Plan, we are requesting funding of £342,500€¦ · National Space Centre, Curve (performing arts) and the Gold Award winning Highcross shopping and leisure complex. The links to

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Commitment to the Partnership

The Capacity Funding awarded to us in October 2016 has enabled us to dedicate resource to bringing together a cross-sector Partnership with breadth and depth.

The Partnership is new but our members can demonstrate a track record of collaboration. Via a more coordinated approach to property-based decision-making, we can be more ambitious and achieve bigger and better outcomes. We hope to grow our Partnership also.

We also have the prospect of supporting the ‘strategic asset management’ focus proposed under the Combined Authority – in respect of which we expect an announcement in the New Year.

Together, we shall ensure that strategic, collaborative thinking becomes ‘the norm’ and that delivery of the projects within this OPE5 programme, and finding new opportunities is given top priority.

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Foreword We, the Leicester and Leicestershire OPE Partnership, are delighted to submit this Services & Assets Delivery Plan representing our formal request for capacity funding under Phase 5 of the One Public Estate Programme.

The preparation of this Plan has been enabled as a direct result of the ‘interim’ capacity funding that we were awarded in October 2016, following our Expression of Interest submission. We are very grateful to the GPU and LGA for the funding.

Before the funding award, there was no Partnership in existence, despite previous attempts in recent years. Whilst ‘pockets’ of good collaboration have occurred, we have not had the capacity to invest in a more coordinated cross-sector initiative. The OPE capacity funding award, and prospect of being officially accepted onto the Programme, has provided a new energy, focus and purpose.

We can confirm that we now have senior buy-in from each of the nine local authorities (Districts, City and County) to the principle of working in partnership, in addition to our other Partners. We are delighted with the progress that we have made during the past few weeks and we look forward to delivering our first OPE Programme, and then expanding this further under a more ‘collaborative’ future.

In creating our Partnership and governance arrangements we have, of course, been mindful of the Combined Authority proposal in respect of which we expect a formal outcome in the New Year and we will monitor this to ensure that we are aligning with, and supporting, any new governance arrangements.

Under this OPE5 Services & Assets Delivery Plan, we are requesting funding of £342,500 to invest in ‘building capacity’ to drive forwards the projects proposed and in scaling-up our Programme to enhance the benefits.

In the meantime, we hope that this OPE5 Plan is well received and that we are successful in receiving a further funding award to enable us to deliver more as a partnership across Leicester and Leicestershire. It is our intention to make further requests for support under OPE6 and OPE7 as our Partnership strengthens and as we demonstrate to the GPU and LGA that we have the ability to ‘deliver’.

John Sinnott, Chief Executive Leicestershire County Council (Lead Partner)

Sir Peter Soulsby Elected Mayor, Leicester City Council

Cllr Mike Hall, Leader of Hinckley and Bosworth Borough Council and representing the District Councils

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Leicester & Leicestershire Leicester and Leicestershire has a population of 980,300 (2011). It consists of the County of Leicestershire with seven constituent districts and the Unitary Authority of Leicester City. The Local Enterprise Partnership follows the same overarching geographical boundary.

Leicester City

Leicester has an estimated 330,000 residents and is the tenth largest city in England. The City covers an area of 7,335 hectares and is located at the centre of a wider urban area in the heart of Leicestershire.

Leicester is one of the most culturally diverse cities in the UK, with a rich industrial heritage and recent iconic developments such as the National Space Centre, Curve (performing arts) and the Gold Award winning Highcross shopping and leisure complex.

The links to Richard III has focused the spotlight on Leicester as a tourist location with the opening of the visitor centre adjacent to the cathedral and renewed interest in Bosworth Battlefield.

The City provides employment, shopping, public administration, leisure and health care facilities for some 600,000 people. It has two universities, the University of Leicester and De Montfort University which have a combined total of 28,400 full-time students, and over 10,000 part-time students. Leicester College of Further Education is one of the largest colleges in the country.

The City has fast train links to London St Pancras and Europe and enjoys good road access to the rest of the UK via the M1 and M69 motorways.

The health, education and retail sectors are important sources of local employment. Other key employers include: HSBC, Office Depot, Shoe Zone and Arriva.

Our Partnership Area

Note: we shall be discussing the merits of inviting Rutland County to join our Partnership following the outcome of the Combined Authority

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Leicestershire

Leicestershire is located in the heart of England and has an estimated population of 650,500. Leicestershire is an attractive rural county and encompasses eighteen diverse landscape character areas, including The Wolds, Charnwood Forest, High Leicestershire and the Soar Valley.

Leicestershire County comprises seven local authority districts, each with its own distinctive character. These are: Blaby, Charnwood, Harborough, Hinckley & Bosworth, Melton, North West Leicestershire and Oadby & Wigston.

Some of the key settlements within Leicestershire include Blaby, Loughborough and Shepshed (Charnwood), Hinckley and Earl Shilton (Hinckley & Bosworth), Market Harborough and Lutterworth (Harborough), Coalville and Ashby-de-la-Zouch (North West Leicestershire), Melton Mowbray, and Oadby, Wigston and South Wigston (Oadby & Wigston).

Leicestershire is a rural County and has over 300 settlements with a population of fewer than 10,000. The majority of these are very small, with nearly half having a population of under 250. Agriculture is the main land use accounting for 80% of the land area. The County contains the National Forest, one of the boldest environmental projects in the country, along with a range of country parks and areas of outstanding natural beauty.

Our Responsibilities and Priorities The following provides a summary of the responsibilities of our Partners, our main priorities and the challenges that we face:

County-wide Remit

Leicestershire & Leicester Enterprise Partnership ( LLEP)

The Leicester and Leicestershire Enterprise Partnership (LLEP) was formed in May 2011. The LLEP’s remit is to drive forward regeneration and growth of the local economy, by:

• Working with Government to set out key investment priorities for Leicester & Leicestershire.

• Engaging with business, local authorities, Higher Education, Further Education, the voluntary sector and other stakeholders.

• Facilitating local partnership working and relations with national Government.

• Influencing national Government economic policy and spending. • Investing LLEP funding and aligning partner resources. • Through its investments, influence and activities ensure positive

outcomes for the local economy.

Strategic Economic Plan (2014 to 2020)

The SEP is the LLEP’s key overarching growth strategy that sets out how it intends to bring together the European Structural and Investment Fund (ESIF) Strategy, City Deal and Growth Deal to build on the competitive advantages of our economy. The SEP proposes investment in the following key themes using the City Deal and the Growth Deal as primary ‘vehicles’:

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• Investing in Place to unlock key development sites and improve public realm and connectivity to enable the efficient transport of people and goods.

• Investing in Businesses by providing a comprehensive business support service for our SMEs to accelerate growth of our priority sectors.

• Investing in People to equip local people with the relevant skills that our businesses need.

The LLEP has identified eight priority sectors that will support the delivery of the aims and objectives of the SEP. A series of plans are being developed for each sector – the Sector Growth Plan. Of most relevance to our OPE5 Programme is the Low Carbon Growth Plan.

Low Carbon Growth Plan

The Low Carbon Growth Plan contains actions to stimulate demand for low carbon goods and services and to support the growth of local low carbon business to service this demand and the growing demand in the UK and across the globe. The projects are categorised under the following headings:

1. Low Carbon Leadership 2. Low Carbon Sector and Market Development 3. Renewable Energy 4. Retrofitting Public Sector Buildings 5. Low Carbon Vehicles

Leicestershire County Council

Leicestershire County Council (LCC) is our nominated Lead Partner.

LCC is committed to using its resources, assets, intelligence, market insight and influence to support and promote economic growth and sustainable employment in Leicestershire. It is committed to working closely with the LLEP and partners to deliver the SEP, Growth Deal, City Deal and European Structural and Investment Funds (ESIF) Strategy.

Due to reduced funding, rising costs and demand for care services, LCC has recently announced that it has to save £68 million by 2020. Only £44 million savings have been identified so far, leaving a £24 million shortfall. The importance to working in collaboration to leverage greater outcomes could never be greater.

LCC’s Strategic Plan 2014 – 2018 explicitly support the principle of collaboration having adopted the following mission statement: “The County Council will lead Leicestershire by working with our communities and partners for the benefit of everyone”. The LCC Plan sets out the Council’s economic priorities grouped within three main themes, ‘Place’, ‘People’ and ‘Business‘, in line with the approach taken in LLEP SEP:

1. Leadership and Transformation. 2. Enabling Economic Growth – A Thriving Leicestershire

Economy. 3. Better Care – Health and Social Care Integration. 4. Supporting Children and Families. 5. Safer Communities. 6. Environment.

