Item 4 - Matters Arising and Actions List PDF 156KB

Finance and Policy Committee
Date:
25 November 2014
Item 4:
Actions List and use of Delegated Authority
This paper will be considered in public
1
Summary
1.1
This paper informs the Committee of progress against actions agreed at
previous meetings and the exercise of authority delegated to the Chairman of
the Committee, since the last meeting.
2
Recommendation
2.1
The Committee is asked to note the Actions List and use of Delegated
Authority.
List of appendices to this report:
Appendix 1 Actions List
Appendix 2: Use of delegated authority
List of Background Papers:
Minutes of previous meetings of the Committee
Contact Officer:
Number:
Email:
Howard Carter, General Counsel
020 3054 7832
[email protected]
1
Appendix 1
Finance and Policy Committee Action List (reported to the meeting on 25 November 2014)
Actions from the meeting held on 14 October 2014
Minute No.
Description
88/10/14
Benchmarking and Financial Planning at TfL
Members requested a paper to a future meeting setting out the current
efficiencies saving initiatives and the benchmarking activities (including
stretch targets) that contributed to these to be delivered over the current
Business Plan.
90/10/14
90/10/14
90/10/14
91/10/14
Project Monitoring – Project Approvals – Silvertown Tunnel
Members requested briefings on the proposals for the Silvertown Tunnel,
which was the subject of a public consultation, and the progress with
procuring the Automatic Train Control contract for the sub-surface railway.
Project Monitoring – Project Approvals – Police Oyster cards
Under the Fit for the Future Stations Programme, Members requested a
breakdown of the costs relating to producing and distributing Police Oyster
cards.
Project Monitoring – Project Approvals – step-free access
Information on the costs, civil engineering challenges and benchmarking
data for step-free access to Finsbury Park station would be provided to the
Rail and Underground Panel.
Licence Fee for Taxis Fitted with Digital Taxi Top Advertising
Members requested that the paper to be submitted to the Board include
information on the different means for taxi owners or operators to generate
supplementary income.
2
Action By
Target
Date
Status note
Steve Allen
January
2015
On Forward Plan.
Michéle Dix
and Mike
Brown
November
2014
Completed.
Mike Brown
November
2014
Information will be
provided ahead of
the next meeting.
Mike Brown
February
2015
On Rail and
Underground Panel
forward plan.
Leon Daniels
November
2014
Completed.
Minute No.
Description
Action By
92/10/14
iBus Contract Extension
A paper would be submitted to a future meeting providing:
Leon Daniels
• a breakdown of the financial information in the table under paragraph
5.1 in the paper, including the figures for the previous five years as
well as the proposed extension, and why it was considered to
represent value for money;
• a further management discussion with the Independent Investment
Programme Advisory Group (IIPAG) and a response to the issues that
had been raised by the IIPAG; and
• advice on whether extending the contract was consistent with public
procurement rules.
95/10/14
Supply of Data Communication Services and Support Contract
Extension – Internal Audit Review
Initial findings from the Internal Audit Review on Procurement Authority
controls would be submitted to the Committee. A paper would then be
submitted to the Audit and Assurance Committee, setting out the
investigation results and the proposed additional controls.
3
Howard
Carter
Target
Date
Status note
January
2015
On Forward Plan.
December
2014
An initial review
and management
response was seen
by the members of
the Committee. A
full report will be
submitted to the
Audit and
Assurance
Committee in
December 2014.
Actions from previous meetings
Minute No.
Description
59/11/12
Police Services Agreement with the British Transport Police Authority
The Committee would receive an update, in due course, on progress on
greater efficiencies and any progress on removing TfL’s indemnity to the
BTP Authority in respect of any claims arising out of the policing services.
89/11/13
48/06/14
48/06/14
48/06/14
Update on Planning Obligations – 2050 Infrastructure Plan
A paper would be submitted to a future meeting of the Committee on the
2050 Infrastructure Plan.
Action By
Target
Date
Status note
Mike Brown
January
2015
On Forward Plan.
Awaiting outcome
of BTP budget
discussions.
