme for Effective Local Government. The Minister has asked the committee to report to him as soon as possible and in any event no later than 31 May 2013. 14 4.0 Pointing the Way Forward The following provides an outline of the next steps to be put in place in advancing towards the establishment of a single local authority for Limerick. 4.1 Corporate HQ and Identity for the new Limerick Local Authority The LRIG was charged by the Minister with responsibility “to ensure that the status, identity, character, and heritage of the city of Limerick are maintained and enhanced within the unified authority.” The LRIG recommends that: The name of the new council should be the “Limerick City and County Council”; A new Limerick City Metropolitan District be established encompassing an area with a population of around 100,000; In defining the Limerick City Metropolitan District, the history and traditions associated with the office of Mayor of Limerick City be retained; The Corporate HQ for the new authority be located in City Hall; The Minister should enable the establishment of a single motor vehicle licensing authority for the new Limerick Local Authority. 4.2 Developing the Service Delivery Model Directors of Services have now been appointed with City and County wide remits for joint service delivery up to June 2014. In order to make further progress on merging of Management and Administrative Structures the following are identified as priority areas for action: Establishment of a dedicated project team to monitor and ensure delivery of the Implementation Plan; Re-examination of the Service Unit Plans and assessment of the implications of the local government reform proposals for municipal areas for the service delivery model; Preparation of a detailed Workforce Plan; Completion of the review of policies, procedures, processes and practices; Adoption of a set of policies, procedures, processes and practices appropriate to the needs of the new Limerick Local Authority; Maintain ongoing communication and consultation with staff and trade unions; Advance the preparation of a Corporate Plan for the new Limerick Local Authority. 4.3 Strengthening the Project Management Arrangements It is intended to strengthen the project management arrangements with the appointment of a Change Leader. The Change Leader will work with a dedicated team to support the delivery of tasks as set out in the Implementation Plan. In particular, the Change Leader will work with the Management Team in order that: Functional area plans are prepared and implemented; A Workforce Plan is developed and implemented; A Financial Plan for the amalgamation is prepared. 15 4.4 Completion of Service Unit Plans Considerable progress has been made in defining the strategic objectives and priorities for the service units for the Directorates within the new authority Structure. Some preliminary conclusions from the Service Unit Planning exercises are: The current combined total staffing of Limerick City and County Councils is 1,100 serving a population of 190,000; Preliminary assessments have been made of the appropriate staffing structures and numbers for the new local authority; There is a need for a further thorough examination of the proposed staffing for the new authority in order to: o Identify the areas from which staff can be redeployed to strategic service areas; o Identify the potential for payroll savings in the short, medium and long term. The completed Service Unit Plans will inform and assist in the making of key decisions in relation to a number of issues including the following: The final staff structure of the service units and functional areas; The determination of most appropriate policies , procedures etc.; The location of these service units in the new Limerick Local Authority. 4.5 Development of a Workforce Plan The continued reduction of staffing levels due to the embargo on recruitment is providing on-going cost savings and the preparation of the Workforce Plan will assist in aligning the human resource, service provision and financial requirements of the new local authority. From November 2008 to November 2012, the combined staffing of Limerick City and County Local Authorities has been reduced by over 20%. It is expected that by 2020 there will be a further 20% reduction in the staff of the merged local authorities. It is intended that Workforce Plan for the new organisation will be prepared and based on a comprehensive assessment of: The current supply of staff by grade level, age profile and competency level from the existing local authorities; Projected turnover including retirements to 2020; An assessment of the current and future organisational needs to 2020; The recommendations and guiding principles of the DOECLG/CCMA on Workforce Planning; Proposals for the redeployment of staff, incentivised early retirement, redundancy, etc. for staff who are surplus to the needs of the new local authority post-merger; The policy in relation training and development to ensure that the current and future organisational and staffing needs are met. 16 4.6 Legislation to Underpin the Establishment of the New Authority New or amended legislation will be required to merge the existing two local authorities and establish a single authority. A list of relevant legislation and related issues has been provided to the Department of Environment, Community and Local Government (DECLG) and work is underway to progress the various issues with them and other relevant government departments. It is imperative that the legislation required is drafted and enacted in a timely manner in order to ensure that it is in place well in advance of the local elections in 2014. New electoral areas need to be defined as soon as possible. A copy of the list is provided at Appendix 2. 