Estate Strategy

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Contents Page

Executive Summary 3

1. Introduction 5

2. The Existing Estate 6

3. Estate Vision, Strategic Priorities and Objectives 11

4. How we will deliver 16

Appendices

Appendix A: Office locations 28

Appendix B: Property schedule 29

Appendix C: Valuations 30

Appendix D : Utilisation 31

Appendix E: Running costs 32

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Executive Summary Estate Strategy 2016-2026 This strategy sets out the Crown Office and Procurator Fiscal Services (COPFS) approach to how we will maintain and develop our estate over the coming ten years to ensure that we provide an efficient, safe and fit for purpose estate for use by our staff and the public. A key requirement of the strategy is to deliver an estate in a configuration, and at a cost, that ensures we focus available funding on People (numbers of staff) rather than Places (challenging our traditional approach to the use of space and the number of locations from which we operate). The strategy is not standalone and relies on delivery of other strategies – financial, digital and workforce planning. The focus of all subsequent delivery plans will be to seek a reduction in our estates running costs of up to 20% (circa £1m-£2m) to support the funds available for resources involved in the preparation and prosecution of cases. In determining the size and shape of the Estate the strategic priorities are as follows:

Right Place: we aim to have buildings located in the right place to support an efficient and effective service whilst providing reasonable access to justice across Scotland.

Right Size: we aim to have an estate which is the right size, with sufficient flexibility to efficiently and effectively work alongside criminal justice partners

Right Configuration: we aim to provide good quality buildings, with sufficient functionality and flexibility, to support the effective operation and delivery of the business, wellbeing of staff and to meet the diverse needs of our customers.

Right Condition: we aim to provide and maintain a sustainable estate in the right condition to support the effective operation and delivery of business and to minimise the potential for any disruption to that business.

Right Price: we aim to deliver services and investments which are value for money, at the right time and right quality

Delivery of this strategy will involve change in terms of:-

the number of locations we maintain

how we maximise the use of available space

improving energy management and consumption

adopting space standards used widely across the Public Sector (including with Scottish Government)

reducing storage requirements particularly in relation to paper and productions.

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To support delivery a number of key principles have been agreed by the Executive Board these include:

the principle of a reducing estate is accepted for the life of this strategy

the principle of not renewing private sector leases is accepted for the life of this strategy and is a key SG principle (subject to suitable public sector accommodation being available).

in the context of rationalisation of the built estate – where COPFS provide services from within a court, it shall be a minimum locational principle that COPFS retain a visual presence in Sheriff Courts – and not a necessity that an actual COPFS office need be retained at all sites. In effect, that presence need not be a building or a room necessarily as long as an erected sign is present.

building on our strategy to increase digital processing and the use of iPads in court, office locations will be based on service provision and support for court prosecution rather than the need for local records and files.

the principle of one desk/workstation only per person at their designated base is established – all staff are to operate from hot desks at other offices when visiting

the principle of minimisation of storage through business implementation of records management policy, electronic scanning, file reviews and adequate storage systems, both within and out with offices is established.

the full and effective implementation of the existing Clear Desk Policy is an essential component to the secure rationalisation of the estate, primarily in minimising security risks

the minimisation of productions and related storage is key to the future rationalisation of the estate and is an established principle of the COPFS estate strategy.

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1. Introduction

This strategy sets out the Crown Office and Procurator Fiscal Services (COPFS) approach to how we will maintain and develop our estate over the coming ten years by providing an efficient and fit for purpose estate.

In recent years the COPFS estate and its management has undergone considerable physical and operational change and as a result delivered very significant benefits. These include substantial savings in terms of staff and running costs, improved statutory and health and safety compliance, improved services in relation to accommodation issues e.g. call handling, customer response, life cycle management and FM service delivery.

We established a “Shared Service Agreement” with Scottish Courts and Tribunal Services (SCTS) in 2011 which provides a contractual framework for the management of the COPFS estate in partnership with SCTS, including through a Facility Management contract. This arrangement reflects the close links between both organisations in terms of their estate and has contributed significantly to the efficiencies and benefits noted above. As a result the Agreement was renewed by both COPFS and SCTS on an open ended basis in 2014.

The needs of Scotland’s justice system are continually developing and like other organisations COPFS also needs to live within restrained budgets. In order to meet these demands COPFS will continue to work with other parts of the criminal justice system to develop ever more productive working arrangements including implementing appropriate organisational change within COPFS to best meet these demands and our objectives. These changes and the drive for efficiencies will mean different estate requirements and the footprint of the estate will also alter.

We have ensured that our approach to change and investment is underpinned by a strong understanding of current and future business need. It is recognised that some emerging changes in the justice system are ongoing and the implications to the COPFS estate is not fully defined. We will maintain close ongoing consultation with our partners and stakeholders to ensure our estate strategy and investment decisions are fully aligned.

