Update on estates strategy

Report: 10
Date: 3 March 2006
By: Commissioner

Summary

This report was considered by the Finance Committee at its meeting on 16 February 2006 and it was recommended that it be considered by this Committee, in view of this Committee’s linkage with the Met modernisation programme. It seeks to update Members on the progress made in implementing the Estate Strategy agreed by the MPA/MPS in 2003 and formally launched in early 2004.

The report focuses upon progress and more importantly the impact on the Service going forward when considered alongside the current policing priorities and plans. It is proposed to bring a draft revised public version of the estate strategy to Committee for approval should this report be approved.

A. Recommendations

That

1. members approve, endorse and agree the strategies outlined in this report;
2. a public document be prepared for MPA approval explaining and communicating the decisions of the MPA and the estate strategy; and
3. consideration be given to an expanded need for communication of the strategy to stakeholders, communities etc.

B. Supporting information

Introduction

1. In 2003 previous MPA estate strategies were acknowledged as being unfunded and focussed on long-term change that was not coping with growth in officer and staff numbers or indeed the changing nature of policing in London. As result a new strategy, ‘Building Towards the Safest City (BTSC), was developed and approved by the MPA.

2. Since adoption in 2003/04 significant progress in testing and applying the strategy has been made. Progress in many areas is now ahead of expected impact and it is considered essential that the property actions stay in line with policing priorities.

Key strategy approaches and progress

3. BTSC was designed to bring the estate costs back into the available funding envelopes (capital and revenue) whilst providing faster delivery and medium term location flexibility. To achieve best value the concept was to adopt a high level of standardisation – described as developing a “property template”. This approach has advanced significantly as follows.

Patrol bases

4. Based on leasing existing industrial or warehouse space and using a modular flexible fit out process the objective is to reduce costs and delivery times whilst also reducing revenue costs by exiting old buildings (mainly without front counters). These units cost less than a tenth of the cost of conventional custom buildings and can be delivered in six to nine months from the date of acquisition (and probably faster as the programme numbers build). The first, in Waltham Forest, opened in April 2005 and has shown not just property efficiency gains but also operational efficiency benefits. It can house up to 500+ officers easing pressure on the old estate (and allowing release/relocation of old, expensive to run and maintain, buildings). Another five Borough Operational Command Units (BOCU) priority locations, agreed with the Territorial Policing (TP) Directorate, are in various stages of action – with Enfield being the most advanced with contracts exchanged on the new building. The Capital Programme supports two to three new bases per year but this is expected to be higher if “self funded” (by the sale of older premises) options are developed – which is highly likely. Patrol Bases do not usually have full front counters but some may. They are not planned to have custody facilities. On full roll out in some 6 years or so time it is expected at least 25 BOCUs will be operating from Patrol Bases.

5. Patrol Bases have also been the solution for Transport Operational Command Units (OCU) (Canterbury Court and Hammersmith Grove) both of which have now opened. The cost of these is recovered from Transport for London. Another two are earmarked subject to site acquisition and funding from TfL.

6. The Central Operations (CO) Directorate has also agreed, in principle, that the Patrol Base template is a suitable solution for their needs (Territorial Support Group (TSG), Traffic and Transport etc.) although the units will need to be larger in size than that provided to a BOCU. It is presently thought (a needs review is not yet completed) that at least 5 such bases will be required.

Use of commercial/open market offices

7. BTSC identified that much pressure on the old estate arose from the use of station and historic buildings for office accommodation (for which they were very poorly suited). The opportunity existed to relocate these uses to appropriate normal commercial office space at lower costs.

8. This part of the ‘template’ has become widely accepted in the Service and has been well received. Again delivery has been accelerated, efficiency gains delivered and all at much reduced costs (but with no cash/budget savings as the aim is to bring costs back in to revenue funding envelopes). This process has enabled old buildings to be exited and has reduced revenue costs whilst producing fit for purpose space. The adoption of modern practices on office layouts (open plan and use of modern furniture) is now widely accepted across the MPS.

9. In addition to the solutions for the central estate, this approach has seen, or is currently delivering, solutions for Barking and Dagenham TP BOCU (Maritime House), The Specialist Crime Directorate Child Abuse Command (SCD5) and Enfield TP BOCU (Stratford), Kingston TP BOCU (Eagle House), Traffic OCU HQ (ESB), released space at New Scotland Yard (NSY) (the Deputy Commissioner’s Command (DCC) moves to Empress State Building (ESB)), the Specialist Operations (SO) Royalty and Diplomatic (location redacted) and there are many other plans at an advanced stage.