4.7 Economic Development and the Rebranding of Limerick As indicated above significant progress has been made in relation to Economic Development and Rebranding challenges of Limerick. It is also recommended by the LRIG that the following measures be put in place to further enhance the local authorities’ role in Economic Development: A new non-statutory High Level Economic Group be established comprising of key business leaders, representatives from state agencies and other key stakeholders as appropriate who can assist in delivering investment and jobs to Limerick; The Limerick Communications Office be restructured and a greater targeted resource should be assigned to the marketing of Limerick. The establishment of the Local Enterprise Office under the local authority will enhance supports to small to medium enterprises in Limerick and require a close working relationship between the Limerick local authority and Enterprise Ireland. The two local authorities, together with the City and County Enterprise Boards, have suitably qualified and experienced staff who will deliver many of the functions and services required under the new Economic Development and Planning Directorate. However, there are certain skill sets and competencies needed in the areas of marketing and innovation which are not readily available from existing staffing resources and an opportunity is currently presented with the break up of Shannon Development to transfer a small number of key Shannon Development personnel to work with the Limerick local authorities in these areas. The transfer of Shannon Development personnel to develop and deliver marketing and innovation functions would enable the new Limerick Local Authority to build a coherent and cohesive path for Limerick to take its place as the leader and driver of economic development in the mid-West. 4.8 Regeneration The Office of Regeneration has significantly advanced the work of developing the Regeneration Implementation Plan for the delivery of the social, physical and economic regeneration strategy for the Limerick Local Authority. The Office will have an important role to play in the overall economic revitalisation of the city over the next number of years. With a significant capital budget committed from central government towards the physical, social and economic development of 17 the regeneration areas, it is essential that the Office of Regeneration and the Economic Development and Planning Directorate work in tandem to oversee and deliver the overall strategy for the economic revitalisation of the city. In addition, the Office of Regeneration will incorporate a ' Community Benefit Policy' in its procurement strategy to ensure the socio-economic gains associated with the revitalisation and redevelopment of the city are reflected in the regeneration areas and other socially disadvantaged areas of the city. 4.9 Joint Arrangements with Clare County Council The amalgamation of the Limerick local authorities provides an opportunity to examine the provision of local authority services in the areas adjacent to Limerick city within the functional area of Clare County Council which the Local Government Committee recommended for transfer to the new Limerick local authority. The provision of local authority services by the new Limerick local authority under a service level agreement in that part of Clare will be investigated further with Clare County Council. 4.10 Financial Planning It is necessary to prepare a Financial Plan for the amalgamation which assesses the financial resources and cost savings required up to and for a limited period post-merger and provides for the sustainable convergence of the Rate on Valuation between the City and County Councils. This Financial Plan will: Identify and make budgetary provision for the costs of the merger; Identify the potential and the options to secure savings/efficiencies arising from removal of duplication in services and processes, economies of scale, results of Workforce Planning and application of best practice in organisational and operational aspects; Prepare a detailed Financial Plan to identify measures required to bring about the equalisation of rates. 18 5.0 Conclusions and Recommendations In conclusion, the LRIG notes the following: A new service delivery model for local government in Limerick has been identified and is being developed; An interim structure for joint service delivery up to June 2014 has been put in place and Directors of Services assigned; Economic Development is placed central to the purpose and structures of the new local authority. A dedicated Director of Services for Economic Development and Planning has been appointed and appropriate structures put in place; A new Local Enterprise Office is to be established under the Economic Development Directorate which will act as a “one-stop-shop” for the micro-enterprise and small business sector; The Office of Regeneration has been established to ensure that the work of the Regeneration Agencies is carried forward and built upon within the new joint local authority structures. A Director of Home, Community and Regeneration has been appointed; A Joint Committee of Elected Members from both Councils has been established and has advanced proposals on possible electoral arrangements; Legislation has been enacted to enable dual management arrangements; A new dual Manager of Limerick City and County Councils has been appointed; The ‘Opera Centre’ site in Limerick City Centre has been acquired by the City Council with funding provided by the DOECLG and the development of this strategic site will be central to revitalising the City Centre; A Economic and Spatial Plan for Limerick is at an advanced stage of preparation by consultants GVA/AECOM and will form the blueprint for the economic revitalisation of Limerick and the redevelopment of the City Centre; Work is ongoing on the development of service unit plans and the review of policies procedures and practices to be aligned to the needs of the merged local authority; A Workforce Plan for the new local authority is being developed; A detailed Financial Plan is being prepared to identify measures required to bring about the equalisation of rates; The Minister has established a Local Electoral Area Boundary Committee to determine Local Electoral Areas, Municipal/Metropolitan District Areas and number of elected members for the new Limerick local authority. 