Report to: SERVICE TRANSFORMATION COMMITTEE...SA 2.2.1.5 Office Accommodation has been delayed due to the project manager being delayed due to work capacity issues. 4 FINANCIAL IMPLICATIONS

NOT PROTECTIVELY MARKED Paper 3

CCF Project Dossier Page 1 of 29 22 April 2015

Report to: SERVICE TRANSFORMATION COMMITTEE

Report No: C/STC/09-15

Date: 23 APRIL 2015

Report By: DCO CLARK

Subject: SERVICE TRANSFORMATION PROJECT DOSSIER SCRUTINY

1 PURPOSE

1.1 The purpose of this report is to provide the Service Transformation

Committee (STC) with an update on the eight project dossiers that were

planned to come forward to the STC at the April meeting.

2 RECOMMENDATIONS

2.1 The STC is asked to consider the project dossiers (appendix A) with a focus

on the following areas:

The two dossiers that will be presented at the meeting.

The three dossiers that will be made available for the STC to consider

that will be presented by the Programme Manager.

The three dossiers that have been delayed and their progress to date.

3 KEY POINTS

3.1 Two project dossiers will be presented by their project managers due to

their importance in ensuring the Programme delivers the benefits of

reform:

SA2.1.6 Specialist Resources Phase 2, Implementation. The

presentation will focus on the implementation methodology of

engaging the Service Delivery Areas, training and financial

implications.

SA 2.2.1.2 Command and Control Futures, as requested by the



STC at their March meeting the presentation will focus the delivery

of the Edinburgh and Dundee control rooms. The presentation will

include a revised timeline for delivery along with the financial and

staffing implications.

3.2 There are three projects coming forward to the STC that will be set out by

the programme manager:

SA 2.2.1.3 Vehicle and Equipment Workshops

SA 2.2.1.4 National Headquarters

SA 2.2.1.7 Property Disposal

3.3 These three projects form part of the Strategic Intent for asset

management. The STC should note that this will leave one project still to

come forward from that workstream, SA 2.2.1.1 Training Accommodation

for Cambuslang. This allocation of funding for this project from the capital

plan approved by the Fire Board in April does not commence until 2017

after the Programme is anticipated to close and therefore the dossier for

this project is not planned to come forward to the STC.

3.4 There are three projects that were originally planned to come forward to

this meeting for the STC to consider have been delayed until the 11th June:

SA 2.1.8 Watch Duty System for Scotland has been delayed due to

further scoping work to be completed and the new project manager

being appointed only last week.

SA2.1.14 Out of Hospital Cardiac Arrest has been delayed as

further scoping work is required to align with the national strategy

that will be released in May by the Scottish Government.

SA 2.2.1.5 Office Accommodation has been delayed due to the

project manager being delayed due to work capacity issues.

4 FINANCIAL IMPLICATIONS

4.1 The financial implications for each project are set out in the project dossier

directly identified with this report.

5 EMPOYEE IMPLICATIONS

5.1 There are no employee implications directly identified with this report.



Prepared by Frank Clayton Service Transformation Programme Manager 15 April 2015

Appendix A

Service Transformation Programme

Projects Dossier

Project Name: SA 2.1.6 Specialist Resources – Implementation Phase

Date: 31/3/2015

Parent Programme: Operational Service Delivery

Author: GM David Coulter

Project Manager AM John Dickie

Executive Lead ACO Goodhew

Project Start Date 1/4/2015

Project Finish Date 31/3/2018

Version 0.1

Revision History

Revision Date Summary of Changes Approval Date

0.1 Draft.



Objectives

To implement the outcomes of the Review of Specialist Resources, as approved by

the Fire Board at the meeting of 27 January 2015. By ensuring that our specialist

resources are strategically located in such a manner to provide the most efficient and

resilient service delivery model for such limited assets, this will also assist the SFRS

to realise the key aims of reform:

Safeguard & improve local services, by reducing unnecessary duplication and

maintaining frontline outcomes.

Strengthen the connection with communities

Provide equal access to specialist resources

Scope The strategic positioning of specialist resources has been mandated following

approval of the Board. This project’s scope is to identify and implement all of the

report’s recommendations and objectives; including all appliance deployments,

redeployments and removals from service where appropriate.

