MPA Estate strategy review

Report: 08
Date: 23 October 2008
By: the Chief Executive and the Treasurer and Director of Resources on behalf of the Commissioner

Summary

It is essential that the real estate facilities of the MPA meet operational policing requirements; providing appropriate fit for purpose accommodation across London.

In 2004 the Authority and Service published a joint estates strategy entitled “Building Towards the Safest City” this covered the period 2003 – 2008 and provided an overarching strategy for exiting inefficient and antiquated buildings, and replacing them with an estate fit for purpose.
This was followed by the MPA Residential Strategy in February 2006 and the MPA/MPS Estates Strategic Plan in December 2006.

The Estates Strategic Plan was subsequently updated and presented to the MPA in September 2007. In supporting the Plan, the MPA approved the implementation of a Borough wide Consultation Programme in regard to the Borough Based Territorial Policing (TP/TPHQ) Estate, to provide local communities and those with an interest in policing matters the opportunity to comment on proposals in regard to the direct public/citizen facing estate.

Following a review of the feedback received from the public consultation and a further review of the Estate Strategy in response to a pledge by the Deputy Mayor for Policing, this report updates members on the key strands of the Estate Strategic Plan and seeks support to the direction that is proposed moving forward.

A. Recommendations

Members are asked to:

1. Note and support the current MPA/MPS Estate Strategic Plan and related specific Asset Management Plans; the key objectives of the Plan and basis of the estates strategy that has been adopted with reference to the three distinct elements of the estate; public/citizen facing; non-public operational and residential.

2. Agree that an MPA member led panel - supported by MPA officers and operational and professional advice from the MPS - updates the current Estates Strategy and Estates Strategic Plan to provide clarity between the Strategy and delivery of the estate modernisation programme for presentation to the Authority in Spring 2009.

3. Agree that a member led panel (supported by officers from the MPA and MPS) lead on the development of a revised Consultation Strategy in regard to the public/citizen facing elements of the estate; providing direction in regard to the consultation process and the timing of consultation on a Borough-by-Borough basis. Note that during this process the safer neighbourhood programme, and those projects that have previously been approved by the MPA, within the front counter programme, patrol base programme and Borough Based custody centres Programme and work in relation to the non-public operational estate will continue. There will be no further disposals of properties that support the public/citizen facing estate at this time.

4. Note the current estate strategy in regard to the non-public operational estate and support the ongoing delivery of the asset management plans supporting this part of the strategy, within current funding envelopes, and subject to the statutory town planning and Building Control/Local Authority Requirements.

5. Note the current estate strategy in regard to the residential estate; support the ongoing delivery of the asset management plans supporting this part of the strategy, and support the steps being taken by the MPS to sustain the MPS’s position as an employer of choice. Note the role of Property Zone and support the ongoing development of this facility for MPS officers and staff.

6. Agree that in accordance with the agreed MPA/MPS Estates Strategy, funds released from the disposal of surplus assets or assets that are no longer fit for use are regarded as a corporate resource and used to support the overall capital programme and in particular the modernisation of the estate.

B. Supporting information

1. It is essential that the real estate assets of the Metropolitan Police Authority (MPA) are fit for purpose in meeting the operational policing needs of the Metropolitan Police Service (MPS). This includes the provision of facilities for Borough based policing functions including Safer Neighbourhood facilities, public front counter / contact facilities, patrolling facilities and facilities for detainees, as well as specialist facilities, storage and training accommodation for pan - London operational teams.

2. The operational portfolio includes a wide variety of properties ranging from offices, police stations, training facilities, warehouses, forensic facilities, car pounds, stabling facilities and canine and equine training facilities, helicopter bases as well as covert requirements.

3. To ensure suitable accommodation is provided to meet policing needs and support local communities of London, the Authority and Service published a joint estates strategy in 2004 entitled “Building Towards the Safest City”. This covered the period 2003 – 2008 and provided an overarching strategy for exiting inefficient and antiquated buildings, and replacing them with an estate fit for purpose.

