Minutes

Minutes of the meeting of the Finance, Planning and Best Value Committee held on 21 November 2000 at Romney House, Westminster, London SW1.

Present

Members

• Reshard Auladin (Deputy Chair)
• Nicholas Long (Deputy Chair)
• Cindy Butts
• Roger Evans
• Sir John Quinton
• Richard Sumray
• Rachel Whittaker

MPA staff:

• Peter Edwards (Clerk)
• Peter Martin (Treasurer)

MPS staff:

• Ian Blair (Deputy Commissioner)
• Commander Graham Jones
• Keith Luck
• Barbara Riddell (MPS)
• Bob Alexander

Also present 10 members of the press/media and public and other staff members from the MPA and MPS.

Part 1

39. Apologies for absence

(Agenda item 1)

Apologies for absence was received from Graham Tope and John Biggs.

In the absence of the Chair it was agreed that Nicholas Long would chair the meeting.

40. Minutes – 17 October 2000

(Agenda item 2)

The Chair of the meeting stated that the recommendation relating to Agenda Item 10 on page 6 It was noted that the Committee had in fact agreed that the response to the GLA Schedule on Sustainable Development could be submitted to the GLA without further reference to the Committee. It was agreed that the minutes be amended accordingly.

Resolved:
that subject to the foregoing correction the minutes of the meeting held on 17 October 2000 be agreed and signed as a correct record.

41. Civilian Staff Pensions

It was agreed that Sir John Quinton would replace Nicholas Long as the Committee's representative on the appointing panel.

42. Presentation by District Audit

(Agenda item 3)

The Committee received a presentation by Kash Pandya supported by Jon Hayes and Kerry Reid. A report on the areas covered by the presentation entitled "Taking Best Value Forward" was tabled.

It was noted that as it was a pre-statutory review an Audit Opinion would not be submitted.

In reply to questions on the Best Value programme Kash Pandya said that the practice elsewhere was for a mixture of large and smaller reviews. One learning point had been that it was useful if the larger reviews contained milestones.

Resolved:

1. The presentation be received and noted.
2. The MPA response to the report be submitted to the next meeting of the Committee.

43. Police Authority experience of BVPP audits

(Agenda item 4)

Police Authorities are required to publish an annual Best Value Performance Plan. The Association of Police Authorities recently surveyed all police authorities on their experience of the audit process. The findings were included in a report considered by the Committee.

The Committee felt that representations should be made to the APA to point out the unique attributes of policing in London

Resolved:

1. The survey of police authority experience as contained in appendix 1 be noted.
2. Representations be made to the APA concerning the unique characteristics of policing in London.

44. Lessons from Best Value Performance Plans

(Agenda item 5)

The Committee received a report by the Audit Committee which was largely about audits of local authority Best Value Performance Plans.

Resolved:

1. The summary review of BVPPs contained in appendix 1 be noted;
2. The lessons from the various audits conducted locally and nationally be noted.

Arising:
the Treasurer undertook to advise Roger Evans of the cost of carrying out Best Value reviews.

45. Capital and revenue budget monitoring

(Agenda item 6)

The Committee received a report which set out the current position against budget and the forecast outturn. It is anticipated that there will be a small overspend on the revenue budget.

The Treasurer reported that a payment of £9m had been received from the Home Office in connection with street crime initiatives. The Committee noted that the anticipated major New Year's Eve celebrations would not now be taking place. Confirmation was awaited over the payment of £3.5m in connection with the May Day demonstrations.

Rachel Whittaker asked for clarification on the position with regard to civil staff pay: the figure shown in appendix C1 seemed low compared with that shown in appendix A. The Treasurer undertook to write to the member on this point.

The Treasurer was also asked to seek clarification on the continued payment of the DNA grant and to write to Roger Evans advise him of the overall amount of grant received by the MPS in respect of its national and international policing functions.

Resolved:
the position be noted.

46. Opening financial position

(Agenda item 7)

Members received a report which set out the opening financial position of the MPA as at 2 July 2000.

The Committee shared the concerns expressed by the Treasurer in the report about the low level of reserves. In this connection it was noted that the Mayor had indicated that the GLA should have reserves of 3 per cent.

Resolved:

1. The level of resources and their allocation as set out in the report be endorsed.
2. The need for further review of the reserves be noted.
3. A letter be sent from the Chair of the Authority to the Home Office in order to make further representations on the level of reserves.

47. Emerging priorities 2001/02

(Agenda item 8)

The Committee considered a report which updated the Committee on the emerging priorities for the police plan for 2001/02.

The Deputy Commissioner stated that there were two issues where the Oversight Panel had suggested that the wording of the first overarching external priority be amended so that it refers to youth crime.

It had also been suggested that the wording of the second overarching internal priority be changed to "communicating and consulting ...".

Resolved:

1. The further input be noted and accordingly:

• the wording of the first overarching external priority be changed to "Diverting young people from crime";
• the second overarching internal priority be changed to "communicating and consulting …";
• and, (on the casting vote of the Chair of the meeting);
• that there be no change to the wording of the fourth overarching external priority.

2. The feedback is used as the basis for the development of a set of SMART objectives.
3. The Chair of the Authority circulates the decisions made to key stakeholders and all members of the Authority prior to the meeting of the Authority on 14 December.

48. 2001/02 budget arising

(Agenda item 9)

At its meeting on 19 September the Committee considered and approved the intermediate draft budget for 20001/02 for submission to the Mayor. The Committee received a report setting out the latest position on the final draft budget proposals and asking members to identify options for consideration at a budget workshop.

Further to paragraph 2 the Treasurer reported that the informal budget workshop would be held on 4 December at 2.00pm.

