Practical Partnering on Collaborative Asset Management

1. Practical Partnering on Collaborative Asset Management Colin Fayer Pelham Walker DVS Surrey County Council

2. Introductions Colin Fayers - DVS Pelham Walker - SCC

3. Recap Why co-locate and share property? Property is a significant cost liability and an asset Property can represent opportunity both capital and revenuegenerating Increasing requirement to manage property efficiently and effectively to deliver services Public property isa joint strategic resource

4. Co-location is about Collaboration • Collaboration is about people effectively working together • But…Its not easy working together • There would be more collaborative success stories about • Developing the collaborative habit takes a while • Need new skills – relationship skills • Requires respect and trust from all stakeholders

5. Strategic Considerations Vision • What is the opportunity? • What are the hurdles • Explore, develop and test options

6. Strategic Considerations Lateral Thinking Peripheral Vision

7. Delivery Considerations • Have all stakeholders been engaged and their expectations managed • Are priorities and desired outcomes fully understood • Is what the project seeking to deliver realistic and achievable Identify property requirements now and into the future to ensure • the right space • at the right time • in the right place • at the right cost

8. Delivering the benefits of collaborative working DVS currently working with Surrey County Council on three collaborative schemes Knowle Green The Horseshoes, Banstead Guildford Town Centre

9. KNOWLE GREEN PUBLIC SERVICE VILLAGE - Results Of Viability Study * Calculations accurate as at 31st August 2012

10. Current Situation Multiple single purpose stand-alone buildings Large under utilised site High operating costs Backlog maintenance Dated work space (style and layout)

11. Site Map

12. Desired Objectives Improve customer satisfaction and increase scope of facilities to serve citizens Maximise reduction in overall floor space occupied by the public sector Deliver improved overall space usage ratios through more effective use of space Reduce overall property running costs for participants Reduce overall backlog maintenance liability for participants Provide rental income from lettable space (used to offset accommodation costs) Flexible space to allow for future changes in demand Provides an integrated and collaborative solution for public sector partner organisations in Spelthorne Minimise disruption to service delivery

13. Options Relocation of services provided by Surrey County Council, Spelthorne Borough Council, Surrey Police, and potentially The Ministry of Justice and the NHS all into one building. Do nothing and continue with existing locations and maintenance plans. Refurbishment of existing Spelthorne BC offices and relocation within this property. Purpose built, new build property to house all interested services. Option for additional lettable office space. Incorporate new leisure centre Relocate to site at adjoining BC offices

15. Factors To Consider Current Market Conditions Finance Adult Social Care Provision (Locations) NHS PCT Flood Plain Business Continuity Adjoining site

16. Option Choice Refurbishment of existing building New Building on adjoining site Relocate to adjoining Borough Council

17. Relocate to adjoining Borough Council Consideration to co locate with adjoining Borough Council Currently shared facilities – IT Potential to expand shared facilities Council chambers HR Pay role departments Other administrative departments Potential problems Redundancies Travel Local front office requirement Financial viability Financial appraisal – non viable

18. Option Choice Scoping exercise undertaken and decision made to progress the refurbishment option over new build. Option reasoning based on – Refurbishment considered less of a ‘Big Bang’ approach Less planning challenges Smaller ‘invest to save’ borrowing required Fewer assets to dispose of in a challenging market Quicker implementation process

19. Benefits Reducing public sector buildings in use at Knowle Green from 5 down to 1, with the additional provision of a smaller day care centre at a more suitable location. Reducing public sector GIA floor space from 10,277m2 to 4,697m2 equivalent to a 45% reduction in space used. Provide 5,580sq/ft of commercial letting space for private sector income generation Improve service delivery through joining up services in a single building solution Improve environment for staff and public Reducing carbon footprint through significant reduction in building floor space used * Calculations accurate as at 31st August 2012

20. Savings Annual public sector property operating costs down from £1,096,414 to £628,560 equivalent to a 47% reduction Reduce backlog maintenance liabilities by over £3,000,000 Release assets for disposal once the Hub is operational generating capital receipts forecast at £2.6 million • Calculations accurate as at 31st August 2012

21. Invest To Save The potential savings total £6 million over 25 years, against the baseline position This is only possible with capital investment estimated at £4.6 million * Calculations accurate as at 31st August 2012

22. Net Present Value

23. Lessons learnt so far * Strong leadership * Consistency in the team * Resilience for hurdles * Appreciation of time needed * Integration of approval processes * Positive solutions * Understanding of the “taxpayers” benefit

24. Other Benefits of Collaborative Working • Single Independent Valuer (SIV) • Advice not binding on parties, it will be used to inform negotiations • Delivers Best Value in terms of, • Saving time • Saving costs for the parties • Open, Transparent, Auditable • RICS Compliant

25. Benefits of Collaborative Working • VOA (DVS) In-House Government Shared Service • We do not generate a profit • We are not a Trading Fund • so cannot retain any surplus. • We ensure that our services • are competitively priced • We are impartial. • Active across the public sector

26. Questions • Colin Fayers Pelham Walker