Minutes

Minutes of the meeting of the Finance, Planning and Best Value Committee held on 04 October 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

Also attended: Richard Barnes (Deputy Chair, MPA).

MPA staff:

• Catherine Crawford (Clerk)
• Peter Martin (Treasurer)
• Peter Tickner (Internal Audit)
• Derrick Norton (Best Value officer)
• John Crompton (Committee Services)

MPS staff:

• Ian Blair (Deputy Commissioner)
• Tarique Ghaffur (Assistant Commissioner)
• Keith Luck (Director of Resources)
• Trevor Lawrence (Director of Property Services)
• Phil Flower (Acting Chief Superintendent)
• Mr David Smith

Also present: 30 members of the press/media and public and other staff members from the MPA and MPS.

Part 1

214. Apologies for absence

(Agenda item 1)

None.

215. Minutes - 14 SEPTEMBER 2001

(Agenda item 2)

Richard Summray asked that minute be amended to clarify that the budget scenarios to be presented to the Committee were to include a worst case scenario.

RESOLVED: That subject to the foregoing amendment the minutes of the meeting held on 14 September 2001 be agreed and signed as a correct record.

Arising-

Minute 79 - The Treasurer referred to the fact that at the last meeting the Committee agreed in principle to engaging 4Ps to carry out the PFI review subject to the total cost not exceeding £40,000 and him holding discussions with 4Ps on a number of areas. The Treasurer reported that a meeting with 4Ps was held on 28 September and a letter from them dated 2 October setting out the points discussed has been received and circulated to members of the Committee.

The Committee indicated that in the light of the clarification in the letter of 2 October the review should proceed.

216. Draft minutes of the Estates Sub-Committee 18 September

(Agenda item 3)

Minute 2 - Nicholas Long, the Chair of the Estates Sub-Committee, reported that following advice from the Deputy Treasurer he would suggest the following amendment to the terms of reference to clarify the financial limits within which the Sub-Committee can approve schemes:

1. for capital schemes: the Sub-Committee be empowered to approve additional schemes, not previously included in the approved capital programme, up to a maximum of £1m per individual scheme and £5m in any one financial year, subject to the overall effects being contained within the approved programme total by:
   1. rephasing existing schemes,
   2. generating new capital receipts in the same financial year,
   3. receipt of additional capital grant aid.
2. for revenue schemes: the Sub-Committee be empowered to approve additional unbudgeted expenditure up to a maximum of £250,000 per scheme or a maximum of £2 million in any financial year, subject to the additional costs being offset by:
   1. reduction in existing budgeted expenditure elsewhere,
   2. offsetting receipt of additional unbudgeted revenue income,
   3. receipt of additional revenue grant aid,
   4. revenue savings generated by the new scheme.
3. A short formal reference of any action taken will be passed to the following FPBV Committee for information."

RESOLVED-

That the terms of reference of the Estates Sub-Committee be amended to reflect the change outlined above.

Minute 11 - the Clerk reported that she had signed the lease for Tintagel House earlier that day.

217. Chair and members' update

(Agenda item 4)

1. The Chair said that the Resource Allocation Formula Project Board which he chairs had met. The consultation period for individual boroughs had been extended and there would be a general "open session" on 21 November.

2. Nicholas Long reported that the search for new accommodation for the MPA continued. Some premises had been identified which might be suitable and a report would be submitted to a future meeting of the Authority.

218. Policing priorities 2002/03

(Agenda item 5)

A report was submitted on the policing priorities for 2002/03 as proposed by the MPS Management Board.

In introducing the report Assistant Commissioner Ghaffur stressed that there was much work to be done to work up the priority areas which had been identified into priorities, objective and targets. An MPS Seminar was being held that day and its conclusions would be reported to the budget workshop on 9 October and the Planning Panel on 11 October.

RESOLVED:

1. the priorities for 2002/03 proposed by the MPS Management Board be noted.
2. the progress made towards the development of objectives for 2002/03 be noted and that the MPS will propose objectives for consideration at the budget workshop and the meeting of the Planning Panel on 11 October.

