Minutes

Minutes of the meeting of the Finance Committee held on 20 October 2005 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Graham Tope (Chair)
• Richard Sumray (Deputy Chair)
• Reshard Auladin
• Elizabeth Howlett
• Murad Qureshi
• Rachel Whittaker

MPA officers

• Catherine Crawford (Chief Executive and Clerk)
• Ken Hunt (Treasurer)
• John Crompton (Committee Services)

MPS officers

• Keith Luck (Director of Resources)
• Sharon Burd (Director of Finance Services)
• Terry Price (Director of Strategic Finance)
• Anthony Doyle (Acting Director of Procurement Services)
• Stuart Middleton (Director of Transport Services)

35. Apologies for absence

(Agenda item 1)

Apologies for absence were received from Richard Barnes and Bob Neil.

36. Declarations of interests

(Agenda item 2)

There were none.

37. Minutes of the meeting held on 15 September 2005, the joint Finance and Planning Performance and Review Committee on 10 October and the special meeting held on 10 October 2005

(Agenda item 3)

Resolved: That the minutes of the meetings held on 15 September and the special meeting held on 10 October 2005 be agreed and signed as a correct record.

The Committee also noted the minutes of the joint meeting with the Planning Performance and Review which would go on to be submitted to the Planning Performance and Review Committee for confirmation and signature as Richard Sumray, the Chair of that Committee, had chaired the joint meeting.

38. Chair and members' update

(Agenda item 4)

Rachel Whittaker reported that she and Elizabeth Howlett had attended a very interesting presentation on Property Services matters on 18 October and she wished to thank the Director of Property Services and colleagues for arranging the event.

39. Financing Operation Theseus

(Agenda item 5)

A report was which updated the Committee on the latest position on financing the costs of Operation Theseus. An interim payment of special grant of £10 M has been received.

The Treasurer said the figures that appeared in the final sentence of the fourth paragraph should to be revised to reflect the fact that the forecast additional expenditure is £70.4 M.

The Chief Executive and Clerk advised that at a meeting she had attended with the Chair of the Authority at which Home Officials had made it clear that the monies would have to come from the Treasury so it would be advisable to liaise closely with the Home Office on the case to be submitted to the Treasury.

Members felt as it had now been established that further monies would be forthcoming a further application be now lodged for a further tranche of the special grant.

Resolved - That

1. the latest position be noted; and
2. a claim be lodged for a further interim payment of special grant pending the final settlement.

40. Progress report on the Medium Term Financial Plan and budget submission 2006/07- 2008/09

(Agenda item 6a)

This report provided an update on progress to date in the preparation of the draft budget submission for 2006/07 to 2008/09 and Medium Term Financial Plan (MTFP), and the processes being undertaken to establish a balanced budget.

The Committee agreed to receive this report, which had been circulated earlier in the day.

Resolved - That

1. the updated financial overview position as summarised at Appendix 1 be noted; and
2. a fuller budget report be submitted to the Authority meeting on 27 October

41. Draft capital programme 2006/07 to 2008/08 – progress report

(Agenda item 6b)

This report provides details of the draft capital programme for 2006/07 to 2008/09, which will form part of the Borrowing and Capital Spending plan element of the overall budget submission to the Mayor. It highlights a number of capital programme pressures that need to be considered before the overall submission can be finalised and recommends that the consolidated capital programme forms the basis of the submission, amended as necessary in the new year when decisions of funding and growth are known.

The Committee agreed to receive this report which had been circulated earlier in the day.

The Treasurer observed that the anticipated level of capital receipts for 2007/08 onwards was substantially higher than in recent years. There would clearly be resource implications in arranging the sale of assets and these should be taken into account in drafting the draft revenue budget.

Members referred to the fact that the Committee had yet to consider the residential estate strategy, which they had been advised would be submitted at the conclusion of the Service Review. They requested that it be submitted at the earliest opportunity. A report on the training estate was also due.

Resolved - That

1. the consolidated capital programme be agreed as the basis of the capital submission recognising that further work on some expenditure proposals is taking place; and
2. it be noted that the detailed programme will be further reviewed by this Committee in early 2006, in the light of the Mayor’s budget decisions, Home Office capital grant announcements, review of the refreshed estates strategy and decisions on growth bids.

42. Treasury management half year review 2005-06

(Agenda item 7)

This report provided a review of treasury management for the six month period ended 30 September and reviews current developments.

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

43 Routine Contracts Programme

(Agenda item 8)

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

A member commented that in furtherance of the Committee’s monitoring role it would be very useful if the committee was provided with information on how the estimated contract value compared to the actual award.

The Acting Director of Procurement Services undertook to provide this information in future reports.

Resolved – That

1. the latest version of the Routine Contracts Programme be approved and the OJEU advertisements be placed as appropriate; and
2. future reports contain information on how the estimated contract value compared to the actual award.

44. Outsourced transport services contract award

(Agenda item 9)

This report sought the Committee’s approval to award two new contracts to provide the MPS with high quality outsourced transport support services over the next decade. The first contract for vehicle equipping for service is to be awarded to S MacNeillie & Son; and the second for vehicle and specialist equipment repair and maintenance, vehicle collision damage repair and vehicle hire is to be awarded to Lex Transfleet. Both contracts will be for 10 years starting in April 2006. Overall contract costs are approximately £226.4M (Net Present Cost over 10 years.

The Committee considered this report in the exempt section of the meeting.

Resolved - That subject to noting that there had been changes to the ownership of Lex Transfleet, contracts be awarded to:

1. S MacNeillie & Son for the provision of vehicle equipping for service for 10 years to start in April 2006; and
2. Lex Transfleet for the provision of vehicle and specialist equipment repair and maintenance, vehicle collision damage repair and vehicle hire for 10 years to start in April 2006.

45. Exclusion of press and public

(Agenda item 10)

Resolved - That under section 100A(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 to the above Act.

Summary of decisions made on exempt items

Minute 46 agenda item 11 exempt Appendix to routine contracts programme
The information was noted.

Minute 47 agenda item 12 exempt Appendix to outsourced transport services contract award
The information was noted.

Minute 48 agenda item 13 outsource services programme update
The Committee noted the status of the programme.

Minute 49 agenda item 14 - exempt minutes of the meetings held on 15 September and 10 October 2005
The minutes were agreed and signed as a correct record.

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