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The Staffordshire
Strategic Property Partnership
Partnership Plan
2016-2019
Partnership Plan
2 2016-19
Executive Summary
This is the second Partnership Plan developed through the Penda Property
Partnership. The Partnership, jointly procured between Staffordshire County Council
(SCC) and Staffordshire’s Police and Crime Commissioner (PCC), appointed Kier in
June 2015 as the Private Sector Partner in the Partnership.
The Partnership Plan (PP) is the 3 year delivery plan for the Strategic Asset
Management Plan (SAMP). The SAMP sets out how land and property assets will be
used to support the delivery of the council’s outcomes, the PCC’s priorities and the
Collective Partnership Ambitions (CPAs). The PP identifies the portfolio of projects
that have been prioritised through the Partnership for development to deliver the
SAMP.
The PP is a rolling plan which will be refreshed annually.
The portfolio includes:
A strategic review of all public sector land and property to support the development of a “One Public Estate” approach and initial reviews of various asset classes for the council
New enterprise and incubator units in the right location to deliver clusters of
higher value jobs in advanced engineering, high technology, health and sustainability industries
Regeneration of key areas of need with major new housing developments
delivering all forms of accommodation including general housing, affordable
housing with a mix of tenures, plus flexi-care and other specialist housing requirements
New community hubs and facilities in the north and south of the county to
support co-location of public sector organisations and the third sector whilst
offering additional community use
New community healthcare facilities to provide better access for those areas most in need and to support a move to a preventative approach to healthcare
Support for town centre redevelopment initiatives and master plans to ensure that aspirations can be delivered within the optimum timescale whilst securing
the maximum returns for both public and private sector investment
Generate significant capital receipts for reinvestment and deliver a
significantly reduced footprint, lower running costs, sustainable income streams and greater energy efficiency
Partnership Plan
3 2016-19
During the first year of its existence the Penda partnership has contributed or supported the following to be achieved:
Key Achievements for the Partnership during 2015/16
(a) Bedding in of the Partnership and establishment of governance
arrangements;
(b) Capital receipts received in the order of £12.2m;
(c) Planning consent obtained for 689 houses;
(d) Commencement of development of the Newcastle Public Sector Hub;
(e) Review of OPCC FM services which has generated a significant saving;
(f) Key reviews of Enterprise Centres and County Farms.
Performance – Collective Partnership Ambitions (CPAs)/ Key Performance
Indicators (KPIs)
The Penda Partnership has made positive progress in delivering against the six CPAs:
Ambition 1 – Support Staffordshire LEP Strategy to grow and generate new jobs – it is anticipated that the projects completed to date will
enable 12 apprentices to be recruited and trained; Ambition 2 - Support the Staffordshire Health and Wellbeing
Strategy – An extra care scheme will provide 74 apartments at The Meadows, Biddulph;
Ambition 3 – Support a Safer and Fairer United Community Strategy -
Future developments will incorporate Secure by Design with input from the OPCC;
Ambition 4 – Supporting the outcome from the Council’s Strategic Plan increasing the number of houses across Staffordshire. The Penda Partnership is to date enabling developers to deliver 189 units,
following the sale of sites. A further 500 houses have outline planning consent;
Ambition 5 – Add value and increase levels of Capital Receipts. The Penda Partnership has supported the County Council to deliver Capital Receipts in the order of £12.2m and annual savings of circa £300,000
to the OPCC through providing a total FM solution; Ambition 6 – Support “One Public Estate” agenda – The Penda
Partnership working with SCC and South Staffs has produced a “Strategic Delivery Plan” and the outcome of the this funding
submission is expected imminently.
Partnership Plan
4 2016-19
Key Contacts
For further details contact any of the Penda Property Partnership’s Directors
Jamie MacDonald 07870 994427
Pete Slater 07528 976152
James Nicholson 07500 794500
Partnership Plan
5 2016-19
The Penda Property Partnership
The Penda Property Partnership was formally established between SCC, the PCC and Kier in June 2015, as an innovative approach to enable the council and the PCC to
maximise the opportunities available from land and property assets to support the delivery of outcomes and priorities. These are set out in Appendix 2 together with our Collective Partnership Ambitions.
This is a unique, long term partnership (10 years with the option to extend for a
further 5 years) which brings together the commercial expertise, innovation, access to established and proven networks from Kier, with the knowledge, skills and expertise of the public sector. This synergy will provide the ability to maximise the
efficiency, effectiveness and opportunities available in the use of land and property assets to support the delivery of outcomes and priorities as well as improved
financial benefits. The Partnership operates on an equitable basis with the public and private sector
having equal membership and voting rights operating under a deadlock principle. The Partnership is governed by the Penda Property Partnership Board (PPP Board)
which includes equal membership from each of the three partners. Further details can be found at Appendix 3.
The Strategic Asset Management Plan At the heart of the partnership are two intrinsically linked key documents, the Strategic Asset Management Plan (SAMP) and the Partnership Plan (PP).
The SAMP sets out the strategic ambitions of how land and property will be used to
support and enable the delivery of SCC’s outcomes and the PCC’s priorities over the next 5 years. A copy of the SAMP can be found on the Penda website: www.pendaproperty.com
The Partnership Plan The PP sets out the portfolio of projects and programmes in a priority order that
have been initially identified through the partnership’s mobilisation period as those most likely to deliver the ambitions of the SAMP over the next 3 years whilst
securing the agreed return on investment for Kier. Both the SAMP & PP are subject to an annual refresh which is approved by the council’s Cabinet and the Police & Crime Commissioner prior to being signed off by the PPP Board.
The prioritised list of projects and programmes are listed in Appendix 1
In addition the PP also sets out:
Appendix 2 - SCC’s outcomes, the PCC’s priorities and the CPAs Appendix 3 - Penda Property Partnership Governance
Appendix 4 - the Prioritisation Methodology Appendix 5 - the Performance Framework
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6 2016-19
Appendix 6 – the Value for Money Process Appendix 7 - Baseline Values
Once the PP has been approved the initial strategic business cases (SBC) will be
further developed for each project or programme in line with the agreed phasing to clarify that the scheme is viable. After which an outline business case (OBC) will be developed setting out all the potential options for delivering the project and
achieving the required outputs, confirming that the project represents value for money and recommending a preferred option. Once the OBC has been approved by
a full business case (FBC) is developed for the preferred delivery option which recommends a preferred delivery solution based on value for money. On approval of a FBC the contracts required to deliver a project will be awarded by the appropriate
partner direct with Kier or whichever delivery solution offers the best value for money. Projects included in the PP that were already underway prior to the
commencement of the Partnership may already be at a more advanced stage with an agreed OBC or FBC.
New projects arising between each annual refresh will be considered on their merits together with any need for reprioritisation. These may need to be referred for
decision by each partner as part of the approval process. The Deputy Leader of SCC, as the council’s PPP Board Member, has the authority to approve the business cases for any new project requiring an investment from the council up to the value of £10
million. Anything over £10 million will form a “Council Reserved Matter” and those business cases will need to go to Cabinet for approval. For the PCC, the Police &
Crime Commissioner sits on the PPP Board and has the authority to take any decision relating to the PCC’s land and property assets.
Once the PP has been approved the PPP Board has the authority to approve or reject the resultant outline and final business cases. Where a business case is rejected by
the PPP Board and an agreement cannot be reached following appropriate reworking the project will be withdrawn from the Partnership and delivered by the council or PCC through their traditional procurement routes.
At the time of approving the PP the council’s Cabinet can identify any project as a
“Reserved Matter”, in line with the council’s key decisions, where it wishes to approve the outline and/or final business case prior to a decision by the PPP Board.
By taking a longer term strategic approach, the Partnership is able to combine projects that can deliver high levels of social benefits but are not immediately
financially viable with projects that can deliver high financial benefits into a programme to facilitate delivery. The decision to combine projects into a programme
will be based on the benefits from the high social value projects repaying financially in the longer term through prevention and reducing the need for people to access public sector services.
It is important to note that a project listed in the PP is not a guarantee of delivery
because in developing the outline and/ or full business cases a scheme may prove to be unviable.
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7 2016-19
Scope of the Partnership Plan
The PP can include all land or property assets owned by the PCC and any land or property assets owned by the council (except those associated with operational
schools). The PP may also include land or property owned by other public sector partners or private sector organisations where the delivery of the project contributes to the delivery of SCC outcomes and/or the PCC’s priorities. It is important to note
that all property and land remains in the ownership of the public sector partners under the Partnership unless a decision is taken via a business case to transfer or
dispose.
How Projects are Initially Identified This initial PP has been developed as part of the mobilisation phase of the Partnership to demonstrate that all partners can work successfully together in a
partnership prior to contract award. Therefore, this initial PP does not demonstrate the full extent of the benefits expected from the Partnership once it is fully
operational. The majority of the schemes in this PP have been extracted from SCC and the PCC’s existing portfolios of projects and programmes with a number of additional opportunities added that were highlighted during the mobilisation period.
For the next iteration of the PP there will be far greater levels of engagement with all
commissioners, partners and key stakeholders over the preceding 12 months to identify further opportunities and develop more locality-based asset management plans linked to the delivery and/or enablement of outcomes and priorities.
Strategic Business Cases (SBC) For a project or programme to be considered for inclusion in the PP a high level
strategic business case is produced to indicate the expected benefits and to confirm that the scheme is aligned with supporting or enabling the delivery of SCC outcomes and/or the PCC’s priorities. The information from the SBC is used to support the
prioritisation of the PP.
Prioritisation Methodology
A methodology has been developed through the partnership to prioritise the projects and programmes in the PP based on the impact on SCC outcomes, PCC priorities and
delivering the agreed level of returns for each partner. A detailed explanation of the Prioritisation Methodology is attached at Appendix 4.
Scheduling
As explained above, the ranking of projects in the PP is based on the benefits the projects and programmes will deliver both social (the impact on SCC outcomes and
PCC priorities) and financial returns. Whilst the aim is always to deliver the highest priority schemes first this is not always practical e.g. a master plan for a town centre
Partnership Plan
8 2016-19
may take a considerable amount of time to develop the proposals and consult with stakeholders before any delivery can commence.
The PP therefore, reflects a priority order that considers both the impact on SCC outcomes and PCC priorities in addition to other factors such as the market,
deliverability and resources.
Resources The Partnership commits through the associated agreements that each Partner in
the Penda Joint Venture Company (JVCo) will provide the necessary resources on an equitable basis to develop the council’s business cases listed in the PP.
