Minutes

Minutes of the meeting of the Finance and Resources Committee held on 23 October 2008 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Steve O’Connell (Chair)
• Faith Boardman
• Dee Doocey
• Len Duvall (to agenda item 9)
• Deborah Regal
• Graham Speed
• Richard Tracey

MPA officers

• Catherine Crawford (Chief Executive)
• Ken Hunt (Treasurer)
• John Crompton (Committee Services)
• Peter Tickner (Director of Internal Audit) attended for consideration of agenda item 15.

MPS officers

• Jane Bond (Deputy Director, Property Services)
• Alan Croney (Director, Property Services)
• Anthony Doyle (Director of Procurement)
• Karim Mahamdallie (Director of Business Support)
• Anne McMeel (Director of Resources)
• Patrick Philips Director of Information)
• Jon Pritchard (Director, IT Procurement)
• Chris Nason (Head of Service Analysis, Directorate of Information) attended for agenda items 13

42. Apologies for absence

(Agenda item 1)

Apologies for absence were received from Reshard Auladin and Cindy Butts.

The Chairman welcomed new members to their first meeting.

The Chairman referred to the fact that it had been necessary to send out two of the reports after the main agenda despatch. He was satisfied that there had been exceptional circumstances in both cases and his stated aim remained that this should not be necessary.

43. Declarations of interests

(Agenda item 2)

There were none.

44. Minutes of the meeting of the Finance Committee (part 1) and the joint meeting with the Planning Performance and Review Committee both held on 18 September 2008

(Agenda item 3)

RESOLVED – That the minutes of the meetings of the Finance Committee and the joint meeting with the Planning Performance and Review Committee held on 18 September 2008 be agreed and signed as a correct record.

Arising-
In reply to a question from Dee Doocey the Chairman confirmed that the arrangements for the budget scrutiny process next year would be revised to include greater involvement by members of the Finance and Resources Committee.

45. Finance and Resources Committee - appointments

(Agenda item 4)

A report was submitted concerning Committee appointments.

The Chairman reported that there had been some expressions of interest to serve on the two sub-Committees and it was hoped that there would be further expressions by the time of the away day on 31 October. A report on membership and terms of reference would be submitted to the next meeting.

RESOLVED - That

1. Faith Boardman be confirmed as Vice Chairman of the Committee; and
2. a report on the membership of the two sub-committees and their terms of reference to be submitted to the next meeting of the Committee.

45. Revenue and capital budget monitoring report 2008/09 – period 5

(Agenda item 5)

This report provides an update on the revenue and capital budget monitoring position for 2008/09 at period 5 (to the end of August). The revenue budget is forecast to underspend by £20.8m (approximately 0.7% of budget). The capital programme as at period 5 (to the end of August) shows year to date total expenditure of £48.4m. This total represents 20.1% of the annual budget of £241.1m. The forecast for the year of £223.6m is £17.5m below the annual budget.

The Director of Resources advised that the seven year capital programme would be submitted to the next meeting. The emphasis would be on affordability rather than capacity.

RESOLVED – That

1. the year to date and forecast position for revenue and capital budgets be noted; and
2. the budget changes as described in paragraph 34 be approved.

46. Annual Statement of Minimum Revenue Provision

(Agenda item 6)

A report was submitted which advised the Committee that the Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2008 came into force on 31 March 2008. The Regulations require the Authority to approve an Annual Statement of Minimum Revenue Provision (MRP) which is the amount that must be set aside from revenue funds to meet the repayment of borrowing undertaken to support capital investment. The Regulations require retrospective approval to be given to the arrangements operating in 2007/08 and approval of an Annual Statement for calculating MRP for 2008/09.

RESOLVED – That

1. for 2007/08 the Authority make a Minimum Revenue Provision in accordance with the capital financing requirement method;
2. for 2008/09 the Authority make a Minimum Revenue Provision in accordance with:-
   the capital financing requirement method for borrowing undertaken prior to 2008/09, and any borrowing undertaken during the year supported through the revenue grant settlement; and
   the depreciation method for unsupported borrowing undertaken in 2008/09 as permitted by the flexibilities provided under the Prudential Code; and
3. the Annual Statement detailing how MRP should be calculated for future years form part of the formal setting and review of the Prudential Indicators. The Annual Statement will subsequently , which will then be included in the annual Treasury Management Strategy.

47. Icelandic Investments

(Agenda item 7)

This report provided members with the MPA position on exposure to Icelandic Banks, other MPA investments and future strategy.

RESOLVED – That

1. the report be noted; and
2. the outcome of the internal audit review of investments with Landsbanki be reported to the 20 November meeting.