Exclusions As previously outlined within the final report from Phase 1, this project is limited to

resources on the Scottish mainland. In addition, crewing arrangements for these

appliances are outwith the scope of this project.

Requirements The project will be project managed from within the current Response and Resilience

structure, with Project Support provided by a WM currently seconded to Command

and Control Futures (50% time commitment to this project).

Cross functional resources will be required from:

Service Delivery- 1 GM from West and East, 3 from North; operating within their existing workloads.

Fleet – Fleet Manager involved on project team

Property – Property Manager represented on project team

Workforce planning – representative on project team

Training – heavy commitment of training instructors scheduled within business as usual.



Budget requirements

Resource Year 1 Year 2 Year 3 Training

Water £420,000 £220,000 £200,000 All training for these specialist resources can be delivered in-house, therefore are considered as business as usual for budget. Caveats: 1 capacity issues where increased activity is proposed. 2 accommodation costs 3 additional instructor training (USAR/Water) to bring into line with declaration of UK standard, estimated at £50k. Full detail will be included in the local plans.

Height £2m £2m £1.5

Line - £120,000 £110,000

HRV £300,000 - -

USAR £80,000

Marine Firefighting

- - -

Hazmats Subject to future SLT paper (May 2015), following review

Total £2,720m £2,420m £1,810m

Outputs

3 detailed project plans, to support the draft high level plan attached as appendix A

Full implementation to time and cost Milestones

1 The creation of a cross functional project team, with representatives from

Response and Resilience, Training and Employee Development, Service Delivery in

all 3 areas, Fleet, Property and others as required

Identification of team members by 31 March 2015

Team meeting schedule and initial meeting by 30 April 2015

2 The creation of 3 detailed, local project plans to support the high-level plan

attached to this outline document

Complete by 30 June 2015

3 Creation of a communications and engagement strategy, with ongoing local

engagement with staff representatives and external partners

Communications plan by 31 May 2015

Engage on local project plans June/July 2015

4 Agree target figures for training requirements

SLT paper April 2015

Commence training April 2015

4 Final delivery

March 2018



Dependencies

Training and Employee Department resources and capacity

Fleet resources

Property department resources

Consultation and Engagement

A full engagement exercise was undertaken in delivering the Specials Review.

Ongoing engagement with internal and external stakeholders will commence as per

the local delivery plans, as per milestone 3 above.

Risks

There is a risk of cross functional capacity and priorities affecting the timeline for delivery

Benefits

a more efficient service delivery model, using standardised procedures and equipment, deployed from strategically positioned stations

more equal access to fire and rescue services for the communities of Scotland

reduced burden on stations, ensuring competency is maintained; thus improving firefighter and community safety

Performance Measures

Delivery of project milestones to time and cost

Disbenefits

capital costs




Projects Dossier

Project Name: SA2.2.1.2 Control Rooms Integration

Date: 23 April 2015

Parent Programme: Strategic Intent

Author: GM David Coulter

Project Manager AM Tony Hughes

Executive Lead ACO Goodhew

Project Start Date Jan 2014

Project Finish Date Sept 2017

Version 0.3

Revision History


0.1 Draft. Based on original Business Case

and current SI planning

0.2 Draft following amendment

0.3 Draft following amendment



Objectives

The creation of a single SFRS on 1st April 2013 brought a unique opportunity to

review all areas of service delivery with the goal of realising the expected benefits of

reform and ensuring a first class fire and rescue service for Scotland.

The inherited situation of eight control rooms serving Scotland but having an

extremely limited ability to interoperate and to identify and mobilise the most

appropriate resources; coupled with ageing operating systems, an ongoing reduction

in activity levels and tight financial climate, lacked the required levels of efficiency

and effectiveness.

The Command and Control Futures (CCF) programme will deliver to the SFRS a

modern, resilient and scalable command and control communications system and

supporting structure that meets the priorities of the organisation in terms of improving

firefighter and community safety; and improving the equity of access to resources for

all the communities of Scotland.

Scope

Within the scope of this project are 2 key outcomes, both of which have a series of

dependent workstreams to achieve; and are critically underpinned by an absolute

requirement to maintain day-to-day control room functionality. The twin outcomes

are:

The staged rationalisation of the existing control room portfolio to its agreed end state structure, including liaison with other key departments such as for technical (ICT) and property enabling and adaptations work

The procurement, delivery and installation of a standardised, resilient command and control technical platform.

