Estate update

Report: 9
Date: 20 September 2007
By: Director of Strategic Finance on behalf of the Commissioner

Summary

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

A. Recommendations

Members are invited to note the information on current estate issues.

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. Phase 1 of the property programme is virtually complete with just four fit-outs in the final stages of completion. Procurement action has commenced for Phase 2 of the Safer Neighbourhood programme and is covered by a separate Finance Committee report.

Procurement related issues

3. Considerations to build and enhance procurement support to Property Services continue. A review is currently being undertaken by CapGemini.

MPA/MPS Estate Strategy

4. As agreed at Estates Oversight Group, the MPA/MPS Estates Strategic Plan (ESP) will be updated on a regular basis. It is not proposed to continue to report on this item in future “Estate Update” reports as the matter will be covered elsewhere.

Acquisitions and disposals

5. The lease in respect of Warspite Road, Greenwich has been completed; the property will provide the Patrol Base facility for Greenwich Borough Operational Command Unit (BOCU). A freehold purchase has been completed in regard to a property Spilsby Road, Havering; the property will provide the Patrol Base for Havering BOCU. An agreement to lease is shortly to be exchanged for a Patrol Base and custody facility in Barking and Dagenham to support the BOCU.

6. Since the last reporting period, the sale of Ellerton Road, Kingston and St Margaret’s Road, Richmond have completed. A payment was received in regard to Regency Street, W1 relating to the terms of the planning overage clause agreed with the purchaser at the time of the disposal in 2004.

7. Schedules of Commercial and Residential disposals completed since 1 April 2007 are shown in exempt Appendices 1 and 2.

Residential estate strategy update

8. In line with the approved MPA Residential Estate Strategy, Property Services continue to communicate with those individuals occupying residential properties owned by the MPA.

9. The opening up of the Property Zone function to all MPS colleagues has been welcomed by colleagues and commercial operators alike. Activity levels remain high.

10. Residential properties continue to be sold to occupiers and in the open market via auction/private treaty as appropriate.

Central London Asset Management Plan

11. As this item is subject to separate regular reports it is proposed, for Committee approval, that this matter no longer forms part of this report going forward.

Pan London asset plans

12. The activity of Territorial Policing (TP) BOCU Commanders continues to lead the consultation process for their respective BOCU Asset Management Plans. Property Services are supporting TP in developing the consultation and communication plans for each Borough.

13. Property Services continue to support TP on the development of the business case for MPS/CPS Integrated Prosecution Teams. The programme will have significant estate ramifications and these will be covered in the TP report. A smaller pilot scheme for the introduction of “virtual courts” is also being undertaken. Further support is also being provided to facilitate the role out of approved operational changes to the current arrangements provided within Custody facilities (Project Herald).

14. Asset strategies continue to be progressed for other business groups, the Hendon estate, and a number of larger pan-London properties where business groups share occupation. This will include contact with relevant stakeholders. The timeframes of the asset strategies are outlined in the Estate Strategy Plan. The inaugural meeting of the Colindale Partnership takes place in the next few weeks and Property Services will represent the MPA/MPS as previously reported.

15. At Hendon Members will wish to be aware that the Aerodrome Road bridge and public highway improvement works have commenced resulting in restrictions of access from the A40 end of Aerodrome Road. PSD is managing the impacts both in estate and user communication terms.

16. Also at Hendon the aged residential hostel blocks have seen a planned removal from use during August due to compliancy and safety issues. This action has been successfully co-ordinated with HR. Future plans will be included in asset management plans and reported upon at the relevant time.

17. Proposals in regard to the acquisition of a new operational facility to accommodate the requirements of those teams based at Heathrow are being evaluated and will be brought forward for MPA consideration later in the year. The financial impact of these proposals are being included in ongoing discussions with BAA/HAL. In the meantime action is being taken to deal with the redevelopment of Terminals 1, 2 and 3 which will impact on numerous existing MPS occupations.

18. Proposals in regard to a Strategic Co-ordination Centre continue to be developed by Central Operations in support of the pan-London resilience and the London 2012 Olympics. A report detailing the property related implications was presented to Management Board in June and pending further discussions and direction from the Home Office, will be referred to a future Finance Committee.

Property “deals” under consideration

19. Property Services continue to consider other property opportunities. A separate report for the acquisition of a Patrol base for Merton BOCU is expected to be presented for MPA approval at the November Finance Committee meeting (previously programmed for this meeting). This proposal has been delayed due to a number of commercial issues that await negotiation / resolution.

20. Work continues to explore an opportunity within Lambeth Borough in support of Forensic requirements. Earlier direction provided by the MPA enabled discussions to continue with the developer over the Summer.

Operational Support Group

21. Property Services have been heavily involved in recent policing operations (for the MPS and other Forces), these have included the provision of support to recent events at Heathrow (Operation Hargood) and a number of other events including Notting Hill Carnival.

22. Work has commenced to scope the impact of the 2012 / Olympic demands that will be placed upon OSG. These are expected to be significant.

