Minutes - draft

These minutes are draft and are to be agreed.

Minutes of the meeting of the Finance and Resources Committee held on 23 June 2011 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Faith Boardman (Vice Chair in the Chair)
• Reshard Auladin
• John Biggs
• Chris Boothman
• Dee Doocey
• Amanda Sater
• Valerie Shawcross
• Graham Speed

MPA officers

• Annabel Adams (Deputy Treasurer)
• Catherine Crawford (Chief Executive)
• John Crompton (Treasury Team)
•  Ken Gort (Head of Counter Fraud) attended for consideration of agenda item 36.

MPS officers

• Jane Bond (Director of Property Services)
• Nina Cope (Director, TP Development)
• Anne McMeel (Director of Resources)
• Gary Pugh (Director of Forensic Services)
• Nick Rogers (Director of Finance Services)
• Ellie Ryan (Employee Relations)
• David Taylor (Deputy Director, Asset Management, PSD)
• Lee Tribe (Director of Procurement Services)
• Alex Walsh (Organisational Development)
• Sally Waterlow (Ill-health pensions)

Chief Superintendent Sandra Looby (Borough Commander, Haringey) attended for consideration of agenda item 10

Rena Sodhi, the Chief Executive of the Safer London Foundation attended for consideration of agenda item 7

194. Apologies for absence

(Agenda item 1)

Apologies for absence were submitted on behalf of Steve O’Connell and Neil Johnson. Pursuant to Standing Orders the Vice-Chair, Faith Boardman, chaired the meeting.

195. Declarations of interests

(Agenda item 2)

There were none.

196. Minutes of the meeting held on 14 April 2011 (part 1)

(Agenda item 3)

Resolved – That the minutes of the meeting of the Committee held on 14 April 2011 be agreed and signed as a correct record.

197. Report from the sub-committees of the Finance and Resources Sub-committee

(Agenda item 4)

Resolved – That the information be noted.

198. Revenue and Capital budget monitoring 2010/11 – provisional outturn

(Agenda item 5)

The report provided an update on the provisional & unaudited outturn position for revenue and capital budgets in 2010/11. The revenue budget is underspent by £5.6m (0.2% of budget) which takes account of proposed transfers to earmarked reserves as part of the year-end process of £45.5m. The provisional outturn for the Capital Programme is £188.2m, which is £88.1m (31.9%) below the revised budget of £276.3m.

The Director of Finance Services reiterated the work being undertaken to ensure better forecasting of the capital programme and referred to the report on the capital programme which would be considered at the next meeting of the Committee.

The Chair said that it would be useful if the Resources and Productivity Sub-committee could receive some of the emerging work on the capital programme before this report was submitted to the Finance and Resources Committee.

The Chief Executive reported that the Mayor and the Chair of the Authority had taken up with the Home Office the issue relating to the PCSO funding which was outlined in paragraph 5 of the reports.

Resolved – That

1. The provisional and unaudited outturn position against the revenue and capital budgets for the year be noted.;
2. The proposed transfers to reserves of £45.5m as detailed in paragraph be agreed; and
3. Approval be given to a transfer to reserves of £5.6m for support of the 2011/12 budget as per the 2011-14 Business Plan (paragraph 8 refers).

199. Treasury Management financial review

(Agenda item 6)

The report presented the Annual Review of Treasury Management for the 12 month period ended 31 March 2011 and included an update for Quarter 4 2010/11. The report had previously been considered at the Resources and Productivity Sub-committee where the Treasury Management adviser had attended.

It was noted In accordance with CIPFA guidance the report would also be considered at the full Authority meeting on 28 July 2011

Resolved – That the Authority be advised that the recommendations should be supported.

200. Safer London Foundation funding

(Agenda item 7)

This report provided a brief overview including the funding history of the Safer London Foundation and identified an option for 2011/12 funding support.
Rena Sodhi the Chief Executive of the Safer London Foundation attended for consideration of this item. Ms Sodhi said the Foundation was very grateful for the funding it received from the Metropolitan Police Authority. She outlined some of the work the Foundation intended to carry out in the coming year and steps being taken to identify additional sources of funding.

It was noted that a report on the Foundation was also due to be submitted to the next meeting of the Communities Equalities and People Committee on 7 July.

Resolved – That approval be given to one-off funding for 2011/12 of £0.5m to the Safer London Foundation from the Police Property Act Fund subject to (a) that the SLF include in their 2011/12 annual report how the funding was spent and (b) Communities Equalities and People Committee (CEP) being content on how the £0.5m grant in 2010/11 was spent.

201. Estates update

(Agenda item 8)

A report was submitted which provided an update in regard to the estate responsibilities covered by Property Services.

The Director of Property Services referred to the information in paragraph 8 on the post-occupancy evaluation of the Waltham Forest custody suite and advised that a report on the evaluation would be submitted to the Estate Panel.

