One Public Sector Estate The Hampshire Experience Patrick Blogg Colin Jackson Hampshire County Council 19 April 2012
Hampshire East Sussex • 1450 sq miles • 660 sq miles • 1,700,000 • 520,000 • 4.6 people / ha • 3.0 people / ha
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’
Area Based Partners Area-Based Partners IoW NFDC TVBC SCC EBC PCC GBC FBC BDBC WCC HBC EHDC Hart RBC East Hants PSV Ringwood Gateway Workstyles CMT Asset Rationalisation Schools Review HCC Co-location Extra Care Estates Review Police Pan-Area Partners Fareham Civic Aldershot Civic Runways End Havant PSV Estates Review Pan-Area Partners HFRS Estates Review NHS CSSE Estates Review Central 3rd Sector
Organisations working in isolation • Each partner pursues own aims • Limited overlaps and partner collaboration • Potential efficiency savings missed • Utilisation of all the assets is key • ‘Sum of the parts is less than the whole’
Place-based – one public sector • Commitment to each other’s aims • Long-term vision • Local partnership / Joint Venture • Finance vehicles • Goal - aims achieved • Access to services • Opportunity for the place - rather than the Council
Asset Rationalisation - prioritisation 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
CENTRAL GOVERNMENT POLICE NHS Outline Business Case (40 assets) HCC total floor area 87,700 m 2
Extrapolating the Case Savings £ 25yr NPV limit to savings achievable total public sector GIFA in Winchester area £63m Decreasing opportunities for collaborative rationalisation Opportunities offices schools prisons for savings decreases depots exponentially storage 87,700m² 450,000m² Gross Internal Floor Area The Law of Diminishing Returns
Extrapolating the Case 70% 10% 10% 36 % 81 % 90 % Basingstoke Winchester Hampshire 36 % 36 % 10 % 19 % 10 ? 720 £/m 2 640 £/m 2 640 £/m 2 ? savings rate savings rate savings rate
Spectrum of Governance Legal Entity Informal Formal Public Sector Joint Asset Property Management Asset Company Board Management Forum Assets owned Selected assets pooled Wider selection of assets and controlled by Joint transferred to PropCo and managed by Board partners Assets owned and Ownership remains with managed by PropCo Collaboration project by project partners Control by partners Control by partnership
What next for Hampshire - One Public Sector Estate • Cabinet Approval • CX Engagement • Strategic Infrastructure Board and Senate • Rolling out Area Opportunity Workshops • Cultural shift
What have we learnt? • 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
Questions?
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