4. In December 2006 the Authority approved the Estates Strategic Plan (ESP). This built on the principles of “Building Towards a Safer City – 2003-08”, and was based on the principles of maximising the operational effectiveness of properties occupied through the improved utilisation of buildings; the provision of flexible / easily adaptable accommodation and through minimising occupational costs. This approach addresses a number of reports on the previous shortcomings of the UK Police estate more generally; that facilities have limited flexibility, are not fit for purpose, and are poorly positioned to reflect population / community needs and future strategic changes. The ESP was last updated and approved in September 2007. The ESP is subject to annual review and update, to reflect changes in strategic direction and the implementation and development of the estates strategy.

5. Whilst the ESP reflects the overarching estates strategy and the framework that has been adopted, to deliver the estate modernisation programme, individual Asset Management Plans (AMPs) have been developed for specific buildings or groups of buildings / properties to support specific Business Groups or functions at the “next level down”. Following the principles of good asset management practice, the AMPs (alongside the ESP) provide a framework within which the MPA/MPS will plan to modernise facilities to meet current and future operational requirements whilst also addressing sub-standard accommodation and compliance issues across the current aging MPS estate. Underpinning this strategy is the mandate that no operational policing facility or support based facility will be closed until a suitable alternative has been identified and is operational.

6. In addition to the Estates Strategy and ESP, a separate public document ‘Property for Policing – Spring 2007’, which related to the public-facing estate was also produced. The MPA previously supported this step to differentiate the public and non-public elements of the estate.

7. In 2002, the MPA provided accommodation for 38,000 people - by 2008 this number had increased to 52,000. The estate has increased to accommodate growth, but through good asset management practice, the more effective use of space and co-location of functions, the total number of operational and support based facilities have reduced.

8. The MPA’s operational estate currently includes 143 Police Stations (excluding Safer Neighbourhood bases with front counters); 166 Safer Neighbourhood bases (29 with front counters, 37 with contact points and a further 103 in construction or design or to be acquired) and 305 sites at a value in region of £1.35bn. A further 1,020 residential flats and houses (including 350 let to housing associations) are valued in the region of £245m.

9. In spite of the steps that have been undertaken in the modernisation the estate, through

• The implementation of Private Finance Initiatives (South London Specialist Training Centre;
• Four South London Borough Policing facilities);
• Quasi public-private partnerships (Empress State), and
• More traditional acquisition / build projects (Enfield patrol base / various office facilities / Safer Neighbourhood programme),

much of the estate is unsuitable for operational purposes. Over 30% of the estate predating 1935, and under funded in estate terms on both the capital and revenue accounts of the MPA.

10. Over 760 buildings were transferred to the MPA in 2000, most of which were in poor condition with no specific funding to address legacy maintenance issues. The historic approach, based on the provision of “large civic” buildings, and no associated asset management plans has left the MPA with a challenging legacy. In 2008, the revenue maintenance backlog (essential items only) stands at £120m – this excludes cyclical items over more than a year. In terms of capital investment, there is a reinvestment shortfall of £50m per annum. The core MPS Estate Revenue Budget is £190m p.a (including PFI costs) and net of income.

11. The MPA/MPS real estate assets fall into three distinct elements; public/citizen facing; non-public operational and residential. It is essential that the welfare of both officers and staff and those using the MPA estate welfare is at the fore, and that the facilities provided are both compliant and of a good standard in estate terms. Most of the older estate does not meet such standards.

Public/Citizen Facing Operational Estate

12. Citizen Focus and Safer Neighbourhoods are key priorities for the MPS. The provision of suitable accommodation to meet these needs and ensure that the needs of individuals and communities are given due consideration are of fundamental importance in addressing the Borough based, public citizen facing facilities.

13. Responsibility for Borough based operations lies within the Territorial Policing (TP/TPHQ) where the operational structure is configured on a Borough by Borough basis. The operational functions of each Borough are based on public interface points including: front counters; drop-in facilities and Safer Neighbourhood contact points. Borough policing teams hold/attend numerous public meetings as well as attending community events to broaden networks and community involvement. Access and public interface includes contact by internet and telephone along with ward based Safer Neighbourhood Panels. In addition, operational teams require suitable patrolling facilities and facilities for detainees.

14. The standard borough based operational policing model splits functions on this basis and the current Estate Strategic Plan and respective Borough Asset Management Plan reflects this model by offering the following accommodation solutions:-

• Safer Neighbourhood bases (including/excluding front counters)
• Front counter facilities (number dependent on borough need)
• Patrol Base facilities (one/two locations per borough dependent on Borough need)
• Custody Centre (detainee) facilities (one location per borough)

There is no standard solution for each borough – the geographic and demographic arrangements within each borough dictate property/real estate requirements.