Resolved –That the report be noted

202. Proposed refurbishment/refresh of four sites at Brixton, Kingston, Walworth Road and Colindale

(Agenda item 9)

This report proposed the refurbishment/refresh works to four police buildings core to the estate to enhance the operational capacity of each including existing custody facilities to provide additional cells with additional interview, triage and virtual court facilities across the four locations. The proposal was in line with the MPA/MPS Estates Strategy and in support of the MPS Custody Improvement Programme and Corporate Real Estate Programme
Graham Speed, the Chair of the Estate Panel, said that the Panel had not seen the report, but he would support its general approach being taken. He also advised that members had seen the Brixton site during an Estate Panel visit on 10 June and he was also familiar with some of the other sites. He asked members to note that there was no commitment beyond the initial spend of up to £3.6m in respect of design and costing works.

Resolved –That

1. Approval be given to the proposal to undertake detailed design and costing works to ascertain the extent of refurbishment/refresh works that could be undertaken at Brixton, Colindale, Kingston and Walworth Police Stations building on existing facilities rather than demolition and rebuild, in line with the MPA/MPS Estates Strategy and in support of the TP Development Custody Improvement and Corporate Real Estate programmes;
2. Approval be given to a capital budget allocation of £3.6m for these works noting that potential spend of up to a further £42.1m for the subsequent works will be funded from the Custody and Corporate Real Estate budget lines as detailed within the 2011/18 Capital Programme and note that revenue implications will be managed within existing budgetary lines;
3. It be noted that the design and costing works will be carried out through a pre-construction contract for each building to be procured through the Improvement and Efficiency South East (IESE) framework as approved by the Finance Committee in November 2007; and subject to the outcome of this, final approval for the tender and letting of construction contracts at the four sites identified will be sought , and
4. It be noted that subject to detailed design, works to the four sites will enable decisions to be taken in regard to the longer term use of other facilities/buildings within the MPS under the Corporate Real Estate Programme which seeks to maximise the use of buildings core to the estate and reduce overall holdings by 25%.

203. Haringey custody and office facility

(Agenda item 10)

A report was submitted which requested authorisation to proceed with the development of a 40 cell custody and office facility on the site of the former police station at Wood Green, Haringey to support operational policing. The provision of the new custody facilities at Wood Green supports both the current need for improved facilities for Haringey and surrounding boroughs and the proposed TP Development Custody Improvement Project operating mode
Chief Superintendent Sandra Looby, the Borough Commander attended for consideration of this item. The Chief Superintendent spoke in favour of the proposal which would address a number of difficulties which were being experienced with the current estate in the borough.

The Director of Property Services advised that she had discussed the report with Joanne McCartney, the MPA link member for Haringey and that she would ensure that the member continued to be kept informed.

Graham Speed, the Chair of the Estate Panel, advised that the Panel had considered the report and supported the recommendations. Estate Panel members had recently visited the premises and had received a briefing from the Borough Commander.

Resolved –That

1. Subject to planning consent, approval be given to the development of a 40 cell custody and office facility on the former police station site at Wood Green, Haringey in line with the approved strategy and corporate real estate principles;
2. approval be given to the capital project budget allocation of £20.993m from the approved overall capital programme budget, and note that provision for the revenue implications associated with this proposal are included in the 2011/14 Business Plan;
3. the construction contracts associated with this project be procured through the Improvement and Efficiency South East (IESE), formerly South East Centre of Excellence (SECE) framework as approved by the Finance Committee in November 2007; and
4. authority be delegated to the MPS through the approved scheme of delegation to approve the letting of contracts associated with the development of the 40 cell custody and office facility which have an approved project budget allocation of up to £20.993m.

204. Proposals for redeveloping deployment facilities at Alperton

(Agenda item 11)

This report sought authority to redevelop the existing traffic garage facilities at Alperton, Brent to provide deployment facilities for operational policing in support of CO and TP requirements and authority in principle to release Finchley Traffic Garage and West Drayton police station which, on completion of the Alperton redevelopment, will then be surplus to operational needs.

Graham Speed, the Chair of the Estate Panel, advised that the Panel had considered the report and supported the recommendations. He had also discussed the proposal with Chief Superintendent David Snelling from the Traffic OCU. It was agreed that the Chief Superintendent should be asked to confirm his support for the proposals regarding Alperton and Finchley traffic garage.

