Agenda and minutes

Venue: Committee Room - 2nd Floor West Wing, Guildhall

Contact: John Cater
tel. no.: 020 7332 1426  Email: john.cater@cityoflondon.gov.uk

Items
No. Item

1.

Apologies

Minutes:

Apologies for absence were received from Rehana Ameer, Dominic Christian, Graeme Doshi-Smith, Gregory Lawrence, Paul Martinelli, Andrew McMurtrie, Deputy Robert Merrett, Susan Pearson, Deputy Henry Pollard, Ian Seaton, and Deputy James Thomson.

 

 

 ...  view the full minutes text for item 1.

2.

Members' Declarations under the Code of Conduct in respect of items on the agenda

Minutes:

There were no declarations of interest.

 ...  view the full minutes text for item 2.

3.

Minutes of the previous meeting

To agree the public minutes of the meeting held on 10th December 2019.

 

To Follow

 ...  view the full agenda text for item 3.

Minutes:

RESOLVED – That the public minutes of the meeting held on 10th December 2019 be approved as an accurate record.

 

 ...  view the full minutes text for item 3.

4.

Finance Committee's Forward Plan pdf icon PDF 59 KB

Report of the Chamberlain.

 ...  view the full agenda text for item 4.

Minutes:

The Committee received a Report of the Chamberlain which set out the forward plan of the Committee.

 

RESOLVED – That the Committee notes the report.

 ...  view the full minutes text for item 4.

5.

Report of the Work of the Sub-Committees - public issues pdf icon PDF 47 KB

Report of the Town Clerk.

 ...  view the full agenda text for item 5.

Minutes:

The Committee received a report of the Town Clerk which advised Members of the key discussions which had taken place during recent meetings of the Committee’s Sub-Committees.

 

RESOLVED – That the Committee notes the Report.

 ...  view the full minutes text for item 5.

6.

Operational Services Budget Estimates and high-level summary Business Plan 2020/21 pdf icon PDF 199 KB

Report of the Chamberlain.

 ...  view the full agenda text for item 6.

Additional documents:

Minutes:

The Committee considered a Report of the Chamberlain concerning budget estimates and the high-level summary Business Plan.

 

The Chamberlain opened the discussion by remarking that officers had responded to a Member request to present details of the revenue budget alongside the high-level departmental business plans. For the first time, this Report brought both these aspects together. The Chairman welcomed the Report but asked that, after taking into account any one-off factors, next year’s iteration includes more narrative about the underlying changes in the budget. The Deputy Chairman also encouraged officers to incorporate more narrative on the capital requirements.

 

A Member highlighted some of the feedback from the staff survey, namely, the 27% of respondents who believe that the Corporation handled change well, and the 24% of respondents who believe that the staff survey responses will be taken seriously. The Chamberlain responded that, whilst there was room for improvement, the context should be kept in mind; as thoughts turned to the Fundamental Review, morale, across the organisation had been dented.  It was anticipated that with the FR process maturing alongside an increase to internal communications, morale and confidence across the workforce would improve. The Chamberlain asked Members to hold fire for now and review the feedback after the next survey in 2021.

 

In response to a Member asking about the rate of depreciation of the Old Bailey complex, the Chamberlain responded that this was directly due to the increased amount (£884,000) of net expenditure being allocated for repairs and maintenance.      

 

A Member asked whether, given the Corporation’s continued commitment to driving efficiencies, BHE should also be subject to efficiency targets. The Chairman responded that Members and officers should tread carefully given the charitable aims of BHE. There was scope, however, to look at whether efficiencies could be found in the CGU

 ...  view the full minutes text for item 6.

7.

Q3 Quarterly Budget monitoring pdf icon PDF 154 KB

Report of the Chamberlain.

 ...  view the full agenda text for item 7.

Additional documents:

Minutes:

The Committee received a Report of the Chamberlain concerning revenue budget monitoring.

 

Members noted the realignment of the Property Investment Income budgets and asked that they be kept regularly abreast of the impact of this realignment, particularly given the uncertain outlook, post-Brexit, for the commercial real estate sector over the medium term.

 

A Member emphasised that, whilst an increase to the frequency of property disposals would provide a perhaps logical and welcome benefit to the Corporation’s financial position in the short term, this would, in addition, adversely impact the overall level of rental income in the longer term; this should be kept in mind when the Property Investment Income budget was being considered again in the future.

 

Highlighting the Barbican Centre’s adverse variance (£1.4m), the Chairman assured Members that he and fellow Members of the Efficiency & Performance Sub-Committee had recently emphasised the importance to the Managing Director of the Barbican Centre and his senior team of getting the Centre’s finances in good order before financial year end and, indeed, over the medium term.