48. Estate strategy

(Agenda item 8)

In 2004 the Authority and Service published a joint estates strategy entitled ‘Building Towards the Safest City’ this covered the period 2003 – 2008 and was followed by the MPA Residential Strategy in February 2006 and the MPA/MPS Estates Strategic Plan in December 2006. The Estates Strategic Plan was subsequently updated and presented to the MPA in September 2007. In supporting the Plan, the MPA approved the implementation of a Borough wide consultation programme in regard to the borough based Territorial Policing (TP/TPHQ) Estate, to provide local communities and those with an interest in policing matters the opportunity to comment on proposals in regard to the direct public/citizen facing estate. Following a review of the feedback received from the public consultation and a further review of the Estate Strategy in response to a pledge by the Deputy Mayor for Policing, this report updates members on the key strands of the Estate Strategic Plan and seeks support to the direction that is proposed moving forward.

A list of the public citizen facing projects currently approved to continue was tabled. Following a request from members it was that the information be sent out again with the addition of some explanatory narrative.

A petition concerning the police station in Streatham was submitted by Councillor Julian Heather of Lambeth Council. The prayer read ‘Save our Police Station – we believe our area needs a proper police station – not just a front office with limited opening hours’ and contained in excess of 1,000 signatures.

Members indicated that they supported the creation of the member led panel. The Chairman invited Graham Speed to chair the panel. Dee Doocey and Len Duvall said they would wish to sit on the panel. It was noted that the terms of reference would be submitted to the November meeting.

Members felt that the situation regarding the consultation was probably varied, and that the panel might well conclude that there was not a need to re-visit boroughs which had little scope for change – e.g. where there was a police station recently provided under a Private Finance Initiative.

Dee Doocey said that given the state of repair of much of the estate she would suggest that recommendation 6 be amended to state that the proceeds from property sales would be used to improve the estate within the same borough which she thought had been the agreed position. The Chairman said he could not support the suggestion.

RESOLVED – That (with Dee Doocey asking it be recorded that she did not support the recommendations)

1. to note and support the current MPA/MPS Estate Strategic Plan and related specific Asset Management Plans; the key objectives of the Plan and basis of the estates strategy that have been adopted with reference to the three distinct elements of the estate; public/citizen facing; non-public operational and residential;
2. it be agreed that an MPA member led panel - supported by MPA officers and operational and professional advice from the MPS - updates the current Estates Strategy and Estates Strategic Plan to provide clarity between the Strategy and delivery of the estate modernisation programme for presentation to the Authority in Spring 2009;
3. it be agreed that the member led panel lead on the development of a revised Consultation Strategy in regard to the public/citizen facing elements of the estate; providing direction in regard to the consultation process and the timing of consultation on a borough-by-borough basis. Note that during this process the safer neighbourhood programme, and those projects that have previously been approved by the MPA, within the front counter programme, patrol base programme and Borough Based custody centres programme and work in relation to the non-public operational estate will continue. There will be no further disposals of properties that support the public/citizen facing estate at this time;
4. the members of the panel be confirmed as Graham Speed, Dee Doocey and Len Duvall, with Graham Speed as chair;
5. the current estate strategy in regard to the non-public operational estate and support the ongoing delivery of the asset management plans supporting this part of the strategy, within current funding envelopes, and subject to the statutory town planning and Building Control/Local Authority Requirements be noted;
6. the current estate strategy in regard to the residential estate be noted; the ongoing delivery of the asset management plans supporting this part of the strategy and the steps being taken by the MPS to sustain the MPS’s position as an employer of choice be supported and the role of Property Zone and the ongoing development of this facility for MPS officers and staff be noted; and
7. it be agreed that in accordance with the agreed MPA/MPS Estates Strategy, funds released from the disposal of surplus assets or assets that are no longer fit for use are regarded as a corporate resource and used to support the overall capital programme and in particular the modernisation of the estate.

49. Routine contracts programme

(Agenda item 9)

This report set out the latest version of the Routine Contracts Programme, which provides members with detail on the contracts above £1m that the MPS wishes to let over the next twelve months on a rolling programme as well as details of those contracts let since the last report. The programme only covers the known routine renewals and note the emergent requirements that will continue to be dealt with under the current arrangements and brought to Committee where required

RESOLVED – That approval be given to the latest version of Routine Contracts Programme and authorise the placing of OJEU advertisements where appropriate.

50. Exclusion of press and public

(Agenda item 10)

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 3 and 7 of Schedule 12A to the above Act.

Summary of decisions made on exempt items

Minute 51 agenda item 11 – Exempt appendices to routine contracts programme
Information noted.

Minute 52 agenda item 12 – Central London training facility
Recommendations relating to the extension of a lease of premises in Buckingham Palace Road adopted.

Minute 53 agenda item 13 – update on future variations to the Cap Gemini contract
Recommendation relating to this proposal adopted.

Minute 54 agenda item 14 – extension of MetHR managed service contract with Unisys
Recommendations relating to the extension of the contract were agreed.

Minute 55 agenda item 15 – Oracle unlimited licence agreement
Deferred to next meeting

Minute 56 agenda item 16 - Exempt minutes of the Finance Committee held on 18 September 2008
Agreed and signed as a correct record.

Additional item

Minute 57 – opportunity to acquire a property within the Central London estate
An oral report was noted, and noted that a special meeting of the Committee might be necessary in early November to give further consideration to the options.

The meeting closed at 12.23 p.m.

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