Minutes

Minutes of the meeting of the Finance and Resources Committee held on 15 July 2010 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Steve O’Connell (Chair)
• Faith Boardman
• Chris Boothman (from agenda item 22)
• Valerie Shawcross
• Graham Speed

MPA officers

• Catherine Crawford (Chief Executive)
• Bob Atkins (Treasurer)
• John Crompton (Treasury Team)

MPS officers

• Ailsa Beaton (Director of Information)
• Richard Clarke (Director of Strategy and Improvement)
• David Imroth (TP Emerald Custody Directorate)
• Karim Mahamdallie (Director of Business Support)
• Anne McMeel (Director of Resources)
• Nick Rogers (Director of Finance Services)
• Peter Ross (Director, Programme Delivery PSD)
• Philip Smith (Director RLOS, Property Services)
• David Taylor (Property Services)
• Martin Tiplady (Director of HR)
• David Woosey (Acting Director of Procurement Services)

1. Apologies for absence

(Agenda item 1)

Apologies for absence were submitted on behalf of Reshard Auladin, John Biggs and Dee Doocey.

2. Declarations of interests

(Agenda item 2)

No declarations were made.

3. Minutes of the meeting held on 17 June 2010 (Part 1)

(Agenda item 3)

Resolved – That the minutes of the meeting of the Committee held on 17 June 2010 be agreed and signed as a correct record.

4. Appointments to Sub-committees

(Agenda item 4)

A report was submitted which invited members to confirm appointments to the Resources and Productivity Sub-committee and the Estate Panel.

The Chair said that further expressions of interest from members who wished to serve on the Sub-committee were welcome.

Resolved – That

1. the nomination of Faith Boardman and Graham Speed as Chairman and Vice-Chairman of the Resources and Productivity Sub-committee be ratified; and
2. the membership of the Estates Panel be confirmed as set out in the report and Graham Speed be appointed as the Chairman.

5. Business considered by the Sub-committees

(Agenda item 5)

A report was submitted which contained a summary of the business considered by the Resources and Productivity Sub-committee and the Estate Panel since the last meeting of the Finance and Resources Committee.

Resolved – That the report be noted.

6. Revenue budget monitoring 2010/11 – period 2

(Agenda item 6)

This report provided an update on the revenue monitoring position for 2010/11 at Period 2 (to the end of May). The revenue budget is forecast to overspend by £32.6m (1% of budget).

In reply to a question from a member the Director of Resources said that there was a degree of risk attached to each of the items of in-year savings identified in table 1 and it was likely that various savings would be achieved to different time scales. She also advised that although this was not included in the table, a freeze on the recruitment of police officers had now been implemented.

In response to a question from a member the Chief Executive advised that there was a separate budget for the MPA and this would be included in the budget and policing plan which members would consider later in the year. The Business Management Group would consider the draft budget including the level of any savings required but it was also important to note that the restructuring which the Authority had undertaken had delivered savings going forward.

A member referred to the publicity concerning the visit by the Pope in September and in particular the speculation about the cost of policing the event and asked whether the MPS had a more reliable working estimate of what the likely cost was likely to be. The Chair said that there was a tendency for the cost of policing events like this to become larger than was anticipated and there could be a time when there must be serious consideration as to whether the service would be provided if the monies are not available.

The Director of Resources undertook to provide the current estimated cost of policing the Papal visit and the potential to recover the costs. In response to the specific point made by the Chair about recovering the costs of the event the Director of Resources drew attention to the somewhat unusual nature of the visit in that it was a State visit by a head of state who was the head of a religion with a charitable dimension to some aspects of the visit. These factors would impact on the scope for any recovery of costs although representations would continue to be made on the inadequacy of the monies received in respect of the. National and International City functions.

