(Attachment: 4)Asset Management Plan


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(Attachment: 4)Asset Management Plan

  1. 1. Report Contents 1 Introduction 2 Government Policy and Statutory Requirements 3 The Council’s Strategic, Financial and Asset Management Planning Framework 4 The Council’s Corporate Asset Management Policy 5 Corporate Organisational Arrangements 6 Service Delivery and Property and Accommodation Developments 7 The Council’s Capital Programme 8 The Council’s Maintenance and Repairs Arrangements 9 The Corporate Facilities and Asset Management Information Systems 10 The Council’s Portfolio of Land and Property. 11 Corporate Arrangements for the Ongoing Review of Land and Property Requirements 12 Performance Monitoring and Measurement. 13 2008/09 Asset Management Planning and Delivery Priorities 14 Appendices Asset Management Plan 0708 Page 1
  2. 2. 1. Introduction 1.1. Asset management and its planning forms an integral part of the Council’s business management arrangements and is crucial to the delivery of efficient and effective services. 1.2. This Asset Management Plan sets out the medium/long term land, property and accommodation strategies that have been drawn up in support of the Council’s existing strategic priorities and key objectives and other potential service developments. 1.3. The plan covers all Council land and property assets, with the exception of Schools, housing stock and the transportation infrastructure, all of which have their own asset management planning frameworks and processes 1.4. The plan is closely integrated with corporate and service directorate plans and with the planning of other resources – i.e. finance, human resources and ICT 1.5. The Council’s asset management policy is set out within the plan and a description of the organisational arrangements for implementing and developing the policy is also included. 1.6. The plan provides detailed information about the Council’s existing asset base and a range of performance measures and indicators that are intended to inform future decisions about the suitability, sufficiency, and sustainability of the Council’s land and property resources 1.7. The plan also includes an update on the ongoing review and development of the Council’s computerised land and property data management systems Asset Management Plan 0708 Page 2
  3. 3. 2. Government Policy and Statutory Requirements 2.1. The Government’s White Paper ‘Strong and Prosperous Communities’ issued in October 2007 identified the importance of asset management in helping local authorities improve the delivery of their services 2.2. The Department for Communities and Local Government’s framework for Local Authority Asset Management ‘Building on Strong Foundations’, which was published in February 2008, draws attention to the major role that effective asset management plays in delivering better outcomes for citizens, creating a sense of place and generating efficiency gains. It also emphasises strongly that ‘asset management should underpin, and contribute to delivery of the local vision and priorities as set out in the Sustainable Community Strategy, the Local Area Agreement and the Local Development Framework’. 2.3. The framework also highlights the important contribution that local authorities can make to the Government’s Sustainable Development Strategy through good asset management; the promotion of high quality design and construction to reduce waste and improve resource efficiency, and by promoting more sustainable buildings. 2.4. In May 2007 the Quirk Review of community management and ownership of assets, Making Assets Work was published by the Department for Communities and Local Government, and its recommendations were accepted by the Government. The report puts forwards the proposition that the transfer of public assets to community management and ownership at less than best consideration is a legitimate and potentially beneficial option that should be considered by local authorities and other public sector bodies as part of a strategic approach to asset management. The report contends that where the benefits can be shown to outweigh the costs, there is no substantive impediment to such asset transfer. 2.5. The “Best Value” provisions of the Local Government Act 1999 require 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. The expectation is that land and property assets should be an intrinsic part of such reviews, along with all other resources i.e. personnel, finance, ICT. 2.6. The Government’ Comprehensive Spending Review (CSR) which outlined government spending plans for the three period 2008/09 – 2010/11 requires local authorities to deliver an efficiency saving of 3% in each of the next three financial years. The CSR Value for Money Delivery Plan recognises that good asset management can produce significant cash savings through reductions in operating costs, asset disposals and asset sharing 2.7. The Comprehensive Performance Assessment (CPA) framework used by the Audit Commission to regularly review how well local authorities are managed and how well they are delivering their services focuses attention on the importance of establishing clear links between corporate and service strategic aims and objectives and asset management plans Asset Management Plan 0708 Page 3
  4. 4. 2.8. The CPA is due to be replaced by a different assessment framework in 2009, known as the Comprehensive Area Assessment (CAA). The Audit Commission’s recent consultation document on the revised arrangements has highlighted the increased importance being attached to data quality and asset management as a means of achieving improved services and efficiencies. Whilst each of these already feature in the ‘use of resources’ key lines of enquiry within the CPA framework, the Audit Commission has indicated its intention to strengthen the criteria being used to determine a Council’s level of performance in these areas. 2.9. The “Prudential Code” introduced by the Government in 2004/05 requires local authorities to have regard to the proper stewardship of their assets and ensure that their financial strategies provide for capital and revenue expenditure that is prudent, affordable and sustainable. The delivery of this agenda is heavily dependent on a co-ordinated and structured approach to asset management and capital planning. The code also endorses the use of project appraisal techniques as a mechanism for allocating capital resources 2.10. There are a number of other developments taking place within service directorates, in response to government initiatives and policies which have significant asset management implications (i.e. The Building Schools for the Future (BSF) agenda; the creation of a Children and Young Peoples Trust; the redevelopment of Shirley and Chelmsley Wood town centres, the regeneration of the north of the borough and the emerging plans for Solihull town centre). 2.11. All service directorates’ within the Council are also required to comply with a variety of statutory regulations and other regulatory requirements (i.e. Health and Safety, Disability Discrimination Access, Race Equality, Control of Asbestos at Work and Water Hygiene Regulations; Display Energy Certificates requirements) Asset Management Plan 0708 Page 4
  5. 5. 3. The Council’s Strategic, Financial and Asset Management Planning Framework 3.1. ’One Borough: An Equal Chance for All’, the Sustainable Community Strategy for Solihull 2008-2018 has been prepared in consultation with the groups, organisations and individuals making up the Solihull Partnership. 3.2. The aims and aspirations outlined in the Sustainable Community Strategy shape and determine the scope of the Council Plan and key partnership strategies. 3.3. The Council Plan sits at the top of the Council’s strategic planning and performance management systems. It ensures that the whole Council takes co-ordinated action to deliver the Council’s Vision and the associated key customer outcomes and priorities 3.4. The plan sits alongside the three year Budget Strategy and above the Annual Budget Plan and Council Results, which together provide detailed information about the cost and effectiveness of the services delivered by the Council. 3.5. The above strategies and plans, which can be found on the Council’s web site at www.solihull.gov.uk, provide the framework within which members and officers make decisions about the acquisition, disposal, retention, and/or future use of land and property assets and are the main determinants of the Council’s Combined Annual Capital Strategy and Corporate Asset Management Plan. Asset Management Plan 0708 Page 5