 

RESOLVED – That the Committee notes the report.   

 

    

 ...  view the full minutes text for item 7.

8.

Provision for Bad and Doubtful Debts - Proposed Methodology 2019/20 pdf icon PDF 74 KB

Report of the Chamberlain.

 ...  view the full agenda text for item 8.

Additional documents:

Minutes:

The Committee received a Report of the Chamberlain concerning the provision provided for bad and doubtful debts.

 

RESOLVED – That the Committee approved the following:

 

The Corporation to adopt the proposed approach (as outlined below) by which debt will be analysed and provisions determined for the year ending 31st March 2020, namely:

 

·         review aged debt report at 31st March with debtor balances analysed into

aged brackets;

·         examine debt identified as bad or doubtful by Comptrollers;

·         evaluate significant debts on individual customer basis;

·         make 100% provision for debts, relating to former tenants that are not in

a formal repayment; and

·         apply a provision matrix for remaining debt with varying percentages

based on historical loss rates adjusted for current knowledge, and for

City Fund debt only also adjusted to reflect relevant future economic

factors.

 ...  view the full minutes text for item 8.

9.

Risk Management - Top Risks pdf icon PDF 101 KB

Report of the Chamberlain.

 ...  view the full agenda text for item 9.

Minutes:

The Committee received a Report of the Chamberlain which provided updates regarding the top risks within the Departmental Risk Register.

 

Officers reassured Members that the Information Security Risk would be the subject of a thorough discussion at the next meeting of the Digital Services Sub-Committee on 24th January.

 

RESOLVED – That the Committee notes the report.

 ...  view the full minutes text for item 9.

10.

City Procurement Quarterly Progress Report - Quarter 3 2019-2020 pdf icon PDF 237 KB

Report of the Chamberlain

 ...  view the full agenda text for item 10.

Minutes:

The Committee received a Report of the Chamberlain concerning the work of City Procurement, including key performance indicators and areas of progress.

 

Whilst highlighting the positive direction of travel with efforts to reduce waivers, the Commercial Director noted that further improvement was required; a thorough discussion would take place at the next meeting of the Procurement Sub-Committee (6th February). The Chairman, whilst acknowledging that the waiver process may need to be reviewed to assist officers, encouraged the Procurement team to remain tough, particularly when faced with non-compliant waivers, of which there remained too many.

 

In response to Members highlighting the Barbican Centre’s high number of non-compliant waivers, both the Commercial Director and the Chairman of the Procurement Sub-Committee confirmed that the Managing Director of the Barbican Centre was working with Procurement to reduce this number, and would be attending a meeting of the Sub-Committee to outline the Barbican’s actions in this area.

 

RESOLVED – That the Committee notes the report.      

 ...  view the full minutes text for item 10.

11.

Central Contingencies pdf icon PDF 63 KB

Report of the Chamberlain.

 ...  view the full agenda text for item 11.

Minutes:

The Committee considered a report of the Chamberlain which provided Members with information regarding the current balance of the Finance Committee Contingency Funds for the current year.

 

The Chairman informed Members that he had asked the Central Grants Unit to look at the practicalities of the Corporation making a £15,000 donation, via Finance Committee’s International Disaster Fund, to support efforts to respond to the recent Australian bushfires. This sum would be in addition to the Hospitality Working Party’s recent agreement to host a fundraising dinner for the Australian High Commission in March (estimated cost: £15,000), it was also suggested that formal confirmation of the proposed donation would be announced at the Dinner.

 

A Member pointed out that if the £15,000 was donated, without further calls on the Fund, £35,000 would be left over by the financial year end. The Chairman suggested that if any monies were left unallocated by 31st March these should be carried forward into FY 2020/21. 

 

Separately, the Chairman informed Members that he had been approached by officers to approve the allocation of up to £400,002 from the 2019 City Fund Finance Committee Contingency Fund to facilitate a leaseback arrangement for Wood Street police station. This sum would cover additional rent payable of £66,667 per calendar month for a period of up to 6 months from 10th December 2020, should the need arise.

 

Members endorsed the Chairman’s proposal that the sum shall be carried forward to the 2020 financial year and ringfenced for draw-down for this specific purpose during the 2020/21 and 2021/22 financial years as appropriate. Any unspent funds will not be added back to the general Finance Contingency Fund.

 

RESOLVED – that the Committee notes the report

 

 ...  view the full minutes text for item 11.

12.

Decisions taken under delegated authority and urgency procedures pdf icon PDF 53 KB

Report of the Town Clerk.

 ...  view the full agenda text for item 12.

