Minutes - draft

These minutes are draft and are to be agreed.

Minutes of the meeting of the Finance and Resources Committee held on 21 July 2011 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Dee Doocey (Chair)
• John Biggs
• Faith Boardman
• Steve O'Connell
• Amanda Sater
• Valerie Shawcross
• Graham Speed

MPA officers

• Bob Atkins (Treasurer)
• Catherine Crawford (Chief Executive)
• John Crompton (Treasury Team)

MPS officers

• Nina Cope (Director Territorial Policing Development)
• Nigel Lee (Portfolio Manager Command and Control Programme)
• Anne McMeel (Director of Resources)
• Nick Rogers (Director of Finance Services)
• Phil Smith (Deputy Director of Property Services)
• Lee Tribe (Director of Procurement Services)
• David Wish (Deputy Director of Information)

1. Apologies for absence

(Agenda item 1)

An apology for absence was submitted on behalf of Reshard Auladin.

2. Declarations of interests

(Agenda item 2)

No declarations were made.

3. Minutes of the meeting held on 23 June 2011 (part 1)

(Agenda item 3)

Minute 204 Proposals for redeveloping deployment facilities at Alperton

Graham Speed stated that the final sentence needed to be amended and he would provide the wording after the meeting.

Subject thereto it was

Resolved – That the minutes of the meeting of the Committee held on 23 June 2011 be agreed and signed as a correct record.

ACTIONS
1. Minute to be amended. MPA

4. Appointments to Sub-committees

(Agenda item 4)

A report was submitted which invited members to confirm appointments to the Resources and Productivity Sub-committee and the Estate Panel.

Resolved – That

1. Faith Boardman and Graham Speed be appointed as Chairman and Vice-Chairman respectively of the Resources and Productivity Sub-committee; and
2. the membership of the Estates Panel be confirmed as set out in the report and Graham Speed be appointed as the Chairman.

5. Revenue budget monitoring 2011/12 – period 2

(Agenda item 5)

This report is the first monitoring report on the MPS/MPS finances for 2011/12 and shows the revenue position at Period 2 (May 2011). The revenue budget is forecast to overspend by £25.2m (0.8% of budget) before any account is taken of the budget resilience provision. The Capital Programme as at the end of Period 2 shows year to date expenditure of £16m. This total represents 8.6% of the annual budget of £186.3m.

The Director of Resources advised that information was now available on the latest estimate of the cost of the Royal Wedding on 29 April and of the visit of President Obama which took place in the following month. The details were as follows:

Royal wedding- £6.35m total cost (incl. £2.74m opportunity costs)
Presidential visit - £2.51m total cost (incl. £1.39m opportunity costs)

In reply to concerns expressed from members at the inclusion of exempt Appendix 3 in this report, the Director of Resources advised that the Appendix had been made exempt as it contained information relating to a matter which was subject to negotiations with employees She explained that the decision to include an exempt appendix to the monitoring report had been taken after careful deliberation. The Chief Executive said she could provide assurance that there were procedures in place to robustly question whether an item should be classified as exempt.

The Director of Resources undertook to provide a note on the increased premises costs in relation to Gravesend which was mentioned in paragraph 19 of the report and to provide information on whether there had also been increased costs at other firearms facilities.

In reply to a question from a member on the effects of the lean programme and in turn of the capital spend on IT projects due to the early departure of staff from the Directorate of Information, the Deputy Director of Information stated that a review had been undertaken and was due to be completed shortly. The results would be passed to colleagues in the Directorate of Resources. The emerging findings would also be discussed at the next meeting of the MPA ISIT Panel.

Resolved – That

1. the year to date and forecast position for revenue and capital budgets be noted;
2. the revised Police Officer target strength for 31 March 2012 of 32,249 to account for the centralisation of training budgets be noted; and
3. approval be given to the budget virement of £1.4m as set out in paragraph B46.

ACTIONS

2. Note to be provided on the increased premises costs in respect of the firearms facility at Gravesend MPS

6. Mayor’s budget guidance 2012/13

(Agenda item 6)

A report was submitted which summarised the Mayor’s budget guidance for the 2012/13 budget planning round.

A member said it had been reported that the population of London was increasing and asked whether an increase in the number of households would have a beneficial effect on the Council tax requirement in future years in view of the greater tax yield. In reply the Director of Resources said she could confirm that the formula which was used to calculate the Council tax requirement did take account of notified changes in the number of properties and the anticipated tax yield.

The Treasurer advised that because the September meeting of the full Authority had been brought forward by two weeks it was proposed that the detailed savings proposals, which had to be submitted to the GLA by 30 September, would be considered by a joint meeting of the Strategic and Operational Policing and Finance and Resources Committees to be held on 22 September. A member panel would be carrying out a detailed scrutiny of the submission as had occurred in previous years.

The Chair said it was important that the Finance and Resources Committee had a leading role at all stages of the budget submission process – i.e. to consider options rather than be presented with a fait acompli and requested that consideration be given as to how that could best be achieved. She would discuss this further with the Treasurer outside the meeting.

