Minutes

Minutes of the meeting of the Finance Committee held on 16 February 2006 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Richard Sumray (Deputy Chair in the Chair)
• Reshard Auladin
• Richard Barnes
• Elizabeth Howlett

MPA officers

• Ken Hunt (Treasurer)
• David Riddle (Deputy Chief Executive and Clerk)
• John Crompton (Committee Services)

MPS officers

• Keith Luck (Director of Resources)
• Simon Hart (Director of Business Support)
• Alan Croney (Director of Property Services)
• Anthony Doyle (Director of Procurement)
• Mike Jennings (Consultant, Finance Directorate)
• Mick Morris attended for consideration of agenda item 18

96. Apologies for absence

(Agenda item 1)

Apologies for absence were received from Graham Tope, Bob Neill, Murad Qureshi and Rachel Whittaker.

97. Declarations of interests

(Agenda item 2)

There were none.

98. Minutes of the meeting held on 19 January 2006

(Agenda item 3)

RESOLVED: That the minutes of the meeting held on 19 January 2006 be agreed and signed as a correct record

99. Revenue and capital budget monitoring 2005/06- period 9

(Agenda item 4)

The report provided an update on the revenue and capital budget monitoring position for 2005/06 at Period 9 (to the end of December). The revenue budget is forecast to underspend by £9.8m (0.4% of budget). The expenditure to-date for the capital programme as at Period 9 (December) is £154.9m, which is 48.1% of the revised budget of £322.4m. The forecast for the year of £273.7m is £48.7m below the revised budget.

The Director of Business Support confirmed that as requested at the last meeting a note had been prepared with more information on the variances in transport costs and this would shortly be circulated to members. The Committee noted that the second recommendation had been included in error and it was not addressed to the MPA.

In responding to points on the implementation of community based policing (paragraph 39) the Committee was advised that all teams would be composed of a minimum of four by April rising to the full complement of six by December 2006. Any existing funding arrangements with local authorities for additional officers would be revised at the end of the current financial year to take account of the roll out of the teams funded by the MPA. Local authorities who wished to do so could divert the funds released to fund further additional police officers or PCSOs and this would be a matter for negotiation with individual boroughs.

RESOLVED – That the year to date and forecast position for revenue budgets and the capital programme be noted.

100. Borrowing and capital spending plan 2006/07 to 2008/09

(Agenda item 5)

This report provided details of a recent review of the borrowing and capital spending plan 2006/07 to 2008/09.

The Chair asked that members be supplied with further details of the new projects listed in Appendix 2. He also requested that the next report contain proposals for substitution of items so that there could be greater certainty that the budget would be fully used.

RESOLVED – That the revised MPA/MPS capital programme for 2006/07 to 2008/09 be approved and the next report to contain proposals for substitution.

101. 2006/07 grant settlement and budget implications

(Agenda item 6)

A report was submitted which provided an update on the latest position on the 2006/07 revenue budget. The Treasurer provided an update to his report by stating that the GLA Assembly had agreed the budget at its meeting on 15 February.

RESOLVED – That the latest position on the 2006/07 budget be noted.

102. Cost implication of public order events

(Agenda item 7)

A report was submitted which set out the policing costs associated with major public order events that occurred during 2005.

Members indicated that they were pleased to note that a voluntary contribution had been made by Chelsea Football Club towards the policing cost of their victory parade and hoped that this would act as a precedent that would encourage other football clubs to make voluntary contributions. The Chair referred to the costs involved in policing the DSEI Arms Exhibition and said that ways had to be found to reduce the costs borne by the public purse.

RESOLVED – that the report be noted.

103. Efficiency Plan Monitoring -2005/06 – 3rd Quarter

(Agenda item 8)

A report was submitted which set out the forecast position against the efficiency plan at the end of the third quarter for 2005/06. It was anticipated that the efficiency target set by the Home Office would be exceeded by £25.5 million.

In a reply to a question, the Director of Resources advised that it appeared that there would be no ‘penalty’ in the current year for not meeting the target on reducing police overtime, but meeting the overtime target clearly remained a challenge for future years.

RESOLVED - That the position against the efficiency plan as at the end of December 2005 be noted.

104. Efficiency Plan 2006/07 and future years

(Agenda item 9)

A report was submitted which set out the financial aspects of the efficiency plan for 2006/07 and future years. Recommendation 3 was amended accordingly.

In reply to a question, the Director of Business Support advised that there was an element of over programming. The Chair requested that future reports contain a note on over programming and that there be a further report be submitted with regard to 2007/08.

RESOLVED That

1. the Efficiency Plan for 2006/07 be approved and noted that a further £7m. of savings will be included, once identified, during 2006/07;
2. the process for providing in-year updates be noted;
3. it be noted that the plan will be submitted to the Home Office by the end of February, and included within the Annual Policing Plan for 2006/07; and
4. a further report with regard to 2007/08 be submitted to a future meeting.

105. Review of residential rents and service charge

(Agenda item 10)

A report was submitted which requested the Committee to determine the level of rent increase for 2006/07 to be paid by officers who live in MPA residential accommodation.

