Estate updates

Report: 09
Date: 24 October 2002
By: Commissioner

Summary

This report updates members on the latest information on estate matters. Paragraphs 17 and 25 recommend actions that require approval in respect of valuation of the estate for accounting purposes and consultancy appointments.

A. Recommendation

That

1. members are invited to note the information update on current estate issues; and
2. members are invited to approve the actions in paragraphs 17, valuation of the estate for accounting purposes and 25, consultancy appointments.

B. Supporting information

Norman Kendall Section House

1. Further investigations have shown that the disposal of this property is impractical in relation to continuing and adjoining police activity given the constraints of the site (shared with East Ham Police station). Given pressures in the estate for the Borough of Newham (additional officer allocation) it is proposed to retain the property for alternative police use.

Maurice Drummond Section House

2. Planning investigations continue and the previously reported sale is not being progressed. Operational use continues in part and action is in hand to relocate this in order that a new disposal proposal can be prepared for consideration by the MPA.

Trenchard House

3. A separate exempt update report is included on the agenda for this meeting (agenda item 19)

Rochester Row

4. Is subject to a separate report within the MPA committee cycle recommending final terms for disposal.

Bow Street

5. The development agreement for the sale / grant of leases (including the creation of a Police Museum) envisaged a certain scale of commercial uses. Planning consent has been refused and hence discussions are ongoing with the lead developer to explore alternative options. A further report will be made as soon as discussions reach a conclusion.

Old Street

6. A report detailing the offer received from the Community Action Project for this site has been referred for discussion to the Co-ordination and Policing meeting on 21 October.

Arbour Square

7. This vacant property was earmarked for disposal but this has been held back pending resolution of increased demands on the estate in East London.

Capital programme procurement

8. A review is ongoing to improve affordability and value for money in light of increasing and changed demands emerging from policing plans / priorities. A full report is expected to the MPA in December 2002 or January 2003.

Surplus residential units let to Housing Association

9. Discussions are ongoing.

Glidewell

10. As previously reported no further expense is being committed to this project until such time as a full costing is available along with a partnership / exit strategy. Internal ACPO lead responsibilities have recently changed and discussions are ongoing.

South East London (SEL) PFI variations

11. Following approval at the Finance Committee meeting held on 11 July 2002 to use the change control mechanism for certain elements within the SEL contract, variations have been issued to contractors revising cell designs to include mirrors and new doorway bulkheads and changes for ‘corporate’ front office layout. Prices have been provided by the contractor and can be contained within the approved overall limit. The changes are considered essential because of health and safety implications and, in the case of the front office variations, are important in terms of the interface with the public.

12. Variations to office layouts to meet the requirements of the Serious Crime Group are likely to cost considerably more than the approved amount and designs have yet to be finalised and are excluded from this report. Previous approvals (excluding Serious Crime Group items) were based on estimates of lump sum and annual charges. Final figures varied (between annual and lump sum amounts) but were containable within the envelope of the previous approval and have hence been approved. The committee is advised of this as a matter for the record only.

13. Final cost information is awaited from the contractor of changes requested by the Serious Crime Group OCU Commander and will be presented to the MPA in a future report.

Front office upgrades

14. Redesign work to ensure best affordability and maximum deployment is still ongoing.

Hounslow Heath

15. Tenders have been received from potential planning consultants and are being evaluated. Disposal plans will be reported in future updates to the Committee. Achieving a base line disposal figure is part of the South East London PFI Contract so the sale effectively generates only a cost neutral situation for the MPA. Sale below the base line creates a liability and as figures emerge the Treasurer is being updated.

Tintagel House

16. In light of changing policing needs and the contractual framework for this short leasehold property it has become necessary to reassess and re programme the planned refurbishment. Discussions and specification options are being reviewed in order to deliver value for money in light of the financial structure of the short leasehold contracts. Meantime, the revenue costs for Tintagel House pose a budget pressure this financial year.