Resolved – That

1. the Mayor’s budget guidance for the 2012/13 budget planning round and the implications for the MPA budget be noted; and
2. further consideration be given to ways in which the Finance and Resources Committee is involved in all aspects of the budget submission process.

ACTIONS

3. Further consideration to be given to ways in which the Finance and Resources Committee is involved in all aspects of the budget submission process. MPA

7. First review of the capital programme 2011/12

(Agenda item 7)

This report provided details of the first review of the capital programme 2011/12. The review was required to ensure that budgets are suitably adjusted to reflect (i) the capital outturn for 2010/11 and (ii) known changes to project profiles since approval of the capital programme 2011/12 to 2017/18 as part of the Policing London Business Plan 2011-14. The report also highlighted the revised funding mix and profile.

Members expressed frustration at the repeated underspend on the capital programme year on year. The Director of Resources said she thought the prospect was that the programme was more achievable than had been the case in some previous years and there was a new corporate system in place which would assist.

Resolved – That

1. approval be given to the revised capital programme 2011/12 to £227.2m gross and budget of £186.3m, reflecting the latest view of projects in progress, the proposals for new starts and the management of over programming; and
2. the revised funding proposals be approved.

8. Cost of policing public order events 2010/11

(Agenda item 8)

This report sets out the annual policing costs associated with major public order events between 1 April 2010 and 31 March 2011.
In reply to a question from a member on the costs of the embassy patrols (Operation Fieldgate) the Director of Finance Services undertook to provide a note which provided more information on the costs of the Operation and what policing tasks were not being carried out as a result.

A member said it was important that the momentum was maintained to change the charging regime for policing football matches in order to reduce the subsidy which was being provided.

The Director of Finance Services undertook to provide a briefing note when the revised Home Office guidance (Circular 34/2000) referred to in paragraph 30 is issued. However, he advised that Leeds United Football Club had initiated a legal challenge against West Yorkshire police over the basis on which it had been charging for policing football matches and the Club was seeking a reduction in the proportion of the total cost it was required to pay. He said that It may be the case that the Home Office would not be in a position to publish the Guidance until this challenge had been Resolved. He also undertook to feedback concerns expressed to ACPO and to ascertain what action was proposed to be taken in the event of the challenge by Leeds United FC being successful.

Resolved – That

1. the report be noted; and
2. the information on current developments within the Home Office in respect of charging for the police deployments be noted and members be provided with a briefing note when the revised Guidance is issued.

ACTIONS

4. Note to be provided on the costs of Operation Fieldgate MPS

5. Concerns which members had expressed on charging for football matches to be fed back to ACPO and ACPO to be asked to say what action was proposed in the event of the challenge by Leeds United FC being successful. MPS

6. Briefing to be issued when the new guidance on charging for policing football matches is published by the Home Office. MPS

9. Project voyage

(Agenda item 9)

A report was submitted which advised that the Black Police Association Charitable Trust (BPACT) has received agreement in principle for £1.6m of grant funding from the GLA, over the period 2011/12 to 2013/14, for the expansion of Project Voyage. The report set out the MPA’s proposed financial contribution to the Project and the recommended governance arrangements for the funding provided.
Several members commented that they would question whether the proposed way forward was one which should be maintained in the longer term and suggested that alternative funding arrangements be considered. On a more general point they felt there needed to be a clearer process in place for considering such applications and for the apportionment of funding between the MPS and the GLA. It was agreed that the funding be provided for one year only and further year’s funding was dependent on more detail on the project and options for future funding being provided.

Resolved – That

1. it be noted that
   1. no provision was made for Project Voyage in the London Policing Plan and Budget 2011-14;
   2. the GLA has agreed in principle to provide an output based grant of £1.6m over the period 2011/12 to 2013/14 for the expansion of Project Voyage;
   3. for 2011/12 the MPS will provide the Black Police Association Charitable Trust with total grant aid of £353k [in cash (£60k) and in kind (£293k)] for Project Voyage and that any future funding will be dependent on business case approval and the overall financial position of the Service; and
   4. all officers and staff volunteers who participate in the week long “Young Leaders for Safer Cities” project strand will receive two days paid special leave.
2. the governance framework for the grant aid as set out in paragraphs 15 to 20 be noted.

10. Efficiency plan monitoring 2010/11

(Agenda item 10)

This report provided the outturn of the efficiency plan for 2008/9 - 2010/11 indicating there has been an over achievement of £64.6m against the HM Treasury cumulative efficiency target of £344.9m which equates to 18.7%

Members noted that this was the final report on the efficiency plan and congratulated all concerned for having over-achieved the target.

Resolved – That the outturn position against the efficiency plan target set by HM Treasury be noted.