Kier will ensure that the necessary resources are allocated to ensure that business cases are developed for the PCC’s projects listed in the PP.
The development of business cases and delivery of projects through the Partnership
is open to other public sector partners in Staffordshire and the neighbouring areas. Where opportunities arise from these partners, named as “plug and play”, these projects will not be included in the PP but the level of resource required to support
these projects will be assessed to make sure that taking on the work does not affect the ability of the Partnership to deliver the projects in the agreed PP.
Performance Management
The performance of the Partnership is managed through an agreed approach as set out in Appendix 5. Performance is managed at three levels within the Partnership
described as Level 1 - PPP, Level 2 - JVCo and Level 3 - Project / Contract Level.
Level 1 – Penda Property Partnership At the Partnership level the partners have agreed a set of Collective Partnership Ambitions (CPAs) against which the overall success of the
Partnership will be assessed. These relate to the support of SCC outcomes and PCC priorities.
Level 2- Joint Venture Company (JVCo)
The measures at level 2 relate to the performance of the JVCo activities
including the delivery of the SAMP, PP, JVCo Business Plan and Business Cases as well as the overall performance of the portfolio.
Level 3 - Project KPIs
The level 3 measures relate to the performance of individual projects and
programmes. These measures are defined within the project’s delivery contract which includes a mechanism for addressing poor performance
including termination. The agreed supplier will be held accountable for their performance.
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9 2016-19
Value for Money In order for the PPP Board to approve the business cases developed through the
JVCo, it must make a Value for Money (VfM) judgement both in terms of a project’s viability and then the preferred delivery solution.
In the context of the PPP, VfM is defined as:
In considering Value for Money, the Council and the PCC will consider the definition of Value for Money set out in Managing Public Money, published by
HM Treasury, which defines Value for Money as: “ensuring that the organisation’s procurement, projects and processes are systematically evaluated to provide confidence about suitability, effectiveness, prudence,
quality, good value judged for the public sector as a whole.”
The Council and PCC will also consider the maximum benefit in terms of the SCC outcomes and/or PCC priorities that can be obtained from the council and/
or PCC land and property estate (or by incorporating wider land interests, if appropriate) taking into account service improvements, social and economic effectiveness and efficiency considerations from a public sector perspective.
The VfM principles and methodology are set out in Appendix 6.
Baselines In order to be able to assess the added value from the Partnership (e.g. an increase
in capital value) an appropriate baseline value must be identified.
Baselines for development sites will mainly be market value although there needs to be a reflection of any value that SCC or PCC may secure in the market by virtue of any expectations of planning permission etc e.g. where a site is now included in the
SHLA.
Base values for more services orientated projects such as rationalisation of the PCC estate will be easier to determine as running costs, rates, rents etc will already be established.
Baseline principles and methodology is set out in Appendix 7.
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10 2016-19
Partnership Plan 2016 to 2019
The initial PP has been developed by selecting those projects from SCC and the PCC’s existing list of projects that best support the delivery of outcomes and
priorities along with the addition of a number of new projects and series of strategic reviews. These projects not only aligned with supporting outcomes and priorities as set out within the relevant strategies and plans for SCC and the PCC but also the
themes identified during meetings and workshops with partners and commissioners during development of the SAMP.
Projects have been allocated to the PPP where added value including skills, capacity, pace, innovative funding etc are evident. Some projects have been developed with
the PPP in mind such as the review of FM for the PCC and further estate rationalisation.
The initial portfolio of projects includes:
A strategic review of all public sector land and property to support the development of a “One Public Estate” approach and initial reviews of various
asset classes for the council
New enterprise and incubator units in the right location to deliver clusters of
higher value jobs in around advanced engineering, high technology, health and sustainability industries
Regeneration of key areas of need with major new housing developments
delivering all forms of accommodation including general housing, affordable
housing with a mix of tenures, plus flexi-care and other specialist housing requirements
New community hubs and facilities in the north and south of the county to
support co-location of public sector organisations and the third sector whilst
offering additional community use
New community healthcare facilities to provide better access for those areas most in need and to support a move to a preventative approach to healthcare
Support for town centre redevelopment initiatives and master plans to ensure that aspirations can be delivered within the optimum timescale whilst securing
the maximum returns for both public and private sector investment
A review of the PCC estate and facilities management services to support operational objectives, rebalance the estate, generate significant capital receipts for reinvestment and deliver a significantly reduced footprint, lower
running costs and greater energy efficiency
We will add to the portfolio as we further develop the Partnership and as we move forward and join with our partners across the county to deliver new and comprehensive approaches to our challenges and opportunities.
Partnership Plan
11 2016-19
Appendix 1
The following Portfolio confirms the prioritised list of projects & programmes which
have been identified to support the delivery of the SAMP over the next 3 years. The
PPP Board will commission the JVCo to produce business cases for the projects
where the Partnership can add value with the business cases for the other projects
developed through the Strategic Property Team. Whilst the aim of producing the
Portfolio is to establish a higher level of certainty, the Portfolio may change during
the year as new opportunities are identified. In all cases the PPP Board will approve
any changes and reprioritise accordingly. The Portfolio along with the SAMP & PP will
be refreshed annually and submitted to the council’s Cabinet and the Police and
Crime Commissioner for approval.
Appendix 1 Revised 22/8/16 - Pre mandated, Project mandated, Project complete benefits delivery
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Project Ref No
Year of Strategic Business
Case Produced
Asset
Outcome the Business Case is to consider, investment
to achieve the benefits
1 Yr1 15/16 OPCC FM Review FM Service Transfer making revenue saving
County Wide
Matthew Ellis (Police & Crime Commissioner)
Multi
2 Yr1 15/16 Greenwood House (Burntwood)
Investment to create a New Health Centre
Lichfield Alan White Jeffrey Sheriff
3 Yr1 15/16
Newcastle Public Sector Hub including Ryecroft Site and surplus properties
Rationalisation & Consolidation - Revenue saving + facilitating inward investment, Jobs & Housing
Newcastle Ian Parry / Mark Winnington
Stephen Sweeney
5 Yr2 16/17 Leek High School (Land)
Disposal - Facilitating Residential
Staffs Moorlands
Ian Parry Charlotte Atkins
6 Yr1 15/16 Tutbury Road Disposal - Facilitating Residential (500 homes)
East Staffs Ian Parry Bob Fraser
7 Yr1 15/16 i54 Investment to create a Business & Enterprise Centre
South Staffs / Wolverhampton
Mark Winnington
Robert Marshall
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Appendix 1 Revised 22/8/16 - Pre mandated, Project mandated, Project complete benefits delivery
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Project Ref No
Year of Strategic Business
Case Produced
Asset
Outcome the Business Case is to consider, investment
to achieve the benefits
8 Yr2 16/17 Greyfriars Depot Sale for residential Stafford Ian Parry Ian Hollinshead
9 Yr1 15/16 OPCC's Lichfield Police Building
New Police Building Lichfield Matthew Ellis Caroline Wood
11 Yr1 15/16 Land off Doxey Road, Stafford (St. Gobain relocation)
Infrastructure / Construction / Residential (150 approx)
Stafford Mark Winnington / Ian Parry
Mark Winnington
12 Yr2 16/17 Keele Science Park IC7 Business Centres
Investment to create Business & Enterprise Centre + employment
Newcastle Mark Winnington
Derrick Huckfield
15 Yr1 15/16
Watery Lane, Codsall & Codsall Day Services Histons Hill
Disposal - Facilitating Residential (160 - 190homes)
South Staffs Ian Parry Robert Marshall
16 Yr2 16/17 Uttoxeter - Ex Depot
Disposal - Facilitating Residential (30 homes) / Affordable Housing
East Staffs Ian Parry David Brookes
18 Yr3 17/18 Peartree Primary site (85 homes)
Disposal to Facilitate Residential (85 homes)
Cannock Mark Winnington
Alan Dudson
86 Yr1 15/16
OPCC Estate Review Ph 1 • Blythe Bridge, Police Station
Disposal to realise a receipt & save revenue
County wide
Matthew Ellis (Police & Crime Commissioner)
William Day
87 Yr1 15/16
OPCC Estate Review Ph 1 • Newcastle U Lyme, Police Station
Disposal to realise a receipt & save revenue
County wide
Matthew Ellis (Police & Crime Commissioner)
Stephen Sweeney
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Appendix 1 Revised 22/8/16 - Pre mandated, Project mandated, Project complete benefits delivery
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Project Ref No
Year of Strategic Business
Case Produced
Asset
Outcome the Business Case is to consider, investment
to achieve the benefits
88 Yr1 15/16
OPCC Estate Review Ph 1 • Stoke, Police Station
Disposal to realise a receipt & save revenue
County wide
Matthew Ellis (Police & Crime Commissioner)
NA
89 Yr1 15/16
OPCC Estate Review Ph 1 • Stone, Police Station
Disposal to realise a receipt & save revenue
County wide
Matthew Ellis (Police & Crime Commissioner)
Philip Ezra Jones
90 Yr1 15/16
OPCC Estate Review Ph 1 • Tunstall, Police Station
Disposal to realise a receipt & save revenue
County wide
Matthew Ellis (Police & Crime Commissioner)
NA
24 Yr1 15/16
Ph1 Sites identified from Libraries Review Programme
Invest & consolidate, disposal to save revenue
County wide Gill Heath Multi
25 Yr2 16/17
Consolidate or relocate 4 identified Highways Depots Leek, Stone, Gailey & Lichfield
Invest & consolidate, disposal to save revenue
County Wide Ian Parry
Charlotte Atkins Philip Jones Mark Sutton Janet Eagland
26 Yr2 16/17 Locations identified by SCC Energy Review
Invest to save revenue
County Wide Mark Winnington / Ian Parry
Multi
28 Yr2 16/17
4 Sites identified by County Farms Review 3 Deanery 4 Old Wood Estate 4 Whitemere Estate 2 Yarlet Estate
Invest & consolidate, disposal to save revenue
County wide Mark Winnington/ Ian Parry
Mark Edward Sutton Martin Tittley Tim Corbett Ian Parry
30 Yr3 17/18
Leek Town Centre Regeneration - Ashbourne Road Gateway
Invest to achieve multi outcomes
Staffs Moorlands
Ian Parry Charlotte Atkins
31 Yr3 17/18
Gnosall, Stafford Road Land (Phase 1 75 Houses followed by Phase 2 with 75)
Disposal for residential
Stafford Ian Parry Mark Winnington
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Appendix 1 Revised 22/8/16 - Pre mandated, Project mandated, Project complete benefits delivery
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Project Ref No
Year of Strategic Business
Case Produced
Asset
Outcome the Business Case is to consider, investment
to achieve the benefits
34 Yr3 17/18 Land at Falmouth Avenue
Disposal to facilitate Residential
Stafford Mark Winnington
John Francis
35 Yr4 18/19 Highfield Farm, Chasewater, WS8 7NL
Disposal to facilitate Residential
Lichfield Mark Winnington
Jeffrey Sheriff
36 Yr2 16/17
Aelfgar - Phase 1 (Flexi Care Development) (FC Phase 1b)
Disposal to facilitate Residential
Cannock Alan White Alan Dudson
37 Yr3 17/18 Millennium Way, Bilbrook
Disposal to facilitate Residential
South Staffs Mark Winnington
Robert Marshall
39 Yr1 15/16
Short Street (Former Infants School) (FC Phase 1b)
Disposal to facilitate Affordable Housing
East Staffs Ian Parry Peter Davies
42 Yr2 16/17
Former Springvale Playing Fields (Not available until 2016)
Disposal to facilitate Residential
Cannock Ian Parry Alison Joy Spicer
43 Yr2 16/17 Aelfgar - Phase 2 (General needs housing)
Disposal to facilitate open market residential
Cannock Ian Parry Alan Dudson
44 Yr2 16/17 Oakdene Day Centre (Lichfield)
Disposal to facilitate open market residential
Lichfield Ian Parry Jeff Sherif
45 Yr2 16/17 Uttoxeter Master Plan & Area Offices
Invest to achieve multi outcomes
East Staffs Mark Winnington/ Ian Parry
NA
46 Yr2 16/17
Cheadle Town Centre Master plan (Tape St, Wells St) - Lightwood Sold 21/05/2014
Invest to achieve multi outcomes
Staffs Moorlands
Mark Winnington/ Ian Parry
Mark Deaville & Mike Worthington
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Appendix 1 Revised 22/8/16 - Pre mandated, Project mandated, Project complete benefits delivery
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Project Ref No
Year of Strategic Business
Case Produced
Asset
Outcome the Business Case is to consider, investment
to achieve the benefits
47 Yr1 15/16 Whittington Youth Centre (5 home)
Disposal to facilitate Residential (5 homes)
Lichfield Ian Parry Alan White
49 Yr3 17/18 Kingswood Lakeside
Invest to facilitate delivery of a Business Park and wider benefits
Cannock Mark Winnington
Diane Todd
50 Yr1 15/16 Wedgwood Memorial College, Barlaston
Disposal to facilitate Residential
Stafford Ian Parry Ian Parry
51 Yr2 16/17 Shire Hall, Stafford
Lease for offices, revenue income,
Stafford Ian Parry Maureen Compton
52 Yr1 15/16
Staffordshire Archive / William Salt Library / Lichfield Library
Archive consolidation, rationalisation of library, revenue saving, asset freed for disposal.
