Stage 2 of the Safer Neighbourhood Property Programme - update

Report: 7
Date: 18 November 2010
By: Assistant Commissioner for Territorial Policing and the Director of Resources on behalf of the Commissioner

Summary

The property programme to provide local accommodation for Safer Neighbourhoods teams has been ongoing for 6 years, and so far has completed 221 purpose built locations for 468 teams.

Award of contracts for stage 2 of the Safer Neighbourhoods Property Programme (the ‘SN2 Programme’) was approved by Metropolitan Police Authority (the ‘MPA’) Finance Committee in December 2007. Contracts were awarded in January 2008 and work to deliver the original total of 124 (that subsequently reduced to 111) bases contained within the programme have continued.

By the end of August 2010 the first 61 bases had been completed and work was progressing, with a further 34 in the process of acquisition/development leaving 16 sites still to be identified.

The TP Development Programme is responsible for engaging in a review of how we deliver a range of policing services. This programme includes a review of Safer Neighbourhoods teams (SNT) where boroughs are engaging with partners and local communities to consider the location, structure and delivery of the team. This work is being undertaken in line with the MPA scrutiny. In view of the programme the MPS has reviewed the existing SN property programme to address the priorities for outstanding property searches, the aim is to ensure property is not identified and secured (which may be in a different location or form by the business) pending the outcome of the review process. This initial review has enabled the MPS to identify capital and revenue savings at this stage. Further work will take place between TP and PSD when the outcome of the TP Development SN review is known to ensure the future estate can support safer neighbourhoods.

In addition to the review of outstanding searches, TP and PSD are reviewing those SN bases that currently have lease renewals due or potential lease breaks to support the Corporate Real Estate principles to maximise the usage of properties, without affecting operational capability. This review is now underway and the initial results are contained within this report.

This paper seeks to update Members on the progress made in the last seven months on the SN property programme. Members are also asked to note the principles for the TP Development SN review.

A. Recommendations

That members

1. note the TP Development programme review of Safer Neighbourhoods and relationship with PSD SN Property programme.
2. Note the content of this report on progress made on the SN2 Property Programme.
3. Approve the proposed changes to the programme reducing the Property Services Capital budget to £79.86m as detailed under Section 3 Financial Implications. The DoI capital expenditure will be reduced to £3.13m.

B. Supporting information

TP Development SN review

1. The MPS has Safer Neighbourhoods teams supporting every ward in London and these teams have made a significant contribution to safety and confidence across London.

2. The TP Development programme is reviewing how we deliver our policing services across London, including Safer Neighbourhoods. The TP Development SN review will focus on the location of SN teams, what they deliver and how they are structured, with the commitment to maintaining dedicated named officers in neighbourhoods. The review is aligned to the MPA scrutiny of SN which focuses on the current structure of SN teams.

3. Currently each SN team is dedicated to their wards. Following feedback from partners the TP Development programme is seeking to explore if this is the most effective model of deployment which allows the MPS to capture the needs of neighbourhoods which may cross ward or borough boundaries (e.g. town centre teams). Where there might be areas where the public could benefit from having SN teams with a different geographic boundary TP would like to explore the potential impact and consequences of making a change to the coverage of the team with local partners and the public.

What the teams deliver

4. The SN review will look at the scope and remit of what the SN teams provide. This will enable TP to address the role of the different teams in the wider ‘safer’ family such as safer schools officers, safer transport teams and town centre teams to ensure there is no duplication, but a clear focus on delivering local priorities for crime reduction and anti- social behaviour. The review wants to ensure the local teams are focused on increasing public confidence and align their delivery to other changes to the policing model as it is agreed by MPS Management Board.

Structure of the teams

5. The SN review seeks to protect the resources in neighbourhood teams, however if we do need to reduce numbers it will seek to do this relative to each borough. At this time, there is no consideration given to the permanent movement of SN team resources across boroughs. Through the review we will seek to be assured of the following, which may affect both the structure and numbers of officers and staff in each team:

• That the management structure is appropriate and makes best use of sergeants and their skills
• That we are clear on the differing role of the police constable and the police community support officer in neighbourhood teams in terms of providing enforcement and delivering engagement.

