Estates update

Report: 8
Date: 21 September 2006
By: Commissioner

Summary

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

A. Recommendations

That

1. Members note the information on current estate issues; and
2. approve the retention of the property at Penhryn Road, Kingston for Initial Police Learning and Development Programme (IPLDP, see paragraph 36)

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.

Safer Neighbourhoods

2. As reported previously, proposals to accelerate the rollout of the Safer Neighbourhoods programme will condense the time in which to deliver Safer Neighbourhoods bases. We are working with Finance services to resolve funding issues and in particular capital funding concerns in 2008/09.

Procurement related issues

3. With Procurement Services, work continues to build and enhance Procurement support in Property Services.

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

4. Property Services are working with TP, and other Business Groups, to develop a stakeholder consultation and communication strategy that will meet the MPA needs. It is planned to present this strategy to the MPA for discussion/approval in October.

5. To assist BOCU Commanders, communication ‘toolkits’ similar to those prepared and adopted for Safer Neighbourhoods (as available on the MPS intranet site), have been developed to support the consultation/communication of the overarching Borough based strategies and the roll out of the custody centres initiatives. Feedback from TP continues before these toolkits are finalised.

Acquisitions and disposals

6. There have been no acquisitions to date during this financial year.

7. The sale of Pickering House, Ealing (a former residential property) and New Malden Police Station, Kingston, completed earlier this year.

8. Following receipt of the final payment in regard to Bow Street Police Station and Magistrates Court, the property was sold on 27 July 2006.

9. A number of surplus residential properties have also been sold during this financial year.

10. Following the request of MPA members, in November 2005, a schedule of disposals completed to 31 August 2006 is shown in the exempt Appendix 1.

Property Capital Programme

11. A number of construction projects have been completed since the last report, these include: refurbishment of Buckingham Gate; replacement of Wapping Pontoon; training rooms for C3i at Hendon; and refurbishment of Eagle House, Kingston.

12. The re-phasing of a number of projects due to delays in regulatory approvals and related matters, and the outcome of the stakeholder consultation and communication strategy needs of the MPA will result in a significant under-spend against budget for this year’s capital programme and will impact on earlier budget submissions for 2007/08.

13. To mitigate this, Property Services will bring forward a number of smaller projects; although the impact on the overall capital spend will be minimal in the current year. In addition, Property Services have identified a suitable freehold site in Hammersmith and Fulham as a replacement for those teams located at DPG premises in Kensington and Chelsea, which will be brought forward to the MPA for approval soon with a recommendation that acquisition costs are met through over-programming.

14. Property Services continue to work with Directorate of Information (DoI) to finalise the revised occupational requirements of DoI for one of their South London locations, and proposals for a further site in North London. Work is also going for IT templates to meet the needs for new patrol bases / custody centres.

Safer Neighbourhoods

15. At 30 July 2006, space for 57 teams has been delivered during this financial year. Property Services remain on course to deliver a full year target of 180 for the current financial year.

16. Borough visits continue for the 2006/07 and 2008/09 roll-out to agree a Safer Neighbourhoods accommodation plan taking full account of Property Services Asset Management Plans.

17. The pace of available premises is now ahead of the in-year funding which is good news.

Residential Estate Strategy update

18. Outstanding contractual arrangements with Housing 21 have now been settled, and those properties formerly managed by Housing 21 have now been returned to the MPA. All but one have been returned with vacant possession. The management of the one property returned with tenants in occupation has been temporarily assigned to a Registered Social Landlord who manages other MPA Properties on a temporary basis, pending a more permanent solution.

19. Following approval at the Finance Committee in February 2006 to exit the majority of the MPA’s residential estate, holding a core estate for operational reasons, Property Services have undertaken a series of road shows for those occupying units to explain in detail the MPA’s plans for the residential estate, and the options available to individuals going forward. The road shows were well attended and support was also given by the Police Federation, who have been highly supportive, both to Property Services and to individual Police Officers. Further communications have been sent to those occupying residential properties owned by the MPA, including individual letters and intranet notices. Property Zone, the Property Services’ team set up to assist colleagues looking to purchase property by highlighting options, funding streams etc., have also run a number of presentations / open days in recent weeks to highlight options. The opening up of the Property Zone function to all MPS colleagues has been welcomed by colleagues and commercial operators alike. Property Services continue to work successfully with commercial operators who focus on the provision of key worker housing and those who assist key workers in purchasing properties to ensure the options available to colleagues are as broad as possible.

20. In line with the residential estate strategy, surplus properties continue to be sold in the open market via auction / private treaty as appropriate.

Central London Asset Management plan

21. As part of the overarching business case, a further floor has been let on a short-term basis to Transport for London (TfL) in Empress State Building, to mitigate revenue costs. The expiry of this lease, which is co-terminus with other floors let to TfL will enable the MPS to take occupation of further floors in the building in due course.

22. Plans to decant Wellington House prior to lease expiry in June 2007, the sale of Sunbury and the planned occupation of Cobalt Square, continue in line with prior MPA approvals.

Pan London Asset Plans

23. Borough based asset plans are currently being reviewed by TPHQ with BOCU Commanders to ensure all requirements are catered for. In addition to the ongoing roll out of Safer Neighbourhood units, each Borough will include solutions for custody, patrolling officers and accommodation for supporting office based functions.

24. Over the course of the coming months, asset strategies will be finalised for other business groups, the Hendon estate, and a number of larger pan London properties where business groups share occupation.

25. Solutions in regard to training, including specialist training needs will be developed, and reported to the MPA, when business cases have been finalised/approved.