219. Control framework for the procurement and management of major outsourced service contracts

(Agenda item 6)

A report was considered which drew on a number of internal audits of outsourced contracts. An appendix defined the key controls that need to be in place to provide an effective procurement control framework.

In reply to questions on how the Authority would monitor the control framework the Sir John Quinton suggested that there be regular reports to the Audit Panel and any major points of concern would be referred on to the Finance, Planning and Best Value Committee

The Clerk said that before the controls were introduced the document would be checked to make certain that it complied with the MPA's statutory responsibility that the needs of minority communities were taken into account in the procurement process and the requirement that companies should have a personnel policy.

RESOLVED: That

1. that the lessons learnt for the future be endorsed.
2. the points of best practice contained in the appendix be implemented.

220. MPA accounts for the period ended 31 March

(Agenda item 7)

The Authority's first set of accounts for the nine month period to 31 March 2001 were presented for approval.

Sir John Quinton, the Chair of the Audit Panel said that the Panel had considered the draft accounts at its meeting on 19 September. The Panel had suggested some drafting changes, which had now been incorporated into the Accounts, but otherwise had agreed to commend the accounts to the Finance Planning and Best Value Committee.

RESOLVED - That

1. the final accounts be approved as presented subject to audit.
2. the Treasurer be given delegated authority to agree changes with the external auditor, reporting any material changes to the Committee.
3. The Committee recorded its appreciation of the work of the MPS Finance Department which had enabled this Authority's first set of accounts to be published in time.

221. Review of recruitment and retention difficulties in the Internal Audit Directorate

(Agenda item 8)

A paper was submitted concerning the pay arrangements for Internal Audit staff. The paper had been considered by the Audit Panel on 19 September and was referred for consideration by the Committee.

The Treasurer reported that the District Auditor had reviewed internal audit and recommended tat hey should continue to strive towards a full staff compliment to ensure a timely completion of annual audit plans and ensure all systems are reviewed over the five year period.

The Deputy Commissioner reiterated the concern expressed at the last meeting of the Committee at the wider effect of the proposals which meant that the internal audit staff, who had hitherto been part of the MPS establishment, would be placed on the upper quartile of public sector pay. The rest of the civilian staff salary structure was based on the lower quartile and was only just aspiring to the median.

The Treasurer proposed that the ongoing funding of the increased salaries for internal audit should be on the same basis as the MPS Finance Department restructuring which was met form the MPA contingency. The Treasurer said that the exercise carried out by the consultants was to align the salaries more closely with the market rates.

In reply to questions the Treasurer stressed that the work carried out by Internal Audit was distinct from and did not supplement that being carried out by the Efficiency and Effectiveness Review Programme. It was for the Human Resources Committee to approve the pay arrangements.

RESOLVED- That the proposals outlined in the paper be supported including the funding as proposed by the Treasurer and a further report be submitted to the Human Resources Committee on the implementation of the proposals.

222. Capital programme

(Agenda item 9)

A report was submitted which provided details of the draft capital programme for 2002/03 to 2005/06 in keeping with the medium term funding limits for business groups.

Referring to appendix A1 Richard Barnes asked for details of the consultants fees for the Directorate of Property Services. The Director of Resources stated that one of the functions undertaken by consultants in this Directorate was to carry out the preliminary work to get a project running which would otherwise have to be done by in-house staff. He undertook to supply the information requested to Members.

Members asked for an assurance that the programme took account of Glidewell and Changing Habits. Assistant Commissioner Ghaffur undertook to submit a progress report on the implementation of the Glidewell report to the next meeting.

RESOLVED: That

1. it be noted the indicative capital programme for 2002/03 has been prepared using the business group allocations agreed by the Committee at its meeting on 19 July 2001.
2. it be noted that the Transport Fleet Strategy which is currently in draft form may impact upon the programme.
3. it be noted that the funding assumptions underpinning the medium term capital programme remain unchanged and will be kept under review.
4. it be noted that named capital projects to be funded from sources additional to those of the main programme will be undertaken during the medium term planning period.
5. it be noted that consideration is being given to the establishment of a contingency for opportunity purchases by the Directorate of Property Services and that approval for any proposals will be sought in due course.
6. it be noted that the revenue implications of the proposed capital programme 2002/03 to 2005/06 will be incorporated within relevant operating budgets.
7. the methodology for sanctioning information technology projects for inclusion within the medium term capital programme be approved.
8. the indicative medium term capital programme for 2002/03 to 2005/06 be approved.
9. it be noted that final approval of the capital programme will be sought from the Committee in January 2002 following review of detailed proposals by the Estates Sub-committee and the IT Sub-group, and in the light of the local government finance settlement.

