Minutes

Minutes of the meeting of the Finance, Planning and Best Value Committee held on 19 July 2001 at Romney House, Westminster, London SW1.

Present:

• Graham Tope (Chair)
• Reshard Auladin (Deputy Chair)
• Nicholas Long (Deputy Chair)
• John Biggs
• Elizabeth Howlett
• Cecile Lothian
• Eric Ollerenshaw
• Sir John Quinton
• Richard Sumray
• Rachel Whittaker

MPA staff:

• Catherine Crawford (Clerk)
• Peter Martin (Treasurer)
• Derrick Norton (Best Value officer)
• Simon Vile (Head of Secretariat)
• John Crompton (Committee Services)

MPS staff:

• Tarique Ghaffur (Assistant Commissioner)
• Trevor Lawrence (Director of Property Services)
• Barbara Riddell (Director of Corporate Development)
• Peter Peirce (Director of Catering)
• Bob Alexander (Head of Finance)

Also present: 20 members of the press/media and public and other staff members from the MPA and MPS.

Part 1

170. Apologies for absence

(Agenda item 1)

No apologies for absence were received.

171. Minutes - 19 June 2001

(Agenda item 2)

A revised version of the minute on agenda item 8 was tabled and agreed.

Nicholas Long said that minute 2 “matters arising from the minutes of the meeting on 15 May” should be amended by deleting the second sentence and replacing with: “Arising thereon, Nicholas Long, the link member for Lambeth, said the Home Secretary had recently visited Brixton Police station. Representations had been made about the poor working conditions and he would urge that these be followed up by the Authority to the Home Secretary.”

Resolved:
that the minutes of the meeting held on 19 June 2001 as amended be agreed and signed as a correct record.

Arising-
22. Future provision of section house accommodation. Rachel Whittaker said that following the meeting she had received a detailed briefing on this subject. This had included a statement that the arrangements for the sale of the property might include a reserve figure. She asked that it be recorded that this fact had not been mentioned in the reports considered by the Committee or the Estates Sub-group.

172. Chair and members’ update

(Agenda item 3)

Despatch of reports to members

The Chair referred to the very large number of items on the agenda where the report had been marked “to follow”. These reports had been sent out some considerable time after the main agenda despatch, and indeed some Members had made the point that they had only received their copies that morning. This put Members in the odious position of having to quickly assimilate the content of what were often lengthy reports on sensitive issues.

The Chair stressed that the practice of sending out large quantities of late reports was not acceptable and must not be allowed to happen again. If, exceptionally, a report had to be sent out after the main despatch then arrangements must be made for Members to receive it in good time for the meeting.

The Head of Secretariat confirmed that arrangements would be put in place for late items to be couriered to Members.

Date of next meeting

The Chair reminded the Committee that the next meeting was due to be held on 4 October 2001. As there were a number of issues which required urgent attention he had asked the officers to investigate whether a date could be identified for a meeting to be held before then. Friday 14 September at 10.00 a.m. had been suggested to him.

It was agreed to hold the next meeting on Friday 14 September at 10.00 a.m. It was also noted that a report was due to be considered by the full Authority at its meeting on 26 July which proposed changes to the dates of the Committee later in the year to take account of the budget timetable.

173. Estates Sub-Committee

(Agenda item 4)

At its meeting on 19 June 2001 the Committee agreed in principle to change the terms of reference of the Estate Sub-group so that it became a formally established Sub- Committee with powers to make decisions on estate matters working to a strategy set by the Finance, Planning and Best Value Committee. A report was considered which set out the details of the proposed new arrangements.

In reply to questions requesting clarification on item 4 of the proposed terms of reference the Head of Finance said that the Sub-Committee would have powers to give approval for contract action and design and planning matters for schemes which fell within the approved budget.

