Hampshire County Council

Executive Member - Adult Social Care Item 1

28 October 2005

Participation in Southwest Hampshire Local Improvement Finance Trust

Report by the Director of Adult Services

1

Summary

1.1

The following decisions are sought:

1. That Hampshire County Council become a partner in Southwest Hampshire LIFT at level 2 without exclusivity, and is listed as such in the Official Journal of the European Union ("OJEU")which will invite private sector partners to tender for Southwest LIFTco.

2. That the draft Memorandum of Information and the OJEU notice be approved

3. That the Director of Adults Services be given delegated authority to agree and approve any amendments to the final version of the OJEU and Memorandum of Information subsequent to the date of this decision day.

4. That the South West LIFT Strategic Services Delivery Plan (SSDP) version 4.1 be approved and that authority is delegated to the Director of Adult Services to agree and approve any amendments to the final version subsequent to this decision day.

5. That approval is given to the procurement regime as outlined in this report

6. That the South West Hampshire LIFT Scheme of Delegation and Project Board Terms of Reference are approved.

2

Reason(s)

2.1

This decision supports Aim 5 of the Corporate Strategy Improving Services through the provision of modern purpose built health care facilities close to the local communities they serve.

3

Other options considered and rejected

3.1

Not to participate

Participation at another level.

4

Conflicts of interest declared by the decision-maker or other Executive Member consulted

4.1

None

5

Dispensation granted by the Standards Committee

5.1

None

6

Reason(s) for the matter being dealt with if urgent

6.1

Not applicable

Approved by:

.......................................

Date:

.........................

Councillor Patricia Banks

Hampshire County Council

Executive Member - Adult Social Care

28 October 2005

Participation in South West Hampshire Local Improvement Finance Trust

Report by the Director of Adult Services

How the conclusion in this report fits with the Corporate Strategy

This scheme will impact on the delivery of the following Corporate Aim

Aim 5 - improving services through the provision of modern purpose built primary health care facilities close to local communities

1.

Summary

1.1

The South West Hampshire Primary Care Trusts have recently been awarded LIFT status as part of a fourth wave approved nationally. The LIFT process has been introduced to stimulate investment in local primary and social care facilities, and to ensure delivery of NHS plan targets for modernising primary care through capital development.

A Southeast Hampshire LIFT co, Solent Community Solutions has already been set up with Hampshire County Council participating at Level 2 which is a participant under the Strategic Partnering Agreement without giving exclusivity. This report sets out the necessary approvals to achieve the same arrangements for Southwest Hampshire LIFT.

2.

South West Hampshire NHS Lift

2.1

LIFT is a mechanism for grouping together a number of schemes to make them attractive for public private partnership. A LIFT company (LIFTco) is formed as a public private partnership vehicle for delivering the schemes. PCT's and other health and local authority partners can offer schemes for development by LIFTco over the following 25years.

The stakeholders establish a Strategic Partnering Board where agreement on the local health and social care community's needs and requirements for local services and facilities to be provided by a LIFTco will be agreed. Details of the proposal are set out in a Memorandum of Information and Official Journal of the European Union ("OJEU") notice attached.

The proposed scheme of delegation requires that the Strategic Partnering Board will agree on behalf of stakeholders (including the County Council) the standard project documentation, the Strategic Service Delivery Plan ("SSDP") draft, and the Procurement Documentation. The County Council, in common with other stakeholders, will grant final approval of the SSDP, business cases, choice of procurement regime, OJEU notice and Memorandum of Information, evaluation process documents, financial close of the LIFTco, Lease Plus Agreements, Shareholder agreements, Strategic Partnering Agreement, property/land sales and leases.

