Hendon Development - funding request

As part of the development of the Hendon site a number of elements have been identified as needing additional or changed requirements. This paper sets out the proposed changes, the financial impact and proposed delivery routes. The additional costs of £3.9m are being funded from underspends within the existing Hendon budget, budget transfer within the Capital Programme and part of the additional capital receipts arising from overage payments.

DMPC is asked to
1. approve the requirements with regards to the revised perimeter and boundary proposals to address the interface with Redrow as part of the disposal contract at a cost of £3.42m as detailed in Exempt Appendix 2A;
2. Note the works proposed to increase training capacity of the firing range from 9 lanes to 12 lanes and approve the associated costs estimated in Exempt Appendix 2C at up to £500k;
3. Note the current forecast expenditure position with regards to the broader Hendon Programme also detailed in Exempt Appendix 2A and, subject to including (1) above, approve additional funding required of £2.1m for these works, £1.4m to be met through additional capital receipts and £0.7m to be met from the 2016/2017 MPS/MOPAC Capital Programme - Estates Transformation line;
4. Note the current position with regards to the disposal surplus land and the forecast receipts that have been built into the 2015/2016 and 2016/2017 MPS/MOPAC Capital Programme as detailed in Exempt Appendix 2A;
5. Subject to (1) and (2) above, support the proposed delivery route and approve associated contractual variations as detailed in Exempt Appendix 2B; and
6. Note the progress with regards to the recovery of costs regarding ground contamination as set out in Exempt Appendix 2D.

1. Introduction and background

1.1 MOPAC approved the redevelopment of the Hendon site and the disposal of the surplus land. As the development has taken place a number of additional works have been identified as needing to be implemented in order that the development can be finalized and the site be made secure.

1.2 This paper sets out proposals for works to complete the development at Hendon.

2 Issues for consideration

2.1 The paper sets out the additional works necessary to complete the landscaping/walkways, improved security measures and access security gates at Hendon Peel Centre. The paper also sets out the case to increase the firing range capacity from 9 to 12 lanes. The additional cost is £3.9m

2.2 Additional funding arising from the overage payment due with the approval of the master plan is included in exempt appendix 2A.

2.3 Following demolition of the previous existing buildings there remained ground contamination on the site. Progress on the action which is underway to recover the costs from the contractor to clean the site is in Appendix 2D.

2.4 There are a range of proposed procurement routes to deliver the proposals depending on the nature of the development and existing contractors on site as set out in exempt appendix 2B.

3 Financial Comments

3.1 The additional cost of the proposed works is £3.9m. This cost will be funded from part of the additional receipts arising from overage payments, and from within the existing capital programme.

4 Legal Comments

4.1 Section 6 of the Police Reform and Social Responsibility Act 2011 (“the Act”) provides that MOPAC must secure the maintenance of the Metropolitan Police Force, and secure that the Metropolitan Police Force is efficient and effective.

4.2 In carrying out its functions, the MOPAC may, under paragraph 7, Schedule 3 of the Act do anything which is calculated to facilitate, or is conducive or incidental to, the exercise of the functions of the Office. This includes, entering into contracts and other agreements, in addition to acquiring and disposing of property (including land).

4.3 The additional works and services referred to within this Report will be required to be procured strictly in accordance with the Public Contract Regulations 2015 and the MOPAC’s Contract Regulations.

4.4 The MOPAC Scheme of Delegation and Consent (Sept 2014) requires the DMPC to approve all business cases and requests to go to tender where the value exceeds £500K. The Scheme gives delegated authority to the Director of Strategic Procurement to approve the award of all contracts with the exception of those called in through the agreed call in procedure. The DMPC must be notified in writing of the outcome of the tender process for all contracts in excess of £500K.

4.5 MOPAC has the power to dispose of surplus properties (including land) under paragraph 7 (2) (b) of Schedule 3 of the Police Reform and Social Responsibility Act 2011 (“the Act”). Furthermore, paragraph 7(1) of Schedule 3 of the Act allows the MOPAC to do anything which is calculated to facilitate or is conducive or incidental to the exercise of the functions of the office. Schedule 4(5) of the Act states the Commissioner must exercise the power of direction and control in such a way as is reasonable to assist the MOPAC to exercise that Office’s functions.

5. Equality Comments

5.1 No equality and diversity impacts have been identified