Estates update

Report: 07
Date: 17 November 2005
By: Commissioner

Summary

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

Item 14 seeks approval to the continuation of the interim policy pending approval of the Residential Estate Strategy.

A. Recommendation

That

1. Members note the information on current estate issues.
2. Members approve a continuation of interim delegated power to the Director of Property Services to reinvest residential sale proceeds in “block purchases” to replace disposed of historic stock based upon a “unit” cost rather than “block” cost assessment. (Item 14 refers.)

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.

Service review

2. Proposals to accelerate the roll-out of the Estate’s Strategy and the escalation of the Safer Neighbourhoods programme will impact on the delivery timetable. A number of initiatives (including the custody centres concept) await Investment Board approval prior to report to the Authority, further funding deliberations (including revenue implications) are also still to be resolved.

Safer Neighbourhoods

3. At 30 September, space for 97 teams has been delivered against a full year target of 160 teams in 2005/06. It is expected that accommodation for approximately 200 teams will have been provided in year. In terms of the overall project performance, space for 300 Safer Neighbourhood Teams will have been delivered by the end of the current financial year. Revised budgets have been agreed to meet the expectations of the accelerated programme but it has been possible to reduce (in the years concerned) some property related costs through greater sharing of accommodation, brigading of teams and revised information technology requirements. Facilities Management costs in the early occupation periods are now becoming available and suggest a possible trend lower than anticipated actual costs (revenue) although the budgeted costs are still regarded as accurate for budgeting in “average” terms.

4. Borough visits have commenced for 2006/07 rollout to agree a Safer Neighbourhoods accommodation plan taking full account of Property Services Asset Management Plans and this may help to identify opportunities for releasing other outdated and expensive properties in conjunction with Safer Neighbourhood targets by combining the change programmes across both work streams.

Acquisitions and sales

5. Completion of the purchase of The Bilton Centre and a unit on the Perivale Industrial Estate, for the second VRES site, was made on 21 October. Contracts were exchanged on the acquisition of a warehouse building in Enfield, to be used by Enfield BOCU as a Patrol Base. Contracts have also been exchanged on the sale of Peel House, 105 Regency Street and completion is expected in December 2005. Surrender of the lease on the HSBC Bank adjoining New Scotland Yard in Victoria Street was completed in October. Contracts have also been agreed for the sale of Aybrook Street. Both Aybrook and Peel house transactions are part of the MPA approved Central London Accommodation Plan and proceeds are ahead of expectations. In respect of the Central London Plan the Authority decision to exit and dispose of the west London training facility is now the only outstanding disposal.

Property Capital Programme

6. Overall projects remain on and within budget and timescale although some rephasing has been necessary due to delays in regulatory approvals and related matters.

Her Majesty’s Inspectorate of Constabularies (HMIC) Baseline Assessment October 2005

7. A copy of the HMIC Baseline Assessment report has been forwarded to the Members’ library. The report contains many favourable references to MPS estate matters and shows that HMIC are well aware of the challenges faced in repositioning the estate.

FMIC Outsourcing Strategy

8. The tendering of FM outsource services (approved by the MPA in July 2004) covers four strands: (i) Facilities Management Information Centre (FMIC); (ii) FMS (Facilities Management Services) Contracts; (iii) Major Works Consultant; and (iv) Development of the Property Services Client unit.

9. The FMIC Best and Final Offers (BAFO) have been received from both bidders and are being evaluated. Subject to MPA Finance Committee approval, it is anticipated that the preferred bidder will be selected shortly. A briefing to Members prior to Committee report is being arranged. The successful bidder will commence mobilisation in January 2006 and the system will go live in January 2007 after a 12 months period of service development. The new service will drive improvements in customer service and value for money.

10. The FM tendering strategy has recently been reviewed in light of financial and operational pressures. The plan is to procure 2 FMS providers (for North and South) and structure the contracts to maximise control and influence on key subcontracts within each FMS supplier. Invitation to Qualify documentation has been prepared and it is anticipated that the Official Journal of the European Union (OJEU) advert will be reported to the Authority and then placed in the near future.

11. Both incumbent FM providers have been kept informed on programme and negotiations are ongoing to ensure a smooth transition to the new supply chain contracts.

London 2012

12. The current legislation before Parliament has enabled representations to be made on matters of concern to both the MPA and MPS. In conjunction with the Deputy Chief Executive of the MPA consideration is being given to promoting amendments where appropriate and to meet Parliamentary timetables.

MPA/MPS Estate Strategy – “Building Towards the Safest City” (BTSC)

13. Members have previously agreed (Estates Update 23 June 2005) that the planned review of the overall estate strategy should be postponed from Summer 2005 so that it could take account of the “Service Review”. Service Review is subject to separate reporting to the MPA but there is a clear connection with the estate strategy. Work is underway to produce an update estate strategy but no major changes are expected apart from accelerated “roll out” once there is an appropriate level of funding certainty on both the Revenue and Capital accounts. Draft revisions are expected to be available to key stakeholders and members for consultation in early 2006 with a report on a proposed updated strategy coming to Committee by no later than March 2006.

Residential Estate Strategy update:

14. Members approved an interim strategy at the Finance Committee meeting on the 7 December 2004. Disposals in accordance with that decision are ongoing and certain replacement transactions are at an advanced stage of negotiation. The original approval ran to June 2005 and approval is sought for a continuation of this arrangement.

15. Following Service Review Property Services is in consultation with internal stakeholders, under the Service Partnership agreement, and anticipates taking a strategy for consideration by members through appropriate routes and hence to this Committee early in 2006.

Central London Accommodation Strategy - Empress State Building:

16. Fit out of all current MPA/MPS space is now complete just over a year after the deal was signed.

17. A formal report on the business case delivery will be made in early 2006 as agreed.

18. Post occupancy surveys are under way to ensure maximum utilisation/reallocation and to ensure Service Review changes are not resulting in reduced efficiency of usage.

New Scotland Yard:

19. The final stages of the security measures have now been completed.

20. Pending the result of the Counter Terrorism funding bid a review is ongoing as to space implications and the options available to accommodate growth.

Members update session:

21. Property Services provided an informal update session for Members and MPA officers on the 18 October 2005.

List of abbreviations

MPA

Metropolitan Police Authority

MPS

Metropolitan Police Service

BOCU

Borough Operational Command Unit

HMIC

Her Majesty’s Inspectorate of Constabulary

VRES

Vehicle Recovery and Examination Service

FM

Facilities Management

FMIC

Facilities Management Information Centre

BTSC

Building Towards the Safest City

BAFO

Best And Final Offers

OJEU

Official Journal of the European Union

C. 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.

D. Race and equality impact

1. 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.

2. The Section House recommendations, if approved, will allow greater allocation flexibility to address concerns and issues facing certain officer groups hence improving responsiveness.

E. Financial implications

1. Any financial implications from the above items will be reported in full to the relevant committees at the appropriate time. Support to Operation Theseus and associated operations is placing significant financial demands on Property Services and the estate. Much of this is expected to be reimbursed by Special Government Grant. Unless otherwise stated, other financial implications are manageable within existing approved budgets.

F. Background papers

None

G. 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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