  6. 6. 4. The Council’s Corporate Asset Management Policy 4.1. The overall aims and objectives are:  To implement, develop and regularly review the necessary processes, programmes and plans required to deliver the Council’s Corporate and Service Directorates’ asset management and planning arrangements  To ensure that the council’s asset management and planning arrangements are integrated with its revenue and capital planning and accounting arrangements and that the value of all land and property assets are calculated on an appropriate basis and recorded in the Council’s accounts  To encourage the development of a more corporate and strategic view of the capital programme and the use of property assets and provide the basis for greater cross- cutting working and cross-service capital projects  To provide the right facilities, at the right time, in the right place and at the right cost in support of the Council’s strategic, corporate and services goals and objectives, through the development of a medium/long term accommodation/property strategy that is integrated with the Council’s medium term service and financial plans  To maintain and develop a corporate property database which can accessed by all relevant staff, so that decisions regarding the use, maintenance and retention and disposal of property are based on accurate and up-to-date information  To develop a ‘whole-life costing’ approach to the procurement and management of assets  To optimise the value of the Council’s land and property portfolio through proactive estate management and effective corporate arrangements for the acquisition and disposal of land and property assets  To promote the provision of energy efficient buildings  To promote social inclusion by ensuring that all Council buildings are accessible to all sections of the community, in accordance with the requirements of the 1995 Disability Discrimination Act  To ensure compliance with other statutory and regulatory codes i.e. Health and Safety, Asbestos and Water Hygiene and accommodation minimum space standards 4.2. The aims and objectives with regard to specific types of land and property assets are:  To optimise the investment in operational properties by ensuring that key locations are developed in line with the Council’s ‘One Front Line/Working Smarter’ customer service strategy and the e-government agenda  To ensure that operational properties are fit for purpose and are in the correct location and offer a safe and secure environment for staff and service users Asset Management Plan 0708 Page 6
  7. 7.  To regularly consult with key internal and external stakeholders over the implications that changes in service delivery arrangements and working practices may have for future operational property requirements  To ensure that all operational properties are regularly surveyed and maintained in the most cost effective manner  To share facilities with public sector partners wherever possible in order to make the most efficient and effective use of these assets and to achieve better value for money  To assist the delivery of the ‘Sustainable Community Strategy for Solihull’ and the Solihull Local Development Framework Plan through the acquisition, disposal and development and management of land and property and to maximise the financial returns to the Council.  To ensure wherever possible that the business and commercial activities carried out in the Council owned small business units and shop premises and other non- operational properties contribute to and support the economic and social policy aspirations within the Sustainable Community Strategy.  To generate capital receipts from the development land release programmes for residential and commercial schemes.  In the case of the disposal of land to registered social landlords to consider discounted land values in return for nomination rights for individuals on the Council’s Housing Waiting List  To realise the value of any properties that have been declared surplus to requirements as quickly as possible  To protect the Council’s long term interests by disposing of Council owned land and property, where appropriate, by means of a lease with covenants restricting the future use and development of the sites involved. Asset Management Plan 0708 Page 7
  8. 8. 5. Corporate Organisational Arrangements 5.1. The Strategic Investment and Property Division within the Resources Directorate has the prime responsibility for the development and delivery of the Council’s capital strategy and asset management arrangements. The Division also provides a range of land and property management, building design and property maintenance and other facilities services on behalf of the Council. Full details of the range of services involved and the contribution they make to the achievement of the Council’s Vision and associated key customer outcomes and priorities are shown in the Division’s 2008/09 Performance Plan, which is available on the Council’s web site at: http://solnet/performance/perfplans 5.2. A Corporate Asset Management Group (AMG), made up of senior managers in the Strategic Investment and Property Division and other Council Directorates is responsible for regularly reviewing and updating the Corporate Capital Strategy and Asset Management Plan and developing a more corporate approach to the Council’s asset management planning arrangements. The current members of the AMG are: • Service Director, Strategic Investment and Property (Chairman) • Head of Facilities and Asset Management • Strategic Land Advisor/Corporate Property Officer • Corporate Land and Property Manager • Corporate Property Services Manager • Financial Strategy Manager • Nominated representatives from Service Directorates 5.3. The AMG is responsible for:  The strategic management of the Council’s land and property assets  Ensuring that the corporate capital strategy and asset management plan is updated and progressed, in line with government guidance, and the Council’s strategic priorities and key objectives  Developing and refining the Council’s corporate capital budget allocation processes and systems and making recommendations to the Corporate Management Team (CMT) and members on the projects and schemes put forward by Service Directorates for consideration within the Council’s annual capital appraisal system  Developing corporate property strategies for consideration by the CMT and members.  Receiving reports and making recommendations on proposals for the acquisition and disposal of Council land and property  Regularly monitoring and analysing a range of land and property performance indicators  Making recommendations to officers and members about the suitability, sufficiency, and sustainability of the Council’s land and property resources.  Overseeing the ongoing development and refinement of the corporate facilities and asset management computerised data systems Asset Management Plan 0708 Page 8
  9. 9.  Ensuring that all Directorates adopt a consistent approach to the delivery of facilities and asset management services and that they comply with any Health and Safety or other statutory/regulatory requirements relating to the management of buildings and/ or the delivery of services  Receiving regular progress update reports on facilities and asset management developments and/or works arising from Best Value and other service reviews  Identifying changing asset requirements resulting from national strategies, new legislation and guidance, demographic changes and raised levels of expectation amongst stakeholders, etc. 5.4. The AMG reports directly to the Council’s Corporate Management Team (CMT) on any major operational and/or financial issues arising from the Corporate Capital Strategy and Asset Management Plan. Regular reports are also presented to the Cabinet Member for Resources and the Cabinet member for Regeneration and Community Development on a range of asset management and property issues. The AMG’s recommendations relating to the annual allocation of the Council’s ‘Single Capital Pot’ budget are also submitted to the Cabinet for approval Asset Management Plan 0708 Page 9
  10. 10. 6. Service Delivery and Property and Accommodation Developments 6.1. Organisational Changes and Developments  Many of the aims and objectives and future plans and targets set out in the Council’s Sustainable Community Strategy and Council Plan have significant medium and long term implications for the provision of accommodation and property  The key initiatives and developments that are currently being progressed are:  The continuing delivery of the Council’s One Front Line/Working Smarter initiative.  The development of the Solihull Partnership and the Council’s Place Shaping and Community leadership agenda  The delivery and development of the Children and Young Peoples Plan  The joint delivery and integration of social care and primary care services through the Solihull Care Trust.  The implementation of the North Solihull Regeneration master plan in conjunction with the ‘ In Partnership’ consortium team  The implementation of the ‘Building Schools for the Future’ (BSF) strategy  The redevelopment of Chelmsley Wood Town Centre  The development of new town centres at Shirley and Dickens Heath  The Solihull Local Development Scheme and the Area Action Plan for the Solihull Town Centre 6.2. Corporate Accommodation Strategy  The main accommodation plans and strategies that have been progressed over the last twelve months in support of the above initiatives and developments and other Council priorities are: • Various staff groups have been relocated within existing office accommodation at the Council House and other Council premises in response to Directorates changed service delivery arrangements and/or organisational restructures. • The possibility of locating the Solihull Partnership Team and the Shaping Solihull Project Office at the Council House is currently being explored • As part of the first stage of the redevelopment of the Chelmsley Wood Town Centre, Solihull Community Housing (SCH) and Solihull Connect staff based in the SCH Area Housing Office were transferred to a temporary location within the town centre in July 2007 and will remain there for the duration of the town centre redevelopment. • In the Autumn of 2007 the North Solihull Citizens Advice Bureau moved to refurbished office accommodation provided by the Council in Chelmsley Wood. • Detailed discussions are currently taking place between officers in the Resources and Customer Services Directorates and SCH regarding the agreed transfer of the SCH and the Council’s Contact Centre from the Birmingham Business Park to new Asset Management Plan 0708 Page 10