19 The main recommendations of the LRIG are as follows: The name of the new council should be the “Limerick City and County Council”; A new Limerick City Metropolitan District be established encompassing an area with a population of around 100,000; In defining the Limerick City Metropolitan District, the history and traditions associated with the office of Mayor of Limerick City be retained; The Corporate HQ for the new authority be located in City Hall; The Minister should enable the establishment of a single motor vehicle licensing authority for the new Limerick Local Authority; A new non-statutory High Level Economic Group should be established comprising of key business leaders, representatives from state agencies and other key stakeholders as appropriate who can assist in delivering investment and jobs to Limerick. This Implementation Plan outlines the significant progress made to date and the actions now required to facilitate the successful amalgamation of the two Limerick local authorities and the formation of the new Limerick City and County Council by 2014. 20 APPENDIX 1 Terms of Reference Arising from the Government decision to implement the main recommendations of the Limerick Local Government Committee, involving the creation of a new single local authority to replace the existing Limerick City and County Councils in 2014, with proposed interim joint management arrangements, the Minister for the Environment, Community and Local Government has established an Implementation Group consisting of the following members: Chair - Mr Denis Brosnan (Chair of the Limerick Local Government Committee and the Mid West Task Force); Mr Vincent Cunnane (Chair of the Joint Economic Development Committee of the Limerick City and County Development Boards); Mr Ned Gleeson (County Manager, Limerick County Council) – Mr Glesson retired in April 2012 and was replaced by Mr Gerard Behan (Acting County Manager, Limerick County Council) until the Appointment of Mr Conn Murray as Manager of Limerick Local Authority in August 2012; Mr Tom Mackey (City Manager, Limerick City Council) - Mr Mackey retired in February 2012 and was replaced by Mr Kieran Lehane (Acting City Manager, Limerick City Council) until the Appointment of Mr Conn Murray as Manager of Limerick Local Authority in August 2012; Mr Ned O’Connor (former County Manager, South Tipperary County Council). The Group has a general mandate to oversee planning, preparatory work and initial implementation of the reorganisation process. Without restricting its scope or flexibility pursuant to its general mandate, and subject to any additional matters that the Minister may require, the functions of the Group will include oversight of, and ascertaining delivery in relation to, the following matters: 1. Detailed planning and identification of early actions for the amalgamation of the local authorities and the Limerick Regeneration Agencies, including analysis of income, expenditure, assets, liabilities, staff (numbers/grades and identification of any surpluses), services, procedures and other relevant matters in the two authorities and the Agencies, and identification of requirements for organisational rationalisation and integration and such other preparatory, transitional, procedural or administrative measures as may be necessary in relation to the existing authorities or their functions, in preparation for the establishment of the unified authority and the effective performance of its functions 2. Establishment of effective co-ordination/project management arrangements to oversee and deliver successfully the restructuring process. 3. Rationalisation of the provision of services not already subject to joint arrangements in preparation for merger of the authorities, including consolidation of particular services and establishment of joint arrangements, as appropriate, in respective authorities, with a view to ensuring orderly transition to the unified authority. 4. Organisational rationalisation and integration as soon as possible, including the early establishment of a joint management team and deployment of staff within the two authorities in line with the integration/consolidation of services; in particular, integration of corporate functions and rationalisation of local authority offices and other facilities. 5. Action necessary to ensure that cost reductions and efficiencies are maximised and arrangements to measure and monitor their achievement, having regard to the stated target of potential savings of €15m, including savings necessary to ensure that the level of the commercial rate in the City is reduced to the current County level following the establishment of the single authority. 21 6. Arrangements to support continued effective performance of functions by the elected councils of the two authorities, service to the councils by management and staff in the context of organisational changes, and arrangements to prepare for the effective operation of the unified council, including such matters as committees, procedures and representation on other bodies. 7. Information of, and consultation with, the elected councils, as appropriate, in relation to the reorganisation process, including provision of regular reports to the proposed joint committee of the elected councils. 8. Measures to ensure adequate balance between the two authorities in the reorganisation process and in their management generally prior to establishment of the unified authority. 9. Action to achieve alignment and convergence between the objectives and policies of the two authorities as part of the transition towards a single authority in 2014 in the context of the overall development of the Limerick gateway 10. Arrangements locally, to be determined in consultation with the Limerick Regeneration Agencies and in accordance with overall arrangements to be developed by the Department, to bring the administration of the two Agencies under the aegis of the local authority management as soon as is practicable to ensure the programme is not delayed, but not later than the end of their current 5 year mandate in 2012. 