223. Efficiency and effectiveness review programme

(Agenda item 10)

A report was submitted which set out the draft terms of reference for the second tranche of the efficiency and effectiveness review programme together with a draft programme for the competitive run.

The Treasurer reported that a detailed scoping for the financial devolution review would be carried out as part of this programme. It might be necessary to use further consultants time on the devolution project.

RESOLVED: That

1. the report be noted.
2. delegated authority be given to the Project Board to let the tranche 1 r reviews
3. Nicholas Long be appointed to the Appointment Panel for the tranche 2 reviews.

224. Draft budget for 2002/03

(Agenda item 11)

This report outlines the context for budget setting and identified changes in assumptions on government grant predictions and the Mayor's indication of the precept.

This report was considered in conjunction with

225. Additional budget demands for 2002/03

(Agenda item 12)

This report set out the work completed to date by the MPS to prioritise budget developments for 2002/03.

Appendix 4 to agenda item 11 was tabled and set out MPA development bids

Revised appendices 1 and 2 to agenda item 12 were tabled.

In introducing this subject the Treasurer stressed that the position reflected in these two papers was that before the terrorist attacks in the USA on 11 September.

The Treasurer made the following amendments to agenda item 11:

• table in paragraph 23 - the figure for identified budget savings to be amended to read 4.2 m. Total in the table amended to read £2082 m.
• table in paragraph 30 figure for adjusted committed budget 2002/03 to read £2082.m.

Cecile Lothian referred to an item in the MPA proposals and sought clarification on whether this covered the cost associated with the best value review of equalities. The Clerk explained that it did.

Rachel Whittaker said that the budget for the MPA itself should be considered at the meeting of the Chairs Urgency Committee to be held on 9 October. The Treasurer said that as explained in his report the full MPA budget would be considered at the Chairs Urgency Committee at its November meeting. In the meantime, an item could be submitted to the October meeting on the growth bids.

With regard to the cost of increasing police numbers referred to in paragraph 4 of agenda item 12 the Committee stressed that the full cost – both direct and indirect must be included in the budget submission.

The Treasurer clarified the status of the budget workshop by explaining that it was to brief Members on the budget process and would not have powers to make decisions to shape the final budget submission. A separate briefing could be arranged for any Member who was not able to attend the workshop.

The view was expressed that it was not appropriate for the final draft budget to be submitted to the meeting of the Authority on 25 October without it having first been considered by the Committee. After discussion it was agreed that an extraordinary meeting of the Committee be held solely to consider the draft budget submission.

RESOLVED - That

1. the context for the 2002/03 budget and the development bids be noted.
2. the costing of the additional 1,000 officers may be subject to amendment.
3. it be noted that a separate exercise is underway to identify the resource demands presented by the recent security situation.
4. an extraordinary meeting of the Committee be held to consider the budget submission.

(note: the meeting was subsequently arranged for 16 October)

226. Status of the C3i project

(Agenda item 13)

A report was submitted which outlined recent developments on this project. The initial business case was issued on 10 September and the project has successfully passed the Office for Government Commerce Gateway 1 Review. Work is proceeding on the final business case and a project director has been appointed.

Members questioned the practicality of arranging a workshop on the business case given the pressure on diaries in the next few weeks. Reshard Auladin, the Chair of the IS/IT Sub-group reported that the sub-group was due to meet on 9 October and suggested that the business case be considered at the meeting.

RESOLVED: That

1. the report be noted.
2. that a workshop be not held and instead the business case be considered by the IS/IT Sub-group on 9 October and all Members be invited to attend this part of the meeting.