Minutes:

The Committee considered a report of the Town Clerk which provided information of the action taken by the Town Clerk since the last meeting of the Committee, in consultation with the Chairman and Deputy Chairman, in accordance with Standing Order 41(b). The decision related to the International Disaster Fund donation to the Red Cross to support the Rohingya people.

 

RESOLVED – That the Committee notes the report.

 

 

 ...  view the full minutes text for item 12.

12a

Annual On-Street Parking Accounts 2018/19 and Related Funding of Highway Improvements and Schemes

Minutes:

The Committee received a Report of the Chamberlain concerning the Annual On-Street Parking Accounts 2018/19.

 

RESOLVED – That the Committee notes the report.

 ...  view the full minutes text for item 12a

13.

Questions on matters relating to the work of the Committee

Minutes:

There were no questions.

 

 ...  view the full minutes text for item 13.

14.

Any Other Business that the Chairman considers urgent

Minutes:

There were no urgent items.

 

 ...  view the full minutes text for item 14.

15.

Exclusion of the Public

MOTION - That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part I of Schedule 12A of the Local Government Act.

 ...  view the full agenda text for item 15.

Minutes:

RESOLVED - That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part I of Schedule 12A of the Local Government Act.

 

 

 ...  view the full minutes text for item 15.

16.

Non-public minutes of the previous meeting

To agree the non-public minutes of the meeting held on 10th December 2019.

 

To Follow.

 ...  view the full agenda text for item 16.

Minutes:

The non-public minutes of the meeting held on 10th December 2019 were approved as an accurate record.

 ...  view the full minutes text for item 16.

17.

Report of the work of the Sub-Committees - non-public issues

Report of the Town Clerk.

 ...  view the full agenda text for item 17.

Minutes:

The Committee noted a report of the Town Clerk which advised Members of the key discussions which had taken place during non-public session at recent meetings of the Committee’s Sub-Committees.

 

RESOLVED – That the Committee notes the Report

 

 ...  view the full minutes text for item 17.

18.

City Fund Estate - Annual Update & Strategy for 2020

Report of the City Surveyor.

 ...  view the full agenda text for item 18.

Minutes:

The Committee received a Report of the City Surveyor concerning the City Fund Estate.

 

RESOLVED – That the Committee notes the report.

 

 

 

 

 ...  view the full minutes text for item 18.

19.

City's Estate - Annual Update and Strategy for 2020

Report of the City Surveyor.

 ...  view the full agenda text for item 19.

Minutes:

The Committee received a Report of the City Surveyor concerning the City’s Estate.

 

RESOLVED – That the Committee notes the report.

 

 ...  view the full minutes text for item 19.

20.

Strategic Property Estate (City Fund & City's Estate) -Annual Update & Strategy for 2020

Report of the City Surveyor.

 ...  view the full agenda text for item 20.

Minutes:

The Committee received a Report of the City Surveyor concerning the Strategic Property Estate (SPE).

 

RESOLVED – That the Committee notes the report.

 

 ...  view the full minutes text for item 20.

21.

Bridge House Estates - Annual Update and Strategy for 2020

Report of the City Surveyor.

 ...  view the full agenda text for item 21.

Minutes:

The Committee received a Report of the City Surveyor concerning the Bridge House Estates.

 

RESOLVED – That the Committee notes the report.

 

 ...  view the full minutes text for item 21.

22.

City's Estate: The Grafton Site - Development Agreement surrender of existing leases and grant of new 250 year Ground Lease

Report of the city Surveyor.

 ...  view the full agenda text for item 22.

Minutes:

The Committee considered a Report of the City Surveyor concerning the Grafton Site.

 

 

 ...  view the full minutes text for item 22.

23.

Bridge House Estates: Rennie Garden, Blackfriars Road SE1 - Renovation Works

Report of the City Surveyor.

 ...  view the full agenda text for item 23.

Minutes:

The Committee received a Report of the City Surveyor concerning Rennie Garden.

 

 ...  view the full minutes text for item 23.

24.

Non-public decisions taken under delegated authority and urgency procedures

Report of the Town Clerk.

 ...  view the full agenda text for item 24.

Minutes:

The Committee noted a report of the Town Clerk detailing non-public decisions taken under delegated authority and/or urgency procedures since the last meeting.

 ...  view the full minutes text for item 24.

25.

Contingencies - non-public appendix

Minutes:

26.

Non-public questions on matters relating to the work of the Committee

Minutes:

There were no non-public questions relating to the work of the Committee.

 ...  view the full minutes text for item 26.

27.

Any Other Business that the Chairman considers urgent and which the Committee agree should be considered whilst the public are excluded

Minutes:

There were no items of urgent business.

 ...  view the full minutes text for item 27.