15. The full transition of the existing borough based estate to the provision of suitable policing facilities must be seen as a long-term programme. Whilst the roll out of SN bases will be achieved within the next 2/3 years, the delivery of more specialised custody centres will take up to 10 years to deliver. The pre-requisite upon which the estate modernisation programme is based is that no operational / support facility will be closed until a suitable alternative is operational. In addition, where the MPA can work in partnership with Local Authorities/Criminal Justice agencies and other community bodies, opportunities will be explored and developed.

16. To ensure that the proposed property solutions agreed within the MPS (as supported by the MPA) meet the needs of the citizens and communities the MPS support, a Borough wide consultation process was undertaken in the Winter of 2007/08. Following a formal launch to Local Authority representatives by the MPA/MPS in November 2007, TP Borough Commanders, with the support of TPHQ and various MPA Members/Officers led individual Borough led consultation programmes to engage with local communities. A report outlining the results of the public consultation was presented to the former Co-ordination and Policing Committee on 4 July 2008.

17. Analysis of the feedback from this process at the highest level concluded that there is support to the need to provide suitable facilities for operational teams, and an acceptance that some of the existing estate does not meet operational requirements; in that respect the proposed property solutions were broadly accepted. The emphasis of prioritising the citizen focus agenda through property solutions and the provision of more local interaction has been welcomed. Concerns have been raised in regard to proposals to centralise patrol-based facilities.

18. There were variances in the levels of engagement and feedback between Boroughs, especially where no large-scale property solutions have been identified. Where proposals were known and discussed, special interest groups (including local resident and historical interest groups) responded more fully.

19. Consultation was focussed on each Borough’s real estate/property proposals and not the Borough operational policing model. Feedback suggests that there could be a lack of understanding of the way in which the MPS police London Boroughs. Furthermore, localised consultation in regard to specific projects/areas may provide a greater understanding of citizen/community needs. Such consultation will enable the MPA/MPS to address these needs more fully.

Non-Public Facing Operational Estate

20. The remainder of the operational policing estate accommodates those business groups with pan-London or regional responsibilities; those dealing in serious crime; those dealing in specialist crime matters with regional, national or inter-national focus and those supporting operational policing needs.

21. This element of the estate includes warehousing, garage and specialist transport facilities, forensic facilities, office accommodation (often designed on a traditional cellular basis), training facilities, and specialist training facilities. The ESP as supported by various asset management plans outlines the strategy for the replacement of those widespread properties with a smaller number of sub-regional warehousing facilities, the provision of modern ‘open-plan’ office accommodation, centralised corporate training and specialist facilities. Driving economies of scale and building flexibility into design will enable the greater utilisation of space and a reduction in running costs. Reflecting the changing patterns of crime in the location of facilities will assist in operational effectiveness.

Residential Estate

22. In 2006, the MPA agreed a new Residential Estate Strategy in regard to the provision of residential accommodation in the MPS. At that time, and following the Sheehy Inquiry into police responsibilities and rewards in the 1990s, the provision of housing was available to police officers for a limited period of time only; and most other similar forces had exited the ownership of a residential estate completely. Within the MPA/MPS the wholesale provision of housing to police officers was unaffordable, hence no provision was made for the allocation of housing to police staff. The MPA therefore approved and adopted a residential strategy to exit most of the residential estate (then in excess of 1,000 flats and houses and 750 Section house rooms) on a phased basis to a core holding up to 200 units (excluding training units) to be held for operational / welfare reasons. Receipts generated through the disposal of these assets would be allocated to the operational estate modernisation programme.

23. Since 2006 315 properties have been sold generating a value in excess of £93.4m. In addition the MPS Property Zone that acts as a gateway between third party providers (Housing Associations, developers, finance providers) has been broadened to support all MPS police officers and staff (including PCSOs) looking to buy, rent or co-share residential property. The team supporting Property Zone currently receive over 400 enquiries per month. The Property Zone is developing financial solutions via “Police Mutual”, working with other public sector organisations (including NHS) and working with HMG to enhance “key worker” initiatives. In approving the residential strategy the MPA were clear that the allocation of accommodation to Police Officers could not be terminated prematurely. In the case of the allocation of flats and rooms within Section Houses, Officers could be relocated; subject to suitable timescales and the provision of alternative accommodation. Those officers residing in flats and houses could also ‘apply’ to purchase the property they occupied at that time. However, there would be no rights for those allocated residential accommodation after February 2006 to benefit from this arrangement.

