Contents
Report 11 of the 17 Apr 01 meeting of the Finance, Planning and Best Value Committee and outlines the need for the MPA to determine its future accommodation.
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MPA accommodation requirements appraisal
Report: 11
Date: 17 April 2001
By: Clerk and Treasurer
Summary
The report outlines the need for the MPA to determine its future accommodation. It suggests a three-stage strategy with the first stage to determine the preferred location. A comparison is provided of the implications of alternative locations. Members are asked to consider what advice they wish to provide to the full Authority.
A. Recommendations
- Members are asked to agree the three-stage process for determining the MPA's future accommodation (paragraphs 7-9)
- Members are asked to consider what advice to provide to the full Authority about location.
B. Supporting information
Introduction
1. The lease on Romney House, which is shared by the GLA and two of the functional bodies, is due to expire in December 2002. The GLA is to relocate to new purpose-built premises at More London Bridge (MLB) with an earliest date of July 2002 for the move to take place. The MPA should therefore plan to move out of Romney House at or before July 2002 as well in order to avoid being left with the full cost of the lease.
2. There will not be room for the MPA support organisation in the GLA building at More London Bridge. However, the MPA has a no commitment option on accommodation in a separate building at MLB, which is planned for TfL. A decision will have to be made as to whether to proceed with this option by September 2001. Work has not commenced on this building and there is no certainty that it could be ready for occupation by July 2002 if it is actually built. We understand that TfL may not wish to incur the capital costs involved. The urgency of our timescale does not apply to TfL.
3. Given the lead time required to find appropriate premises, enter into a firm agreement and fit out as necessary, moving out of Romney House is an urgent consideration, and the onus is on the MPA to determine the basis on which this happens. In addition, in view of the urgency it would probably be sensible to think in terms of finding an immediate solution, which will satisfy the requirements for the short term with a view to securing the long term home for the MPA in the next 3-5 years.
Requirement
4. The approved structure for the MPA support organisation is based on 40 staff for whom appropriate office accommodation is therefore required. It may be desirable to bring Internal Audit in with the rest of the MPA staff but this should probably not be considered as part of a short-term option. The staffing establishment for Internal Audit is 43, which would therefore double the office space requirement. They are currently located at Jubilee House, Putney, and are under no pressure to move.
5. Member accommodation will need to be provided for non-Assembly members at least to the standard currently available in Romney House. If the MPA premises were significantly detached from the GLA's offices, the accommodation needs of Assembly members would have to be considered as well.
6. The MPA will require public meeting facilities adequate for Authority and committee meetings. In certain circumstances, these could be the GLA's facilities at MLB. In any case, the new accommodation should include meeting rooms for non-public member and officer meetings.
Strategy
7. The first decision that has to be taken is the preferred location. In practice, there are only two options: the Victoria area convenient for New Scotland Yard (NSY); or the London Bridge area convenient for the GLA headquarters. The purpose of the current report is to seek a decision on this issue.
8. The second stage would then be to identify suitable accommodation to meet the short-term requirement in the preferred location. The target would be to move out of Romney House by July 2002. Given the relatively limited requirement and the short-term nature of the decision at this stage, renting accommodation is the only feasible option.
9. The final stage would be to review options over the medium term in order to establish the permanent long-term accommodation for the MPA. At this stage, it would be possible to consider combining with other appropriate organisations and purchase could be a possibility, subject to availability of capital resources.
Location
10. The MPA does come under the umbrella of the GLA as one of the functional bodies and there is significant interaction between the two bodies. Twelve of the 23 members of the MPA are Assembly members whose primary base will be the GLA headquarters at More London Bridge. GLA meeting facilities could provide a valuable opportunity for the MPA.
11. At the same time, the MPA's main responsibility requires a close working relationship with the MPS whose principal headquarters and administrative offices are in or around New Scotland Yard in the Victoria area.
12. The strategic location choice therefore is between Victoria and proximity to the MPS, and London Bridge and proximity to the GLA.
13. The main considerations in making this choice must be cost, the inter-travel implications and effective working arrangements.
Cost
14. Rather than identify specific properties at this stage we asked the MPS Property Services Department to provide a market report assessing the relative costs of office accommodation in the two areas under review and the relevant information about costs is quoted in the following paragraphs.
15. The existing Romney House accommodation amounts to 615 square metres with an annual rent of £200,000, based on a rental cost of £114 per sq. m. plus outgoings. The minimum short term space requirement arising from the considerations set out in paragraphs 4-6 above is 750 sq. m. and the cost assessment has been based on this.
