Minutes

Minutes of the meeting of the Finance Committee held on 3 May 2007 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Richard Sumray (Deputy Chair, in the Chair for agenda items 1 to 3)
• Reshard Auladin
• Aneeta Prem
• Rachel Whittaker

MPA officers

• Catherine Crawford (Chief Executive)
• Ken Hunt (Treasurer)
• Peter Tickner (Director of Internal Audit)
• Ken Gort (Assistant Director of Internal Audit)
• John Crompton (Committee Services)

MPS officers

• Sharon Burd, (Acting Director of Resources)
• Simon Hart (Acting Director of Finance Services)
• Karim Mahamdallie (Director of Business Support)
• Paul Stock (Director of Strategic Finance)
• Alan Croney (Director of Property Services)
• Patrick Phillips (Deputy Director of Information)
• Anthony Doyle (Director of Procurement Services)
• Deputy Assistant Commissioner Paddick (MOPI) item 13
• Dick Fedorcio (Director of Public Affairs) item 23
• Paul Daly (Director of Exchequer Services) item 6

115. Apologies for absence

(Agenda item 1)

Apologies for absence were received from Graham Tope (Chair), Richard Barnes, Elizabeth Howlett and Bob Neill

116. Declarations of interests

(Agenda item 2)

There were none.

117. Minutes of the meeting held on 15 February 2007

(Agenda item 3)

Resolved - that the minutes of the meeting held on 15 February 2007 be agreed and signed as a correct record.

118. Revenue and capital budget monitoring 2006/07- period 11

(Agenda item 4)

This report provided an update on the revenue and capital budget monitoring position for 2006/07 at period 11 (to the end of February). The revenue budget is forecast to overspend by £4.9m (0.2% of budget), which includes £19.4m of estimated additional costs related to Operations Overt/Overamp. The underlying forecast underspend excluding Operations Overt/Overamp is £14.5m (0.5% of budget). The capital programme as at period 11 shows year to date total expenditure of £134m. This total represents 57.3% of the revised budget. The forecast for the year of £168m is £66m below the revised budget of £234m principally due to the re-phasing of project expenditure into future years.

In reply to questions, the Director of Business Support advised that the early indications were that there would be no major change to the overall budget position set out in the report between periods 11 and 12.

Members referred to the comment in paragraph 30 on the slippages in savings in the Counter Terrorism Command and asked whether the budget for next year had been amended. The Chief Executive said that there were some wider funding issues and it might be more appropriate for the report to be submitted to the Co-ordination and Policing Committee. Members also asked for more information to be provided on the overspend on medical examiner fees referred to in the same paragraph.

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

119. Medium Term Financial Plan 2008/09 – 2010/11 Financial Envelope

(Agenda item 5)

A report was submitted which updated the Committee on the latest position on the 2007/08 government grant settlement.

Resolved – That

1. the initial budget projections for 2008/09 to 20010/11 as set out in this report be noted and supported; and
2. the ongoing work in support of balancing the 2008/09 budget be noted.

120. Police Property Act Fund Annual Accounts

(Agenda item 6)

This report provided a summary of the 2005/06 annual accounts; the 2006/07 grant budget outturn and proposals for the allocation of the 2007/08 grant budget.

The Director of Exchequer Services advised that since the report was written Sutton had now spent its allocation. In the case of the other boroughs where there had been no expenditure and explanations had been received as to why this was the case, confirmation was given that the monies would be used in the new financial year.

(The changes are reflected in a revised version of appendices 2 to 4, which are appended to the minutes.)

The Chair asked for more information on the allocation for the London wide allocation. Members considered that there may be other Operational Command Units, for example the Royal Parks, which might be able to make appropriate use of these funds. The Director of Exchequer Services agreed to consider this suggestion.

Resolved – That

1. the report on the 2005-06 annual accounts for the Police Property Act Fund be noted;
2. the outturn of the 2006-07 grants budget be noted as amended; and
3. the proposals for 2007/08 as set out in paragraph 13 be agreed.

121. Estates update

(Agenda item 7)

This report advised the Committee on the latest information on estate and property services matters.

Integrated Prosecution Teams In reply to questions from members the Director of Property Services confirmed that the business cases would be produced by Territorial Policing.