Meeting Demand

6. As part of the SN review, we are also taking into account the TP Development programme principle of meeting demand that takes local perception of crime and confidence into account alongside call demand or crime levels. Currently a ‘one size fits all’ model across SN teams does not take account of this wider definition of demand.

SN property programme

7. A high proportion of SN bases have been delivered through the SN property programme. From its inception all 630 SN Teams were accommodated within the MPA property estate, with a total of 160 purpose built bases, housing 340 teams being delivered through the 1st Stage of the SN property programme.

8. The SN2 Programme was originally tasked to provide bases for approximately 170 SN teams in 124 separate locations, following an assessment of the entire requirement.

9. The MPA Finance Committee (the ‘Committee’) on 11th December 2007 approved the award of three contracts for the SN2 Programme:

• Acquisition Specialist – OGC Estates Professional Services Framework – Bruton Knowles
• Employers Agent / Cost Consultant – OGC Project Management & Full Design Team Services Framework – Drivers Jonas
• Design (Architect & Engineers), Develop & Construct Contractor – SECE Major Contractors Framework – Mansell Construction

10. The Metropolitan Police Service (‘MPS’) governance structure in place to administer the SN2 Programme roll-out has been led by Territorial Policing Headquarters (‘TPHQ’), with engagement from MPA Officers, and has consisted, up until now, of a Steering Group and a Project Board. However with the end of the SN property programme approaching and the importance of co-ordinating future property requirements with the TP Development programme, the function of the Steering Group will now be carried out by the TP Property for Policing Programme Board, now chaired by the Director, TP Development programme. The MPS Steering Group provides reports at 6 monthly intervals to the MPA Finance and Resources Committee on progress and budgetary issues and this is the sixth of these reports.

11. SN2 Programme works commenced in January 2008 with the new supply chain. One of the immediate tasks undertaken was a review of the data regarding numbers and locations of bases, and in addition, a prioritisation scheme was approved by the Steering Group. This requirement has been continually reviewed throughout the course of the programme and has been updated following the reviews carried out, and the total number of bases to be constructed currently stands at 78 (although three of these will be provided through other works programmes).

12 At the beginning of September 2010, 63 bases had been completed (an increase of 20 in six months), with a further 8 bases currently on site. With the exception of 2 locations all of the remaining locations currently proposed will be completed by April 2011.

13. In July 2010, Management Board approved the principals of the Corporate Real Estate (CRE) strategy to maximise the use of all of the MPA Estate. At the same time proposals to reduce the overall expenditure (both Capital and Revenue) on this programme were approved and to this end an initial joint review was carried out by TP and PSD to identify areas for savings and reduce expenditure wherever possible.

14. The SN property review is formulated in 2 sections:

1. The first section has reviewed the projects in Stage 2 of the programme that involve properties that we have yet to complete a lease. The TP Development SN review and current SN teams are not affected by this element of the review. SN teams are currently based in existing accommodation. This also eliminates the risk that new sites are provided that may not be suitable or required following the TP Development SN review.
2. The second section is reviewing all existing bases and seeks to exploit opportunities for releasing the properties either by exercising a lease break clause or not renewing a lease. SN teams that may be affected by the release of properties will be relocated close to their wards in the existing MPS estate. This will reduce the capital and revenue costs for the MPS, without disruption to operational policing. There is a minimal risk that some existing bases that are released may be in a suitable location following the SN review.

15. The parameters that were used in the first stage of the review of projects which are in hand but not yet on site were as follows:
Projects would cease unless:

1. There was a compelling operational requirement that meets with TP Development objectives
2. The project enables the decanting of team(s) from an existing building that can then be reviewed for operational use.
3. Partner Organisations have expended funds which could impact on organisational reputation.

16. As a result of this review 33 projects of the 48 identified as ongoing in April, would no longer be provided with a potential reduction in demand of £22.22m against the property capital budget. The corresponding reduction in demand in the DoI Capital budget is £5.56m. This results in a total reduction in capital expenditure of £27.78m. The SN Teams associated with these 33 locations will remain in their current locations; a list of the ward teams affected and the proposed and current locations is shown in exempt Appendix1.