This estate strategy recognises COPFS objectives, the changing operational and financial environment within which COPFS operates and the opportunities and challenges likely to develop over the coming years in relation to the estate. The strategy also sets out the priorities and high level plans for COPFS estate in the period 2016 – 2026.

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2. The Existing Estate

Location, Extent and Tenure

As of June 2016 COPFS operates from 51 properties across Scotland. The location of these offices is shown in Appendix A. The properties are held on a variety of tenures summarised below:

* NIA is Net Internal Area

** FTE is Full Time Equivalent

*** Embedded properties are where COPFS is located in a court owned and managed by

SCTS. No formal lease is in place.

A full schedule of the properties in the estate is provided in Appendix B. Of the eight owned properties it is noteworthy that one property (25 Chambers Street, Edinburgh) accounts for 36% of total NIA (8.4% of the NIA of the total estate).

Of the 18 properties in the leased estate, the Ballater Street property in Glasgow accounts for 32% of the leased estate by area (18% of the NIA of the total estate). With regard to the 25 embedded offices, Edinburgh Sheriff Court accounts for 48% of the NIA of all embedded properties (10% of the NIA of the total estate.)

These three properties (25 Chambers Street, Ballater Street and Edinburgh Sheriff Court) therefore account for 36% of the NIA of the full COPFS estate. These three offices also accommodate 45% of all FTE’s within COPFS.

The above table shows the total NIA of the COPFS estate as 28,933m2.

The nature of services provided by COPFS means that the vast majority of the estate is standard office accommodation of various types, ages and configurations. Data centres are located at Legal House in Glasgow and at 25 Chambers Street, Edinburgh. These data centres suffer from significant challenges in terms of the building fabric and infrastructures inability to provide fit for purpose accommodation. COPFS are currently undertaking an option study relating to the data centres.

Tenure No of

properties % of total (by Nos.)

Total Area (NIA)* (m

2)

% of total (by area)

Staff No. (FTE) **

% of total (by staff)

Owned 8 16% 6,801 23% 344 22%

Leased 18 35% 16,098 56% 863 55%

Embedded *** 25 49% 6,034 21% 355 23%

Total 51 100% 28,933 100% 1,562 100%

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Within the ten year period of this estate strategy, all but one of the 18 leased properties (10 Ballater Street, Glasgow) have a lease break / end date.

Valuation

The owned estate was last valued in March 2016 with the resultant market valuation of these properties being £6,720,000. A table showing these valuations is enclosed at Appendix C. One property, being the Crown Office at 25 Chambers Street, Edinburgh was valued at £4,500,000 and therefore accounts for 67% of the value of the entire owned estate.

Utilisation

As part of the development of this estate strategy COPFS have reviewed the utilisation of the existing estate based upon the NIA and FTE staff numbers. The summary outcome is shown in the table below for the different property tenures, with the full details showing each property enclosed at Appendix D.

Tenure Average Utilisation m

2

per FTE

Owned 20

Leased 19

Embedded 17

Overall Total 18.52

It can be seen from Appendix D that there is very significant variation across individual properties. The above measure does not split out or distinguish different functions such as the data centres, production stores or training centre. Similarly it does not reflect that within the embedded properties, there are seven with no FTE on site. It can also be seen that on this basis nearly all properties are significantly above the current public sector workplace standard target of 8m2 per FTE for new or refurbished offices.

In order to provide a more appropriate comparison of the efficiency of occupied office space, we have adjusted the total area to remove specialist spaces such as the data centre, training facility and production stores. We have also omitted the seven embedded offices which are not permanently occupied. This results in an average utilisation of 17.28 m2 per FTE. Details of these adjustments are shown within the table at Appendix D.

There is currently no verifiable data on the occupancy patterns of the embedded properties where 0 FTE’s are indicated in Appendix D. It is proposed that this information is gathered to give us a better understanding of utilisation.

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Condition

An independent survey of the COPFS estate was completed in 2013 and this estimated the backlog maintenance of £3.9 million over a ten year period for the owned and leased estate.

Since the survey was carried out, investment has been focused on the high priority compliance works and at 31 March 2015 all Category D and DX works were completed. There were no EX works.

The condition of the existing estate and associated backlog maintenance is set out below based upon the following definitions:

Category Description

A Excellent / As new condition (generally less than two years old)

Expected to perform as intended over its expected useful service life

B Satisfactory / Acceptable condition with evidence of only minor deterioration

Element / sub element is operational and performing as intended

Remaining life greater than five years

C Fair condition but with evidence of deterioration

Element / sub element remains operational but will need major repair or

replacement within ten years

D Poor / unacceptable / unsafe condition

Non-operation or about to fail

Has reached the end of its useful life

DX Lack of compliance with current legislation

EX Lack of compliance with current legislation, unsafe and / or likely to cause

accident or serious loss of service.