  11. 11. office accommodation in the redeveloped Chelmsley Wood town centre in the Autumn of 2009. • Ongoing discussions are taking place with the Education and Childrens Service Management Team regarding the Directorate’s medium and longer term accommodation requirements in the north of the borough, in anticipation of increased multidisciplinary working and changes in service delivery arrangements arising from the implementation of the Children and Young Peoples Plan (i.e. the location of staff in extended schools and village centres and a North Solihull headquarters building) • The Childrens Services teams currently located in the Chelmsley Wood Library building will transfer to new office accommodation in the redeveloped Chelmsley Wood town centre in the Autumn of 2009 • Facilities managers at the Council and the Care Trust regularly liaise over the lease and licence arrangements that have been entered into to provide office and operational facilities for Adult Social Services staff at the Council House and other Council owned premises. Ongoing discussions are also taking place regarding the Council’s and Care Trust’s shared use of the Council owned training facilities on Lode Lane. • A detailed audit of the space utilisation at the Council House, the former Council House in Poplar Road and Keepers Lodge has been carried out in order to ensure that a consistent approach is adopted to the allocation of office space and to produce benchmark information for comparison with other local authorities, as part of the Institute of Public Finance’s National Property Performance Management Initiative. • The Council continues to actively encourage home working as a means of reducing pressure on office accommodation and overheads. An increasing number of Directorates are also introducing ‘Hot Desking’ in order to maximise the utilisation of workstations and general office space 6.3. Education and Childrens Services Asset Management Arrangements  The Schools Asset Management and Capital strategy has been developed with regard to the key customer outcomes and priorities within the Council Plan and within the context of the Council’s Corporate Strategy Map and balanced scorecard performance management approach which, together, highlight the important links between educational attainment and the physical school environment.  The School Asset Support Team within the ECS Quality Division continue to maintain and develop close relationships with schools in order to gain a clear and comprehensive understanding of local needs; deliver agreed capital projects, and to help schools improve the planning and co-ordination of school asset management. Consultation with schools on strategy and planning continues through the Schools Forum and various sub groups  A detailed report on progress with the implementation of the Education Asset Management Plan and Capital Strategy was presented to the Cabinet Member for Education, Children and Young People in November 2007.  The report stressed that fitness for purpose, as determined by regular condition, suitability and sufficiency surveys of the school estate, should be the prime determinant of the next three-year rolling programme of capital investment in the modernisation of primary and secondary schools. Accordingly, it was confirmed that an independent Asset Management Plan 0708 Page 11
  12. 12. support services organisation had been commissioned to undertake a suitability survey of all primary schools outside of the northern regeneration zone and the findings and proposed programme of required works would be presented to the Schools Forum and Primary Schools Partnership for endorsement before being presented to the Cabinet Member for Education, Children and Young People.  It was further noted in the above report that similar surveys will be undertaken in the future at secondary and special schools to help inform BSF priorities  The key developments with the Education and Asset Management Plan and Capital Strategy in the last 12 months and the main plans and proposals for the next twelve months are: General School and Other Capital Programmes 2007/08 • The ‘Strategy for Change’ document submitted to the DCSF, as part of the Primary Capital Programme (PCP) initiative, was recognised as ‘a solid and sensible strategy that is clearly evidenced with planning and prioritisation already well advanced”. • The PCP project implementation plan has been approved by the DMT and a PCP Work Group has been formed. • All primary schools outside of the Regeneration programme have been reassessed in terms of suitability/fitness for purpose • Phase 2 of the £1.7m Childrens Centres Programme is virtually complete. • Learning and Skills Council(LSC) capital funding secured for a new £4m 16 -19 vocational training sixth-form facility at Arden School - a first for the West Midlands • E&CS Design Framework agreements entered into with three external organisations for a range of architectural design; project management and quantity surveying services for a period of four years 2008/09 • £6 million new teaching block at Light Hall School due to be completed. • Phase 2 (£2.5m) of the Primary Schools Modernisation Programme on target for completion in October 2008. • Department of Schools, Children and Families(DCSF) approval of Primary Strategy for Change document required to secure £8m of additional capital funding for 2009/11 • An outline schedule of PCP school projects to be prepared for 2009/11 • Outline proposals to be drawn up for Phase 3 of the Childrens Centres Programme and Extended Services and Early Years capital developments, totalling approximately £4m, for the 2008/11 period • All secondary schools outside of the BSF programme to be reassessed in terms of suitability/fitness for purpose • Consultation to take place with schools to address building maintenance backlog • LSC funded project at Arden School expected to be 70% complete by end of year • £1m new Art & Design Hub at Lyndon School due to be completed by the end of the year Building Schools for the Future & North Solihull Regeneration Developments 2008/09 Asset Management Plan 0708 Page 12
  13. 13. • Phase 1 of Smith’s Wood School was completed and handed over on 31st March 2008. Phase 2 is due to be completed by 1st September 2008. • The three remaining schools in the first phase of the programme are due to be completed as follows: o Lanchester Special School - July 2008 o Park Hall Secondary School - October 2008 o Archbishop Grimshaw – Secondary School - October 2008 • Consultation is underway for the next national roll out of the BSF programme. Detailed work and discussions are currently taking place to ensure that the Council is in a strong position to respond effectively to secure the next tranche of BSF funding • Kingfisher Primary School, the second new primary school to be constructed as part of the north Solihull regeneration programme, is due to be completed towards the end of 2008. 6.4. Other Initiatives and Developments  The Council is also currently involved in a number of initiatives and developments to maintain and/or improve existing assets or to provide new facilities in response to changing service needs and/or working relationships with other public and private sector organisations, namely:  In the early part of 2008 work was completed on the new sports and leisure facilities on the Tudor Grange site in the south of the borough, as part of the Leisure Public Private Partnership ‘design, build and operating’ contract that the Council entered into with Rivendell Leisure in May 2006. A major refurbishment of the North Solihull Sports Centre was completed in 2007.  The Corporate Property Services Team’s (PST) building services partnership contract, which includes planned and reactive maintenance works and minor building projects, was awarded to the existing partner Ian William PLC from April 2007 for a period of seven years, and an option to extend for a further three years  A new mechanical and electrical services partnering arrangement was also entered into with the Dodd Group Ltd for a period of seven years, with an option to extend for a further three years, with effect from May 2007.  Both partnering arrangements have already produced significant cost savings and enabled the PST to provide an enhanced and more responsive building and electrical and mechanical maintenance and repairs service The PST and Building Design Team and the two external partners are currently working closely ECS School Asset Support Team to deliver a major refurbishment project through the partnering framework at Light Hall school..  The Landlord maintenance works required at the Adult Care Services properties that have been transferred to the Care Trust, as referred to in Section 6.2 above, have been carried out in accordance with the detailed service level agreement entered into between the PST and the Solihull Care Trust • Progression of the Chelmsley Wood town centre redevelopment scheme which started on site in February 2007 and is due to be completed in the summer of 2009. • The Council has agreed with its private sector partner the commencement of construction of the final phase of the development scheme for Dickens Heath Village Asset Management Plan 0708 Page 13
