Minutes

Minutes of the meeting of the Finance, Planning and Best Value Committee held on 17 January 2002 at Romney House, Westminster, London SW1.

Present:

Graham Tope (Chair)
Reshard Auladin (Deputy Chair)
Nicholas Long (Deputy Chair)
John Biggs
Cecile Lothian
Eric Ollerenshaw
Sir John Quinton
Richard Sumray
Rachel Whittaker

MPA staff:

Catherine Crawford (Clerk)
Peter Martin (Treasurer)
Derrick Norton (Best Value Manger)
John Crompton (Committee Services)

MPS staff:

Tarique Ghaffur (Assistant Commissioner)
Commander Alan Brown
Commander Alan Shave
Deputy Assistant Commissioner Tim Godwin
Keith Luck (Director of Resources)
Ailsa Beaton (Director of Information)
Peter Peirce (Director of Catering)
Trevor Lawrence (Director of Property Services)
Paul Andrea (Acting Head of Procurement)

Also present: Peter Hendry, Managing Director, Surface Transport, Transport for London and 45 members of the press/media and public and other staff members from the MPA and MPS.

Part 1

163. Apologies for absence

(Agenda item 1)

An apology for absence was submitted on behalf of Elizabeth Howlett.

164. Minutes – 6 December 2001

(Agenda item 2)

Resolved: That the minutes of the meeting held on 6 December 2001 be agreed and signed as a correct record.

The Treasurer referred to minute 144 - strategic review of risk management- and said that arrangements were being made to hold the initial meeting of the member group.

(Note: the meeting was subsequently arranged for 15 February 2002) 

165. Chair and members' update

(Agenda item 3)

No reports were given.

166. Policing And Performance Plan 2002/03

(Agenda item 4)

A report was submitted which updated the Committee on the policing priorities for 2002/03.

Further to paragraph 2 it was noted that the draft Ministerial priorities had now been published and the information had been sent to members by the Best Value Manager as part of a briefing paper. These would be reported to the meeting of the Authority on 24 January.

Resolved: That

1. the proposed targets in relation to race crimes and domestic violence be approved;
2. progress on the development work on setting bespoke targets be noted; and
3. the inclusion of support departments in setting enabling objectives to support priorities and objectives be noted.

167. Format of Policing And Performance Plan 2002/03

(Agenda item 5)

A report was considered which set out the suggested arrangements for the publication of the summary best value performance plan.

Assistant Commissioner Ghaffur confirmed that there was provision to meet the estimated cost of £30,000 and added that there would need to be clarity on where the cost would fall in subsequent years.

In reply to a question from a Member Assistant Commissioner Ghaffur confirmed that the plan could also be made available in a Braille version.

Resolved: That the 2002/03 Policing Plan be published in the following versions in addition to the summary published jointly with GLA partners for distribution to London's households :-

• A full version of plan on the Internet (option 2)
• A "plain paper" of the internet plan for distribution to public libraries and police stations [approx. 1500 copies] (option 3)
• An MPS intranet version, complemented with a 'Job special' for staff (options 4 and 6)
• A short colour summary of the plan for key partners (option 5)

168. Programme of best value reviews 2002/03 – 2004/05

(Agenda item 6)

A report was submitted which set out a proposed programme of best value reviews to be included in the MPA's policing and performance plan for 2002/03 and also summarised the possible impact on the programme of the government proposals to streamline best value.

Resolved - That

1. the programme of best value reviews be approved; and
2. it be noted that the government proposals to streamline best value may have an impact on the programme.

169. The role of the Home Office DNA expansion programme within the MPS forensic strategy

(Agenda item 7)

This paper set out the role of the Home Office DNA Expansion Programme within the MPS Forensic Strategy. It outlined the additional funding the MPS expects to receive over the three years of the programme. The current estimate for funding to the MPS in 2002-03 is £9.2million representing 15% of the overall allocation and £24m over the full three years. This did not present any net increase over the provision in the 2002/03 draft budget.

The Chair commented that as currently worded the strategic aim in paragraph 1 did not contain any reference to the expenditure being contained. This appeared to be a characteristic of all demand led services and should be addressed.

Resolved –

That the contribution of the Home Office DNA Expansion Programme to the MPS Forensic Strategy and the estimated levels of funding over the three years of the Programme be noted.