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Ten Year Maintenance Obligation – Building Summary by Category

Year Total Cost (£) A B C D DX EX

2013 227,000 0 0 139,000 80,500 7,500 0

2014 305,500 0 500 305,000 0 0 0

2015 322,500 0 1,500 321,000 0 0 0

2016 740,000 0 2,000 738,000 0 0 0

2017 301,000 0 11,000 290,000 0 0 0

2018 102,500 0 40,000 62,500 0 0 0

2019 430,000 0 430,000 0 0 0 0

2020 305,000 0 305,000 0 0 0 0

2021 623,000 0 607,000 16,500 0 0 0

2022 457,500 0 457,000 0 0 0 0

2023 116,000 0 116,000 0 0 0 0

Totals 3,930,000 0 1,970,000 1,872,000 80,500 7,500 0

Based on the estate at the time of the condition survey in 2013, it can be seen that the vast majority of repairs fall into category B or C. In addition of the total anticipated cost of £3,930,000, approximately £1,697,500 (43%) related to ‘Owned’ properties whilst £2,233,000 (57%) related to the ‘Leased’ estate. Liabilities in relation to the embedded estate are out with these figures. We are currently in the process of undertaking an updated condition survey of the estate in conjunction with SCTS and this information will be used to help inform the decision making process in relation to specific properties.

Occupancy Costs

Detailed information on the existing estate running costs at 2014/15 is set out in Appendix E and are summarised below:

Tenure (NIA) (m

2)

FTE (No)

Annual total Costs (£)

Annual Cost per m

2 (£)

Annual Cost per FTE (£)

Owned 6801 344 1,319,006 194 3,839

Leased 16,098 863 6,359,826. 395 7,366

Embedded 6,034 355 2,966,348 492 8,350

Total 28,933 1,562 10,645,180 368 6,814

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Of the eight owned properties, 25 Chambers Street Edinburgh accounts for 50% of the total cost. In the leased estate, Ballater Street Glasgow accounts for 43% of total costs. Within the embedded estate Edinburgh Sheriff Court has 54% of the total running costs. Together these three properties account for 47% of the estates total running costs.

Key Risks

Significant changes, improvements and efficiencies have been achieved in the existing estate in recent years as the portfolio has evolved to meet changing service requirements and the Shared Services Agreement has been implemented. Looking ahead to the ongoing evolution of the model for service delivery within the justice system, it is recognised that a range of risks exist which will need to be addressed if the estate is to continue to provide fit for purpose facilities. Key risk and impacts can be summarised as:

failure to address significant backlog maintenance requirements impacts upon service delivery, efficiency and reputation

failure to coordinate adequately with justice partners on evolving delivery model impacts on ability to optimise efficiency within COPFS estate

lack of funding to address priorities, impacts on service delivery and efficiency

failure to implement “Continuous Improvement Programme” in a manner / timescale that facilitates the estate strategy particularly with regards to staff reduction and technology initiatives

key initiatives by SCTS delayed impacting on COPFS estate strategy e.g. Jury / Justice Centre development.

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3. Estate Vision, Strategic Priorities and Objectives

Estate Vision

As set out in the COPFS Strategic Plan 2015 – 2018 the purpose of COPFS is “securing justice for the people of Scotland” through three guiding principles:

improving quality – including in processes and competencies

optimising efficiency – including in structures, capability, skills and standards

delivering efficiency – in processes, IT systems, estate.

In addition COPFS have identified five enablers to assist focus on the implementation of this strategic plan. These are:

People – ensure staff have appropriate knowledge and capability to deliver high quality cost efficient service

Digital – deliver and support efficient, resilient, innovative and secure IT systems

Improvement – systems and processes that are fit for purpose meeting expectation of all stakeholders

Collaborative working – Effective partnership working with stakeholders

Finance – ensure funding is distributed appropriately and continually demonstrates value for money.

There are a range of initiatives currently in place as COPFS drives forward on its strategic business objectives. It is important that this estate strategy is guided by and coordinated with the corporate strategy. This key linkage is illustrated on the attached diagram and it is recognised that this estate strategy will be kept under regular review to ensure it remains fully aligned within the corporate vision priorities and objectives.

The pace of change within COPFS has increased considerably over the past year with the initiation of the ‘Shaping for the Future’ programme which is designed to identify and implement a restructure of the COPFS business units from Federation into units that will operate on a functional basis.

The overriding vision for the COPFS estate is to provide an estate that is fit for purpose to support this new structure and the associated corporate objectives.

a. Strategic Priorities:

Underpinning the estate vision are five strategic priorities for the estate which are set out below:

Right Place: we aim to have buildings located in the right place to support an efficient and effective service whilst providing reasonable access to justice across Scotland.

