Minutes

Minutes of the meeting of the Finance, Planning and Best Value Committee held on 06 December 2001 at Romney House, Westminster, London SW1 at 2.00pm.

Present:

• Graham Tope (Chair)
• Reshard Auladin (Deputy Chair)
• Nicholas Long (Deputy Chair)
• 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)
• John Crompton (Committee Services)

MPS staff:

• Ian Blair (Deputy Commissioner)
• Tarique Ghaffur (Assistant Commissioner)
• Commander Alan Given (MPS Fleet Manager)
• Chief Supt Phil Flower
• Keith Luck (Director of Resources)
• Bob Alexander (Director of Finance)
• Ailsa Beaton (Director of Information)
• Paul Andrea (Acting Head of Procurement)

Also present: Anthony Arbour (MPA Member) and 35 members of the press/media and public and other staff members from the MPA and MPS.

Part 1

137. Apologies for absence

(Agenda item 1)

No apologies for absence were submitted.

138. Minutes – 8 November 2001

(Agenda item 2)

Resolved: That the minutes of the meeting held on 8 November 2001 be agreed and signed as a correct record.

139. Draft minutes of the Estates Sub-Committee 19 November

(Agenda item 3)

Resolved: That the minutes be noted.

140. Chair and members' update

(Agenda item 4)

Cecile Lothian commented that at a community safety meeting she had recently attended at the ALG she had found that the information about the budget process which she had learnt earlier at the MPA budget workshop had proved to be very useful.

141. Policing and performance plan 2002/03

(Agenda item 5)

A report was submitted which updated the Committee on the policing priorities for 2002/03.

A Member made the point that following on from decisions made by the Planning Panel the objectives should be re-worded so that they were more proactive and conveyed a sense of change.

In reply to a question from Cecile Lothian, Assistant Commissioner Ghaffur confirmed that Youth Offending Teams would be included in the local consultation.

Resolved: That

1. the 2002/03 priorities and objectives proposed by the MPS Management Board be endorsed; and
2. the progress on the development of performance indicators and targets for the delivery of objectives, and the bespoke target setting process.

142. Summary policing and performance plan 2002/03

(Agenda item 6)

A report was considered which set out the suggested arrangements for the publication of the summary best value performance plan.

Copies of last years publication were tabled for information.

Further to the "Financial Implications" section of the report the Clerk said it had been confirmed that there were sufficient funds in the budget to meet the cost.

The Chair said that until such time as there were changes in the legislative requirement for the dissemination of the plan there would appear to be no alternative but to agree the suggested approach .

Resolved: That

1. the request by the GLA to participate in a joint summary best value performance plan 2002/03 be supported and a sum of a maximum of £130,000 be contributed to the cost.; and
2. the oversight of the joint summary and magazine be undertaken by the Planning Panel.

143. Implications of adopting the National Crime Recording Standard

(Agenda item 7)

The National Crime Recording Standard has been developed through ACPO for the purpose of addressing both regional variation in crime recording and to take a more victim focused approach to recording crime. It will be introduced across all 43 police services in England and Wales by April 2002. This report advised the Committee of the implications of implementation within the Metropolitan Police Service in terms of resource abstraction and associated opportunity costs, within an anticipated range of increase of between 10% and 20% in the level of recorded crime.

The Committee noted that a report on this matter had also been submitted to the Professional Standards and Performance Monitoring Committee and considered that further (non-budgetary) reports should continue to be submitted to that Committee.

Resolved- That

1. the report be noted; and
2. any further reports on the implementation of the Standard to be considered by the Professional Standards and Performance Monitoring Committee with any budgetary issues to be referred to the Finance, Planning and Best Value Committee.

144. Strategic review of risk management

(Agenda item 8)

Earlier this year Willis were appointed to carry out a strategic review of risk management in the MPA/MPS. The final report by Willis has been received and the executive summary was included in the a report considered by the Committee together with proposals to appoint a dedicated risk manager and to set up a member group.

The Treasurer explained that it was intended that the member group would be a time limited group. The risk manger post would be located within the MPS although the MPA would be involved in the recruitment process. The intention was that it would be filled by somebody who did not currently work for the MPS. The figure of £100,000 quoted in the report covered the cost of recruitment, salary and on-costs.

Resolved - That

1. the conclusions and recommendations of the Willis strategic review of risk management be noted;
2. a member group be appointed to review the Willis report in detail and the MPS response;
3. the two Deputy Chairs of FPBV (Reshard Auladin and Nicholas Long) be nominated to the member group together with the Chair of the Audit Panel (Sir John Quinton) and the Professional Standards and Performance Monitoring and Human Resources Committees be invited to nominate up to two members to the group; and
4. a dedicated risk manager be appointed at a cost including overheads of £100,000 to be met by offsetting savings in the compensation budget.

145. Revenue budget monitoring 2001/02

(Agenda item 9)

Details of the revenue budget position as at the end of October were submitted together with a commentary on the main budgetary issues and issues impacting on the year end outturn.

