Estate Updates

Report: 12
Date: 23 September 2004
By: Commissioner

Summary

This report updates members on the latest information on Estate and Property Services matters.

Approval is sought to delegate approval of disposals under the South East London Public Finance Initiative (PFI) to the Clerk, MPA and Director of Property Services (jointly) even if above current delegated limits.

A. Recommendation

1. that Members note the information on current estate issues.
2. that Members approve the delegation of PFI related disposals as recommended in Section B paragraph 8.

B. Supporting information

Introduction

1. At the Finance Committee on 24 October 2002 it was agreed that a report on estates issues would be produced at alternate meetings. Source documents can be found in previous relevant reports and also in the Members' Library.

Trenchard House, Soho

2. The unconditional sale of this former section house is planned for completion in early September.

Former MPA residential property short term let to Housing Associations

3. The dispute with Housing 21 is still being considered by an appointed expert and it is therefore not possible to comment further at this stage. A full report will be made as soon as the expert’s decision is available.

Glidewell / Co-location with Crown Prosecution Service (CPS)

4. Matters involving the estate and the expanded Criminal Justice Unit continue to proceed well and within capital and revenue budgets.

Bow Street (Police Station and Magistrates Court)

5. Joint re-marketing of this property has commenced, with the Greater London Magistrates’ Courts’ Authority, and bids are expected by 17 September 2004. Once detailed assessment of the bids has been completed and we are assured that best practicable price is obtained, the Committee will receive a detailed report. There has been significant media interest in the disposal.

Maurice Drummond Section House

6. This former section house in Greenwich is beyond economic repair and modernisation (e.g. to provide en suite facilities and to meet disability, religious and gender discrimination legislation) and the rooms are no longer needed to meet demand. The property has been marketed and a disposal report will be brought to Committee as soon as practicable.

PFI Disposals

7. The business case approved by the MPA for the new police stations provided under PFI required the disposal of a number of existing buildings. The Committee further endorsed the approach that if the Service wished to retain (e.g. to accommodate growth in officer numbers or Safer Neighbourhoods) any of these stations / buildings then Committee approval should be sought.

The current position is as follows:

8. Exempt Appendix 1 details the PFI business case disposal figures and Committee approval is sought to delegate, to the Clerk MPA and Director of Property Services (jointly), the approval of these sales, without further referral to Committee, subject to the business case figure being achieved as well as “best consideration that can reasonably be obtained” with a valuation certificate to support this.

9. This will ensure swift approval processes where proceeds can be extracted above the delegated limit of £2m already in place and conferred upon the Director of Property Services.

Central London Estate

10. Frank O’Neill (formerly Otis House) was occupied by the BOCU in July and the remaining space will be occupied shortly.

Action under Delegated Powers (Director of Property Services)

11. The following significant items have been actioned under delegated powers.

• Numerous operational licenses/indemnities and short term/ operational matters have been signed under delegated powers (particularly in relation to Notting Hill Carnival).
• A number of day to day estate matters have been signed under delegated powers.
• The annual report and forward programme list for facilities management and maintenance has been submitted to The Treasurer and agreed as required under Financial Regulations.
• The regular report to the MPA detailing single tender action in Property Services has been submitted to The Treasurer and approved in accordance with the Financial Regulations.

Interim Changes to Facilities Management Outsourced contracts

12. Transition is now largely complete.

Review of Residential Estate Strategy

13. A draft proposal is currently the subject of internal consultation and when completed the MPS Management Board will consider recommendations to bring forward to the MPA – probably in Spring 2005.

PFI Projects

14. Demand levels at Gravesend are still high and are under consideration in relation to budgets.

Property Services Operational Plan

15. When the MPA approved the new estates strategy (Building Towards the Safest City) it was acknowledged that it would take some two years to draw up an implementation plan and up to ten years to roll out action. To address the interim period Property Services has published an “Interim Operational Plan” to ensure service priorities are met so far as is possible. A public version of this document has been placed in the Members’ library.

