Minutes

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

Present:

Members:

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

MPA staff:

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

MPS staff:

• Keith Luck (Director of Resources)
• Sharon Burd (Director of Finance)
• Alan Croney (Director of Property Services)
• Steve Atherton (Director of Procurement Services)
• Terry Price (Head of Corporate Finance)

Part 1

1. Apologies for absence

(Agenda item 1)

An apology for absence was submitted on behalf of Eric Ollerenshaw.

2. Declarations of interests

(Agenda item 2)

No declarations were made.

3. Minutes of the meeting held on 9 June 2003

(Agenda item 3)

Resolved: That the minutes of the meeting held on 9 June 2003 be agreed and signed as a correct record.

4. Chair and Members’ update

(Agenda item 4)

Rachel Whittaker reported that she had visited the new firearms training facility at Gravesend. Several defects and deficiencies had been brought to her attention by staff, which she had subsequently mentioned to Assistant Commissioner Hogan-Howe. She would also be grateful if the Director of Property Services could let her have his comments as well.

The Director of Property Services said he would provide a response to the member on the points raised but he would remind the Committee that under the PFI arrangements the MPA did not own the building.

5. Lead member roles 2003/04

(Agenda item 5)

A report was considered which asked the Committee to decide which lead member roles they require for the current year.

Reshard Auladin and Nicholas Long indicated that they were content to continue in their respective lead member roles.

Resolved - That Reshard Auladin and Nicholas Long continue as lead member for IS/IT and estate issues respectively.

6. Annual report of the Finance Committee

(Agenda item 6)

A report was submitted which summarised the work of the Finance Committee for the year 2002/03.

Resolved – That the report be agreed for submission to the Authority.

7. Capital budget 2002/03 – provisional outturn

(Agenda item 7)

Details of the outturn position for the capital expenditure programme for 2002/03 were submitted. It showed that the capital payments of £111.436M fell short of the adjusted capital programme by £34.477 M. Approval was sought for the carry forward of funding to 2003/04 in respect of named capital projects where slippages in expenditure profiles have occurred.

Information relating to the outturn position for individual projects was contained in a supplementary exempt report (agenda item 29).

Members expressed concern at the significant level of slippage and considered that there needed to be better monitoring of the capital programme during the year in order that trends could be identified at an early stage and remedial action e.g. substitution considered.

It was agreed that the budget group should monitor the capital programme performance and receive monitoring reports on a quarterly basis. Richard Sumray indicated that he would be prepared to lead on this area at the budget group.

Resolved – That

1. approval be given to increases to the budget of £9.242m as part of the accounts closure programme as set out in paragraph 3 and Table 1;
2. the outturn position for capital expenditure in 2002/03 as set out in paragraph 4 and Appendix 1 be noted;
3. the carry forward to 2003/04 of £32.987m to support capital projects during 2003/04 as set out in paragraphs 11-12 and Appendix 2 be approved; and
4. the budget sub-group monitors the capital programme with Richard Sumray taking a lead on this area and with the first monitoring report for the current financial year be submitted to the September meeting.

8. Revenue budget 2002/03 outturn

(Agenda item 8)

A report was submitted which set out the final revenue outturn for 2002/03 which shows a net underspending for the year at £25.618 million. The outturn allows for strengthening of the balance sheet provisions to address issues on which the accounts have previously been qualified. Proposals are also included in this report for transfers to earmarked reserves to meet known items for which funding will be required in the foreseeable future.

Resolved -That the transfers to general and earmarked reserves summarised in paragraph 29 (as amended) be agreed.

9. Medium term financial plan 2004/05 to 2007/08 interim report

(Agenda item 9)

This report sets out the proposed process and timetable for updating the Medium Term Financial Plan, gives an early indication of the expected impact of corporate pressures and updates the projected levels of grant funding. It also sets these interim projections in the context of the Mayor’s budget guidance for 2004/05, in particular the requirement to exemplify three savings options.

In introducing the report the Treasurer stressed that this was an interim report and did not take account of, for example, the review of business group budgets or the step change programme.

Resolved - That

1. the process by which the Medium Term Financial Plan for 2004/05 to 2007/08 will be updated and the timetable of reports to the Finance Committee be noted;
2. the update of corporate items with a Service-wide impact be noted;
3. the updated grant funding projections be noted; and
4. the savings targets arising from each of the options required to be exemplified under the Mayor’s budget guidance be noted.

10. Treasury management financial review 2002/03

(Agenda item 10)

The annual review of the treasury management for the year ended 31 March 2003 was submitted.

Resolved - That the annual report of the treasury management function be noted.

