Minutes

Minutes of the meeting of the Finance, Planning and Best Value Committee held on 21 February 2002 at Romney House, Westminster, London SW1.

Present:

Nicholas Long (Deputy Chair, in the Chair)
Reshard Auladin (Deputy Chair)
Elizabeth Howlett
Cecile Lothian
Eric Ollerenshaw
Sir John Quinton
Rachel Whittaker

MPA staff:

Catherine Crawford (Clerk)
Peter Martin (Treasurer)
Derrick Norton (Best Value Manager)
John Crompton (Committee Services)

MPS staff:

Tarique Ghaffur (Assistant Commissioner)
Tim Godwin (Deputy Assistant Commissioner)
Ailsa Beaton (Director of Information)
Trevor Lawrence (Director of Property Services)
Bob Alexander (Head of Finance)
Paul Andrea (Acting Head of Procurement)
John Zlotnicki (Head of Corporate Planning)

Also present: 35 members of the press/media and public and other staff members from the MPA and MPS.

Part 1

191. Apologies for absence

(Agenda item 1)

Apologies for absence were submitted on behalf of the Chair, Graham Tope and Richard Sumray.

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

192. Minutes - 17 January 2002

(Agenda item 2)

Resolved: That the minutes of the meeting held on 17 January 2002 be agreed and signed as a correct record.

Arising:

Revenue Budget minute 177 2002/03

The Director of Property Services reported that as instructed at the last meeting he had re-submitted the affordable housing scheme to the Housing Corporation to seek approval to it being operated as a self-financing project. The Corporation had now written to say that this was not acceptable and there could be no change to the scheme. An early decision from the MPA was required as to whether it wished to proceed otherwise the Authority's allocation would lapse. The cost per dwelling was £1,600. To accommodate maximum take up over the two years of the scheme it would be prudent for the Authority to make a provision of £400,000p.a. for the administrative charge.

Rachel Whittaker said that she would be reluctant to make a decision on the matter without knowing more about the administrative cost. The figure per dwelling which was now being quoted seemed high especially as only a very small percentage of the workforce would benefit directly from the scheme. The Human Resources Committee was due to receive a report on the scheme at its next meeting and she would ask that this aspect be discussed further in that report.

The Treasurer referred to the report on revenue budget monitoring to be considered later in the meeting (agenda item 10) It was now clear that the total cost of the scheme over the two years would be limited to £800,000 with £400,000 falling in each year. The Committee might consider it appropriate to fund this one off cost from an earmarked reserve established from the underspendings identified in that report.

The Chair of the meeting said it would not be appropriate to decide the matter without the benefit of a written report and requested that a report be submitted to the Co-ordination and Urgency Committee at its next meeting on 12 March.

Variation to PFI at Gravesend minute 179

The Treasurer stated that under the delegated powers conferred on him at the last meeting he had decided that the additional one-off costs should be funded from the 2001/02 underspend discussed at agenda item 10.

193. Chair and Members' update

(Agenda item 3)

Elizabeth Howlett reported that she and Reshard Auladin had visited the NCIS and had visited the immigration offices on both sides of the Channel Tunnel.

Sir John Quinton reported that he and Abdal Ullah had attended a briefing on the policing aspects of the Golden Jubilee celebrations in June. The Treasurer confirmed that he was in correspondence with the Home Office on the costs involved.

Date of June meeting of the committee

The Chair of the meeting reported that a request had been made for the date of the meeting arranged for 6 June be altered as it is half term and also the week of the Golden Jubilee celebrations. The meeting had now been arranged for Wednesday 29 May 2002 at 2.00 p.m and the Committee was asked to confirm the revised arrangement.

Rachel Whittaker asked that if the need to change meeting dates arose in the future that the new date be arranged in consultation with all members of the Committee.

Resolved: That the meeting of the Committee scheduled for 6 June be held on 29 May.

194. Policing and Performance Plan 2002/03

(Agenda item 4)

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

In reply to questions Assistant Commissioner Ghaffur advised that link members should have received details of the local bespoke targets from their local Borough Commander.