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Right Size: we aim to have an estate which is the right size, with sufficient flexibility to efficiently and effectively work alongside criminal justice partners

Right Configuration: we aim to provide good quality buildings, with sufficient functionality and flexibility, to support the effective operation and delivery of the business, wellbeing of staff and to meet the diverse needs of our customers.

Right Condition: we aim to provide and maintain a sustainable estate in the right condition to support the effective operation and delivery of business and to minimise the potential for any disruption to that business.

Right Price: we aim to deliver services and investments which are value for money, at the right time and right quality.

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b. Existing Estate Analysis:

An in depth review of the existing estate has been undertaken to inform this estate strategy. A summary assessment of the extent to which it currently meets the strategic priorities is provided in the table below

COPFS Estate – Summary analysis against the Estate Strategic Priorities

Right Place The existing COPFS estate is diverse and complex with a range of tenures

and is historically closely aligned with the location of courts across Scotland.

Whilst COPFS staff need to access courts, they do not need to be located in

or immediately adjacent to all courts so there is some flexibility as well as

constraints in potential locations. Generally the existing locations of the

estate is considered to serve COPFS well in the short to medium term

although there are clear opportunities to review as a result of a range of

factors including: COPFS re-structure, SCTS estate development initiatives,

expiry of leases, increasing use of technology etc.

Right Size The existing estate is broadly considered of appropriate overall scale given

existing staff numbers, level of business and current service delivery models.

In the medium term, given the planned reduction in staff numbers, utilisation

targets, together with opportunities arising from the expiry of leases, SCTS

initiatives such as Justice Centres, planned digital innovation and new ways

of working, it is anticipated the overall size of the estate will be reduced

substantially.

Right Configuration The estate comprises a range of building functions however the vast bulk of

COPFS requirement is for traditional office accommodation. The estate also

includes two data centres and storage facilities. Whilst much of the estate is

considered fit for purpose there is a recognition that over the medium term the

utilisation levels should be better aligned with current standards in the public

estate. Given the range of current initiatives in place combined with expiry of

many existing leases, there are significant opportunities for COPFS to

develop the estate in the medium term to improve its configuration, flexibility

and utilisation.

Right Condition There are significant backlog maintenance requirements across the existing

estate that need to be addressed. The condition issues with data centres is

one high priority area currently being reviewed. The building condition

generally will need to be considered and addressed as part of the wider

estate development / rationalisation strategy.

Right Price A key requirement for COPFS is to deliver significant savings in the estate

costs. This would be through a combination of reduction in size and improved

efficiency including via joint working initiatives with justice partners. This will

be a key factor in taking the estate strategy forward in the short to medium

term.

c. Investment Drivers:

We recognise that there will always be a greater demand for investment in our estate that we will be able to afford in the current financial environment. Given this, it is important that we ensure, any investment in our estate not only aligns with the five strategic priorities noted above, but that it does so in the most effective and impactful way. To support and

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inform our investment decision making process we have developed three “investment drivers” which in tandem with the strategic priorities, and a requirement to ensure value for money, will be used to determine which activities we will prioritise. These are:

1. Maintain and improve our assets: will the investment ensure our estate is fit for purpose by conducting appropriate backlog maintenance, statutory compliance works and improvements? Will it improve assets and facilities so that those using them have a high quality experience in a safe and appropriate environment?

2. Maintain and improve operational efficiency: will the investment improve estate utilisation, running costs or flexibility, support alignment with COPFS structure, optimise joint working and operational efficiency with COPFS and / or with other justice partners? Does it improve wellbeing of staff, access to justice, support digital innovation and the rationalisation agenda?

3. Building sustainability and social responsibility: will the investment ensure that our estate becomes more sustainable/improve carbon reduction? Will it improve our performance in relation to public sector equality and diversity duties?

d. Key Objectives:

Our strategic priorities and investment drivers set out a clear framework for future development of the COPFS estate albeit at a high level. The following table sets out a number of key objectives that we will take forward over the coming years. The table also seeks to demonstrate how these objectives align with our strategic priorities and investment drivers.

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Table 1 – Key Estate Objectives

Investment Drivers Main Objectives Strategic Priorities

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1 Establish and maintain an environment which supports

staff to deliver the objectives of COPFS strategic plan

efficiently and effectively and to lead safe and healthy

working lives

2 Establish and maintain appropriate facilities for users of

COPFS services across the estate

3 Enable COPFS to comply with all statutory

requirements relating to building standards, fire safety,

health and safety and Equality Act

4 Enable COPFS to meet challenging targets for carbon

reduction in line with statutory obligations, including

annual 2.5% reduction in CO2

5 Explore opportunities to reduce expenditure on the

estate as a percentage of overall COPFS expenditure

6 Maximise efficiency on the occupancy and

development of the estate on a national basis through

lease arrangement, building redevelopment, acquisition

and disposal and sharing of partner buildings

7 Support the delivery of the changes needed in the

estate to implement COPFS continuous improvement

programme, including IT digital strategy.