Exclusions

A number of functions and systems, while acknowledged to be key dependencies

and mission critical elements within a control room, fall outwith the scope of this

project. These are:



Any Management Information System (MIS)

The supporting Geographical Information system (GIS)

Provision of any supporting broadband or interconnecting systems, which falls within the ICT strategy as Senior Suppliers to the CCF

Human Resource / Voluntary Severance, Early Retirement activities to achieve the agreed end-state staffing structure.

Requirements

Command and Control (Computer Aided Despatch - CAD)

Automatic resource availability management

ICCS (Integrated Computerised Communications System)

Uniform service and support provision

Capital investment: £7.5m plus £3.15m property upgrades. Outputs

3 regionally based control rooms

1 standardised, distributed Command and Control operating platform with accompanying standardised operating policies and procedures. (Partnership with Northern Ireland Fire and Rescue Service to share a single procurement exercise resulting in 2 separate contracts being issued).

2 Disaster Recovery Centres to ensure resilience and business continuity

Rationalised property, infrastructure and resource base

Centralised and standardised data capture and storage Milestones

Establish fully resourced project team by April 2014

Merger of Dumfries and Johnstone control rooms by Nov 2014

Issue procurement PQQ by end Feb 2015

Communications/engagement plan delivered by June 2015

Issue procurement ITT for new software platform by July 2015

Decant Tollcross control to temporary standby to allow property upgrade by 8/6/15

Re-occupy Tollcross control by end Oct 2015

Award system contract by 18/12/15

Close Maddiston and Thornton controls by 31 Dec 2015

User acceptance testing of new system commences Oct 2016

Upgrade Edinburgh control to new CCF system by end Dec 2016

Close Inverness and Aberdeen control rooms, merge with legacy Dundee control by end Dec 2016

Property upgrade North control room by end Mar 2017- (Blackness Road, Dundee remains the selected and Board approved location; however colleagues in Asset Management are currently also reviewing 2 additional sites in Dundee, in the interests of securing best value.)

Upgrade West Control to new system by end March 2017

Upgrade North Control to new system by end Jun 2017



Project closure end Sept 2017

Dependencies

ICT resource and strategy

Property department resources

Airwave contract amendments

3rd party priorities (Capita and Northgate as suppliers of existing control systems)

Northern Ireland FRS requirements

GIS/Gazetteer project requirements and delivery of functionality

OI system requirements

National Callsigns delivery schedule and costs

ESMCP/SFCP projects for Firelink replacement

Incident Recording System


An engagement exercise will be undertaken from January 2015 to project closure,

including a formal plan created in May 2015. This will include the following

stakeholders:

Internal stakeholders External stakeholders

Fire Board Scottish Government

Strategic Leadership Team Airwave

Strategic Intent Board ESMCP/SFCP

CCF Board

Representative Bodies

Consultation will be conducted as required, for example with the Fire Board if any

substantial change to the business case is proposed.

Risks

There is a risk of insufficient staff resources being available, particularly if staff are required to return to Control to maintain business as usual

There is a risk of cross-functional resource limitations affecting timelines, for example ICT capacity, property upgrade decisions and capacity

There is a risk that engagement with NIFRS will complicate and delay the procurement process



There is a risk that the final solution suppliers may not be able to meet the SI programme deadlines for CCF deliverables

There is a risk that final costs outweigh estimates

Benefits

A single Command and Control platform for the Scottish Fire and Rescue service will

provide:

A more consistent approach to the mobilisation of resources, which removes all historical boundaries and achieves a high degree of interoperability and resilience. Whilst difficult to measure accurately, comparison between response times and legacy ‘cross-border’ activity will indicate efficiency. Improved ‘call-handling’ and ‘call-challenging’ will also be measured

Standardised policies, procedures, practices and data gathering/storage

Centralised staff training and development

A fit for purpose mobilising system for the next 10 years with the option for a contract extension of a further 5 years

Consistency of access to national and strategic resources across all communities.

Improve operational efficiency by reducing cost baseline. As displayed in the tables below, this can be measured against annual cost efficiencies of £2.34m through a staffing establishment reduced by 61 posts and a circa £400k annual reduction in ongoing system maintenance costs. Benchmarking against legacy and UK-wide ‘cost per incident’ should also show improvement.

