One Public Sector Estate The Hampshire Experience Patrick Blogg - - PowerPoint PPT Presentation

One Public Sector Estate The Hampshire Experience

Patrick Blogg Colin Jackson Hampshire County Council 19 April 2012

• 1450 sq miles
• 1,700,000
• 4.6 people / ha
• 660 sq miles
• 520,000
• 3.0 people / ha

Hampshire East Sussex

Hampshire – public sector estate

Hampshire – recent experience

• Elizabeth II Court
• Hampshire Workstyle
• Havant Public Service Plaza
• Capital and Assets Pathfinder

Elizabeth II Court

• Doing nothing was not an option
• Half the price of an equivalent new build replacement
• Increase in staff occupancy of 75% (600 to 1100)
• Reduction in occupied floor area of 30% (4,500m2)
• Energy reduction of 50% on a like-for-like basis
• Catalyst for change and introduction of flexible working
• Organisational modernisation and asset rationalisation

Hampshire Workstyle

Hampshire Workstyle

• Transforming the ways of working to a flexible environment
• Number of offices reduced from 53 to 15
• Total floor area reduction of 30%-35% (20,000m2)
• Reduction in operational costs of 20%-25%
• Revenue savings at least £2m per annum
• Capital Receipts for investment: £14m
• Pay-back in three years
• Carbon reductions for buildings in scope: 35%-40%
• Reduced backlog maintenance liability: £800/m2

Havant Public Service Plaza

• Feasibility commenced September 2008
• Completion of project May 2012 – Phase 1 completed
• £13m of investment - £5m from former DCSF
• Co-location of 440 HBC staff and 300 HCC
• Other public sector parties: Voluntary and Health
• Integrated ‘front of house’ facilities
• Flexible working ‘back office’
• Shared FM and IT

Havant PSP - Outcomes

• HCC space reduction 1,000m2 (-30%)
• Reinvestment of Capital Receipts - £2.5m
• Enhanced space utilisation (circa +20%)
• Backlog Maintenance avoided (£2m)
• Revenue savings of £70k pa target
• Reduced carbon footprint: 35% - 40%
• Joined up services – e.g. youth, connexions and housing
• Reduced levels of ‘avoidable contact’

Workstyles CMT Asset Rationalisation Schools Review Co-location Extra Care Estates Review Estates Review Estates Review CSSE Estates Review

Area-Based Partners EBC PCC GBC FBC IoW NFDC TVBC RBC BDBC WCC SCC Hart EHDC HBC Pan-Area Partners Police HFRS NHS Central HCC 3rd Sector

Ringwood Gateway Fareham Civic Havant PSV East Hants PSV Aldershot Civic Runways End

Area Based Partners Pan-Area Partners

• Each partner pursues own aims
• Limited overlaps and partner collaboration
• Potential efficiency savings missed

Organisations working in isolation

• Utilisation of all the assets is key
• ‘Sum of the parts is less than the whole’

• Commitment to each other’s aims
• Long-term vision
• Local partnership / Joint Venture
• Finance vehicles
• Goal - aims achieved

Place-based – one public sector

• Access to services
• Opportunity for the place - rather than the Council

1. Relinquish leaseholds from private sector 2. Review arrangements of leaseholds from public sector partners 3. Sell freeholds with higher relative market value (ie residential potential) 4. Backfill surplus office freeholds with public sector partners 5. Lease out freeholds to private sector 6. Sell office freeholds selectively 7. Refurbish existing public sector freeholds to new uses 8. New build on existing freeholds with low opportunity cost 9. Purchase and refurbish private sector freeholds

• 10. New build on existing freeholds with high opportunity cost
• 11. Purchase private sector freeholds and new build

Asset Rationalisation - prioritisation

NHS

Outline Business Case (40 assets) total floor area

87,700 m2 CENTRAL GOVERNMENT HCC POLICE

limit to savings achievable schools prisons

• ffices

depots storage Decreasing opportunities for collaborative rationalisation total public sector GIFA in Winchester area Gross Internal Floor Area Savings £ 25yr NPV £63m 87,700m² 450,000m² Opportunities for savings decreases exponentially

The Law of Diminishing Returns

Extrapolating the Case

19% 81% 10 90% 10% 720 £/m2 savings rate 640 £/m2 savings rate 640 £/m2 savings rate 10%

Winchester Basingstoke Hampshire

36% 36% 36%

?

10%

?

70%

Extrapolating the Case

Spectrum of Governance

Informal Formal Legal Entity Public Sector Asset Management Forum Joint Asset Management Board Property Company Control by partners Control by partnership Assets owned and managed by partners Collaboration project by project Selected assets pooled and controlled by Joint Board Ownership remains with partners Wider selection of assets transferred to PropCo Assets owned and managed by PropCo

• Cabinet Approval
• CX Engagement
• Strategic Infrastructure Board and Senate
• Rolling out Area Opportunity Workshops
• Cultural shift

What next for Hampshire - One Public Sector Estate

• Cast the net wide and work with the willing, but don’t forget the other

partners as opportunities arise

• Set the strategy but be prepared to work incrementally
• Don’t expect a ‘big bang’
• Reflect on the successes and use them to gather momentum
• Size matters – smaller projects are just as important for their partners
• Public sector understanding is key

What have we learnt?

Questions?