8 Seek to free up £2m savings per annum in the estate

running costs by 2021 to allow re-investment in other

areas of COPFS operations.

9 Engage with communities/stakeholders relevant to our

estate development objectives.

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4. How we will deliver

Action Plan

Delivery of these main objectives set out above will require concerted action over the full ten year span of this strategy, covering multiple planning and budgetary periods. Whilst some of the objectives are longer term high level aspiration, others are more imminent and in some cases currently underway. The list of detailed activities set out in table 2 below, summarise activities already underway or planned over the short to medium term, demonstrating their alignment with:

the main objectives set out in the table above

strategic priorities

investment drivers.

It is recognised that the management of our estate activities can be viewed as day to day running of estate whilst other activities are more developmental in nature. Both are equally important however for the purposes of this estate strategy, the focus is on the more strategic developmental activities.

It is also recognised that there are both known and emerging requirements / opportunities that will impact upon the COPFS estate over the short medium and long term. This estate strategy including objectives and activities will be kept under regular review to ensure it remains relevant and appropriate in light of this evolving environment.

Table 2 – Estates Detailed Activities

Investment Drivers Detailed Activities Strategic Priorities

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2,

3

Undertake, backlog maintenance works to achieve

performance targets

2,

3

Improve fitness for purpose and reduce the level of

backlog maintenance and ensure statutory compliance

of estate

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Investment Drivers Detailed Activities Strategic Priorities O

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1,

2,

3,

7

Develop and maintain a list of “shovel ready” projects

so that opportunities for late release of funding can be

taken

3 In partnership with SCTS complete implementation of

works necessary to ensure the COPFS estate is

compliant with the Equality Act 2010

4 Develop and implement proposals to deliver on

performance targets for carbon reduction to achieve

statutory targets

1,

5,

6,

7,

8

Explore lease break options across leased estate,

considering wider estate objectives and operational

requirements. Establish options and implementation

plans to optimise rationalisation opportunities.

1,

5,

6,

7,

8

Explore owned estate in context of wider estate

objectives and operational requirements. Establish

options with a view to optimising opportunities for

rationalisation.

1,

5,

6,

7,

8

In discussion with SCTS and in the context of COPFS

wider estate objectives and operational requirements,

agree a cost reduction/rationalisation strategy in

relation to the embedded sites which takes account of

COPFS financial/space needs alongside SCTS

development proposals e.g. Justice, Jury centres and

tribunal operations, shared reception points in Courts.

Establish a joint approach to inform COPFS decision

making

1,

5,

6,

7,

8

Undertake a demand led analysis of existing estate to

identify need / opportunity to optimise estate location,

size and configuration. Consider alternative models in

line with COPFS agreed objectives and priorities. Also

consider objective to implement wider Scottish

Government smarter workplace initiative including

targeting utilisation standards of 8m2 per FTE and eight

desks for ten FTEs, flexible working, including home

and weekend working, alongside increased use of

technology and reduced staff numbers.

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Investment Drivers Detailed Activities Strategic Priorities O

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2,

5,

8

Develop options for making best use of Crown Office

(25 Chambers Street) whilst maintaining operational

capability and achieving COPFS’s other key objectives.

1,

2

Develop ongoing work to analyse in detail options for

data centre/data storage requirements out with Legal

House and aligned with the COPFS Digital Strategy.

2,

6,

8

Undertake a study to establish storage needs on the

basis of established principle of minimisation of storage

through records management policy, electronic

scanning, file reviews, adequate storage systems, both

within and out with offices. Target minimum of 50%

reduction on 2016 external storage levels by 2021.

5,

6,

8

Develop existing relationships with other partner

organisations, e.g. Scottish Future Trust, Police

Scotland, Local Councils etc. to identify and maximise

shared space and / or service delivery opportunities.

1,

2,

3,

4,

9

Renew FM contract in 2017 in consultation with SCTS,

establishing robust and challenging performance

targets across a range of service provision

6 Co-ordinate activities with SCTS to consider co-location

of COPFS facilities in proposed new Justice Centre in

Inverness, including disposal of redundant assets.

Estate Development Priorities

This strategy has been developed during a period of significant ongoing change within the Justice System and within COPFS. In setting the priorities, objectives and activities outlined above we have been mindful of developments already underway or planned to meet future service’s needs, manage business volumes and deliver improvements to services based around developing policies and practice. Whilst the overall strategy objectives and activities are summarised above there are a number of high priority investment activities that are highlighted in more detail in this section.

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The overriding vision and priority for COPFS is to provide an estate that is fit for purpose and which fully meets the operational needs of the organisation efficiently and effectively.

Notwithstanding this, below we set out a small number of high priority initiatives / projects that are key to delivering our overall strategy and objectives.

