Minutes

Minutes of the meeting of the Finance Committee held on 20 November 2003 at 10 Dean Farrar Street, London, SW1H 0NY.

Present:

Members:

• Graham Tope (Chair)
• Nicholas Long (Deputy Chair)
• Reshard Auladin
• Elizabeth Howlett
• Eric Ollerenshaw (up to agenda item 6)
• Sir John Quinton
• Richard Sumray
• Rachel Whittaker

MPA staff:

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

MPS staff:

• Richard Bryan (Deputy Assistant Commissioner)
• Keith Luck (Director of Resources)
• Sharon Burd (Director of Finance)
• Alan Croney (Director of Property Services)
• Stuart Middleton (Director of Transport Services)
• Steve Atherton (Director of Procurement Services)
• David Hill (Divisional Director Facilities Management)
• Jane Bond (Director of Asset Management and Utilisation, DPS)
• Terry Price (Head of Corporate Finance)

Also attended:

• Craig Watkins (Costing Team Manger, Business Support) attended for agenda item 6
• Martin Chatfield attended for agenda items 9 and 9a
• Ken Gort, (Assistant Director of Internal Audit)
• Valerie Sng (Acting Head of the Events and Income Development Unit) attended for agenda item 32.

Part 1

Pursuant to Standing Order 4.6.1 in the absence of the Chair at the scheduled starting time of the meeting the Deputy Chair, Nicholas Long took the Chair. The Deputy Chair was in the chair for consideration of items 1-5 and part of the consideration of item 11 which was considered in conjunction with agenda item 5.

79. Apologies for absence

(Agenda item 1)

There were no apologies from members but it was reported that AC Godwin had been unable to attend.

Jane Bond, the newly appointed Director of Asset Management and Utilisation (DPS) was welcomed to her first meeting of the Finance Committee.

80. Declarations of interests

(Agenda item 2)

There were none.

81. Minutes of the meeting held on 23 October 2003

(Agenda item 3)

Resolved: That the minutes of the meeting held on 23 October 2003 be agreed and signed as a correct record.

Arising thereon-

Minute 57 Revenue Budget Draft Submission

The Treasurer reported that the announcement about the grant settlement had been made earlier in the week, although many specific details had only been made available earlier in the day and written confirmation with the full details was awaited. From the information available the position would appear to be that whilst the level of basic grant was only £2.5 million less than anticipated there had been some unexpected reductions in some of the specific grants. This meant overall the total amount of grant receivable would be some £9.5 million less than had been anticipated. When full details were known the effects on the budget submission would be assessed and included in the report to be considered at the Authority meeting on 9 December.

82. Chair and Members’ update

(Agenda item 4)

Rachel Whittaker reported that the recent PNB meeting she had attended had discussed an item on Superintendents pay which might be relevant to the MPA.

83. Revenue budget monitoring 2003/04

(Agenda item 5)

A report was submitted which set out the income and expenditure for the MPA/MPS to the end of September 2003 and provided an update to the projected financial outturn for the year. The report also requested the Committee to approve a virement.

Resolved - that

1. the report be noted; and
2. a virement of £1.290m.be made from the Servicewide Premises heading of the budget to Servicewide Supplies and Services heading.

84. Fees and charges – annual review

(Agenda item 6)

A report was submitted which provided information on MPS fees and charges. It also provided details of charges for the detention of prisoners in MPS cell accommodation and for special services of police.

In reply to questions from members it was noted that the charges for the special services of police officers did not any provision for possible overtime hours worked. The Committee requested that an element in respect of premium payments be included.

Resolved - That

1. the schedule of fees and charges be approved subject to the inclusion of an element in respect of premium hours in the charges for the special services of police and to the Treasurer concurring with the charging basis to be used;
2. it be noted that Finance Services will be initiating further discussion with other agencies, concerned with the drafting of legislation on fees and charges to base these on the principle of full cost recovery and with a view to reducing the bureaucracy involved in administering said processes; and
3. it also be noted that Finance Services will be exploring further the current charges for use of cell accommodation with the Home Office to progress towards charges that reflect the full economic cost to the MPS of providing this service.

85. Capital programme monitoring 2003/04 – second quarter

(Agenda item 7)

A report was considered which provided forecasts of capital expenditure for 2003/04 as at the end of the second quarter. It also provided details of (a) actual expenditure on capital projects from 1 April to 30 September 2003; and (b) proposals for utilising £5.490m placed in earmarked reserves to be used for Estate improvements.

The Clerk reported that the Chair of the Authority had raised concerns with the Home Office over the way in which funds such as the Premises Improvement Fund were disbursed, which meant that all police services received the same amount.

Resolved - That the report be noted.

86. Treasury management half-year review

(Agenda item 8)

The Committee received a report on treasury management for the six month period ended 30 September 2003 and reviewed current developments.

Resolved -That the report and the budgetary implications be noted.

87. Step Change Programme

(Agenda item 9)

This was considered in conjunction with

88 Step Change Programme - supplementary report

(Agenda item 9a)

Agenda item 9 updated the Committee on progress in refining the cost base of the Step Change Programme and agenda item 9a contained information on the revised costs.

In reply to a question the representative of the Step Change Programme Co-ordination Team confirmed that the team was now satisfied that the revised figure of £341.375 M was accurate.

Resolved - That

1. the progress to date of refining the cost base of the Step Change Programme Business Case for Growth and the next steps in order to meet the budget submission to the Mayor be noted; and
2. the information in the supplementary report be noted.

89. Efficiency and Effectiveness Review Programme

(Agenda item 10)

A report was submitted which updated the Committee on the progress of the Efficiency and Effectiveness programme.