Resolved –That

1. Approval be given to the redevelopment of Alperton Traffic Garage for future deployment / patrolling and it be noted that the use of the building will enable the release of other assets subsequently surplus to the estate;
2. Approval be given to the expenditure of up to £10.8m as detailed at Exempt Appendix 1, for contract works and professional fees in connection with the development works, including decant, enabling works and temporary facilities as required;
3. It be noted that the construction contract will be procured through the Improvement and Efficiency South East (IESE) 2nd generation framework model, as approved by MPA Finance Committee in September 2010;
4. professional advisers and contractors be appointed through approved and compliant procurement routes (OGC and IESE/2) and authority delegated to the MPS through the approved scheme of delegation to approve the letting of contracts, within the requested project budget allocation.
5. It be noted that the procurement action will be structured to provide the MPA with future options to enter into contracts for additional warehousing facilities under the CRE programme should the tender process demonstrate there is benefit to do so, and subject to further MPA funding approval, and
6. It be agreed in principle that on completion of the project Finchley Traffic Garage (931 High Road, Finchley) and West Drayton police station will be surplus to operational use and can be released generating receipts of up to £12.25m in value, subject to further reports being presented to the MPA.

205. Proposals for Tintagel House SE1

(Agenda item 12)

This report sought support to vacate Tintagel House and return the property to the landlord in readiness for the lease expiry date of 24 December 2011.

The Director of Property Services confirmed that the exit payment was not a payment for dilapidations.

Graham Speed, the Chair of the Estate Panel, advised that the Panel had considered the report and supported the recommendations.

Resolved – That

1. It be noted that the terms of the MPA’s leasehold interest in Tintagel House, and the payment to be made at lease expiry to the Landlord in accordance with the terms of the lease, as detailed in Exempt Appendix 1, that will be met from specific revenue reserves be noted;
2. the steps that have been taken to vacate the property – moving those in occupation to other MPS occupied facilities as part of the Corporate Real Estate (CRE) Programme be noted; and
3. approval be given to the surrender of the MPA’s leasehold interest in Tintagel House subject to the terms and conditions of the lease

206. Jubilee House SW15 proposed refurbishment

(Agenda item 13)

A report was submitted which sought approval for a full internal refurbishment of Jubilee House and the disposal of three properties.

Graham Speed, the Chair of the Estate Panel, advised that the Panel had considered the report and supported the recommendations. Estate Panel members had recently visited the premises where it had been very apparent that there was a need to carry out the refurbishment works.

Resolved –That

1. the terms of the MPA’s leasehold interest in Jubilee House and the opportunities proposed in regard to the refurbishment of Jubilee House be noted including)refurbishment to current MPS Office Standards to maximise floor density and utilisation , ii) modernisation of mechanical and electrical plant and systems reducing energy use, revenue costs and CO2 emissions from 1076 tonnes to 571 tonnes per annum, extending the operational use of the property and addressing certain leasehold responsibilities and iii) reducing ongoing revenue liabilities elsewhere in the estate;
2. the project budget of £23.147m for contract works and professional fees in connection with the fit out works for these premises be approved;
3. approval be given to the appointment of professional advisors and contractors through approved and compliant procurement routes (OGC and IESE/2) and authority delegated to the MPS through the approved scheme of delegation to approve the letting of contracts, within the requested project budget allocation; and
4. approval be given in principle to the disposal of three properties with capital receipts estimated at £5.33m, as referred to in exempt Appendix 1, following the occupation of Jubilee House. In accordance with MPA Finance Regulations a further report will be submitted prior to the three properties being marketed.

207. Request for Authority to dispose additional surplus properties

(Agenda item 14)

This report recommended the disposal of a number of additional properties during 2011/12 at a value equal to or in excess of the current estimated market value .

Graham Speed, the Chair of the Estate Panel, advised that the Panel had considered the report and supported the recommendations.

Resolved – That

1. The 2011/12 capital programme receipts budget of £40m to be generated through the disposal of surplus assets be noted;
2. the properties approved in principle for disposal by the Committee in December 2010 and the current position in regard to these, as shown in exempt Appendix 1 to the report be noted;
3. approval be given to the additional four disposals proposed in 2011/12 as detailed in the exempt Appendix 1;and
4. a separate report be submitted for approval by members in connection with those individual property disposals which exceed £1m in value or the property disposal possesses unusual features or arouses public interest in accordance with the MPA Standing Orders.

208. Disposal of residential property Pondfield House W9

(Agenda item 15)

A report was submitted which advised members that in November 2009 the Committee had authorised the disposal of the Authority’s reversionary leasehold interest at Pondfield House by means of a statutory notice served on the leaseholders. The report stated that a disposal had yet to be completed and recommended that a second statutory notice be served based on a different structure that will be attractive to the market, and that the disposal method be via auction in accordance with statutory procedures.

Graham Speed, the Chair of the Estate Panel, advised that the Panel had been advised of the proposal and supported the suggested way forward.

Resolved – That

1. the previous MPA approvals in regard to the disposal of Pondfield House, and the progress made to date be noted, and
2. the MPA’s reversionary interest in the block as a whole together with the two remaining vacant flats be offered for disposal by auction; such disposal to be in accordance with the Landlord and Tenant Act 1987.