Safer Neighbourhoods

16. Progress to complete the 2004/05 programme is on track (96 sites) and partner / stakeholder engagement remains very positive. To meet demanding timescales some work is being undertaken in advance of legal formalities. Each case is fully risk assessed and is not considered significant.

17. Given current uncertainties around the 2005/06 budget it is not considered prudent to fully recruit permanent staff to deliver the 5 year plan at present. The successful interim delivery team are performing well and bringing the programme in within budgets and will be retained.

C3i Building Contracts

18. Outturn forecasts remain within the previously reported and approved aggregate figures and practical completion has been achieved for all three buildings without any adverse impact on occupation / fit out. As soon as all final works are complete a post contract review will be initiated. The new Facilities Management provider is now in place and operating smoothly.

Hendon Swimming Pool

19. Members will be aware of the tragic circumstances since when the building has remained closed. Until the situation about possible action from the CPS or HSE is clearer a review has concluded that it would be inappropriate to seek permission to carry out works to the building. Management Board have already concluded that, as the facility is not required for future training, it should be closed and the building put to an alternative use.

Property Capital Programme

20. The contracts have been let and work commenced on the Acton Police Station project.

21. Delays have been incurred in obtaining planning permission on one project.

22. Members will recall that we are still dealing with slippage from 2003/2004. Some slippage remains but this primarily relates to start on site dates. All projects are currently within budgets and completion programmes.

23. The C3i related projects (IBOs and CAD strip outs) are delayed due to changes in the primary C3i programme upon which Members have been briefed.

24. Consideration is in hand to bring forward reserve schemes and these will be reported to the Committee as appropriate for approval.

25. Additional projects are entering the programme as schemes of realignment are presented under the Building Towards the Safest City Strategy. Capital costs are being met by related property exits / unbudgeted disposals.

26. Overall, and following a major review by the new interim Construction Director (Andy House), we expect the Property Capital Programme to out turn close to budget.

Cell capacity

27. The results of the present Service concerns and the Service Improvement Review (SIR) have been reported to the Authority.

28. Proposals to bring up to standard and hence back into use some 84 cells are currently under consideration.

29. Next year’s capital programme did envisage one new custody cluster development and feasibility work has commenced. When the scheme detail has been agreed it will be reported to Members for approval.

Security Projects

30. A number of physical security projects and related transactions are presently underway and will be reported orally in the Exempt part of the meeting by way of updates for the Committee. The detailed approvals will be taken through agreed restricted approval routes for security reasons.

Asset Management Plans

31. Detailed asset management plans are being prepared for all the MPA estate seeking to address the needs of operational command units.

32. Preliminary results have shown the AMP approach to be highly relevant and promising.

West London Relocation/Expansion

33. The Committee approved this transaction earlier in 2004. Legal documentation is proceeding well on this highly complex transaction and a verbal update will be given at the Committee meeting.

34. Internal MPS Staff concerns are abating as more people visit the planned location and the Steering Groups within the MPS address the issues of concern.

35. It will be necessary for the owner to negotiate some adjustments over current town and country planning constraints before contracts can be signed.

36. The following significant items have been actioned under delegated powers.

New Projects commenced

37. Members are advised of the following headline projects which are considered to be of significant interest:

38. Marylebone PS and Section House – Negotiations commenced for redevelopment and alternative provision.

39. Major works to Charing Cross Police Station – custody and front office.

40. A review of the design and “branding” both within front offices on our buildings – this will include maintenance and upkeep issues.

C. Race and Equality impact

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.

D. Financial implications

1. Any financial implications from the above items will be reported in full to the relevant committees at the appropriate time. Unless otherwise stated no new implications are anticipated; or are already within existing approved budgets.

E. Legal implications

1. Contract or other documentation in these matters will contain all the usual commercial terms and provisions, and no unduly onerous or unusual terms – except where reported otherwise.
2. Significant risks have been evaluated and considered and steps taken to minimize or manage such risks.
3. All reported matters are considered to be within the powers of the Authority.
4. All/any disposal represents the best consideration that can reasonably be obtained – save where stated otherwise.

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

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