17. There is a corresponding reduction in planned ongoing revenue expenditure of £1.42m (at an average revenue cost of £30k p.a. for Property costs and £13k p.a. for DoI) per annum. There is however one- off revenue cost of cancellation of these projects of £1.40m.in respect of expenses already incurred on these projects that will transfer from capital to revenue and could be funded from Property Services Reserves.

18. The second stage of the review is focussed on further reductions in the revenue expenditure on the existing bases and this section is focussed on the opportunities to release properties where a break clause exists, or the lease has reached the end of its term. Property Services are working closely with TP to identify appropriate alternative accommodation for teams housed in these locations within the existing MPS Estate.
19. The parameters that are being used in the second stage of the review of existing bases are as follows:

1. Operational requirements
2. Availability of alternative accommodation within the MPS retained property estate or with partner organisations.
3. Impact on Partner Organisations and detrimental effect on relationships / public opinion.
4. The effect of / on the Corporate Real Estate model and estate rationalisation.
5. Costs and benefits of the change.
6. TP Development requirements for Safer Neighbourhoods.
7. Front Counter interdependencies.

20. The numbers of bases to be reviewed in the short term are:

1. Lease expires in 2010/11 - 6
2. Optional break clauses in 2010/11 - 9
3. Lease expires in 2011/12 - 4
4. Optional break clauses in 2011/12 - 39
5. Lease expires in 2012/13 - 0
6. Optional break clauses in 2012/13 - 20
7. Lease expires in 2013/14 - 2
8. Optional break clauses in 2013/14 - 13

Total number under review - 93 bases.

21. The second stage review will become part of TP and PSD business as usual, in that the option to break or renew any existing lease is considered prior to action being taken. No decision to break or renew a lease will be taken without full consultation with the TP Development SN review and agreement at the TP Property for Policing Programme Board, chaired by Director, TP Development Programme.

22. The potential reduction in the total revenue budget (both Property Services and DoI) for Safer Neighbourhoods is shown in Table 6 of Section D, Financial Implications, and shows a reduction of £4.33m in 2010/11 rising to a potential maximum reduction of £8.30m in 2014/15 if all properties are released.

23. In exiting each location, it is likely that the MPS will incur one-off dilapidation expenses, removal and equipment de-commissioning costs that will vary from location to location and be the subject to negotiations with each Landlord. It is currently intended that this expense will be funded from the reserve fund that has been created for that purpose. It is also likely that, in order that we can accommodate teams into other buildings on the estate, some works may be required and this will be funded from the CRE capital budget.

C. Other organisational and community implications

Equality and Diversity Impact

1. Property Services promote equal opportunities, amongst diverse communities and across its supply chain and will undertake procurement in line with the MPA’s Equal Opportunities Policies.

2. Design and related issues take in to account both property related issues and locations (via the local Borough Operational Command Unit (‘BOCU’) (Territorial Police) established liaison and partnerships in place). Base design issues, in accord with standard Property Services Directorate approaches to new sites, also address requirements and achievement of best practice design in respect of accessibility and disability matters (access, signage etc.).

3. Operational matters to meet Disability Discrimination Act service needs and local requirements are also fully assessed in terms of the TPHQ set operational model and by the local BOCU as part of the overall process.

5. The TP Development SN review is subject of an Equalities Impact Assessment.

Consideration of Met Forward

5. The review of the rollout of SN bases supports the Support stand of Met Forward. This review is being carried out against the need to review the estates programme and the current economic environment. The MPS will continue to provide a visible policing presence in the community.

Financial Implications

Capital:

6. The overall impact on the approved capital programme relating to property is a reduction in budget of £22.22m over the life of the programme. The revised Safer Neighbourhoods Property Capital budget is shown in Table 1 below.

Table 1

7. In addition, the current 2010/11 Safer Neighbourhoods capital budget held by DoI stands at £8.69m and of this £3.13m will be required to complete the programme as set out in this paper. There will therefore be a reduction in the DoI Capital budget of £5.56m.