24. The provision of MPA residential accommodation is now subject to specific terms and conditions and those requiring accommodation are looking in specific areas in London and often for limited time periods only – a “stepping stone” approach. The majority of operational Officers joining the MPS already have established family houses, and as such demand for allocation of MPA residential accommodation since 2006 has been limited and on average no more that 8 requests are received each month. The provision of free travel, coupled with the benefits offered to officers and staff in terms of flexible working arrangements, child-care arrangements etc., are more appealing to MPS officers and staff. It is also the case that the officer and staff recruitment profile has changed in that many more recruits are now coming from London and joining at a different age range – so already have London “homes”.

25. The current proposals relating to the health and well being, lifestyle, education and learning of officers and staff to sustain the existing status of the MPS as an employer of choice are likely to be more influential to those within the MPS and those considering applying for a position within the MPS, than the provision of accommodation. The need to hold a small number of properties for operational and welfare reasons will remain. With the proposed regeneration/growth in key regions (Thames Gateway/Brent Cross) the core residential estate that is retained should reflect potential needs in such areas.

Way Forward

26. The recent consultation exercise has generated criticism both from the press, stakeholders and members of the Authority and it is recognised that there are lessons to be learnt from both within the Authority and MPS. There were variances in the levels of engagement and feedback between boroughs, in addition feedback suggested there could be a lack of understanding as to how the MPS police London boroughs.

27. Therefore the level of reliance that can be placed on the outcome is variable at borough level and there is a need to undertake a more thorough consultation of the public/citizen facing elements of the estate which will fully reflect the views of all stakeholders.

28. There is also a need to review and update the existing estates strategy “Building Towards the Safest City” which covers the period 2003 –2008 and the ESP which was last presented to the MPA in September 2007. It is therefore proposed that these documents are reviewed and updated, and that a combined Estates Strategy and Strategic Plan is submitted to Committee for consideration in Spring 2009.

29. The Authority will need to provide appropriate leadership and engagement with both the new consultation process and the review and updating of the current estates strategy and ESP. It is therefore recommended that a member led panel leads on these two strands of work

30. Whilst the member panel will need to discuss and agree the terms of reference it is proposed that the responsibilities of the group will include:-

• Lessons learnt from the previous consultation process
• Determining the new consultation process including timescales
• An analysis of the consultation results
• Formulating the estates strategy for 2009 onwards following consultation with key stakeholders and advisers.
• Update the estates strategy and ESP, providing clarity between the strategy and estate modernisation programme

There is quite rightly sensitivity about the impact that a continued delay on the estates strategy would have whilst further consultation of the public/citizen facing estate is undertaken. It is therefore proposed that during the consultation process and with regard the public/citizen facing estate only the safer neighbourhood programme and those projects that have previously been approved by the MPA, within the front counter programme, patrol, base programme and Borough Based custody centres Programme will continue. There will however, be no further disposals of properties that support the public/citizen facing estate at this time. Until further direction has been agreed, the MPA/MPS will continue to use the current asset management plans to manage the public-facing operational estate on a day to day basis.

31. It is proposed to continue with the delivery of current proposals in regard to the non-public operational estate, within current funding envelopes subject to the statutory town planning and Building Control/Local Authority Requirements.

32. The delivery of receipts from the disposal of surplus residential properties is key to the funding of the Capital Programme. It is proposed to continue the rollout of the Residential Strategy and to develop the Strategy to include areas of substantial regeneration/growth.

Environmental implications

33. Reference to the MPA/MPS Environmental Strategy is included in the ESP. In implementing the estate strategy, the MPA/MPS will as far as practicable, adhere to the Mayor’s five Environmental Strategies concerning air quality, noise, biodiversity, climate and energy.