209. Disposal of Oak House Enfield

(Agenda item 16)

This report requested approval to the disposal of the freehold interest in flats 1-8 Oak House, 43 Baker Street, Enfield, Middlesex, EN1 3ET following an open market tender.
Graham Speed, the Chair of the Estate Panel, advised that the Panel had been advised of the proposal and supported the suggested way forward.

Resolved –That

1. Approval be given to the disposal of the freehold interest in Flats 1 - 8 Oak House, Enfield 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 16 December 2010, and
3. it be noted that the capital receipts from the disposal will support the 2011/12 capital programme.

210. Facilities Service Management - contract changes

(Agenda item 17)

At its meeting in December 2010 the Finance and Resources Committee considered a report which outlined opportunities identified to realign the two FMS contracts in use in the estate and supported further work in regard to the renegotiation of contract changes. A report was submitted which updated members on the progress made since then and proposed a number of contract changes to bring clarity and more flexibility to the existing contractual provisions to support the maintenance and repairs of the MPA’s estate.

In introducing the report the Director of Property Services reminded members that in accordance with the previous approval given by the Finance and Resources Committee in December 2010 the Resources and Productivity Sub-committee had considered the report at its meeting on 13 June and the report was now with the Finance and Resources Committee for final approval.

Resolved – That

1. Approval be given to the opportunities to;
   1. Agree a more flexible volumetric measurement process to meet the future changes to the estate with real-time cost adjustment;
   2. Secure savings through the removal of the Fixed Chargeable React Fee Contract for South London and realign the two Contracts to enable the MPS to identify and realise further cost savings from the FMS supply chain and obtain more cost certainty and cost visibility from the financial reports
   3. Agree an Annual Management Fee to be paid to the two suppliers and
   4. Put arrangements in place to renegotiate Annual Management Fee at each contract anniversary;
2. the Financial Benefits shown in the attached exempt appendix 1 be noted; and
3. authority be delegated to the MPS to finalise contract Deeds of Variation with each supplier to achieve contract savings in line with the proposals detailed in this report.

211. Routine Contracts Programme

(Agenda item 18)

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, and the details of those contracts let since the last report. The report had been previously been considered at the Resources and Productivity Sub-committee.

Resolved –That

1. the report be noted; and
2. approval be given to the latest version of the Routine Contracts Programme and to the authorisation to place OJEU advertisements where appropriate.

212. Any other urgent business

(Agenda item 19)

There was no urgent business.

213. Exclusion of press and public

(Agenda item 20)

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

214. Exempt appendices to Estates Update

(Agenda item 21)

Information noted.

215. Exempt appendices to proposed refurbishment/ refresh of four sites at Brixton, Kingston, Walworth Road and Colindale

(Agenda item 22)

Information noted.

216. Exempt appendices to Haringey custody and office facility

(Agenda item 23)

Information noted.

217. Exempt appendices to proposals for redeveloping deployment facilities at Alperton

(Agenda item 24)

Information noted.

218. Exempt appendices to proposals for Tintagel House SE1

(Agenda item 25)

Information noted.

219. Exempt appendices to Jubilee House SW15 proposed refurbishment

(Agenda item 26)

Information noted.

220. Exempt appendices to request for authority to dispose additional surplus properties

(Agenda item 27)

Information noted.

221. Exempt appendices to disposal of residential property Pondfield House W9

(Agenda item 28)

Information noted.

222. Exempt appendices to disposal of Oak House Enfield

(Agenda item 29)

Information noted.

223. Exempt appendices to Facilities Service Management –Contract Changes

(Agenda item 30)

Information noted.

224. Exempt appendices to Routine Contracts Programme

(Agenda item 31)

Information noted.

225. Reviewing injury pensions

(Agenda item 32)

A recommendation relating to changes in the method of reviewing injury pensions was agreed.

226. Early departure of MPS staff

(Agenda item 33)

Recommendations relating to the use of the budget pressures reserve were agreed.

227. Recovery of Airwave costs at Westfield, Stratford

(Agenda item 34)

Recommendations relating to entering into a Police Special Services Agreement were adopted.

228. Olympic and Paralympic Sub-committee

(Agenda item 35)

Recommendation relating to carrying forward the work of the Sub-committee was approved.

229. Registering business interests

(Agenda item 36)

Information relating to the current position regarding the procurement of typing/transcription services and the work being undertaken by the MPS on business interests was noted.

230. Forensic Science Service

(Agenda item 37)

Information relating to a new operating model for forensic science delivery was noted.

231. Cost recovery at London’s airports

(Agenda item 38)

Recommendations relating to entering into an agreement for the policing service provided at Heathrow Airport were agreed. Noted that a report relating to London City airport would be submitted to a future meeting.

232. Minutes of the meeting held on 14 April 2011 (part 2)

(Agenda item 39)

Agreed and signed as a correct record.

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