11. Special Services Agreements

(Agenda item 11)

A report was submitted which updated members on the progress of further work around the delivery of special services in certain circumstances since a previous report to the Committee on 11 July 2002.

A member referred to paragraph 9 which stated that the Audit Commission had identified good practice in the operation of the agreement at Heathrow and asked whether the system used at Heathrow for recording costs which had been praised could be used elsewhere.

The Director of Finance confirmed that the comments made by the Audit Commission would be part of the consideration of the renewal of the Palace of Westminster agreement and others when renewed.

Resolved - That the report be noted.

12. Sponsorship and Income Generation Unit progress report

(Agenda item 12)

A report was submitted which outlined the progress made in setting up the recently enhanced Sponsorship and Income Generation Unit showing the current position and the forward plan.

Resolved – That

1. the report be noted; and
2. monitoring reports be submitted to the budget group.

13. Financial contributions to external organisations

(Agenda item 13)

A report was submitted which provided details of past financial contributions to external organisations, proposed criteria for assessing future applications for financial assistance and the future administration of the Police Property Act Fund. The report was also scheduled to be considered by the Co-ordination and Policing Committee on 21 July.

Members feIt that more work needed to be done on the grant criteria and that the report should not go to the Co-ordination and Policing Committee until this work had been undertaken.

Resolved - That the report be deferred to enable more work to be done on the criteria for grants.

14. Action stations revisited

(Agenda item 14)

In 1999 the Audit Commission published its report entitled ‘Action Stations’ - Improving the Management of the Police estate in England and Wales. A report was submitted which updated the Committee on the current approach of the MPA and MPS in the context of the report.

Resolved – That the report be noted and supported.

15. Key Home Buyer Scheme

(Agenda item 15)

The eligibility criteria under the Key Homebuyer Scheme is currently restricted as priority is only given to those civil staff who occupy posts that are deemed to support operational policing. The take up of funds available under the Scheme enables this restriction to be more liberally interpreted in its last year and a report was submitted which outlined how the eligibility criteria might be widened.

In reply to a question from a member the Director of Property Services stated that it was not appropriate to produce a list of posts to which the scheme might be extended as these could well change in the coming months in the light of difficulties in recruiting for specific posts etc.

Resolved - That the eligibility for civil staff under the key homebuy scheme be significantly eased in order to achieve the ratio of police to civil staff originally envisaged.

16. Alteration works to Otis House

(Agenda item 16)

A report was submitted concerning the proposed building alteration works at Otis House, 43 to 59 Clapham Road, Lambeth, as part of the Lambeth Borough Operational Command Unit (OCU) accommodation requirements and the provision of additional accommodation identified in the Central London Property Plan. Approval was sought to proceed with tendering and award of contract for works to Otis House, for both the Borough OCU and other business unit(s) accommodation proposals.

Resolved – That

1. the approval given by at the FP&BV meeting on 4 October 2001 for the accommodation for Lambeth Borough OCU including the approval given to the initial phase of the project, which was taking a lease for Otis House and converting the building for Borough administration and SO functions be noted;
2. the approval given by Finance Committee meeting on 9 June 2003 for accommodation for wider issues, item 11 be noted;
3. it be noted that a lease has now been taken for Otis House; and
4. approval be given to tender the building conversion works to Otis House and award a contract, if the recommended tender is within the budget cost estimate detailed in this report, (subject to permitted variance within the new Contract Regulations / Delegated Powers). If the tender exceeds the budget cost a further report will be submitted. The contract estimates are contained in the exempt report.

17. Wembley Police Station refurbishment

(Agenda item 17)

A report was submitted concerning the building refurbishment works at Wembley Police Station, including the formation of a new custody suite and the conversion of Wembley Section House to form a new headquarters and centralised charging centre for the Borough of Brent. Formal recognition and approval of the increased costs was sought in accordance with Contract Regulations and Delegated Powers.

Resolved – That approval be given to the increase in outturn cost for the refurbishment reported in the above programme in accordance with the new Contract Regulations / Delegated Powers. If the revised cost is further exceeded a further report will be submitted. The increased cost estimates are contained in the exempt paper.

18. Use of Chiswick Police Station for non-emergency service aerials

(Agenda item 18)

The MPA has previously approved the use in principle of the police estate for non-emergency service aerials. Terms have been agreed with Vodafone plc for the use of space at Chiswick Police Station to locate aerials and generate revenue for the MPA. A report was considered which detailed the proposed terms and provides a generic risk analysis in relation to the local area. It made recommendations on this proposal and for wider multi-site agreements.

