Minutes

Minutes of the meeting of the Finance Committee held on 23 October 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:

• Peter Martin (Treasurer)
• Keith Dickinson (Policy Officer)
• John Crompton (Committee Services)

MPS staff:

• Sharon Burd (Director of Finance), Alan Croney (Director of Property Services), Stuart Middleton (Director of Transport Services), Richard Earland (Group Director DoI Information Programme), David Hill, Terry Price (Head of Corporate Finance) and Tom Flaherty (representing Commander Fitzpatrick)

Part 1

52. Apologies for absence

(Agenda item 1)

There were none.

53. Declarations of interests

(Agenda item 2)

Rachel Whittaker declared a personal interest in the firm identified in exempt agenda item 26.

54. Minutes of the meeting held on 15 September and 13 October 2003

(Agenda item 3)

Resolved: That the minutes of the meetings held on 15 September and 13 October 2003 be agreed and signed as a correct record.

Arising thereon-

Minutes of the meeting held on 15 September - Minute 41 Insurance Arrangements

The Treasurer reported that action had been taken under the delegated authority agreed at the meeting to place the insurances to be effective from 1 October 2003. The overall cost of the property insurance was within the anticipated envelope but the premium for terrorism cover was approximately £60,000 higher than had been anticipated.

55. Chair and members’ update

(Agenda item 4)

No reports were given.

56. Revenue budget monitoring 2003/04

(Agenda item 5)

A report was submitted which sets out the income and expenditure for the MPA/MPS to the end of August 2003 and provided an update to the projected financial outturn for the year.

Members said that in order for the linking of the policing plan cycle and budget cycle to be fully effective the latter would need to contain information relating to the devolved budgets.

There was concern that even though the matter had been discussed many times there was still a lack of clarity over aspects of the police overtime budget and how it might be controlled to bring it in line with the PNB requirement.

The Head of Corporate Finance said that whilst it was undoubtedly complex there had been a continued better understanding of the overtime budget as discussed at paragraph 6 , for example, the way in which virements involving overtime were deal with in devolved budgets.

In summing up the ensuing discussion the Chair said it was clear that the Committee was not prepared to accept at this stage that no further reductions could be made in the police overtime budget for 2004/05. Overtime was said to be largely unpredictable and demand led, but this should not be taken as a reason for it not to be properly managed.

Resolved - that the report be noted.

57. Revenue budget draft submission 2004/05

(Agenda item 6)

A report was submitted which updated the Committee on progress in seeking further budget reductions beyond those already reflected in the draft budget submission The report asked the Committee to support the inclusion of these further reductions in the submission to the Mayor.

The Treasurer apologised for the fact that it had been necessary to despatch the report after the main agenda despatch which was necessary as it had not been possible to finalise the report until after the matter had been discussed at an informal meeting of the Coordination and Policing Committee on 20 October.

The Committee was also concerned to ensure that the implications of any one off savings in 2004/05 were clearly presented in the final submission.

Referring to the table in paragraph 19 Eric Ollerenshaw asked for clarification of the size of the efficiency element in the figures shown in respect of “efficiency and other savings”.

Resolved –

1. That the 2004/05 budget submission be amended by the inclusion of the further proposed reductions summarised in appendix 2.

58. Budget devolution at pathfinder sites

(Agenda item 7)

A report was submitted which gave an overview of the current financial devolution position within the MPS.

Resolved – That the report be noted.

59. Allocation of vehicles within the MPS

(Agenda item 8)

Following recommendations made in the October 2001 MPS Fleet Strategy and the Accenture Efficiency and Effectiveness Review Programme, a Vehicle Allocation Formula was devised to optimise vehicle allocation to boroughs. A revised vehicle allocation has been developed for the 32 Borough OCUs; it distributes the available vehicles more equitably and provides fleet mixes that reflect local needs. It will be implemented by 31 March 2005. The distribution of the remainder of the fleet between other OCUs is also being reviewed.

Resolved -That the report be noted.

60. Premises improvement facilities fund – bids to Home Office

(Agenda item 9)

A report was submitted which gave details of bids made to the Home Office in respect of the Premises Fund and the Video Facilities Fund.

The Director of Finance Services advised that notification had been received that both of the bids made for monies from the Premises Improvement Fund ahd been successful although the sum awarded was only £200,000 in each case.

The Committee felt that the way which the Home Office had chosen to distribute the monies was not appropriate to the needs of police services such as the MPS with a large population and an old estate.

Resolved -

1. Formal approval be given to the following bids made to the Home Office: £0.475m in respect of the front office refurbishment programme, and £0.5m in respect of refurbishment work for the technical evidential laboratories.
2. A further report be submitted setting out details of the allocation process.

61. Naming of office premises at 43-59 Clapham Road SW9

(Agenda item 10)

The newly leased office premises at nos 43-59, Clapham Road is to be fitted-out to provide accommodation for Lambeth Borough Operational Command Unit (OCU) to occupy in February, with follow-on works to accommodate various other units in April 2004. A report was submitted which asked the Committee to endorse a proposed name for the premises.

Resolved - That the office premises at nos. 43-59 Clapham Road as Frank O’ Neill House.

62. Use of Finchley Police Station as a site for non emergency service aerials

(Agenda item 11)

Terms have been agreed with 02 UK Ltd for the use of space at Finchley police station to locate aerials and generate revenue for the MPA. A report was submitted which set out details of the proposed terms and provided a generic risk analysis in relation to the local area.

Resolved – That approval be given to the terms agreed as set out in the linked exempt report and subject to contract, with O2 UK Ltd for the silting of third generation mobile telecoms aerials and associated equipment at Finchley police station and provided a generic risk analysis in relation to the local area.