Resolved: 

1. That an Estates Sub-Committee be established with the terms of reference as follows:
To discharge the responsibilities of the Finance, Planning and Best Value Committee on estate matters generally, including:

Strategy and estate management

1. To consider and recommend to the Finance, Planning & Best Value Committee the annual Estates Strategy and other strategic estate plans and policies having regard to the Authority’s corporate strategy and resource requirements.
2. To make recommendations to the Finance Planning and Best Value Committee on the estates capital programme, the projects to be included and their respective priority.
3. To monitor estates capital expenditure against the approved programme and to propose to the Finance Planning and Best Value Committee any modifications where approved budgets will be exceeded.
4. To oversee generally the management and development of the MPA estate, including all approvals for contract action and design and planning matters for schemes which fall within approved programmes.

Disposals and acquisitions

5. To oversee and monitor the annual programme of disposals
6. Within the approved budget to agree individual sales, acquisitions or property related works already identified in the programme where these are outside the powers delegated to the officers
7. To agree the acquisition or disposal of properties not identified in the original estates capital programme provided the capital programme remains within the approved budget and any revenue implications can be met from within the Authority’s approved budget

2. The membership of the Sub-Committee be Nicholas Long (Chair), Jennette Arnold (Deputy Chair), Elizabeth Howlett, Cecile Lothian, Rachel Whittaker and Richard Barnes (subject to confirmation, otherwise to continue as an ex-officio member.)

174. Audit of policing and performance plan 2001/02

(Agenda item 5)

The findings of the statutory audit of the Authority’s policing and performance plan for 2001/02 were submitted together with a suggested draft response.

The Chair explained that although it stated in the paper that the District Auditor would be in attendance, in view of the size of the agenda it had been arranged that any points which Members wished to raise with the District Auditor should be dealt with by means of letter.

Resolved:

1. that the statutory audit of the policing and performance plan 2001/02 be noted.
2. that the response attached as appendix 2 be made to the District Auditor.

175. Policing and performance plan 2002- 03

(Agenda item 6)

A report was considered which sets out a process for identifying and agreeing provisional MPA priorities for 2002/03 in a timescale compatible with that required by the Mayor for submission of the proposed budget.

The best value manager apologised for the fact that the report had been circulated after the main agenda despatch which was due to the need to reflect the outcome of a meeting with the Mayor on 11 July.

Resolved:

1. that the thirty-one issues listed as ‘objectives’ in the current policing and performance plan are used as the starting point for selecting MPA priorities for 2002/03 listed at Appendix 2.
2. that an ‘assessment form’ and ‘decision log’ is used by the MPS and MPA to select priorities for 2002/03 and to record decision-making.
3. that all Members be asked to provide an initial view on priorities for 2002/03 by way of a questionnaire (circulated to ensure results are available by mid-August together with similar feedback from community and police consultative groups).
4. that the planning sub-group meets in late August to consider the provisional priorities proposed by the MPS prior to formal consideration by the Finance, Planning and Best Value Committee on 4 October and the full Authority on 25 October.

5. Members confirm priorities for 2002/03 following a review which includes an impact assessment of Ministerial priorities (expected to be published in November).

176. 2000/01 Outturn review

(Agenda item 7)

A report was submitted which set out the emerging finding for the outturn review being undertaken by the MPS Finance Department, the Internal Inspectorate and the external audit partner, KPMG.

The Chair reported that he was due to meet the Commissioner on 23 July and would raise with him any particular points of concern of Members. Rachel Whittaker felt that one point which could be raised with the Commissioner was the need to ensure that borough commanders were fully aware of the importance of financial controls as she understood that this was not part of their current training programme. The point also needed to be made that there must be procedures in place to more quickly identify areas of potential over spending.

Resolved:
that the report be noted.

177. Revenue budget monitoring for first quarter 2001/02

(Agenda item 8)

The first revenue budget monitoring report for 2001/02 was submitted. It showed an underspend of £8m. in the first quarter and provided an update on efficiency savings and budget priorities.

In introducing the report the Treasurer referred to the fact that more information about budget variances was provided than had been the case hitherto and said this would be developed further. He also pointed out that in the absence of forecasts the comparison with profiled budgets should be treated with caution.

Members indicated that they generally welcomed the new presentation of the financial information as contained in the appendices to the report.

