Minutes

Minutes of the meeting of the Finance Committee held on 15 June 2006 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Graham Tope, (Chair)
• Richard Sumray (Deputy Chair)
• Elizabeth Howlett
• Aneeta Prem
• Rachel Whittaker

MPA officers

• Catherine Crawford (Chief Executive and Clerk)
• Ken Hunt (Treasurer)
• John Crompton (Committee Services)
• The Director of Internal Audit attended for consideration of agenda items 26a and 26b

MPS officers

• Keith Luck (Director of Resources)
• Sharon Burd, (Director of Finance)
• Simon Hart (Director of Business Development)
• Ailsa Beaton (Director of Information)
• Alan Croney (Director of Property Services)
• Jane Bond (Property Services)
• Anthony Doyle (Director of Procurement)

131. Apologies for absence

(Agenda item 1)

Apologies for absence were received from Reshard Auladin, Richard Barnes and Bob Neill.

132. Declarations of interests

(Agenda item 2)

There were none.

133. Minutes of the meeting held on 20 April 2006

(Agenda item 3)

Resolved: That the minutes of the meeting held on 20 April 2006 be agreed and signed as a correct record

134. Appointment of Budget group

(Agenda item 4)

A report was considered which asked the Committee to make appointments to the Budget group. Members felt that whilst the core business of the group would remain as scrutiny of the budget and police overtime the remit should be flexible so that it could encompass any relevant issues of current concern. In a similar vein the membership should be extended to the whole of the Finance Committee, with attendance being discretionary.

Resolved - That the budget group be re-appointed with Graham Tope as Chair and the membership comprising all members of the Finance Committee.

135. Revenue and capital provisional outturn 2005/06

(Agenda item 5)

A report was submitted which provided the provisional outturn position against the revenue budget for 2005-06. The expectation is for a year-end underspends of £7.5m. The report also included the provisional outturn against the capital budget for 2005-06. The expected outturn for the year at £228.3m is £64.5m below budget

In reply to a question from Richard Sumray, the Director of Business Support reported that a report would be submitted to the July meeting on the capital programme and this would include reference to points which had previously been made by members concerning programming.

Resolved – That

1. the provisional outturn position against the revenue and capital budgets for the year be noted;
2. approval be given to the use of the net underspend to provide for earmarked reserves as detailed in paragraph 35 of the report; and
3. it be noted that these figures may be subject to change as account closure continues.

136. Revenue reserves

(Agenda item 6)

A report was submitted which set out the review of the likely reserves prior to closing the 2005/06 accounts. It also provides the basis for the review of reserves for the 2007/08 budget cycle as part of the new approach to the financial framework. The report postulates that the general reserve should be increased, within a range of 1.5-2% of net revenue expenditure when conditions permit, identifies the financing source for the £24 million planned assistance to the 2006/07 budget and brings into focus for the first time the £17 million agreed reimbursement to reserves in 2007/08 and the likely reserve position to 2009.

The Treasurer said the Committee might find it useful to be advised of the position with regard to reserves at Transport for London, the only comparable organisation in the GLA group. The general reserve was 2% and in additional there were substantial specific earmarked reserves, which equated to 16% of the revenue budget.

Members considered that it would be useful to have a separate reserve for use in the event of unforeseen events such as terrorist outrages as this would assist in dealing with the financial consequences in dealing with the initial response. The Treasurer advised that it would be appropriate to create such a reserve as part of the overall reserves with decisions on its use being made by the Finance Committee. There would need to be some consequential amendments made to the outturn report

Resolved –That

1. approval be given to the proposed policy of increasing the general reserve within a range of 1.5 – 2% of net revenue expenditure as and when conditions permit;
2. approval be given to the use of the 2005/06 underspend and other reserve adjustments to finalise the transfer to reserves (in paragraphs 13-21) as the basis for closing the 2005-06 accounts, subject to the provision of a specific part of the general reserves to be specifically earmarked for emergencies on the recommendation of the Finance Committee; and
3. it be noted that there are early predictions that there may be flexibility in the 2007/08 reserves totals to assist the revenue budget preparation.