The Director of Property Service advised that the Federation had written to say it did not support any increase. The Director of Property Services stated that the 3.2% figure quoted in the report as being recommended by the MPS was the rate by which other London social housing providers had increased their charges. The Committee had used the same comparator index for the last four years and he would suggest that in future years that the determination of the rent increases and service charges be dealt with in the general report on fees and charges on the understanding that unless stated otherwise the recommended increase would continue to use the same comparator.

RESOLVED – That

1. an overall average increase of 3.2% be applied to both the rents payable on residential quarters and the service charge that is paid in respect of section house bedspaces; and
2. in future years that rent increases and service charges be dealt with in the general report on fees and charges.

106. Update on estates strategy

(Agenda item 11)

This report updated members on the progress made in implementing the Estate Strategy agreed by the MPA/MPS in 2003 and formally launched in early 2004. It focuses upon progress and more importantly the impact on the Service going forward when considered alongside the current policing priorities and plans.

The Chair said that there were clear and important linkages between the strategy and the Met Modernisation Programme. Scrutiny of the Programme was currently an important piece of work for the Co-ordination and Policing Committee and it would therefore be appropriate for the report to be referred to that Committee rather than considered in detail by the Finance Committee.

RESOLVED – that the report be endorsed and be referred to the Co-ordination and Policing Committee for detailed consideration.

107. Residential estate strategy review

(Agenda item 12)

A report was submitted which recommended changes to the residential estate to meet operational policing objectives.

It was noted that Murad Qureshi and Rachel Whittaker had indicated that they supported the recommendations and that the Federation had indicated that it did not wish to see any change to the existing arrangements.

The Chair stressed the importance of a robust communications strategy with on-going support for officers throughout the relocation process.

The Director of Property Services confirmed that pursuant to the communications strategy a letter had been sent to the occupiers of the accommodation about the proposed changes and there was also information on the MPS intranet. Some 57 emails had been received so far and the majority had not raised any specific concerns. Local forums would be facilitated which would enable points of concern to be raised and there were well established procedures in place to assist with the relocation process.

In reply to questions the Director of Property Services gave as examples of the uses which the residual residential units would be put emergency sleeping accommodation during a ‘live’ incident such as a hostage taking and also for welfare cases – for example when domestic arrangements impinged on an officer’s ability to work effectively. The units would be of varying size.

The Treasurer said that he had to express some concern that the capital programme has no proposed receipts from disposal or new spend from this programme. Also, there are no financial figures for the likely revenue savings to be released – members are being asked to agree to ring fencing these savings back to address the maintenance backlog.

In reply, the Director of Property Services said he did not consider it would be practicable to prepare a detailed programme and in any case, it was important to have the flexibility to be able to take advantage of opportunities as they arose.

The Committee fully supported the proposals and agreed to make three changes to the wording of recommendations 3 and 4 to provide further clarification of the size and use of the residual residential estate.

RESOLVED – that

1. the findings of this Review be noted and agreed;
2. approval be given to the implementation of the findings, namely to exit direct provision, over a phased period that respects current occupancy and contractual/obligation positions;
3. approval be given to the funds released from residential disposals being added to the capital programme and prioritised (in line with agreed MPA/MPS processes) for modernisation of operational policing. It was also approved that revenue savings arising be monitored and reported upon annually and these funds be used to address the maintenance backlog in the operational estate;
4. approval be given to a much reduced estate of up to 200 residential units being held for short term operational and welfare cases going forward;
5. it be agreed that the provision of hostel accommodation (Section Houses) is no longer appropriate and should be ceased as soon as practicable;
6. surplus residential estate assets be released in line with best practice and in terms of asset management planning for the operational police estate;
7. the impacts on officers be managed sensitively and as outlined in the relevant sections;
8. the consultees be advised of the Authority decisions; and
9. the Director of Property Services be authorised to implement the strategy under existing delegated powers subject to an annual report to the Authority. Any reinvestment of funds to follow existing delegation and regulation processes.

108. Routine Contracts Programme

(Agenda item 13)

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.

RESOLVED - That the latest version of the Routine Contracts Programme be approved and authorisation be given to place the OJEU advertisements as appropriate.

109. Procurement transformation plan

(Agenda item 14)

Since 2003 Procurement Services has embarked on an extensive programme to change and improve its service delivery and provide a professional service, valued by all its customers. An update was provided in October 2004. This report highlights the progress and key achievements made by Procurement Services since then and outlining the vision for the future.

RESOLVED – That the report be noted.

Arising

Arising from the discussion on this report and agenda item 13 the MPS was asked to submit a report to a future meeting on details of how the retention issue which had been highlighted might be addressed.

110. Exclusion of press and public

(Agenda item 15)

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 111 agenda item 16 exempt Appendix to residential estate strategy review
The exempt information was noted.

Minute 112 agenda item 17 – exempt Appendix to Routine Contracts Programme
The exempt information was noted.

Minute 113 agenda item 18 - Keyholder Database
Agreed to terminate an existing contract and to work with the ALG to ensure an effective transition from the MPA database to individual borough schemes.

Minute 114 agenda item 19 - exempt minutes of the meeting held on 19 January 2006
Agreed and signed as a correct record.

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