Facilities Services Notification FSN 11/08

Blwch SP 182, Ty Bevan 24-30 Cligant Lambourne Llanisien, Caerdydd CF14 5GS PO Box 182, Bevan House 24-30 Lambourne Crescent Llanishen, Cardiff CF14 5GS Ffon/Tel: 029 20315500 Facs/Fax: 029 20315501 Facilities Services Notification FSN 11/08 1 June 2011 New arrangements for Property Management For action by: Chief Executives, NHS Health Boards and Trusts Directors of Planning: NHS Health Boards and Trusts For information only: Estates/ Facilities Directors and Managers, NHS Health Boards and Trusts Copy to: Head of Capital Estates and Facilities, Department of Health and Social Care, Welsh Assembly Government Enclosures: None Further Information from: Gareth Roberts NHS Wales Shared Services Partnership - Facilities Services P O Box 182 Bevan House 24-30 Lambourne Crescent Llanishen Cardiff CF14 5GS Tel: 029 2031 5527 Fax: 029 2031 5501 E-mail: gareth.roberts3@wales.nhs.uk

Blwch SP 182, Ty Bevan 24-30 Cligant Lambourne Llanisien, Caerdydd CF14 5GS PO Box 182, Bevan House 24-30 Lambourne Crescent Llanishen, Cardiff CF14 5GS FSN 11/08 Ffon/Tel: 029 20315500 Facs/Fax: 029 20315501 1 June 2011 Chief Executives, NHS Health Boards and Trusts } Directors of Planning, NHS Health Boards and Trusts } For action Estates/ Facilities Directors and Managers, NHS Health Boards and Trusts } For information Dear Colleague, NEW ARRANGEMENTS FOR PROPERTY MANAGEMENT New arrangements for Property Management were introduced through Andrew Walker s e-mailed letter of 12 May 2011 addressed to Chief Executives (copied to Directors of Planning). This letter provides more detailed arrangements for taking the project forward under the following Annexes: Annex 1: This identifies the main service activities and the responsibilities of the respective parties (NHS Wales Shared Services Partnership-Facilities Services (NWSSP-FS) and Health Board/NHS Trust) Annex 1 generally reflects the current arrangements between the former Welsh Health Estates and most Heath Boards/NHS Trusts but now also includes a more formal role in the management of leases. Annex 2: A phased transfer of responsibilities is planned based on a start date of 1 June 2011 as detailed in the Annex. Contact will be made with each NHS body s contact point within the first month. Health Boards/NHS Trusts are asked to identify where all their known lease documents are located and ensure NWSSP-FS has access to such documents or is provided with original documents or copies within an agreed timescale.

It is proposed that an annual review of the new arrangements will be held with each Health Board/NHS Trust to identify opportunities for improvements that could be made. Should you need further clarification or have any queries in the first instance please contact Gareth Roberts on 029 2031 5527 or gareth.roberts3@wales.nhs.uk. Yours sincerely N H DAVIES ASSISTANT DIRECTOR NHS WALES SHARED SERVICES PARTNERSHIP HEAD OF FACILITIES SERVICES

1.0 Acquisition of Land & Property To manage the acquisition process as follows: 1.1 Agree site requirements, criteria and timescales with LHB/Trust 1.2 Establish whether another NHS organisation has suitable surplus land or property 1.3 Establish whether other public sector land is available 1.4 Conduct a site search in accordance with agreed criteria and clarify deliverability, likely asking price and identify potential constraints 1.5 Provide site information and advice to inform the LHB/Trust s option appraisal/business case process Identify due diligence work to be undertaken (site investigations and other factors affecting land value). 1.6 Provide input into the planning application process. 1.7 Manage negotiation of price (or occasionally option to purchase) and heads of terms (either from within in-house resources or through the appointment of an external consultant or District Valuer). NWSSP-FS will determine the consultant to be appointed (acting in accordance with the Trust/LHB s procedures and standing orders). 1.8 Instruct the LHB/Trust s legal advisers to undertake appropriate searches, prepare and agree legal contracts and take to legal completion of purchase. 1.9 Advise on CPO procedure where necessary and recommend appropriate specialist consultants. To identify a requirement for land and property (whether freehold or leasehold) and provide a liaison contact. Agree site requirements, criteria and timescales with NWSSP-FS To manage option appraisal/business case process. Commissioning of site investigations and due diligence surveys through the Supply Chain Partner (SCP), or direct by the LHB/Trust. SCP or LHB/Trust to manage planning application process and seek planning consent. Make formal appointment of consultants and pay invoices/costs. To obtain Board approval where necessary and sign and seal legal documents. 2.0 Disposal of Land & Property Assets Once land/property is identified for disposal NWSSP will manage the disposal process under the To consult on closure of health buildings and identify and declare land and property as surplus 1 26 May 2011

