• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Agenda Item 11.1 - Asset Strategy and Management Plan
 

Agenda Item 11.1 - Asset Strategy and Management Plan

on

  • 352 views

 

Statistics

Views

Total Views
352
Views on SlideShare
352
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft Word

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Agenda Item 11.1 - Asset Strategy and Management Plan Agenda Item 11.1 - Asset Strategy and Management Plan Document Transcript

    • AGENDA ITEM 11.1 STAFFORDSHIRE MOORLANDS DISTRICT COUNCIL Report to Cabinet 31st July 2007 TITLE: Asset Management Strategy, Asset Management Plan and Corporate Maintenance Strategy PORTFOLIO: Housing and Property OFFICER: Corporate Director and Monitoring Officer WARD: Non Specific Appendices attached: Diagram 1 Appendix A – Corporate Property Strategy Appendix B – Asset Management Plan Appendix C – Corporate Maintenance Strategy 1. Recommendations 1.1 That Cabinet approves the Corporate Property Strategy as attached as Appendix A. 1.2 That Cabinet approves the updated Asset Plan as attached as Appendix B. 1.3 That Cabinet approves the Corporate Maintenance Strategy as attached as Appendix C. Reason: To ensure that effective use is made of the Authority’s property assets as corporate resources and to support the delivery of corporate and service objectives, including the Authority’s priorities for improvement. -1 -
    • 2. Executive Summary 2.1 The purpose of the Corporate Property Strategy (CPS) and the Asset Management Plan (AMP) is to ensure that the Council’s asset management arrangements and the assets themselves make a positive contribution towards the corporate objectives and service delivery Of the Council. 2.2 A new CPS has been produced which is attached (Appendix A) and the AMP has been updated to reflect the key drivers which change and influence asset management planning in local government. 2.3 This year, the AMP has been updated to reflect the changes to the Council’s governance arrangements and to take account of the corporate and service objectives including key priority projects which the Cabinet has promised to deliver this year. The updated AMP is attached (Appendix B). 2.4 The District Council is a significant property owner, with assets valued in excess of £21 million. There is a need for the Council to think strategically about its property holding to ensure its property portfolio maintains value and helps to meet the Council’s aims and objectives. 2.5 The Corporate Asset Management Plan and Property Strategy make an explicit and direct link between the Council’s aims and asset management planning. These documents provide the framework for the Corporate Maintenance Strategy and the inter-relationship is described in the Asset Management Plan. 2.6 The Corporate Maintenance Strategy is attached (Appendix C). 3. Options and Risk Assessment 3.1 Approve the Recommendations – There are no options to consider as the continued update of the AMP is considered as good practice. 3.2 Not approve the Recommendations – This is not considered to be a viable option. 4. Implications 4.1 Community Safety - (Crime Implementing the Property Strategy will and Disorder Act 1998) assist in achieving the service delivery priorities of the Community Plan. -2 -
    • 4.2 Employees None. 4.3 Diversity This report has been prepared in accordance with the Council's Diversity and Equality Policies. 4.4 Financial The Resource implications of implementing specific property initiatives will be subject to individual reports to Cabinet. 4.5 Legal None. 4.6 Sustainability None. MARK TRILLO Corporate Director and Monitoring Officer Background Papers Location Contact Report to Cabinet dated 29 July Property Services Section, Clive Rhodes 2003 Moorlands House, Leek Head of Property Services Tel: 01538 483555 Report to Cabinet dated 7 September 2004. Report to Cabinet dated 19 July 2005. Asset Management Plan July 2005. Property Condition Appraisal and Performance Indicator – Report to Cabinet dated 8 November 2005. Updated Asset Management Plan July 2006. Decision: Reason: Interests Declared: -3 -
    • 5 Background Information 5.1 The Asset Management Plan is the corporate document detailing existing asset management arrangements and outcomes and planned action to improve corporate asset use. The purpose of this document is to ensure that the Council’s asset management arrangements and the assets themselves make a positive contribution towards the corporate objectives and service delivery of the Council. 5.2 The key drivers for continuous improvement in property asset management in local government include: • Best Value The Best Value Framework requires local authorities to maintain a rolling programme of fundamental reviews of their functions, to encourage and support continuous improvement and the pursuit of ever better value for money. Property assets should be intrinsically part of such reviews, along with all other resources – personnel, finance, ICT – and not dealt with later as an after thought. • Customer Service Interface The Government has introduced a number of initiatives aimed at encouraging the modernisation and improvement of local authorities’ customer focus: for example:  Strong Local leadership – Quality Public Services;  Local Public Service Agreements;  Strategic Service Delivery Partnerships;  Capacity Building. Each of these initiatives has implications for property assets and which need to be incorporated in the Council’s asset management plan. • Budget Pressures Local government services have to be provided within a constrained financial regime: there are wide competing demands on public expenditure, apart from the funding requirements of local -4 -