PFI Contract Management

23. There have been serious issues at the Gravesend facility as a result of unexpected degradation of one of the ranges “bullet catcher”. This has adversely affected availability and training. A solution is under discussion with the provider and a sensible upgrade combined with an early solution is to hand.

Regulatory Changes – Building Regulations

24. Part L of the Building Regulations covers the conservation of fuel and power in domestic and commercial buildings. The regulations require that all works undertaken to buildings, other than some like for like repairs, are designed to improve the energy efficiency of the existing services or building. Also, where work such as air conditioning or heating or an extension to an existing building is involved, then additional environmental improvement work must be carried out, up to 10% of the value of the project, to the existing building. The impact of Part L is already starting to impact property related projects and will continue to do so. Property Services are monitoring this position and will report on any impact on previous budgeted schemes as necessary.

25. From 1 January 2008 the MPS will be obliged to display Energy Certificates in all MPA owned facilities over 1000m² in size. Work is in hand to assess the relevant buildings and display the relevant signs.
The work to comply with the new England smoking regulations was completed on time.

Town planning issues

27. The previously reported work in Property Services has continued and we are working closely with the Greater London Authority (GLA), London Development Agency, London Thames Gateway Development Corporation and Local Planning Authorities. Representations have been made in regard to the draft London Plan and we await the Examination in Public later in the Autumn.

28. Consent has been granted to the planning application submitted by the ODA in regard to Olympic Park and Village at Stratford, although a number of issues were included as reserve matters to be discussed and agreed. At the time of writing ODA are finalising the terms of the S106 Planning Agreement. Further meetings have been held with representatives from the ODA, London Development Agency (LDA) and London Organising Committee of the Olympic Games (LOCOG), Home Office and DCNA to discuss further the MPS’s operational and property related requirements and legacy issues that arise. Property Services continue to support the Central Operations Olympic Security Directorate on this matter and the HMIC review.

Facilities Management (outsourced re-tender/realignment)

29. The transition to the new facilities management outsourced providers continues to proceed as planned (the introduction of the Facilities Management Information Centre/Met Property Information Centre service commenced on the 2 April and the service providers commenced in May). There have been inevitable teething problems as the new approach rolls out but these are under control. A number of positive comments are now feeding through from occupiers as well.

30. The help desk currently receives around 2,500 calls a week. The help desk is answering over 95% of these calls within 20 seconds and reaching a 98.4% response rate in early August (well within the contract KPI’s).

31. The outsourced providers have found the number of instructions they have received challenging, but have they satisfied Property Services that appropriate action is in place to address demands. Completion of priority 1 tasks, which are rated as the most critical to supporting operational colleagues, has moved from 75% at the start of the contract to just over 84% in the first week of August.

32. A summary of the priorities assigned to instructions and levels of achievement are outlined below:

33. Priority one instructions are running about 10 - 15% above expected levels at present.

34. A summary of works to which the instructions relate are provided below:

35. As expected most calls relate to NSY (4,016 calls) and Hendon (2,346 calls). Interestingly the next two categories are Lambeth (1,654 calls) and Camden (1,077 calls ). As we gain more detailed technical and caller information data through MPIC Property Services will undertake more detailed analysis.
PSD continue to work hard to ensure the systems are set up to provide the best value for money whilst maintaining budgeted service levels.

36. In addition to the above, we are also undertaking a series of deep cleans, across all of our buildings. We are also improving pro-active maintenance levels; reducing breakdowns/failures and thus the need to be more reactive. This is having an excellent impact and is really making a difference.

Abbreviations

BOCU

Borough Operational Command Unit

COP

Coordination of Policing

ESP

Estates Strategic Plan

CPS

Crime Prosecution Service

LB

London Borough

BAA

British Airways Authority

HAL

Heathrow Airport Limited

GLA

Greater London Authority

LDA

London Development Agency

CO

Central Operations

FMIC

Facilities Management Information Centre

GLA

Greater London Authority

LOCOG

London Organising Committee of the Olympic Games

MPA

Metropolitan Police Authority

MPIC

Met Property Information Centre

MPS

Metropolitan Police Service

ODA

Olympic Delivery Authority

OSD

Olympic Security Directorate

TP

Territorial Policing

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 minimise 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. Environment/sustainability assessment

This is an update paper only.

E. 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.

F. 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 continues to place financial demands on Property Services and the estate. Unless otherwise stated, other financial implications are manageable within existing approved budgets.

2. The new MPA Financial Regulations impact from October 2007 and the extended reporting requirements have been planned for. This will result in more / extended reports on estate issues and will create an anticipated “dip” in monthly reported financial figures. This shift has been anticipated and is not expected to materially change financial year forecast out turns.

3. The revised Financial Regulations clarify the requirement for MPA approval of all third party income generation. Property Services support a number of other agencies / forces often at short notice and generate a small amount of income from this activity. Arrangements for dealing with this work, in line with the Financial Regulations, are dealt with in a separate report to this Committee.

G. Background papers

None

H. 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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