These were designed so that the way that the information presented was compatible between boroughs.

Members indicated that from a presentational point of view it was difficult to see the justification for making what appeared to be very small changes in some of the targets and there was a general concern that some of the targets may not be sufficiently challenging. Particular concern was also expressed at the wording of the suggested target in connection with street crime (objective 3)/

Resolved: That

1. the targets in respect of the following objectives be agreed: objective 5, 6, 7, 11, and 12; target in objective 13 agreed subject to the inclusion of a dateline.;
2. the targets in respect of objectives 1,2, 3, 4, 8, 9 and 10 be not agreed and be the subject of further consideration at the Authority meeting on 28 February;.
3. the revised wording of the corporate target in relation to youth offending be noted; and
4. the introduction of National Crime Reporting Standards in April 2002 and the potential impact on crime data published in the annual policing plan for 2002/03 be noted.

195. Establishment of a Transport Operational Command Unit

(Agenda item 5)

A report was submitted which provided an update on the position on the discussions with Transport for London on the setting up of a Transport Operational Command Unit within the MPS

In reply to questions Assistant Commissioner Ghaffur advised that it had yet to be determined what percentage of officers in the proposed new transport OCU would be probationers and how this would compare to the percentage of probationers in the Borough OCUs.

With regard to the proposal to purchase radios Members asked whether it might be more appropriate for them to be hired as given the introduction of C3i they would not have a long life expectancy.

Members drew attention to areas where the documentation appeared to be silent. This included who would be responsible for maintaining CCTV cameras, the linkage to C3i and how any major legal claim would be addressed.

Resolved – That subject to the comments above the report be noted and a further report together with the draft special services agreement be submitted.

196. Financial management strategy - programme

(Agenda item 6)

A programme for delivering the Authority's financial management strategy was presented together with the proposed arrangements for monitoring progress.

The Head of Finance undertook to write to Reshard Auladin concerning the position with regard to the recruitment of professional finance staff.

Resolved- That

1. the financial management strategy be approved as a basis for taking forward improvements in the Authority's financial management and for monitoring progress.
2. the Treasurer reports to the Committee annually on the whole programme with an interim update half yearly.

197. Reserves policy

(Agenda item 7)

A report was submitted which addressed policy issues in relation to the Authority's reserves.

In reply to a discussion on whether a general reserve of 1% was adequate the Treasurer said the first priority must be to meet that goal. Comparisons with the reserves of Police Authorities would not necessarily be valid in view of the large differences in the size of the budgets.

Resolved - That

1. it be confirmed that the minimum acceptable level for a general reserve, to meet unforeseen and unfunded emergency expenditure or financial demands, is 1% of total net expenditure, provided that there are appropriate accounting provisions and earmarked reserves, reasonable insurance arrangements, a well funded budget and effective budgetary control;
2. it be noted that the conditions supporting the minimum level will be addressed as part of the financial management strategy (para 4);
3. the need to develop the provision for accrued third party liabilities commencing with the 2001/02 accounts (para 6) be noted;
4. the need for both an adequate provision for the current potential pensions liability in respect of officers who have completed thirty years service and a reserve for future increased pension liabilities be noted (paras 7-8);
5. actuaries be used to provide information to underpin the pensions reserve policy (para 11);and
6. the proposals for adding to reserves set out in paras 15-16 be supported.

198. Treasury management strategy 2002/03

(Agenda item 8)

A report was submitted which sets out the treasury management strategy recommended for 2002/03. The report also proposed borrowing limits to be adopted by the Authority.

Resolved- That -

1. the treasury management strategy for 2002/03 be approved.
2. the new code of practice recommendations set out in appendix 1 be approved and referred to the meeting of the Authority on 21 March 2002 for formal adoption.
3. The borrowing limits set out in paragraph 24 be approved and referred to the meeting of the Authority on 21 March 2002 for formal adoption.

199. Treasury managment quarterly report to 31 December 2001

(Agenda item 9)

Details of the treasury management performance for the quarter ending 31 December 2001 were submitted.