Stafford Ian Parry Maureen Compton
54 Yr3 17/18 Dippons Lane, Perton
Disposal to facilitate Residential
South Staffs Ian Parry Keith James
57 Yr3 17/18 Nursing Home site in Chadsmoor
Invest to deliver New Health Centre
Cannock Ian Parry Derek Davis
58 Yr3 17/18
Old Fire Station, Newcastle Street. Old Highways depot
Disposal to facilitate Residential
Stafford Ian Parry Philip Ezra Jones
61 Yr3 17/18 Judges Residence, Stafford
Disposal to facilitate Residential
Stafford Ian Parry Maureen Compton
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Appendix 1 Revised 22/8/16 - Pre mandated, Project mandated, Project complete benefits delivery
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Project Ref No
Year of Strategic Business
Case Produced
Asset
Outcome the Business Case is to consider, investment
to achieve the benefits
63 Yr2 16/17 Burton Area Office Estate
Rationalisation & Consolidation - Revenue saving + facilitating inward investment, Jobs & Housing
East Staffs Ian Parry Ron Clarke
64 Yr1 15/16 Ivy House Disposal Cannock Ian Parry Alison Joy Spicer
65 Yr1 15/16 Stafford office moves
Rationalisation, (wedgwood/Kingston) revenue saving & Cap receipt
Stafford Ian Parry Maureen Compton
66 Yr1 15/16 Codsall & Codsall Day Services Histons Hill
Residential - Housing for Older people
South Staffs Ian Parry Robert Marshall
67 Yr1 15/16 Great Wryley Day Centre & CSU
Disposal to facilitate Residential Development
South Staffs Ian Parry Kath Perry & Mike Lawrence
69 Yr2 16/17 Highfields, Stafford
Disposal to facilitate Residential (57 homes)
Stafford Ian Parry Trish Rowland
71 Yr3 17/18 Leek - Britannia House
Disposal to facilitate Residential
Moorlands Ian Parry Charlotte Atkins
72 Yr1 15/16 Shugborough Estate
Revenue saving Stafford Ian Parry / Gill Heath
Len Bloomer
73 Yr2 16/17
Ph2 Sites identified from Libraries Review Programme
Invest & consolidate, disposal to save revenue
County wide Gill Heath Multi
74 Yr2 16/17 Redhill Business Park plot 1A
Develop to faciliate new St Gobain facility
Stafford Mark Winnington
Frank Chapman
75 Yr2 16/17 Redhill Business Park plot 1B
Develop or disposal to faciliate trade city
Stafford Mark Winnington
Frank Chapman
86 Yr1 15/16 Hawthorn House & Scotch Orchard
Provision for learning disability accommodation
Lichfield Ian Parry / Alan White
Janet Eagland / Caroline Wood
90 Yr2 16/17 Stone Youth Centre
Disposal to achieve capital receipt
Stafford Ian Parry Philip Ezra Jones
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Appendix 1 Revised 22/8/16 - Pre mandated, Project mandated, Project complete benefits delivery
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Project Ref No
Year of Strategic Business
Case Produced
Asset
Outcome the Business Case is to consider, investment
to achieve the benefits
91 Yr2 16/17 Brewood Youth Centre
Disposal to Scout Group
South Stafford Ian Parry Mark Edward Sutton
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Appendix 2 – Council Outcomes, PCC Priorities & Collective Partnership Ambitions
Council Outcomes
The county council’s vision in the Strategic Plan 2014-18 “Leading for a Connected Staffordshire” is for:
“A connected Staffordshire, where everyone has the opportunity to prosper, be healthy and happy”
This vision has a focus on three priority outcomes via which the people of Staffordshire will:
Be able to access more good jobs and feel the benefits of economic growth
Be healthier and more independent Feel safer, happier and more supported in and by their community
PCC Priorities
The strategy of the Police & Crime Commissioner (PCC) has a vision for “Safer, Fairer, United Communities” with four key priorities through to 2018:
Early intervention - “tackling root causes before they become a problem”
Victims and witnesses - “making it easier for victims and witnesses to receive the support they need”
Managing Offenders - “preventing offending in the first place and reducing the
likelihood of reoffending” Public Confidence - “making sure everything that happens contributes to
individuals and communities feeling safer and reassured”
Collective Partnership Ambitions (CPAs)
Ambition 1 – support the key aim of the Stoke on Trent & Staffordshire Local
Enterprise Partnership Strategy to grow the economy by 50% and generate
50,000 new jobs in the next 10 years (50:50:10)
Ambition 2 – support the Staffordshire Health & Wellbeing Strategy which
focuses on prevention to reduce the number of elderly, disabled and
vulnerable people that require health and social care services through
improved independent living
Ambition 3 – support the Safer, Fairer United Communities Strategy by
increasing the number of residents who feel safer in their communities
through improved alignment of operations and systems to new or improved
facilities
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Ambition 4 – support the outcome from the Council’s Strategic Plan 2014-
2018, Leading for a Connected Staffordshire to increase the number of
affordable, decent housing across Staffordshire.
Ambition 5 – add value and pace in delivering more certain and increased
levels of capital receipts, increased levels of development funding, reducing
revenue costs and developing new sustainable income streams
Ambition 6 - support a “One Public Estate” (OPE) initiative through proactive
engagement with key public sector stakeholders, landlords and property
owners to ensure we get the most from a realigned and more efficient asset
base across the public estate
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Kier
SCC PCC
(Unincorporated) Penda Property Partnership Board
(PPP Board)
Public SectorPartnership
Penda Limited (Joint Venture Limited
Liability Company)
50%SHARE
SCC
50%SHARE
Kier
Subsidiary Trading Cos
Project LABVs
SAMPBusiness
CasesPartnership
Plan
Production Approval
Overarching JV Collaboration Agreement
Kier
Plug & Play
Kier Supply Chain
Project SPVs
ContractsVfM assessment
Best VfM solution
Intelligent Client Function
Client Functions
Market Supply Chain
V4.3
OROther Public
Sector partners
1
2
3
4
5
Staffordshire Strategic Property Partnership (Penda Property Partnership)
Appendix 3
Penda Property Partnership Governance
The governance structure for the Partnership was developed
through the procurement process and is reflected below with each
of the main component parts numbered 1 to 5 explained.
In summary, the Penda Property Partnership (PPP) is a non-
integrated partnership, operating on an equal 50:50 public to
private basis through a deadlock arrangement. This makes sure
that the public and private sector have equal voting rights and no
one party can veto a decision by another party.
The council and the PCC have established a public partnership to
agree how to cast the public vote in the partnership, however, it
has been agreed that for issues where the other party has no valid
interest they will not vote unless a decision is deemed contrary to
either organisations strategic direction or overarching philosophy.
Partnership Governance
Partnership Plan
21 2016-19
Public Sector Partnership
SCC and PCC have come together into a public sector partnership with a Public
Sector Vote. The PCC Board Member will vote on PCC Projects and the Council
Board Member will vote on SCC Projects. On Joint Projects, the PCC Board
Member and the Council Board Member will agree on a Public Sector Vote in
advance of a PPP Board meeting. All agreements and voting will be subject to
deadlock and the parties agree not to vote in a way which contradicts either
SCC Outcomes or PCC Priorities.
Unincorporated Penda Property Partnership Board (PPP Board)
SCC, PCC and Kier have entered into Joint Venture Collaboration Agreement
that sets out how the Partnership will operate. The Partnership is governed by
the PPP Board which is unincorporated (each public sector partner keeps the
benefit relating to their own land and property), has equal voting rights
(50:50) between the public and private sector and operates under deadlock
(both public and private sectors have to unanimously agree on a decision
otherwise deadlock is invoked.