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Furthermore, LCC recognises that there are a number of key components that will contribute to achieving enhanced community working:

• Customer Services and Digital Delivery • Technology, Business Intelligence and Innovation • Integrated Services and Strategic Commissioning • Asset Rationalisation and Utilisation • Transformation through our People Strategy and

Organisational Development • Equalities and Diversity

These are reflected within the initiatives set out in our OPE Programme.

LCC has c.650 freehold and leasehold property interests and a portfolio valued at c.£522m (68% of the Council’s total asset value relates to the school estate).

Clinical Commissioning Groups

We have three CCGs - East Leicestershire and Rutland CCG, West Leicestershire CCG and Leicester City CCG. Each of these clinically-led statutory NHS bodies are responsible for the planning and commissioning of health care services for their local area.

Better Care Together

Led by the CCGs, Better Care Together (BCT) is a significant programme of work which will transform the health and social care system in Leicester, Leicestershire and Rutland (LLR) by 2019. BCT places far greater emphasis on working in partnership with health and social care colleagues, including local NHS organisations and the district and borough councils, to ensure that services change to meet the needs of local people.

Sustainability Transformation Plan

The Leicester, Leicestershire & Rutland (LLR) STP footprint area covers a total population of one million. The latest draft STP for LLR was issued on 21st November 2016.

The STP builds on the work of the Better Care Together programme understanding the health and social care challenges that apply to both the NHS and local government Partners. The main challenges include building people centric services, doing more and better with less and meeting increased demand from people living longer with more long-term conditions. This has resulted in plans for new models of care, whereby NHS organisations and the district and borough councils need to use their property and property-related resources effectively to act as an enabler for change. Delivery will only be achieved through shared endeavour and collective accountability by Partner organisations.

The health estate across the county is complex and of significant scale – as illustrated overleaf. Proposals within the STP include reconfiguring acute hospital services to address long standing issues around the condition of premises and how these are utilised.

Leicestershire Partnership NHS Trust

Leicestershire Partnership NHS Trust (LPT) provides a range of health and wellbeing services mainly for people living in the city of Leicester and the neighbouring counties of Leicestershire and Rutland. The Trust serves a population of one million people and employs almost 5,500 staff. LPT provides care and support through three divisions which focus on;

• Adult mental health and adult learning disability services • Families, young people and children's services • Community health services

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Asset Mapping led by Leicestershire County Council to illustrate the scale of the health sector asset base across the City and County

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Leicestershire Police

Leicestershire Police (LP) is the territorial police force responsible for policing Leicestershire and Rutland in England. The responsible area covers over 2,500 square kilometres (over 965 square miles) and has a population of nearly one million. The Police headquarters are located in Enderby, with ‘front desk’ resource provided from thirteen police stations across the county.

In a similar stance to the priorities for many health Partners, a key priority for Leicestershire Police is to bring policing back into the very heart of local communities. Many steps have been taken to do so, such as creating eight neighbourhood policing areas that are headed by an inspector whose responsibility is to ensure that their area receives a 24-hour policing service. As a result, the LP estate is changing often involving shared occupation with other blue-light Partners such as the Fire & Rescue Service.

Over the years LP have forged close working relationships with local communities, other Partner organisations and agencies and continue to develop and strengthen these partnerships.

Leicestershire Fire & Rescue Service

Leicestershire Fire & Rescue Service’ (LFRS) property estate is vital to ensure the organisation operates effectively and responds quickly and efficiently to emergencies across the whole county.

LFRS operates from twenty fire stations and six additional sites to support service delivery, including their headquarters at Birstall and a number of training sites and workshop premises.

East Midlands Ambulance Service

East Midlands Ambulance Service provides emergency and urgent care, patient transport, call handling and clinical assessment services for 4.8 million in an area covering approximately 6,425 square miles across the six counties of Derbyshire, Nottinghamshire, Lincolnshire, Northamptonshire, Leicestershire and Rutland. The largest staff group at EMAS is made up of accident and emergency 999 crews, operating a fleet of around 550 vehicles and patient transport vehicles.

The EMAS vision is 'to deliver outstanding sustainable emergency and urgent care services across the communities of the East Midlands'.

In regards to both operational and non-operational properties, the objective for EMAS is one of rationalisation to reduce revenue costs. Partnership working is required amongst other organisations, especially blue-light, to understand the ‘art of the possible’ for collocation opportunities.

Localised Responsibility

City, District and Borough Councils

We have one unitary council and seven district and borough councils within Leicestershire with responsibility at a more ‘localised’ level:

• Leicester City Council (unitary) • Blaby District Council • Charnwood Borough Council • Harborough District Council • Hinckley & Bosworth Borough Council • Melton Borough Council • North West Leicestershire District Council • Oadby & Wigston Borough Council

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The councils provide wide-ranging services at a local level to promote robust local communities. As with the County Council, they face considerable budget pressures and increasingly look towards their asset base to provide revenue savings and income enhancement opportunities – a strong theme within this OPE programme.

The councils are also responsible for local planning and regeneration and ensuring an appropriate supply of new homes – again ensuring that their own surplus estate is deployed accordingly.

Health and well-being has increased as a focus area in recent years and we will be explored the extent to which the council’s leisure estate can accommodate health related services to promote healthy communities.

University Hospitals of Leicester

University Hospitals of Leicester (UHL) is one of the biggest and busiest NHS Trusts in the country, serving the one million residents of Leicester, Leicestershire and Rutland – and increasingly providing specialist services over a much wider area.

The UHL estate includes three acute hospitals:

• Leicestershire General Hospital • Glenfield Hospital • Leicester Royal Infirmary

In July 2015, UHL published ‘Delivering Caring at its Best’ their 5-Year Plan. The vision of which is to provide safe, high-quality, patient-centred healthcare through a set of strategic objectives, including integrated care in partnership with others.

Although priorities are focused around the clinical and service needs, a fundamental aim for the Trust is to better utilise existing space, which many involve rationalise from three acute sites to two.

The feasibility of doing so is currently being worked-up but the organisation is keep to explore shared Partner facilities for support services.

Common Themes

Our property assets and the way they are managed, planned, used and procured have a fundamental impact on their ability to deliver our corporate and financial plans and services.

We all have a keen appreciation of the role of our property estate in supporting the financial plans and sustainability of individual organisations and in providing the facilities that are affordable and that are needed to enable the continued delivery of services.

We are also increasingly aware of the key role played by property in supporting the transformation agenda. Looking ahead, the scope as well as the need for the wider public estate to help promote the economic, housing and infrastructure development that is required for the future wellbeing of the county and region is particularly exciting and significant.

In the challenging environment where budget constraints can limit the extent of the opportunity to collaborate, we firmly believe that the OPE initiative will greatly contribute to successfully implementing the initiatives that we have identified.

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Collaboration Track Record Amongst our Partnership, we have a good track record of collaboration – and a lot of the ‘quick wins’ have already been taken advantage of - as evidenced by the following ‘snap-shot’ of projects:

County Hall – the County Council is accommodating the CCG, Leicestershire Partnership Trust (LPT) and Universities Hospital Leicester (UHL) at its County Hall HQ.

Merlyn Vaz Health and Social Care Centre – Leicester City Council collaborated with LPT to create a customer access centre within this new, £13M GP walk-in centre.

Atkins Development – enabled through the collaboration of Hinckley & Bosworth Borough Council, East Midlands Development Agency (EMDA), and North Warwickshire & Hinckley College.

The Hinckley Hub – colocation of Leicestershire County Council, Job Centre Plus (DWP) and Citizens Advice Bureau (CAB) into the Borough Council’s main offices.

The Symington Building – colocation of partners within Harborough District Council’s main offices including Leicestershire County Council (Library, Museum and Registration services), Jobcentre Plus (DWP) as well the CAB, Turning

Point and Prospects who are delivering contracts for public sector bodies

Market Harborough Highways Depot – used jointly by Harborough District Council and Leicestershire County Council.

Southfield Building – Charnwood Borough Council offices are shared with DWP, and have touchdown facilities for the County Council, together with Wedding and Marriage Rooms and a Coroners Court.