    • government. Secondly, there are pressures to minimise council tax increases. This places demands for taking a strategic view in prioritising service ambitions and upon finding new and better ways in which to deliver local authority services. For example, potentially unwise expedients of short term cost minimisation (e.g. reduction of property asset maintenance budgets) that may otherwise appear attractive need to be balanced by concern for long term strategic responsibilities (e.g. risk of increase in backlog maintenance and overall depreciation of property assets). • Gershon Review This was commissioned to consider scope for efficiency savings across all public expenditure and to consider proposals to deliver efficiencies and more general changes which could be made to the framework within which the public sector operates to improve efficiencies. Efficiency savings targets of 2.5% in local government are expected. The Review draws attention to a number of strands of which two have significant implications for local authority property assets and how they are managed:  Potential for savings in “Back Office” activities and which provide support to the delivery of frontline services; and  Scope for savings through better procurement and partnership working. • Prudential Code The Government introduced a new system for the management of capital finance in local government in 2004/05. This requires local authorities to ensure their financial strategies provide for capital and revenue expenditure which is prudent, affordable and sustainable. In doing so, local authorities are required to have regard to the proper stewardship of their assets and for which asset management planning provides a structured approach. • Comprehensive Performance Assessment (CPA) The CPA process, undertaken by the Audit Commission, involves regular review of how well local authorities are delivering their services and how well councils are run. How well the management of property assets are linked into corporate and service strategic management and how well asset management is supported by appropriate systems, processes and practices continue to be an important issue in CPA inspections. -5 -
    • • Asset Management in Local Government – Guidelines Published by the Royal Institution of Chartered Surveyors These Guidelines, commissioned by the then Office of the Deputy Prime Minister (ODPM), aim to assist and support the continued development of asset management in local government. These Guidelines now seek to foster a greater emphasis on achievements, in terms of outputs (e.g. improved property assets) and outcomes (e.g. better achievement of corporate objectives and more efficient and effective services to the public resulting from improved property assets). Asset management and its planning need to involve the whole local authority organisation: it is not just something for property managers. The Guidelines therefore are aimed at the range of elected members, officers and others who need to be involved in asset management and its planning at various stages, whether with particular interest in the areas of:  corporate;  service;  partnership; or  property. • Audit Commission’s Feedback The Audit Commission has provided feedback on their key line of inquiry for use of resources into the Council’s financial and asset management. This feedback will be used to improve the way in which the Council manages its asset base in accordance with the report responding to the issues raised by the Senior Management Group. 6. The Objectives of Asset Management 6.1 Through good asset management, the District Council will continue to target the following outcomes: a. Customer and Stakeholder Satisfaction  Property meeting current and future Council needs i.e. enhanced customer satisfaction from improved performance and control of service delivery to the required standards; -6 -
    •  Stakeholder satisfaction i.e. improved corporate image, relevant in both how the public view the Council and value and rank their services and purposes, as well as in staff morale and performance; b. Affordability i.e. clear processes for assessing prudence, affordability and sustainability including:  effective use of capital for new projects;  capital release and redeployment;  efficient and effective property running costs:  ensuring Members are aware of the level of backlog maintenance and work to an approved plan so that the matter may be addressed; and  ensuring the Council makes investment and disposal decisions on thorough option appraisal and whole life costing methodology. c. Compliance with Statutory/Regulatory Codes i.e. health & safety, fire, asbestos, legionella, office accommodation space and suitability standards; d. Improved Corporate Management, i.e. for CPA and other purposes, with the ability to demonstrate clear linking between corporate and service goals and objectives on the one hand and the management of assets crucial to their delivery on the other; e. Environmental Property Issues i.e. sustainability, CO2 emissions and carbon reduction, water saving measures, green energy procurement, energy monitoring and targeting etc. f. Improved performance measures and benchmarking to describe and evaluate how the Council’s asset base contributes to the achievement of corporate and service objectives including improvement priorities. Also to ensure that the results of performance measurement and benchmarking are communicated to stakeholders where relevant. g. Developing an approach for the co-ordination of asset management information and its integration with relevant organisational financial information i.e. asset register, corporate valuation work etc. -7 -
    • 7. The Corporate Property Strategy 7.1 The Council needs a Property Strategy to co-ordinate and implement decisions which have property implications. The Property Strategy fits into the Corporate Framework as illustrated in Diagram 1. Without an adopted Property Strategy, the Council cannot effectively plan, and provide and manage its property resource to support corporate aims and objectives nor implement the AMP properly. 7.2 The Property Strategy contains the broad strategic statements to enable decision-making about individual properties. It includes guidelines about property review, geared to improving performance. The strategy also incorporates Best Value standards regarding service delivery. Implementing the Property Strategy will assist in achieving the service delivery priorities of the Community Plan. 7.3 The Corporate Property Strategy is attached as Appendix A to this report. 7.4 The 2007 Asset Management Plan has been updated to take account of these changes and is enclosed as Appendix B to this report. 8. The Corporate Maintenance Strategy 8.1 The District Council is a significant property owner, with assets valued in excess of £21 million. There is a need for the Council to think strategically about its property holding to ensure its property portfolio maintains value and helps to meet the Council’s aims and objectives. 8.2 The Corporate Asset Management Plan and Property Strategy make an explicit and direct link between the Council’s aims and asset management planning. These documents provide the framework for the Corporate Maintenance Strategy and the inter-relationship is described in the Asset Management Plan. 8.3 The Corporate Maintenance Strategy is attached as Appendix C. -8 -