Further information is contained in exempt Appendix 2.

Revenue:

8. The revenue implications of this review are indicated below:

2010/11 Position:

9. The impact, on the property budget, of ceasing the roll-out of further bases on the 2010/11 budget will be a saving of £2.03m assuming that abortive costs of £1.40m are offset against Safer Neighbourhoods reserves. A breakdown of the costs along with the number of bases is set out in Table 2 below:

Table 2

Note: Number of SN bases excludes bases within MPS Police Stations or other corporate buildings.

2011/12 Position (assuming no inflation):

10. The total 2011/12 property costs (i.e. the full year effect) of all bases due to be completed up to the end of 2010/11 will result in a budget saving of £1.94m if all bases continued to be utilised. This is set out in Table 3 below:

Table 3

Impact of lease breaks:

11. The impact, on property budgets, of exercising all lease breaks and not renewing lease expiries results in a full year saving of £4.72m by 2014/15. The financial breakdown and details of lease numbers are set out in Table 4 below:

Table 4

12. The number of lease breaks/expiries shown in Table 4 above refers to the year in which savings fall and not the year in which the break is made (due to the six month notification period).

DoI Revenue Savings:

13. The suggested actions set out in this paper will also impact on the DoI costs associated with Safer Neighbourhoods. The savings that will be generated from ceasing new construction as well as exercising lease breaks and not renewing expired leases are set out in Table 5 below:

Table 5

14. The savings set out on Table 5 above are based on an average DoI running cost of £0.01m per base and although costs are broadly consistent they may vary slightly once actual changes are made. There will be de-commissioning costs of £0.48m and it is anticipated that, as with PSD abortive costs and dilapidation costs, these will be met from existing Safer Neighbourhood reserves.

Total Revenue Savings:

15. The total savings that will result from the proposals within this paper including DoI and Property costs amount to £8.3m by 2014/15. These savings as detailed in the tables above are summarised in Table 6 below:

Table 6

16. These savings are already included in the draft Business Plan although they currently sit exclusively within Property Services and therefore the plan will need to be amended to reflect savings that will fall within DoI.

17. The 2010/11 revenue under-spend forecast within PSD will be considered for transfer to reserves to ensure that future SN Base delivery activities are sufficiently funded and in particular to cover any dilapidation liabilities that may result from the exercise of lease breaks and non-renewal. The under-spend for 2008/09 was also treated in this way.

Legal Implications

18. The MPA under s120 of the Local Government Act 1972 has the power to acquire any property including a lease and also has the power to do anything which is calculated to facilitate, or is conducive or incidental to, the discharge of any of its functions under s111 of that Act as if it were a “local authority” .

19. Any contract award in respect of works and services associated with this project will be required to be carried out in accordance with the Public Contracts Regulations 2006, and the MPA’s standing orders under Part F.

20. Decisions by the MPA/MPS about the Safer Neighbourhood model must be decided by having due regard to the Policing Plan.

Environmental Implications

21. The anticipated environmental implications are tabulated below:

Risk Implications

22. The simultaneous review of the Safer Neighbourhoods programme by TP Development and the review of the Property Programme, create the potential for a significant reduction in the ongoing revenue expenditure, whilst also reducing the initial capital outlay. These reviews require significant coordination and call for excellent communications with all stakeholders including the interested parties at ward and borough level.

D. Background papers

• Property Procurement Paper – May 2007
• Safer Neighbourhoods Property Procurement Paper – July 2007
• Safer Neighbourhoods Property Procurement Paper – September 2007
• Stage 2of the Safer Neighbourhood Property Programme – Contract award – December 2007
• Stage 2 of the Safer Neighbourhood Property Programme – Update – July 2008
• Stage 2 of the Safer Neighbourhood Property Programme – Update – March 2009
• Stage 2 of the Safer Neighbourhood Property Programme – Update – September 2009
• Stage 2 of the Safer Neighbourhood Property Programme – Update –March 2010

E. Contact details

Report authors: Peter Ross, Programme Delivery Director, Property Services, MPS

For more information contact:

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

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