11. Safer Neighbourhood 2 property programme

(Agenda item 11)

A report was submitted which updated members on the progress of the Safer Neighbourhood property programme since the last report in November 2010. The report advised that so far the property programme had provided 237 purpose built locations for 504 teams with two still to be completed. These are in addition to those teams located in existing policing facilities.
The Chair said it was important that MPA members were kept advised of all proposals concerning locations for Safer Neighbourhood teams. Graham Speed advised that the Estate Panel had considered the report and had agreed to consider the general criteria against which proposals for the relocation of safer neighbourhood bases would be considered. The Panel would consider requests which do not satisfy the criteria.

Resolved – That

1. the outcome of the Safer Neighbourhoods Review carried out by the MPS of all aspects of Safer Neighbourhood delivery and the next steps that will be taken be noted; and
2. the progress made in regard to the Safer Neighbourhoods 2 Property Programme be noted.

12. Request for authority to dispose of Sunbury Training Centre

(Agenda item 12)

This report requested approval to dispose of the freehold interest in Sunbury Training Centre, Green Street, Sunbury on Thames following an open market tender.

The Deputy Director of Property Services advised that the intended residential use of the premises would provide 40 to 60 units and that he understood that the local Council normally required 50% to be for social housing.
Graham Speed, the Chair of the Estate Panel, advised that the Panel had considered the proposal and had noted that the recommended bid was at or above the market value and supported the recommendations.

Resolved – That

1. Approval be given to the disposal of the freehold interest in Sunbury Training Centre 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.

13. Request for authority to dispose of 3 and 5 Penrhyn Road Kingston

(Agenda item 13)

This report requested approval to dispose of the freehold interest in 3 and 5 Penrhyn Road Kingston upon Thames following an open market tender;
The Deputy Director of Property Services advised that the recommended purchaser intended to use the premises for approx 50 units of accommodation for the nearby University
Graham Speed, the Chair of the Estate Panel, advised that the Panel had considered the proposal and had noted that the recommended bid was at or above the market value and supported the recommendations.

Resolved – That

1. Approval be given to the disposal of the freehold interest in 3 and 5 Penrhyn Road Kingston upon Thames 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.

14. Request for authority to dispose of former police station Ponders End

(Agenda item 14)

This report requested approval to dispose of the freehold interest in Ponders End former police station, 202-214 High Street Ponders End, Enfield following an open market tender.

The Committee noted that the safer neighbourhood teams currently temporally located at Ponders End were due to be relocated to their new permanent location which was no further away from the wards they currently patrol now. A map showing the location was tabled.
Graham Speed, the Chair of the Estate Panel, advised that the Panel had considered the proposal and supported the recommendations and in doing so had noted that the recommended bid was below the estimated market value which had previously been reported.

Resolved – That

1. approval be given to the disposal of the freehold interest in Sunbury Training Centre 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.

15. Request for authority to dispose of former police station Wallington

(Agenda item 15)

The Deputy Director of Property Services reported that the highest bid for this property had been withdrawn and he therefore wished to withdraw the report and the linked exempt appendix. The property would be re-marketed with the intention to submit a revised report to the September meeting of the Estates Panel and the October meeting of the Finance and Resources Committee.

16. Command and Control futures programme

(Agenda item 16)

This report set out background information to the procurement programme set out in the linked exempt report.

Resolved – That the report be noted.

17. Any other urgent business

(Agenda item 17)

Contracts with media organisations

In reply to a question from a member the Chief Executive advised that the contract which had been the subject of recent interest was essentially a contract compliance issue and therefore fell within the purview of the Corporate Governance Committee.

The Chair stated that members required further assurance with regard to contracts with media organisations. She therefore requested that an exercise be carried out to look at all the contracts involving media organisations and to identify any which might be of concern, and she would discuss this request further with the officers outside the meeting.

ACTIONS

7. Exercise to be carried out to ascertain whether there were any contracts involving media organisations which might be of concern. MPS/MPA

18. Exclusion of press and public

(Agenda item 18)

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

Summary of decisions made on exempt items

19. Command and control futures programme

(Agenda item 19)

Recommendations relating to the commencement of a procurement exercise via the competitive dialogue process were adopted. It was also agreed that John Biggs would provide oversight of the procurement programme on behalf of the Committee.

20. Recycling, breaking and scrapping of vehicles from MPA car pounds

(Agenda item 20)

Recommendations relating to the award of a framework agreement were adopted.

21. Exempt appendix to capital and revenue budget 2011/12.

(Agenda item 21)

Information noted.

22. Exempt appendices to first review of capital programme 2011/12

(Agenda item 22)

Information noted.

23. Exempt appendices to disposal of Sunbury training centre

(Agenda item 23)

Information noted.

24. Exempt appendices to disposal of 3 and 5 Penrhyn Road Kingston

(Agenda item 24)

Information noted.

25. Exempt appendices to disposal of Ponders End former police station

(Agenda item 25)

Information noted.

26. Exempt appendices to disposal of Wallington former police station

(Agenda item 26)

Report withdrawn.

27. Minutes of the meeting held on 23 June 2011 (part 2)

(Agenda item 27)

Agreed and signed as a correct record subject to an amendment to the minutes in respect of items 222 and 231.

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