Minutes

Minutes of the meeting of the Finance Committee held on 10 April 2003 at 10 Dean Farrar Street, London, SW1H 0NY.

Present:

Members:

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

MPA staff:

• Catherine Crawford (Clerk)
• Peter Martin (Treasurer)
• John Crompton (Committee Services)

MPS staff:

• Steve Atherton (Director of Procurement Services)
• Ailsa Beaton (Director of Information)
• Sharon Burd (Director of Finance)
• Tony Crofts (Southeast London Serious Crime Group) (item 14 only)
• Alan Croney (Director of Property Services)
• Mike Jennings (Finance Services)
• Keith Luck (Director of Resources)
• Stuart Middleton (Director of Transport Services)
• Terry Price (Head of Corporate Finance)

Part 1

169. Apologies for absence

(Agenda item 1)

No apologies were submitted.

170. Declarations of interests

(Agenda item 2)

Agenda item 24 - Disposal of Bow Street Police Station. Nicholas Long asked that it be noted that he was the MPA representative on London Police Education Ltd., but that he was not a director.

171. Minutes of the meeting held on 13 February 2003

(Agenda item 3)

Resolved: That the minutes of the meeting held on 13 February 2003 be agreed and signed as a correct record.

Arising thereon -

• Minute 151 Managing police overtime
• Copies of a briefing paper were tabled for information.

172. Chair and Members’ update

(Agenda item 4)

(i) On behalf of the Committee the Chair welcomed Sharon Burd, the new Director of Finance, Terry Price, the new Head of Corporate Finance and other newly appointed MPS officers to their first meeting of the Finance Committee.

(ii) The Chair reminded the Committee that it had been necessary to amend the date of its meeting in September 2003. The proposed new date was 15 September, and he would ask the Committee to confirm the new date.

(iii) Nicholas Long reported that he had visited several parts of the MPA estate in his capacity as lead member for estate matters. Reports had been submitted as necessary to the Director of Property Services.

Resolved - That the September meeting of the Committee be held on Monday, 15 September 2003 at 2.00 p.m.

173. Revenue budget monitoring 2002/03

(Agenda item 5)

A report was submitted which set out the income and expenditure for the MPA /MPS to the end of February 2003 and provided an update to the projected financial outturn for the year. In reply to questions from members on the significance of the fact that the district auditor had qualified the accounts, the Treasurer confirmed that qualification was a significant matter. He also pointed out that legislative changes meant that from next year the accounts would have to be signed off by the Chair of the relevant Committee.

Resolved - That the report be noted.

174. Revenue budget 2003/04

(Agenda item 6)

A report was submitted which set out the measures which had been approved by the Treasurer in consultation with the Chair of the Committee, under the delegated authority agreed at the last meeting of the Committee.

Resolved – That the report be noted.

175. Prudential code for capital finance in local authorities

(Agenda item 7)

A report was submitted which set out the key elements of the draft Prudential Code for Capital Finance in Local Authorities. It identified implications for the MPA and GLA and proposed a process for agreeing a response to the consultation. The Committee noted that the Code was relevant to the recently formed step change programme, which would feed into the budget process.

Resolved – That

1. the proposed change to the capital finance control system and the need to have regard to this in considering the forward capital programme be noted; and
2. responsibility for the response to the consultation be delegated to the Treasurer in conjunction with the Chair of the Finance Committee.

176. Five year capital programme

(Agenda item 8)

A report was submitted which sought approval of the capital programme for 2003/04 to 2007/08. The report also contained information on the capital settlement, the revenue implications of the capital programme and the forecast outturn position for the capital programme for 2002/03. On paragraph 5, the Clerk reported that she had questioned the fairness of the allocation of the Premises Improvement Fund monies: the MPS had received the maximum amount which had been allocated to a any one force (£1M), but the same amount had also been allocated to forces with a considerably smaller estate. It was agreed that this point be pursued with the Home Office.