137. Medium Term Financial Plan 2007/08 – 2009/10 – 2009/10 financial envelope

(Agenda item 7)

A report was submitted which provided an assessment of the financial envelope for 2007/08 and future years and clarifies how efficiency planning, problem/demand budgets, and the MetModernisation Programme (MMP) development projects/new initiatives are to be dealt with. The current financial projection indicates an excess of expenditure over income of £116.1m in 2007/08 and further projected budget shortfalls of £29.3m and £40.3m in 2008/09 and 2009/10 respectively. The next steps in the development of the 2007/08 Medium Term Financial Plan (MTFP) in accordance with the revised financial planning framework are set out in the report.

Resolved – That the budget projections for 2007/08 to 2009/10 as set out in Appendix 1 be noted.

138. Efficiency plan 2005/06

(Agenda item 8)

A report was submitted which sets out the outturn position against the Metropolitan Police Authority (MPA)/Metropolitan Police Service (MPS) Efficiency Plan for 2005/2006. Overall, the Home Office’s efficiency target has been exceeded by £27.7m. In reply to a question, the Committee was advised that the over-achievement of the target could be carried forward and be counted towards the 2006/07 targets.

Resolved – That the position be noted.

139. Finance Management Review

(Agenda item 9)

A report was submitted which advised the Committee of the Review of Financial Management which is being conducted by a joint team of MPS staff and Capgemini to ensure the financial management practices across the MPS are operating at the optimum level.

Further to paragraph 8, the Director of Business Development advised that further information concerning the “quick wins” would be submitted to the next meeting.

Resolved – That the information be noted and the development of a package of measures to bring further improvements in the operation of financial management in the MPS be supported.

140. Request of authority to dispose of New Malden police station to operator of licensed premises

(Agenda item 10)

A report was submitted which requested authority for the disposal of the former New Malden police station to an operator of licensed premises.

The Director of Property Services referred to a revised version of the exempt Appendix that had been circulated. In reply to questions, the Director of Property Services advised that a communication/consultation strategy was being finalised and it was hoped that this would be brought to the July meeting of the Committee.

Resolved –That approval be given to the unconditional sale of the MPA’s interest in the former New Malden police station for the sum of £1,135,000 to the highest bidder shown in the exempt Appendix 1.

141. Request of authority to dispose of Pickering House, Ealing

(Agenda item 11)

A report was submitted which requested authority for the disposal of the residential quarters at Pickering House, 271 Windmill Road, Ealing In connection with the general question of disposals the Chair said that the relevant MPA link member should be advised of every disposal.

In reply to a question, the Director of Property Services confirmed that the premises were vacant.

Resolved –That approval be given to the unconditional sale of the MPA’s freehold interest in Pickering House, 271 Windmill Road Ealing for the sum of £3,850,000 (three million eight hundred and fifty thousand pounds) to the highest bidder as shown in Exempt Appendix 1.

142. Request for authority to sell Turret House, Kingston

(Agenda item 12)

A report was submitted which requested authority for the disposal of residential quarters at Turret House, 40 Albany Park Road, Kingston.

Resolved –that approval be given to the unconditional sale of the MPA’s freehold interest in Turret House, Kingston for the sum of £2,720,000 (two million seven hundred and twenty thousand pounds) to the highest bidder shown in exempt Appendix 1.

Provision of custody centres – introduction and general remarks

The Estates Strategy report presented to the Finance Committee in February 2006 highlighted the progress that has been made by the MPS in resolving the accommodation needs relating to custody and criminal justice. A detailed custody business case report recommending the provision of custody centres in each London Borough to meet long-term custody needs was presented to the MPS investment Board and approved in February 2006. The need to provide further custody provision throughout the MPA estate to support MPS operations is widely accepted and funding has been included within the capital programme for 2006/07 and on to fund the first custody centre schemes.

In reply to questions on the overall programme, the Director of Property Services confirmed that there was provision for of all of the schemes to be decided at the meeting in the approved capital programme and therefore none were dependent upon the receipts from further sales.

In reply to questions, the Director of Property Services advised that a single storey approach had been chosen as it was more practical for the custody sergeant to manage. Opportunities had been taken to look at the joint use of cells with other agencies but it had been established that in practice this was not seen as a realistic option except in a limited number of cases. As part of the communication strategy details relating to the custody centres would be posted on the MPS website with the caveat that matters such as design were subject to change as these aspects were dealt with by the local authority as part of the planning process.