Police Neighbourhood Offices – through a collaborative approach with multi-partners, Leicestershire Police has established 60+ Neighbourhood Offices across the City and County in buildings ranging from City/District/Parish Councils, hospitals, schools, neighbourhood centres, hotels, supermarkets etc.

Market Harborough Police Station – the District Council’s CCTV and Lifeline service is located within Leicestershire Police’s Station.

Surplus Police Estate – Leicestershire Police has enabled the occupation of surplus space across its estate to the National Probation Service, the County Council’s Social Services team and SARC.

Parkside – Melton BC has combined sixteen partner organisations under one roof at Parkside to deliver joined up and integrated services

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that focus on customer needs; helped to improve knowledge exchange, trust and co-operation resulting in efficiencies for service delivery; cashable efficiencies through improved space utilisation, shared facilities and economies of scale; and a £15m capital receipt.

Whilst the above snap-shot demonstrates that we have already embraced the collaboration agenda, we realise that we have taken an ad hoc approach and we know that we could achieve more if we adopted a more co-ordinated approach. Being able to invest capacity funding in dedicated and shared resource to drive out bigger and better opportunities is something that we are very keen to do as a partnership.

The partnership and collaboration activity to date will act as a foundation for future project delivery.

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A Meaningful Partnership In forming our Partnership we have focussed on giving it meaning and purpose - especially given the many other pressures and priorities that we have. The interim capacity funding has enabled us to come together to understand our respective priorities; to start to join these up and to explore collaborative opportunities.

It should be noted that, at the time of making this OPE5 application for capacity funding, we are awaiting an announcement (due in the New Year) in response to the proposed Combined Authority arrangement. The Combined Authority area will encompass the 9 local authorities that have now come together under this OPE Partnership. The LLEP will also be represented.

Of particular relevance to this OPE5 application is the suggestion that the Combined Authority will “develop and implement a strategic asset management plan to identify land and assets i n public sector ownership and to outline how such assets/lan d could be managed to unlock land for growth, reduce costs and /or create long term revenue to support economic development a nd inward investment” in order to support the Combined Authority’s focus on strategic economic development matters (including strategic planning policy) and strategic transport matters. We are hoping that the governance arrangements that are being put in place for our OPE Programme will provide a strong strategic asset management foundation to support the Combined Authority.

To ensure that our Partnership has meaning and focus, a Workshop was held on 29 November 2016, to which 13 Partner representatives attended. A ‘long-list’ of priorities and potential opportunities was discussed at the Workshop. As a result, we arrived at a ‘short-list’ of projects to explore in greater detail – the outcome of which has resulted in the Programme proposed within this OPE5 Plan.

We want our Partnership to have real meaning and purpose. Understanding our respective priorities is essential in achieving this and has been a key focus area.

As a ‘new’ Partnership we have been careful not to over-commit in submitting our OPE5 Plan. However, as our Partnership strengthens we hope to expand our Programme and make further requests for capacity funding under OPE6 and OPE7 (and further rounds subject to Cabinet Office funding).

We have agreed that the aims, objectives and outcomes of working together in a more coordinated manner will be as follows:

Partnership Aims

1. To ensure that ‘collaborative behaviours’ are embedded in day to day service and property-based decision making.

2. To successfully deliver the Leicester and Leicestershire One Public Estate Programme (the Programme) so that the stated OPE Project outputs are realised.

3. To develop a longer term strategy so that the Partnership can mature, further bids for capacity funding under the OPE initiative can be made and bigger and better outcomes can be achieved.

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Partnership Strategic Objectives

1. Improve the quality and accessibility of asset data through mapping and data sharing – to enable area-based reviews and ‘category specific’ analysis – so that opportunities for collaboration can be better identified.

2. Ensure that service delivery and property requirements are openly discussed and aligned where possible.

3. Rationalise public sector accommodation around the City and across County, co-locating geographical functions across organisations to reduce the number of buildings and, as a result, running and maintenance costs.

4. Provide flexible, modern accommodation to meet the changing needs of services and better meet the needs of customers and the workforce.

5. Create opportunities for service efficiencies by sharing resources with other public service and voluntary sector providers to provide seamless access to services through a “common front door”.

OPE Programme Outcomes

• Improved relationships and collaboration between our Partners.

• Sharing of good practice and resources amongst our Partners.

• Generation of capital receipts through the sale of vacated assets.

• Support economic growth through reinvestment of some capital.

• Accommodate more services in less space, whilst maintaining standards and delivering a good environment for all users.

• Reduce our collective carbon footprints.

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Responding to Our Priorities: Our OPE5 Programme We recognise that we cannot address all of the issues that we face within our first OPE5 Programme and that we must be realistic in what we can deliver as a new Partnership. Our first OPE5 Programme is, therefore, relatively modest in scale as we focus on Partnership capacity building. We have, however, identified two initiatives and three OPE projects with a focus on revenue savings and income enhancement opportun ities within this first Programme. These projects require impetus and acceleration through feasibility and into delivery:

Initiative Proposed Project Status OPE DELIVERABLES

The following Initiatives have been identified by the Partners and these form the basis of our OPE5 Programme.

Under each of the Initiatives, we have identified specific Projects that capacity funding will help us to accelerate to delivery.

Our proposed Projects are at different stages of evolution. Some have already been through feasibility but require support to move into the delivery phase, others represent ‘new thinking’ and require capacity to support initial data collation and feasibility analysis as part of developing our pipeline.

Service Enhancement

Capital Receipts

New Homes

New Jobs

Revenue Savings /

Enhancement

Partnership Capacity Building

Governance & Programme Management

Data Collation & Analysis

County-Wide Low Carbon Initiative

1. District Heating System Extension Stage 1 feasibility completed. ��

2. Energy Efficient Public Estate

Initial feasibility required (pipeline).

�� FM/Supply Chain Efficiency Initiative

3. Economies Through Scale

Initial feasibility required (pipeline). ��

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OPE5 Programme Benefits Our initial Programme is focussed on revenue savings and income enhancement opportunities . We will expand our programme to identify additional collaborative opportunity that meet the other OPE criteria in due course.

In the meantime, we believe that, the three projects set out may have the potential to deliver a total revenue saving to the public purse of £6.1m over 5-years and £20.2m over the full 10-year perio d.

Total benefits

Note: we have assumed that each year runs to 31 March.

Year 1 (2016/2017)

Year 2 (2017/2018)

Year 3 (2018/2019)

Year 4 (2019/2020)

Year 5 (2020/2021) Total: Yrs 1-5 Years 6-10

(2021/2027) Total: Yrs 1-10

Capital Receipts (sales of central government land)

Capital Receipts (sales of local government land)

Reduced Running Costs (£'s) – note this includes new income opportunities also

£ - £ - £ 1,100,000.00 £ 2,183,000.00 £ 2,833,000.00 £ 6,116,000.00 £ 14,165,000.00 £ 20,281,000.00

Jobs Created 0 5 15 15 5 40 34 74

New Homes

Generated Inward Investment (from private sector i.e. not grants from other parts of government)

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The Key Initiatives

Partnership Capacity Building

Our Partnership is new and whilst we have made significant progress in recent weeks we need ongoing dedicated resource to support us to keep the momentum going and to take responsibility for the following:

• Ongoing compliance with the pre-qualification criteria. • Maintaining a comprehensive asset register so that we can review

opportunities on an area and asset category basis. • Monitoring Project progress against the overall Programme. • Liaising with the GPU/LGA as necessary. • Regular Partnership meetings. • Programming Board meetings.

We are therefore proposing to invest some of our capacity funding in dedicated OPE Programme Management and Project Management resource. We anticipate that we will require £96,500 for the Projects - we will endeavour to gift internal resource wherever possible. The cost of the Programme Manager will be absorbed into the various projects.

The following provides a brief overview of each of the Key Initiatives that represent our first OPE Programme:


As a Partnership, we are committed to reducing CO2 emissions across the public sector estate thereby driving down our annual running costs as a result. The County-wide Low Carbon Initiative proposed within this OPE5 Programme plays to the LEP objectives (see earlier). Following Partnership discussion, and an initial data collation exercise, we are seeking capacity funding to drive forward the following:

1. District Heating Network (Glenfield) – this ‘fully fledged’ project proposes a collaborative approach to developing a larger scale, integrated heat network across operational sites belonging to three of our Partners with a view to rolling out the approach across the City and County to locations such as Loughborough and Coalville.