  14. 14. Centre. • The Council has agreed to seek a compulsory purchase order to assist its development partner in the redevelopment scheme for Shirley Town Centre following the grant of planning approval. • In accordance with a co-operation agreement with the joint land owners of the site the Council has agreed financial terms for the redevelopment of the Mell Square shopping area. This major investment project includes consideration of whole life cycle costing of a range of Council assets including the replacement of multi storey car parks. • The Council has completed the transfer of the land to its development partner required to deliver phase 2 Blythe Valley Business Park. 7. The Council’s Capital Programme 7.1. The Resources Directorate is responsible for the overall co-ordination and regular monitoring of the Council’s capital programme. Service Directorates have delegated responsibility for allocating the majority of the available funds in accordance with the Council’s key strategic aims and objectives. 7.2. All approved projects within the capital programme have a nominated senior officer responsible for monitoring the project and ensuring the agreed outcomes are delivered. 7.3. Reporting is required at agreed stages including completion of critical stages, completion of the project and post implementation review. The purpose of the reports is to ensure that the costs and anticipated completion dates of individual projects are constantly monitored and reviewed, as necessary, in response to changing circumstances and/or needs. 7.4. Capital expenditure monitoring reports are presented to Service Directorates’ management team meetings on a monthly basis from the start of the second quarter of the financial year. 7.5. At the end of each quarter of the financial year the Council’s overall capital expenditure position is reported to the CMT. A further report on capital monitoring is presented quarterly to the relevant Cabinet Portfolios. The annual out-turn against the corporate capital budget is reported to the Cabinet as part of the Final Accounts Report. 7.6. The capital programme is sub divided into three parts, based on the source of funding involved, namely:  Self funded schemes (i.e. financed from supplementary credit approvals, revenue contributions, specific grants and contributions)  Corporately funded schemes  Ring fenced Housing Revenue Account (HRA) schemes 7.7. Each year Service Directorates are invited to submit innovative, cross cutting, capital projects that will contribute to the objectives set out in the Council plan, which are then evaluated in a ‘Single Capital Pot’ project appraisal system that has been approved by the Cabinet. The approved 2008/09 budget allocation under this heading is £1m, although only £708k is available for distribution, as the Cabinet has already given approval in advance in 2007/08 to an allocation of £292k for a project at the Chelmsley Wood Library. Asset Management Plan 0708 Page 14
  15. 15. 7.8. Essentially, the capital project appraisal system and scoring mechanism has remained unchanged since its original inception. However, in order to bring the system into line with the Council’s revised performance planning framework the following key changes to the appraisal system and scoring mechanism have been introduced in 2008/09: o All of the schemes submitted for project appraisal need to be fully supported by the appropriate Directorate Management Team (DMT) and relevant Cabinet Member and Opposition Spokespersons. o All schemes still need to be jointly scored by the Project Officer and an independent officer. The scoring now relates to the rationales within the Council’s Strategy Map rather than the Community themes, as in the past. The scoring is primarily based on what our customers are looking to us to achieve in order to provide “a place where well being pride and quality of life is enjoyed by all”. o This scoring system is used to evaluate projects against each of the following key customer outcomes that underpin the Council Strategy Map.  A brighter future for our children and young people  A sustainable improved quality of life  Closing the Gap of Equality  To be treated as an individual  Good Value Services o In order to ensure fairness and consistency the Asset Management Group (AMG) uses the project appraisal system to evaluate and score the submissions before they are forwarded for consideration and approval by the CMT and then onto the Council Cabinet for formal approval. 7.9. In 2008/09 bids totalling £640k were submitted by Service Directorates. Following the evaluation process outlined above the Cabinet was asked to approve the allocations listed below. Proposed 2008/09 2009/10 Project Allocation Allocation Allocation (£m) (£m) (£m) Flexible Learning and Meeting Room Suite at the Central Library 0.133 0.133 Youth Service – Rural Mobile 0.040 0.040 Project Multi Purpose Pavilion – Tudor 0.061 0.061 Grange Solihull Wireless Community Project 0.055 0.055 Solar Panels - Central Library 0.029 0.029 Solar Panels - Tower Blocks 0.240 0.120 0.120 Corporate Information Archival 0.010 0.010 Storage/Retrieval facility Purnells Brook 0.050 0.050 Total Allocation 0.618 0.498 0.120 NB. In addition to the above the sum of £0.022M was allocated to two Adult Social Care projects which will be funded from uncommitted supported capital borrowing allocations as approved by the Council Cabinet in March 2008. Asset Management Plan 0708 Page 15
  16. 16. 7.10. In October 2007 and March 2008 the Cabinet received detailed monitoring reports on the progress of all capital projects approved in previous financial years under the capital project appraisal system. The Cabinet will continue to be presented with regular progress monitoring reports on these schemes 7.11. The Local Government Act 2003 gives Councils the ability to take on additional borrowing that is not supported by Central Government Revenue Support Grant. All Council’s have to decide how much they can prudently borrow in line with the Prudential Code that has been developed by the Chartered Institute of Public Finance and Accountancy (CIPFA). Essentially, the code requires Councils to demonstrate that any additional borrowing is prudent, affordable and sustainable. This is evidenced by a number of mandatory ‘Prudential Indicators’, as set out in Appendix 1, which are set, managed and monitored and reported on during each year to Cabinet and Full Council. Any prudential borrowing is conditional upon it being within the limits approved by Council. A financial assessment framework was developed and approved by Cabinet in July 2007 which contains specific tests and strategic safeguards to enable formal business cases for individual projects to be considered and approved by Full Cabinet in consultation with Opposition spokespersons. This enables Members to make local decisions on the allocation of funding sourced from prudential borrowing. In summary, the framework provides £85m of capital funding over a ten year period, with a maximum call down in any one year of 20%, to support spend to save projects which meet the minimum financial criteria agreed when the framework was established. In May 2008 the Cabinet agreed that all future requests for funding through the framework should be considered in detail by the soon to be established Investment Board before being presented to the Cabinet for approval. 7.12. Revised corporate capital programme monitoring arrangements, based on SPICE project management principles, were developed by the AMG and approved by the CMT in 2005/06. From 2006/07 all applications for capital funding over £100k have needed to be made on a standard form which sets out the key milestones and/or trigger dates for each project. This information is used by the Financial Strategy Team in conjunction with budget holders to produce quarterly capital monitoring reports for the CMT and Members on progress with the Council’s key capital projects. These arrangements will continue in 2008/09. 7.13. The total spending on the capital programme, including the Housing Revenue Account (HRA), for 2007/08 was £80.675m compared with an approved budget of £82.425m, a variance of £1.750m (2.1%). The full capital programme is set out below: SUMMARY OF CAPITAL SPENDING COMPARED WITH THE PROGRAMME 2007/2008 Detailed Analysis Cabinet Capital Expenditure Variance Rephasing Overspend Self funded Programme Funded by Released Services & Other £000's £000's £000's £000's £000's £000's Education Children & Young 34,262 34,161 -101 -111 26 -16 People Health, Social 348 323 -25 -25 0 0 Care and Asset Management Plan 0708 Page 16