Safer Neighbourhoods (SN)

10. Part of the BTSC vision was to progressively separate public contact points from “other” less conducive parties at the “full service” police station front counter. The latter can be rather formal and unwelcoming and expanding places where contact can be made is seen as essential for improving community engagement. London property and the dense urban fabric deny the MPS the new build options available to many other Forces. But we have successfully started to amalgamate funding streams so we can now deliver SN bases that exploit synergies with Patrol Bases and Office locations. In addition we can probably grow SN Bases into “SN+” to tie in with Asset Management Plans and exiting old buildings. All these approaches move expensive old occupations into lower cost locations that simultaneously better serve communities in London (e.g. New Malden, Enfield TP BOCU Plans, Wealdstone plans, ESB SN Base etc.). Work on this front continues apace and most new SN Bases are being provided with meeting rooms where the public can meet us in an informal setting.

Custody and Criminal Justice (CJ)

11. BTSC touched upon the need for a new model of building provision for cells and CJ. The Service has also addressed this issue and accepted that provision of cells is only part of the challenge. CPS at point of charge initiatives have been met in Property terms – but not without challenges. Now the issue is around efficient use of cell space and how we measure our use and turnaround of persons in custody/detention.

12. Notwithstanding these operational issues it is clear that a locationally dispersed provision of units comprising a small number of cells is inefficient in the round. Similarly, major concentration of cells is not practicable in London and there is also a dis-economy of scale issue in terms of buildings and staffing. We need to achieve best value and best management of available facilities - at the same time.

13. The suggested solution is “custody centres” probably with no more than 30 cells and no less than 20 cells per location. This keeps each site deliverable and fundable whilst not growing “support space” (including stakeholder/partner space) to the point where solutions in London are simply not deliverable or affordable in practicable terms on the “ground”. TP’s Project Emerald on custody issues and the work of Property Services is being fully co-ordinated.

14. Much work has taken place in Property Services, with TP, on the drivers for custody locations. There is a clear balance to be struck between accessibility and the rights/needs of victims, those in custody and the finance issues of the Service. TP have now formed a pan London custody management unit.

15. It is now clear that in the denser areas of London we must redevelop existing stations to provide custody centres. But at the same time, mainly in the suburbs, centres can move to industrial locations with prefabricated/modular fit outs and this is now our preferred solution. We are also exploring new delivery methods.

16. To fund this change will require TP operational revenue resources/benefits to be vired to estate provision and discussions are ongoing to resolve this.

17. There is also a cell standards issue to be addressed. Cell and custody standards are considered to be historically driven from funding routes. Historically the Met designed the standards and the Home Office (HO) imposed these on others. The MPS intends to cease developing these National standards and at the same time explore alternatives that are legislatively compliant in a forward looking manner (including Human Rights) to align provision to reality in London. In particular, we will be developing urgently the option of “cubicle” containment spaces to hold, short-term, persons in custody rather than seeking to place all persons in a formal “cell”. The use of “non designated” stations is also under examination.

18. It is anticipated that a detailed custody report will be presented to the MPS Investment Board for approval in February 2006. At present the capital programme only provides for one or two new facilities per annum (excluding the 20 cell expansion at Acton, which is completed, and Priestley Way which will serve the new Wembley Stadium). Overall some 20 new custody centres are anticipated to be needed.

Citizen Focus

19. In anticipation of this agenda Property Services has already accelerated the upgrading of ‘full service’ front counters programme so the target of two Disability Discrimination Act (DDA) compliant counters per BOCU will be completed in 2005/06 to first quarter 2006/07. Safer Neighbourhood bases with meeting facilities are delivered to meet DDA requirements.

Impact on the existing estate

20. Whilst some template schemes require an exit of existing buildings and capital funding in support of the new provision model, there are other cases emerging (e.g. Enfield TP BOCU) where the overall plan can be funded from the sale and savings from the sale of existing buildings (not always stations) and is hence not reliant on allocated funds from the MPA Capital Programme. New funding freedoms (Prudential Code) also assist in this. Hence we can show that asset management approaches are starting to bring back the estate into the available funding envelope – rather than the MPS continually recording the underfunding of the estate on both revenue and capital accounts.

21. At the same time we are becoming more flexible in location terms (in line with numerous HO studies and reports) and moving our presence closer to communities and citizens in 2006 – not the locations where we built stations – often over 50 years ago.