The PPP Board has equal membership with the Cabinet Member with
responsibility for land and property (currently Cllr Ian Parry) and the Senior
Leadership Team member with responsibility for land and property (currently
Andrew Burns) representing the council and the PCC represented by the Police
& Crime Commissioner (PCC) and their appropriate Director responsible for
land and property.
Kier is represented by John Fozzard, Strategic Development Director and
Alastair Gordon-Stewart, Finance Director. The board meets quarterly with ad
hoc meetings arranged as required to make decisions.
The PPP Board commissions Penda Limited (3) to develop the Strategic Asset
Management Plan (SAMP) & Partnership Plan (PP), and approves these as per
the deadlock arrangements. Both the SAMP and PP are submitted to SCC’s
Cabinet for approval prior to final sign-off by the PPP Board.
Once the SAMP and PP have been signed off, the Penda Limited will develop
business cases according to the PP (SCC may develop some business cases in
house where appropriate). Business cases are approved by the PPP Board but it
can take the decision to delegate this responsibility to the Intelligent Client
function (“ICF”) for SCC and the Estates Commissioner for the PCC (4) in
accordance with internal governance arrangements. The ICF will validate the
value for money for a business case both in terms of outcomes and preferred
delivery solution test. The ICF and Estates Commissioner will also provide
advice to SCC & PCC Board Members where appropriate.
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22 2016-19
Reserved Matters – At the time of approving the PP, Cabinet can nominate any
proposed project as a Reserved Matter, in line with the council’s key decisions
and have the outline and/ or full business case for that project returned back to
Cabinet for approval prior to its submission to the PPP Board.
New projects - The Deputy Leader of the County Council, as the PPP Board
member, has the authority to approve the business cases for those projects
listed in the approved PP and for any new project requiring Council investment
up to the value of £10 million. Anything over £10 million will form a council
Reserved Matter and those business cases will need to go to Cabinet for
approval.
Penda Limited (JVCo)
A limited liability joint venture company (Penda Limited) has been set up to
enable the Partnership to operate commercially and trade. It initially only
includes the council and Kier due to limitations on the powers of the PCC, but
the PCC has the option to become a shareholder once the appropriate vires is
in place. Shares are distributed equally between SCC and Kier with equal voting
rights and operating under deadlock principles.
Penda Limited is commissioned by the PPP Board to produce the SAMP,
Partnership Plan and agreed Business Cases. It is a “thin” company having four
company directors with two from SCC and two from Kier. There are also two
Shadow Directors one from SCC and one from Kier.
The company is responsible for determining the resources required to deliver
the Partnership Plan and secure these from both the council and Kier. Staff
costs and accommodation costs will be charged to the JVCo as part of the
Council’s contribution to the company’s working capital as appropriate.
Part of the JVCo’s role is to find the best value for money solution for the
delivery of projects and programmes. For Kier to be selected as the preferred
deliverer they have to demonstrate that their delivery solution represents value
for money solution. It is the role of the Intelligent Client function to validate the
value for money for the proposed solution.
The JVCo will seek to grow its business by attracting other public sector
partners to use the partnership on a “plug and play (5)” basis for which it can
charge a fee.
Intelligent Client Function (ICF)
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A joint Intelligent Client Function (ICF) between the Council & PCC, will be set
up within the Council, independent of the PPP that will work intrinsically
alongside Penda Limited as part of the business case development process.
Its key roles will be to:
advise the Cabinet & SLT members on the PPP Board on technical issues;
establish the baselines by which the Partnerships added value will be
determined;
validate the value for money recommendations made by the JVCo to the
PPP Board on project viability and delivery solutions;
approve business cases in line with its delegated authority as agreed by the
PPP Board
commission Facilities Management (FM) services for the Council from the
most appropriate provider (Entrust or Partnership) based on a value for
money test; and
maintain land and property data on the Council’s and PCC estate.
Plug and Play
By procuring the PPP through the European Procurement Regulations all the
public sector partners named in the OJEU notice can commission projects
through the Partnership without the need for further procurement. Services
can be provided to Plug and Play Partners through Penda Limited for a fee
including the delivery of business cases, feasibility studies and reviews. If a
business case demonstrates Kier as the best value for money delivery solution
they can be appointed by the plug and play partner direct through the
Partnership to deliver the project.
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24 2016-19
Appendix 4 Prioritisation Methodology
Penda Property Partnership - Prioritisation Methodology
At the heart of the PPP are two key documents; the Strategic Asset Management
Plan (SAMP) and the Partnership Plan (PP). The SAMP sets out the long term
strategy of how land and property assets will be used to deliver Council Outcomes
and the PCC Priorities and the PP lists in a priority order the Projects and
programmes that are intended to be delivered over a rolling three year period to
deliver the SAMP.
Methodology Principles
The aim of the methodology is to make sure that the right Projects and programmes
are delivered through the PPP based on an agreed set of criteria. However, it is
important to note that the intention of the methodology is not to provide the final
answer but to provide a prioritised portfolio to the PPP Board for discussion and
agreement.
Principles:
As straightforward as possible and flexible to accommodate all activities that
the PPP may deliver;
Subject to an annual refresh and approval by the PPP Board as part of the PP
approval process;
First 20 Projects determined purely on delivery of Council Outcomes and PCC
Priorities;
After first 20, prioritisation on a 3:1 ratio of council to PCC Projects. This ratio
is flexible subject to the approval of the PPP Board on the basis of fairness;
The overall Portfolio is to provide the appropriate level of return to Kier;
The methodology will take into account key criteria including:
o statutory duties and requirements
o the delivery and/or enablement of the Council’s Outcomes, the PCC’s
Priorities and the CPA’s;
o generation of capital receipts;
o revenue savings;
o revenue income;
o return on investment for partners;
o access to external funding;
o reputation of the PPP and the individual partners
o impact on further partnership development
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25 2016-19
The methodology is based on a balanced score card approach with scores awarded
for different levels of impact on or value against the criteria so that a differential can
be established between Projects and an overall ranking achieved.
The methodology allows a number of individual Projects to be considered as a
collective programme where this is appropriate to deliver Council Outcomes and PCC
Priorities.
The key principles behind the partnership are to deliver Projects that support the
Council’s Outcomes and the PCC’s Priorities.
For this assessment the Council’s Outcome themes are used where land and
property can have an impact namely: a Great Place to Live, Living Well, Right for
Business and Enjoying and for the PCC’s Priorities the four strategic priorities of:
Early Intervention, Victims & Witnesses, Managing Offenders and Public Confidence.
When assessing a project it is awarded a score based on its anticipated impact on
Council Outcomes and PCC Priorities using a scale of 0 to 3:
0 - no impact;
1 – an enabler or indirect impact; and
2 & 3 – direct impact. The level of impact between 2&3 will be differentiated
using criteria similar to those expressed in Annex 3.
Financial returns will be assessed against the criteria below on the weightings
identified in Annex 4.
revenue savings
revenue generation
capital generation and
external funding generation
For the criteria that considers impact on reputation for the PPP and its individual
partners along with the impact on further partnership development these are
answered with a simple yes or no question and the agreed weighted score added.
Having established a draft prioritised list of projects and programmes, the overall
portfolio will also be assessed in terms of its ability to generate the agreed level of
return overall for Kier. Where necessary the priority order of the portfolio can be
adjusted through agreement by the PPP Board to achieve the overall level of return.
The PSP’s return is based on that submitted in its Final Bid Submission and
associated clarifications.
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26 2016-19
Appendix 5
PERFORMANCE FRAMEWORK
This paper sets out the structure for the Performance Framework in the PPP
1. OVERVIEW OF PROPOSED STRUCTURE
Performance will be reviewed at the three levels of the PPP:
1. PPP Board level – measurement of the overall performance / success of the
partnership in delivering the Outcomes;
2. JVCo level - performance in serving the PPP through the preparation and review of the SAMP, Partnership Plan and business cases in addition to demonstrating innovation, added value and growth;
3. Project or contract level - performance of the delivery of project/programme
within the Partnership Plan.
Level 1
Level 2
Level 3
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27 2016-19
LEVEL 1 - PENDA PROPERTY PARTNERSHIP (PPP) PERFORMANCE
At the partnership level there will be both external and internal measures with the
external measures aimed at demonstrating the success of the Partnership to the general public and other public sector partners and the internal measures used by
the PPP Board to measure the overall health and performance of the Partnership. Level 1 External - Collective Partnership Ambitions (CPAs)
At the partnership level the PPP Board has agreed a set of public-facing CPAs derived from the SAMP that set out the key goals of the partnership.
The CPAs as agreed for 2016/17 are listed below and demonstrate the commitment of the partnership to supporting the delivery of CPA’s, outcomes and priorities. The
Performance Framework will be updated as part of the SAMP and Partnership Plan annual review process.
CPA’s:
Ambition 1 – support the key aim of the Stoke on Trent & Staffordshire Local
Enterprise Partnership Strategy to grow the economy by 50% and generate
50,000 new jobs in the next 10 years (50:50:10)
Ambition 2 – support the Staffordshire Health & Wellbeing Strategy which
focuses on prevention to reduce the number of elderly, disabled and
vulnerable people that require health and social care services through
improved independent living
Ambition 3 – support the Safer, Fairer United Communities Strategy by
increasing the number of residents who feel safer in their communities
through improved alignment of operations and systems to new or improved
facilities
Ambition 4 – support the outcome from the Council’s Strategic Plan 2014-
2018, Leading for a Connected Staffordshire to increase the number of
affordable, decent housing across Staffordshire.
Ambition 5 – add value and pace in delivering more certain and increased
levels of capital receipts, increased levels of development funding, reducing
revenue costs and developing new sustainable income streams
Ambition 6 - support a “One Public Estate” (OPE) initiative through proactive
engagement with key public sector stakeholders, landlords and property
owners to ensure we get the most from a realigned and more efficient asset
base across the public estate
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28 2016-19
Progress against these ambitions will be assessed quarterly with an annual report confirming overall delivery performance. The PPP Board will use a number of metrics
to support assessment and reporting against the CPAs and the initial set are shown in Annex 5. These metrics will flow naturally from approved business cases and
actual project delivery. Whilst they are related more to outputs than outcomes and priorities they are able to be provide some ability to assess progress.
