Minutes

Minutes of the meeting of the Finance and Resources Committee held on 18 November 2010 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Steve O’Connell (Chair)
• John Biggs
• Faith Boardman (Vice Chair)
• Chris Boothman
• Dee Doocey
• Neil Johnson
• Valerie Shawcross
• Graham Speed

Also attended: Dinah Cox, interim Chief Executive of the Safer London Foundation

MPA officers

• Bob Atkins (Treasurer)
• John Crompton (Treasury Team)

MPS officers

• Ailsa Beaton (Director of Information)
• Nina Cope (Programme Director TP Development)
• Doug Fuller (THR Programme Director)
• Anne McMeel (Director of Resources)
• Gordon Mitchell (Strategic Insurance Manager)
• Nick Rogers (Director of Financial Services)
• Peter Ross (Director, Programme Delivery PSD)
• David Woosey (Acting Director, Procurement HR)

74. Apologies for absence

(Agenda item 1)

Apologies for absence were submitted on behalf of Reshard Auladin and Amanda Sater.

75. Declarations of interests

(Agenda item 2)

No declarations were made.

76. Minutes of the meeting held on 21 October 2010 (Part 1)

(Agenda item 3)

Resolved – That the minutes of the meeting of the Committee held on 21 October 2010 be agreed and signed as a correct record.

77. Business considered by the sub-committees

(Agenda item 4)

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.

78. Capital and revenue budget monitoring 2010/11 – period 6

(Agenda item 5)

This report provided an update on the revenue monitoring position for 2010/11 at period 6 (to the end of September). The revenue budget is forecast to overspend by £8.9m (0.3% of budget). The capital programme as at Period 6 (to the end of September) shows year to date total expenditure of £72m. This total represents 26.1% of the revised annual budget of £276.3m. The forecast for the year of £253.3m represents an underspend of £23m (8.3% of the revised annual budget).

Resolved – That

1. the year to date and forecast position for revenue and capital budgets be noted;
2. it be noted that budget reductions of £17.7m have been allocated to Business Groups following the withdrawal of Government Grant and that his follows the £10.3m which was allocated to Business Groups in Period 5; and
3. approval be given to a budget virement of £1.2m as outlined in paragraph 64.

79. Allocation of Proceeds of Crime Act funds to the Safer London Foundation

(Agenda item 6)

A report was submitted which asked the Committee to note the allocation of grants made by the Safer London Foundation through funds provided by the Proceeds of Crime Act (POCA) in 2009/10 and approve a further allocation of funds to the Safer London Foundation (SLF) for 2010/11 for use to fund community projects for crime reduction.

Dinah Cox the interim Chief Executive of the Safer London Foundation attended for consideration of this item. She provided a brief outline of the work of the Foundation, explained how the annual POCA allocation was spent and answered questions from members. She advised that because of the local nature of many of the organisations which were supported by the Foundation contact at borough level had tended to be via bodies such as the Safer Neighbourhood teams rather than the local authority. The Foundation was now looking at more strategic funding via bodies like Councils for Voluntary Action. The uses of the funds varied from one organisation to another but where appropriate the SLF did work closely with newly established organisations to help them become established.

Members requested some further background information on the Proceeds of Crime Act and the reason why the Safer London Foundation had been chosen to distribute the funds in London.

Resolved – That

1. the grant funding provided by the Safer London Foundation during 2009/10 to community projects through the allocation of £500,000 of Proceeds of Crime Act funds be noted; and
2. approval be given to the allocation of a further £500,000 of POCA funds to the Safer London Foundation to be used for grants to community organisations for crime reduction projects.

80. Safer Neighbourhood 2 Property Programme

(Agenda item 7)

This report provided an update on the progress made in the last seven months on the Safer Neighbourhood 2 Property Programme and proposed that 33 projects for permanent SNT bases should no longer proceed. The report advised that Territorial Policing and Property Services are reviewing those SN bases that currently have lease renewals due or potential lease breaks to support the Corporate Real Estate principles to maximise the usage of buildings without affecting operational capability.

Graham Speed said that the Estate Panel had not considered the report. He had considerable reservations about some aspects of the report and in particular the implications of the decision that 33 projects for permanent SNT bases should not to proceed would have. These reservations meant that he could not support the third recommendation as currently worded. One concern was the impact which keeping the Safer Neigbourhood teams in their current locations would have on the other plans for the estate as he understood there are a number of bases which are located in police stations which were due to be disposed. This therefore could have an impact on the disposal programme. There appeared to be no mention of the costs of relocating the teams in bases to be exited. The report referred to savings through ending leases, and there should be clarity on whether this meant that teams in bases would be relocated into existing buildings.