63. Use of Chiswick Police Station as a site for non emergency service aerials

(Agenda item 12)

Terms have been agreed, subject to contract, with Orange PCS Ltd for the use of space at Chiswick police station to locate aerials and generate revenue for the MPA. A report was submitted which gave details of the proposed terms . and provided a generic risk analysis in relation to the local area.

Resolved- That approval be given to the terms agreed as set out in the linked exempt report and subject to contract, with Orange PCS Ltd for the sitting of mobile telecoms aerials and associated equipment at Chiswick police station.

64. Use of Islington Police Station as a site for non emergency service aerials

(Agenda item 13)

Terms have been agreed with T-Mobile (UK) Ltd for the use of space at Islington police station to locate aerials and generate revenue for the MPA.

A report was submitted which set out details of the proposed terms and  provided a generic risk analysis in relation to the local area.

Resolved - That approval be given to the terms agreed as set out in the linked  exempt report and subject to contract, with T-Mobile (UK) Ltd for the silting of third generation mobile telecoms aerials and associated equipment at Islington police station.

65. Use of Kennington Police Station as a site for non-emergency service aerials

(Agenda item 14)

Terms have been agreed with Vodafone plc for the use of space at Kennington police station to locate aerials and generate revenue for the MPA. A report was submitted which set out details of the proposed terms and provided a generic risk analysis in relation to the local area.

Resolved –That approval be given to the terms agreed as set out in the linked exempt report and subject to contract, with Vodafone plc for the silting of mobile telecoms aerials and associated equipment at Kennington police station.

66. Use of 3-5 Nightingale Lane as a site for non-emergency service aerials

(Agenda item 15)

A member pointed out that although the mast would be sited in Wandsworth its proposed location was very close to the boundary with Lambeth. The Director of Property Services was asked to ensure in similar cases in the future that there was appropriate consultation in all boroughs affected.

Elizabeth Howlett reiterated her opposition to the proposal for the reasons set out at paragraph 18.

Resolved - (with Elizabeth Howlett and Eric Ollerenshaw asking that their dissent be recorded) - that approval be given to the terms agreed as set out in the linked exempt report and subject to contract, with Orange PCS Ltd for the silting of mobile telecoms aerials and associated equipment at 3-5 Nigtingale Lane.

67. Vehicle equipping for service and maintenance outsource contracts

(Agenda item 16)

A report was submitted which provides an update on the performance of the vehicle maintenance contract with Venson Public Sector plc and the equipping for service contract with S. MacNeillie and Son. Both of these two major Transport Services’ outsource contracts are due to be replaced in April 2006. Work on the programme to replace the contracts, along with the other major MPS outsource contracts, is underway.

Resolved – That the report be noted.

68. MPS information strategy – approval to place a call-off contract

(Agenda item 17)

A report was submitted in the outcome of a formal competitive tender exercise for a service contract.

Members questioned the fact that an impact assessment had not been carried out and Reshard Auladin said that the “Secret Policeman” tv programme shown on 21 October had demonstrated the need for constant vigilance to ensure that all potential incidents of racism were being eliminated. Assessments in procurement exercises should be undertaken as a matter of course and it seemed odd that it had been concluded that it was not necessary to carry out an assessment in this case bearing in mind the size of the contract.

The Group Director DoI Information Programme said that this aspect would be re-examined.

(The Chairman of the London Constables Branch of the Police Federation was in the public gallery and the Chair allowed him to briefly address the meeting. He said that he had been greatly shocked by the television programme which had the potential to set back many years of progress. He wished to assure members that every effort would be made to repair the damage and to continue to work towards common goals on race relations and equality.)

Resolved –

Approval be given for the award of a consultancy contract to Logica CMG for a two year period on the terms detailed in the linked exempt report.

69. Supply and installation of furniture and ancillary services

(Agenda item 18)

This report described a formal tendering exercise for the supply and installation of furniture (supported by the provision of move management and space planning services) and makes a recommendation for the award of the contract.

Resolved –

That approval be given for the award of the contract to Vista Workplace Solutions on the terms detailed in the linked exempt report.

70. Property Services outsource contracts and commercial strategy beyond their initial expiry date of 1 January 2004

(Agenda item 19)

A report was submitted which set out details of the negotiated costs to extend the direct labour services contract until 31 December 2005.

Resolved - that

1. the progress made with setting in place alternative arrangements for the confirmation of outsourced services after 1 January 2004 following the cessation of the Facilities Management Contract with Carillion Services Ltd on 31 December 2003 be noted.
2. Interserve (fm) Ltd be appointed to provide an extended service provision for the period 1 January 2004 to 31 December 2005, on the terms detailed in the linked exempt report.

71. 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 following items of business on the grounds that they involved disclosure of exempt information as detailed in paragraphs 7, 9 and 12 of Schedule 12A to the above Act.

Part 2

Summary of decisions made on exempt items

Minute 72 agenda item 21- Exempt appendices to agenda items 11-15
The information was noted.

Minute 73 agenda item 22- Vehicle equipping for service and maintenance outsource contracts
Information in support of agenda item 12 noted.

Minute 74 agenda item 23 – MPS Information Strategy – approval to place a call-off contract
Recommendation relating to the disposal was adopted.

Minute 75 agenda item 24 – Supply and installation of furniture and ancillary services
The exempt information in support of agenda item 18 was noted.

Minute 76 agenda item 25 – Property Services outsource contracts and commercial strategy beyond their initial expiry date of 1 January 2004
The exempt information in support of agenda item 19 was noted.

Minute 77 agenda item 26 – Extension of existing contract for the provision of pay and pension administration services
Agreed to an extension of the existing contract

Minute 78 agenda item 27 – exempt minutes of the meeting held on 15 September 2003
The minutes were agreed and signed as a correct record

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