Resolved - That the report be noted.

90. Police overtime

(Agenda item 11)

This report discussed a number of issues which had arisen in relation to police overtime expenditure in 2003/04. These included the extent and operational reasons for the forecast year-end overspend, the implications for achieving the PNB agreement to reduce police overtime expenditure, the relationship with the work-life balance debate, a review of management controls in this area and the actions in place to manage this area of expenditure.

Members felt that whilst they supported the recommendation that the Committee be the lead committee for police overtime there was also an initial need for more detailed work to be done. The Chair suggested that the next meeting of the budget group look at police overtime and that all members of the Committee be invited to attend on that occasion.

Resolved –That

1. the report be noted; and
2. the Finance Committee be the lead committee for police overtime.

91. Estates update

(Agenda item 12)

The Director of Property Services reported that reports concerning the disposal of Trenchard House would be made to a future meeting.

Resolved- That the information on current estates issues be noted.

92. Valuation of MPA property estate

(Agenda item 13)

External advisers have valued the MPA estate at £1,419,937,351 as at 31 March 2003.

The Director of Property Services undertook to supply Sir John Quinton with details of how much had been paid in professional fees for the valuation.

Resolved - That the report be noted.

93. Use of Barnet Police Station as a site for non emergency service aerials

(Agenda item 14)

Terms have been agreed with O2 for the use of space at Barnet 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 for the siting of mobile telecoms aerials and associated equipment at Barnet police station.

94. Use of Edmonton Police Station as a site for non emergency service aerials

(Agenda item 15)

Terms have been agreed with T Mobile for the use of space at Edmonton 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.

Reshard Auladin confirmed that in his capacity as link member for Edmonton he had been consulted about the proposal and had no objection.

Resolved - that approval be given to the terms agreed as set out in the linked exempt report and subject to contract, with T Mobile for the siting of mobile telecoms aerials and associated equipment at Edmonton police station.

95. Consultancy services to manage delivery of the annual major maintenance works programme

(Agenda item 16)

A report was submitted which described the formal tendering exercise for the provision of consultancy services to manage the delivery of the annual major works programme.

Resolved – That approval be given for the award of a consultancy contract to Scott Wilson Kirkpatrick and Co Ltd on the terms detailed in the linked exempt report.

96. Management of the facilities services contractor

(Agenda item 17)

A report was submitted on the outcome of a formal competitive tender exercise for the appointment of a consultancy organisation to manage the services provided by Interserve fm.

Resolved – That approval be given for the award of a consultancy contract to Babcock Infrastructure Services for a two year period on the terms detailed in the linked exempt report.

97. Trenchard House

(Agenda item 18)

No report submitted.

98. Award of contract for MPS vehicle hire

(Agenda item 19)

A report was submitted which described the formal tendering exercise for the provision of hire vehicles to supplement the permanent vehicle fleet.

Resolved-That approval be given for the award of a the contract fro the supply of hire vehicles to National Car Hire for a period of two years from February 2004 with an option to extend if for up to a further year on the terms detailed in the linked exempt report.

99. Award of contract for public order carriers

(Agenda item 20)

A report was submitted which described the formal tendering exercise for the purchase of Public Order Carriers and the award to the preferred bidder of a five year (plus two year extension option) fleet management and maintenance contract.

Resolved - That approval be given for the purchase of Public Order Carrier vehicles and the award of an associated 5 (+ 2 extension option) year fleet management and maintenance contract to AssetCo Emergency on the terms detailed in the linked exempt report.

100. Annual report 2001/02 - information systems

(Agenda item 21a)

101. Annual report 2001/02 - telephony

(Agenda item 21b)

102. Annual report 2001/02 -radio services

(Agenda item 21c)

103. Annual report 2001/02 - command and control

(Agenda item 21d)

These reports were considered together. The reports provided an overview of the services provided by the outsource contractors.

The Director of Information apologised for the omission of detailed comments on the Equalities and Diversities Implications of these annual reports. She explained that equality and diversity considerations would have been fully addressed when the contracts were let. Procurement Services monitor the contracts with the last such exercise having been carried out a year ago.

Resolved – That the reports be noted.

104. Exclusion of press and public

(Agenda item 22)

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 105 agenda item 23 Acquisition of a lease of units 6, 6a, 7, 7a & 8a Canterbury Court, Kennington Park Estate, 1-3 Brixton Road, London SW9
Agreed to enter into a lease for these premises.

Minute 106 agenda item 24- Exempt appendices to agenda items 14 and 15
The information was noted.

Minute 107 agenda item 25- Consultancy services to manage delivery of the annual major maintenance works programme
Information in support of agenda item 12 noted.

Minute 108 agenda item 26 - Management of the facilities services contractor
Recommendation relating to the disposal was adopted.

Minute 109 agenda item 27 – This item was withdrawn.

Minute 110 agenda item 28 - Appendix to award of contract for vehicle hire
The exempt information in support of agenda item 19 was noted.

Minute 111 agenda item 29 - Appendix to award of contract for public order carriers
The exempt information in support of agenda item 20 was noted.

Minute 112 agenda item 30 Appendices to annual reports on major DoI outsourced contracts
The exempt information in support of agenda item 21 was noted.

Minute 113 agenda item 31 - Routine contracts renewal quarterly update
The report was noted.

Minute 114 agenda item 32 - Keyholder Database (Project Penates) update
Decisions deferred to December meeting

Minute 115 agenda item 33 - exempt minutes of the meeting held on 23 October 2003
The minutes were agreed and signed as a correct record

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