The Programme Director TP Development said that she did not consider that the outcome of the review had been pre-empted.

Other members indicated that they had reservations about the suspension of the property programme which did not appear to have been the subject of prior discussion with the MPA and would therefore not be able to support recommendation 3 as currently worded. It was agreed that the third recommendation should be re-worded to make it clear that final decisions had yet to be made and that there was some involvement of the Authority, in particular the Estate Panel, in the outcome of the SN2 review. Some members also felt that there was a case for the matter to be discussed by the full Authority in view of its wide impact across London.

Resolved –. That

1. The Territorial Policing development programme review of Safer Neighbourhoods and its relationship with the PSD SN Property programme be noted;
2. the progress made on the SN2 Property Programme be noted; and. .
3. approval be given to the proposed pause to the Safer Neighbourhood Programme which will potentially reduce the direct Property Services capital budget to £79.86M and the Department of Information capital expenditure to £3.1 M (as detailed in the financial implications section of the report). The approval is subject to the SN2 review being asked to bear in mind the concerns expressed by members around their continuing support for the principles underlying the SN programme and to individual proposals being scrutinised by the Estate Panel.

81. Disposal of land at Hainault Triangle, Leyton

(Agenda item 8)

A report was submitted which sought the approval of the Committee to the disposal of the freehold interest in the land at Hainault Triangle, 606-638 High Road, Leyton, E10 6RN following an open market tender.

Graham Speed, Chair of the Estate Panel confirmed that he was content with the report’s proposals which had not been formally considered by the Panel.

Resolved –That

1. approval be given to the disposal of the freehold interest in land at Hainault Triangle, Leyton 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 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.

82. Disposal of former police station, Leytonstone, Waltham Forest

(Agenda item 9)

A report was submitted which sought the approval of the Committee to the disposal of the freehold interest in Leytonstone Former Police Station at 470 High Road, Leytonstone, London, E11 3HN following an open market tender.

Graham Speed, Chair of the Estate Panel confirmed that he was content with the report’s proposals which had not been formally considered by the Panel.

In agreeing the recommendations the Committee noted the advice in the report that the recommended disposal was not to the highest bidder.

Resolved -.. That

1. approval be given to the disposal of the freehold interest in Leytonstone former police station 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 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.

83. Corporate insurance update 2010

(Agenda item 10)

This report outlined the outcome of the 2010 insurance tender process, the extension to the insurance broker contract, movements/alterations to the various insurance reserves and also sought approval to the insurance strategy going forward in to 2011. The Resources and Productivity Sub-Committee had supported the recommendations but because the report sought approval to the use of reserves and continuation of the personal insurance indemnity policy was necessary to forward the matter to the Committee for decision as the Sub-Committee does not have the necessary delegated authority.

The Strategic Insurance Manager advised that the Resources and Productivity Sub-Committee had raised two points during its consideration of this report - the need for an accurate insurance rebuild valuation and the options for joint working across the GLA family. Both of these points were being followed up.

Resolved That

1. the outcome of the tender and annual renewals for the insurance programme be noted;
2. the extension of the Heath Lambert insurance broking contract for another 2 years, effective April 2011, under the existing contract conditions for the fee indicated in this report be noted;
3. the renewal strategy for 2011 including the current position on helicopter insurance be agreed;
4. the Personal Insurance Indemnity Policy be continued; and
5. the transfer of premium savings to existing reserves and the overall position on reserves.

84. Any other urgent business

(Agenda item 11)

There were no urgent items.

85. Exclusion of press and public

(Agenda item 12)

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 paragraph 3 of Schedule 12A to the above Act.

Summary of decisions made on exempt items

86. Exempt appendix to corporate insurance update 2010

(Agenda item 13)

Information noted.

87. New custody and case preparation support -12 month extension

(Agenda item 14)

An extension to the existing contract was agreed.

88. Exempt appendix to request for authority to dispose of additional surplus properties in 2010/2011

(Agenda item 15)

Information noted.

89. Exempt appendices to disposal of Hainault Triangle Leyton

(Agenda item 16)

Information noted.

90. Exempt appendices to disposal of former police station Leytonstone

(Agenda item 17)

Information noted

91. Report from the Olympic Sub-committee

(Agenda item 18)

Business case relating to the Torch relay was agreed.

92. Voluntary early departure of police staff from the MPS

(Agenda item 19)

Approval given to access to the reserves to enable the MPS to meet the costs of a voluntary early departure scheme.

93. Transforming HR

(Agenda items 20 and 20a)

Information noted.

94. Minutes of the meeting held on 21 October 2010 (part 2)

(Agenda item 21)

Agreed and signed as a correct record.

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