Report on the sub-committees of the Finance and Resources Committee

Report: 6
Date: 30 July 2009
By: Chief Executive

Summary

This report contains a summary of reports received by the sub-committees of the Finance and Resources Committee.

A. Recommendation

That

1. members note the report; and
2. agree that the current approach to cost challenge and budgeting is, at this point in time, maintained (paragraph 7 refers).

B. Supporting information

1. This report covers the following meetings:

• Estate Panel – 3 June 2009
• Resources Sub-committee – 16 July 2009
• Productivity and Performance Sub-committee – 16 July 2009

Estate Panel – 3 June 2009

2. The Panel met on 3 June. A summary of the current position with regard to the Estate Strategy is attached as Appendix 1. The next meeting of the Panel is on 30 July.

Resources Sub-committee – 16 July 2009

Capgemini (exempt)

3. The Sub-Committee received the quarterly monitoring report on the Capgemini contract. CapGemini is contracted until 2012 to provide end-to-end support of the ICT (Information & Communication Technology) infrastructure. This report updates members on the projected value of future variations. It was agreed that in future MPA officers would produce a supplementary report containing information on the dip sampling which is carried out.

Procurement and contract items (exempt)

4. The Sub Committee considered a number of reports relating to procurement and contract matters which are also on the agenda for this meeting.. A summary of the comments from the Sub-Committee is shown in a separate report on the exempt section of the agenda for this meeting.

Productivity and Performance Sub-committee – 16 July 2009

Zero Based Budgeting (ZBB)

5. As part of its examination of business planning activity the Sub-Committee has been giving detailed consideration to zero based budgeting and cost challenge. At this meeting two detailed case studies were presented (Transforming Human Resources and Finance and Resources Modernisation.) to evidence how the MPS have used a combination of zero based budgeting techniques and incremental budgeting to deliver savings.

6. The Sub-Committee has concluded that it would be preferable to allow the MPS to continue with the current processes they have in place rather than explore further implementing ZBB.

7. The Committee is therefore asked to formally agree that there be no trials of pure zero based budgeting at this point in time.

Presentation by the Home Office

8. A presentation was received by two representatives from the Productivity Unit of the Home Office. The presentation covered a number of useful points such as the fiscal outlook and resource management capability and efficiency measures.

9. A further presentation from the Home Office on Quest will be made to a future meeting of the Sub-Committee. Quest is a Home Office sponsored programme to improve operational processes in the police service.

10. Copies of non exempt reports and minutes from the Authority and its committees can be viewed on the MPA website.

C. Race and equality impact

There are no race and diversity impact issues directly arising from this report. Race and diversity impact is a standing item on reports submitted to committees and sub committees.

D. Financial implications

There are no financial implications directly arising from this report although there could be financial implications arising from items discussed by sub-committees.

E. Background papers

None

F. Contact details

Report author: John Crompton, MPA

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

Appendix 1

Update on review of the Estates Strategy

Date: 30 July 2009
By: Treasurer

Summary

In October 2008 Finance and Resources Committee agreed that a member led panel should undertake a review of both the estate strategy and the process for engaging with the public on proposals for the public facing elements of the estate. The member led panel has now met a number of times and this report updates members of Finance and Resources Committee on the work of the panel to date and next steps in completing the review.

A. Recommendation

Members are asked to note the progress made by the panel to date and the next steps in completing the review.

B. Supporting information

Background

1. The MPA’s operational estate is located throughout the 32 London boroughs, valued at £1.7bn it includes over 750 buildings totalling 6.4 million square feet and covers a wide variety of properties including police stations, safer neighbourhood bases and offices. However the current estate faces a number of challenges. Much of it pre dates 1940 with many buildings no longer fit for use; either because they do not provide suitable accessibility, do not meet operational needs, or are inefficient to run.

2. In recognition of the need to modernise the estate a new model was developed for the public facing estate which is intended to provide accommodation that enables a more accessible, flexible and effective police service for each borough. In the future borough accommodation will consist of a combination of front counter facilities and safer neighbourhood bases (which together will provide the main public access to the police), patrol bases, a custody centre and offices. There will be no one size fits all solution, local geography and demographics will determine requirements for each borough.

3. In November 2007 individual asset management plans were published, summarising how the new model would be rolled out in each borough. This was followed by a three month consultation period. However, the results of the consultation clearly indicated a lack of understanding by the public as to how the police service operates from it’s existing buildings and how the new proposals would provide the public with greater access to the police in future, as well as a lack of willingness to engage when changes to the estate could only be shown in generalised terms as specific proposals had not been developed. The consultation also highlighted considerable opposition in a few areas to the building of large custody centres and to the removal of local police facilities, specifically iconic police stations.

4. In view of this and in recognition that the current strategy for the estate in it’s entirety needed reviewing, Finance and Resources Committee agreed in October 2008 that a member led panel would undertake a review of both the estates strategy and the process for engaging with the public with regards plans for the public facing estate.

5. The member led panel composed of MPA members and key personnel from both the MPA and MPS has since met on a regular basis and has also spent a day out visiting properties that represented both the current problems facing the estate and the proposed solutions. This included a visit to a police station in need of modernisation, a modernised custody facility and a new patrol base.

6. Discussions to date have focussed on gaining a greater understanding of the problems facing the public facing estate, the solutions to this and determining how best to engage with the public. A variety of options for communicating with the public have been explored, including focussing on communicating with a small number of boroughs who are felt to be a high priority either because of concerns raised during the last round of consultation or because they are at the top of the priority list in relation to having a new patrol base and custody centre.

7. However the panel are now of the opinion that focussing on a small number of boroughs is not the right approach, nor is adopting the same approach for each borough. What is needed are two different approaches, one on a pan London basis, ensuring the public gain a better understanding of how the “operational model” works, with bespoke communication carried out in boroughs, focussing on the specific plans for the borough.

8. Given the complexities involved in communicating with the public on plans for the public facing estate, and taking into account the lessons learnt from the last round of consultation, the panel has decided to engage a consultant to advise on how best to communicate. The intention is to engage someone within the next month, with the consultant then reporting back to the panel in September and their proposals rolled out shortly after.

9. The panel has also discussed the tightening financial landscape and the impact this is having on the capital programme and timescales to modernise the estate, and have explored the practicalities of borrowing additional funding in the short term to replace the downturn in capital receipts. Finance and Resources Committee have since approved proposals to borrow additional funds to provide flexibility in funding the capital programme including the potential to cover the loss of capital receipts where disposal is currently not considered to offer best value.

10. The panel has also had initial discussions about drafting a revised estates strategy. Current proposals are to produce a comprehensive strategy that covers all aspects of the estate and a summary document. The timelines for the production of these documents are yet to be agreed.

C. Race and equality impact

1. None directly related to this paper. Race and Equality issues will be considered as part of the development of the communication and estate strategies

D. Financial implications

1. None directly related to this paper. Capital and revenue implications will be considered as part of the development of the communication and estate strategies.

E. Background papers

• Estates Strategy Report – Finance and Resources Committee – 23 October 2008

F. Contact details

Report author: Annabel Adams – Deputy Treasurer, MPA

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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