Abbreviations

AMP

Asset Management Plan

BBCC

Borough Based Custody Centre

BOCU

Borough Operational Command Unit

CIPFA

Chartered Institute of Public Finance and Accountancy

CoP

Co-ordination and Policing

DoI

Directorate of Information

DDA

Disability Discrimination Act 1995 and 2005

ESP

Estate Strategic Plan

FC

Finance Committee

MPA

Metropolitan Police Authority

MPS

Metropolitan Police Service

RICS

Royal Institution of Chartered Surveyors

SN

Safer Neighbourhoods

TP

Territorial Policing

TPHQ

Territorial Policing Headquarters

C. Race and equality impact

1. The previous reports on ESP and AMPs also set out more fully the short comings in the estate and previous (pre MPA) approaches to the delivery of property solutions, and in particular the parlous offering from “Section Houses” and the impacts on officer/staff welfare and related considerations in the operational estate.

2. The modernisation of the estate will ensure that the MPA/MPS can provide/are able to continue to provide easily accessible accommodation to those officers and staff within the MPS, those sharing accommodation through partnership arrangements and in regard to the TP Borough Estate the citizen/community interface points, reflecting Disability Discrimination legislation and health and safety requirements.

D. Financial implications

1. In financial terms, the overall objective of the ESP, is to move the current estate into an affordable solution within the affordable budget envelope.

2. It is recognised that any further ‘hold’ on the existing disposal programme will result in an inability to deliver essential receipts that support the wider MPS Capital Programme. Therefore only those properties that support the public/citizen facing estate will be put on hold whilst the time limited consultation process takes place.

Capital

3. In accordance with the agreed MPA/MPS Estates Strategy, funds released from the disposal of surplus assets or assets that are no longer fit for use are regarded as a corporate resource and are used to support the overall capital programme including the modernisation of the estate.

4. The development of the ESP pre-dated the current global economic turmoil offering a solution, to the MPA, to make estate modernisation both affordable and deliverable in Value for Money terms. Current global circumstances will necessitate interim adjustments to the delivery of the ESP and AMPs. It is suggested that the ESP approach remains valid but will have to be adapted in terms of time period – i.e. extended in implementation over the next 3 to 6 years. Should the recovery of the UK economic climate fail to appear then the strategic position will need urgent revisiting as the current estate cannot be compliantly operated as presently configured.

Revenue

5. The estate modernisation programme seeks to minimise occupational costs and maximise the operational effectiveness of the real estate assets of the MPA/MPS by co-locating facilities – driving economies of scale – and providing flexible accommodation that can be adapted to varying operational need.

6. The disposal of those assets that are no longer fit for operational use and the recycling of the receipts generated will also assist in addressing specific maintenance backlog issues.

7. A delay in the roll out of the ESP will result in an inability to deliver revenue efficiencies and will create a number of compliancy challenges. Staffing costs that have been capitalised under existing programmes will require separate revenue funding. Therefore it is proposed that during the new consultation exercise, all projects that are non-public/citizen facing will continue. In addition the public facing/citizen facing projects within the safer neighbourhood programme and those projects previously approved by the MPA, within the front counter programme, patrol base programme and Borough Based custody centres Programme will continue.

Legal Implications and risks

1. The ongoing estate modernisation programme will take account of all statutory requirements and best practice. There are, however, real risks that a slowdown in affordable roll out of the ESP and AMPs will in due course combine to make some estate assets non compliant and some operationally needed imperatives will not be affordable - or delivered. Therefore those projects being out on hold will be limited to certain public /citizen facing projects which will only be put on hold during the consultation period.

2. These risks are driven in part by issues around global matters at the date of this Report. Should the global finance and related matters continue beyond 6/12 months, then estate compliancy will become both a serious operational risk to policing and the MPA/MPS’s obligations in terms of health and safety.

E. Background papers

• Residential Estate Strategy Review MPA Finance Committee 16 Feb 2006, Report 12
• MPA/MPS Estates Strategic Plan - MPA Full Authority 19 Dec 2006, Reports 7a and 7b
• Estates Strategic Plan - MPA Co-ordination of Policing Committee 27 Sept 2007, Report 9
• MPA/MPS Asset Management Plan Public Consultation Feedback MPA Co-ordination of Policing Committee 4 July 2008, Report 4

F. Contact details

Report author(s): Annabel Adams – Deputy Treasurer, MPA and Jane Bond - Divisional Director of Asset Management, MPS

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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