the staffordshire strategic property...

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

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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.

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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

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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

http://www.pendaproperty.com/

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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

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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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Project Ref No


Case Produced

Asset



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


William Day

87 Yr1 15/16

OPCC Estate Review Ph 1 • Newcastle U Lyme, Police Station


County wide


Stephen Sweeney

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13 2016-19


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Project Ref No


Case Produced

Asset



88 Yr1 15/16

OPCC Estate Review Ph 1 • Stoke, Police Station


County wide


NA

89 Yr1 15/16

OPCC Estate Review Ph 1 • Stone, Police Station


County wide


Philip Ezra Jones

90 Yr1 15/16

OPCC Estate Review Ph 1 • Tunstall, Police Station


County wide


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


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


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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Project Ref No


Case Produced

Asset



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


Lichfield Mark Winnington

Jeffrey Sheriff

36 Yr2 16/17

Aelfgar - Phase 1 (Flexi Care Development) (FC Phase 1b)


Cannock Alan White Alan Dudson

37 Yr3 17/18 Millennium Way, Bilbrook


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)


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


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


Staffs Moorlands

Mark Winnington/ Ian Parry

Mark Deaville & Mike Worthington

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Project Ref No


Case Produced

Asset



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


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.


54 Yr3 17/18 Dippons Lane, Perton


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


Stafford Ian Parry Philip Ezra Jones

61 Yr3 17/18 Judges Residence, Stafford



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Project Ref No


Case Produced

Asset



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


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


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


County wide Gill Heath Multi

74 Yr2 16/17 Redhill Business Park plot 1A

Develop to faciliate new St Gobain facility


Frank Chapman

75 Yr2 16/17 Redhill Business Park plot 1B

Develop or disposal to faciliate trade city


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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Project Ref No


Case Produced

Asset



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

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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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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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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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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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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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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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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



achieve a moderate one council


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



achieve a significant one council


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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V6.5

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.


short sentence offenders and

have actively tried 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

supply chain

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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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the staffordshire strategic property...

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