Acquisition of a second site for vehicle examination and forensic analysis

Report: 15
Date: 23 June 2005
By: Commissioner

Summary

This report seeks Member’s approval to expand the Metropolitan Police Service (MPS) Vehicle Recovery and Examination Service (VRES) through the acquisition of a second site and to co-locate the Specialist Crime Directorate (SCD) forensic vehicle examination function at this site.

The expansion of the VRES function and co-location of the SCD forensic teams will enhance the retrieval of forensic evidence (thereby improving crime detection rates) and improve the quality of collision investigations. The availability of additional accommodation will provide greater flexibility in the seizure of uninsured vehicles, and assist the partnership arrangement between Transport for London (TfL) and the MPS in regard to the ongoing Red Route and other initiatives.

A. Recommendation

Members are asked to approve:

1. The acquisition of a leasehold interest at a site in north west London to facilitate the expansion of the in-house Vehicle Recovery and Examination Service.
2. Capital expenditure for the contract works as set out in the exempt Appendix.
3. The disposal of the MPA’s interest in a site in south west London, to generate receipts as set out in the exempt Appendix.

B. Supporting information

Background

1. Approval was given at the Finance Committee in November 2002 for the MPS to establish an in-house VRES with the overall aim of:

• Extending the forensic examination service to all vehicles concerned in crime, including those reported lost or stolen (with an in principle agreement to lease up to four sites - one each in south, west, east and north London).
• Improving the quality of examination of vehicles involved in fatal and life changing collisions.
• Re-introducing a removal and storage service for illegally parked vehicles on red routes and bus lanes.

The intended outcome was to improve performance in relation to crime reduction rates, DNA retrieval and quality of evidence, as well as improving the free flow of traffic.

2. uthority was given to acquire an initial site in Charlton, south east London. Subject to the operational success of Charlton, it was agreed that further sites would be set up in other areas of Greater London.

3. Since the VRES was formed in 2003, the following results have been achieved against the performance baseline of 2002/3:

• Accommodated a 34% growth in vehicle recovery and storage, (increasing from 19,849 vehicles to 26,500 vehicles per annum).
• Managed a 347% growth in vehicles made available for forensic examination (increasing from 3,500 vehicles to 12,150 vehicles per annum).
• Supported the TfL/MPS partnership arrangement in regard to the ongoing Red Route and other initiatives.
• Addressed the demands of additional legislation including the execution of forfeiture and confiscation orders and the seizure of vehicles.

4. During the same period, the VRES function has absorbed inflationary pressures and achieved a 9% reduction in overall costs in addition to revenue savings of £4.3m. In accordance with the MPA Finance Committee’s decision of November 2002, the savings were transferred to reserves to meet the fit out costs of Charlton. That objective having been met, the remaining £1.8m has been set-aside in anticipation of the acquisition of the second site (see Exempt Appendix) .

5. The acquisition of Charlton has been a significant contributory factor to the overall improvements in performance outlined above. Direct benefits which may be attributed to the site include:-

• A reduction in vehicles previously stored on third party and other police premises.
• Provided a dedicated facility for the forensic examination and storage of vehicles.
• Provided the only MPS facility for the removal and storage of illegally parked vehicles.
• Allowed for the pilot recovery and examination of lost or stolen vehicles (Operation York), leading to the recovery of an additional 1,800 vehicles over a five-month period. This exercise resulted in the positive identification of over 200 suspects.
• Reduced the pressure upon the forensic site in south west London and the Central Evidential Property Store by the provision of overflow vehicle storage.

6. Best value benefits compared to pre Charlton include:

• £0.3m reduction in third party expenditure in 2003/4
• The capping of third party expenditure at £0.1m increase despite a 16% growth in demand in 2004/5.
• Improved cost recovery of £1.6m over 2 years
• £0.4m per annum saving in rental costs following the relocation of the Special Operations Removal Unit from central London.
• Release of the site at Grove Hall, which has been reallocated to the Transport OCU and is now funded by TfL.

7. However, some of the business benefits anticipated for the Charlton site have yet to be realised. Constraints on development have prevented the transfer of the SCD forensic vehicle examination team currently based in south west London. In addition, the ‘Garage Desk’ function and personnel have been unable to move to this site. The provision of a second site would address these constraints.