2. Energy Efficient Public Sector Estate – this ‘pipeline’ project proposes a collaborative approach to the procurement of an Energy Performance Contract so that District Councils and other public sector bodies can access contractors procured by our Lead Partner, LCC, and benefit from the Energy Upgrades available. To date seven of our Partners have expressed interest in exploring the benefits of this initiative. However, we expect more to become involved once the true scale of opportunity is understood.

FM/Supply Chain Efficiency Initiative

As a Partnership, having access to efficient and value for money FM and Supply Chain services is an essential component of robust estate management. At the current time, we have different ways of employing or procuring FM staff and services and our supply chain. We believe that this is inefficient and that by combining our requirements, we can reap the benefits of economies of scale.

3. Economies Through Scale – this ‘pipeline’ project seeks support to develop of an FM & Supply Chain Strategy across our Partnership in order to improve service efficiency and to reduce annual revenue and capital costs. To date six of our Partners have expressed interest in exploring the benefits of this initiative and new models of delivery.

The following pages provide an overview of the Projects that we are proposing under each of the Key Initiatives within this OPE5 Plan.

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The Key Projects


Project 1: District Heating Network (Glenfield)

Project Overview

Under the County-Wide Low Carbon initiative, this project proposes a collaborative approach to developing a larger scale, integrated heat network across operational sites belonging to three of our Partners. The project directly supports the aims of the LLEP’s SEP and Low Carbon Growth Plan.

The anticipated benefits of the project are:

• Reduced energy costs related to the public estate • Increased energy security of the public estate • Reduced county-wide carbon emissions • Local jobs and economic activity • Investment opportunities for partners to secure future

income streams • To define a successful model for collaboration that can be rolled-out across the County.

Leicestershire County Council’s main offices, County Hall, are located in Glenfield, Leicestershire. Glenfield Hospital adjoins the site, on land owned by two partners, University Hospitals of Leicester (UHL) and Leicestershire Partnership (LPT) NHS Trusts. Both sites have significant heat demand, with a range of heat sources. In order to maximise the opportunity, the key Partners must now come together.

In 2015, Leicestershire County Council secured funds from the Department for Energy and Climate Change’s Heat Network Delivery Unit (HNDU). A two-stage heat network feasibility study was commissioned.

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Stage 1 is complete and comprised an exploration of different options ranging from – an extension of the existing heat network at County Hall to serve additional buildings on the campus - through to - supplying the neighbouring LPT buildings, Glenfield Hospital (GH). Unsurprisingly, the latter option derives the biggest overall benefit and now forms the basis of this OPE project.

The project will be mindful of the potentially scalability to a wider cluster of buildings in the future.

As a result of formulating this OPE5 Plan, the Key Partners have confirmed their commitment to the next stage of technical feasibility, leading to the preparation of a Business Case. We hope that Stage 2 will be completed by May 2017. This will be funded by the remaining HNDU funding already held by the County Council.

Once Stage 2 is completed, we will need to move into a ‘commercialisation’ stage involving negotiation amongst the Partners to enable the agreement of connection charges, energy sale prices and service level agreements to inform more detailed techno-economic modelling of any option taken forward. We are seeking the support to OPE capacity funding to enable this stage of the project.

Why OPE?

The diagram above shows that we have secured funding for developing the business case from HNDU. We are also proposing to seek funding for delivery (capital) of the district heating proposal from Heat Networks Investment Project (HNIP).

However, we have no capacity funding for the ‘commercialisation’ phase. This is a critical stage that, without support, is high risk and the project is unlikely to progress.

We are therefore seeking OPE funding to invest in capacity to support the commercialisation stage and also to support an application for HNIP funding for the delivery of the heat network.

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Key Project Partners

The Key Partners for this project are:

• Leicestershire County Council, • University Hospitals of Leicester (UHL); and • Leicestershire Partnership (LPT) NHS Trusts.

However, we expect that additional Partners, such as Charnwood Borough Council and NW Leicestershire District Councils will benefit from the approach to this project as we will look to ‘roll-out’ a similar model where possible across the City and County.

The City Council is, for example, seeking to extend its City Centre District Heating scheme via its partnership with Engie.

Expected Project Outcomes

The Glenfield District Heating Network could deliver a c.6.3% reduction in CO2 emissions across the Key Partners estate. In addition, the following OPE benefits are anticipated:

OPE Deliverables Quantum / Description From when?

Revenue cost savings delivered by project £433,000 per annum for 25 years* Network completion date – 2019/20

Capital receipts delivered by project N/A

New homes delivered by project N/A

New jobs created by project Estimated £10M capital value = 20 jobs in total In delivery of Network

Service integration benefits arising from project Streamlined management of energy across the Key Partners’ Glenfield estate.

Inward investment opportunities from project HNIP [capital] funding

*Tri-partite benefits estimated from feasibility stage 1

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Project Funding

We have already secured £95,196 to undertake the Stage 2 feasibility £53,600 from HNDU and £41,596 from Leicestershire County Council. To cover part or all of the actual network installation costs we would look to apply for HNIP capital funding and if this is not possible then funding could be available from the County Council potentially in partnership with a bid to the LLEP Low Carbon Growth Fund – in respect of which there are bidding rounds during 2017. The estimated capital cost of the network is £10m – the payback period, having regard to annual savings is anticipated to be 20 - 25 years but will be refined as part of the business case development. Please note that the initial findings indicate that this scheme will prove viable but, if this is not the case following completion of the Phase 2 feasibility, the project will be halted and the OPE funding requested under this item will not be drawn down (see below).

OPE Capacity Funding Request

We are seeking £126,500 capacity funding to support this project during a period of 9 months.

Capacity activity Detail Capacity Funding Request £

Programme Management allocation To ensure that the Project is instigated with a Project Plan and with full Partner engagement. To monitor progress against the overall Programme targets.

£14,000

Project Management A Project Manager to lead the commercialisation phase, agree energy prices, legal agreements and operational management costs to cover consultant costs over an anticipated period of 9 months, plus legal fees.

£22,500

Specialist Legal Support / Specialist Energy Advisory Support

To negotiate contracts and develop tender documents required for the network / To develop the HNIP funding bid / Low carbon Growth Fund

£70,000

Business Case To be produced as an output from the above and to secure Partner buy-in.

£20,000

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Project Scalability

Whilst the physical delivery of the project is focussed on County Hall and the adjoining Glenfield Hospital, our aim is to apply the outcome of the project and lessons learned on a county-wide basis – particularly as district heating feasibility studies (heat mapping and energy master planning) have been completed for Loughborough and Coalville market towns. The outcomes and learning from this project – especially the commercialisation stage - will help develop networks in these town centres including a collaborative approach amongst our Partnership.

Project Governance

Leicestershire County Council will be the Project Sponsor and a Project Team will be formed with high level representatives of all three Key Partner organisations.

Key Risks & Mitigation

The following risks have been identified for this project, together with appropriate mitigations:

Risk 1: that UHL and LPT do not collaborate with the project. This has already been addressed via the securing of high level commitment from both organisations to support the Stage 2 feasibility study and to enter into discussions in the New Year.

Risk 2: that the Stage 2 feasibility study does not produce a viable business case. As this is being funded independently, if there is no viable business case, the project will not move to the commercialisation stage - and no OPE money will be drawn down.

These risks will be monitored by the Project Team and the Programme Board.

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Pipeline Project 2: Energy Efficient Public Sector Estate

Project Overview

Under the County-Wide Low Carbon initiative, this project proposes a collaborative approach to the procurement of an Energy Performance Contract so that District Councils and other public sector bodies can access the contractors procured by our Lead Partner, LCC, and the Energy Upgrades available. The anticipated benefits of this are:

• Coverage of all public buildings across the City and County. • Stopping the need for each Partner to undergo a costly and time-consuming

procurement exercise themselves to procure a contractor. • Reduced energy costs related to the public estate • Increased energy security of the public estate • Reduced county-wide carbon emissions • Investment opportunities for partners to secure future income streams

The Energy Performance Contract covers the process of saving energy at sites from start to finish – providing a low-risk means to investing capital to save energy. Energy Performance Contracts work to deliver energy savings to buildings via the following stages:

1. A high level building assessment is carried out by an energy engineer. The engineer scopes the potential to save energy at a site suggesting measures such as LED lighting and solar panels.

2. The Partner (client) agrees to progress to a more detailed business case and technical proposal at the site including energy savings guarantees. A commitment fee is paid for this.