Michèle Dix
November
2014
Completed.
Considered by the
Board on 5
November 2014.
January
2015
On Forward Plan.
Operational and Financial Performance Report and Investment
Programme Report – Fourth Quarter, 2013/14 – Traffic Schemes
A paper seeking authority for further works as part of the cycling vision would Leon Daniels
be submitted to the Committee in January 2015 and to the Board in February
2015.
Operational and Financial Performance Report and Investment
Programme Report – Fourth Quarter, 2013/14 – Approvals Template
A template for Surface Transport’s future approval submissions would be
developed. The template would include a summary of the cost benefit
analysis and an overview of the predicted model effects of any scheme.
Operational and Financial Performance Report and Investment
Programme Report – Fourth Quarter, 2013/14 – Cycling Vision
The IIPAG would provide a note on its work to review the overall Cycling
Vision, in particular the Cycle Superhighways and the central network of
quietways.
4
Leon Daniels/ November
Howard
2014
Carter
Completed.
Steve Allen
Linked to the
review of the
cycling portfolio.
January
2015
Minute No.
Description
62/07/14
Independent Investment Programme Advisory Group – Annual Report
2013/14 – Telecommunications
Further information would be provided to Members on how TfL would
address the issues that the IIPAG had raised on telecommunications.
76/08/14
76/08/14
Northern Line Extension to Battersea – Conditions Precedent
A further paper would be submitted to the Committee and Board, prior to 31
March 2015, to confirm if the conditions precedent had been met.
Northern Line Extension to Battersea – Bank Station Comparison
In due course, the Committee would consider the differences between the
NLE and Bank Station Capacity Upgrade processes, including the
involvement of the IIPAG.
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Action By
Target
Date
Status note
Steve Allen
January
2015
On Forward Plan.
Mike Brown
March
2015
On Forward Plan.
Mike Brown
January
2015
On Forward Plan,
following
completion of
Assurance Review
in November 2014.
Exercise of Delegated Authority
By:
Chairman, Finance and Policy Committee
On:
27 October 2014
Subject:
Earls Court Joint Venture Funding Request
In accordance with the authority delegated from the Board, the Chairman of the
Finance and Policy Committee, in consultation with available members of the
Committee on 27 October 2014:
1
approved the investment limit for Phase 1 of the development at Earls Court, as
described in the paper 1. The investment is within the maximum approved
budget, as set by the Board and is being made in accordance with TfL’s usual
investment processes; and
2
noted that in its decision of 5 February 2014, the Board delegated to TfL
including Transport Trading Limited (TTL) and any other subsidiary (whether
existing presently or to be formed ) of TTL (and any of the directors of the
relevant company shall be authorised to act for and on behalf of that company)
(the Subsidiaries) and the Commissioner, Managing Director Finance,
Managing Director Rail and Underground and General Counsel (TfL Officers)
the authority to approve and finalise the terms (including the financial terms) of
all documentation required in relation to the creation, operation and
management of the joint venture with Capco and authorise the execution
(whether by deed or otherwise) on behalf of TfL or any Subsidiary (as
appropriate) of any documentation to be entered into in connection with the
completion (including, without limitation, all agreements, deeds, guarantees,
indemnities, announcements, notices, contracts, letters or other documents).
I confirm that I do not have any disclosable pecuniary interests in the this matter, and took
the decision in compliance with TfL’s Standing Orders.
____________________
Peter Anderson, Chairman, Finance and Policy Committee
1
The signed delegated authority sheet specifies the investment limit and the approved budget. This information is
exempt and is therefore not for publication to the press or public by virtue of paragraph 3 of Schedule 12A of the Local
Government Act 1972 in that it concerns information relating to the business affairs of TfL.