8. That said, the site provides significant operational benefit. The VRES now looks forward to the completion of the building works (Autumn 2005) when the site will be equipped with forensic and mechanical examination facilities to deal with vehicles concerned in volume crime and fatal collisions. Storage space will also be available for red route removals and seizures of vehicles seized under a range of legislative powers.

9. In spite of the in-house capacity provided at Charlton, the 34% volume growth pan-London over the past two years has necessitated an increased use of third party premises for forensic/mechanical examinations and the storage of vehicles. A further 620 vehicles were stored at existing MPS premises (typically, police station yards), where parking is limited and in conditions unsuitable for forensic analysis.

10. The growth in demand for recovery of vehicles is forecast to continue with a number of issues requiring a response. Whilst there was a welcome fall of over 15% in reported vehicle crime during 2004/05 and an improved detection rate of 5.4% (versus 4.0% in 2003/04) there is a need to recover and examine more lost and stolen vehicles. An MPS objective is to increase the number of offenders brought to justice as a result of forensic intervention. Consequently, significant, incremental growth (pan-London) of up to 30,000 vehicles a year is forecast.

11. TfL is seeking to remove all illegally parked vehicles from the streets of London utilising the Special Service Agreement with the MPS. The initial aim is to recover in the region of 2,000 – 2,500 additional vehicles per annum.

12. The Serious Organised Crime and Police Act 2005 provides Police Services with power to seize uninsured vehicles as of 1 July 2005. A pilot scheme in south Yorkshire showed a significant impact in disrupting crime. The Mayor for London supports the early introduction of this power and plans have been developed to seize 5,000 uninsured vehicles from London boroughs each year.

13. Financing the uninsured drivers project will be a challenge for the VRES. Provisional estimates (assessed upon existing contracts) indicate that if this volume of work is outsourced, expenditure could rise by £1.6m per annum. To provide the storage facility in house would though reduce the cost to £0.5m. In either case, a cost recovery opportunity of £0.6m has been assumed (based upon 35% of the vehicles being restored to their owners).

14. To respond to these requirements additional storage capacity will be required. The options to provide this capacity are to further increase the use of private garages or to acquire additional MPS car pound facilities.

15. Storage charges by private garages cost on average £12 per vehicle per day. The use of private garages for undertaking forensic examinations creates inefficiencies in that forensic examiners need to travel between locations to carry out their work.

16. The acquisition of a second car pound site in accordance with the strategy proposed would address the issue of providing appropriate facilities for the retrieval of forensic evidence, and minimise the cost of the storage facilities required. The proposed location of the second site in north west London would enhance accessibility for those in north London needing access to a VRES site, and cut down travel times between the vehicle collection and drop-off at a VRES base, providing a facility to complement the existing operation in south east London.

17. Additional business benefits could also be achieved by the co-location of the SCD forensic vehicle examination team and ‘Garage Desk’ staff originally intended to go to Charlton. Following co-location at the new pound, the south west London site can be released to obtain a capital receipt.

18. The proposed acquisition of a second site, and establishment of a volume vehicle examination facility, has the support of the MPS National Intelligence Model Corporate Tactical Tasking and Co-ordinating Group, the MPS Resources Approval Committee, and the Director of Forensic Services, SCD.

Proposed acquisition

19. An extensive property search has been undertaken by Property Services. A total of eight potential sites to the west of London were identified and assessed against criteria of location, sustainability, cost, and flexibility.

20. The site (detailed in the Exempt Appendix) has been identified as the preferred option with the best fit to business need. The site comprises 7.7 acres of former industrial land accessible from a major arterial road and within walking distance of an underground station. In addition, a 25,000 sq. ft warehouse adjoining the proposed second site, is to be leased and fitted out as a vehicle forensic facility, capable of undertaking all categories of examination.

21. Negotiations to acquire the site have reached an advanced stage and summary Heads of Terms are outlined in the Exempt Appendix. The acquisition is subject to obtaining satisfactory planning consent for a change of use.

22. On acquisition, a number of dilapidated buildings will be demolished. It is proposed that the main office block will be retained for use by the VRES. Buildings currently used for vehicle maintenance will be refreshed and equipped for mechanical examination befitting MPS requirements. A hard standing will be created to store in the region of 1,500 vehicles.