Staff costs Firefighter Crew Manager

Watch Manager

Station Manager

Group Manager

Total

Baseline (legacy authorised)

122 46 50 9 3 230

End state 101 32 26 6 4 169

+/- -21 -14 -24 -3 +1 -61

Annual Saving (£’000s)

726

536

991

144

(57)

2340

System Costs Capital Resource

Baseline (legacy authorised)

Not identified, minimum 2 systems at end-of-life.

Aggregated annual maintenance fees for 8 control rooms

995

End state As per agreed Capital programme

10,500 Early estimate but subject to

ongoing tender exercise 600

+/- n/a 395

Saving (£’000s)

n/a

395




Timely delivery of project milestones to time, cost and quality

Adherence to project governance obligations

Transition of migrated operational services without interruption to live service

Realisation of cashable efficiencies

Improved ‘cost per incident’ and ‘call-handling’ (SFRS KPI)

Disbenefits

Staff displacement and redeployment

Perceived loss of ‘local knowledge’ although this is non-quantifiable and will be offset by improved technology and larger shift groups

Additional training

Paper 3

Strategic Intent Programme

Projects Dossier

Project Name: SA2.2.1.3 Vehicle and Equipment Workshops

Date: 24/11/2014


Author: B Mallon

Project Manager B Mallon

Executive Lead Sarah O’Donnell

Project Start Date June 2014

Project Finish Date December 2020

Version 01

Revision History


Objectives


2

With the amalgamation of the 8 Scottish Fire and Rescue Services in one single Scottish

Fire and Rescue Service, it has been identified that the legacy provisions with regards to

asset management were adequate for the planned asset management functions of the

former eight services. As a single Scottish Service there is a business requirement to

structure the facilities that we operate in relation to asset management functions in the best

way to deliver our service effectively, and to minimise the cost of doing so. There is an

opportunity to combine the vehicle and equipment workshops with other asset support

functions (such as Stores, Communications, Property and PPE Management) into a network

of Asset Resource Centres across Scotland. This process would enable the development of

centres of expertise with a “One Stop” approach to all asset support functions. This is

anticipated to deliver managerial efficiencies, while also minimising the number of facilities

required with the associated property related savings.

There is a regulatory and legislative requirement to ensure that common standards,

processes and legal compliance are achieved across the Service for the maintenance and

inspection of all assets belonging to SFRS.

Due to the age and condition of legacy Workshop/Stores set up in the three services delivery

area’s there is a need to provide an ARC as described above in each of the service delivery

areas, as soon as is practicable to allow realisation of strategic intent aims and objectives.

Scope

There are four specific work Stages of the project which will produce strategically positioned

asset resources centres (ARC) and they are:

1. The current work shop facility at Newbridge Industrial Estate Edinburgh has been upgraded under a separate non Prince2 stand-alone project with an investment of circa £500K. To ensure quality controls and objectives have been obtained and confirmed, then this site will have to be included within the project scope to ensure all goals have been met before overall project can be closed out.

2. The current work shop facility at Seafield Road Inverness has been upgraded under a separate non Prince2 stand-alone project with an investment of circa £360K. To ensure quality controls and objectives have been obtained and confirmed, then this site will have to be included within the project scope to ensure all goals have been met before overall project can be closed out.

3. Hub Co has completed a scoping report for a facility to be located in the North East (A90 Aberdeen-Dundee corridor) and this is being used to assess the next stages of the project. As


3

this is at an early stage work by Hub Co so far predominately relates to selecting a suitable site. Additionally an outline high level specification for the ARC is being produced and discussed by all relevant stakeholders. In conjunction with the above a scoping exercise to locate and evaluate any turnkey options of suitable sites within the A90 corridor will be completed and a final decision on the preferred option will be presented to the SLT and board for approval and instigation.

4. It is envisaged that the model for the North East Arc will be replicated either partially or wholly for the West Arc. At the same time a lessons learned approach from the North East Arc will be employed to ensure maximum efficiency.

Exclusions

Any immediate change in current contractual obligations.

Requirements

Prince2 Project Management skills to complete the project and a confirmed budget allocation

of £860K committed for works at Newbridge and Inverness. A further investment of circa

£3.6M is envisaged for further works at the North East Arc.