following general headings: 2.1 Agree site closure programme with LHB/Trust (decommissioning dates, closure date/s, disposal phases) 2.2 Action the affordable housing protocol and/or establish any other priority purchasers Action transfers between NHS organisations or other public sector bodies 2.3 If no public sector interest is identified - establish disposal team and agree consultant appointments with LHB/Trust. NWSSP-FS will identify suitable property agents, planning advisers and other consultants and obtain fee quotations if required in accordance with LHB/Trust Standing Orders 2.4 Resolve legal issues affecting disposal including negotiating and formalising 3 rd party occupations where necessary. 2.5 Identify appropriate reports/surveys required including planning, legal, ground condition, highways and access, ecology and environmental and produce a technical information pack for prospective purchasers. 2.6 Seek to obtain the most appropriate planning consent/development brief for development or change of use to achieve the best value and ensure suitable representations are made on LDP processes if necessary 2.7 Select method of disposal, and agree disposal and marketing strategy with the property agent and disposal team. Ensure the agent markets the site fully having agreed a suitable marketing budget with the LHB/Trust. and inform NWSSP-FS when disposal process can commence. (preferably a minimum 12 notice for hospital sites and 6 months notice for smaller sites) Agree key dates and closure programme with NWSSP-FS Obtain necessary approvals and sign and seal contracts and formal transfer documents Provide a liaison contact and attend disposal team meetings throughout the process Issue formal orders for appointments throughout the disposal process as agreed with NWSSP-FS. Arrange payment of consultants invoices. Identify 3 rd party occupations to NWSSP-FS. Sign and seal documents where necessary Make formal appointments and commission work as agreed with NWSSP-FS and organise payment of invoices. Make arrangements when required for property inspection/viewings. Make formal appointments and commission work as agreed with NWSSP-FS and organise payment of invoices. Agree disposal and marketing strategy together with marketing budget. 2.8 Negotiate/establish best offer (including overage Arrange opening of tenders (where required) in 2 26 May 2011

and clawback provisions if relevant) and provide recommendation to the LHB/Trust for Board approval. Arrange tender opening to comply with LHB/Trust s Standing Orders. 2.9 Instruct solicitors to prepare contracts and sale documents and liaise with and co-ordinate all parties until completion of sale. 3.0 Management of Landlord and Tenant Relations Incorporating the management of lease/licence arrangements for all NHS Wales properties. 3.1 Collate all known lease information and populate the e-pims database. Provide training to enable LHBs/Trusts to access their lease information. 3.2 NWSSP-FS will conduct all contact with prospective landlords or tenants relating to any negotiation of terms. 3.3 Undertake negotiation of terms for all new leases/licences, renewal of leases, surrender of existing leases, assignment of leases and rent reviews. 3.4 Manage process for negotiating and agreeing costs of dilapidations at the end of leases. Determine external appointments that may be required. 3.5 Notify LHBs/Trusts about key dates for actions or serving notices and counter notices. NWSSP-FS will advise on the appropriate response and will action accordingly through the LHB/Trust solicitors. 3.6 Instruct the LHB/Trust s legal advisers on lease accordance with LHB/Trust Standing Orders. Agree best offer with NWSSP-FS and advisers and submit for Board Approval where necessary. Arrange for signature and sealing of all legal contract and transfer documents. Complete all site/building decommissioning works and notify local authority (for business rates) and other relevant bodies (e.g. utility companies) of vacation. Arrange handover of keys to solicitors/purchasers Provide all lease documentation and supplemental information (e.g on current rent, floor areas) for input into e-pims. LHB/Trust should contact NWSSP-FS immediately a new lease acquisition is being considered or at least prior to any contact with landlords or their agents. All external appointments will be made by the LHB/Trust following recommendations from NWSSP-FS. LHB/Trust to refer all received notices/correspondence to NWSSP-FS immediately upon receipt. 3 26 May 2011

contracts/serving of notices and liaise with the legal adviser throughout the process. 3.7 Negotiation and advice on service charges due under leasehold arrangements 3.8 NWSSP-FS will advise on responsibilities and obligations under a lease e.g repair, insurance, outgoings NWSSP-FS will input all new leases onto e-pims on completion of lease and update existing records as required. Where the LHB/Trust is landlord it should ensure proper records of service charge costs incurred. LHB/Trust responsible for repair/maintenance as required under the lease and for compliance with health and safety and statutory requirements. 4.0 Valuation of Property Assets 4.1 NWSSP-FS will co-ordinate and manage the Revaluation of the NHS Estate for capital asset accounting purposes (currently required on a quinquennial cycle) NOTE: This service may be provided on behalf of the Assembly Government. LHB/Trust will be required to provide all updated information to enable the DV to undertake the revaluation and arrange for inspections as required. 4.2 WHE will monitor ad-hoc asset valuations. LHB/Trust will notify NWSSP-FS of material changes to property assets and instruct DV for interim ad-hoc asset valuation updates and inform NWSSP-FS of revised valuations. All requirements for other land and property valuations (including market valuations) will be channelled through NWSSP-FS which will either provide the valuation in house or recommend appointment of an appropriate external valuer. 5.0 Easements, Wayleaves and other Property Rights 5.1 Manage all negotiations for rights required by third parties over NHS land and rights required by the NHS over third party land. NWSSP-FS will recommend any external appointments which may be required 5.2 Manage disputes relating to land and property. As above Any formal external appointments will be made through the LHB/Trust (as recommended by NWSSP-FS). Formal appointments will be made through the LHB/Trust. LHB/Trust will arrange signing and sealing of all contracts, deeds and legal documents. 4 26 May 2011