Supporting Information
1
Consultation
All members on the Finance and Policy Committee received a copy of supporting
information setting out the rationale for the investment. The persons present on a call
(10.30am – 11.15am) immediately prior to the decision being taken, were:
Members
Peter Anderson
Daniel Moylan
Sir John Armitt CBE
Brian Cooke
Angela Knight
Michael Liebreich
Chairman
Vice Chairman
Member
Member
Member
Member
Staff
Steve Allen
Howard Carter
Jonathan Cornelius
Graeme Craig
Henry Gervaise-Jones
Shamus Kenny
Managing Director, Finance
General Counsel
Senior Property Development Manager, Finance
Director of Commercial Development
Head of Finance, Commercial Development
Head of Secretariat
2
Related Authority
Board, 5 February 2014, minute 13/02/14, resolution paragraph 4.
The Board:
4
delegated to the Chairman of the Finance and Policy Committee (in consultation with
available members of the Committee) the authority to approve any investment
decisions and guarantees required within the maximum approved budget set out in
the supplemental paper on Part 2 of the agenda. Any such investment decisions and
guarantees to be taken in accordance with TfL’s usual investment processes;
3
Background Information provided and key issues considered by the
Chairman and Committee members
1
Information was provided on the Funding Notice issued by Earls Court Partnership
Limited (JV) to fund its capital requirements over the next two years. Its funding
advisors had recommended using additional equity rather than introducing third party
debt at this stage. The Funding Notice was issued on 14 October and TfL had until
12 November 2014 to confirm whether or not it wished to provide its pro-rata share of
the Funding Notice.
2
The Committee was updated on the progress of the planned development, including
that the London Borough of Hammersmith and Fulham had signed off on the
demolition of Earls Court 1 and 2. Members discussed the current funding
requirement, which would see the land developed into fully serviceable plots, and the
associated financial analysis. The investment would be issued to the contractors as
and when it was required.
27 October 2014 Finance and Policy Committee Chairman exercise of delegated authority
2
3
The Committee discussed the development, the current market and the quality of and
market interest in the Lille Square development and considered that the investment
was appropriate in this context.
4
Members commented on the importance of the Joint Venture appointing established
construction contractors with good track records for major developments. They also
recommended that initial discussions with the banks on funding the construction
phases through debt should be started as soon as possible.
[End]
27 October 2014 Finance and Policy Committee Chairman exercise of delegated authority
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Exercise of Delegated Authority
By:
Chairman, Finance and Policy Committee
On:
28 October 2014
Subject:
Supply of Data Communication Services and Support
Contract Extension
In accordance with authority delegated from the Board and the Finance and Policy
Committee, the Committee Chairman, in consultation with available members of the
Committee on 28 October 2014:
1
approved the proposed extension of up to 27 months of the Supply of Data
Communications Services and Support contract (both core services and projectspecific services) with Fujitsu Services Limited (the Extension), and granted
additional procurement authority (some of which has already been incurred) of
£149.6m 1; and
2
authorised:
(a) TfL Officers and Subsidiaries (as described in paragraph 3 below) to finalise
the terms of the Extension;
(b) the agreement and execution (whether by deed or otherwise on behalf of TfL
or any subsidiary (as appropriate)) of any documentation to be entered into
in connection with the Extension and any matters referred to in it (including,
without limitation, all agreements, deeds, guarantees, indemnities,
announcements, notices, contracts, certificates, letters or other documents);
and
(c) TfL Officers and Subsidiaries to do all such other things as they consider
necessary or desirable to facilitate the execution and implementation of the
Extension and the matters referred to in it.
3
The following Officers and Subsidiaries have authority:
(a)
TfL Officers: the Commissioner, Managing Director Finance, General
Counsel and Chief Finance Officer; and
(b)
Subsidiaries: Subsidiaries of TfL including Transport Trading Limited and
any other subsidiary (whether existing presently or to be formed) of
Transport Trading Limited and any directors of the relevant company shall
be authorised to act for and on behalf of the company.
I confirm that I do not have any disclosable pecuniary interests in the this matter, and took
the decision in compliance with TfL’s Standing Orders.