Early indications are that a similar amount of £3.6M will be allocated for the West ARC

pending realisation of funds from the disposal project.

Outputs

The project will deliver a Vehicle and Equipment Workshop culminating in an Asset

Resource Centre (ARC) based in the North Service Delivery Area (NSDA), North East

Service Delivery Area (NESDA), East Service Delivery Area (ESDA) and West Service

Delivery Area (WSDA).

These centres will be a modern fit for purpose facility for all functions related to the Asset

Management Directorate activity in their respective SDA.

Four strategically located asset resource centres (ARC) accommodating Fleet, Equipment

and ICT workshops at Newbridge, Inverness and 2 centres one being in West (Greater

Glasgow/Lanarkshire area with motorway access) and the other being in the North East

(A90 Aberdeen-Dundee corridor) TBC


4

Milestones

The project will consist of 10 main stages (subject to funding and decisions being agreed)

Stage 1 Project start up – this will consist of the development of key areas in order that the project can commence It is anticipated that this stage will operate between 10/06/2014 to 18/11/2014

Stage 2 Initiating and planning the project – this will consist of identification of key areas of work required to deliver the project as required within the project brief. It is anticipated that this stage will operate between 10/06/2014 to 18/11/2014

Stage 3 Delivery Option Appraisal - This stage will appraise all options open to SFRS on how best to deliver a fit for purpose Asset Resource Centre (ARC) that meets the needs of the organisation. It is anticipated that this stage will have timelines which have still to be confirmed.

Stage 4 Completion of upgrades at Newbridge, it is anticipated that this stage will be completed on the 11/04/2014.

Stage 5 Completion of upgrades at Inverness, it is anticipated that this stage will be completed on the 11/04/2014.

Stage 6 Approval of location of North East ARC, it is anticipated that this will be confirmed by end of December 2014.

Stage 7 Commencement of North East ARC indicative date of June 2015.

Stage 8 Approval of location of West ARC indicative date of September 2016.

Stage 9 Commencement of West ARC indicative date of April 2018.

Stage 10 Project Closure – this stage will see the review and monitoring of all project objectives and deliverables with final hand over recommendations report to the Project Executive. Indicative date of December 2020.


5

Dependencies

The completion of the ARC will result in the release of other properties, producing a financial

realisation of funds from property rationalisation.


Meetings will be undertaken with representatives for the Property, Legal and Finance section at all stages of the project to ensure correct governance is obtained.

Risks

With the exception of a capital funding to complete the project, there are no other

dependencies with other Strategic Intent projects.

Benefits

Suitable modern facilities to enable routine and unplanned servicing, maintenance and repair of the SFRS fleet and equipment portfolio consisting of some 1500 vehicles and 650,000 items of operational equipment.

Access to road networks to maximise the number of assets to be reached within 60 minutes, currently estimated at 80% of Fleet vehicles.

Staff TUPE’d over from Fife to Tayside and Lothian and Borders, commensurate with the redistribution of legacy fleet vehicles from Fife Council.

Enabling the development of centres of expertise in line with the Institute of Road Traffic Engineering Council (IRTEC) best practice manual for all aspects of asset support, which would be scalable and in line with current and future service requirements.

Improved front line support with a facility for all asset related enquiries and support. This will reduce financial operating costs, provide enhanced performance from a pool of varied skilled technicians and will reduce any duplication of working practices across SFRS.

Will assist with the release of capital receipts through disposal of decommissioned assets on completion of ARC which will be carried out under the disposal project.


6

Opportunities to generate income from activities for third parties, i.e partnership working on a shared services basis with Scottish Police and Scottish Ambulance Services, based on the scalability of the ARC.


Closure of Maddiston workshops with vehicles transferred to Newbridge to allow maintenance and repair work to be completed.

Transferral of all further Fife fleet of 60 vehicles to Newbridge from Tayside during the development of Newbridge.

Staff restructuring realising revenue savings in excess of £160K year on year.

Reduction in property cost of approximately £15K year on year.

Recruitment of skilled staff into existing unfilled posts.

Disbenefits

Early indications have identified the relocation of staff from one workshop to another may

pose problems, however, it is envisaged that these can be addressed as and when they

arise.