  17. 17. Partnerships Economic Development and 7,995 8,695 700 -41 741 0 Regeneration Quality of Life and 3,222 3,441 219 219 0 0 Neighbourhoods Community Services and the 782 399 -383 -383 0 0 Environment Resources 7,570 6,903 -667 -667 0 0 Transport & 5,725 5,622 -103 -95 1 -9 Highways TOTAL GENERAL 59,904 59,544 -360 -1,103 768 -25 FUND HOUSING REVENUE 22,521 21,131 -1,390 -1,246 479 -623 ACCOUNT GRAND TOTAL 82,425 80,675 -1,750 -2,349 1,247 -648 7.14. The approved corporately funded base capital programme for 2008/09 is £25.979m and the proposed self funded programme for 2008/09 is £34.784m. These budget allocations will be revised to £26.939m for the corporately funded base capital programme and £34.927m for the self funded programme following the approval of the carry forward of the above £1.103m re-phasing of 2007/08 schemes. 7.15. The funding of the 2008/09 planned corporate programme is largely dependent on the anticipated usable capital receipts target being achieved. If there is a short fall in the actual receipts received it will be necessary to review all projects and reprioritise funding to ensure that expenditure does not exceed available resources within the financial year. Asset Management Plan 0708 Page 17
  18. 18. 8. The Council’s Maintenance and Repairs Arrangements 8.1. Corporate Arrangements The Property Services Team (PST) administers all of the Council’s repairs and maintenance works including day to day repairs and servicing, capital refurbishment and all ‘Landlord’ repairs and maintenance works required in all corporate properties and schools. 8.2. Maintenance and Repairs Services for Schools In accordance with the DCSF’s initiative on Fair Funding for Schools the Council has continued to make funds available to the Head Teachers of all junior and secondary schools in the Borough to enable them to make their own repairs and maintenance arrangements. At the start of 2007/08 90% of the schools had continued to opt to purchase all of the maintenance and repairs service packages on offer from the PST All schools have continued to take advantage of the services offered in Package 1 which include works that need to be carried out to meet legislative and regulatory requirements (i.e. Asbestos management and Water Hygiene monitoring arrangements). The remaining packages cover day to day reactive type maintenance and minor project work. The PST also undertakes other capital works, which are funded directly by the Council on behalf of schools, such as electrical refurbishment works, boiler replacements and re-roofing etc. The Property Services Manager reports to the Finance Working Group of the Schools Forum every six months on progress with the repairs and maintenance works undertaken on behalf of the schools. The maintenance and repairs arrangements for School’s were reviewed again in 2007/08 and the Property Services Team presented an end of year progress report to the Schools Forum (Finance Work Group) in April 2008, which was very well received. The main points to note from the report are: • For the fourth year in succession packages have been offered and accepted at the previous year’s prices plus inflation. All schools have continued with the arrangements they originally signed up for in 2005. • The partnering arrangements with the Dodds Group and Ian Williams PLC have again resulted in a reduction of costs which have been shared with schools in the form of additional works being carried out within Package 1 (e.g. Servicing and repairs to fire fighting equipment and kitchen catering equipment) • The Schools Focus Group that was set up in 2005/06 to help schools gain a better understanding of the various maintenance and repairs packages and to facilitate closer working between the PST and Schools has continued to meet on a regular basis. One of the main achievements of the group in 2006/07 was the production of a Maintenance and Repairs Service Level Agreement for Schools, which was issued in October 2006. Asset Management Plan 0708 Page 18
  19. 19. • The Corporate Property Services Manager has been participating in a Task & Finish group set up by the Schools Forum Finance Work Group (FWG) to review the funding arrangements for maintenance works in community schools. The FWG have approved the report produced by the Task & Finish group which proposes a number of options for organising and funding schools building maintenance works. A consultation process is currently underway to determine the schools preferred option(s), with a view to introducing the new arrangements in 2009/10. 8.3. Legislative and Regulatory Requirements  Health and Safety Testing All items of work which include lift servicing, fire alarm maintenance, gas and electrical maintenance are incorporated into the council cyclical maintenance programme and all equipment is maintained and tested in accordance with the relevant legislation. The Council works closely with its insurers Zurich, who carry out statutory inspections on our behalf on items of plant such as lifts and pressure vessels. Written schemes are in place where required and maintenance work completed when identified.  Gas Servicing and Electrical Tests All gas appliances are serviced and maintained as part of the Council's cyclical maintenance programme and in accordance with the gas regulations. A major programme of works is underway to replace all underground gas services by 2010. The Council has a strategy for the electrical testing of a property’s infrastructure, which cover corporate properties and schools. In accordance with recommended guidance a five-year rolling programme of testing and repairs works is in place. Any electrical repair works required at schools resulting from the testing programme are carried out as part of the PST’s maintenance and repairs Package 1 referred to above.  Water Hygiene In September 2004 the Council entered into a comprehensive contract with an external company covering all aspects of water hygiene, to ensure that the all Council properties comply with the ‘Control of Legionellosis Bacteria in Water Systems’ legislative requirements All properties, including schools, are included in the corporate contract. All sites are monitored on a monthly basis and any necessary remedial works are carried out as part of the contract. A rolling programme of risk assessment reviews and any necessary improvement works are carried out every 2 years. Details of inspections and any works carried out are recorded in logbooks kept at each site. A detailed report on the current arrangements for monitoring and managing the Council’s water supply arrangements and an updated version of the Council’s Water Hygiene policy were endorsed by the Cabinet Member for Resources in October 2007. An audit of the above policy and monitoring and management arrangements carried out by the Solihull Care Trust, following the publication in April 2007 of the Health and Safety Executive’s findings from its investigation into a major legionella outbreak at Barrow-in-Furness Local Authority in August 2002, confirmed that processes and procedures in place exceed the HSE’s requirements.  Disability Discrimination Act Asset Management Plan 0708 Page 19
  20. 20. On 1st October 2004 Part III of the Disability Discrimination Act 1995 came into force. The effect of the legislation is that service providers can no longer discriminate in the way they deliver their services. In response to this the Council has conducted a survey of all premises open to the public and carried out any necessary works to ensure that they are compliant with the DDA legislation. A variety of works have also being carried in other parts of Council buildings in response to the DDA needs of staff. We have also identified and implemented changes in management procedures; provided advice and guidance to senior managers and other key staff, and prepared a guidance document which has been made available to external organisations. The authority has a nominated “Access Officer” to provide ongoing advice and guidance. The Access Officer has continued to work with the Disabled People’s Network and other voluntary groups to identify and address a range of property related disability access issues. All required DDA access audits have been completed and the results recorded on the Council’s Asset Management database. All works identified in the surveys have been completed and at the end of 2007/08, 94% of all Council buildings open to the public complied with the DDA access requirements. This was slightly below the BVPI target of 95% and was due to works identified in DDA surveys carried out at a small number of buildings that had been added to the PST’s portfolio of DDA properties towards the end of the financial year. The works arising from these surveys will be completed in the first half of 2008/09 and is anticipated that the 95% BVPI target will be achieved by end of the financial year. It has been acknowledged that it is unrealistic to expect that 100% of all Council buildings open to the public will comply with the DDA access requirements, as some alterations to buildings cannot be achieved or are not reasonably practicable, due to the design and physical constraints of the buildings. The Council, has, therefore, set what is considered to be a realistic target of 95% of buildings being compliant with the requirements.  