The Committee viewed boards that illustrated each of the proposed schemes. The Chair requested that the relevant MPA link members be notified of the committee’s decisions.

143. Redevelopment of land to the rear of Hayes Police Station to provide the future Hillingdon Custody Centre

(Agenda item 13)

This report requested approval to proceed with the development of a 30 cell custody centre on land to the rear of the Hayes police station site drawing funding from existing MTFP budget, to support the operational needs of Hillingdon Borough Operational Command Unit.

Resolved - That

1. approval be given to the proposal to develop a 30 cell custody centre on land to the rear of the Hayes police station site; and
2. approval be given to the appropriate tendering action including the production of the OJEU notices. The feasibility study anticipates an out turn cost inclusive of fees in the sum of £7.26M inclusive of prudent contingencies.

144. Development of the Leyton site to provide the Waltham Forest Custody Centre

(Agenda item 14)

This report requested approval to proceed with the development of a 30 cell custody centre on the cleared site in Leyton High Road, Waltham Forest, to support operational needs drawing funding from existing MTFP budgets.

Resolved - That

1. approval be given to the proposal to develop a 30 cell custody centre at the Leyton High Road site; and
2. approval be given to the appropriate tendering action including the production of the OJEU notices. The feasibility study anticipates an out turn cost inclusive of fees in the sum of £7.18M inclusive of prudent contingencies.

145. Redevelopment of Teddington Police Station to provide the future Kingston and Richmond Custody Centre

(Agenda item 15)

This report requested approval to proceed with the redevelopment of Teddington police station to provide a 30 cell custody centre drawing funding from existing MTFP budget, to support the operational needs of Kingston and Richmond Borough Operational Command Units.

Resolved - That

1. approval be given to the proposal to develop a 30 cell custody centre on the Teddington police station site to support Kingston and Richmond Borough Operational Command Units; and
2. approval be given to the appropriate tendering action including the production of the OJEU notices. The feasibility study anticipates an out turn cost inclusive of fees in the sum of £6.77M inclusive of prudent contingencies.

146. Redevelopment of Wimbledon Police Station to provide the Merton Custody Centre

(Agenda item 16)

This report requested authorisation to proceed with the development of a custody centre extension providing 30 cell custody centre on the site of Wimbledon police station, Merton to support operational needs drawing funding from existing MTFP budgets.

Elizabeth Howlett advised that as link member for Merton she had been made aware of the need for the new provision.

Resolved - That

1. approval be given to the proposal for the development of a custody centre extension providing 30 cells on the site of Wimbledon police station Merton; and
2. approval be given to the appropriate tendering action including the production of the OJEU notices. The feasibility study anticipates an out turn cost inclusive of fees in the sum of £6.64M inclusive of prudent contingencies.

147. Redevelopment of Wood Green Police Station to provide the Haringey Custody Centre and Patrol Base

(Agenda item 17)

This report requested approval to proceed with the development of a 40 cell custody centre and integral patrol base on the site of Wood Green police station Haringey to support operational needs drawing funding from existing MTFP budgets.

Resolved - That

1. approval be given to the proposal to develop a custody centre and integral patrol base at Wood Green, Haringey; and
2. approval be given to the appropriate tendering action including the production of the OJEU notices. The feasibility study anticipated an out turn cost inclusive of fees in the sum of £13.5M inclusive of prudent contingencies.

148. Routine Contracts Programme

(Agenda item 18)

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 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.

149. Sustainable procurement policy

(Agenda item 19)

No report submitted. Matter to be considered at the July meeting.

150. Exclusion of press and public

(Agenda item 20)

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 151 agenda item 21 exempt appendix to disposal of New Malden police station
The information was noted.

Minute 152 agenda item 22 – exempt Appendix to disposal of Pickering House, Ealing
The information was noted.

Minute 153 agenda item 23 – Exempt Appendix to disposal of Turret House Kingston
The information was noted.

Minute 154 agenda item 24 – exempt appendix to Routine contracts programme
The information was noted.

Minute 155 agenda item 25 – Outsourced contracts programme

Minute 156 agenda item 26 MetTime
The Committee considered reports by the Commissioner and the Chief Executive agreed to terminate the present contract

Minute 157 agenda item 27 - exempt minutes of the meeting held on 20 April 2006
Agreed and signed as a correct record.

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