Resolved – That

1. the information be noted;
2. the business case for Integrated Prosecution Teams be presented to the Committee at the first opportunity.

122. Request for authority to dispose of surplus site in Richmond

(Agenda item 8)

A report was submitted which requested authority for the disposal of the former residential quarters known as 361-367A St. Margarets Rd, Richmond upon the terms and conditions outlined in the report.

Aneeta Prem, estate portfolio member pointed out that contrary to the agreed protocol this matter had not been considered by the Estate Oversight Group. She would request that the matter be deferred so that it could be given proper consideration by the Oversight Group.

The Director of Property Services apologised for the omission and said that in the circumstances he wished to withdraw this report and the linked exempt appendix so that they could be considered by the Estate Oversight Group.

Resolved - That the matter be deferred for consideration by the Estate Oversight Group.

123. Acquisition of a combined custody centre and patrol base for Barking and Dagenham BOCU

(Agenda item 9)

A report was submitted which proposed the provision of a combined custody centre and patrol base for the Borough of Barking & Dagenham through the leasehold acquisition of a new development detailed in a linked Exempt Appendix. The acquisition supports the strategic context of the MPA approved Estate Strategic Plan and meets the operational priorities of the MPS Management Board around custody and patrol. It is aligned to the Territorial Policing model for the centralisation of borough custody and patrolling and forms a key strategic driver of the estate modernisation programme for Barking and Dagenham Asset Management Plan. A financial analysis was provided in the Exempt Appendix. All costs have been included in the current revenue budget and capital programme.

Chief Superintendent Tony Eastaugh, the Borough Commander for Barking and Dagenham attended for consideration of this item. In response to a question from a member, the Chief Superintendent confirmed that Len Duvall, the MPA borough link member, was satisfied with the proposal.

The Committee requested that all future patrol base reports should contain specific reference to the MPA link member’s view on the proposal.

Resolved – That

1. approval be given to the leased acquisition of a new warehouse development on the financial terms and at the location detailed in the Exempt Appendix 1. The land and buildings to provide a combined custody centre and patrol base to the east of London for use by Barking & Dagenham Borough Operational Command Unit (BOCU).
2. approval be given to the release of funding from the approved capital programme for estimated contract works and professional fees in connection with the required fit out works and acquisition costs as provided in exempt Appendix 1.
3. it be noted that the acquisition does not determine the future of other police buildings in this BOCU but that it forms a step change to overall modernisation. The existing level of front counter service will remain unaffected with any future estate changes for the BOCU subject to further approval and stakeholder consultation.
4. it be noted and approved that the base build specification, to be provided by the developer, is subject to final negotiation. Changes to the agreed specification will alter the final fit out cost by an anticipated +/- 5%. It is intended that this adjustment be made under existing delegated authority and be subsequently advised to the MPA through the Estates Oversight Group.
5. To note the proposed consultation process and the continuing communication strategy.

124. Property procurement strategy for the delivery of construction projects and associated services

(Agenda item 10)

A report was submitted which sets out the procurement strategy for the delivery of construction projects by Property Services included within the capital programme. It sought approval of this strategy together with approval to use the South East England Centre of Excellence (SECE) Framework Agreement for significant construction works and also to commence the OJEU process (issue OJEU notices and Invitations to Tender (ITTs)) to commence procurement action for supporting services. The proposals do not commit the MPS/MPA to any expenditure. They replace existing procurement methods and establish a structure through which the MPS can ensure that contracts are let in an efficient and lawful manner. The SECE Framework Arrangement is available to use immediately and is available for four years. The additional frameworks are expected to run from January 2008 to January 2012.

In reply to a question the Director of Procurement advised that he would not feel that entering into this Framework Agreement would preclude the Authority from entering into a specifically London Agreement if one were to be established as the various Frameworks were established under the same centrally set principles.