Control of Asbestos The Control of Asbestos Regulations 2006 place an explicit duty on Councils to manage any asbestos contained within any of their non-domestic premises. In accordance with the requirements of the legislation annual inspections are carried out to continually check the condition of any asbestos containing material that was originally identified, considered safe and left in place, following a Type 2 (non intrusive) survey of all Council properties in 2005/06. The 2007/08 programme of inspections has been completed In March 2008 the Cabinet Member for Resources approved the award of a four year contract for the day to day surveying and analysis of asbestos in Council Buildings and schools to Enquin Environmental Limited, with effect from the 1st April 2008. Type 3 intrusive surveys are carried out as a standard practice prior to any major refurbishment or demolition works being undertaken Computerised records of the location and condition of materials likely to contain asbestos is maintained and updated by the Property Services Team. The outcomes of the annual inspections are recorded in a register kept in a designated central location in each property. The register also provides information and advice about any actual or suspected asbestos materials that anyone carrying out building works within the property needs to be aware of. Asset Management Plan 0708 Page 20
  21. 21.  Energy Management Following the restructure of the Strategic Investment and Property Division in 2006 energy monitoring and conservation became the responsibility of the Property Services Team (PST). The restructure also resulted in the creation of a Corporate Energy Officer whose main role is to focus on energy matters relating to the corporate property portfolio (excluding social housing properties managed on behalf of the Council by Solihull Community Housing) and to contribute to the Council’s emerging corporate strategy for energy conservation and sustainability. Following the appointment of the Corporate Energy Officer in December 2006 work immediately commenced on the production of a corporate energy conservation and management policy and action plan for all Council buildings and schools. In 2007/08 all managers of Council buildings and schools have attended energy conservation and management awareness events organised by the Corporate Energy Officer. Managers and staff from the PST’s Building Services and Mechanical and Electrical partners have also been involved in these events. Surveys of high energy consumption properties have been carried out in 2007/08 in conjunction with the Carbon Trust, which have resulted in the implementation of various energy conservation initiatives. Work has also commenced with the PST’s Building Services and Mechanical and Electrical partners to standardise materials and plant, in order to improve energy efficiency wherever possible. A detailed report on the proposed implementation and development of an energy action plan for Council buildings and schools was approved by the Corporate Management Team in April 2007, and subsequently presented to the Overview and Scrutiny Management Board in May 2007. The final version of the energy policy action plan is due to be ratified by the CMT in July before being presented to the Council Cabinet for consideration in September 2008. Detailed reference will be made to the energy policy and action plan at an energy awareness presentation to the Council’s Senior Managers Forum in October 2008. It is acknowledged that schools can play vital role in developing an understanding of energy and sustainability matters and help to raise awareness of the issues involved. The Energy Officer is, therefore, continuing to explore a variety of energy initiatives with schools and is currently working with Npower to promote energy awareness in schools through a scheme entitled ‘Climate Cops’. A contract was awarded to United Utilities in July 2007 to install ‘smart meters’ in all Council buildings and schools. The smart meters will enable the prompt payment of invoices based on actual rather than estimated readings and also enable day to day local and centralised monitoring of energy levels and patterns of consumption. The implementation date for the smart metering contract is dependent on the outcome of discussions that are currently taking place between United Utilities and the Council’s energy supplier Npower over a number of technical/legal issues relating to the contract. The contract with United Utilities also includes the review all of utility bills that the Council has paid over the last three years and the submission of claims to the utility companies in respect of any overcharges that may have arisen as result of estimated bills and/or inappropriate fuel tariffs. This work has started and is due to be completed in September 2008. Asset Management Plan 0708 Page 21
  22. 22. The Corporate Energy Officer is currently working with the Department for Business Enterprise & Regulatory Reform (BERR) and the Department for Environment Food and Rural Affairs (DEFRA) to secure a 50% contribution from the Low Carbon Building Programme towards the costs of installing a photovoltaic unit (solar panels) on the roof of the Central library. The Council Cabinet has agreed to fund the other half of the costs from the 2007/08 ‘Single Capital Pot’ budget. Arrangements are currently being made to produce and display ‘Display Energy Certificates’ in all Council buildings open to public with a total useful floor area over 1000m² by the 1st October 2008. The certificates will show the energy efficiency of buildings on a rating system of A-G and will be updated on an annual basis. The Council continues to purchase green electricity (i.e. energy from renewable sources), and this represents 11% of our electricity expenditure in buildings and all of our street lighting electricity consumption. The Council is also an energy generator, as the electricity produced from residual domestic waste at the Coventry and Solihull ‘Energy from Waste’ (EFW) plant is sold to the National Grid. Asset Management Plan 0708 Page 22
  23. 23. 9. The Corporate Facilities and Asset Management Information Systems 9.1. The Council makes use of a number of computer systems and modules to provide facilities and asset management data for day-to-day operational management and longer term planning purposes. 9.2. The three main systems in use are:  The CAPS Estates Management System which holds the records of all land and buildings in which SMBC has an interest, including information about the ownership, acquisition and disposal of properties and leases, licences and assignments, and details of the insurance valuations of all buildings owned by the Council. The Council’s Asset Register is produced from data held on this system  The Tribal Asset Management Premises System includes property condition survey results, statutory and regulatory monitoring and control information, sufficiency and suitability information, and other asset management data and whole life cycle costing information, in line with the Department of Communities and Local Government’s (DCLG) and the Department of Schools, Children and Families (DCSF) requirements. The extent to which each of the Council’s properties complies with the requirements of the 1995 Disability Discrimination Act is also recorded on the system. It is also used to view computer aided design (CAD) drawings and photographs of all Council owned properties.  The Academy Repairs System is used to record and manage property maintenance and repair works on a corporate basis. 9.3. The above systems are linked to a number of other land and property and financial management and information systems, namely:  The CAPS Land and Property Gazetteer (NLPG) Management System assigns a unique property reference number (UPRN) to all buildings within the Borough to enable this information to be uploaded to a national database and shared with other public sector organisations. Land and property assets are identified by their UPRNs within the CAPS Estate Management System, the Corporate Asset Register and the Tribal Asset Management Premises System.  The Corporate Geographical Information System (G.I.S.) provides information about properties and areas of land, such as planning applications, footpaths, grounds maintenance, Unitary Development Plans (UDP) plans and street lighting - overlaid on ordinance survey maps of the Borough  ORACLE is the Council’s corporate financial and procurement system, which enables cost centre managers to directly access, via the intranet, income and expenditure records relating to the land and/or property for which they are responsible.  STARK records the energy consumption and costs for all corporate properties, including schools. Asset Management Plan 0708 Page 23