7

Projects Dossier

Project Name: SA2.2.1.6 National Headquarters

Date: December 2014


Author: Claire Owens

Project Manager Claire Owens

Executive Lead Sarah O’Donnell

Project Start Date December 2014

Project Finish Date May 2017

Version Draft

Revision History



8

Objectives

On the creation of the SFRS there were 8 recognised headquarter buildings across

Scotland; one in each of the antecedent services. These are located in Hamilton, Dumfries,

Edinburgh, Maddiston, Thornton, Dundee, Aberdeen and Inverness. All of the buildings

currently contain staff working for either the service delivery area or in support of a

recognised headquarters function.

The Strategic Intent proposals considered by the board at its meeting in September 2013

and again in January 2014, identified the need for the SFRS to establish a headquarter that

would be fit for purpose and would form part of the infrastructure that would support an

effective single fire & rescue service. This will benefit the service by creating a focal point for

the organisation that will bring key staff together to develop strategy and ensure its effective

implementation. It will provide the service with a visible presence within Scotland and,

through visibility, help influence cultural change.

This proposal was agreed by the board with additional direction that the location of the

headquarters should fall within the triangular area bounded by the locations of Glasgow,

Perth and Edinburgh. This decision is aligned to the criteria established by Scottish

Government whereby it I recognised that as a significant national body the SFRS should

demonstrate its commitment to serving the whole of Scotland by maintaining a significant

national footprint across the country.

Scope

The establishment of a new principle office building (headquarters) for the Scottish Fire and Rescue Service that is reflective of a decentralised organisation.

Exclusions

HR activities Requirements

A site options appraisal and full business case must be prepared in line with the specific criteria set out by the Scottish Government (Appendix 1), in line with HMT Green Book.

Principal office to be designed to accommodate 120 staff with the potential to accommodate 200 staff in the future.

The budget will be determined on completion of the site appraisals and full business case followed by the decision of the board on the successful option.

Project to be managed in-house by SFRS employees Outputs

Full site options appraisal exercise

Production of a fully developed business case in line with HMT Green Book

Delivery of operationally ready Principal office building (headquarters)


9

Milestones

Completion of options appraisal exercise for the location of the new National HQ by mid February 2015.

Finalised full business case and site options developed 18th March 2015. Failure to complete this exercise could delay board decision on the location of the National HQ.

Board decision on the location of the new National HQ 27th March 2015. Failure to reach a decision at the board meeting will delay delivery of the project.

Design / Tender initiation of the site specific response to business case following board decision on HQ location Q 2 / 3 2015 ( dependent on project sign off and procurement route)

Development of tender works for completion May 2017 Dependencies

This project has no product dependencies


Section 15 of Schedule 1A of the Police and Fire Reform (Scotland) Act 2012 refers to the location of the principal office premises of the SFRS. It states that:

Any determination by SFRS as to the location of the principal office premises of its

members or its Chief Officer is subject to the approval of the Scottish Ministers.

Meetings will be undertaken with the appoint client liaison officer and representatives from Property, COMMs, HR, Legal and Finance Section and Representative Bodies

Consultation with Local Authorities on land availability, value and Section 75 requirements 20th and 23rd February.

Consultation with SI Board, SLT & SFRS Board will take place in the form of meetings and / or workshops on 25th February, 10th & 12th March 2015 (to be confirmed)

Finalised full business case and site options appraisal report 18th March for consideration by the board on 27th March 2015

Approval to proceed will be sought from the executive lead at each Gateway Review stage.

Risks

Early Identified risk includes:

Insufficient funding to provide a facility that meets the aspirational image and operational requirements of the service


10

Insufficient information being provided to the design team regarding the people to be accommodated within the new facility

High monitory value and publicity likely to be attracted by the development of the HQ facility means there is a greater risk of procurement challenge.

Staff displacement cost are in excess of estimated figures.

Relocation proposals will result in loss of key staff

Conflict between Board and SG on the preferred location of new facility.

Delays in decision making and approvals

Benefits

The establishment of a principal building (Headquarters) for SFRS serving all of Scotland that is a fit for purpose and forms part of the infrastructure that would support a single fire service.

The new HQ will create a focal point for the organisation and bring key staff together to develop strategy and its effective implementation whilst improving operational efficiency.

Performance Measures Delivery of project within established:

Project governance obligations

Project programme

Approved budget

Agreed quality

Delivery of a fit for purpose principal office (headquarters) that is reflective of the project

brief.