26. Requirements for Heathrow are currently under discussion with those teams based at the Airport. Occupational costs are being highlighted to assist in the current negotiations with Heathrow Airport Limited in regard to the recovery of costs (NIC).

27. Initial submissions have been sent to the Olympic Development Agency (ODA) in regard to requirements and legacies for the London 2012 Games to assist in the forthcoming planning application that will be submitted by the ODA. Property Services are working with British Transport Police to ensure the needs of both organisations are met, but not duplicated, and to ensure that suitable provision is made for Policing within the Stratford City development. Initial meetings have also been held with the Thames Gateway Development Corporation, and other regional development groups involved in the roll out of Thames Gateway Schemes.

Car parking

28. In addition to spaces available within existing MPA owned/occupied properties, £1.5m p.a. is spent on the leasing of additional car parking spaces in Central London, primarily in Westminster and Kensington and Chelsea. As part of the 2006/07 MPS spending review, Investment Board directed Property Services to work with operational colleagues to reduce car parking requirements and the annual cost of leasing spaces to £500,000 p.a.

29. Consultation has taken place over the past few months with some colleagues taking dramatic steps to reduce demand to meet only essential operational and DDA needs. Take up has been slow in other areas, and there has been resistance from some groups to make reductions. The £500,000 target will not be met in 2006/07, although Property Services will now start to terminate agreements in regard to spaces where no business case has been submitted to justify the need for spaces.

Operational Support Group

30. Property Services have been heavily involved in recent policing operations (for the MPS and other Forces) in response to counter-terrorist activities, and this work is in ongoing.

Insurance issues

31. Property Services are working with the Risk Management team within Strategy, Modernisation and Performance Directorate, in regard to the renewal of insurance cover for the property related estate for the forthcoming 12 months.

Planning issues

32. Property Services have continued to work closely with the GLA, London Development Agency, London Thames Gateway Development Corporation and Local Planning Authorities; responding to the consultation process in regard to the 5 Sub-Regional Development Frameworks, Area Action Plans, Opportunity Area Frameworks and other Planning Policy documents. We continue to liase with the GLA in regard to the forth-coming review of the London Plan.

33. Representations have also been made to Elmbridge Council in respect of the Imber Court Sports Club / Operational Centre as part of the planning authority review of their “local plans”. The representations made follow best practice approaches around asset management and regional guidance from HMG in respect of property assets.

PFI Business Case – Retention of Penhryn Road, Kingston

34. The original SEL PFI Business Case took no account of receipts generated from the disposal of properties that were to be released. Penhryn Road, Kingston was one of these properties.

35. The property is held on a freehold basis and a proposal has been put forward to utilise the building to provide accommodation for the IPLDP business case led by Human Resources Directorate.

36. Approval in principle is sought in this report to retain the property subject to the HR IPLDP business case being approved by the MPA (or under delegated powers as appropriate).

Property Services staffing etc

37. Since the last update, we are pleased to advise Members that significant progress has been made to fill senior roles. Peter Ross has joined as Construction Director, Brita Sread has joined as Commercial Operations Director and Gordon Russell has joined as Facilities Management Director. Recruitment of the Operational Support / RCOS Director post is underway. This brings the Property Services senior management team up to full strength for the first time since 2002.

38. Recruitment difficulties continue in our Asset Management, Property Procurement and Engineering teams and we are progressing these issues with MPS HR and MPA senior officers.

Facilities Management (outsourced re-tender / realignment)

39. FMIC transition continues to proceed as planned. The service provider (FMS) tendering progresses as planned with some 109 “archive boxed” bids being assessed / evaluated.

40. Certain other minor contracts are being absorbed into the FMIC / FMS service provision arrangements (e.g. the boarding up operational policing needs following the execution of warrants). This will achieve both enhanced value for money, audit control and expanded service delivery for front line policing.

SoCA and Inter Agency Property aspects

41. Property Services has launched a review of charging regimes for third party use of our services to ensure full recovery of costs and appropriate market related payments for our expertise / facilities are being levied.

42. An exploratory meeting with SoCA has proved most helpful and is being actively pursued.

Property “deals” under consideration

43. With the size and scale of the MPA estate, it is inevitable we are able to pursue financially, and operationally, beneficial property opportunities and a number of these are under active consideration. Should Finance Committee wish to be sighted on these we can expand and extend the exempt aspects of this report to cover these situations.

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.

5. FMS and related pensions and TUPE issues are being addressed via the Outsourced Contracts Steering Group and upon which the MPA are represented.

Abbreviations

BOCU

Borough Operational Command Unit

BTSC

Building Towards the Safest City

DDA

Disability Discrimination Act

DoI

Directorate of Information

DPG

Diplomatic Protection Group

FMS

Facilities Management Services

GLA

Greater London Authority

HMG

Her Majesty's Government

HQ

Headquarters

IPLDP

International Police Learning and Development Programme

MPS

Metropolitan Police Service

MPA

Metropolitan Police Authority

MPA FC

MPA Finance Committee

NIC

National Insurance contribution

ODA

Olympic Development Agency

PFI

Private Finance Initiative

RCOS

Resilience, Compliance & Operational Support

SOCA

Serious Organised Crime Agency

TfL

Transport for London

TP

Territorial Policing

TUPE

Transfer of Undertakings (Protection of Employment) Regulations

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. Support to security operations continue to place financial demands on Property Services, and the estate. Unless otherwise stated, other financial implications are manageable within existing approved budgets.

2. The planned retention of the PFI (SEL) site at Penhryn Road, Kingston, is capable of being absorbed in terms of the financial impact within the MPS IPLDP business case. Budget virements to support this property retention will be dealt with through subsequent reports by Finance Services.

E. Background papers

None

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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