The Head of Finance reported that since the report was written a further budgetary pressure had been identified: it appeared that the pay settlement for police officers would be for 3.5% and as the budget had assumed an increase of 3% this meant that if the settlement is made at that level it would represent a budget shortfall of £2.3m in the present year and £4.5 million in a full year.

Assistant Commissioner Ghaffur said it should be noted that the assumption was being made that this year there would be no shortfall in the number of police officers in post which meant that this area could not be used to fund shortfalls appearing elsewhere.

Some Members questioned whether it was appropriate to classify the savings identified in paragraph 4 as efficiency savings and also wondered whether appropriate provision had been made for the financial consequences of implementing the Glidewell report.

Summing up the Chair said that it was important for the Committee to have the total picture of all the unbudgeted financial pressures. He asked for a report be submitted to the 14 September meeting setting out all the known demands which were not budgeted for together with proposals from the MPS Management Board as to how these items could be funded. In the light of this further information to be provided it would not be appropriate to make a decision on recommendations 1 and 2.

Resolved:

1. that recommendations 1 and 2 be deferred pending a full review of the overall financial position in 2001/02 at the next meeting;
2. that the financial position for the first quarter of 20001/02 be noted;
3. that the format of appendices 1, 2 and 3 be followed in future reports;
4. that the update on the budget priorities be noted, and
5. that the emerging budget priorities be noted.

178. Capital monitoring for first quarter 2001/02 and future programme 2002-06

(Agenda item 9)

A report was submitted which provided forecasts of capital expenditure and receipts to the end of the first quarter of 2001/2, an update of the MPS medium term capital expenditure requirements and funding assumptions over the period 2001/2 to 2005/6. It also proposed baselines for capital budgeting by MPS business group over the medium term (2002/3-2005/6) and a methodology by which expenditure requirements of the MPS will be matched against the MPA agreed funding limits.

Resolved:

1. that details of the capital expenditure as set out in the report be noted.
2. that The medium term capital funding limits for business groups as set out at appendix 4.
3. that the proposed methodology for matching expenditure to available funding at business group level be approved as set out in the report be noted.
4. that an indicative five year capital programme contained within the funding parameters be submitted to the October meeting of the Committee

179. Efficiency and effectiveness review programme

(Agenda item 10)

A report was submitted which described the progress made on letting tranche 1 of the efficiency and effectiveness review programme and outlined the future timetable.

Resolved:
that the progress and the proposed timetable be noted.

180. Liabilities insurance

(Agenda item 11)

Hitherto the Metropolitan Police has not generally insured against risks. In 2000 the MPA appointed advisers to consider whether this approach should continue. Proposals for implementing liabilities insurance were submitted.

Resolved:

1. that insurance arrangements in respect of the employers liability, public liability, third party motor and other policies be approved in accordance with the detail in this report and at the premium stated in the exempt items.
2. that authority be delegated to the Treasurer in consultation with the Chair of the Committee and the informal insurance group of members to agree the renewal of the property insurance.

181. IT infrastructure business case

(Agenda item 12)

A report was submitted which set out the need for an adequate technology infrastructure to support the work of police officers and support staff. The costs fall into two distinct area: “unavoidable” and “enhancements” and examples of both were given.

In reply to a point from Richard Sumray the Director of Information undertook to let the Member have details of the split between capital and revenue costs beyond 2001/02.

Resolved:
that the information technology infrastructure programme proceed.

182. Business case for livescan project

(Agenda item 13)

A report was submitted which sought approval of the procurement of LiveScan services and to lease equipment from the suppliers of the National Automated Fingerprint Identification System (NAFIS).

In reply to a point from a Member concerning the lack of financial information on the productivity savings, AC Ghaffur acknowledged that more information should have been shown in the report and said that the budget would be amended to reflect the savings.

Resolved:
that the Authority supports the intention of the MPS to procure LiveScan services to support front line policing and improve the overall quality of the NAFIS database.

183. Land and building capital programme - quarterly update

(Agenda item 14)

The Committee received the first in a regular submission of quarterly reports on the expenditure progress and changes in the capital programme for all projects costing in excess of £500,000.