Disbenefits

Potential loss of key staff due to relocation of workplace

Possible increase travel cost due to relocation of work place


11

Appendix 1

SCOTTISH FIRE AND RESCUE SERVICE HEADQUARTERS – CRITERIA

1. Section 15 of Schedule 1A of the Police and Fire Reform (Scotland) Act 2012 refers to the location of the principal office premises of the SFRS. It states that:

Any determination by SFRS as to the location of the principal office premises of its

members or its Chief Officer is subject to the approval of the Scottish Ministers.

This note sets out the criteria Ministers will apply in determining whether or not to grant

their approval to the SFRS Headquarters location proposed by the SFRS Board. In

addition to this specific statutory requirement, there are a number of generic

requirements on all public bodies which need to be taken into account, which are listed

here for ease of reference.

2. Ministers require the SFRS to follow the guidance contained within the SG Asset Management Policy and the Scottish Public Finance Manual (SPFM) - particularly the guidance around the acquisition of property.

3. Ministers require the SFRS to comply with the duty of Best Value placed upon it as outlined in the Guidance for Accountable Officers.

4. Ministers require that appropriate use is made of existing Framework agreements to ensure that procurement of services, property, goods, including but not limited to, equipment and furnishings is undertaken in line with the expectations placed on public bodies. The Scottish Procurement & Commercial Directorate can provide further advice on these issues.

5. In terms of securing the proper use of public money, Ministers require the SFRS Board to approach the selection of an HQ location in the same manner as any other investment decision, with a clear assessment of costs and benefits carried out in line with HMT Green Book guidance.

6. There will be a presumption in favour of the choice representing best value for money for the Scottish Government as a whole, providing that this meets the requirements of the organisation, unless clear reasons for an alternative are agreed by Ministers.

7. In addition to compliance with the policies and criteria highlighted above, Ministers expect the SFRS Board to take account of the following specific criteria.


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Projects Dossier

Project Name: SA2.2.1.7 Disposal of Property Assets

Date: 25th March 2015


Author: Russell Munn

Project Manager Russell Munn

Executive Lead Alex Lane

Project Start Date June 2014

Project Finish Date September 2018

Version One

Revision History



13

Objectives

The objective of the disposal project is to return maximum capital receipts from the property assets as identified for sale through the Strategic Intent programme in order to fund the future property projects required to facilitate the delivery of services in the new national service.

Scope

The disposal programme with cover the following properties:

2 Garelton Court, Gullane (residential property)

Sold for £150,000 on the 12th February 2015 to East Lothian Council. Funds

received March 2015.

19 Garelton Court, Gullane (residential property)

Sold for £152,000 on the 12th February 2015 to East Lothian Council. Funds

received March 2015.

26 Muirfield Park, Gullane (residential property)

Sold for £337,750 on the 30th January 2015 to private buyer. Funds received March

2015.

30 Muirfield Park, Gullane (residential property)

On the market to be sold by early summer 2015. Funds to be received by August

2015.

Training Centre, Main Street, Gullane (national training centre)

On the market to be disposed of by March 2016. Funds to be received in financial

year 2015/2016.

Laurieston Place, Edinburgh (offices and museum)

To be disposed of by October 2016. Funds to be received in financial year

2016/2017.


14

North Anderson Drive, Aberdeen (offices, training & site)

To be disposed of by July 2017. Funds to be received in financial year 2017/2018.

Maddiston Complex, Falkirk (offices, workshops & site)


2016/2017.

Thornton Complex, Fife (offices, workshops & site)


2016/2017.

Cowcaddens Complex, Glasgow (workshops, training & site)

To be disposed of by September 2018. Funds to be received in financial year

2017/2018.

Mounthooley Control, Edinburgh (offices & car parking)

To be disposed of by July 2017. Funds to be received in financial year 2017/2018.

The project will deal with the marketing and ultimate disposal of the above

properties with initial marketing and planning consultations to ensure maximum

receipts are received by SFRS for the assets concerned in an acceptable timetable.

Exclusions

The project will not identify the projects which the capital receipts from the disposals are directed to.

The project will not identify the areas within each of these properties where there are questions over the exact extent of the disposal such as at Laurieston Place and Cowcaddens.