Reduction in running costs

This strategy sets out the objective of up to £2 million per annum saving in estate running costs by circa 2021. A key assumption critical to achieving this, is an anticipated reduction in staff numbers of approximately 150 FTE’s (between 200 – 300 persons) within the same period through natural wastage and leavers. Other options to contribute to reduced running costs are:

reduction in estate size due to improved utilisation / space standards, including consideration of homeworking, hot desking and robust application of document retention policies

operational efficiencies driven via the FM contract.

Each of the above requires a detailed appraisal however high level comment is provided below.

Estate reduction through fall in staff numbers

The raw data on the estate indicates an average occupancy level (or utilisation) of circa 18.52m2 per FTE across the entire estate. Following some adjustment to better reflect standard office accommodation we estimate current utilisation is circa 17.28m2 per FTE. Based upon the average total annual running cost across the estate of £368/m2 the table below indicates potential savings from staff reduction scenarios ranging between 200 – 300 persons.

Reduction in Staff 200 250 300

Area reduction based on 17.28m2 / FTE 3,456m

2 4,320m

2 5,184m

2

Average cost per sqm per annum £368/m2 £368/m

2 £368/m

2

Saving per annum £1,271,567 £1,589,458 £1,907,350

An alternative approach is to use the cost per FTE based upon the current COPFS figures as illustrated below:

Reduction in Staff 200 250 300

Average cost per FTE per annum £6,814 £6,814 £6,814

Saving per annum £1,362,845 £1,703,556 £2,044,267

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There is reasonable correlation between the two approaches however both assume that the required space can be reduced as a result of staff reductions and that there is a corresponding reduction across all property costs. Whilst this is a reasonable assumption at this stage a note of caution is appropriate to reflect one is dealing with an asset you may not be able to dispose of immediately and where there may not be a direct correlation between reduced staff and all elements making up the average cost of running a property. It is notable that the utilisation figure of 17.28m2 is an average and will vary significantly across properties. The specific properties affected by any reduction is therefore critical.

The above high level exercise does indicate that staff reduction scenarios of the order of 200 – 300 would make a very substantial impact on the aspirational saving of up to £2 million of current property costs.

The key actions going forward are to establish a detailed property plan and timescale in conjunction with the other operational / service initiative which are critical to maintaining service quality and volumes with reducing staff numbers.

Estate reduction through improved utilisation

As noted above the estimated average utilisation from the current COPFS estate is circa 17.28m2 per FTE. This is substantially above current government target utilisation and COPFS have now targeted a workplace standard for the office element of the estate (i.e. excluding data centre or storage facilities) of:

8m2 / FTE and

a ratio of eight work stations for every ten occupants.

This is a very ambitious target given the nature of the existing estate and other benchmarks available. For example Scottish Futures Trust report on Improving Asset Management across the Public Sector suggests a blended average rate of 10m2 per FTE is commonly used as a mid-range target.

A detailed exercise will be necessary to establish the potential savings for improved utilisation however the potential benefits, even without altering staff numbers, is that if utilisation was more than halved from circa 17.28FTE/sqm to 8FTE/sqm then the total area of the estate should be reduced by a similar factor. A corresponding saving in running costs should also be achievable. Based upon the current occupancy costs, for each sqm reduction in the utilisation rate, the indicative savings could be in the order of £575,000 per annum. It is however important to note this assumes that for this improved efficiency there is a corresponding reduction in area and in running costs – in other words the savings are cash releasable. This would only result from a planned and managed reduction in the estate looking at specific buildings.

Operational efficiencies driven via FM Contract

A new FM contract will commence in 2017 and this will provide an opportunity to establish a range of efficiency target reductions beyond those achieved to

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date. This is an area where the COPFS and SCTS teams will work together to establish these targets in light of the objectives and priorities set out in this strategy.

In all the above opportunities for savings it is recognised that there are often associated development costs associated with change. The indicative figures illustrated above focus only on running costs based on existing information therefore in the detailed work necessary to develop these priorities, associated capital and other costs associated with the change will need to be factored into the business plans.

Crown Office (25 Chambers Street, Edinburgh)

The current financial climate suggests limited funding will be available to implement this estate strategy therefore COPFS have considered potential options to make better use of existing assets to deliver savings and support the strategy.

One area we will prioritise is an assessment of the current use of the Crown Office property which is by far the most valuable owned asset in our estate portfolio (conversely the cost per square metre is low compared to leased or embedded rental costs). We have identified a number of key issues all of which we will address in detail during a feasibility study into its future use. Key issues include:

current occupancy is circa 200. Market value at March 2016 is £4,500,000, can the use of space within the property be redeveloped to deliver cost savings or efficiencies?

there are a number of teams working in other sites in Edinburgh, can we use Crown Office to support the rationalisation of requirements or provide alternative estates options to meet business needs in a more cost effective way?

the existing data centre facility at the Crown Office is not fit for purpose and costly to maintain. Will there be an ongoing need for a data centre within the building? (see para 4.2.3).