In introducing the report the Treasurer drew attention to the remark in paragraph 16 that the MPA contingency should remain frozen.

In reply to a question from the Chair the Deputy Commissioner confirmed

that it was anticipated that the full quota of 1050 extra officers would have been recruited by the end of the financial year. The Committee also asked the officers to examine the police officer figures shown in table 1 in the report as the figures in the final column did not appear to be correct.

Resolved: That-

1. the financial position to October be noted; and
2. the update on the budget priorities be noted.

146. Revenue budget 2002/03

(Agenda item 10)

A report was submitted which updated the Committee on the draft budget which had been submitted to the Mayor following the last meeting of the Authority on 25 October and requested the Committee to make recommendations on the budget to the meeting of the Authority on 10 December.

Further to recommendation 1 a report setting out details of the grant settlement was tabled as agenda item 10a. Draft recommendations to the meeting of the Authority on 10 December 2001 were also tabled.

The Treasurer advised that since the report had been written late amendments meant that the total amount of savings shown in appendix 4 had been reduced from £60.4 million to £59.5 million. In the light of this amended figure and the grant settlement the funding shortfall had increased from £6.8M to £8.1M.

The Director of Resources referred to the details of the funding allocation and said that the Treasurer was to be congratulated on the accuracy of his forecasts especially given the scale of the sums concerned and the numerous component parts of the equation. The Chair said he wished to echo those sentiments. In returning thanks the Treasurer said that he in turn would wish to thank the members of staff in the Finance Department who had worked on the detailed calculations.

The Committee noted that although £61 million had been allocated nationally for the DNA expansion programme the amount included in the MPS budget was £2.5m. Members commented that this figure was far from proportionate in the national context . The Deputy Commissioner said his understanding was that there were triggers for the release of these monies which depended on monies actually being spent – it was not allocated for example, on a per capita basis. The Director of Resources said that until more was known about this item it would not be appropriate to amend the provision in the base line budget. The Committee requested that a report on the subject be submitted to its next meeting so that it could have a better understanding of how the DNA national budget is allocated to individual police forces and ways in which the MPS might be able to increase its share.

In considering the recommendations to be made to the meeting of the Authority on 10 December members felt that these should include reference to the need to continue with the process of civilianisation.

The Committee considered that the Mayor should be requested to increase the precept to take into account the police vacancy factor and to draw his attention to the alternatives if this is not done. With regard to police numbers the Committee agreed to retain the provision at the amount identified by the Mayor (£22.7m.) and that it be made clear that this would recruit only 661 officers. The Mayor to be advised of the assessed full cost of recruiting 1,000 officers. In this connection the Deputy Commissioner said that there may need to be some flexibility on the number of new officers when funding for counter terrorism work was made known.

The Committee noted that the Commissioner had sent an email to all MPS staff about the budget process and felt that after the MPA meeting on 10 December the Chair of the Authority should be requested to write to every member staff to explain the budget decisions and the reasons for them.

Following a point made by the Deputy Commissioner on paragraph 41 the Committee agreed that the review should be undertaken to ensure to achieve an appropriate balance between MPA and MPS resources.

Resolved: (with Eric Ollerenshaw asking that his abstention be recorded on all items in point 4 apart from the final bullet point) That-

1. the urgent report on the implications of the grant settlement be received.
2. the Committee receive a future report about budget management arrangements for 2002/03 and continues with its budget scrutiny work.
3. a report be submitted to the next meeting on the DNA expansion programme.
4. the full Authority at its meeting on 10 December be recommended:-

• to retain the provision for additional officers at £22.7 million, making clear that this sum will recruit 661 officers, subject to review when the Government announces the details of its decision on the bid for special funding for on-going counter-terrorism costs. The Mayor to be advised that the full cost of recruiting 1,000 officers is assessed at £31.9 million.
• to recommend to the Mayor that the precept be increased to take into account the police vacancy factor (£4 million) in order to avoid the need to manage recruitment at lower levels or find further offsetting savings.
• to approve the savings so far identified (£63.7million) and, provisionally, additional expenditure of £24.2 million as detailed in the report.
• to require the Finance, Planning and Best Value Committee at its meeting on 17 January 2002 to consider and approve proposals to eliminate the resulting funding shortfall of £4.1 million assuming the precept is increased to cover the vacancy factor (£8.1 million if not).
• to note the significant reduction in civil staff posts and the need to review the role of civil staff whilst continuing with the process of civilianisation.
• that the Coordination and Urgency Committee should review the allocation of resources being committed against diversity, equalities and consultation to achieve an appropriate balance of MPA and MPS requirements.
• the Chair of the MPA be requested to write to every member of the Metropolitan Police Service to explain the decisions and the reasons for them.

147. Efficiency and effectiveness review programme

(Agenda item 11)

A report was submitted which provided an update on the tranche 1 efficiency and effectiveness reviews.

Resolved - That the report be noted.

