Minutes

Minutes of the meeting of the Finance Committee held on 27 September 2002 at 10 Dean Farrar Street, London, SW1H 0NY.

Present:

• Graham Tope (Chair)
• Elizabeth Howlett
• Eric Ollerenshaw
• Sir John Quinton
• Richard Sumray ( up to agenda item 17)
• Rachel Whittaker

MPA staff:

• Peter Martin (Treasurer)
• John Crompton (Committee Services)

MPS staff:

• Stephen House (Deputy Assistant Commissioner)
• Keith Luck (Director of Resources)
• Mike Jennings (Director of Finance)
• Alan Croney (Director of Property Services)
• Ailsa Beaton (Director of Information)
• Alastair Thomson (Director of Commercial Services)
• Chief Superintendent John Landis (Borough Commander Barking and Dagenham (for agenda items 16 and 24).

Part 1

24. Apologies for absence

(Agenda item 1)

Apologies for absence were submitted on behalf of Reshard Auladin, John Biggs and Nicholas Long.

25. Declarations of interests

(Agenda item 2)

No interests were declared.

26. Minutes of the Finance Committee - 11 July 2002

(Agenda item 3)

Resolved: That the minutes of the meeting held on 11 July 2002 be agreed and signed as a correct record.

27. Chair and Members’ update

(Agenda item 4)

No updates were submitted.

28. Date of Finance Committee in June 2003

(Agenda item 5)

The Committee was asked to consider changing the date of its meeting in June 2003.

Resolved - That the June meeting of the Committee be held on 9 June 2003 at 2.00 p.m.

29. Capital programme monitoring 2002/03 - first quarter

(Agenda item 6)

Forecasts of capital expenditure for 2002/03 were submitted together with actual expenditure on capital projects for the first quarter and details of projects added to the capital programme since it was approved by the Finance, Planning and Best Value Committee on 30 April 2002.

In reply to a question from Sir John Quinton the Director of Resources undertook to write to the member with details of the reduction of £6.69 million in the forecast expenditure of the Property Services budget.

Resolved: That

1. the revised capital budget for 2002/03 of £126.716m be validated;
2. an adjustment to the capital programme 2002/03 in respect of the recasting of the scope and timing of six land and buildings projects be approved with expenditure to remain within the overall property services allocation of £28.756m;
3. approval be given to the inclusion within the property services programme of the refurbishment of Tintagel House, Maurice Drummond Section House, and Norman Kendall Section House. Expenditure to be funded from capital reserves pending the sale of Trenchard House;
4. an increase to the capital programme 2002/03 be approved in respect of the forecast overspend of £0.064m on IT, communications, and telephony work at the new MPA headquarters at 10, Dean Farrar Street. The overspend is to be funded from capital reserves; and
5. it be noted that:

• capital expenditure forecast by budget holders as at the end of June indicates an underspend of £12.5m (9.87%) against the revised budget of £126.716m.
• recorded expenditure at the end of the first quarter was £13.561m. which represents 10.7% of the revised budget sum.
• Property Services is in the process of reviewing its building programme with a view to eliminating the present slippage factor.
• formal approval will be sought for an increase in the Transport Services allocation in respect of vehicles purchased for the new Transport Operational Command Unit (OCU) and to support counter terrorism initiatives.
• forecast capital receipts have risen from £15m to £25m.

30. Revenue monitoring 2002/03

(Agenda item 7)

Details of the actual expenditure and income for the MPA/MPS to end of July 2002 were submitted together with an update for the projected financial outturn for the year.

In reply to questions on the section of the report on the delivery of budget savings the Director of Resources advised that approval was being sought to cease seeking savings in respect of the shortfall in the savings target for 2002/03 and that it may be possible to reconsider some of the areas listed for savings in future years.

The Committee noted that the revised format for the monthly report had been devised to make the information more accessible. Members welcomed the new format but felt that there should be an explanatory note in the event of a substantial change in an item from the previous month.

Resolved - That

1. subject to the inclusion of an explanatory note in the event of a substantial change in an item from the previous month, the revised presentation of the summary be endorsed for use in future reports; and
2. no further action be taken in the current financial year to seek savings from the areas listed at paragraph 19.

31. Recovery of overhead cost of officers seconded to NCS and NCIS

(Agenda item 8)

A report was submitted concerning the payment of administrative on costs on MPS officers seconded to the National Crime Squad and the National Criminal Intelligence Service.

Resolved - That

1. the debts of approximately £4 million relating to administrative oncosts raised against NCS/NCIS prior to 31 March 2002 be written off.
2. the recovery of administrative oncosts be pursued in the future.

32. MPA budget submission 2003-04 progress update

(Agenda item 9)

A report was submitted which updated the Committee on events concerning the preparation of the budget submission since the last meeting of the Committee.

Resolved - That the contents of the report be noted as preparatory information for the informal member workshop on 4 October 2002.

33. Efficiency and effectiveness review programme

(Agenda item 10)

An update was provided on the progress made in the efficiency and effectiveness reviews.

Resolved –That the progress on the efficiency and effectiveness reviews including the changed scope of some of the reviews.

34. Consultation on grant formula changes

(Agenda item 11)

The Government published a consultation paper in July 2002 on the review of the grant distribution system. A report was submitted which included a draft response. In the light of events since the report was originally published, a further draft response had been circulated prior to the meeting.

The Director of Resources advised that the matter had been discussed at the Commissioner’s Management Team earlier that day. The meeting had supported the general tenor of the draft response but had suggested that a comment be included to say that the case for inclusion of daytime population data could justify an increase in the special payment.

