Land and building capital programme - quarterly update

Report: 14
Date: 19 July 2001
By: Commissioner

Summary

This is the first in a regular submission of quarterly reports on the expenditure progress and changes in the capital programme of all projects costing in excess of £500,000.

The report shows that, with the essential adjustments for new priority projects and on site progress required over the first three months of the financial year, expenditure remains on target.

The quarterly review indicates that the slippage allowance can be reduced by almost 50 per cent (not 25 per cent as planned).

B. Recommendation

Members are asked to note progress in the Capital Building Programme and the recorded changes.

C. Supporting information

1. The Finance Planning and Best Value Committee requested quarterly reporting on progress and changes to the Capital Building Programme

2. This paper is based upon a standard report prepared for the MPS Resource Allocation Committee (RAC) and its predecessor the Strategic Co-ordination Group, where it has been submitted in July, October, January and May each year. The RAC paper was reviewed at its July meeting.

3. Proposed changes in all new projects (beyond feasibility stage) and site acquisitions, if any, are highlighted.

4. Start dates delayed by more than three months are also highlighted, together with those projects where the predicted expenditure for the year changes by more than 10 per cent prior to its start on site. Property Services Department has been delegated authority up to these levels to balance the programme.

5. The funding requirement for the Land & Building Capital programme for 2001/2002 was agreed by the MPA at £28.7m (including for vehicles, plant and equipment) inclusive of slippage of £5.06m. [The slippage factor represents an over subscription of the programme by 20 per cent of the budget to ensure that inevitable delays to project programmes do not produce an underspend. The slippage factor is generally reduced by 25 per cent each quarter as the programmes firm up during the year.]

Report for first quarter 2001/02

6. Now that the first quarter has passed and the expenditure on each project has been reviewed, it is clear that the current predictions more accurately reflect the likely individual annual expenditure. Therefore, the slippage factor has been reduced by almost 50 per cent to £2.348m. The situation will, however, be a subject of constant review and will be taken into consideration when receiving any new requests. In the light of this, the year start slippage factor will be set at 12.5 per cent of the budget, commencing 2002/03, this figure will also be subject to in year review.

Consultant fees

7. Following the introduction of multi discipline consultant appointments a review was undertaken to ascertain future funding requirements for consultants' fees. The result is that, due to the competitive nature of these appointments, the allowance has been reduced from 15 per cent to 11 per cent and will be the subject of regular reviews.

Significant developments in first quarter

8. Two significant projects – the new North East Territorial Support Group base and the extension and refurbishment of Wembley Police Station have been approved for a start on site by the MPA.

9. A decision remains to be made over the affordability of the refurbishment of the Hendon residential accommodation (Tower Blocks). This has been approved in principle by the MPA subject to affordability.

10. There have been no new major requests for projects to be incorporated into the capital programme during the last three months. However, MPA members have drawn attention to the poor condition of locker room and washing facilities in some of our older operational buildings. Of particular concern was the base for the Royalty and Diplomatic Protection Group at Walton Street. This property was built circa 1880 and apart from location, is unsuitable for its current use. The situation has been exacerbated over recent years by the issue of increasing amounts of personal equipment sometimes necessitating doubling of the size of lockers and the space they occupy. Whilst £400k had been allocated in the maintenance programme this year to improve this accommodation, identifying space to decant staff whilst work continues is proving difficult. Discussions are underway to identify a permanent, alternative location and a current valuation of the building is being undertaken.

11. It should be noted that many projects in the current programme incorporate new locker and washing facilities and many others have been provided in the recent past.

Summary of changes

12. A project by project list of changes is included see Appendix 1 and a full list of projects with costs and development status is included see Appendix 2.

Consultation

13. Copies of this report have been agreed with the Directors of Information, Finance and Personnel prior to its wider distribution. All changes have been notified to the relevant managers and F Dept. The report was reviewed at the July meeting of the RAC.

C. Financial implications

The consequence of the variations included in Appendices 1 and 2 is that the capital funding requirement for the 2001/02 financial year, exclusive of site acquisitions for new police stations, remains at £28,574,000. This figure includes a slippage factor of £2,293,000.

D. Background papers

None.

E. Contact details

The author of this report is Trevor Lawrence, MPS Director Property Services.

For information contact:

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

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