Data Centre

The existing data centres at Legal House Glasgow and 25 Chambers Street have been a high priority for COPFS for some time due to significant risks associated with their condition and potential impact on the business.

There is an ongoing study reviewing options for the data centres including the potential of outsourcing or linking to provision by other services providers such as the police.

In light of the inherent risks plus the potential impact on other elements of the estate strategy COPFS will continue to prioritise this work so that a coherent and costed proposal can go forward for approval.

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Leased Properties

Currently COPFS have 18 leased properties and as indicated, all but one (Glasgow - Ballater Street) has a lease end / break date within the period of this estate strategy.

As some of the lease breaks / end dates are sooner than others COPFS have begun to establish their thinking in terms of some of these properties, however as set out in section 3 of this strategy this needs to be considered across the entire estate and in parallel within our other business and estate objectives.

There is also a close link with SCTS plans and programme albeit funding constraints on them means there is a lack of certainty regarding these plans particularly for Justice Centres.

The priority for COPFS is to undertake a detailed review of our leased estate to develop a plan that recognises the status of each building in the context of the wider objectives for the estate. Initial thinking with regards to some of our leased estate is set out below.

It is also recognised that to renew a commercial lease, COPFS must comply with procedures to consider other public sector options and this would need factored into any proposals.

Office Lease end / break date Comment

Aberdeen - AB1, Huntly St Relocated to AB1 - May 2016 Retain

Airdrie - Graham Street Feb 2018 Available for review - link to potential Lanarkshire Justice Centre

Ayr - Carrick Street May 2016 Available for review

Dundee - Caledonian House March 2017 Retain – downsize option being actively pursued

Fort William - Shared police facility Moved to SPA accommodation Dec 2015

Available for review

Glasgow - Ballater Street Nov 2049 -

Glasgow - Legal House Part 2nd Floor

May 2023 Available for review - link to Data Centre study

Glasgow - Legal House Grd,1st & Pt 2nd Floors

May 2023 Available for review - link to Data Centre study

Glasgow - Legal House - 1st Floor May 2023 Available for review - link to Data Centre study

Glasgow Gartcosh Retain

Greenock - Victoria Court Feb 2019 Available for review

Hamilton - Cameronian House Oct 2025 Retain

Inverness - SNH - Great Glen House

April 2018 Retain - Linked to new Justice Centre.

Kirkcaldy - Carlyle House Feb 2018 Available for review - Linked to potential new Justice Centre

Livingston Civic Centre Aug 2024 Available for review

Oban - Boswell House March 2018 Available for review

Perth - Tay Street March 2017 Retain but downsize

Stirling - Carseview House Aug 2018 Available for review

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Governance and Review

This strategy has been developed in consultation with the COPFS with support from SCTS Estates. It has been approved by the COPFS Executive Board. Having determined the scope of the Strategy COPFS is committed to using it to direct future investment decisions and prioritisation, which will be detailed in future COPFS Corporate and Business Plans. It will be used by the COPFS Estates Unit to inform detailed business unit planning and operational prioritisation.

The strategy is not standalone, successful delivery is also dependent on, and linked to, other key activities taking place within COPFS. The key strategic dependencies are:-

the Workforce Planning Strategy

the Digital Strategy

outputs from the Financial Sustainability Project.

The COPFS Estate is managed by the Shared Services Board (SSB) under a formal Shared Services Agreement signed by COPFS and SCTS in 2011 and reviewed on an open ended basis in 2014.

The strategy will be subject to periodic review particularly detailed activities set out in Table 2, which will be periodically updated to demonstrate the range of activity under way at any given point of time in pursuit of the strategy. Formal reviews of this strategy will be undertaken to align with spending review settlements and to ensure it continues to be aligned with COPFS objectives and strategic priorities.

Appropriate governance and controls will be put in place for individual activities taken

forward under the strategy – with oversight of their delivery provided by the COPFS

Director of Estates and the Shared Services Board. The chart below indicates the

structure from the management of the COPFS estate.

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Estates Management of COPFS Estate

A range of approaches are taken to governance and management to ensure successful delivery. Where major change or development is proposed these include:

the development of robust business and financial cases in relation to the use of the COPFS capital programme

commercial options appraisal and use of optimal procurement routes for the projects to be delivered

periodic review of the delivery capabilities of the COPFS Estates function and development of service requirements to support delivery of the Estate Strategy

clear processes for interfacing with partners, service providers and users

in the case of major investments the development of a benefits realisation plan that sets out how the benefits from the investment will be measured and captured to ensure that projects deliver the required benefits and align to COPFS requirements

detailed business and project plans which describing the sequencing of projects, work packages, timescales, stakeholder management and key risks to be managed.