Manage negotiations relating to ransom strips. 6.0 Overage & Clawback 6.1 Maintain records of overage and clawback benefits reserved in sale contracts of NHS property and review and monitor sites where necessary. 6.2 Negotiate all overage or clawback payments which may become payable (may require the appointment of an external adviser). 7.0 Land and Property Portfolio Scope of properties to include all freehold and leasehold interests for over 7 years 7.1 Update, review and maintain the LAPP for NHS Wales to an agreed programme (currently hospitals are updated every 2 years and other properties every 4 years). This equates to approximately 150 properties per year. 7.2 The LAPP process includes updating new site plans based on the latest Ordnance Survey map and site survey by professional surveyors together with an update of the legal information relating to each property. This will include monitoring covenants, rights and land trespass. 7.3 Provide each LHB/Trust with updated plans both in a hard copy folder(s) and on disk in a computerised CAD format. 8.0 Local Development Plans (LDP) 8.1 Monitor local authorities LDP processes and advise on action and planning consultant appointments when opportunities arise to influence or respond to the LDP process. As above To appoint and fund external consultants where recommended by NWSSP-FS. Provide NWSSP-FS with up to date lists of land and property assets on request and agree the sites to be included within the scope of review. Allow/arrange site access as necessary. Provide access to legal records relating to each property as required. To appoint and fund external consultants where recommended by NWSSP-FS. 5 26 May 2011

9.0 Business Rates 9.1 Notify each LHB/Trust of changes to legislation or processes. 9.2 Ensure each LHB/Trust has a suitable rating consultant appointed. 10.0 Portfolio Rationalisation 10.1 Advise on rationalisation of LHB/Trust s property portfolio To appoint and fund external consultants where recommended by NWSSP-FS. Provide occupancy costs and data on its land and property assets. 6 26 May 2011

Annex 2: PROPERTY MANAGEMENT Timetable for Transfer of Responsibilities A phased transfer of responsibilities is planned based on a start date of 1 June 2011: 1.0 Disposals and acquisitions The responsibility for all disposals and acquisitions will pass to NHS Wales Shared Services Partnership Facilities Services (NWSSP-FS) with effect from 1 June. Contact will be made with each LHB/Trust by 1 June to identify all disposals and acquisitions and determine those disposals or acquisitions which should be completed at local level and those which should be managed by NWSSP-FS. Management of these disposals will be transferred from 1 June or at an appropriate date by agreement between the parties. 2.0 Landlord and Tenant Arrangements The transfer of the management of lease arrangements to NWSSP-FS will be phased over a 9 month period from 1 June (based on a current estimate of 250 leases). First steps will require Trusts/LHBs to provide all lease documents to enable data entry and population of e-pims. Each lease will be scanned and stored electronically. On completion of the data entry for each individual organisation NWSSP-FS will produce a report identifying those lease arrangements where key decisions or actions need to be taken. Full operation of the national role will be effective once all lease data entry is completed. Training will be provided by NWSSP-FS to enable each LHB/Trust to access their e-pims data. In the following and subsequent years NWSSP-FS will produce an annual report in the first quarter of each calendar year which will identify all leases requiring key actions or decisions during the following 12 months. Where decisions need to be taken NWSSP-FS will provide each LHB/Trust with options and recommendations on courses of action available. 3.0 Valuation of Property Assets NWSSP-FS will co-ordinate and manage the Revaluation of the NHS Estate for asset valuation purposes (currently undertaken on behalf of the Assembly every 5 years). The ad-hoc housekeeping valuations will continue to be undertaken by the NHS organisations via the District Valuer but organisations will be required to notify NWSSP-FS of any amendments in valuations. Any market valuations required will be managed by NWSSP-FS although the formal appointments and payments of invoices will continue to be made by the NHS body. 4.0 Land and Property Portfolio This function will continue to be organised and managed on a cyclical review basis as currently. 5.0 Property Performance and Portfolio Rationalisation NWSSP-FS will seek to establish whether property occupancy costs can be identified for administrative and office premises. Provided this can be achieved key performance indicators and targets will be established and measured in line

with other public sector bodies. Data set and target indicators will be agreed with the service. NWSSP-FS will work in partnership with NHS organisations to identify opportunities for property efficiencies and rationalisation. 6.0 General Property Services NWSSP-FS will manage, with effect from 1 June, all negotiations of ransom values, overage and clawback rights. It will also manage negotiations for easements, wayleaves and other rights over land and property. NWSSP-FS will provide support on business rates, local authority development plans and potential section 106 contributions which might accrue to the NHS from large development proposals.