170. Proposals for the establishment of a Transport Operational Command Unit

(Agenda item 8)

A report was submitted which advised that the Commissioner of the Metropolitan Police and the Commissioner for Transport for London (TfL) have agreed in principle to explore the feasibility of setting up a Transport Operational Command Unit (OCU) and its attendant infrastructure, financed entirely by TfL. The proposed unit will have specific responsibility for policing agreed bus corridors on the London bus network and addressing associated criminal and anti-social behaviour, as well as taxi and private hire vehicle enforcement. In order to progress matters a Co-ordinating Group has been created to assist management and delivery of the proposed programme and to oversee the negotiation of a Special Services Agreement with TfL.

Peter Hendry from Transport for London (TfL) attended for consideration of this item

It was noted that the report was also to be considered at the Authority meeting on 24 January and that a supplementary paper would also be submitted. Formal decisions would be made at that meeting. It was also noted that the GLA was giving active consideration to this matter and GLA Members were due to receive a briefing on 22 January. The Clerk was asked to make arrangements for all MPA members to attend the briefing.

Members considered that the report, despite its late despatch, did not contain the most up to date information. Concern was expressed that the Authority appeared to be being presented with a fait accompli and there was little hard information on several important aspects, such as how the proposal related to policing overall, what effect it would have on the precept. who would actually sign the agreement, who the contract would be with and the liabilities of the various parties.

Resolved - That the report be noted and that it be noted that the recommendations in the report be considered by the Authority at its meeting on 24 January.

171. White paper – strong local leadership – quality public services

(Agenda item 9)

This report summarises the recently published DTLR white paper: Strong Local Leadership – Quality Public Services. It also proposes feedback to be provided to the Association of Police Authorities for inclusion in the APA's feedback to Department of Transport, Local Government and the Regions (DTLR) and the Home Office.

Resolved: That-

1. the proposals in the white paper be noted
2. the views in appendix 2 be endorsed and forwarded to the Association of Police Authorities.
3. a further report to be submitted on when there is clarification about whether the proposals on the financial system will apply to police authorities.
4. the MPA liaise with the Greater London Authority on pan London issues

172. Review of MPS initiatives, projects and programmes

(Agenda item 10)

A report was submitted which updated the Committee on the review of all MPS initiatives, projects and programmes

Resolved: that the report be noted.

173. Annual letter from the auditor

(Agenda item 11)

The annual letter from the District Auditor in respect of the Authority's accounts for 2002/02 was considered by the Audit Panel on 13 December. The Panel referred the letter to the Committee to consider the policy implications. A follow up action plan was also submitted.

Further to paragraph 10 the Treasurer advised that the District Auditor had suggested that some dates be added to the action plan.

Resolved - That the report be noted.

174. Draft medium term capital programme 2002/03 to 2005/06

(Agenda item 12)

A report was submitted which provided details of the capital programme for 2002/03 to 2005/06 in line with the medium term funding limits as approved by the Committee at its meeting on 19 July 2001.

Resolved -

1. the transfer of £0.444m from 2002/03 to the 2001/02 programme in respect of the second phase of the refurbishment of Rowan Drive Hostel be approved. (paragraph 13)
2. the methodology for sanctioning information technology projects for inclusion within the medium term capital programme be approved. (paragraph 16)
3. the funding of refurbishment works at Tintagel House from capital receipts to be secured from the sale of Trenchard House be approved. (paragraph 23)
4. it be noted that the updated draft medium term capital programme (Appendix 1) and that the final programme will be reported following confirmation of the capital settlement for 2002/03
5. the following elements of the report be noted:

• the funding assumptions underpinning the updated draft medium term capital programme (paragraph 5);
• the preliminary details of the capital expenditure settlement for 2002/03 (paragraph 6).
• that the Directorate of Property Services has limited capacity to give early attention to the likely Home Office directive on improvement of the police estate (paragraph 7).
• the general projected level of reserves at the end of the medium term capital programme (paragraph 8).
• the revised format for presentation of projects within the medium term capital programme (paragraph 11).
• the capital programme for 2002/03 to 2005/06 has been prepared in accordance with the business group allocations as agreed for planning purposes by the Committee (paragraphs 12 to 19).
• named capital projects to be funded from sources additional to those of the main programme will be undertaken during the medium term planning period (paragraphs 20 to 25).
• no capital provision exists should the Hayes Repository PFI Scheme not prove suitable for MPS purposes and alternative storage facilities need to be sought (paragraph 25).
• a report on the establishment of a contingency fund for opportunity purchases will be prepared (paragraph 27).
• the 2002/03 revenue implications of the capital programme have been incorporated within relevant operating budgets (paragraph 28).