Level 1 Internal - PPP Measures There are also a set of measures that will be used by the PPP Board to measure the
overall health and performance of the partnership. These include:
Whether all scheduled PPP Board meetings have taken place each year
Attendance at meetings by PPP Board Members from each partner Number of projects where PPP Board Members do not agree that the project
will be delivered via the partnership and which are delivered by another route Number of deadlock decisions by the PPP Board
There are also a number of other measures that will cover the overall delivery of the Strategic Asset Management Plan, Partnership Plan and Business Cases.
These internal measures include:
Whether the SAMP and Partnership Plan are refreshed and approved by the PPP Board on time each year
The number of new projects and programmes included within the Partnership Plan at each annual update
The number of new projects and programmes included within the Partnership
Plan between annual updates The number of initial projects and programmes within the Partnership Plan
that are approved by the PPP Board via a Full Business Case for delivery The number of new projects each year from other public sector organisations
that will be delivered via the partnership approach
The number of projects and programmes with delivery via Kier as the private sector partner
Level 1 - Performance Reporting
Performance will initially be reported to the PPP Board at each meeting with a view, subject to the Board’s agreement, to move to quarterly reporting and reporting by exception where a performance issue becomes evident.
The PPP Board will actively review performance of both external and internal
measures to:
ensure the resources, commitment and collaborative approach are in place to
deliver the CPAs identify remedial actions where necessary
seek out continuous improvement and lessons learnt from within and external to the Partnership
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LEVEL 2 – JVCO PERFORMANCE
The measures at level 2 relate to the performance of the JVCo activities including delivery of the SAMP, Partnership Plan, JVCo Business Plan and Business Cases as
well as the overall performance of the portfolio. Level 2 – JVCo / Programme KPIs
The performance will be measured using a series of KPIs in a ‘balanced score card’ as listed at Annex 6.
Level 2 – JVCo Performance Reporting
Performance will initially be reported to the JVCo Board on a monthly basis and to the PPP Board in line with Level 1 reporting (i.e. initially to each Board and then
quarterly if appropriate).
LEVEL 3 – PROJECTS & PROGRAMMES
Level 3 - Project / Contract Measures Level 3 measures relate to the performance of individual projects and programmes.
These measures will be defined within the project or programme delivery contract along with a mechanism for addressing poor performance including termination of
the contract. The agreed supplier will be held accountable for their performance. These measures will be a series of appropriate KPIs and performance targets relating
to delivery in terms of time, quality, cost and benefits realisation.
Level 3 - Performance Reporting An appropriate cycle of performance reporting will be applied to each project or programmes with the JVCo formally reviewing performance on a monthly basis with
exception reporting escalated to the PPP Board as appropriate.
Partnership Plan
Appendix 6 - Value for Money
Value For Money Process
1. Context
1.1 The development of the SAMP will set out the key aims of the Strategic Property Partnership in respect of the overarching CPAs.
1.2 The Partnership Plan will set out a portfolio of Projects which may include:
1.2.1 individual Projects;
1.2.2 a programme of themed Projects; or
1.2.3 a group of Projects concentrated in a particular geographical
location.
1.3 The Partnership Plan will ensure that, collectively, these Projects seek to achieve the CPAs in terms of seeking to achieve the Council’s Outcomes,
the PCC’s Priorities and the PSP’s Objectives. 1.4 The PPP Board (or if delegated, the Intelligent Client Function, other
appropriate person with delegated authority and/or the PCC Estates Commissioner, as appropriate) will assess each relevant Business Case in
relation to Value for Money, in line with the principles set out in this Appendix 6 to the Partnership Plan.
2. Value for Money
In considering Value for Money, the Council and the PCC will consider the definition of Value for Money set out in Managing Public Money, published by HM Treasury, which defines Value for Money as: “ensuring that the
organisation’s procurement, projects and processes are systematically evaluated to provide confidence about suitability, effectiveness, prudence,
quality, good value judged for the public sector as a whole.”
The Council and PCC will also consider the maximum benefit in terms of the
Council’s Outcomes and/or the PCC’s Priorities that can be obtained from the Council and/ or the PCC’s land and property estate (or by incorporating
wider land interests, if appropriate) taking into account service improvements, social and economic effectiveness and efficiency considerations from a public sector perspective.
3. Value For Money Process Principles
3.1 The Value for Money Process:
3.1.1 must comply with all the statutory regulations applicable to the Council and PCC;
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3.1.2 should be as straightforward as possible and flexible enough to cover all potential Project types delivered through the PPP;
3.1.3 will test the preferred delivery solution;
3.1.4 should be acceptable to all Parties and their internal and external
audit processes;
3.1.5 will take into account appropriate financial and non-financial
benefits;
3.1.6 will be, amongst other things, based on testing Value for Money
against benchmarking data from agreed sources;
3.1.7 will be subject to regular testing to confirm it is achieving Value for Money (including testing through competitive tendering if deemed necessary); and
3.1.8 will consider Projects and Programmes (as defined below) in the
context of the overall portfolio set out in the Partnership Plan.
The Value for Money Process 4. First Stage Consideration of Business Cases
4.1 Intelligent Client Function will consider the Value for Money of each
Business Case prepared by the JVCo. This will be reviewed and a decision will be taken on Value for Money by the PPP Board (or, if delegated, the Intelligent Client Function, other appropriate person with delegated
authority and/or the PCC Estates Commissioner, as appropriate).
4.2 In order for the PPP Board (or, if delegated, the Intelligent Client Function, other appropriate person with delegated authority and/or the PCC Estates Commissioner, as appropriate) to approve each applicable Business Case
with respect to a Project identified in the Partnership Plan:
4.2.1 each Business Case in respect of a PCC Project must satisfy the PCC’s Priorities;
4.2.2 each Business Case in respect of a Council Project must satisfy the Council’s Outcomes; and
4.2.3 each Business Case in respect of a Joint Project must satisfy the
PCC’s Priorities and the Council’s Outcomes.
4.3 For the purposes of paragraph 4.2 the PCC’s Priorities or the Council’s
Outcomes shall be deemed to be satisfied where:
4.3.1 the Business Case will advance the attainment of one (or more) of
the priorities or outcomes (as appropriate) set out in the PCC’s Priorities and Council’s Outcomes; or
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4.3.2 the Business Case would enable other Projects (which satisfy the
priorities or outcomes set out in the PCC’s Priorities and the Council’s Outcomes) to be approved.
4.4 Once the above have been satisfied, the PPP Board (or, if delegated, the
Intelligent Client Function, other appropriate person with delegated
authority and/or the PCC Estates Commissioner, as appropriate) will assess each relevant Business Case in relation to Value for Money.
4.5 If a Public Sector Beneficiary becomes a member of the PPP Board, this
Appendix 6 to the Partnership Plan shall be amended to take account of
Public Sector Beneficiary priorities and key considerations, as agreed between the Council, PCC and the Public Sector Beneficiary.
5 Value for Money
5.1 For the purposes of the Value for Money Process, the term “Benefits” shall mean both financial and non-financial benefits. Financial benefits means
capital and revenue benefits (savings and income) accruing to the Council and/or the PCC and non-financial benefits includes benefits related to the
achievement of the Council’s Outcomes, the PCC’s Priorities and the CPAs. 5.2 The term “Costs” in this Appendix 6 to the Partnership Plan shall mean
actual or forecast economic and opportunity costs (the latter of which means in this context the lost capital receipts or revenue which may
reasonably be expected to have resulted from any alternative use from the relevant asset).
5.3 Subject to the provisions of paragraph 6 below (Programmes), for each Project the Benefits must outweigh the Costs.
5.4 The PPP Board (or, if delegated, the Intelligent Client Function, other
appropriate person with delegated authority and/or the PCC Estates
Commissioner, as appropriate) will (where possible) utilise benchmarking data that enables the decision to award a Project to a preferred provider
through the PPP to stand up to external scrutiny. It is accepted that this benchmarking process shall usually relate to financial benefits and costs, but may also be used in relation to non-financial benefits.
5.5 The Parties hereby agree that the benchmarking process shall be as
follows:
5.5.1 where applicable, the relevant Business Case will be compared with
any comparable Project awarded through an acceptable competitive tendering process within the past 24 months or through a current
public sector framework within the same county and region; or
5.5.2 alternatively, where no relevant comparable Project exists the
Parties hereby agree that the award for any potential works or
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services with respect to that relevant Business Case shall then be subject to a competitive tender exercise.
5.5.3 Benchmarking may also be used for non-financial Benefits.
5.6 Notwithstanding paragraph 5.5.2 of this Appendix 6 to the Partnership Plan,
of this JVCA in order to ensure that Value for Money is achieved throughout
the Term a competitive tender process will be applied in any event on an agreed ratio, such ratio to be agreed annually by the Board and
incorporated in the Partnership Plan. 5.7 A definition of competitive tendering is provided in Annex 1 of this Appendix
6 to the Partnership Plan.
6. Programmes 6.1 Projects may be grouped together into a collective programme. This applies
where a Project on its own may not obtain sufficient Benefits to outweigh the Costs, but in combination with other Projects the Benefits would
outweigh the Costs. This may be the case where there is benefit to group Projects by way of a theme, time, geography or other dependencies. It
may apply, for example, where Projects are grouped into a programme with other Projects to enable cost savings to be achieved through economies of scale and/or the application of a grouped rate to fees, to achieve or
enhance Value for Money for the overall programme. It may also apply where an ‘enabler’ Project is not (individually) Value for Money but it is a
pre-requisite to other Projects being able to be pursued, and where the Projects grouped into a programme are Value for Money.
6.2 For these programmes the Partners may adopt a grouped rate approach to financial benefits and Costs across the Projects which will (in aggregate)
deliver an acceptable overall return. The Partners may also adopt a grouped approach to considering non-financial benefits across the Projects.
6.3 The mechanism for achieving a grouped rate approach, as set out in paragraph 6.2 above, shall be determined by the Parties.
7. Key Considerations for the Council and the PCC
7.1 This paragraph 7 of this Appendix 6 to the Partnership Plan sets out some helpful guidelines for the Council and the PCC for the consideration of
Benefits and Costs. 7.2 In the early days of the Strategic Property Partnership it is likely that the
Value for Money Process in terms of social considerations will be high level and subjective. It is an area that is difficult to quantify as frequently there
are other effects or impacts that are difficult to unpick from the impact that the Project is seeking to achieve in terms of the Council‘s Outcomes, the PCC’s Priorities and/or any CPAs. There are a number of recognised
techniques for measuring social impact which are summarised in paragraphs 7.2.1 to 7.2.3 (inclusive) of this Appendix 6 to the Partnership
Plan.