Resolved – That

1. the year to date and forecast position for revenue budgets be noted;
2. it be noted that a report on the first review of the Capital Programme budget for 2010/11 is the next item on the agenda for this meeting;
3. the action taken by the Service regarding the £28m reduction in Central Government funding be noted;
4. approval be given to the budget changes that have taken place since the submission of the 2010/13 MPA/MPS Policing London Business Plan and approve a budget virement;
5. members be advised of the current estimated policing cost of the visit by the Pope; and

7. First review of the Capital Programme 2010/11

(Agenda item 7)

This report provided details of the first review of the capital programme for 2010/11 which is required to ensure that budgets are suitably adjusted to reflect (i) the capital outturn for 2009/10; and (ii) known changes to project profiles; since approval of the capital programme 2010/11 to 2016/17 as part of the Policing London Business Plan 2010-13. The report also highlighted that significant changes to available funding for the MPS will have an impact during 2010/11 and that the scale of the capital programme will need to be closely monitored to ensure that it remains affordable and prudent for the suggested level of investment to be maintained.

Resolved – That

1. the use of the capital reserves to replace the notified reduction in police capital grant for 2010/11 be approved;
2. the revised funding proposals for the capital programme 2010/11 be approved;
3. the revised capital programme for 2010/11, including the level of overprogramming which needs to be managed be approved; and
4. it be noted that the present economic situation may require changes to be made to the investment programme.

8. Cost implications of policing public order events 2009/10

(Agenda item 8)

This report sets out the annual policing costs associated with major public order events between 1 April 2009 and 31 March 2010.
It was noted that Dee Doocey had submitted a question before the meeting and that a reply would be prepared and circulated.

Members noted the information on the discussions on charging for the policing of football matches which were taking place with the football authorities and felt that the focus for the talks should be that a far higher percentage of costs were recoverable–as is the case for example with the Wimbledon tennis championships.

The Director of Business Support said that there would not appear to be scope for any significant progress towards full recovery whilst the Home Office Circular 34/2000 was still in force.

The Chair suggested that the stance which should be taken is that professional football is essentially a commercial activity and should be charged accordingly with an expectation of full recovery of the policing costs incurred. He requested that an update be provided on the discussions regarding charging for policing football matches. It was agreed that a review be undertaken of the current policy for charging and requested that a report be submitted to a future meeting on options for changing the current charging regime.

Resolved – That

1. the report be noted; .
2. a report be commissioned for submission to a future meeting on options for changing the current charging regime; and
3. an update on charging for policing football matches be provided at a future meeting.

9. Mayor’s budget guidance –shared services

(Agenda item 9)

This report provided members with information to approve the response to the GLA 2011-12 budget guidance and its submission to the Mayor on 30 July 2010.

Resolved -. That the update (at exempt Appendix 1) on shared services be submitted to the Mayor by 30 July 2010 as requested in the GLA 2011-12 budget guidance.

10. Proposals for the development of a borough based custody centre for Croydon BOCU

(Agenda item 10)

A detailed custody business case report recommending the provision of custody centres in each London Borough to meet long term custody needs was approved in February 2006. The need to provide further custody provision throughout the MPA estate to support MPS operations is widely accepted and funding has been included within the approved Programme Budget in the current 7 year capital programme presented to the MPA in November 2009. This report requested authorisation to proceed with the development of a 40 cell custody centre on the site at Windmill Road, Croydon, to support operational needs.

Graham Speed advised that although the Estate Panel had not received a report on the proposal he supported the recommendations.

In response to a question from Valerie Shawcross the Chair confirmed that as a general rule the provision of a new facility entailed the closing of an existing facility, however this did not pertain in this case. He suggested that she might find it useful to be briefed on the process in place concerning property disposals and the provision of new facilities.

Resolved - That

1. approval be given for the development of a 40 Cell BBCC at Windmill Road Croydon for Croydon BOCU, in line with the approved strategy;
2. approval be given to the capital project budget allocation of £18.116m from the approved overall programme budget;
3. approval be given to the inclusion of a Safer Neighbourhoods base within the development;
4. it be noted that the construction contract will be procured through the Improvement and Efficiency South East (IESE), formerly South East Centre of Excellence (SECE) framework as approved by MPA Finance Committee in November 2007;
5. authority be delegated to the MPS through the approved scheme of delegation to approve the letting of contracts, within the approved project budget allocation; and.

11. Request for approval to dispose of Rennet’s Wood House, Eltham

(Agenda item 11)

This report requested approval to dispose of the long leasehold interest in Rennet’s Wood House, Bexley Road, Eltham, Greenwich, London, SE9 2NE following an open market tender.