175. Capital programme monitoring 2001/02 – third quarter

(Agenda item 13)

This report provided forecasts of capital expenditure for 2001/02 as at the end of the first quarter.

Resolved: That

1. the use of revenue provision to fund classroom conversion works at Farrow House, Hendon be approved;
2. it be noted that based on results to the end of the third quarter, capital expenditure in 2001/02 is forecast to underspend by £7.6m (8.5%) against the revised capital budget of £89.1m;
3. the revised capital budget for 2001/02 of £89.1m be noted.;
4. it be noted that it is intended to carry forward to 2002/03 £6.5m as part of the overall funding of the C3i Project; and
5. it be noted that expenditure to the end of the third quarter amounts to £39.0m against a profiled budget of £52.9m

176. Revenue budget monitoring 2001/02

(Agenda item 14)

This report provided a summary of the revenue budget position as at the end of November together with a commentary on the main budgetary issues including in particular the counter terrorism measures. It also provided an update on the budget priorities With reference to service-wide income (paragraph 13) Members enquired as to whether a record was kept of the extent of income received from sponsorship.

The Best Value Manager reported that a recent best value review had estimated that income from this source was in the order of £1.5 million compared with the £20 million which the Authority would be allowed by statute to raise.

Resolved: That-

1. the financial position to November 2001 be noted;
2. if the MPA contingency is not required to fund any overspending at the end of the financial year it should be added to the Authority's general reserve; and
3. the update on the budget priorities be noted.

177. 2002/03 revenue budget

(Agenda item 15)

A report was submitted which covered a number of outstanding issues in relation to the Authority's budget for 2002/03.

Referring to paragraph 5 the Treasurer said that comments had been received from the Association of London Government but no major points of concern had been raised.

With regard to civil staff pensions (paragraphs 19 and 20) the Treasurer said that it had now been established that a budget reduction of £4.5million could be made for 2002/03 and £9million in a full year

A briefing paper by the Director of Property Services was tabled in connection with the Affordable Houses Scheme (paragraph 25)

The Director of Resources reported that the Management Board was considering establishing a Budget Savings Team to oversee the delivery of the savings .

Resolved:

1. the response made to the consultation on the local government finance settlement be noted;
2. the Commissioner should report to the next meeting of the Authority on the implications of the anticipated delay in the Government's decision on counter-terrorism funding for 2002/03;
3. the revised assumptions to support the recruitment of 1,000 additional officers from the budget provision of £28.9 million be noted;
4. the Budget Scrutiny Group should make recommendations as to a permanent process for identifying savings;
5. any budget flexibility arising from further savings, budget reductions or increased income be applied to applied at the discretion of the Authority to address the following risks:

• To avoid overspending arising from genuine unbudgeted pressures after all other options for containing expenditure have been considered.
• To protect against non-achievement of the required £60 million savings by supplementing the savings list.
• To improve the financial resilience of the Authority by adding to reserves to secure the general reserve position and to address specific issues referred to in the external auditor's qualification of the 2000/01 accounts.

6. in the context of 5 above and the additional flexibility arising from civil staff pensions the following expenditure items as set out in paragraphs 21-26 be incorporated in the budget:

• Camberwell rape haven project
• Custody nurse pilot at Charing Cross Hospital

7. the affordable housing scheme initiative be re-submitted to the Housing Corporation to seek approval to it being operated as a self-financing project; and
8. it be noted that a report on budget management arrangements for 2002/03 will be made to the next meeting of the Committee.

178. Efficiency And Effectiveness Review Programme

(Agenda item 16)

Details of the final report by Accenture on overtime were submitted together with information on the tranche 1 property review and financial devolution.

The Chair suggested that consideration should to be given to Accenture being invited to attend a future meeting to make a presentation to Members.

Resolved: That-

1. the recommendations made by Accenture in their report on overtime and the views expressed by MPS in appendix 3 be noted and the Project Board be instructed to prepare an implementation plan and report back at the earliest opportunity;
2. the appointment of Knight Frank as consultants for the Tranche 1 Property review be noted; and
3. the progress being made on financial devolution be noted and it also be noted that this will be the subject of a further report.

179. Firearms and public order training private finance initiative – proposed variations

(Agenda item 17)

A report was submitted which set out a number of changes which have been requested by SO (19) and CO (12) together with changes in respect of health and safety procedures.

An appendix on the health and safety considerations was tabled. It was noted that the exempt item (agenda item 27) had been withdrawn.