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7.2.1 Mapping the Social Value Chain
This method maps the social value chain, and starts with understanding inputs (for example, financial and human resources),
outputs (for example, specific metrics to quantify the number of people affected by a particular Project), outcomes (for example, any applicable consequences) and, finally, impact (for example, the
overall difference it makes to people’s lives).
7.2.2 Running Randomised Control Trials This approach compares the outcomes experienced by a beneficiary group with a ‘control’ group unaffected by an initiative in order to
clarify the difference a Project or group of Projects has made.
7.2.3 Calculating Social Return on Investment (SROI) The SROI model is a set of seven principles for creating a comprehensive overview of a company’s social impact. It includes
the ability to monetize the outcomes, but another part of the seven principles is establishing with stakeholders the impact on them of a
particular project.
7.4 Employment and Regeneration Projects
7.4.1 If, in order for a programme or Project to be viable from the perspective of the Value for Money Process, the programme or
Project requires a public subsidy, either in terms of a lower capital receipt or infrastructure investment, then the number, quality and permanency of jobs created or retained may be the key outcome
consideration.
7.5 External Funding
An additional Value for Money Benefit may be the amount of external grant
or other public funding that is able to be drawn down via a Project.
7.6 Costs of construction, remediation or other infrastructure.
7.6.1 These costs will be initially identified and estimated in the draft
Business Case and set out in detail in any finalised Business Case pursuant to paragraph 4.5 of Schedule 4 (Project Approval Process)
of this JVCA. Detailed costs will be established through commissioning ground condition surveys and/or other surveys as necessary, appropriate specialist advice in the case of remediation
and through reference to a detailed and priced itemised bill of quantities from a quantity surveyor.
7.6.2 These prices should be supported from benchmarked information or
from evidence from any relevant contract frameworks. Where prices
cannot be benchmarked or there are unusual circumstances then advice from an independent third party at the request of the PPP
Board (or, if delegated, the Intelligent Client Function, other
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appropriate person with delegated authority and/or the PCC Estates Commissioner, as appropriate) should be sought at an early stage.
7.7 Savings from Co-location or more efficient occupation of the estate.
These costs will relate to actual operating and property costs prior to the start of a Project and after completion and should be relatively easy to
identify, collect and assess to demonstrate Value for Money.
7.8 Savings from the use of land and buildings to produce more efficient commissioning solutions including Facilities Management.
In this instance a baseline of costs will be established for the service or for the Facilities Management provision from which savings can be
demonstrated. If the level of savings at the finalised Business Case stage is considered disproportionate then advice from a third party should be sought by the PPP Board (or, if delegated, the Intelligent Client Function,
other appropriate person with delegated authority and/or the PCC Estates Commissioner, as appropriate) at an early stage. Over time the activity
should generate benchmark data to support savings.
8. Key Considerations for the Council 8.1 This paragraph 8 of this Appendix 6 to the Partnership Plan sets out some
additional helpful guidelines for the Council for the consideration of Benefits and Costs in respect of Business Cases for a Council Project or the Council’s
consideration of a Joint Project. 8.2 Statutory Considerations
8.2.1 Section 123 Local Government Act 1972 This requires a local
authority to obtain best consideration for the disposal of a land and property asset, except for leases up to 7 years, however, the following general disposal consents give councils more freedom to
act to deliver on key outcomes:
8.2.2 General Disposal Consent 2003
8.2.2.1 This consent removes the requirement for local
authorities to seek specific consent from the relevant Secretary of State for any disposal of land where the
difference between the unrestricted value of the interest to be disposed of and the consideration accepted is £2,000,000 (two million pounds) or less.
8.2.2.2 The terms of the consent mean that specific consent is
not required for the disposal of any interest in land which the authority considers will help it to secure the promotion or improvement of the economic, social or environmental well-
being of its area.
8.2.3 General Disposal Consent 2010 – s25 Local Government Act 1988
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Any local authority may provide a registered provider, for the
purposes of or in connection with the matters mentioned in section 24(1) of the 1988 Act, with any financial assistance or any
gratuitous benefit consisting of:
(a) the disposal to that registered provider of land for:
(i) development as housing accommodation or as housing
accommodation and other facilities which are intended to benefit mainly the occupiers of the housing accommodation; or
(ii) the provision of access to land used or to be developed
as housing accommodation; or
(b) the grant to that registered provider of any easement or right
appurtenant to land used or to be developed as housing accommodation.
8.3 Housing Schemes
(a) These Projects should be assessed against the need in the locality.
For example, if there is a significant need for social or affordable
housing in a particular area, then in terms of Value for Money it may be beneficial to increase the requirement over and above the
minimum level of affordable housing required by the local planning authority.
(b) In terms of priority and achieving Value for Money, Projects which address this need, but then use the additional affordable housing as
an offset on a more valuable site in the locality should be considered Value for Money as the potential capital receipt is likely to be greater over the two sites rather than if sold individually.
(c) On a stand-alone site the demand for a particular type of housing or
tenure will always need to be weighed against the financial requirements of the Council. If a particular need is to be addressed, for example, key worker accommodation, then the social benefit of
this will need to be recognised. However, the opportunity value forgone will also have to be identified to assess if this outweighs the
social benefit. This will have to be a subjective test. 8.4 Independent Living Projects
(a) The purpose of these Projects is to encourage people to be self-
reliant and live independently for as long as possible. The aim of this is to reduce the demand for specialist care provision for as long as possible.
(b) Again these Projects should be assessed on a payback basis. It is
possible to identify the cost of care of the commissioned service if it
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remained as was and any subsidy relating to reduced land value or enhanced opportunity value if an alternative use could be identified.
The change in the commissioning model should identify the savings in care by allowing people to live more independently for longer.
(c) A good example of this approach is the Flexicare provision that has
replaced traditional residential care homes. In this area the Council
has a good approach to developing business cases which capture these costs and savings. Payback up to 7 years for these types of
Project should be considered Value for Money.
(d) What is currently missing is the evidence in terms of outcomes in
respect of health benefits and a measure of the well-being for older and vulnerable people for being able to live more independently for
longer. There is also the benefits to the exchequer of reducing bed blocking in hospitals, which if quantified would add additional benefit to the applicable Business case. These benefits are currently
intuitive rather than explicit.
9 Key Considerations for the PCC
9.1 The Value for Money Process shall have regard to the requirements of the Financial Management Code of Practice for the Police Service in England and Wales, as amended, including the requirements set out in Annex B of
that Code of Practice.
9.2 In considering Benefits and Costs, the Value for Money Process shall take
into account the PCC’s functions to secure and maintain a police force for the PCC’s area and secure that the police force is efficient and effective.
9.3 Fulfilment of the operational needs of the PCC shall be a Benefit. In
relation to Business Cases for PCC Projects and, where applicable, Joint Projects, the PPP Board or PCC Estates Commissioner will seek the views of
senior police officers in considering whether a Business Case does fulfil operational needs.
9.4 In addition, the following may be a Benefit:
9.4.1 fulfilment or progress towards fulfilment of goals set out in the Police and Crime Plan;
9.4.2 where the PCC is able to have regard to (and potentially assist) the relevant priorities of each responsible authority, as set out in section 10 Police Reform and Social Responsibility Act 2011; and
9.4.3 where the PCC is able to have regard to (and potentially tailor its work having considered) the views of people in its area about
policing.
10. Joint Projects
10.1 Where the PPP Board (or, if delegated, the PCC Estates Commissioner and
the Intelligent Client Function or other appropriate person with delegated
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authority for the Council) are considering the Value for Money of a Business Case in respect of a Joint Project, they shall take into account the
considerations in paragraph 7, 8 and 9. Where agreement cannot be reached between the Council and the PCC in respect of the Value for Money
of a Joint Project, that Joint Project shall not be deemed to have satisfied paragraph 5.3 of this Appendix 6 to the Partnership Plan and the Project shall not become an Approved Project.
Annex 1 - Competitive Tendering
Competitive tendering can either be via:
a mini-tender exercise from a number of suppliers from an appropriate
framework contract, or
receipt of priced bids from a selected and closed number of bidders, or a call for competition for tenders via public advert.
Tendering should be conducted via sealed bid and in accordance with relevant
internal governance procedures of the Council and/or the PCC. The advantages of a mini-tender from a framework contract are that suppliers
have already satisfied procurement requirements (including OJEU where relevant) and a very quick procurement. The advantages for the closed supplier
list is speed due to the low volume of bids whereas use of the public advert ordinarily requires a large lead-in time to accommodate ‘time at advert’ plus lengthy evaluation of potentially numerous bidders, some of which may be
relatively unknown to category managers.
Tendering approaches should clearly test the market place for quality, innovation and market costing.
Although there is little formal guidance on what constitutes acceptable competitive tendering, the Public Contracts Regulations state that a minimum of
3 or 5 bidders are ideally required to compete, depending on the procurement process adopted.
Tendering in all cases shall be designed to avoid any distortion of competition and to ensure equal treatment of all bidders, and to remove any undue
favouring or disadvantaging of certain bidders which would lead to an artificial narrowing of the market.
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Annex 2 – Construction Value for Money
The Staffordshire Strategic Property Partnership Preferred Delivery
Solution – Value for Money Principles
The purpose of this paper is to provide a brief summary of how Kier Construction Ltd (Kier) will provide and demonstrate value for money as a preferred delivery provider for the Staffordshire Strategic Property
Partnership (SPP).
For the avoidance of doubt it is the role of the Intelligent Client Function and/or the PCC’s Commissioner of Estates to validate whether what is presented by Kier actually represents value for money.
VFM Definition - In the context of the SPP, VFM is defined as: In considering Value for Money, the Council and the PCC will consider the
definition of Value for Money set out in Managing Public Money, published by HM Treasury, which defines Value for Money as: “ensuring that the
organisation’s procurement, projects and processes are systematically evaluated to provide confidence about suitability, effectiveness, prudence,
quality, good value judged for the public sector as a whole.” The Council and PCC will also consider the maximum benefit in terms of the
Council’s Outcomes and/or the PCC’s Priorities that can be obtained from the Council and/ or the PCC’s land and property estate (or by incorporating
wider land interests, if appropriate) taking into account service improvements, social and economic effectiveness and efficiency considerations from a public sector perspective.
Value for money will be demonstrated by achieving the key outcomes for
each project or group of projects at commercially competitive levels. Such outcomes will be defined by SCC for each project or group of projects and
will include pre-determined performance levels based upon benchmarking and industry best practice. These will include, but are not confined to:
Delivering projects within the cost limit.
