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(1)

Using a Contractor in the Delivery

of Planning Services

(2)

Dave Jolley - Planning and Building Control Director

(3)

Programme

1) Background to the Partnership 2) Services and Scope

3) Why use a Contractor

4) Options available for using a contractor 5) Technical Services Commissions

6) Framework Partnerships 8) Delegated Authority Model

9) Long Term Collaborative Partnerships 10) Critical Success Factors

(4)

What is Urban Vision

The Background

Urban Vision Partnership Ltd is a fifteen year partnership created on the 1st February 2005, following Salford City

Council’s need to remodel and modernise key council services, deliver efficiencies, improve capacity, access new markets and safeguard and grow jobs in an uncertain future.

The core objectives set by the Council were to:

 Improve Performance Against Key Performance Indicators

 Improve Capacity Management

 Deliver Efficiency Savings

 Create New Market Opportunities/ Business Growth

 Provide Innovative Working Arrangements

 Create Opportunity to Invest in Highways

(5)

UV Partnership

Innovation

Urban Vision is an innovative model and one of the few public/private partnerships created under a secondment arrangement, the 1st of it’s kind in the UK, between Salford City Council, Capita Symonds and Galliford Try. 392 Salford City Council staff were seconded into Urban Vision whilst retaining their terms and conditions of employment.

By pooling the combined public and private sector expertise and experience of staff, Urban Vision is able to progress Local Authority and private sector objectives whilst

delivering innovation and excellence in both market sectors. We now have 50 local authority clients for planning many of whom are rural authorities.

We support our 15 year rural strategic partnership in

Breckland, Norfolk and we now have capacity partnerships with Purbeck and Newark. We also support and are

members of the Country Landowners Association.

Urban Vision deliver the

following services on behalf of the council and external clients:

> Planning;

> Development Management; > Building Control;

> Civil Engineering Design; > Highway Maintenance Services;

> Property and Estate Management Services; > Traffic & Transportation Engineering;

> Geological Services

Architecture

(6)

The Planning Market

“The market for private sector planning consultancies has

grown significantly over the last ten years and councils now

regularly use external organisations to assist them with

specialist work. What remains less common is using the

private sector to deliver mainstream planning services such

as processing applications and appeals work.”

The Audit Commission (2006):

“(Local Authorities should) balance their inclination to provide planning services

in-house with consideration of:

• solutions available through the private sector, given the current shortage of

planners and skills; and/or

• sharing planning resources with other councils, particularly to support the

preparation of local development frameworks.”

(7)

Why Use a Contractor

Increasing capacity when needed

Service resilience

Avoid staffing to peaks in workload

Interim Management

Save money

Increased competition for work amongst contractors

Specialist services

(8)
(9)

In-Sourcing

Local Authority

Private Sector

Partner

Simple Contract

Agreement

Ad Hoc Arrangements

Casework support

Interim Management

Service Improvement Work

Option Appraisal

(10)

Call Off Support via Framework

Local

Authority

Framework Agreement

Lot 2

Planning Policy

Lot 3

Specialist Planning

Lot 1

Development Control

Lot 4

Building Control

Framework Arrangements

1 or 3

+

companies in each category

Max 4yrs

Call off arrangement

Conditions of engagement

(11)

What are the Benefits & Key Issues?

Benefits

 Freedom to award contracts without the need to re-advertise and re-apply the selection and award criteria

 Medium term commitment from consultants

 Improvement in efficiency

 Building relationships - continuity of work and continuous improvement  Early involvement in casework

Key Issues

 Duration restricted to 4 years

 No real strategic working if more than one framework partner is selected

 No scope for achieving savings

 No scope for addressing reduction in workload for staff

 No scope for investment in the service or staff

 No link to the wider network of planning businesses

(12)

Shared Service Partnership

via Delegated Authority

 Legally robust.

 Several partnerships now in place that use this model.

 Uses Local Government Act 1972 (S101).

 A public/public shared service arrangement.

 The host Council is able to use the Private Sector Partner to assist in Service delivery delegating authority if specific requirements are met.

 EU Compliant procurement was used.

 Service is part of the scope of the original OJEU.

 Ability to work across host Council boundary.

(13)

Shared Service Partnership

via Delegated Authority

Delegating Authority Host Authority Private Sector Partner Delegation Agreement Service Contract Service Delivery

The arrangement is intended to be achieved by:

 the delegation of relevant public functions from a Local Authority to Salford using local government powers; and

 the direct purchase by Salford City Council from UV of the relevant services (under it’s existing contract) in order to exercise these delegated functions

.

(14)

Long Term Collaborative Partnerships

Long Term Partnership Arrangements

10

+

years

Governance

Service Standards

Financial Arrangements

Risk Transfer

Local Authority

Partnership

Agreement

Private Sector

Partner

(15)

Why a Strategic Partnership ?

Provider to a single client

Limited by budget

Little external income

Hierarchical/linear structure

Limited control over service

quality & budgets

Provider to a wider client base

Access a national

business infrastructure

Pay for the service used

Manage income and costs

Flexible structure

Pool resources – to achieve

efficiencies & economies

(16)

Critical Success Factors

Cost Control

Business Centre Cost Management

In control of own costs and business decisions – not hindered by Council

imposed savings or corporate overheads

Economies of scale

Streamlined administration

(17)

Critical Success Factors

Cultural and Commercial

We are a commercial business with commercial drive and acumen

A strong brand identity

Inter- organisation comparison of costs and efficiency

Proactive and Dedicated Business Development,

Relationship Management and Marketing

(18)

Critical Success Factors

Cultural and Commercial

Dedicated bid support, leading graphic design and reprographics to achieve

high quality proposals

Empowered Managers

Proactive about diversification

ISO Accreditation - ISO 9000 quality

ISO 18000 health and safety

ISO 14000 environmental

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