Referring to items 17 and 18 in Appendix 1 Nicholas Long reminded the Committee that at its May 2001 meeting it had considered a report on accommodation in Lambeth and had agreed that negotiations for the possible acquisition of Otis House should continue. At the June meeting the Committee had been advised by the Director of Resources that for financial reasons it had not been possible to proceed with the proposal. The Member said he understood that the property was still on the market and suggested that a business case be prepared for consideration.

The Director of Property Services stated that the timetable was such that the business case would probably need to be circulated to Members outside the committee cycle. He undertook as a matter of urgency to make it known to the agents that the Authority had renewed its interest in the property

Resolved:
that the position be noted.

184. Energy procurement strategy

(Agenda item 15)

The existing contracts for gas and electricity are due for renewal on 1 October 2001. A report was submitted setting out options for these contracts which reflected the MPS environmental strategy to consider renewable energy sources for electricity whilst balancing cost and environmental considerations.

Resolved:

1. noted that expressions of interest to tender have been sought through a notice published in the Official Journal of the European Community (OJEC) seeking separate electricity and gas supplies for the MPA Estate;
2. the main electricity supply contract for all non-domestic supplies to the MPA Estate provide for the provision of electricity from either traditional or renewable sources and that the award be made on the basis of the best financial offer;
3. the tender for electricity supply to Cobalt Square and Orpington Police Station be separated from the main tender on the basis of a renewable energy source in support of the Environmental Management System (EMS) pilot scheme. The likely additional costs (up to £34,000 per annum) to be financed from efficiency savings;
4. if the successful tender for the main electricity contract is awarded on the basis of a traditional supply source, Cobalt Square and Orpington Police Station be omitted from the main contract, and be supplied separately under a renewable electricity contract;
5. tenders for the gas supply contract be sought on the basis of the best financial offer;
6. tenders for both electricity and gas to be for a 2-year contract with a “match or release” clause for a third year;
7. authority to award the contracts be awarded to the Treasurer or Clerk following a recommendation by the Director of Procurement and Commercial Services based on the lowest tenders received. This would enable a contract to be signed within the few days available to evaluate and accept suppliers' offers, and
8. any savings resulting from lower utility costs be used to reduce budgets.

185. Plumstead Police Station - extension of custody suite

(Agenda item 16)

The amalgamation of Plumstead and Greenwich Divisions under the change to borough policing requires Plumstead to become the primary custody and charging centre for the borough including the transfer of custody facilities from Greenwich. A report was submitted which sought approval to develop a scheme to tender stage for the reorganising the existing custody suite and the construction of a new extension to provide the facilities identified as necessary by the Borough Operational Command Unit.

Resolved:
that a scheme be developed to tender stage for the centralising of custody and charging into a single location at Plumstead Police Station.

186. Larkhall Lane accommodation for the scientific support unit

(Agenda item 17)

This report was withdrawn.

187. Accommodation at Finchley Police Station

(Agenda item 18)

A report was submitted which presented the business case and investment appraisal for refurbishment and alterations to Finchley Police Station which is currently empty.

In reply to a question the Director of Property Services advised that all the costs were contained in the budget. The Committee asked that the budgetary considerations be made more explicit in future reports

Resolved:
that a scheme be developed to tender stage for the refurbishment and alteration works to Finchley Police Station.

188. Lease of supplementary accommodation for recruit training at Hendon

(Agenda item 19)

More residential accommodation is required to house the increased number of recruits. A report was submitted containing details of lease to be entered into with the Ministry of Defence.

Several Members questioned the use of such a large amount of the contingency provision on this item and asked whether all alternative sources of funding had been exhausted.

AC Ghaffur advised that it would not be possible to fund this proposal from the sum identified in the budget for the extra recruits. The Head of Finance said that it would be appropriate to fund what were essentially refurbishment works (£600,000) from the capital programme.

In reply to questions the Director of Property Services confirmed that all of the accommodation at Hendon was fully used by the MPS. Training officers were not eligible for free transport.