  24. 24. 9.4. The Strategic Investment and Property (SIP) intranet site allows Council staff to directly access information about the Council’s land and property assets and also obtain detailed information about the current condition of Council owned property and any maintenance and repair works planned for the future. The main information modules available on the site are:  Building Information which includes details of all Council owned buildings i.e. geographical location, aerial and site photos; the occupying directorate; detailed description of building, floor areas, actual running costs details for the last three financial years; date of last building condition survey, and 10 year maintenance and repairs forecast for the building.  Solihull’s Establish Interprise Asset Management Internet Site. This site is the web enabled version of the Tribal Asset Management System which enables property managers and head teachers to access a variety of property related information, i.e. property suitability and sufficiency information; DDA survey information; asbestos records, and site photographs and computer aided design (CAD) floor layout plans.  The Academy Repairs System enables customers to view, on the intranet, the repairs and servicing orders that have been raised for their property over the previous 12 months and to verify the current position with each repair and to access repair cost information.  Existing and Former Council Owned Land Assets shown on electronically generated borough maps  Utility Information: The SIP intranet site provides a link to gas, water, electricity and telephone invoice details produced from the Oracle financial system 9.5. SIP Division staff are responsible for updating and maintaining the above land and property asset management systems and for dealing directly with requests for information from Council staff and members of the public. 9.6. Staff in the Property Services Team are responsible for maintaining the STARK energy management system and providing service directorates with energy consumption monitoring reports 9.7. The Customers Services Division is responsible for maintaining and developing the Council’s Land and Property Gazetteer and G.I.S. systems. 9.8. The key IT developments that have been introduced and/or progressed by staff in the SIP Division in 2007/08 were: • The continued development and refinement of the SIP Division intranet web site to make it as quick and easy as possible for Council staff to access a range of facilities and management information and data for operational and strategic management purposes. Staff have been encouraged and assisted to use the site in an interactive way (i.e. to place orders and pay for maintenance and repair works; to make enquiries about land and property ownerships and responsibilities; to request portering and facilities services, and to order special needs transport services etc) • The electronic portering and facilities job request facility was moved to the SolNet home page and will shortly include Library portering services. • The upgrading of the computerised corporate estates management system (CAPS) to increase the functionality of the system and enable easier extraction and sharing of data with other information systems Asset Management Plan 0708 Page 24
  25. 25. • The amalgamation of the corporate asset register and CAPS was completed in May and will enable staff in the Corporate Land and Property and Strategic Land Teams to input and access in one location site plans for all Council owned land and property assets and information which was previously recorded on two separate data bases. (See paragraph 9.2 above). • Progression of the large scale voluntary registration of Council Owned land with the Land Registry (LR) in Telford. The first stage of this process has involved the identification and registration of any unregistered assets transferred from Birmingham City Council to Solihull MBC in the 1970’s. The second stage involves assets in the south of the borough. Electronic plans and deed packets relating to assets in six of the wards involved were sent to the LR for registration towards the end of 2007/08. • The continuation of the training programme to assist property managers to access the Tribal Asset Management Premises System over the Internet. 9.9. The main developments that are due to take place in 2008/09 are: • The ongoing development of the Strategic Investment and Property Division’s intranet web site • A detailed examination of the recently combined Corporate Asset Register and CAPS records to identify and correct any discrepancies between the two sets of records. • Completion of the voluntary registration of Council Owned land in the seven remaining wards in the south of the borough with the Land Registry (LR), which is well ahead of the government’s target of 2012 • Following the completion of the voluntary registration process the LR will provide the Council with an electronic map showing all registered land holdings. This will then be compared with the Council’s records to identify and investigate any outstanding unregistered land holdings. • Work is due to be completed by July 2008 on the creation of links between the PST’s Academy Maintenance and Repairs system and the IT systems of its building services and mechanical and electrical services partners. This will enable the electronic transmission of works orders, progress updates and actual and committed expenditure details between the systems. • The possibility of transferring expenditure commitments from Academy to the Oracle financial system is also to be investigated. • The completion of the above training programme to enable all Council property managers to access the Tribal Asset Management Database by March 2008 • The replacement of the STARK energy monitoring system by the United Utilities ‘Smart Meters’ and energy monitoring system, which will enable day to day local and centralised monitoring of energy levels and patterns of consumption, as described in Section 8.3 (Energy Management) above. Asset Management Plan 0708 Page 25
  26. 26. 10. The Council’s Portfolio of Land and Property 10.1. The Council has an operational property portfolio of 372 buildings, including 82 schools and an investment portfolio generating a gross annual income of approximately £4.56m. The approximate value of the whole property portfolio as shown in the Council’s accounts is £621m (i.e. operational properties £518.3m; non-operational properties £102.3m). Appendix 2 shows the classification and value of all of the properties in the portfolio 10.2. The investment portfolio is made up primarily of leasehold commercial land and property and includes the Councils interest in the Mell Square Shopping Centre, small suburban shops, industrial units, and other miscellaneous small land holdings. The Council’s interests in a wide range of land and property also enables it to make an important contribution to the future development and growth of a number of key locations within the borough which ensures that Solihull remains a thriving, high quality and distinctive location in which to live, work and shop. 10.3. A phased review of the portfolio of leasehold commercial properties is currently being carried out to identify the financial performance and value to the Council of each land and property asset within the portfolio. 10.4. In December 2005 the Overview and Scrutiny Board agreed a framework for the review of the Council’s asset base, as outlined below: • Schools - Surplus places are to be continually monitored and if they reach a certain level for a particular school this will automatically trigger a review of the use of the asset. • North of the Borough – Buildings within the area defined by the North Solihull Regeneration agreement will be reviewed as part of the Neighbourhood and Business planning processes established as part of the agreement. Where surplus land or buildings are identified the Council will receive a capital receipt equivalent to the existing use value. This, together with any surplus residual value, will be used by the Partnership to fund its various regeneration activities. • Strategic Properties – The Council owns a number of buildings and land for policy delivery and defensive strategic purposes. These assets are to be regularly reviewed by the Council’s Strategic Land Section to confirm that they are still required for their original purpose or whether they could be put to an alternative use(s) that are consistent with the Council’s aims and objectives. • Other Properties – It was agreed that a detailed review of the remaining operational buildings in the south of the borough, as listed in Appendix 3, should be carried out, focussing initially on the buildings requiring the most capital and/or revenue investment 10.5. At the beginning of 2005/06 a programme of suitability and sufficiency reviews of the Council’s operational property assets was agreed with the Overview and Scrutiny Board (OSMB). Reports on the multi-storey car parks in the south of the borough were presented to the OSMB Resources Sub Group in October 2006 and April 2007. Reports on corporate training facilities were considered by the OSMB Sub Group in April 2007 and a follow up report is to be presented to the group in September 2007. Reviews of Asset Management Plan 0708 Page 26