Resolved -That

1. the details of the capital settlement for 2003/04 be noted;
2. approval be given for the use of capital receipts to meet the shortfall in funding arising from the lower than expected capital settlement;
3. the potential impact of the introduction of the Prudential Code be noted;
4. the five year capital programme 2003/04 to 2007/08 be approved including the information contained in the exempt appendices also considered at the meeting;
5. the forecast expenditure position for the capital programme 2002/03 as at the end of period 11 be noted;
6. the intention to carry forward through reserves sums allocated to projects that continue to be required for scheme completion be noted; and
7. representations be made to the Home Office concerning the way in which the Premises Improvement Fund monies had been distributed.

177. Estate updates

(Agenda item 9)

A report was submitted which updated the Committee on estates matters. The following points were made on specific items -

Trenchard House, Soho

In her capacity as the link member for Westminster Rachel Whittaker stated that the Central Westminster CPCG had asked her to reiterate its deep concern at the disposal of this property and to restate that it was important for there to be such a facility in the centre of London.

Glidewell/Co-location with CPS

The Director of Property Services advised that progress was being made in agreeing the co-location arrangements with CPS.

Central London Estate

The Director of Property Services advised that it was intended to submit a report to the June meeting of the Committee on the central London estate. However, if necessary, the report would be submitted to the Co-ordination and Policing Committee.

Hounslow Heath

It was noted that discussions were being held with the developer over the timing of the development of the site.

Resolved - That the report be noted.

178. Renaming of former Wembley Section House

(Agenda item 10)

A report was submitted which invited the Committee to agree a new name for the former Wembley Section House at 603 Harrow Road, Wembley Middlesex.

Resolved - That the former Wembley Section House be renamed Sudbury House.

179. Realignment of capital programme - land and buildings

(Agenda item 11)

A revised strategy and way forward for the capital programme (land and buildings) was approved by the Committee at its meeting on 13 February. The programme excludes the residential estate, which is to be the subject of a separate review to a future meeting. An amended version of the linked exempt report was tabled to enable as much information as possible to be in the public domain. It was noted that the heading for the second item in appendix 2 should read “projects stopped”.

Some members commented that the Committee did not have sufficient information on the background of the projects to make an informed decision.

or on the implications of making a decision.

Resolved (with Elizabeth Howlett and Eric Ollerenshaw asking that it be recorded that they had reservations about making decisions on the information provided and lack of certainty as to the extent to which link members had been appraised of projects) - That

1. the revised land and buildings capital allocation programme be approved as contained in appendices 1 and 2 in the linked exempt report;
2. the Director of Property Services be authorised to continue to explore self-funding opportunities by levering off the assets in the interim (e.g. PPP and commercial property transactions);
3. the inability to fund works by the deflection of revenue funding (due to backlog maintenance and the sheer scale of need) be noted;
4. the difficulties of working within available funding envelopes be noted; and
5. it be noted that the recently announced proposal to move to ward based policing is not reflected in these proposals and it is assumed this will operate from the existing estate.

180. Vulnerable and intimidated witness interview rooms

(Agenda item 12)

A report was submitted which detailed the programme to provide one interview room per borough for vulnerable and intimidated witnesses.

Resolved – That

1. the Committee approved the provision of one vulnerable and intimidated witness room per borough at a cost of £1.442M.;
2. it be noted that the funding is included in the realignment of capital allocation programme; and
3. the Premises Improvement Fund be used to provide editing and playback facilities for each borough.

181. Front offices refurbishment project

(Agenda item 13)

A report was submitted concerning a revised programme for the refurbishment of front offices to police stations, it having been concluded that the existing programme was not adequate.

Resolved - That

1. the legislative requirement to make provision for compliance with the Disability Discrimination Act (DDA) 1995 by October 2004 be noted;
2. approval be given to the following in respect of front offices to police stations:
   • a revised target of two refurbished front offices in operational buildings per borough,
   • other than those stations where accommodation is substantially below standard to limit compliance with the new ‘corporate’ standard design to those issues directly affected by DDA and security,
   • refurbishment into primary prioritised and secondary sites to be completed by the end of 2006 subject to approval for the additional funding necessary for the secondary sites; and
3. it be noted that the capital funding proposed in the linked exempt report has been included in the separate report on the realignment of capital allocation programme (land and buildings). The revenue implications have been included in the medium term financial plan and this will be reviewed in the light of the latest estimated costs. This is not expected to have a significant impact.