Impact on policing model

22. When the new BTSC strategy was launched we had many ideas and visions. Delivery and Service “sign up” has now exceeded initial expectations to the point where we now need to advise Management Board and MPA of the implications and “knock on effects” in order that the overall impact on the London Policing model can be visible.

23. With Patrol Bases and revised location custody facilities we now have a clear, affordable and deliverable “template” solution that standardises property needs across TP and CO. This reduces previously unachievable/unfunded property needs and opens up new delivery routes, for policing, via Property Services.

24. The combination of Safer Neighbourhood and Asset Management Plans allows the MPS to move, over time (five to seven years), to a segmented contact point that meets the Citizen Focus agenda. SN and SN+ combined with the possibility of having contact points (public) at Patrol Bases enhances this change and expanded public interface options.

25. The Patrol Base model, adopted Service wide, allows us to be more efficient and estate “affordable” whilst also harvesting construction/estate benefits. We are working on the most appropriate delivery route and will seek appropriate project approvals in the coming months.

26. On custody we have the ability to produce solutions that are right in London geography terms, affordable and flexible.

27. These solutions also enable us to challenge “standards/guidance” that are no longer relevant in 2006 and going forward.

28. As a result the existing strategy has been reviewed and updated. A draft public document is in preparation in anticipation of Committee approval of this report. Overall the plan remains to refresh the estate within seven to eight years in line with current funding and related resources. The Met Modernisation Programme is seeking to accelerate this process and is subject to separate and ongoing work. Should the Committee approve the Residential Estate Strategy then this will pave the way for a further report on the potential to accelerate the pace of estate modernisation.

29. The original estate strategy was launched to wide spread press coverage and pan London stakeholder communication in February 2004. It is now clear that this communication needs to be enhanced and improved and resources need to be deployed to extend this into consultations at a Borough level particularly in respect of BOCU (Borough) public interfaces. This will require an expansion to the current approach of BOCU Commanders taking the lead on consultation and communication. The MPS is currently urgently reviewing this clear need and a further report will be brought to Committee via the regular Estates Update.

Abbreviations

BTSC

the 2003/04 Estate Strategy Building Towards the Safest City

MPA

Metropolitan Police Authority

MPS

Metropolitan Police Service

HO

Home Office

SN

Safer Neighbourhoods programme

SN+

Safer Neighbourhood bases amalgamated with relocated other MPS operations in a new building and/or provided with expanded public contact points (and sometimes “mini” front counters)

ESB

Empress State Building

TP

Territorial Policing (MPS)

BOCU

Borough based command units of Territorial Policing (MPS)

CO

Central Operations Command (MPS)

SCD

Specialist Crime Directorate (MPS Command)

DPG

Diplomatic Protection Group (part of the MPS Specialist Operations Command)

TSG

Territorial Support Group (part of Central Operations Command, MPS)

D. Legal implications

Apart from normal property and construction related matters there are not considered to be any unusual or additional matters to be brought to Members attention. The preparation of the strategic approach has been agreed with MPS Management Board and reflects the Policing Plan and known changes.

E. Race and equality impact

The estate strategy update is fully supportive of policies in this area.

F. Financial implications

1. The funding of the estate changes remains dependant on additional capital resources except where the changes are funded totally from disposals on both capital and revenue accounts.

2. Capital budgets are extremely constrained. A separate report is being placed before the MPA to review the residential estate strategy and is recommending a phased withdrawal from direct ownership. If approved the phased disposal will release capital funds that could be utilised to fund the Capital costs of the operational estate changes.

3. In revenue terms there is every potential that the costs of change can be absorbed broadly within current budgets as revenue costs for the new buildings are considerably lower than the current aged stock. This will also help alleviate the “maintenance backlog” upon which we will report later in the year but are currently anticipating a reduction of 5% to 10% as a result of these and asset management changes. It is not anticipated that revenue cashable savings will arise. In addition the increasing provision of modern fit for purpose accommodation is showing early signs of reducing running costs due to lower “wear and tear” problems. This strategy does assume that further cuts ( £ 11m direct in 2005/06 and a further £ 7m in absorbed cost increases in 2005/06) does not reoccur. Current asset management plans show that the new strategic estate model will be the minimum / right sized estate needed to support Policing.

F. Background papers

• Estate Strategy – Building Towards the Safest City

G. Contact details

Report author: Alan Croney, Director of Property Services

For more information contact:

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

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