Agenda item

This report seeks to provide more detail on the progress to date of the Building the Future (BTF) programme as well as the context to the decision to initiate the strategic assessment which will see three options explored for the future HQ. The Programme Director, Maureen Cherry and Deputy Chief Constable Nev Kemp have been invited to the Panel’s meeting to provide Panel members with technical or operational details. 

 

Witnesses:

Lisa Townsend - Police and Crime Commissioner for Surrey

Nev Kemp - Deputy Chief Constable (Senior Responsible Officer for the Building the Future Programme), Surrey Police

Maureen Cherry - Building the Future Programme Director, Surrey Police

Kelvin Menon - Chief Finance Officer, Office of the Police and Crime Commissioner for Surrey (OPCC)

 

Key points raised in the discussion:

1.    The Police and Crime Commissioner for Surrey (PCC) explained that she had taken office as the Building the Future Programme review by the Chartered Institute of Public Finance and Administration concluded and that the Office of the Police and Crime Commissioner for Surrey (OPCC) and Surrey Police had been transparent with the information provided to the Panel; and would continue to do so via regular updates on the Programme and the current Strategic Estates Assessment that was underway.

2.    The PCC welcomed the Deputy Chief Constable (Surrey Police) and the Building the Future Programme Director (Surrey Police) to present the item.

3.    The Deputy Chief Constable (Surrey Police) highlighted that:

·         The Programme was initiated in 2016 and the high-level strategic business case was approved in April 2017.

·         Following the purchase of the Leatherhead site the strategic business case was updated in October 2018 and the Programme Director was formally appointed in February 2020.

·         The delivery of the Programme followed the Royal Institute of British Architects (RIBA) Plan of Works which consisted of eight stages.

·         The Programme and finances were on track as noted in the review undertaken a year ago by the Infrastructure and Projects Authority (IPA).

Councillor John Robini joined the meeting at 10.56 am

·         The three main elements to the Programme’s scope as at October 2019 were:

-       Neighbourhood Policing Base: required in Reigate and Banstead to ensure that there would be no reduction in police provision as a result of the sale of Reigate Police Station.

-       Agile Working Project: accelerated as a result of the Covid-19 pandemic and had benefitted productivity.  

-       Disposals Project: whereby a number of buildings and estates were disposed of, originally four into one, later becoming five into one; the separate pieces of work taking place in parallel were not joined up: Operational Estate, Housing Stock and Vacant Estate.

·           The Programme along with the Surrey Police Estates Strategy and the Surrey Police Housing Strategy were later aligned in early 2021 to ensure efficiency, value for money and a comprehensive estate that served the needs of Surrey Police and in turn Surrey’s residents.

·           Stage 2 with a robust cost plan was completed in March 2021, the Building the Future (BTF) Board approved the move to Stage 3 and following that move it was an opportune moment to carry out a review - undertaken by CIPFA.

·           A recommendation had been made to the previous PCC that the CIPFA review in March 2021 should be conducted due to several key reasons:

-       The financial position of Surrey Police and the country was different compared to 2016 due to the pandemic, the savings requirement needed over the next four years to keep pace with inflation and that the Programme had the potential to increase the savings requirement in 2022-23 by £8 million.

-       To ensure that the Programme was dovetailed with the Surrey Police Estates Strategy and the Surrey Police Housing Strategy.

-       The Programme’s scope had increased compared to when it was initiated as the following areas were not fully considered at the outset:

-     The Dog School at Mount Browne which had been there for over seventy years and was well-renowned was not suited to the new site at Leatherhead due to the size and location in a residential area - so an alternative location was being sought.

-     Covert operations were undertaken so it was vital that officers and vehicles would not been seen, the Leatherhead site in a residential area could not ensure the covert element nor was it large enough for the assets required so an alternative site was being sought.

·         Following the CIPFA review findings, the PCC and the BTF Board in June 2021 approved the Programme Director’s recommendation to carry out a further Strategic Estates Assessment of the Programme which commenced in July 2021, with three options:

-       Continue to proceed with delivering a new HQ & Eastern Operating Base at the former ERA site in Leatherhead; with alternative sites being sought for the Dog School and covert operations - even if not pursued the site was believed to have increased in value since it was purchased.

-       Remain at Mount Browne which required redevelopment.

-       Locate an alternative site in Surrey - the option was ruled out in August 2021 following a comprehensive search.

·         The Strategic Estates Assessment of the Programme was due to be completed in October 2021 for the Building the Future Board’s consideration in late November 2021.

4.      The Chairman welcomed the presentation and noted surprise that the requirements around the covert operations and Dog School were not initially taken into consideration.