Resolved:

1. that a lease be entered into with Ministry of Defence agents, Annington Property Limited, for the hire of residential properties at Mill Hill to provide additional residential accommodation for recruits at Hendon.
2. that the fitting out and furnishing costs (£600,000) be met from the capital budget and consideration be given at the next meeting as to how the remaining costs are to be funded.

189. Tintagel House lease renewal

(Agenda item 20)

A report was considered which sought approval to enter into a new 23 year lease of Tintagel House, Albert Embankment form 25 December 2001. The Metropolitan Police have occupied Tintagel House since its construction in 1960.

The costs of the necessary refurbishment would be met from a capital contribution from the landlord and the saving of rent during this rent free period, with the balance to be provided for in the future capital programme.

In reply to questions the Director of Property Services stated that there would need to be some surplus accommodation within the building in order to facilitate the refurbishment works. It was not the intention for MPS to use the property for the full 23 year period of the lease and the lease was fully assignable. He said that the funding of dilapidation liabilities was often an issue for the estate generally and that one solution would be the establishment of a sinking fund.

Resolved:

• that the Authority enters into a new lease of 23 years duration for Tintagel House from 25 December 2001.
• that the Director of Property Services be authorised to agree a lease on terms which facilitate a programme of refurbishment of the accommodation to meet the requirements of the headquarters estate

190. Construction of new call centre buildings for the C3i Service

(Agenda item 21)

A report was considered which set out the requirements for the construction of buildings to accommodate call centres at Peel Centre, Hendon; Bow Road and Lambeth Support Headquarters for the C3i project. The buildings are required to accommodate the MPS replacement call handling, communications and information service.

Resolved:
that tender action be approved for the construction of new buildings at Peel Centre, Hendon and Bow Road and the refurbishment of Block A at Lambeth Support Headquarters.

191. Provision of systems integration services for the implementation of the C3i Service

(Agenda item 22)

A report was submitted which outlined the requirements for the provision of a Systems Integrator for the implementation of replacement call-handling, communications and information services within the C3I project. The services of a system integrator are required to co-ordinate the activities relating to buildings, technology and change management until full transition to the new services has been completed.

Resolved:
that tender action be approved for a contract to provide systems integration services to the C3i project.

192. Provision of equipment for the airwave radio system

(Agenda item 23)

A contract needs to be set in place for the provision of equipment for the provision of equipment for airwave radio system that will be replacing the METRADIO system during 2003.

Resolved:
that tender action be approved for the provision of equipment for the airwave radio system.

193. Renewal of contract for TSG Carriers

(Agenda item 24)

A report was submitted which requested approval to negotiate a two year extension of an existing leasing/service contract with Charterway for the fleet for the Territorial Support Group.

Resolved:
that the existing contract be extended for a period of up to 24 months.

194. North East Boroughs cleaning contract

(Agenda item 25)

This report was withdrawn.

195. Exclusion of press and public

(Agenda item 26)

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 decisions made on exempt items

Agenda item 27 Tintagel House lease renewal approval
Exempt information noted.

Agenda Item 28 Construction of new call centre buildings for the C3i Service
Exempt information noted.

Agenda item 29 Provision of systems integration services for the implementation of the C3i Service
Exempt information noted.

Agenda item 30 Provision of equipment for the airwave radio system
Exempt information noted.

Agenda item 31 Renewal of contract for TSG carriers
Exempt information noted.

Agenda item 32 North East Boroughs cleaning contract
This report was withdrawn.

Agenda item 33 Catering provision on north east area
Agreed that as from 27 December 2001 the catering provision in 12 units be brought back in-house.

Agenda item 34 Claim by Venson plc for revision to charging schedule
Proposals to settle some outstanding matters relating to this contract were agreed.

Agenda item 35 Vehicle removal contract
Position with regard to this contract noted.

Agenda item 36 Liabilities insurance
A supplementary paper (agenda item 36a) was tabled.
The Committee agreed to purchase public liability insurance to a total value of £100m including £40 self funding.

Agenda item 37 Exempt minutes of the meeting held on 19 June
These were agreed as a correct record.

The meeting ended at 5.20 p.m.

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