____________________
Peter Anderson, Chairman, Finance and Policy Committee
1
Total spend to 8 November 2014, £179.6m, less £84m Procurement Authority, plus the forecast spend of
£54m, being the sum of £22.5m base costs and the estimated £31.5m project spend = £149.6m
Supporting Information
1
Consultation
All members on the Finance and Policy Committee received a copy of supporting
information setting out the rationale for the extension and an Internal Audit Report and
Management Response in relation to the use of Procurement Authority and associated
controls. The persons present on a call (3.00pm – 3.45pm) immediately prior to the
decision being taken, or who responded to the papers, were:
Members
Peter Anderson
Daniel Moylan
Brian Cooke
Michael Liebreich
Baroness Grey-Thompson DBE
Chairman
Vice Chairman
Member
Member
Member (by email)
Staff
Steve Allen
Howard Carter
Colin Garland
Andrew Pollins
Steve Townsend
Shamus Kenny
Managing Director, Finance
General Counsel
Internal Audit
Interim Chief Finance Officer
Chief Information Officer, Finance
Head of Secretariat
2
Related Authority
Board, 24 September 2014, minute 66/09/14.
The Board noted the paper and:
1
delegated to the Finance and Policy Committee authority to approve the proposed
extension of the Supply of Data Communications Services and Support contract with
Fujitsu Services Limited, as described in the paper (the Extension), and to grant
additional procurement authority requiring the Board’s authority (some of which had
already been incurred);
2
authorised the TfL Officers and Subsidiaries (as described in paragraph 5) to finalise
the terms of the Extension;
3
authorised the agreement and execution (whether by deed or otherwise on behalf of
TfL or any subsidiary (as appropriate)) of any documentation to be entered into in
connection with the Extension and any matters referred to in it (including, without
limitation, all agreements, deeds, guarantees, indemnities, announcements, notices,
contracts, certificates, letters or other documents); and
4
authorised TfL Officers and Subsidiaries to do all such other things as they consider
necessary or desirable to facilitate the execution and implementation of the
Extension and the matters referred to in it.
5
The following Officers and Subsidiaries shall have delegated authority:
(a)
TfL Officers: the Commissioner, Managing Director Finance, General Counsel
and Chief Finance Officer; and
28 October 2014 Finance and Policy Committee Chairman exercise of delegated authority
2
(b)
Subsidiaries: Subsidiaries of TfL including Transport Trading Limited and any
other subsidiary (whether existing presently or to be formed) of Transport
Trading Limited and any directors of the relevant company shall be authorised
to act for and on behalf of the company.
Finance and Policy Committee, 14 October 2014, minute 75/10/14
Subject to the provision of additional information, the Committee delegated to its
Chairman, in consultation with available members of the Committee, authority to:
1
approve an extension of the Supply of Data Communications Services and Support
contract with Fujitsu Services Limited (the Extension);
2
grant additional procurement authority (some of which has already been incurred);
and
3
delegate authority to TfL Officers and Subsidiaries to finalise the terms of the
Extension and their execution and implementation.
3
Background Information provided and key issues considered by the
Chairman and Committee members
1
Information was provided on the history of the contract, the extensions culminating in
the current expiry date of 8 November 2014 and the rationale for a further extension
of the Agreement.
2
The proposed extension of the Agreement was required to ensure continuity of
critical services and to facilitate TfL’s wider Transforming IM delivery strategy and
delivery of the pan TfL Data Networks strategy. Under the proposed timeline, the
Networks service procurement was planned for issue in May 2015 and to take
approximately one year to complete. Following contract award further time was
required to transition to the new service provider. Therefore an extension for up to a
maximum of 27 months was requested to allow sufficient time for these activities to
be completed. Members requested that each aspect of the timeline be reviewed to
see if the 27 month period could be reduced.
3
A paper would be submitted to a future meeting of the Committee setting out the
Transforming IM delivery strategy and pan TfL Data Networks strategy. The paper
would demonstrate how TfL was looking to reduce the number and costs of IM
contracts across the organisation.
4
An Internal Audit report on the use of Procurement Authority was considered.
Management agreed with, and would immediately commence the progression of, the
actions from the report. Further audit work would be undertaken and a report would
be submitted to the Audit and Assurance Committee in due course.
[End]
28 October 2014 Finance and Policy Committee Chairman exercise of delegated authority
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