227. Accommodation for Lambeth Borough Operational Command Unit

(Agenda item 14)

A report was considered which sets out the requirements for additional accommodation for Lambeth Borough Operational Command Unit (BOCU). It proposed the acquisition of a leasehold office building to supplement the overcrowded borough properties with the extension and amelioration of Brixton Police Station. The report also recommended that the site acquired for a divisional Police Station at Clapham is declared surplus and sold to assist in the funding of this proposal

Commander Brian Paddick, the Borough Commander for Lambeth attended for consideration of this item and reiterated the need for the improvements to the police accommodation in the borough.

The Deputy Commissioner stressed the need for matter improvements to the estate in Lambeth. The Director of Resources outlined several areas of particular shortcomings in the existing accommodation including:

• Health and safety issues
• Occupational health issues
• Non-conformity with disability requirements

Nicholas Long, the link member for Lambeth, spoke in favour of the proposal.

Richard Sumray commented that the Committee had deferred taking a decision at its last meeting due to the lack of hard information in support of the case. The information requested at that time had now been provided, but he could not see why some of it was only being provided on the day of the meeting

Eric Ollerenshaw said that leaving aside the merits of any particular case he did not think it correct for the Committee to make decisions on individual items in advance of the consideration of the overall budget.

RESOLVED: (on a vote, with 6 votes in favour and 2 against) That

1. investment appraisal option (iii) for taking a lease of premises and converting it for the administration and CID functions of the Borough Command Unit be approved.
2. approval be given to the extension and amelioration of Brixton Police Station to form the Borough operational Headquarters and charging centre.
3. the site at 64 Old Town SW be declared surplus to requirements.
4. Appropriate provision be made to include the additional annual running costs of £1,901,000 p.a.

228. Accommodation for Harrow Borough Operational Command Unit

(Agenda item 15)

A report was submitted which considered the short and medium term accommodation requirements for the Harrow Borough Operational Command Unit (OCU) Headquarters and sought approval to the medium term Borough accommodation strategy through leasing a building adjacent to the existing Harrow Police Station together with refurbishment and alteration works. The aim is to rationalise the OCU headquarters accommodation at a single location and, together with the improvement of the front office at Pinner and the provision of offices at Wealdstone and Edgware, improve operational efficiency.

Detective Chief Inspector Julian Worker representing the Borough Commander for Harrow attended for consideration of this item.

Sir John Quinton, the link member for Harrow, said he was strongly in favour of the proposal. Nicholas Long, Chair of the Estates Sub-Committee, said that the Wealdstone Police Station was one of the worst police stations he had visited and felt that unsatisfactory buildings had an impact on staff retention.

RESOLVED: (on a vote, with 6 votes in favour and 2 against) That

1. the business case for the improvement of accommodation at Harrow be noted;
2. the recommendation in support of Option One in the investment appraisal be endorsed subject to appropriate financial provision,
3. the requirement to acquire a lease for a property identified in the exempt report be noted,
4. works to the leased property be undertaken,
5. the existing Wealdstone, Edgware and West Street buildings be sold and , either through local partnership or acquisition, police offices are provided and fitted out at Wealdstone and Edgware and the police office at Pinner is renovated.
6. agreed that costs to be included in current and future year budget bids.
7. additions to the proposed capital programme for 2002/03 of £686,000; 2003/04 of £421,000 and 2004/05 of £41,000 be agreed and to be financed from ensuing capital receipts.

229. MPA estate dilapidations reserve

(Agenda item 16)

A report was submitted which suggested the establishment of an ear-marked reserve from which could be drawn funds to contribute in all or part towards the cost of dilapidations liabilities at the termination of property leases.

RESOLVED: That the establishment of an ear-marked dilapidations reserve be approved in principle but no decision can be made concerning making financial provision for it at this stage.

230. Exclusion of press and public

(Agenda item 17)

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 18 Accommodation for Harrow Borough Operational
Command Unit - Exempt information noted.

Agenda Item 18a Accommodation for Lambeth Borough Operational
Command Unit - Exempt information noted.

Agenda item 19 Vehicle Maintenance Contract
Recommendations relating to this contract were agreed.

Agenda item 20 Vehicle Removal Contract
The report was noted.

Agenda item 21 Exempt minutes of the meeting held on 14 September
The minutes were agreed as a correct record.

The meeting ended at 6.05 p.m.

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