Valuation of the estate for accounting purposes

17. With the MPA subject to local authority accounting requirements it is noted that valuation of the estate has not kept pace and there is an urgent need to rebuild the asset valuation and certification base.. Action is in hand to appoint external valuers to undertake this major task. The Committee is requested to authorise the Director of Property Services to issue OJEC notices and proceed to appoint a valuer, in consultation with the lead Member of the MPA and the Treasurer, as a matter of urgency. Actions will be reported through update reports.

Equality and diversity implications

18. As a result of a member enquiry the Director of Property Services has reviewed Property Services contract terms in light of wider MPA / MPS policy. Consultations continue but it is believed improvements could be made and a further report will follow.

Capacity of the estate to accommodate extra officers

19. Members will be aware that funding for additional officers is primarily focused on revenue budget headings related to direct pay costs and incidental support costs. There is also a requirement to invest in other infrastructure and property. On the estate at Hendon where the additional funds are however of limited efficacy and the situation creates ongoing estate revenue pressures (primarily guarding and wardens). A further report on this is in preparation.

20. Based on self contained Borough based policing the estate is technically at capacity (based on current policing priorities) at an officer BWT of c28,000.

21. Property Services is preparing a strategy to address these issues (December 2002).

22. In the meantime a capacity study is indicating that the MPA/MPS needs to be more flexible around the concept of Borough (TP) policing if physical accommodation is to be found to meet this ongoing but immediate need. The only affordable solution is to exploit the total capacity of the estate by ensuring all properties move to best practice in terms density of use and which will involve “cross borough” collaboration. In Special Operations the issue is more complex and work is ongoing to establish options for the necessary quick fixes.

23. Members are invited to note this situation.

Energy and sustainability

24. Property Services and MPA/MPS colleagues are appearing before a GLA Committee on the 3 December to answer questions. Members are reminded that the desired move to greater use of renewable energy poses cost pressure issues that have been reflected in the medium term financial projection and MPA Budget reports.

Consultancy appointments

25. Property Services utilises a number of framework and other appointments to support its activities. These include property agents, valuers, planners and the like. A number of contracts are subject to an extension phase or due for renewal and the opportunity is being taken to rationalise arrangements to achieve better value. As a result of this rationalisation some contracts will be subject to OJEC procedures. The Committees guidance would be welcome as to whether it is necessary to separately report on these through the appointment and OJEC phases. It is recommended that the Director of Property Services be authorised to action these appointments without separate reporting and subsequently to advise on the appointments through the update paper. The MPA lead member and the Treasurer would be consulted throughout.

C. Equality and diversity implications

Apart from those specific comments in paragraph 18, any equality and diversity implications arising from the matters in this report are being assessed as part of the individual project or item and will be reported separately to the Committee at the appropriate time. Unless stated to the contrary no implications are believed to arise.

D. Financial implications

1. Any financial implications from the above items will be reported in full to the relevant committees at the appropriate time.

2. The items regarding Trenchard House, Maurice Drummond House and Norman Kendall House are outside the main-stream capital programme contained in the approved MPA Budget Book. In effect the capital spend on the latter two were proposed to be funded by the sale receipts from Trenchard; as is the refurbishment plan for Tintagel House. Hence the deferral of spend on Maurice Drummond and Norman Kendall and the deferral of the Trenchard sale / Tintagel refurbishment are cost neutral in 2002/03 in capital terms. While the changes reported here have no current overall effect in capital terms, continuing occupation of Tintagel House beyond August has produced revenue budget pressures estimated at some £2m.

3. Item 25 on consultancy appointments is expected to be containable within revenue budgets and if this is not achievable a further report will be submitted.

4. Item 17 on valuation of the estate for accounting purposes will require significant funds. Work is ongoing with the Director of Finance to contain this within existing budgets but if this is not possible a further report will be submitted.

5. Item 19 on capacity of the estate to accommodate extra officers may raise further financial pressures as yet undefined.

E. Background papers

Numerous source documents can be found in past reports.

F. Contact details

Report author: Alan Croney, Director of Property Services, MPS.

For more information contact:

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

Send an e-mail linking to this page

Feedback