Maximising savings in both capital and whole life cost.
Delivering projects on time.
Eliminating defects.
Adopting solutions which reduce both waste and carbon.
Supporting local economies.
Adopting modern working practices and technology.
Achieving customer satisfaction.
Kier will achieve VfM through the life of a project which is typically broken in to three distinctive stages for all projects:
1. Feasibility
2. Design
3. Construction and aftercare
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1. Feasibility Stage Estimated Timescale – Target 4 weeks
Kier will undertake to carry out a project feasibility study, using its own internal resources in collaboration with the client’s team to support the JVCo in the drafting and delivery of its business cases.
Where we are able to influence we will encourage the design team, like Kier, to undertake any work at this stage free of charge. The feasibility
study will include the following services:
Assist in the Development Brief (if required)
Production of a Cost Plan and commentary on potential VE,
including costs to take it to detail design stage. Design review based on current best practise / knowledge
transfer. Production of a high level construction programme with options
for acceleration if required
Supply chain advice – design team & early subcontract
engagement
Market Testing - Kier will produce a proposed procurement
strategy prior to the commencement of market testing and
pricing.
Benchmarking – Kier will produce a schedule of high level costs
per M2 on similar current projects within the business. Knowledge Transfer – JVCo partners will be encouraged to visit
similar projects, either completed or WIP to share best practice,
transfer knowledge, benchmark costs etc. Advising on suitable designers (if not already engaged) and how
/ who detailed design is developed Commission a desk-top site check report
Undertake pre-application discussions
Following engagement and submission of the Feasibility Report Kier will
continue to review the overall feasibility of the project and determine any revisions and a subsequent timetable for actions to progress the project to
its next stage. Kier will keep a register of all feasibility studies undertaken and will be
made available for review by the JVCo board.
2. Design Stage
Following approval from JVCo, Kier will progress the project to detail design where we will continue to ‘work up’ the proposed scheme in greater detail.
During this stage we will deliver the following services:.
Development of and enter into a Pre-Construction Services
Agreement including a payment schedule for designers, specialists and Kier services (if applicable) through this stage
Appointment of the design team & specialists Confirmation of the brief and management of the design team
Coordination of the design development
Carry out relevant surveys
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Provide advice and input into design development (See below) to ensure design solutions represent best value for money and
effective use of capital funding. Engage with local & national supply chain to consider materials
choices, methods and design solutions.
Market test to both Kier and SCC sub contract and supplier supply chains within an agreed radius of the project to keep the Stafford £ within Staffordshire (see below)
Produce detailed cost plans in accordance with agreed OHP
schedule and VE schedule using transparent and open book tendering ( as per other national / regional frameworks)
Produce a costed risk register
Submit and Obtain Planning permission
Develop H&S Plan
Finalise the construction programme
Validate or re-benchmark the detailed estimate against Kier projects (locally and nationally where possible)
Where Kier don't have benchmarking data employ an external PM/QS (e.g. G&T/Gleeds/Entrust/etc…) to carry out verification process using their regional and national data.
Design Development
One of the areas where Kier can bring significant value for money benefits
is by inputting into the design of facilities throughout design development to maximise the value derived from capital expenditure and minimise on-
going revenue costs. Examples of how Kier’s input into design development can enhance value
for money include:
Efficient building layouts and space planning to maximise space utilisation, building floor to wall ratios and efficiency of
Gross Internal Floor Area (GIFA) to reduce overall project costs;
Alternative construction methods to reduce programme periods;
Alternative materials and products to reduce construction
costs whilst maintaining quality and functionality; Design solutions that enable efficient/reduced annual running
costs (e.g. staffing levels, energy costs, maintenance).
Fee Structure
The costs / percentages to be applied for Direct / Indirect Overheads & Profit will be calculated for each project or group of projects using open market rates. These levels will be determined through benchmarking with
framework contracts, in particular those owned and managed by SCC.
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Such levels will take into consideration:
Value Size and complexity
Volume Delivery strategy
Market Testing – Kier Process
Kier will produce a proposed procurement strategy for each project prior to
the commencement of market testing and pricing and agree with the
Clients advisors that the proposed procurement strategy will deliver value
for money and a high degree of market testing.
To deliver best value for money the procurement strategy will consider
issues such as:
Number of tendering subcontractors/suppliers for each work package (preferably a minimum of 3 wherever possible and/or
practicable);
Basis on which each package will be let e.g. labour, plant and
material; supply only; lump sum fixed price; re-measureable
etc;
Requirement for early supply chain involvement and/or design
input;
Procurement, lead in and manufacture periods;
Opportunities for local employment and skills development. The market testing process will be fully open and transparent, with the
Client and its advisors being provided with copies of all supply chain quotations received during the process, engaged in the analysis of the
supply chain quotations and final pricing of each project.
This competitive, open and transparent process will meet the requirement to demonstrate a competitive tendering process has been undertaken to deliver value for money construction costs.
Governance and Compliance
We understand that there will be a requirement for SCC to establish a
governance structure to provide oversight and challenge, in order to validate that VFM is being achieved at each stage. We will work with SCC and their representatives in a spirit of mutual trust and cooperation on an
open and transparent basis. If performance is likely to fall below the required levels to achieve VFM, a report will be submitted to the JVCo
Programme Board stating what action is to be taken to mitigate such underperformance. It is acknowledged that the award of future projects or groups of projects may be affected where any underperformance has not
been addressed to the satisfaction of SCC.
From time to time, consideration may be given to opening up competition
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where practical; through the use of an appropriate framework contract which includes Kier. The basis of any competition will be similar to that
used for the SPP, in order to achieve a fair and reasonable VFM comparison.
3. Construction Stage and Aftercare
Following completion of the Preconstruction phases, feasibility and detail
design, and subject to the required approvals from JV Co by way of a Project Order / Contract award from the Client Kier will move forward into
the construction stage of the project. The VFM process will continue through a formal hand over from the preconstruction team to the operations team allocated to delivering the project to ensure effective and
seamless transfer of knowledge derived during the Pre-Construction period.
The key VfM deliverables during stage 3 will be:
Consistent approach and quality - Kier team, design team, supply chain
Monthly project review & monitoring of programme & cost.
Monitoring and managing client changes
Capture and report KPI / benchmarking metrics SHE plan review
Customer Experience Measurement – 3 surveys per project
reported to board level.
Defects elimination
Employment and skills opportunities
Financial Stability
Kier’s financial stability and strong balance sheet will significantly reduce the risk to the SPP and third party participants of main contractor
insolvency and the subsequent major impacts such events can have on costs, programme and quality.
Furthermore, Kier’s financial stability and fair payment practices are
attractive to the local supply chain as it provides surety of payment. This can also assist in reducing capital costs as the supply chain may offer
discounts for improved payment terms and greater visibility for forward pipeline of work.
Social Value & Investment
Experience in delivering capital projects with a wide range of public sector
partners has generated a depth of knowledge of how to deliver social value within the communities we work. To add further value into the relationship we would like to work with JVCo together with their partners and Clients to
define and draft a social value plan which addresses the key issues and desired outcomes at both strategic and project level. Between the partners
we will draft a set of metrics which will form the basis of measurement of the delivery of social value going forward.
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Key priorities are seen as:
Local employment and apprenticeships Supply chain engagement & development – ‘’ Meet the buyer’’
events
Training & Upskilling
Looking after the environment through recycling, biodiversity and
improved public realm or landscaping
Engagement with the third sector and social enterprises
Review Process
In the first year of the SPP we will review each opportunity on a ‘project by project’ basis to test how VfM has been achieved to ensure that all partners
are comfortable with the outcomes achieved. The review will focus on:
Validating VfM on the construction costs (market testing)
Achievability of the construction programme
Review the inputs to design development
OH&P validation on comparable projects Comparison of Preliminary (on site overheads) costs
Aftercare
Our Kier Care Commitment ensures we deliver a high quality product to our clients that works for them from day one and throughout its lifecycle. We
achieve this through two initiatives: High 5, shown below, and 5 Star Aftercare. The 5 star aftercare gives: 24 months of extended aftercare services with 6 regular service reviews; an app and a helpdesk to quickly
report any faults; a free extranet for the storage and access of operational and maintenance information; recorded client training useful for refresher
tuition and display energy certificates and recommendations following 12 and 24 months of occupation and energy meter readings. Overall the Kier Care Commitment gives a series of controls to ensure the delivery of a
quality facility, handover of each stage of the project on time and fully functional systems that people know how to use effectively.
Kier will provide a dedicated aftercare team to the JVCo which will work with each project and client group to ensure to ensure we deliver the highest level of post completion care.
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Avoiding Defects
BIM
Kier is at the forefront of facilitating the delivery of BIM projects. The implementation of the Kier BIMextra model on JVCo projects will give all stakeholders the ability to work in one collaborative environment, allowing us to federate, validate and review all project model data and geometry in one location. The benefits of using BIMextra are:
Reduces risk and improves design quality.
Early identification of potential site issues e.g. Clash detection
Effective asset life cycle management.
Collation of accurate & complete design information in one environment
Reduces waste
Improves understanding for all stakeholders
Benefits cost data build up
Note: For projects where SCC has appointed their own Design Team, the services listed above will be amended to suit the specific requirements of the delivery strategy.
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Appendix 7 - Baselines
I) Disposals
Purpose:
The requirement is to establish principles for the assessment of the Baseline
Value (as defined below) against which to measure any increase in the amount
of a capital receipt received by the Council, the PCC and/or any Public Sector
Beneficiary from the sale of their property assets, (individually ‘the Property’’)
which is directly attributable to the actions of the PSP and which could not
otherwise have been obtained by the Council, the PCC and any Public Sector
Beneficiary, either because they had not identified an alternative use or
opportunity or, if it had, because they were unwilling to risk taking forward the
opportunity to deliver the enhanced value.
A. Process for sites that have an alternative use identified:
1. As a first step, the PSP shall identify the activity it proposes to undertake
that it anticipates will ‘add value’ to the disposal and the Council, PCC
and/or any Public Sector Beneficiary shall confirm either that it had not
identified such an activity or where the activity had been identified, it would
either be unwilling to risk such an approach or unable to carry out the
activity itself.
