Counter Terrorism and Organised Crime Hub - Expenditure Request

Reference code: 
PCD 553
Date signed: 
25 March 2019
Authorisation name: 
Sophie Linden, Deputy Mayor, Policing and Crime

Executive summary

Following approval of the Central Estate – Counter Terrorism and Organised Crime (CTOC) Hub in March 2018 an opportunity has arisen to enhance the operational benefits through the letting of space to a third party.  This paper requests the approval of additional expenditure for legal, design and preparatory work to be funded from anticipated third party income. 

Recommendation

The Deputy Mayor for Policing and Crime is recommended to: 
(a)    Agree to the additional expenditure of up to £300,000 to cover legal and other associated fees to develop an opportunity that will deliver enhanced operational benefits through letting surplus space, expected to be completed in winter 2019. This will be funded from the revenue budget allocated to the Central Estate Programme in the first place, with the revenue budget subsequently being reimbursed from proposed third party income. 
(b)    Agree to expenditure of £250,000 for the design and preparation work relating to the refurbishment of support facilities to support the opportunity. This will be funded through optimism bias approved as part of the CTOC Hub FBC.
(c)    Agree to delegate authority to the Director Commercial with respect to entering into an Early Design Agreement (EDA) and Development Management Agreement (DMA) with the potential third party and subsequent sub-contractor agreements to prepare for the fit out of each of the floors up to c£3m, noting that all costs will be fully recoverable from the occupier through a contractual obligation through the EDA.

Non-confidential facts and advice to the Deputy Mayor for Policing and Crime (DMPC)

1.    Introduction and background

1.1.    The Central Estate Programme is a project designed to rationalise and improve the “to be” retained estate mainly in relation to central functions, decision PCD 335 refers.

2.    Issues for consideration

2.1.    The MPS Management Board has agreed that the changes requested will further improve operational effectiveness with respect to the response to Counter Terrorism and will not impact Organised Crime capability.

2.2.    The approval of this expenditure will enable the development of negotiations with the third party, and design and preparatory works.  

3.    Financial Comments

3.1.    The costs of the design and preparatory works, £250,000 and the £300,000 for legal and associated fees are being incurred at risk and are expected to be funded from the third party.

3.2.    If these costs are incurred and the opportunity does not proceed as expected there will be a revenue budget pressure of £550,000. 

4.    Legal Comments

4.1.    In carrying out its functions, the MOPAC may, under paragraph 7, Schedule 3 of the Police Reform and Social Responsibility Act 2011 “do anything which is calculated to facilitate, or is conducive or incidental to, the exercise of the functions of the Office”.

4.2.    Under the MOPAC Scheme of Consent and Delegation 4.16 the DMPC must approve “All requests to grant or surrender a lease”.   External lawyers have been engaged to support the development of the Accommodation Agreement and the detailed advice will be provided when approval for the signing of the agreement is sought.

4.3.    The MOPAC Scheme of Consent and Delegation states at 1.7 “This Scheme is a record of those formal consents and delegations which are in effect at the time of the publication of this Scheme. The Mayor and the DMPC may in addition, from time to time make specific delegations to officers within MOPAC or consents to staff/officers within the MPS and may also withdraw delegations or consents. In this scheme, staff/officers are authorised to exercise decision making within their area of responsibility subject to appropriate delegations or consents.”

5.    GDPR and Data Privacy 

5.1.    There are no GDPR or data privacy issues.

6.    Equality Comments

6.1.    There are no equality implications arising from this decision

7.    Background/supporting papers

7.1.    Central Estate Programme decision PCD 335


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