3. The Partner signs off detailed business case and technical proposal – progressing to works delivery at site. The commitment fee is then deducted from the capital cost of the work when progressed to delivery.

4. Work is delivered on site.

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5. Upon works completion, the contractor measures and verifies energy savings in line with guarantees covering the ‘payback’ of the project.

Why OPE?

In order to spend valuable time and resource on pursuing this programme of work, a project manager and specialist Energy Advisor are required to engage with partners and run a procurement exercise. The project manager will need to engage with partners and deliver the programme of energy upgrades following procurement of the most effective contractors under a bespoke Energy Performance Contract put together by the County Council.

OPE funding will provide the funding to resource a project manager to focus solely on this project; this will accelerate the process as well as ensuring that high quality and successful outcomes are delivered. The County Council do not currently have the resource to pursue this contract and would have alternatively procured a more basic contract just for use on their own buildings.


To date only one Partner, Harborough District Council, has accessed LCC’s Energy Performance Contract. This has enabled the installation of solar panels at their Market Hall Building which has, in turn saved c.£66,000 per annum with a 7-year payback. Now that our Partnership has come together, our aim is to extend the opportunity to the other Partners.

To date, the following have expressed interest in exploring the initiative further:

• Leicestershire County Council – Contract ‘enabler’

• Leicester City Council – the council spends around £7.5M per annum on energy costs (electricity, gas and heat). Surveys have been carried out and draft proposals made for investment in buildings with highest energy consumption. Various “Invest to save” initiatives are in the pipeline e.g. Solar PV and LED lighting projects (2017) and potential Energy Performance Contract (10 buildings - awaiting outcome of Leisure Centres Strategic Review).

• Hinckley and Bosworth Borough Council - investment in photovoltaic panels with partners providing economies of scale.

• Harborough District Council - looking to install additional works via the Contract.

• Melton – interested in replacement of existing lights with LCD, retrospective fitting of solar panels on key sites and a review of heating systems at core offices and operational sites similar to the Harborough initiative.

• Police – the Police spends around £1M per annum in gas and electricity costs. The Police are interested in exploring further opportunities to save energy and ultimately revenue – possibly longer payback schemes. It is worth noting that the Police have recently: installed new boilers and BMS

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controls; installed LED lighting both internally and externally; recently undertaken works to reduce the energy demand from cooling server rooms; and have installed solar panels on new building. These have represented the quickest paybacks so far and our Partnership will draw best practice from this.


Retro fitting of energy initiatives provides a co-ordinated and effective means of increasing the energy efficiency of public sector buildings. It provides a joined-up, holistic approach to energy efficiency; lengthy and time consuming procurement exercises do not need to be duplicated and the public sector can use the experience gained by Leicestershire County Council to fast track them to lower running costs, renewable energy production and lower carbon emissions.


Revenue cost savings delivered by project - indicative only - *see note below

**see note below: £200,000 – Year 3 (April 2018) £250,000 – Year 4 £300,000 – Year 5

From date of installation (could be from April 2018)



New jobs created by project More work created for local contractors. Assume 5 jobs per annum based on indicative capital spend

In installation of initiative. Upon business case development (likely to be April 2018 again)

Service integration benefits arising from project More effective and co-operative links with District Councils and other public bodies

Inward investment opportunities from project Own investment in County Council schemes as a result of procuring the Energy Performance Contract

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*As a result of the first phase of work completed through Leicestershire’s Energy Performance Contract, the County Council’s benefits from energy savings are equivalent to £126,000 annually and income of £158,000 from renewable subsidies at its Council buildings. This is a total revenue cost saving of £284,000 equivalent to 40% of the energy costs from the buildings involved in the project. Other phases of work have identified energy cost savings of £10,000 and will deliver an income of £43,000 from renewable subsidies totalling £53,000 of revenue cost saving to the authority. The baseline energy costs of the buildings involved was only £54,000. Our most recent phase of work is expected to deliver £48,000 revenue savings, £46,000 from energy cost savings and £2,000 from income from renewables. This is 9.5% of the baseline energy costs of the buildings involved. In total, the revenue cost savings delivered to the County Council, from both energy costs savings and renewable energy subsidies, is in the region of £385,000. The original baseline energy costs of the buildings involved is £1,251,691. This means the projects have delivered 30% revenue costs savings to the County Council. We are using this background data as a benchmark to estimate the savings that other partners may benefit from.

**At this stage it is impossible to state the benefits of this initiative. We have, therefore, included notional (modest) figures within our OPE benefits calculation based on the following assumptions:

• from April 2018 (Year 3) – 2 Partners benefit @ £100,000 each / equivalent of 4 buildings (£200,000) • from April 2019 (Year 4) – additional building(s) added (£250,000) • from April 2020 (Year 5) – additional building(s) added (£300,000)

These are obviously notional figures only and the true scale of opportunity will emerge from the scoping exercise.

Project Funding

Whilst there is interest in this project, there is no capacity or funding identified to drive the project forward across so many Partners. The County Council is, however, offering to ‘gift’ Procurement Officer time to ‘part fund’ the procurement aspect of the project.


We are seeking £139,000 capacity funding to help drive this pipeline project forward during a 24-month period as follows:



£22,000

Project Management

To ‘back-fill’ internal staff time. Capacity to manage the project and support the procurement of a comprehensive approach to energy saving across the Key Project Partners (and capable of being scaled up to accommodate additional Partners as necessary). Note that some

£16,000

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County Council Procurement Officer time will be ‘donated’.

Specialist Advisor/Scoping Appointment of a specialist Energy Advisor to undertake an assessment of the Key Project Partners operational assets to scope the potential to save energy (and relevant measures).

£78,500

Business Case preparation Capacity to support the preparation of a business case on behalf of the Key Project Partners demonstrating the benefits that a cross-sector approach to energy saving measures can derive.

£22,500

A large proportion of this capacity funding will be required in the early stages of the project.

Project Scalability

The project is capable of being scaled up to offer the opportunity for other public bodies beyond the City and County to benefit from the collaborative procurement approach.

Project Governance

The Project will be facilitated and managed by our Lead Partner, The County Council. It will ultimately then be the County Council’s Energy Performance Contractor.


The main risk associated with this project relates to the risk of limited take up by the Districts and other public bodies. This has already been addressed via further interest from Harborough (after the previous success and guarantees) and also the interest expressed by the Partners stated above. This risk will be monitored by the Project Team and the Programme Board and the capacity funding will be drawn down in stages to mitigate financial impact.

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FM/Supply Chain Efficiency Initiative

Pipeline Project 3: Economies Through Scale

Project Overview

This OPE pipeline project seeks capacity funding to enable a full understanding of the opportunity for the Partners to combine their FM/Supply Chain purchasing power to drive out efficiencies and drive down costs. This will involve extensive Partner engagement so that a ‘status quo’ baseline can be established – against which options to satisfy future service requirements can be compared – at a high level initially so that Partner buy-in to a next stage can be gained.

In exploring future options for wholesale access to FM/Supply Chain, the following are relevant:

• In May 2016, the University Hospitals of Leicester NHS Foundation Trust (UHL), Leicestershire Partnership NHS Trust (LPT) and NHS Property Services terminated their estates and facilities contracts with Interserve. Staff transferred to UHL (as the lead service delivery partner) under TUPE regulations. The Trusts are now allowed greater flexibility through the self-delivery of services. The UHL estates and facilities department now employs circa 2,000 staff delivering a comprehensive service to UHL, LPT and NHSPS through a SLA.

• Leicestershire County Council embarked upon a procurement exercise this year to appoint a supplier(s) for Soft FM services to its entire corporate property estate across Leicestershire. Leicestershire Traded Services (LTS) is funded from Council’s own internal budgets. The supply chain is open to the Council’s external customers within the East and West Midlands (e.g. schools, academies, district councils, Leicestershire Police, Leicestershire Fire & Rescue Service etc.) and there is currently an approximate 50/50% split between the County Council and Partner works. The award process for the contracts is due to take place in January 2017. Leicestershire County Council is interested in working in partnership to secure additional works outside of this contract to achieve greater economies of scale. The County Council’s Hard FM provision is managed via its Minor Works Framework and Reactive Maintenance Frameworks - both contracted to finish in the summer of 2018. These are also provided for the County Council’s own estate and partners, such as schools and academies. The County Council is keen to jointly procure a partner framework going forward.