Key Performance Indicators (KPIs)

In addition to these specific actions and controls the COPFS maintains and monitors a suite of estates Key Performance Indicators (KPIs) to ensure that day to day delivery of estates business supports the effective operation of the estate – and is in line with the priorities set out in this strategy.

COPFS has established contractual arrangements with delivery organisations who provide facility management (FM) services for the Estate. This includes Service Level Agreement’s and a range of KPIs, which set standards for a series of performance criteria including:

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availability of facilities, customer satisfaction rating, maintenance, security and cleaning etc. This FM contract will be renewed in 2017 and we will ensure it continues to incorporate robust and challenging KPIs that reflect our priorities, whilst delivering value for money.

In addition the COPFS Estates Team through the Shared Services Agreement will continue to assess the ongoing effectiveness of the estates function using the following KPIs:

Utilisation: we work towards a utilisation of 8m2 per FTE and a rate of eight workstation to ten occupants for office accommodation over the period of the strategy

Building Conditions: subject to sufficient funding we will strive to have less than 20% of the estate in condition C/D by 2026

Backlog Maintenance: subject to sufficient funding we will work towards a reduction in backlog maintenance to below 9% of the replacement value of our property portfolio by 2026

Carbon Reduction: we will continue to monitor emission levels, aiming to achieve a 12.5% reduction in current (2016) carbon emission levels by 2021

BREEAM: all major new build projects will be assessed in line with BREEAM best practice standards to deliver sustainable value and efficiency.

Equality Act Accessibility: we will improve upon the current compliance status of the estate by 2018 based on the accessibility audits and reports completed during 2015/16 and published during 2016/17. All new or refurbished accommodation will be assessed for compliance with the Act to ensure accessibility meets required standards.

Promoting transparency

Our investment decisions will be made in an open and transparent manner, based on fully developed business cases which support the corporate plan objectives and are in line with the vision, themes and objectives set out in this strategy.

Strong project and financial management

We take a structured approach to managing change in the COPFS, based on best practice methodologies. All organisational changes are managed as either Projects or Programmes and a robust process of project reporting and monitoring is used to ensure both spend and programmes are adhered to and exceptions highlighted at the earliest opportunity. The Estates Unit will continue to work through the Shared Services Agreement, together with external resource as necessary to ensure continued strong project and financial management.

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Key principles of Estate Management

The following principles are an integral part of the management ethos for operation and investment in the estate by the Shared Service Board and have been supported by the senior management team of COPFS.

the estate is managed by the Shared Services Board (SSB) under the formal Shared Service Agreement signed in 2011 and renewed on an open ended basis in 2014

Shared Services Charges including management of capital projects & the SCTS capital charge are agreed annually in advance by the SSB

value for money and Value Engineering are a foundation principle in all constituent contracts and new projects managed by the SSB

maximising VAT Reclaims is a principle adhered to by the SSB but directly managed by COPFS finance division

the principle that savings arising from building efficiencies, investment programmes or closures should be available to the Estates budget for further reinvestment if further savings can be achieved

the principle of a reducing estate is accepted for the life of this strategy

the principle of not renewing private sector leases is accepted for the life of this strategy and is a key SG principle (subject to suitable public sector accommodation being available)

in the context of rationalisation of the built estate – where COPFS provide services from within a court, it shall be a minimum locational principle that COPFS retain a visual presence in Sheriff Courts – and not a necessity that an actual COPFS office need be retained at all sites. In effect, that presence need not be a building or a room necessarily as long as an erected sign is present

building on our strategy to increase digital processing and the use of iPads in court, office locations will be based on service provision and support for court prosecution rather than the need for local records and files

the COPFS senior management team have confirmed that the COPFS Estates Director is responsible for the utilisation/allocation of the estate and is consulted on any office changes which affect the estate footprint

collaboration by COPFS in Justice Centre projects is an established principle

collaboration by COPFS with SCTS & Police Scotland Estates Strategies is an established principle

the principle of one desk/workstation only per person at their designated base is established – all staff are to operate from hot desks at other offices when visiting.

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the principle of minimisation of storage through business implementation of records management policy, electronic scanning, file reviews and adequate storage systems, both within and out with offices is established

the full and effective implementation of the existing Clear Desk Policy is an essential component to the secure rationalisation of the estate, primarily in minimising security risks

the minimisation of productions and related storage is key to the future rationalisation of the estate and is an established principle of the COPFS estate strategy.

Whilst these principles are not exhaustive and must operate within the confines of effective delivery of COPFS business, they are key to continuing to deliver an estate for COPFS which is adequate, safe and effective.

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Appendix A: Office Locations

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Appendix B: Property Schedule

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Appendix C: Valuations

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Appendix D: Utilisation

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Appendix E: Running costs