The Treasurer made two amendments to paragraph 26 as follows:

Figure in the 4th line to be amended to £2013.5 million.
Percentage in the penultimate line to read 17.8 per cent.

With regard to paragraph 24 it was agreed that representations be made to the Home Office via the APA concerning the levies to be paid to the two national service authorities, NCIS and NCS. The Treasurer undertook to draft a letter to the Home Office to be approved by the Chair of the Finance, Planning and Best Value Committee, the Authority and Richard Barnes, the MPA representative on the APA.

The Committee indicated that amongst the points which should be discussed at the workshop or where further clarification was needed were: how the information in the appendices related to each other; the funding of the additional police officers; the reasons for the large increase in police overtime shown in appendix C; civil staff pay; the continued funding of DNA sampling and the development bids in appendix F.

Resolved:
the latest position on the budget proposals be noted and comments made at the meeting be explored further at the budget workshop on 4 December 2000.

49. Capital funding 2001/02 to 2005/06

(Agenda item 10)

This Committee received a paper which examined the funding position for the MPS Capital Expenditure Programme over the financial years 2001/02 to 2005/06. It outlined the funding resources available and the assumptions made about future levels of capital grant, credit approvals and useable capital receipts. Significant demands on the MPS capital expenditure programme over the next five years were highlighted. The report also sought endorsement of an affordable funding limit for 2001/02, and baseline-funding limits for the period 2002/03 to 2005/06 on which a medium term capital plan could be developed.

Rachel Whittaker referred to the vehicles operated by the New York Police Department where a decision had been made to reduce the number of colours used in order to reduce expenditure. She enquired whether there was scope for making a similar saving in London. In reply, Commander James said that many of the markings used on MPS vehicles were to comply with various Regulations. The scope for making savings would therefore appear to be limited. The matter would be investigated further and he would report back to the Committee.

Resolved:

1. Unused capital funding balances as currently forecast are fully used to support the capital expenditure programme over the period 2001/02 to 2005/06.
2. £75m be allocated to fund the 2001/02 capital expenditure programme – details of which to be reported to the December meeting.
3. The projected funding profile for years 2002/03 to 2005/06 be noted.
4. A detailed 5 year capital expenditure plan which seeks to match the available funding identified be prepared for a future meeting before the commencement of the 2001/02 financial year.
5. The Treasurer develops a capital financing strategy that explores all funding avenues.

50. Liabilities insurance

(Agenda item 11)

The Committee has previously appointed Aon Risk Advisers to carry out a review and make recommendations for the placement of liabilities insurance. It had not been possible to obtain the recommendations from Aon in time for the meeting.

Resolved:
that the Treasurer be given delegated authority to approve the placement of liabilities insurance in accordance with recommendations to be made by Aon Risk Advisers, after consultation with the Member/Officer Insurance Panel.

51. Resources allocation formula – process for review

(Agenda item 12)

At its meeting on 21 October the Committee approved the setting up of a joint review of the principles underlying the Resource Allocation Formula (RAF) and the existing RAF formula. The report before the Committee sought approval for an outline plan to review and enhance the RAF in time to inform the 2002/03 allocation process.

Resolved:

1. The plan be agreed.
2. The Treasurer, the Chair and Nicholas Long be nominated to represent the MPA on the Project Board.

52. Green paper – Review of Local Government Finance

(Agenda item 13)

The Committee considered a report which set out details of the Government's Green Paper on modernising local government finance and sought members input to the consultation on the proposals.

The Treasurer suggested a number of points for a response and it was agreed that these be set out in writing for Members consideration so that their views could be take into account in drawing up the response to be made by the MPA.

Several members indicated that their initial view was there were disadvantages in adopting a rigid formulaic approach.

The Chair of the meeting said it would be useful to canvas views more widely in the Authority especially bearing in mind that there were many members with a local government background.

Resolved:

1. That the report be noted.
2. That the Treasurer writes to all members of the Authority to seek views on the response to be made to the DETR.

53. Transport services update

(Agenda item 14)

The Committee considered a report which set out the current situation in relation to the MPS vehicle fleet specifically in relation to the repair and maintenance contract held by Venson Public Sector Ltd and the restructuring of the MPS Transport Services Department.

The contract with Vensons came into effect in April 1999. The restructuring of the Transport Services Department commenced in June 2000 and is expected to be completed by January 2001 and is anticipated to provide a net saving of £339,811.

A further report will be submitted in three to six months time.

The Clerk said it might be appropriate for the Committee to consider recommendations 2 and 3 in connection with the exempt report on Venson's.

Resolved:

1. That the report be noted.
2. Exclusion of the press and public.

(Agenda item 15)

Resolved:
that under section 100 A(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 8 and 9 of Schedule 12A of the above Act.

Summary of exempt items

Agenda Item 16 Private Finance Initiative - Firearms and Public Order Training
The Committee awarded a contract for the design, build, finance and operation of a Firearms and Public Order Training Facility at Gravesend.

Agenda Item 17 Venson's Management Contract
The Committee noted a report concerning the operation of this contract.

Agenda Item 18 Central Cleaning Contract
Contract awarded a contract for cleaning MPS premises for a three year period.

Agenda Item 19 - Stationery, Desktop Consumables and Copier Paper
It was agreed to seek tenders for the supply of these items.

Agenda Item 20 – Provision of Self Drive Vehicle Hire
The Committee awarded a two year contract.

Agenda Item 21 Wanstead Site
An offer for the disposal of this site was accepted.

Agenda Item 22 Exempt Minutes: 17 October 2000
The Committee received the exempt minutes of the Committee meeting held on 17 October 2000.

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