The Director of Property Services said he regretted that it was necessary to submit the request for the additional expenditure and advised that a decision had to be made by the end of the month. There could be implications for the Authority in terms of health and safety legislation if the changes were not agreed.

This report was considered at an early stage during the meeting to enable Commander Alan Brown from Special Operations to attend. The Commander expanded on the need for the variations to ensure the safe and effective use of the facility.

In reply to a question from a Member on the possibility of increasing the income from letting other organisations use the facilities in order to offset some of the additional expenditure, Commander Brown advised that this was not realistic as it was currently envisaged that the facilities would be used exclusively by the MPS for the first two years, and it was not possible to estimate the extent of outside usage after that time.

Members expressed disquiet at the fact that they were being asked to approve further expenditure for which there was no provision and reiterated the comments made at previous meetings that it was not satisfactory for requests for further monies to be submitted in an ad hoc manner and without reference to the impact of making a decision on the overall budgetary position. Members also felt that there needed to be a procedure in place in the case of variations on other PFI projects. It would not be appropriate to agree recommendation 3 in the report in advance of this procedure being agreed.

After detailed consideration of the case put forward the Committee concluded that there would appear to be no alternative but to agree that funding for the extra works would have to be provided.

It was noted that the Committee was due to consider a report on the budget for 2002/03 (agenda item 15) which at paragraph 27 set out some factors concerning the way in which unbudgeted pressures would be dealt with which, if agreed, would be relevant in this case which was identified at paragraph 24 in that report as a budgetary pressure. It was also noted that there might be further ways of meeting the cost of the works other than those discussed in the report. In view of the timetable it was agreed that the Treasurer be given authority to approve the best way to proceed upon receipt of detailed proposals from the Director of Property Services.

Resolved - (with Eric Ollerenshaw asking that his dissent be recorded) That-

1. The variations identified in appendix 1 be approved up to a maximum cost of £277,000 with contingent annual maintenance liabilities of £51,000 per annum (at current prices);
2. proposals for the funding the variations to be approved by the Treasurer; and
3. recommendation 3 be not adopted and a report be submitted to a future meeting on the arrangements for handling the risks which are retained by the MPA under the PFI regime.

180. Provision of computer and other office equipment consumables

(Agenda item 18)

A report was submitted which set out the requirements for the provision of computer and other office equipment consumables

Resolved - That the request for tender action for a replacement contract be agreed.

181. Provision of cleaning services for the north-east and south zones

(Agenda item 19)

A report was submitted which set out the requirements for the provision of cleaning services for the provision of cleaning services for the north-east and south zones.

Resolved - That the request for tender action for a replacement contract be agreed.

182. Provision of enhancements to the command and control system

(Agenda item 20)

A report was submitted which set out the requirements for the provision of enhancements to the CAD command and control system to enable the implementation of C3i in 2004.

Resolved - That the request for procurement action for provision of enhancements to the CAD Command & Control system by means of a variation to the existing outsource service agreement with Unisys be agreed.

183. Catering provision on north east area (part)

(Agenda item 21)

A report was submitted which advised the Committee that catering operations in part of the north east area were transferred to an in-house operation from 28 December 2001

Resolved - That

1. it be noted that the operation of the previously out-sourced catering unit was transferred to an in-house operation from 28 December 2001 pending a long term best value review.
2. the request for post-contract financial actions as specified in the linked exempt report be agreed.

184. Exclusion of press and public

(Agenda item 19)

Resolved: That under section 100 A(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 8 and 9 of Schedule 12A of the above Act.

185. Provision of computer and other office equipment consumables

(Agenda item 23)

This report set out the exempt information in connection with agenda item 18.

Resolved - That the information be noted.

186. Provision of cleaning services for the north-east and south zones

(Agenda item 24)

This report set out the exempt information in connection with agenda item 19.

Resolved - That the information be noted.

187. Provision of enhancements to the command and control system

(Agenda item 25)

This report set out the exempt information in connection with agenda item 20.

Resolved - That the information be noted.

188 Catering provision on North East Area (part)

(Agenda item 26)

This report set out the exempt information in connection with agenda item 21.

Resolved - That the advice given be noted.

189. Firearms and public order training private finance initiative – proposed variations

(Agenda item 27)

No report submitted.

190. Exempt minutes of the meeting held on 6 December 2001

(Agenda item 27)

Resolved: That the exempt minutes of the meeting held on 6 December 2001 be agreed and signed as a correct record.

The meeting ended at 5.15 p.m.

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