148. Update on South East London Private Finance Initiative

(Agenda item 12)

A report was submitted which contained information which updated the Committee on the South East London PFI contract which was completed on 26 October.

Resolved- That it be noted that the PFI contract has been signed for three new Borough police stations and two sector bases in south east London together with related support services.

149. Starter homes initiative

(Agenda item 13)

A report was submitted which set out details of the implementation of the starter homes initiative. The report had initially been considered by the Estates Sub-Committee at its meeting on 19 November 2001.

It was noted that the first recommendation in the report was addressed to the Human Resources Committee.

The Committee noted that there was no provision in the budget for the cost of the management fees. Members felt that in the context of the overall financial position it would not be reasonable to make provision for this additional item of expenditure. Instead the management fees should be met directly by the individuals concerned, possibly by means of it being added to the mortgage advance.

Resolved:

That recommendation 2 be not adopted and the cost of the management fee to be met directly by the individuals participating in the scheme.

150. Marylebone Police Station investment appraisal

(Agenda item 14)

This report reviews options for the future use of Marylebone Divisional Police Station (DM) and Robert Mark Section House. The report had initially been considered by the Estates Sub-Committee at its meeting on 19 November 2001 where it had been agreed that option 1 (alterations and improvements to Marylebone police station and conversion of Robert Mark section house to an operational police building) be the preferred option

The Director of Resources advised that the scheme had been included in the schedule of proposed capital projects which had been considered by the Committee at its meeting on 4 October 2001. The projected associated revenue expenditure had also been shown. The Committee was due to give approval to the medium term capital programme at its meeting on 17 January 2002 and this would be on the basis of the figures now shown for this project.

The Committee asked that future reports should contain greater clarity on whether a project was in the capital programme and should also include information on the actual projected revenue implications rather than just the net effect.

Resolved: That the project be included in the future programme of capital works and in the medium term financial forecasts on the basis of the figures contained in the report.

151. Land and buildings programme 2001/02

(Agenda item 15)

The Estates Sub-Committee at its meeting on 19 November 2001 received a quarterly update on the land and building programme. The Sub-Committee had suggested to the Committee that two new schemes be included in the programme.

Nicholas Long, the Chair of the Estates Sub-Committee, stated that in the light of the earlier discussion about the overall financial position it would be appropriate to defer the addition of the Barnes Green scheme to the programme.

Resolved: That the recommendation to include Alperton (paragraph 37) in the programme be agreed and a decision on whether to include Barnes Green (paragraph 36) be deferred.

152. Provision of digital photocopiers

(Agenda item 16)

A report was submitted which outlined the requirements for the provision of digital multifunctional photocopiers in the MPS. A report on this matter had been submitted at the last meeting of the Committee where a decision had been deferred so that further information could be provided.

Nicholas Long reported that Jennette Arnold had raised the question of licences for the new machines. The Acting Head of Procurement stated that the licences would be available shortly and there would be minimal extra expenditure.

In connection with this report the Director of Resources advised that the reports on procurement matters which went to future meetings would contain more detailed background information which should be of assistance to members.

Resolved: That the request for tender action for a replacement contract be agreed.

153. Provision of civil litigation services to the MPS

(Agenda item 17)

A report was submitted which set out the need for a replacement contract for the provision of civil litigation services.

The Committee noted that payments were only made in respect of work actually commissioned so the figure shown in the exempt paper was a maximum amount.

The Committee noted that invitations to tender would only be sent to firms which operated within the Metropolitan Police District.

Resolved- That the request for tender action for a replacement contract be agreed.

154. Replacement of Hayes Repository – PFI Project

(Agenda item 18)

A report was submitted which set out the proposed replacement of the Ministry of Defence (MoD) owned Hayes Repository where the MPA stores the bulk of its non-current and semi-current records. The MoD proposes to replace the facility through a PFI project and the report set out the options available to the MPA.

Resolved- That

1. the position be noted; and
2. a firm contract with the MoD to replace the current facility be not entered into until details of the proposal for service delivery and costs are confirmed.

155. Exclusion of press and public

(Agenda item 19)

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

Minute 156 Agenda Item 20 Digital photocopiers
Exempt information in support of the decision in minute 152 noted.

Minute 157 Agenda item 21 Provision of civil litigation services to the MPS
Exempt information in support of the decision in minute 153 noted.

Minute 158 Agenda item 22 Replacement of Hayes Repository - PFI Project
The report was noted.

Minute 159 Agenda item 23 Public Carriage Office: Transfer to Transport for London
The Committee approved the making of a tripartite agreement between the MPA and other parties involved in the transfer.

Minute 160 Agenda item 24 Vehicle removal contract
A report on this contract was noted and it was agreed that further reports only be submitted when there is a necessity to do so.

Minute 161 Agenda item 25 Vehicle maintenance contract
A report on this contract was noted and it was agreed that further reports only be submitted when there is a necessity to do so.

Minute 162 Agenda item 26 Exempt minutes of the meeting held on 8 November
The minutes were agreed as a correct record.

The meeting ended at 5.15 p.m.

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