The package was presented to First Minster Peter Robinson and Deputy First Minister Martin McGuinness.
He said he had met the Policing Board Chairman and Northern Ireland Office officials to seek further explanation on some of the issues of concern.
He welcomed the clarification he had received and said he was encouraged by this progress.
Mr Baggott said it was a complex settlement and would require further discussions between the PSNI and the Policing Board over the next few days.
He added that the PSNI was totally committed to providing the service that the community deserved and expected.