Referring to paragraph 11 Elizabeth Howlett asked which local authorities were used for benchmarking. The Treasurer undertook to supply the information.

Resolved: That the report and its budgetary implications be noted.

200. Revenue budget monitoring 2001/02

(Agenda item 10)

A summary was provided of the revenue budget position as at the end of December 2001 together with a commentary on the main budgetary issues and an update on the budget priorities.

The Head of Finance reported that the indications were that the figures for January showed no change to the underlying position indicated in the report. He also reported that the MPS Management Board had released some monies from the underspend to support the Safer Streets initiative.

Resolved: That the financial position to December 2001 and the budget priorities be noted.

201. Capital settlement 2002/03

(Agenda item 11)

This report set out the details for the 2002/03 capital programme and its implications for the medium term capital programme 2002/03 to 2005/06.

In introducing the report the Head of Finance asked that recommendation 1 be deferred to the next meeting of the Committee to allow for further consideration within the MPS. In this connection the Treasurer advised that a report on the new accommodation for the MPA at 10 Dean Farrar Street would be considered by the Co-ordination and Urgency Committee at its meeting on 12 March.

Resolved - That

1. recommendation 1 be deferred
2. further utilisation of the additional funding made available through the capital settlement be delayed pending resolution of key issues affecting the medium term capital programme (paragraphs 11 and 12).
3. the following elements of the report be noted:

• the capital settlement details for the MPA for 2002/03 of capital grant of £22.803m and supplementary credit approvals of £21.708m (paragraph 2).
• that an increase of £8.788m on the 2001/02 capital settlement has been received (paragraph 3).
• that a further £20m is to be made available by the Home Office to police authorities across England and Wales to modernise the police estate and communications technology (paragraph 4).
• that adjustments will be made to the medium term capital programme 2002/03 to 2005/06 in respect of revised costs for refurbishment schemes at Acton, Dagenham and Southall Police Stations (paragraph 9).
• that details are still awaited from the Home Office in respect of the bid for funding of the C3i Project (paragraph 11)

202. 2002/03 Revenue budget

(Agenda item 12)

A report was considered which set out details of the approved budget for 2002/03 and suggested arrangements for the management of the budget.

Resolved - That

1. it be noted that the final approved budget for 2002/03 is unchanged from that submitted by the Authority on 10 December 2001;
2. the budgetary control framework in Appendix 1 be noted and the actions to improve budget management set out in Appendix 2 be supported;
3. the virement arrangements put in place for 2001/02 be continued in 2002/03, with the additional requirement that proposed virements in excess of £0.5 million are notified to the Treasurer;
4. the arrangements for securing delivery of the budget provision for £60 million savings be noted;
5. approval be given to the list of expenditure items to be held back from delegation and the monitoring arrangements to assess whether they can be released during the year.

203. 2002/03 Revenue budget - supplementary report

(Agenda item 12A)

A supplementary report was considered which set out details of a suggested response to the motion which had been passed by the GLA Assembly after

approval of the budget.

Resolved-

1. to note the motion passed by the GLA Assembly;
2. It be agreed that the motion does not identify further options for budget holdback;
3. the balance of the savings on the civil staff pensions budget, as reported to the last meeting of the Committee, be retained by the Authority;
4. it be agreed that the proposals for holdback in the main report, together with other proposals to strengthen budgetary control, represent an adequate safeguard against potential overspending without undermining budget delivery; and
5. these conclusions are reported to the full Authority meeting on 28 February 2002.

204. Efficiency and effectiveness review programme

(Agenda item 13)

A report was submitted which updated the Committee on the efficiency and effectiveness reviews.

The Treasurer advised that the workshop on tranche 1 mentioned at paragraph 5 had been arranged for 18 March at 2.00 p.m.

Resolved: That-

1. the progress of the efficiency and effectiveness reviews be noted;
2. the transport implementation matrix be noted.