5.      A Panel member queried what the cost would be in terms of remaining at and redeveloping Mount Browne.

-       In response, the Deputy Chief Constable (Surrey Police) noted that the costs concerning the two options would be included within the Strategic Estates Assessment of the Programme due to be completed in October 2021.

6.      A Panel member noted that the original announcement about the proposed move to Leatherhead was well-received by local residents and he welcomed the openness of the Programme. He asked what the impact would be on the Eastern Operating Base in Reigate if the decision was for the Force (Surrey Police) headquarters to remain at Mount Browne in Guildford and whether that decision would be made at the November BTF Board meeting.

-       The Deputy Chief Constable (Surrey Police) welcomed that feedback, noting that Surrey Police had strived to be open from the inception of the Programme, meetings had been held with the Leader and Chief Executive of Mole Valley District Council and public question and answer sessions had been held.

-       The Deputy Chief Constable (Surrey Police) commented that if the decision was taken to remain at Mount Browne, there was a possibility that Reigate Police Station would be retained. He stressed that the local policing presence and the ability to respond quickly to incidents would not be negatively affected.

-       The Deputy Chief Constable (Surrey Police) explained that the decision should be made at the November BTF Board meeting where the two options would be considered in detail.

7.    The Panel member further asked whether there was a mid-option between the two options for the new headquarters.

-       In response, the Deputy Chief Constable (Surrey Police) noted that those two discrete options were the only options being considered.

8.      A Panel member asked whether there had ever been a budget for the Building the Future Programme.

-       The Deputy Chief Constable (Surrey Police) confirmed that there was a budget which was included in the Force’s financial returns, due to the complexity of the Programme which had changed over time, there were hidden costs and so it was a good time to have the Strategic Estates Assessment.

9.      The Panel member asked that if the Leatherhead site was chosen whether the Dog School would have to move to a different site.

-       In response, the Deputy Chief Constable (Surrey Police) explained that the Dog School could not be located at the Leatherhead site due to its location in a residential area and lack of space.

-       The Deputy Chief Constable (Surrey Police) explained that regarding the Surrey Police Housing Strategy, the Force was keen to have new starter housing provision for police officers in Surrey particularly due to the high turnover of police officers and the number of officers commuting into Surrey as it was expensive.

10.   A Panel member asked whether the Force had considered that keeping Mount Browne operational whilst going through a major refurbishment would pose large challenges and that the costs would be significantly higher as the refurbishment work would be done in phases.

-       The Deputy Chief Constable (Surrey Police) recognised that concern and noted that in addition to the costs of building a new headquarters at Mount Browne, there would be costs involved in moving staff from one place to another and whilst many staff do not want to move there would be good recruitment opportunities in Mole Valley and Leatherhead should the Leatherhead site be chosen and it was a slightly more central position within the county with good transport links.

-       The Building the Future Programme Director (Surrey Police) responded that building a new headquarters at Mount Browne would be a difficult project, with both challenges and opportunities, the occupancy level at Mount Browne was lower due to Covid-19 and new ways of working. The building work could be phased to help the Force’s cash flow and the savings needed.

11.  The Chairman commented that he hoped that the Force as a stakeholder had responded to the South Western Railway December 2022: Timetable Consultation which would affect both Guildford and Leatherhead through the proposed reduction in services.

Councillor Valerie White joined the meeting at 11.17 am

 

12.   The Vice-Chairman welcomed the presentation, noting the surprise felt by the Panel at June’s Panel meeting in the sudden shift in the Programme’s progress as a result of the Strategic Estates Assessment of the three options.

·         Discussing the process around the Programme with the parameters shifted as a result of the issues around the Dog School, the Vice-Chairman asked how confident Surrey Police was going forward with the Programme particularly due to the experience over the past eighteen months as a result of the pandemic and agile working; and what measures were being built in to make sure that going forward the Programme is reviewed in the context of overall Surrey Police Estates and Housing Strategies.  

-       The Deputy Chief Constable (Surrey Police) explained that in relation to the changed parameters when the Programme was initiated it was known that the Dog School would have to move elsewhere. Towards the beginning of the Programme whereby five sites would be moved into one site, the Leatherhead site had not yet been identified. When identified, the Leatherhead site had been considered to be suitable and so was purchased, it was then discovered that it would not be suitable to accommodate the Dog School nor the covert operations, the Programme then became a move from three sites into one.

-       The Deputy Chief Constable (Surrey Police) noted that the Force was in a good position going forward - following the IPA and CIPFA reviews and advice from independent consultants - to understand what the requirements and costs are, and how it could maintain a good service.

-       The Deputy Chief Constable (Surrey Police) noted that the Strategic Estates Assessment would ensure a holistic approach through the increased drive around agile working as a result of the pandemic and the Surrey Police Estates and Housing Strategies.  