11. Arrangements to merge relevant bodies linked with or related to local government, such as the separate County and City Development Boards, Joint Policing Committees and County and City Enterprise Boards, and relevant measures to support the alignment of local government and local/community development in line with overall policy in that regard. 12. Identification of measures to maximise the capacity of local government to contribute to the economic development of Limerick and the Mid-West Region and in particular, to enhance the role of Limerick City as a generator of growth and a strong and dynamic focus for development of the wider region, supported by extension of the City boundary to include urbanised or partially urbanised areas in Limerick county as recommended by the Limerick Local Government Committee, resulting in increase in the City population to around 100,000 (2006 census). 13. Proposals on ways to ensure that the status, identity, character, and heritage of the city of Limerick are maintained and enhanced within the unified authority. 14. Establishment of appropriate joint arrangements with Clare County Council under local government law to ensure the most effective discharge of functions in the areas which the Local Government Committee recommended for transfer to the new Limerick authority and arrangements to ensure good communication and coordination generally between the relevant authorities. The Group will ensure that Government policy on local government, the public service, the public finances and other relevant matters are reflected, as necessary, in the implementation process and that due account is taken of relevant analysis and recommendations in relevant reports such as the Local Government Efficiency Review. The Implementation Group will provide progress reports to the Minister, as appropriate, with the initial report to be provided not later than 31 October 2011 which should include identification of matters that need to be provided for in legislation. The Group will adopt an Implementation Plan, having regard to the foregoing and any other matters considered appropriate, to set a clear agenda and guidance for the continuation and completion of the reorganisation process under transitional management arrangements from early 2012 leading to the establishment of the single authority in 2014. 22 APPENDIX 2 Legislative Issues There are many legislative issues which must be addressed in order to bring about a unified local authority to govern Limerick. These issues would include the restructuring of both the administrative and political structures to replace the existing ones. The process to make the transition from two local authorities to one local authority should be appropriately phased over a suitable time period and must be fully in place in time for the local elections in 2014. To enable this new legislation is required together with amendments to, and clarification on, existing legislation. The timeframe for the formation of the new single authority is relatively short and legislation can take a considerable length of time to draft and be passed by the Oireachtas. The Department of the Environment, Community and Local Government must take the lead in ensuring that the required legislation is enacted as soon as practicable. It is therefore imperative that the Department commences work without delay on reviewing the legislation required for the new authority and drafting the legislation in order to bring it into effect in a timely manner. Legislation is required to abolish the two existing local authorities and to establish the new single authority. It is assumed that this legislation will transfer existing responsibilities and functions from the existing authorities to the single authority and deal with all transitional arrangements. While two separate entities exist, there will be a requirement to continue separate legal arrangements such as the acquisition and disposal of property, reserved functions, entering into contracts, and the making of Managers Orders and delegated functions. A further example would be the requirement to maintain two Development Plans and two Development Contribution Schemes until post-June 2014. Clarification is required as to the most appropriate legal arrangements which should be put in place as an interim measure to facilitate the joint provision of some services in advance of 2014. A summary of some of the legislative provisions which must be clarified, amended or provided for is presented in Table 1 below. It is recommended that the Department address these issues as a matter of urgency. 23 Existing Primary Legislation Issue to be Addressed None Legislation required to abolish existing authorities and to establish new single authority. Local Government Act, 2001 Amendment required Development Boards. Finance Acts New licensing authority to be established for Motor Tax functions. providing for merger/abolition of County Valuation formula used by the Valuation Office in calculation property value differs between Limerick City and County. Clarification needed on how this will be addressed. Limerick City Management Act, 1934 Vacant property commercial rate refunds differ in City (50%) compared to County (100%). This needs to be addressed. Housing Acts Measures required to allow housing mortgages issued against each authority to be registered against the new authority without entailing significant legal costs for re-registering. Assessment of Housing Needs Regulations need to be amended reflecting change to single authority. Garda Síochána Act Amendment required for merging Joint Policing Committees. Planning Acts Legislation required to allow Development Contributions collected in one authority to be expended in other. Table 1: Summary of Legislative Issues - Establishment of Single Authority 24