C. Race and equality impact

The planning and site development programme takes account of the Disability Discrimination Act 1995 relative to public access and employment of people with disabilities. All contract works will be undertaken in accordance with the Race Relations Amendment Act 2000.

Acquisition of a second site in north west London allows the MPS to provide a more equitable service pan-London, and is easily accessible by road and public transport.

D. Financial implications

Revenue implications

1. The costs of taking a leasehold interest are detailed in the Exempt Appendix. The overall running costs of operating the second car pound including all staffing and premises costs amounts to £2.9m per annum. Allowing for 80% occupancy of the pound, this equates to a cost per storage space of just over £6 per day and compares favourably to the provision of storage in private garages (an average of £12 per day).

2. The overall running costs include savings of up to £700k per annum anticipated in storage charges currently paid to garages mainly in respect of storage of vehicles involved in fatal accidents or concerned in crime. The transfer of these vehicles to the second car pound will provide not only savings in garage charges but also more efficient arrangements for the forensic/mechanical examinations.

3. Implementation of a revised MPS policy now means that in an increased number of circumstances, owners will be charged recovery and/or storage costs. This, together with an expanded TfL contract, means cost recovery will be enhanced. A prudent estimate of costs that could be recovered indicates an additional sum in excess of £1m. Therefore a budget of £1.2m p.a. is required to fund the second additional car pound The Medium Term Financial Plan for 2006/07 already includes growth in the VRES budget of £800k to meet the proposed expansion (in the light of the original MPA decision in November 2002).

4. Further savings (albeit marginal) will be realised in respect of the ongoing utility and maintenance costs of the accommodation released.

5. Details of the full year budget requirement for the second car pound are provided in the table below:-

6. The budget shortfall will be met from future underspends from the existing budget that will no longer be required to contribute to fit-out costs at the car pounds.

7. Should the Authority give approval for the acquisition of a second pound, then there will be start up costs incurred in the current year (2005/6). Actual amounts will be dependent on the speed with which new staff can be recruited, but current forecasts indicate that there are sufficient funds within the existing budget to meet any additional staff costs.

8. If the MPS did not acquire pound 2 and relied on private contractors to meet the projected workload. The impact would be:

• An estimated increase in third party expenditure, taking account of both anticipated growth and seizure of uninsured vehicles.
• The potential loss of the TfL contract; the MPS not being in a position to meet pan London service delivery.
• Lost opportunity of cost recovery relative to (a) seizure of uninsured vehicles and (b) the proposed lost or stolen scheme.
• The sale of the SCD forensic site south west London could not be realised. Account must also be taken of the fact that demand has now overtaken this resource.
• Anticipated efficiency savings in the forensic examination of vehicles would not be realised.
• These would result in both increased costs to the Authority and a loss of revenue / cost recovery.

9. However, there are further savings opportunities set out in the business plan, which include:

• Maximising the throughput at Charlton, once building works are completed.
• Realisation of further savings and cost recoveries from the second site, should it be approved.
• Introducing improved recovery contracts (low cost) to both sites.

10. Additional vehicles recoveries will also generate additional costs of payments to contractors for the removal of vehicles and transport to the pound. A charge is made to owners for the return of their vehicles to cover this cost. The amount paid to contractors and the charge to owners is currently set at £105. In a proportion of cases, the owner does not retrieve the vehicle and hence the charge is borne by the MPS.

11. However, new contract arrangements are to be introduced which it is hoped will reduce the amount paid to contractors for removals. The charge to owners (set by statute) will remain at £105. Any reduction in the amount paid to contractors will reduce the net operating cost of the operation.

Capital implications

12 The capital cost will be funded through existing Revenue Reserves and the disposal proceeds as detailed in the Exempt Appendix.

E. Legal implications

1. Significant risks have been evaluated and considered and steps taken to minimise or manage such risks.

2. All reported matters are considered to be within the powers of the Authority.

3. Necessary consents for undertaking the works to the property will be obtained.

4. Suitable leasehold documentation will be entered into by the MPA.

F. Background papers

• Finance Committee Paper – ‘Business Case for a Metropolitan Police Vehicle Recovery and Storage Service – 14 November 2002

G. Contact details

Report authors: Alastair Thompson, Director of Logistical Services and 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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