205. Financial devolution within the Metropolitan Police Service - update

(Agenda item 14)

A report was submitted which updated the Committee on the current position with regard to financial devolution. It also set out proposals for a proof of concept on the devolution of the police pay budget.

The Committee noted that in paragraph 14 the word "supplied" should read "supported"

Resolved: That-

1. the progress made on financial devolution be noted;
2. the need for operational policing measure to allow devolution of the police pay budget and the intentions to secure the support of the Mayor as well as the Authority be noted;
3. the Treasurer in consultation with the Budget Group of members be given delegated authority to any approvals necessary to allow implementation of pathfinder proposals from 1st April 2002; and
4. a further report be submitted to the Committee at its meeting on 18 April 2002.

206. Residential rents and service charge

(Agenda item 15)

A report was submitted on the level of rent increases for resident officers for 2002/03.

A revised version of appendix 4 was tabled.

The Committee noted that in the final line of the text in the summary box on the front page of the report he word "one " should read "three".

Nicholas Long said the Police Federation had written to him as Chair of the Estates Sub-Committee. The Federation had said that given the likelihood of reduced overtime earnings in the future they were not in favour of there being any increase. If there had to be an increase for residential quarters they would suggest that it be option 3.

Resolved: That

1. the rent on residential quarters be increased in line with option 6 i.e. to re-base MPS rent to actual housing association rents and update by only the housing rent element of the RPI
2. the service charge on section house bedspaces be increased in line with option 3 i.e. to increase the charge in line with the option for rents in residential quarters.

207. Alteration works at existing MPA premises in South West London for an operation unit under the C3i project

(Agenda item 16)

A report was submitted which sought approval in principle to enter into a contract for the refurbishment and alteration works to existing premises and to install necessary technology equipment.

Resolved: To accept in principle the recommended tender at a cost not to exceed the amount stated in the linked exempt report for the refurbishment and alteration works at the premises. 

208. Sale of Rochester Row police station - update

(Agenda item 17)

A report was submitted which updated the Committee on the sale of Rochester Row Police Station in the light of the changes in the office development market since the sale was first agreed.

Resolved- That the contract for the sale of Rochester Row police station proceeds on the revised basis noted in the report and in the linked exempt report.

209. Accommodation for SO7 and front office at Finchley police station

(Agenda item 18)

A report was submitted which sought approval to enter into a contract for refurbishment and alteration works to Finchley police station and to install necessary technology equipment.

Resolved- To accept the recommended tender at a cost not to exceed the amount stated in the linked exempt report for the alteration works to Finchley police station including an allowance for technology works.

210. Alteration and improvement works to Dagenham police station

(Agenda item 19)

The report was withdrawn.

211. Hayes repository PFI

(Agenda item 20)

A report was submitted which outlined the current position in regard to the Ministry of Defence's intention to dispose of the Hayes repository and the resultant PFI project.

Resolved- That the report be noted.

212. Exclusion of press and public

(Agenda item 21)

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 213 Agenda Item 22 alteration works at existing MPA premises in south west London for an operational unit under the C3i project
Exempt information in support of the decision in minute 152 noted.

Minute 214 Agenda item 23 Sale of Rochester Row police station - update
Exempt information in support of the decision in minute 153 noted.

Minute 215 Agenda item 24 accommodation for SO7 and front office at Finchley police station
The report was noted.

Minute 216 Agenda item 25 alteration and improvement works to Dagenham police station
Report withdrawn.

Minute 217 Agenda item 26 interim agreement with TfLl for proposed establishment of Transport OCU
Recommendations relating to the agreement were approved for approval by the full Authority at its meeting on 28 February 2002.

Minute 218 Agenda item 27 Outsourced contracts in the MPS
A report on the outsourced contracts was noted and a further report will be submitted to the next meeting. A suggested programme of activities was endorsed.

Minute 219 Agenda item 28 Vehicle removal contract - update
A report on this contract was noted.

Minute 220 Agenda item 29 Hayes PFI
A supplementary report was tabled which set out exempt information in support of agenda item 20. Report noted.

The meeting ended at 5.19p.m.

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