2. The PPP Board shall then identify the Baseline Value which shall be the
Market Value (as defined 2(i) to 2(iii) (inclusive)) of the Property assessed
on the basis set out in paragraphs 2(i) to (iii) (inclusive) below):
i) it will be assumed that outline planning permission for the proposed
development has been granted at the date the valuation is carried
out. Where such an assumption cannot realistically be made the
Market Value will be the value of the Property with the benefit of
any existing planning consent (or where appropriate with the
benefit of any existing use certificate which may reasonably be
assumed to be available),together with an appropriate uplift to
reflect the realistic ‘’hope value’’ of obtaining a planning consent for
the development. The level of the ‘’hope value’’ will be a matter of
fact and degree and will need to be agreed between the Parties at
Full Business Case stage.
ii) if at the time of valuation there is known to be a ‘special purchaser’
who is considered likely to bid more than the general market price
for the Property then the interest of that special purchaser shall be
taken into account when determining the Market Value.
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iii) The valuation shall take into account any information that might be
available regarding costs such as, but not limited to, adverse
ground conditions, the cost of off-site highway works,
environmental issues, legal incumbrances, restrictive covenants,
abnormal demolition costs S106 requirements etc. In the event this
information is not known, the valuation shall assume there are no
abnormal costs.
B. Process for sites that have no alternative use identified
Where there are no proposals or opportunities identified for the Property by the
Council, PCC and/or Public Sector Beneficiary then the Baseline Value should be
the market value of the Property with the benefit of any existing planning
consent (or where appropriate with the benefit of any existing user certificate
which may reasonably be assumed to be available) (or if there is no market for
the Property, then the market value for an appropriate alternative use) less in
either case the costs as identified in 2 (iii) above.
3. Where either A or B applies the Council, the PCC and/or Public Sector
Beneficiary and the PSP shall endeavour to agree the Baseline Value of the
relevant Property but in the event of a disagreement, an independent third
party valuation shall be commissioned by JVCo, costs to be split equally
between the PSP and the Council or PCC (as applicable). Where the
Property is owned by a Public Sector Beneficiary, the PSP shall pay 50% of
the costs and the remainder of the costs shall be paid by the Public Sector
Beneficiary and the Council, the proportion to be agreed on a case by case
basis. The valuer shall be a specialist surveyor who has been working
continuously in the field of commercial property valuation for at least 10
years and who shall be selected in default of agreement by the President
(or other senior officer) of the Royal Institution of Chartered Surveyors
(RICS). The valuer shall give a written valuation on the basis set out in 2
above and to explicitly state all the assumptions that have been made.
4. The valuation shall be carried out as close as possible to the
commencement of the process and shall be reviewed at appropriate
intervals as necessary to reflect any changes in market values or any
planning consents granted during the disposal process.
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5. On completion of the disposal, order of payments made from the sales
receipt shall be as follows:
I. Agreed Baseline Value, Cost of sale, or disposal of a project,
including all related costs; and the costs incurred in the
development of the project by any Party which include any adverse costs as set out in 2 iii above;
II. The Top Slice Income re-charges (to JVCo); III. The PSP required returns; IV. All remaining monies shall be due to the Council, PCC or Public
Sector Beneficiary (as applicable).
For the avoidance of doubt, costs set out in paragraph 5(I) above shall rank
equally.
6. The Added Value shall be split in accordance with paragraph 5 above.
II) Development Projects
Where the contribution to a scheme by the Council, the PCC or the Public Sector
Beneficiary is the land on which the development is to be constructed, the land
value shall be assessed on the basis of Market Value in the same way as 2 and 3
above.
The Added Value to be shared by the Parties shall be assessed as per paragraph
5 above, there being deducted in addition the actual costs incurred by the
Parties in developing the land (i.e. actual development costs, any marketing
costs, land value and development profit).
The Parties’ individual contributions and the agreed share of Added Value will be
returned to them from the proceeds of sale in accordance with paragraph 5
above.
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Annex 3 – Council Outcome Themes and PCC Priorities Measures
Council Outcomes 1 2 3
Great Place to Live
Sites that will enable the
development of a small number of
homes
Implementation of Localities
reviews, master planning that will
achieve a minor one council
approach to spatial planning
Project that will result in a minor
extension of superfast broadband
across an area
Sites that will enable a moderate
number of homes
Small number of homes
developed in priority area
Small number of affordable
homes
Small number of mixed tenure
homes
Implementation of Localities
reviews, master planning that will
achieve a moderate one council
approach to spatial planning
Project that will result in a
moderate extension of superfast
broadband across an area
Sites that will enable a significant
number of homes or a moderate
number of homes developed in
priority areas
Homes located in areas of need and
/ or that will encourage investment
and the creation of jobs
Moderate to large number of
affordable homes
Implementation of Localities
reviews, master planning that will
achieve a significant one council
approach to spatial planning
Project that will result in a significant
extension of superfast broadband
across an area
Living Well
Enables the provision of flexi care or
LD accommodation
Provision of small to medium size
flexi care or LD accommodation –
(need to define type e.g. units)
Provision of a larger scale flexi care
or LD accommodation- village
Right for Business
Enable the creation of incubator and
expansion units
Provision of sites for development –
disposal only without planning
Enable the creation of
apprenticeships
Provision of new incubator and
expansion units
creation of speculative sites
disposal of sites with planning
permission
Provision of new incubator and
expansion units in priority areas
Provision of pre let sites and / or
creation of speculative sites in
priority areas
Provision of a significant number
apprenticeships
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Attraction of small inward
investment from national companies
and the government
Enables opportunities to develop the
local supply chain
Provision of some apprenticeships
Attraction of moderate inward
investment from national
companies and the government
Delivers small-scale direct
benefits to the local supply chain
Attraction of significant inward
investment from national companies
and the government
Delivers significant direct benefits in
the local supply chain
Enjoying Life
Project will have a minor positive
impact on the communities
perception of their area / county
Enable the provision of sports and
leisure facilities
Project will have a moderately
positive impact on the
communities perception of their
area / county
Provision of moderate sports and
leisure facilities
Project will have a significantly
positive impact on the communities
perception of their area / county
Provision of significant sports and
leisure facilities
PCC Strategic Priorities 1 2 3
Early Intervention The building has meeting room
facilities available.
The building has shared front
counter services.
The building has a fully integrated
front office and back office facilities.
Supporting Victims and Witnesses The building has meeting room
facilities available.
The building has dedicated
facilities available, such as some
IT provision.
The building has bespoke facilities
available, such as fully enabled
video-link and appropriately
furnished.
Managing Offenders The building has the ability to
promote initiatives to prevent
offending and/or re-offending.
The building has the ability to
provide facilities to support
offender management and youth
diversion schemes.
The building has dedicated bespoke
facilities to support offender
management and youth diversion
schemes.
Have a process in place to recruit
offenders.
Have a process in place to recruit
short sentence offenders and
have actively tried to recruit.
Have a process in place to recruit
short sentence offenders and
currently employ.
Public Confidence The building has the ability to
promote public sector services.
The building has some public
sector customer contact facilities
available to the public.
The building has a fully operational
public sector customer contact
facilities that is easily accessible to
the public and is inclusive to all
communities.
The building is inefficient. The building has reasonable
facilities to enable agile working.
The building is purpose built to
enable agile working.
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Annex 4 - Financial Criteria
Score
0 1 2 3
Revenue Saving
(Recurring annual 5
years)
No saving <£250k £250k <£500k £500k>
Revenue Income
(Recurring annual 5
years)
No
income
<£250k £250k <£500k £500k>
Capital Receipt No
receipt
<£1m £1m <£5m £5m>
External Funding No
funding
<£1m £1m <£5m £5m>
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Annex 5- LEVEL 1 – METRICS TO SUPPORT CPAS
These metrics will be collected via business cases and assessment of actual project delivery. Appropriate baselines need to be established for each metric.
THEME METRIC
PREVENTION Number of new community healthcare facilities constructed
Number of development sites brought forward for new community healthcare
facilities
Amount of floor space (e.g. in community hubs) used and/ or occupied by
community healthcare and associated wellbeing services
INDEPENDENT LIVING Number of new flexi-care facilities constructed
Number of development sites brought forward for new flexi-care facilities
Number of new flex-care units delivered
ECONOMY Amount of new business floor space constructed
Area of land brought forward for new business development
Number of new jobs created
Number of new high value jobs created
Number of Staffordshire businesses awarded contracts through the partnership
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Number of new homes constructed (including the number of affordable homes)
Area of land brought forward for new housing development
NEW & IMPROVED PCC FACILITIES Number of new police stations and other new facilities constructed
Amount of floor space occupied within other partner facilities
Amount of reduction in area of the PCC estate (in line with new approaches to
operational delivery)
Amount of reduction in running costs of the PCC estate
CAPITAL RECEIPTS Amount of capital receipts generated from disposal of land and property
Amount of capital receipts generated from development activities
Amount of additional capital value generated from asset enhancement
DEVELOPMENT FUNDING Amount of funding for new development (business, residential and other)
Amount of external capital funding generated from projects
CONSTRUCTION Reduction in costs of construction of new developments arising from innovative
approaches to design & construction
Reduction in timetable for construction of new developments
REVENUE COSTS Amount of reduction in annual property operating costs
Amount of additional revenue income generated
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ONE PUBLIC ESTATE Number of public sector partners involved in a strategic review of assets
Number of assets included for review from all public sector organisations
Area of floor space occupied to support a partnership approach to assets e.g.
community hubs and co-located services
Amount of capital released via joint projects
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Annex 6 – LEVEL 2 JVCO KPIs
1. Whether the SAMP and Partnership Plan are refreshed at each annual review and submitted for approval by the PPP
Board.
2. Whether the JVCO are developing and delivering business cases effectively and efficiently:
Strategic Business Cases (SBCs):
Number of SBCs developed in line with the agreed portfolio and schedule in the Partnership Plan and submitted to PPP Board
Number of SBCs approved by the PPP Board to be developed to OBC or FBC stage
Outline Business Cases (OBCs):
The number of OBCs developed in line with SBC approvals by the PPP Board The number of OBCs approved by the PPP Board to be developed to FBC stage
Full Business Cases (FBCs): The number of FBCs developed in line with SBC or OBC approvals by the PPP Board
The number of FBCs approved by the PPP Board for delivery
JVCo cost per business case (through to FBC approval stage)
3. Whether delivery of the overall portfolio of projects in the Partnership Plan in line with the agreed schedule
4. Whether JVCo has access to the right quantity and quality of resource to fulfil its functions
Amount of resources committed by each partner to the JVCo
5. Whether JVCo is being utilised and valued by other public sector organisations:
Number of business cases developed by JVCo for other organisations
Number of business cases approved for delivery by other organisations Amount of additional funding generated by JVCo from other organisations
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Recommended