2.2

The other Southwest Hampshire LIFT partners are anticipated to be;

Eastleigh and Test Valley South Primary Care Trust

New Forest Primary Care Trust

Mid Hants Primary Care Trust

Southampton City Primary Care Trust

Southampton University Hospitals Trust

Winchester and Eastleigh healthcare Trust

Hampshire Partnerships Trust

Hampshire Ambulance Trust

Southampton City Council

Basingstoke and Deane, New Forest, Winchester, and Eastleigh District Councils

2.3

The LIFT process requires the NHS partners to put forward "sample" schemes which are used as part of the tendering process and to evaluate private sector partners, these sample schemes are included in the SSDP version 4.1, and are the first schemes to be built by the LIFTco once formed. It is anticipated that sample schemes will include a Primary Care Delivery Centre on the Western Hospitals site and a new Mental Health Unit to replace the Department of Psychiatry in Southampton. This will be confirmed in the final SSDP to be approved by the LIFT Strategic Partnering Board. The proposed schemes are advertised together with the names of the partner organisations in the Official Journal of the European Union ("OJEU") as part of the tendering process for LIFTco. It is anticipated that this will be progressed in November 2005. Any schemes that Hampshire County Council might wish to procure through SWH LIFT in future will need to fall within the contract as defined in the OJEU notice; i.e. new build and refurbished serviced public and community based health, social care and customer service facilities.

3

Impact Assessment

3.1

In compiling this report account has been taken of the requirements of the Corporate Equalities Plan and Race Scheme. The participation at level 2 puts the County Council under no obligation to put forward schemes under LIFT, but will retain the option to do so and enables the County Council to reserve its position to include future premises for health and social care but without an obligation to do so. The benefits also include the ability to comment on the implications of health, care and estates strategies and to positively influence them. This will include ensuring the equalities issues are assessed and addressed. The County Council will also have the means to identify new opportunities and better ways of delivering the required outcomes, investments and services which will take into account both the equalities, social inclusion and wellbeing agenda.

3.2

There are four levels of participation in LIFT.

Level 1 is no involvement other than taking a lease in an individual premises.

Level 2 (without exclusivity) reserves the participant's position without an obligation to build schemes through LIFT.

Level 3 is with exclusivity and obliges the participant to build schemes through LIFT

Level 4 is as for level 3 with equity shares in the LIFT company.

Level 2 has been selected (without exclusivity) because it reserves the County Councils position for the future and enables participation and influence at Board level without any obligation to put forward schemes to the LIFT company.

4

Consultation with Local Members

4.1

The County Councillors linked to the Primary Care Trusts will be aware of the formation of Southwest Hampshire Local Improvement Finance Trust through their attendance at Primary Care Trust Board meetings. A briefing has been circulated to members prior to the decision day which is attached as Appendix 1.

6. Recommendation(s)

6.1

That Hampshire County Council becomes a partner in Southwest Hampshire LIFT at level 2 without exclusivity, and is listed as such in the Official Journal of the European Union which will invite private sector partners to tender for Southwest LIFTco.

6.2

That the draft Memorandum of Information and OJEU notice attached to this report be approved

6.3

That the Director of Adult Services be given delegated authority to agree and approve any amendments to the final version of the OJEU and Memorandum of Information, subsequent to the date of this decision day.

6.4

That the Southwest Hampshire Strategic Service Delivery Plan (SSDP) version 4.1 is approved and that authority is delegated to the Director of Adult Services to agree and approve any amendments to the final version of the SSDP subsequent to the date of this decision day.

6.5

That approval is given to the procurement for the South West Hampshire NHS LIFT, which has been outlined in a paper prepared by Bevan Brittan entitled "Procurement issues relating to the choice of regime and procedure for NHS LIFT", being carried out under the services regime for the reasons set out in paragraphs 7 and 8 of that paper which has been reviewed by HCC Legal Practice.

That NHS LIFT procurement should be carried out using the competitive negotiated procedure. This is both on the "overall pricing ground" (for the reasons set out in paragraph 15 of the paper) and because the nature of the services is such that specifications cannot be drawn up with sufficient precision to permit the use of the open or restricted procedures (for the reasons set out in paragraph 19 and 20of the paper).

6.6

That the Southwest Hampshire NHS LIFT Scheme of Delegation and Project Board Terms of Reference are approved.