182. South East London Serious Crime Group accommodation changes

(Agenda item 14)

A report was submitted concerning the additional accommodation required by the serious crime group south due to changes in the command structure, anticipated increases in officers and new operational procedures. Detective Chief Superintendent Tony Crofts attended for consideration of this item and stressed the need for the new accommodation. The Director of Property Services reported that he hoped to submit a ‘PFI strategy’ to the next meeting of the Committee.

Resolved - That the report be noted.

183. Property service outsource contracts and commercial strategy

(Agenda item 15)

A report was submitted which outlined details of reviews undertaken on the performance of two Property Services outsource contracts and made recommendations for the delivery of direct labour and facilities management services after the expiry of the initial term of the existing contracts. Recommendations were made in a linked exempt report.

Resolved - That the report be noted.

184. North east boroughs cleaning contract

(Agenda item 16)

A report was submitted which set out details of tenders received for the north east boroughs and introduced an alternative way forward of combining cleaning with other services.

Resolved - the recommendations in the linked exempt report be agreed.

185. Provision of a forensic case management system

(Agenda item 17)

A report was submitted seeking approval to place a notice in the Official Journal of the European Communities inviting expressions of interest in the provision and ongoing support of a forensic case management system as part of the Information Strategy Programme.

Resolved – That the publication of a contract note for procurement relating to the proposed MPS Forensic Case Management System (Project name METAFOR) be approved.

186. Provision of hire vehicles

(Agenda item 18)

The current contract for hire vehicles expires in January 2004. A report was submitted seeking approval to go to OJEC competition for the replacement contract. The enabling contract is seen as providing a method of procuring a flexible transport resource at short notice.

Resolved – That an OJEC notice be placed for a vehicle hire enabling contract with a planned contract award in late 2003.

187. MPS information strategy – requirement for a call-off consultancy contract

(Agenda item 19)

A report was submitted which recommended that a call-off contract be let to source the skills needed to deliver the MPS Information Strategy.

Resolved – That

1. the need of the Directorate of Information to contract external resources to implement the Information Strategy be endorsed; and
2. Procurement Services be authorised to initiate a competitive tendering exercise, under OJEC to award a three year contract for consultancy support.

188. Computer and other office consumables

(Agenda item 20)

A report was submitted setting out the results of a formal competitive tendering exercise for the supply and delivery of computer and other office equipment consumables.

Resolved – That a contract be awarded to QC Supplies Limited for a five year period (with reviews after year 3 and year 4) for the supply and delivery of computer and other office equipment.

189. 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 7,8, 9 and 12 of Schedule 12A to the above Act.

Part 2

Summary of decisions made on exempt items

Minute 190 agenda item 22- Exempt appendices to realignment of capital programme -land and buildings
The information was noted and approved.

Minute 191 agenda item 22a- Exempt appendices to five year capital programme
The information was noted.

Minute 192 agenda item 23 -Front offices refurbishment programme
Recommendations relating to the refurbishment programme were adopted

Minute 193 agenda item 24 - SE London Serious Crime Group accommodation changes
Recommendations relating to accommodation changes for this crime group were agreed.

Minute 194 agenda item 25 -Property Services outsource contracts - commercial strategy
Recommendations relating to a review undertaken on the performance of Property Services outsource contracts for the delivery of direct labour and facilities management services were adopted

Minute 195 agenda item 26 - Routine contracts programme
Approval given to the placing of OJEC advertisements where appropriate in support of the routine contracts programme

Minute 196 agenda item 27 - NE boroughs cleaning contract
Recommendations relating to this contract were agreed

Minute 197 agenda item 28 - Procurement of a forensic case management system
Exempt information was noted.

Minute 198 agenda item 29 - Computer and other office consumables
The recommendation relating to the award of a contract was agreed.

Minute 199 agenda item 30 - Disposal of Bow Street Police Station
The legal advice was noted.

Minute 200 agenda item 31 - exempt minutes of the meeting held on 13 February 2003
The exempt minutes were confirmed and signed as correct.

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