Through a combined approach to FM procurement, partners could benefit from substantial savings in transaction costs that would be involved in the initial tendering process. In order to determine the scale of opportunity, under this project, the following key tasks will be undertaken - at a high level initially:

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Phase Objective

Creating the Baseline - due diligence/ data collection

To gather information so that the UHL and the LTS offering can be clearly articulated to the Partners. To gain a comprehensive understanding of how the other Key Partners’ existing internal FM ‘services’ and external contracts/frameworks operate – including annual ‘service’ costs. To gain an understanding of the scale of ‘estate spend’ per annum. To model this in order to gain an appreciation for the scale of annual spend. To understand from the Key Partners, the positive and negative aspects of the existing internal and external services and the supply chain.

Defining Need - developing the operational model

To understand the Partner’s requirements moving forwards based on their anticipated estates activity and the size and scale of their estates in the future. To develop evaluation criteria to be used to score options.

Options To explore different options for meeting the Key Partners requirements – including consideration of the UHL and LTS offering. To define the options from a financial and non-financial perspective.

Key Partner Workshop

To receive the findings of the options study and discuss the best way forward to maximise the benefits of collaboration.

Following the Workshop, the pipeline project will m ove into a new level of detailed feasibility – at w hich point we will seek additional OPE capacity funding if necessary.

Why OPE?

This pipeline project represents a multi-Partner opportunity to leverage efficiencies from a collaborative approach to FM and supply-chain. Given the scale of interest from our Partners, and the analysis and engagement required, we will not make progress if we have to rely on existing internal resource. OPE capacity funding will enable us to access specialist, dedicated resource to focus on the task in hand and to act on an impartial basis to present deliverable options.


The following Partners have expressed interest in this initiative:

- Leicestershire County Council (LTS – FM provider) - University Hospitals of Leicester NHS Foundation Trust (FM provider) - Leicester City Council - Hinckley & Bosworth Borough Council

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- Melton Borough Council - Leicestershire Police - Harborough District Council (possibly in future, as contract currently has 6 years to expiry)

We anticipate that interest in this initiative will increase as a result of the capacity funding.


The Key Partners are expecting this project to deliver a better value for money solution for accessing FM and supply chain, through the ‘pooling’ of requirements and the creation of ‘scale’.


Revenue cost savings delivered by project **see note below: **£0.9M per annum – Year 3 (April 2018) £1.5M per annum – Year 4 £2.1M per annum – Year 5

From date that new FM/Supply Chain source becomes operational (say, April 2018)



New jobs created by project More work created for local contractors.

Service integration benefits arising from project More effective and co-operative links with District Councils and other public bodies

Inward investment opportunities from project Potentially reinvesting public sector revenues within a public sector service

*It is worth noting that each Partner’s annual spend on FM varies significantly and an important aspect of this project is data collation and analysis. For example: Leicestershire Police incur £600,000 per annum on Hard FM, whereas the City Council estimates that it spends £20M revenue costs on Hard and Soft FM per annum. For the purpose of this exercise, we have assumed that the (non-provider) Partners that have expressed interest in this project incur annual FM revenue costs of £30M.

**At this stage it is difficult to state the benefits of this initiative. We have, therefore, included notional (modest) figures within our OPE benefits calculation based on the following assumptions:

• from April 2018 (Year 3) – a 3% revenue saving (based on £30M spend) is achieved (£900,000) per annum • from April 2019 (Year 4) – a 5% revenue saving (£1.5M) per annum • from April 2020 (Year 5) – a 7% revenue saving (£2.1M) per annum

These are obviously notional figures only and the true scale of opportunity will emerge from the scoping exercise.

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Project Funding

There is no funding allocated to drive forward the initial stages of this pilot project as set out above. The Partners will donate Officer time ‘in kind’ in order to assist with data collation and strategic discussion but we will need dedicated resource to co-ordinate the various inputs and to challenge the outcomes.


We are seeking £77,000 capacity funding to drive forward the initial stages of this pilot project over a 9-12 month period as follows:



£14,000

Project Management Internal resource from within the Council £8,000

Scoping Exercise Appointment of a specialist Advisor to undertake the high-level key tasks set out above leading to a Partner Workshop – to determine the next stage.

£55,000

Project Scalability

This pilot project has the potential to be scaled up to absorb further Partner requirements. In addition to the 7 Key Partners, as part of the initial stages, we will provide a further opportunity for Partners to come forward and take part in the scoping exercise.

Project Governance

The Project will be facilitated and managed by our Lead Partner, The County Council.


The main risk associated with this pilot project is the risk of limited take up by the Key Partners. This will remain a risk. However, the number of Partners that have expressed an interest in this project should give the GPU/LGA confidence of the potential scale of opportunity. The risk will be monitored by the Project Team and the Programme Board nonetheless.

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Summary Request to GPU/LGA

We are seeking £342,500 capacity funding from OPE5 to enable us to build our Partnership and to invest dedicated resource to deliver the projects set out in our Programme. We summarise our request as follows:

Extract from Detailed Funding Request Breakdown sheet provided in support of the Funding Request Breakdown sheet

Jan - Mar Apr - Jun Jul - Sep Oct-Dec Jan - Mar Apr - Jun Jul - Sep Oct-Dec Jan - Mar

YEAR 1

ProjectAnticipated life of

OPE Capacity Funding (months)

Capacity ActivityTotal Capacity

Funding requestQ4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 TOTALS

Programme Management 5,000 5,000 2,000 2,000 0 0 0 0 0 £14,000Project Management 0 7,500 7,500 7,500 0 0 0 0 0 £22,500Specialist Support eg. Legal and Energy Advisory

0 25,000 25,000 20,000 0 0 0 0 0 £70,000

Business Case 0 0 10,000 10,000 0 0 0 0 0 £20,000Programme Management 5,000 5,000 2,000 2,000 2,000 2,000 2,000 2,000 0 £22,000Project Management 0 4,000 2,000 2,000 2,000 2,000 2,000 2,000 0 £16,000Specialist Technical Support eg. Energy Advisory, Procurement

0 17,000 17,000 17,000 17,000 3,500 3,500 3,500 0 £78,500

Business Case 0 0 7,500 7,500 7,500 0 0 0 0 £22,500Programme Management 5,000 5,000 2,000 2,000 0 0 0 0 0 £14,000Project Management 2,000 2,000 2,000 2,000 0 0 0 0 0 £8,000Specialist Technical Support eg. FM Advisory

10,000 20,000 15,000 10,000 0 0 0 0 0 £55,000

Business Case 0 0 0 0 0 0 0 0 0 £027,000 90,500 92,000 82,000 28,500 7,500 7,500 7,500 0 £342,50027,000

£126,500

£139,000

£77,000FM/SUPPLY CHAIN ECONOMIES THROUGH SCALE

ENERGY EFFICIENT PUBLIC ESTATE

9

24

12

DISTRICT HEATING SYSTEM EXTENSION

YEAR 2 - 2017/2018 YEAR 3 - 2018/2019

293,000 22,500

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OPE Programme Expansion As we gain confidence, we hope to put further Projects forward under future OPE bidding rounds. In Appendix 1, we have shared the long list of opportunities that we discussed out our Partnership Workshop in November 2016. We will continue to discuss these opportunities so that we can work them up into a formal proposal. The following provides an example of a Leisure to Health Initiative that we will be discussing in the New Year, following commitment to do so from the relevant CCG, Borough Council, Acute Trust and Partnership Trust.

Opportunity Detail POTENTIAL OPE DELIVERABLES

The following opportunity has been identified by the Partners for further consideration. Service

Enhancement Capital

Receipts New

Homes New Jobs

Revenue Savings /

Enhancement

Leisure to Health Initiative

In order to support the vision, aims and objectives of the STP and our health partners, and also to ensure that our local authority partners are maximising the potential of their leisure assets, we would like to explore an initiative that we have called Leisure to Health. In simple terms, we are proposing to collaborate to transfer health activities traditionally carried out in a clinical setting, such as dietetics or therapy services, into an environment more befitting for patients – our leisure centres. The positive ‘knock-on’ effects of this on the health estate could be significant freeing up valuable space in acute and community settings.

The Hinckley Leisure Centre - Health Hub

The opportunity to investigate a pilot project focussed on the new Hinckley Leisure Centre with Hinckley Borough Council, the CCG, UHL and the LPT as the key partners has been identified. The Leisure Centre was delivered (to the Council) this year by a leisure provider under a design, build and operate arrangement. On behalf of the Council, the operator is keen to explore opportunities to maximize utilisation of the asset or to provide additional accommodation, including health, within the site.