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The individual property values will not be shown due to commercial sensitivity. Requirements

The programme will be run in house with advice from external professional bodies in the areas of value, title, marketing and planning. The need for such advice will incur professional fees from various parties. These will be assessed as to whether such advice is essential or if it will add value in terms of ultimate capital receipts.

Outputs

Market Valuation reports have been instructed in order to ascertain the likely receipts from the disposals.

Title reports have been instructed for the initial subjects for sale, namely the residential properties in Gullane and the National Training Centre also in Gullane.

The next costs are likely to be for advice on marketing and planning in order that the correct assessments can be made as to whether to engage with local planning departments prior to sales and what timescales are appropriate to put the properties to the market.

Milestones

Dispose of Gullane Houses 1/03/2015

Dispose of Gullane Training Centre 1/03/2016

Dispose of Mounthooley Control 1/03/2016

Dispose of Maddiston Site 1/10/2016

Dispose of Thornton Site 1/10/2016

Dispose of Laurieston Place 1/10/2016

Dispose of North Anderson Drive 1/07/2017

Dispose of Cowcaddens 1/09/2018 Dependencies

In terms of producing the capital receipts projected through the Market Valuations this project is dependent on the outcome of decisions within other projects as to the realisation of the full potential.

The Heritage Project is looking in to the heritage aspect of the service and depending on the outcome of this the sale of Laurieston Place could be delayed depending on the outcome of decisions in this project or the capital receipts predicted for the property could be restricted to a greater or lesser extent depending on the decision to retain some of the elements of the existing building.

The sites to be disposed of are currently in use by various areas of the Service and so this project is heavily dependent on the provision of space at other locations being made available to accommodate the relevant personnel and equipment.


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The full exercise covering the 6 identified properties will require consultation with several internal and external bodies including the Area personnel concerned, professional advisors, Local Authorities and Central Government.

At this stage it is not possible to timetable the numerous consultation that will be

required but these will be in line with the current milestones as set out as the

perceived disposal dates for each of the properties.

To date in terms of the disposal the Gullane Houses we have engaged with the

Scottish Government through the initial Trawl process, solicitors to determine the

Title, a Valuer to identify Market Value, East Lothian Council who are purchasing 2 of

the properties and a Marketing Agent for the remaining 2 houses.

We have engaged planning consultants, Barton Willmore to make representations to

East Lothian Council in order to maximise the potential for the site at Gullane through

the Local Plan process which will involve direct contact with planners, the community

and other professionals.

We have tendered to position of Marketing Agent for the former training college at

Gullane and have awarded this contract to Graham & Sibbald through their

Edinburgh offices.

Risks

Based on the basis that the success of the project will be to dispose of the properties identified to full market value in order to fund capital projects the various risks are as follows;

The full extent of sales will not proceed due to both internal and external factors such as the retention of elements of the identified sites or changes in the Service’s national requirements.

Local Authorities or communities identify the sites for community benefit. New legislation on this area is imminent but the potential effects of this are unclear at this stage.

The market will deteriorate over the timescale of the disposals and so the values stated to date will become unachievable.


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Benefits

The project will raise capital receipts at a projected value of £14.8m to fund future property projects to replace these redundant premises with modern fit for purpose facilities within the strategic intent programme.

The disposal of these subjects will also remove the considerable revenue costs associated with these properties that are often functionally obsolete and run at a higher level of cost due to this redundancy and age. These are currently estimated at £4.7m sustainable annual revenue savings as per year (January 2014 Fire Board paper). Refreshment of this assessment is currently underway.

The change from these older obsolete properties to new better located premises with facilitate the purpose of the single national service and the principles behind this.


The basic performance measures are time based in terms of realising the capital receipts in the financial year as required.

There will also be measures against the values as set out at the start of the project though as previously mentioned these may evolve given the timetable set.

The financial savings relating to the disposed property running and maintenance costs.

Disbenefits

The nature of property means that a sale of such requires initial costs in terms of legal and marketing advice and it will be the case that monies will be outgoing prior to receipts being realised therefore funds will require to be in place to meet these fees. Selling fees will vary according to the property being sold.

The properties may not achieve their projected value to meet the overall programme value of £14.8m

Documents

Report to: SERVICE TRANSFORMATION COMMITTEE...SA 2.2.1.5 Office Accommodation has been delayed due to the project manager being delayed due to work capacity issues. 4 FINANCIAL IMPLICATIONS