  27. 27. the remaining operational property assets in the south of the borough are to be reported to the Sub Group in 2007/08. Asset Management Plan 0708 Page 27
  28. 28. 11. Corporate Arrangements for the Ongoing Review of Land and Property Requirements 11.1. The Service Director, Strategic Investment and Property holds monthly meetings to monitor progress on major land and property schemes and to consider the potential future demand for land and property and associated developmental opportunities in the Solihull Borough area. Senior managers from the Strategic Investment and Property Division and Operational Directorates, and representatives from the Council’s external strategic land advisors, Donaldsons, attend the meetings The outcomes of the meetings are reported to the Corporate Management Team and to Council members, as appropriate, and also to the Corporate Asset Management Group. This ensures that any decisions about the acquisition, disposal and use of Council land and property are taken with a full knowledge and understanding of the wider corporate initiatives and potential developments referred to above. 11.2. All land and property assets are a corporate resource. Directorates are, therefore, required to formally advise the AMG of any under-utilised or vacant properties that are surplus to requirements at the earliest opportunity. Assets may become under-utilised or surplus to requirements for a variety of reasons, i.e. new legislation; demographic changes; changes in service delivery arrangements; technological innovation, budget reductions etc. These changing usage patterns are identified and/or anticipated in Directorates’ performance plans and service reviews and other strategic reviews 11.3. In addition, the Strategic Land Advisor, in his capacity as the Corporate Property Officer, is required to regularly review the Council’s portfolio of land and property and to challenge the justification for and the basis upon which individual land and property assets are being retained within corporate and service directorates 11.4. Directorates are required to submit an outline business case to the AMG, together with an indication of the capital and revenue costs involved, in support of any proposed alternative use for a building and to confirm how it will contribute to the achievement of the Council’s key aims and objectives. If the proposal is supported by the AMG, depending on the funding needed, a report will be either be presented to the Cabinet Member for Resources seeking approval to proceed with any necessary works or an application will be made for funding from the Council’s ‘Single Capital Pot’ allocation. 11.5. The Strategic Land Advisor will be asked to identify the opportunity costs associated with any proposal. This will usually be the value of the rent or capital receivable if the property was offered on the open market. 11.6. The Corporate Land and Property Section act as the custodian of any properties that are declared surplus to requirements. The costs involved with maintaining and securing a vacant property will be met from the sale proceeds of the property/land. 11.7. The Cabinet Member for Resources will be asked to approve the disposal of any surplus property that the AMG is unable to identify an alternative use for. 11.8. Any requests received from voluntary or other external organisations to occupy an under–utilised or surplus property will be subject to the above evaluation process, in order to ensure that the value of the asset is maximised, either in terms of the contribution that any proposed change in use will make to the development of the Council’s community strategy and/or the financial return involved. Asset Management Plan 0708 Page 28
  29. 29. 12. Performance Monitoring and Measurement 12.1. The Council produces a range of annual property performance indicators, for submission to the Institute of Public Finance (IPF) Asset Management Planning Network and for Comprehensive Performance Assessment (CPA) purposes, as detailed below: o Property Condition and Required Maintenance o Environmental Property Issues – including energy costs/consumption; water costs/consumption and CO2 emissions o Property Suitability Surveys o Property Accessibility Surveys 12.2. A comparison of the Council’s performance against other Local Authorities under each of the above headings in 2005/006 and 2006/07 is shown in Appendix ? 12.3. The 2007/08 property performance data that is to be submitted to IPF at the end of July is shown in Appendix ? 12.4. The above performance indicators are classed as national indicators which local authorities are strongly advised to adopt. 12.5. The Council’s current position with regard to a further three local indicators listed below, which the IPF have suggested Local Authorities may wish to adopt, depending on local priorities, is shown in Appendix ? o The Sufficiency (Capacity and Utilisation) of the Office Portfolio o The Gross Property Costs of the Operational Estate as a % of the Gross Revenue Budget o Time and Cost Predictability of Major design/construction projects (pre and post contract) 12.6. It is envisaged that the above suite of local and national indicators, which will be added to and amended over time, will become the standard set of measures for Local Authority property management in England and Wales. 12.7. One of the key lines of enquiry within the Audit Commission’s Comprehensive Area Assessment for 2009 focuses on the extent to which Council’s use ‘performance measures and benchmarking to describe and evaluate how their asset base contributes to the achievement of corporate and service objectives’. The above range of performance measures will form an important part of the evidence submitted by the Council to demonstrate its level of performance in this area. Asset Management Plan 0708 Page 29
  30. 30. 13. 2007/08 Asset Management Planning and Delivery Priorities 13.1. In 2008/09 Strategic Investment and Property Division staff will be focussing on the following key areas and activities:  The regular review and development of the Council’s asset management and capital planning arrangements, in conjunction with Service Directorate managers, and the ongoing implementation and development of the AMP  The progression of the Shirley and Chelmsley Wood town centre re-development schemes.  The delivery of North Solihull Regeneration sites in line with the agreed ‘In Partnership Consortium’ business plan.  Assisting with the development of proposals for the redevelopment of the Mell Square shopping area.  Contributing to the formulation of the Solihull Local Development Framework and the Area Action Plan for the Solihull Town Centre  The progression of the office accommodation strategy for the north of the borough and the ongoing review of accommodation needs at the Council House and elsewhere within the borough.  The delivery of a range of major building design and mechanical & electrical projects  The ongoing implementation of the 10 year building and mechanical and electrical maintenance and repairs programme resulting from the ‘’whole life costing’ of Council buildings, excluding schools, carried out in 2005.  The delivery of high quality and cost effective day to day repairs and reactive maintenance services in conjunction with our building services (Ian Williams PLC) and Mechanical and Electrical Services (The Dodds Group) partners.  The implementation of the corporate energy conservation and management policy and action plan for all Council buildings and schools.  Helping property managers to utilise the space available in their buildings in the most efficient and cost effective manner.  The continuing development and enhancement of the Strategic Investment and Property Division’s IT data management, information and communication systems, and an increasing focus on property performance indicators.  Ensuring that those F&AM services delivered through third parties are done so successfully, through the development of good contract relations and/or partnering arrangements, clear expectation setting and effective contract performance management  Putting the necessary controls and support mechanisms in place to ensure that all service directorates comply with the legislative and other regulatory requirements referred to in Section 8 of this report. Asset Management Plan 0708 Page 30
  31. 31. 14. Appendices Appendix 1 Prudential Borrowing Indicators Appendix 2 Solihull Council 2006/07 Property Classification and Values Appendix 3 Property Assets in South Solihull to be reviewed by the OSMB Sub-Group in 2007/08 Appendix 4 Property Performance Indicators submitted to COROP in July 2007 Appendix 5 Land and Property Services Local Performance Indicators Asset Management Plan 0708 Page 31