��

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OPE5 Programme Governance We want to deliver our OPE5 programme outcomes as pragmatically as possible. We are therefore proposing a governance structure that enhances existing relationships, allows the development of new relationships, provides a robust framework of accountability - but that is not overly complex - so that we can focus on getting things done.

We must, however, be mindful of the proposed Combined Authority and the impending outcome in early 2017. As mentioned previously, an Economic Growth Board is already in existence and this is likely to become the governance arrangement for the new Combined Authority area. The Combined Authority will be tasked with “developing and implementing a strategic asset management plan to identify land and assets in public sector ownership”. We must remain flexible, therefore, to ensure that our OPE governance is aligned to support.

Our OPE Programme Board

Subject to awaiting the formal outcome of the Combi ned Authority proposal in early 2017, we are suggesting that a Leicester and Leicestershire One Public Estate Property Board (the Board) be established to be accountable for the delivery of our Programme. Indicative membership could be as follows:

• County – John Sinnott, Chief Executive (Chair) • City - Sir Peter Soulsby, Elected Mayor • Districts – represented by Mark Hall, Chief Executive, Oadby &

Wigston Borough Council • LLEP - Mandip Rai, Director • Bluelight – represented by Andrew Wroe, Head of Estates,

Leicestershire Police • The CCGs – represented by Karen English, Managing Director,

East Leicestershire & Rutland CCG

As a new partnership we know that we must provide confidence to the GPU and LGA of our intention and ability to deliver

Draft terms of reference for the Board are provided in Appendix 1. These are subject to the formal outcome of the Combined Authority proposal in early 2017. We will monitor Board membership as our Partnership matures and re-align the membership accordingly.

OPE Partnership Officer Group

Responding to the strategic themes set by the Board, but also forming its own agendas, we have formed an OPE Partnership Officer Group (the Officer Group) comprising multi-public sector representatives. The Officer Group will represent the back-bone of our OPE Partnership.

The majority of Officer Group participants took part in the OPE Workshop held on 29 November 2016 and have been involved in the formulation of this OPE5 Programme. Any public sector organisation with property assets located within the City and County boundary will be able to join the Group. Some members will be actively involved in the Projects put forward under this OPE5 Programme. Some will not - but may actively propose projects under further bidding rounds.

Regardless, the primary objective of the Officer Gr oup is to ensure that there is greater awareness of service a nd assets priorities across the wider geography.

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L&L OPE Programme Board

OPE Partnership Officer Group OPE Programme Manager

Low Carbon InitiativeProject Teams 1 and 2

Supply Chain Efficiency InitiativeProject Team 3

Economic Growth Board / Combined Authority

Governance

Draft OPE Programme Governance proposal pending Combined Authority outcome in early 2017

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OPE Programme Management

The Board will be responsible for ensuring that appropriate Programme Management resource is in place, using OPE capacity funding.

We are proposing to secure Programme Management capacity to lead and manage the setting up of the Programme and to steer our performance on a day to day basis through project delivery, the successful realisation of benefits, and Project/Programme closure. The Programme Manager will help us to develop our Partnership, and our Programme – including further OPE applications for capacity funding.

The Programme Manager will maintain direct day to day contact with the Project Delivery Team leads and also represent our primary link to the OPE Regional Programme Manager (Michael O’Doherty) and GPU/LGA Central Team.

OPE Project Delivery Teams

A Project Delivery Team will be formed for each of our proposed projects. The Teams will comprise resource from each of the participating partners with additional specialist capacity where required, for example, to support business case preparation, technical planning considerations etc. Where projects follow similar themes, or are within the same geography, we will look to ‘merge’ Project Teams to avoid duplicated resource.

Important ‘External’ Stakeholder Groups

Government Property Unit/Local Government Associati on

We will be keen to ensure that we engage regularly with Susan Betts, Regional Advisor, GPU and Michael O’Doherty, Regional Programme Manager for LGA as important links to Central Government.

Why OPE? We are asking for £342,500 capacity funding under OPE5 to help us to build capacity, to focus on our key initiatives and projects and expanding our thinking so that we can expand our Programme further.

Without OPE capacity funding and the kudos of a place on the OPE5 programme, we do not believe that we will deliver the projects proposed, and the outcomes stated because, in simple terms, we do not have the dedicated resource to do so.

Being part of the OPE programme will give us the focus and purpose that we have been unable to harness to date.

The capacity funding will be invested wisely in:

• Programme management and Partnership support

• Partnership and Programme expansion

• Individual project management

• Technical and feasibility studies

OPE membership will enable us to accelerate and deliver a wider range of mutually beneficial projects.

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Commitment to the Pre-Qualification Criteria At the time of submission, the following provides a status position with regard to our compliance with the pre-qualification criteria:

OPE Programme Board & Officer Group

We have senior level commitment from each of our respective organisations to come together under this OPE Partnership.

We have made a draft proposal for OPE Programme governance subject to the Combined Authority outcome in the New Year. This includes a Programme Board in respect of which we indicated the proposed membership.

We have brought together an OPE Partnership Officer Group represented by those with a responsibility for, or oversight of, local government, health and blue light estate across Leicester and Leicestershire, in addition economic growth agendas. The Officer Group came together for a Workshop on the 29 November 2016 and will meet on bi-monthly basis. The next meeting will take place towards the end of January 2017.

Asset Mapping

The County Council has led on the mapping of public sector assets through its GIS system and had provided mapping for previous initiatives including review of health properties in 2014. Asset data is exchanged with some districts as an ongoing process within existing resources but in other cases there is a need to update. The funding from our Expression of Interest will allow the Council to support the Partners in ensuring that an up to date version is available.

Record Assets Owned on e-PIMS

We can confirm that all local authorities committed to upload data to e-PIMS as part of an earlier City Deal submission but in a number of areas this needs updating. The County Council is providing support on data on behalf of the Police and will have their data in place on e-PIMS by the end of January 2017.

Valuations

The local authorities within our Leicester and Leicestershire Partnership meet requirements to provide information on the estimated value of land and buildings. This tends to be published as a ‘gross’ sum as opposed to individual building values for obvious reasons.

Asset Information Publicly Available

The Leicester and Leicestershire local authorities currently meet the Transparency Code for publishing data on ownership of assets.

Surplus Land

Within this first Programme bid, our focus has been on revenue cost reduction and income enhancement. With our new Partnership and governance in place, we are confident that further opportunities will be identified, including a collaborative approach to bringing forward surplus sites for new homes and for job creation, in addition to capital receipts. At the appropriate time we will clearly identify land to become surplus or redeveloped as part of our expanded Programme.

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Official Endorsement of our OPE5 Services & Assets Delivery Plan We can confirm that this request for capacity funding under OPE5 has the approval of Leicestershire County Council’s s.151 Officer, Chris Tambini.

In addition, we can confirm that the following CEOs and Senior Officers have confirmed their organisation’s commitment to the OPE Partnership and the submission of this initial OPE5 programme – marking the start of a new approach to collaboration moving forwards.

Leicestershire County Council John Sinnott, Chief Executive Leicester City Council Sir Peter Soulsby, Elected Mayor Oadby & Wigston Borough Council Mark Hall, Chief Executive

Melton Borough Council Lynn Aisbett, Chief Executive

Hinckley & Bosworth Borough Council Steve Atkinson, Chief Executive

Blaby District Council Jane Toman, Chief Executive

North West Leicestershire Christine Fisher, Chief Executive

Harborough District Council Norman Proudfoot and Beverley Jolly, Chief Executives

Charnwood Borough Council Geoff Parker, Chief Executive

The Leicester & Leicestershire Enterprise Partnership Mandip Rai, Director

East Leicestershire and Rutland CCG Karen English, Managing Director

West Leicestershire CCG Toby Sanders, Managing Director

Leicester City CCG Sara Prema, Managing Director

University Hospitals of Leicester NHS Trust Mike Webster, Head of Estates Transformation and Property

Leicestershire Partnership NHS Trust Andy Donoghue, Associate Director of Estates and Facilities

Leicestershire Fire and Rescue Service Graeme Major, Head of Estates

Leicestershire Police Andrew Wroe, Head of Estates

East Midlands Ambulance Service Peter Mason, Head of Blue-light Collaboration

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APPENDIX 1

Opportunities Long-List discussed at Partnership Workshop on 29 November 2016

Emerging Themes / Projects Possible Interested Partners

Blue-light Estate Strategy

1 Back-office / non-specialist estate consolidation

Leicestershire Police East Midlands Ambulance Service Leicestershire Fire and Rescue Service