With regard to consultation (paragraph 18) the Director of Property Services advised that there had been no response from the MPA link member. There had been no consultation with the borough council as that would be dealt with under any application for planning consent.

Resolved –(with Elizabeth Howlett asking that her dissent be recorded) that

1. the MPA approve the terms agreed, subject to contract, with Vodafone plc for the siting of mobile telecoms aerials and associated equipment at Chiswick police station on the detailed terms contained in the linked exempt report; and
2. the agreed terms are used as the basis for a multi-site agreement (MSA) between the MPA and operators, subject to MPA approval for the final Multi Site Agreement terms.

19. Appointment of consultants to support the outsource services re-tendering programme and the procurement business process improvement programme

(Agenda item 19)

A report was submitted which informed the Committee of the results of the competitive tendering exercise to appoint external consultants to assist with the outsource services re-tendering programme and to seek approval for the award of contracts to the consultants recommended for appointment.

Resolved – That contracts for the supply of consultancy services to support the outsource services re-tendering programme be awarded as follows:

1. PA Consulting Group, to provide consultancy services to cover the following areas:
   • Financial Consultancy Services
   • HR Consultancy Services
   • Procurement Consultancy Services
   • Technical Consultancy Services (Vehicle Repair and Maintenance and Vehicle Equip for Service)
   • Technical Consultancy Services (Pay and Pensions)
   • Technical Consultancy Services (Information and Communication Technology)
2. Ernst and Young LLP, to provide Technical Consultancy Services (Facilities Management and Direct Labour)
3. Nabarro Nathanson to provide Legal Consultancy Services

20. Exclusion of press and public

(Agenda item 20)

Resolved - That under section 100 A(4) of the Local Government Act 1972 the press and public be excluded from the meeting for the consideration of item 24 as it involved disclosure of exempt information as detailed in paragraphs 8 and 9 of Schedule 12A to the above Act.

Note: the discussion on items 21-23 and 25-29 was held whilst the press and public were able to be present. The reports themselves remain exempt.

Part 2

21. Alteration works to Otis House

(Agenda item 21)

This report contained exempt information in support of agenda item 16.

Resolved - That the information be noted.

22. Wembley refurbishment

(Agenda item 23)

This report contained exempt information in support of agenda item 17.

Resolved - That the information be noted.

23. Terms agreed with Vodafone for use of Chiswick Police Station as site for non-emergency service aerials

(Agenda item 23)

This report contained exempt information in support of agenda item 18.

Resolved - That

1. approval be given to the terms agreed, subject to contract, with Vodafone plc for the siting of mobile telecoms aerials and associated equipment at Chiswick Police Station and as set out in appendix 1 to the report; and
2. the agreed terms be used as the basis for a multi-site agreement (MSA) between the MPA and operators, subject to MPA approval for the final MSA terms.

24. Appointment of consultants to support the outsource services re-tendering programme

(Agenda item 24)

This report contained exempt information in support of agenda item 19.

Resolved - That the information be noted.

25. Programme for re-tendering the services delivered through the current outsource contracts

(Agenda item 25)

This report informed the Committee of the status of the programme for re-tendering all those services currently delivered to the MPS through the ten main outsource contracts, the provision of internal resource requirements and the appointments and the appointment of external consultants to assist with the re-tendering programme.

Resolved – That the report be noted.

26. Routine contracts programme

(Agenda item 26)

This report sets out the latest version of the Routine Contracts Programme, and provided details of the contracts above £1M. that the MPS wishes to let over the next twelve months on a rolling programme and details of those contracts let since the last report. The programme only covers the known routine renewals and not the emergent requirements that will still be dealt with under the current system and brought to Committee where required.

Resolved – That the information be noted.

27. Liability insurance renewal

(Agenda item 27)

A report was submitted which explained the action which had been take thus far in renewing the Authority’s liabilities insurances for 2003/04 and sought approval for the placement of the renewal to be made using the delegated authority procedure.

The Treasurer suggested that in view of the approaching holiday period that the Deputy Chair be added to the delegation process.

Resolved- That the Treasurer be given delegated authority to authorise liability insurances for the 2003/04 renewal programme after consultation with the Chair and/or Deputy Chair of the Committee.

28. Exempt minutes of the meeting held on 9 June 2003

(Agenda item 28)

Resolved - That the exempt minutes of the meeting held on 9 June 2003 be agreed and signed as a correct record.

29. Capital programme – exempt appendix

(Agenda item 29)

This report contained exempt information in support of agenda item 19.

Resolved – That the information be noted.

The meeting closed at 12.22

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