Resolved – That

1. approval be given to the outline strategy and subsequent procurement procedures, namely:
   1. The utilisation of the SECE Major Works Framework Arrangements for major construction works over £1,000,000, and authorise the MPA Chief Executive to enter into a Partnering Agreement with Hampshire County Council (Lead Authority for SECE). (Estimated total value of projects between £20m pa and £120m pa).
   2. The commencement of the OJEU process for setting up Framework Arrangements for Employer’s Agents for all construction projects. (Estimated total value of contracts between £1m pa and £8m pa).
   3. The commencement of the OJEU process for setting up Framework Arrangements for construction projects for values up to £1,000,000. (Estimated total value of contracts between £6m pa and £20m pa).
   4. The commencement of the OJEU process for design and feasibility consultants. (Estimated total value of contracts between £1m pa and £8m pa); and
2. it be noted that this report does not seek approval to let any contracts or commit to any expenditure. Further submissions will be made to members seeking approval at individual contract committal stage.

125. Technical Procurement Framework

(Agenda item 11)

A report was presented which proposed the establishment of a Technology Procurement Framework. The scope of the framework is to cover the technology required to fit out buildings, in particular for electronic security equipment such as CCTV, access control and alarms. The need for suppliers to co-operate in Property Services commercial arrangements will be a key feature. The framework approach chosen is similar to the Development Services Framework set up by the Directorate of Information. The framework does not commit the MPS to any expenditure. It replaces existing procurement methods and establishes a structure through which the MPS can ensure that contracts for the fit out of buildings are let in an efficient, lawful and secure manner. The framework is expected to run from November 2007 to November 2011. The maximum value for all contracts issued during the four year Framework life span is set at £34.3m. The report sought authority to issue an OJEU notice and ITT for participation in the framework.

Resolved – That

1. approval be given to the issue of an OJEU notice and ITT to identify suitable companies to be considered for appointment as participants in the Framework; and
2. it be noted that a further report will be submitted to the Committee seeking approval to award contracts for framework membership

126. Re-launching Project METAFOR

(Agenda item 12)

A report was submitted which outlined the reasons why project METAFOR has been re-launched and describes the approach which aims to secure a successful deployment of the product required by the MPS to realise full business benefits by the Directorate of Forensic Services, Commercial Services, Specialist Operations, Territorial Policing, Central Operations, Operational Evidential Services and Specialist Crime Directorate.

Resolved – That authorisation be given for METAFOR to enter a procurement phase.

127. Funding for central MOPI team for the financial year 2007/08

(Agenda item 13)

This report advised members of the business case, which was approved by the MPS Investment Board on the 19 February 2007. The business case was submitted to fund a Management of Policing Information (MoPI) Programme Team set up in response to a statutory responsibility mandated by the Home Secretary under delegated powers from Parliament. The aim of the team is to put in place a full programme to implement changes to ensure compliance with MoPI guidelines by December 2010. This large and complex programme will be undertaken in accordance to a costed plan to be approved by the MPS Investment Board in September 2007. This decision will be based on a full MoPI Programme business case to be prepared by the MoPI team. The case sought funding of £4.621 million for the financial year 2007/08.

Deputy Assistant Commissioner Paddick attended for consideration of this item.

Resolved – That it be noted that on the 19 February the MPS Investment Board approved funding of the MoPI Programme team for the financial year 2007/08.

128. Routine contracts

(Agenda item 14)

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.

129. 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 3 and 7 of Schedule 12A to the above Act.

Summary of decisions made on exempt items

Minute 130 agenda item 16 – Exempt appendices to estates update
Information noted.

Minute 131 agenda item 17 – Exempt appendix to disposal of site in Richmond
Deferred, see under minute 121.

Minute 132 agenda item 18 – Exempt appendix to acquisition of a combined custody centre and patrol base for Barking and Dagenham BOCU
Information noted.

Minute 133 agenda item 19 – Central London Accommodation Strategy
No report submitted.

Minute 134 agenda item 20 – Exempt appendices to Relaunching Project Metafor
Information noted

Minute 135 agenda item 21 - Exempt appendix to routine contracts
Information noted.

Minute 136 agenda item 22 – Outsource Programme
Status of the Programme noted.

Minute 137 agenda item 23 - Supply and delivery of a media planning and buying service for Human Resources and the Directorate of Public Affairs
Recommendations to the award of the contract to Mediacom were agreed.

Minute 138 agenda items 24a and 24b - Procurement for CRIMINT plus

Minute 139 agenda item 25 - Recovery of lost or stolen motor vehicles

Minute 140 agenda item 26 – Exempt minutes of the meeting held on 15 February 2007.
Agreed and signed as a correct record.

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