Resolved - That the submission be made as drafted but amended to suggest that the arrangement underlying the proposed use of daytime population in the allocation formula could justify an increase in the special payment.

35. Insurance arrangements

(Agenda item 12)

A report was submitted which explained the arrangements put in place for the Authority’s liability insurances, outlines the results of a competitive run for insurance advisers and gave details of the progress in the employment of a risk manager.

In connection with property insurance renewal (paragraph 6) an exempt schedule setting out the details of the cover was tabled. The Committee noted that there had been a substantial increase in the premia for all insurance and there would need to be appropriate provision for this in the budget for 2003/04.

Resolved - That

1. the arrangements put in place for liability insurance be noted;
2. the recommendations of the Treasurer in respect of the renewal of property insurance as outlined in the tabled exempt appendix be agreed;
3. it be noted that Willis has been appointed as the Authority’s insurance advisers; and
4. the progress in the appointment of a risk manager be noted.

36. Budget devolution

(Agenda item 13)

A report was considered which gave an overview of the current financial devolution position within the MPS.

Resolved - That the report be noted.

37. Efficiency plan 2001/02

(Agenda item 14)

A report was submitted which advised that HM Inspectorate of Constabulary had advised that the efficiency target set for 2001-02 had been achieved.

Resolved-. That the report be noted.

38. Estate update

(Agenda item 15)

A report was submitted which updated the Committee on the latest information on estate matters.

In reply to a question from a member on Trenchard House the Director of Property Services advised that the reason why a planning adviser had been retained was to ensure that the best price was obtained for the disposal.

Members requested that reports on Trenchard House and the disposal of premises in Old Street be submitted at the earliest opportunity.

Resolved- That the report be noted.

39. Dagenham Police Station

(Agenda item 16)

A report was considered which set out the accommodation requirements for Barking and Dagenham Operational Command Unit and sought approval to the medium term borough accommodation strategy through alteration, extension and refurbishment works to Dagenham Police Station.
The Borough Commander, Chief Superintendent John Landis, attended for consideration of this item. Plans were displayed showing the proposed works.

In reply to a question the Director of Property Services confirmed that the proposal represented best value.

Resolved - That

1. the business case to improve accommodation at Dagenham be noted;
2. endorse the recommendation in support of the only viable option in the Investment Appraisal be endorsed;
3. the medium term accommodation requirement to undertake alterations, extension and refurbishment works to the existing Dagenham Police Station be supported; and
4. approval be given to proceed with tender action and award of a contract within the approved budget cost allowance detailed in the report at agenda item 24, subject to the award being reported, or if the tender exceeds the approved budget cost allowance a further paper will be submitted.

40. MPS information strategy - implementation progress report

(Agenda item 17)

The initial planning work for the MPS information strategy is completed and a single, coherent programme of development projects is underway. A report was considered which provided information on the progress made.

Resolved

1. the progress made to date with the implementation of the information strategy be noted be noted; and
2. the level of finance required to deliver the strategy response as set out in appendix 2 of the report be noted and supported.

41. Aerial sites - MPA policy and airwave arrangements

(Agenda item 18)

A report was submitted concerning the use of MPA property and sites to house aerials and associated equipment for the Airwave project. The report also invited the Committee to consider a policy in respect of the general use of MPA sites for commercial aerial users.

The Committee considered that the report did not provide sufficient information upon which to formulate a revised policy position in respect of the use by third parties of the MPA estate for commercial aerial purposes. A more detailed report was requested.

Resolved - That

1. the position in respect of the Airwave project aerials be noted.
2. a further report be submitted on the use by third parties of the MPA estate for commercial aerial purposes.

42. Procurement of mobile data equipment for C3i/airwave

(Agenda item 19)

A report was submitted which sought approval to the placing of an OJEC notice inviting expressions of interest in the provision of mobile data terminal hardware in support of mobile services for C3i.

Resolved - That an OJEC notice be placed inviting expressions of interest in the provision of mobile data terminal hardware.

43. Refurbishment of Simpson House catering facilities

(Agenda item 20)

Detailed proposals to upgrade the catering facilities at Simpson House, Hendon were submitted.

Resolved - That

1. The refurbishment scheme for Simpson House catering facilities be approved; and
2. the building contract be awarded.

44. Supply and maintenance of self - user photocopiers

(Agenda item 21)

A report was submitted concerning the outcome of a formal competitive tendering exercise for the supply and maintenance of self-user photocopiers.

Resolved - That a contract be awarded to NRG Group UK Limited for the supply and maintenance of self-user photocopiers for a period of up to five years.

45. Supply and delivery of male body armour

(Agenda item 22)

A report was submitted concerning the outcome of a formal competitive tendering exercise for the supply and delivery of male body armour.

Resolved- That a contract be awarded to Mehler Vario System GmbH for the supply and delivery of male body armour (Metvest) for a period of up to five years.

46. Exclusion of press and public

(Agenda item 23)

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.

Part 2

Summary of decisions made on exempt items

Minute 47 agenda item 24 Dagenham police station
Exempt information noted. See minute 39 for full decision.

Minute 48 agenda item 25 Procurement of mobile data equipment for C3i Airwave
Exempt information noted. See minute 42 for full decision.

Minute 49 agenda item 26 Supply and maintenance of self user photocopiers
Exempt information noted. See minute 44 for full decision.

Minute 50 agenda item 27 Supply and delivery of male body armour
Exempt information noted. See minute 45 for full decision.

Minute 51 agenda item 28 Accommodation changes
Endorsed action to undertake accommodation works.

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