2 Depot rationalisation East Midlands Ambulance Service Blaby District Council

3 Bunkered fuel strategy East Midlands Ambulance Service

Energy

4 District Heating Scheme County Council City Council

5 Energy Efficiency Programme County Council Leicestershire Partnership NHS Trust

6 White Label Energy Company County Council City Council

7 Renewable Energy County Council City Council Leicestershire Partnership NHS Trust

Health & Well-being

8 St. Peter’s Health Centre (Sexual Health project)

City Council

9 Sports & Recreation County-wide City Council Leicestershire Fire and Rescue Service Blaby District Council

10 Better Care Together Programme

University Hospitals Leicester City Council

11 Integrated Locality Teams

County Council University Hospitals Leicester

12 Integrated Call Team Hubs County Council 13 Joint-commissioning County Council

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Agile Public Sector Workforce

14 Touch-down sites City Council 15 Shared back-office services / hubs All 16 County-wide Training Estate Strategy All

Strategic Land Pooling

17 Comprehensive approach to considering public sector land for release

Leicestershire Police City Council County Council Leicestershire Fire & Rescue Blaby District Council

Vehicle Maintenance & Depots

18 Comprehensive approach to cross-County Depot provision

Leicestershire Police East Midlands Ambulance Service Leicester Fire & Rescue Service Blaby District Council

Facilities Management Supply-chain

19 Cleaning contracts Blaby District Council Leicestershire Partnership NHS Trust

20 Maintenance contracts Blaby District Council Leicestershire Partnership NHS Trust

Other:

21 Coalville Police / Fire Co-location Leicestershire Police Leicestershire Fire & Rescue Service

22 Coalville Enterprise Centre County Council 23 Melton Co-location Leicestershire Police 24 Narlborough Civic Centre Blaby District Council

25 Utilisation of individual properties - TBC

City Council

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APPENDIX 2

Leicester and Leicestershire One Public Estate Board – Draft Terms of Reference

Draft proposal pending Combined Authority outcome in early 2017

Please note that, at the time of making this OPE5 application for capacity funding, we are awaiting an announcement (in the New Year) about the proposal to operate under a Combined Authority arrangement. The Combined Authority area will encompass the 9 local authorities that have now come together under this OPE Partnership. The LLEP will also be represented.

Of particular relevance to this OPE5 application is the suggestion that the Combined Authority will “develop and implement a strategic asset management plan to identify land and assets in public sector ownership and to outline how such assets/land could be managed to unlock land for growth, reduce costs and/or create long term revenue to support economic development and inward investment” in order to support the Combined Authority’s focus on strategic economic development matters (including strategic planning policy) and strategic transport matters.

In order to quickly to commence implementation of the Combined Authority, governance arrangements have already been put in place by the local authorities and the LLEP in the form of the Economic Growth Board . This Board comprises the Leicester City Mayor, the Leader of Leicestershire County Council and leaders of all local district councils. The Board meets bi-monthly and provides a single political voice to the LLEP. Together, both the Economic Growth Board and the LLEP Board will provide strategic leadership for all economic growth programmes within Leicester and Leicestershire. Day to day delivery the LLEP Executive will be responsible for the operational commissioning and delivery of programmes.

We are hoping that the governance arrangements that are being put in place for our OPE Programme will provide a strong strategic asset management foundation to support the Combined Authority.

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Board Members

[indicative only] The following senior public sector representatives will represent our OPE Programme Board:

• County – John Sinnott, Chief Executive (Chair) • City - Sir Peter Soulsby, Elected Mayor • Districts – represented by Mark Hall, Chief Executive, Oadby & Wigston • LLEP - Mandip Rai, Director • Bluelight – represented by Andrew Wroe, Head of Estates, Leicestershire Police • The CCGs – represented by Karen English, Managing Director, East Leicestershire & Rutland CCG

Board Role

The Board will be accountable for the success of our OPE Programme providing overall direction and management. Responsibility and authority limits will be set by each Partner - it is not intended that organisations would delegate ownership decisions on their existing assets to the Board. Formal decision making on specific property assets and transactions affecting them will remain with the party who owns the interest in question.

The Board will be established as a ‘local strategic property forum’. The Members of the Board will support the OPE Partnership to work together to explore and promote the benefits of a collaborative approach to public sector services and asset-based decision and implementing and promoting the opportunities that arise.

The Board is the Programme’s ‘voice’ to the outside world and is responsible for publicity or other dissemination of information about the overall Programme.

Board Objectives

1. Achieve a more integrated approach to the planning and management of property assets across the Leicester and Leicestershire public estate to support economic growth and deliver better value for money for the public purse.

2. Ensure the release of public estate for regeneration and value realisation.

3. Increase the efficient use of space to enable the public sector to lower its property running costs, achieve cost reductions and carbon reduction.

4. Improve the quality of customer access, organisational communication and working dynamics by bringing together compatible public services and property uses.

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Board General Responsibilities

1. Encouraging active engagement from public sector organisations with property assets within the City and County boundary.

2. Acting in the best interests of all Partners.

3. Building trust and improving working relationships for the benefit of all Partners.

4. Maintaining an awareness of the priorities of the Partnership organisations.

5. Evolving the Partnership Vision and the OPE Programme to ensure that priorities are met through collaborative means wherever possible.

6. Ensuring the availability of accurate, reliable and up-to-date public sector property data to inform service planning and property-based decision-making.

7. Encouraging the submission of new ‘project proposals’ from the Partners and evaluating the proposals accordingly to inform the expansion of the OPE Programme.

8. Simplifying the means by which property-based collaboration can be achieved.

9. Signing off relevant OPE Programme documentation (eg. new capacity funding bids under OPE6 and OPE7, Project Plans under this OPE5 application and major deviations etc).

10. Ensuring that the required Programme Monitoring resource is in place.

11. Quality assuring the Programme and its associated Projects.

12. Requesting regular progress reports to ensure that the Programme is on track to deliver the Project outcomes.

13. Approving the draw-down of capacity funds to enable delivery of the Projects under the Programme.

14. Signing off the completion of each Programme tranche, including the deliverables, and giving approval to start the next stage.

15. Resolving any conflicts escalated by the Programme/Project teams.

16. Monitoring the risk(s) associated with the Programme including those escalated from Project level.

17. Approving end Project reports and plans for Post–Project Reviews (and ensuring that a Post-Programme Review is scheduled and takes place).

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Board Membership

The Programme Board will have at least [five] Members – including a Chair and Vice Chair. Further membership can be appointed to the Board on the recommendation of Board members. Membership will be reviewed on an annual basis. Only members of the Board will have the right to attend Board meetings. However, other individuals such as external or technical advisers may be invited to attend for all or any part of a meeting, as and when appropriate/necessary. If a vote on a decision is required, only formal Board Members shall be able to exercise a vote. If a member is unable to attend a meeting due to absence, illness or any other cause, they should nominate a substitute to attend in their place.

Board Members Liabilities

There is nothing in these terms of reference that is intended to create personal liabilities for Board Members individually or collectively.

Frequency of Meetings

The Board will meet at least four times a year, ideally on a quarterly basis.

Quorum

The quorum necessary for each Board meeting shall be [four], including the Chair or Vice Chair. A duly convened meeting of the Board at which a quorum is present shall be competent to exercise all or any of the powers or take any decision that would be available to the full Property Board, except that full Board approval is required to any changes in the constitution of the Board.

Facilitation

Board meetings will be facilitated by the Programme Manager. Meetings for will be booked at the beginning of that year to enable maximum attendance. Agendas will be sent out a minimum of one week before the meeting and draft minutes from the meeting will be sent out no later than one week after the meeting.

Review of Terms of Reference

The Board may agree revisions to these terms of reference as it considers appropriate. As a minimum, however, they will be reviewed at the first meeting of each calendar year. Changes to the terms of reference that required agreement by member organisations will not be agreed, except where prior agreement from those member organisations has been obtained.

Confidentiality

Information received and discussed by the Board must be treated as confidential in so far as the Freedom of Information Acts permit.

Documents

Plan, we are requesting funding of £342,500€¦ · National Space Centre, Curve (performing arts) and the Gold Award winning Highcross shopping and leisure complex. The links to