-       The Deputy Chief Constable (Surrey Police) noted that a new headquarters at an alternative site would incur significant costs initially but would be efficient over the long-term, as currently Mount Browne was inefficient and expensive to run; whilst a phased development was an option if the headquarters were to remain at Mount Browne.

·         Discussing the finance around the Programme, the Vice-Chairman noted the upcoming item on the Medium Term Financial Plan (MTFP) which provided a forecast for revenue and the £20 million in savings needed over five years and in turn what that implied for the capital programmes; and asked how the Programme’s planning and review process going forward was fit for purpose.

-       The Chief Finance Officer (OPCC) explained that the Programme was based on the fact that it would be self-funding over a period of time from the savings generated from the new premises such as less energy and maintenance costs which would cover the funding of the borrowing required to build a new headquarters.

-       The Chief Finance Officer (OPCC) noted that the previous reviews and current Strategic Estates Assessment would inform the planning around the financing of the new headquarters, it was vital to ensure that the Programme would not affect the revenue used to deliver police services. The cash flow issue by 2025/26 would be managed through a phased approach.

-       The Vice-Chairman referring to the cash flow issue in 2025/26 highlighted that whilst the future headquarters might be beneficial in terms of reducing the current operating costs, there would be a period of dual running costs and the additional costs of financing the Programme in order to derive those future benefits.

13.  A Panel member noted that previously the Force gave a commitment that Woking Police Station would stay operational until the opening of the Leatherhead headquarters, he asked whether that was still the intention or whether that would be known after the Strategic Estates Assessment and if so whether that would be a managed move.  

-       In response, the Building the Future Programme Director (Surrey Police), explained that the neighbourhood policing element was moved out of Woking Police Station three years ago to Woking Borough Council offices. Woking was one of the disposals that underpinned the business case for the new headquarters at Leatherhead and there was a number of challenges around HM Coroner's Court at Woking and it was anticipated that Woking Police Station would not be disposed of until the move to the new headquarters.

14.  Echoing a previous comment, the Panel member asked how much had been spent so far on the BTF Programme before the Strategic Estates Assessment.

-     The Chief Finance Officer (OPCC) would liaise with the Building the Future Programme Director (Surrey Police) on the costs so far on the Programme and would inform the Panel members via email.

15.  A Panel member noted the discussions about the positives around the fire, police and ambulance services working together and asked whether the Force had looked at any gains in terms of sharing facilities with the other emergency services.

-       The Deputy Chief Constable (Surrey Police) noted that discussions had been had with Surrey Fire and Rescue Services (SFRS) - there were no current plans to co-locate with any of the other emergency services - and Surrey County Council, Guildford and Waverley Borough Councils and other public sector providers.

16.  A Panel member noted that the BTF Board would be considering the outputs of the Strategic Estates Assessment at its meeting at the end of November and asked whether in anticipation of that a Part 2 briefing to November’s Panel would be possible. 

-       In response, the PCC noted that the current timeline would allow that.

17.  The Chairman noted that the Programme was a serious matter which had been ongoing for five years and welcomed an in-depth report at a future Panel following the Strategic Estates Assessment on what RIBA Stages 4-8 would entail as well as the timescales between the stages and overall costs so far and for each of the two options for the new headquarters - Panel member comments would be followed-up in a collated action.

-       In response, the PCC thanked the Deputy Chief Constable (Surrey Police) and the Building the Future Programme Director (Surrey Police) for attending and she provided assurance that the Panel would continue to be kept up to date on the Programme.

 

RESOLVED:

That the Panel noted the report.

Actions/further information to be provided:

1.    R21/21 - The OPCC will look into whether a Part 2 briefing on the outputs to be considered regarding the Strategic Estates Assessment can be provided at November’s Panel in advance of the decision to be taken by the BTF Board in late November.  

2.    R22/21 - The Chief Finance Officer (OPCC) will liaise with the Building the Future Programme Director (Surrey Police) on the costs so far on the Programme and would inform Panel members via email.

3.    R23/21 - An in-depth report will be provided to the Panel in due course following the Strategic Estates Assessment on what RIBA Stages 4-8 would entail including:

-       the aligning of the Surrey Police Estates Strategy and the Surrey Police Housing Strategy: including decisions around the Eastern Operating Base in Reigate/Reigate Police Station, Woking Police Station, the Dog School, covert operations, agile working.

-       the timescales between the Stages.

-       how the financing of the Programme would be reviewed and the impact of the Medium Term Financial Plan 2021/22 to 2025/26, the overall costs and budget so far (see action 2), including for each of the two options for the new headquarters - to remain at and redevelop Mount Browne or to carry on with delivering the new headquarters at the Leatherhead site.