16. The London Bridge area 'has had a number of new office developments built and there is a regular supply of suites in these buildings. Additionally the Southwark Street area is currently the focus of a number of refurbishments of older style buildings. Rental costs range from £300-500 per sq. m. For comparison the rent for the new GLA headquarters building equates to £393 per sq. m'.
17. 'There is an excellent supply of office accommodation in the Victoria/Parliament areas of the borough of Westminster, but a shortage of availability in the current market. Rents are between £450-600 per sq. m.'
18. 'The cost of business rates in Southwark is considerably lower than Westminster. Other running costs for an office suite of 750 sq. m. are likely to be payable as a service charge as part only of a larger building serviced by the landlord. These costs will generally be similar between buildings.'
19. The following table sets out the comparative costs.
| Location | Size (sq.m.) |
Rent (£) | Rates (£) | £pa |
|---|---|---|---|---|
| Romney House | 615 | 114 | 200,000 | |
| Victoria | 750 | 525 | 80 | 453,750 |
| London Bridge (Southwark) | 750 | 400 | 36 | 327,000 |
| MLB* | 750 | 393 | 188 | 435,750 |
*The figure for rates for MLB is taken from the report by the GLA's advisers. It is out of line with that payable on existing buildings in the area
Travel
20. The cost of travel is less significant than the time required and the need for good management of time so that the travelling aspect does not disrupt meetings. The return tube fare between the two locations is just £3. Realistically at least half an hour would have to be allowed for each journey giving a total travelling time of one hour per person affected per meeting.
21. The following table attempts to summarise the travel implications as they affect different groups. It identifies, under each option, who would have to travel and for what purposes. It does not include changes in travelling requirements that will arise from the GLA's move to MLB regardless of where the MPA is located.
| Group | Location 1: Victoria | Location 2: London Bridge |
|---|---|---|
| MPA assembly members | All authority meetings; committee meetings depending on membership; information, non-public meetings. | Informal, non-public meetings held at NSY, etc. |
| MPA non-assembly members MPA staff | Meetings with GLA officers; meetings of GLA assembly/committees as required; meetings with MPA Chair/committee chairs if assembly members. | Meetings with MPS officers; informal, non-public meetings held at NSY, etc. |
| MPS management and staff | Meetings with MPA Chair/committee chairs if assembly members. | All authority/commmittee meetings; meetings with authority/committee chairs; informal, non-public meetings held at LB; meetings with MPA officers. |
22. The impact on individuals within each of the four categories identified above will vary. The published programme for 2001/02 includes 54 meetings of the Authority and committees. Some members are on 3-4 committees, others are on none. Those with more extensive involvement on committees tend to be non-Assembly members, but not exclusively so. Attendance at committees tends to be spread across the MPS Management Board with the heavier loadings with the Deputy Commissioner and the Director of Resources.
Working arrangements
23. It is the responsibility of the MPA support organisation to ensure that the Authority's business is transacted as effectively as possible. Either location will place some additional strain on this task.
24. For example, there is the possibility that, if the meetings are in the Victoria area, Assembly members will find it more difficult to attend committee and other meetings. Conversely, if the meetings are at London Bridge there is likely to be a reduction in the number of MPS staff attending committees other than those who are absolutely essential.
25. There would have to be a 'mix and match' approach as far as possible to minimise the potential inconvenience. Thus, if public meetings were to be held wholly or largely at MLB, more informal events could be located at NSY. Ultimately arrangements would have to evolve to suit what is a less than ideal situation.
Conclusion
26. These considerations suggest the following pros and cons of the two potential locations.
| Location 1: Victoria | Location 2: London Bridge | ||
|---|---|---|---|
| Pros |
Minimise disruption for MPS management and staff. MPA profile independent from GLA. Facilities MPA staff meeting MPS staff. |
Pros |
Convenient for assembly members of MPA. Facilities interaction with GLA. Appropriate public meeting facilities. Cost |
| Cons | Cost. Difficult in securing adequate public meeting facilities. Disruption for assembly members of MPA and possible reduced involvement by assembly members. MPA staff travel for interaction with GLA. |
Cons | Disruption for MPS management and staff. MPA staff travel to meeting MPS staff. More difficult to maintain MPA's. Profile as a separate statutory body. |
27. This report will need to be put to the full Authority in May. The Committee is asked to consider what advice it may wish to offer to the Authority.
C. Financial implications
The costs of future accommodation for the MPA will inevitably exceed the cost of the current arrangements and this will have to be reflected in the budget for 2002/03.
D. Background papers
None.
E. Contact details
The author of this report is Peter Martin, Treasurer.
For information contact:
MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18
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