Resolved - That

1. approval be given to the disposal of the long leasehold interest in Rennet’s Wood House, Eltham at the value and to the bidder identified in Exempt Appendix 2 following an open market tender;
2. It be noted that the disposal is consistent with the MPA Residential Estates Strategy and the approval in principle decision made by the Committee on 11 February 2010; and
3. It be noted that the capital receipts from the disposal will support the 2010/11 Capital Programme.

12. Request for approval to dispose of 17A-C Old Park Avenue, Wandsworth

(Agenda item 12)

This report requested approval to dispose of the long leasehold interest in 17A-C Old Park Avenue, Wandsworth London, SW12 8RH following an open market tender.

Resolved – That

1. approval be given to the disposal of the freehold interest in 17a-c Old Park Avenue, Wandsworth, London SW12 8RH at the value and to the bidder identified in Exempt Appendix 2 following an open market tender;
2. it be noted that the disposal is consistent with the MPA Residential Estates Strategy and the approval in principle decision made by the Committee on 11 February 2010; and
3. it be noted that the capital receipts from the disposal will support the 2010/11 Capital Programme.

13. Request for approval to dispose of 9-11 Lawford Road, Kentish Town

(Agenda item 13)

This report requested approval to dispose of the freehold interest in 9-11 Lawford Road, Kentish Town, Camden London, NW5 2LH following an open market tender.

Resolved -That

1. approval be given to the disposal of the freehold interest in Lawford Road, Kentish Town at the value and to the bidder identified in exempt Appendix 2 following an open market tender;
2. it be noted that the disposal is consistent with the MPA Residential Estates Strategy and the approval in principle decision made by the Committee on 11 February 2010, and
3. it be noted that the capital receipts from the disposal will support the 2010/11 capital programme.

14. Routine contracts programme

(Agenda item 14

This report set out the latest version of the Routine Contracts Programme, which provided members with detail on the contracts above £1m that the MPS wishes to let over the next twelve months on a rolling programme, the details of those contracts let since the last report. The rolling programme covers routine renewals/re-tenders and all known new or emergent requirements. The report had been considered by the Resources and Productivity Sub-committee which supported the recommendations.

Resolved That

1. the report be noted; and
2. approval be given to the latest version of the Routine Contracts Programme and to the authorisation to place OJEU advertisements where appropriate.

15. Any other urgent business

(Agenda item 15)

There was none.

16. Exclusion of press and public

(Agenda item 16)

Resolved - That under section 100A(4) of the Local Government Act 1972 the press and public be excluded from the meeting for the following items of business on the grounds that they involved disclosure of exempt information as detailed in paragraphs 2 and 3 of Schedule 12A to the above Act.

Summary of decisions made on exempt items

17. Exempt Report from Resources and Productivity Sub-committee

(Agenda item 17)

Information noted.

18. Exempt appendix to proposals for the development of a borough based custody centre for Croydon BOCU

(Agenda item 18)

Information noted.

19. Exempt appendix to request for authority to dispose of Rennet’s Wood House, Eltham

(Agenda item 19)

Information noted.

20. Exempt appendix to Request for authority to dispose of 17a –C Old Park Avenue Wandsworth

(Agenda item 20)

Information noted.

21. Exempt appendix to request for authority to dispose of 9-11 Lawford Road , Kentish Town

(Agenda item 21)

Information noted.

22. Request for project approval in respect of premises in Lambeth

(Agenda item 22)

Approval given to the carrying out of building works for the provision of specific mechanical, electrical and building maintenance works.

23. Exempt appendices to review of capital programme

(Agenda item 23)

Information noted.

24. Exempt appendix to Mayor’s budget guidance –shared services

(Agenda item 24)

Information noted.

25. Exempt Appendices to Routine Contracts Programme

(Agenda item 25)

Information noted.

26. Metafor –Programme Closure

(Agenda item 26)

Noted report setting out the reasons for not proceeding with the Metafor Programme.

27. Transforming HR

(Agenda item 27)

Recommendations relating to the Programme were agreed.

28. Report from the Olympic and Paralympic Sub-committee

(Agenda item 28)

Two business cases were approved.

29. Minutes of the meeting held on 17 June 2010 (part 2)

(Agenda item 29)

Agreed and signed as a correct record.

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