Asset management plan 2008-2013



Author                    Estates Manager
Date published            April 2008
Review d...
Asset management plan 2008-2013



Contents
    Author Estates Manager.......................................................
Asset management plan 2008-2013


1      Barrow Borough Council

Barrow Borough Council is one of six district Councils in...
Asset management plan 2008-2013


2       Purpose of the Asset Management Plan

The Council’s Asset Management Plan (AMP) ...
Asset management plan 2008-2013

The Key Priorities are:
   •   KP 1 – Create a Safer, Cleaner, Greener environment and re...
Asset management plan 2008-2013


   •   Crematorium – building refurbishment.
   •   Public Conveniences – rolling refurb...
Asset management plan 2008-2013


3       Organisational arrangements for asset management

Corporate Services Directorate...
Asset management plan 2008-2013

The Corporate Property Officer

The Corporate Property Officer (CPO) is responsible for c...
Asset management plan 2008-2013

Contracts and Procurement Group

This group meets to review the Contract Standing Orders ...
Asset management plan 2008-2013


4       Influencing factors

The Resource Context

The Council aims to ensure that its a...
Asset management plan 2008-2013

Attracting new interest to Barrow can be painstakingly slow and has required public
pump ...
Asset management plan 2008-2013


   •   The Council’s main arts and cultural centre has undergone an extensive
       ref...
Asset management plan 2008-2013

The following policy principles are to be applied to enable delivery of the service
prope...
Asset management plan 2008-2013


5      Data management

Development of a Property Management System

The Land and Proper...
Asset management plan 2008-2013


6       Performance management, monitoring and information

Good processes are in place ...
Asset management plan 2008-2013


7       Planning and implementation of projects

The Council employs a comprehensive met...
Asset management plan 2008-2013

Key Objectives

This AMP aims to set out the Council’s policy on its use of property in o...
Asset management plan 2008-2013

Resources

In order to achieve the required existing and new capital expenditure the Coun...
Asset management plan 2008-2013


8      Performance information

The Council has identified the following Property Perfor...
Asset management plan 2008-2013

PPI 2 – Sustainability of assets

All of the Council’s assets in DCLG categories A to C a...
Asset management plan 2008-2013

PPI 6 – Year on year improvements in energy efficiency

The following table sets out the ...
Asset management plan 2008-2013

PPI 7 – Gross non-operational assets income

The Council aims to grow its income from non...
Asset management plan 2008-2013

PPI 8 – Car parking usage

The Council aims to let 100% of the contract spaces. For 2006-...
Asset management plan 2008-2013




Appendix 1 - Land and building property assets

This is a preliminary list and is incl...
Asset management plan 2008-2013


 Category     Group    Asset Name                                              Grade   S...
Asset management plan 2008-2013


                       Non-Operational Assets
  Non-Op      Land     Land at Junction of...
Asset management plan 2008-2013

  Non-Op        Land      Thorncliffe Youth Fields, Cliffe Lane                     B    ...
Asset management plan 2008-2013

 Operational   Building   Community Centre - Askam                           C   N
 Opera...
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BARROW BOROUGH COUNCIL

  1. 1. Asset management plan 2008-2013 Author Estates Manager Date published April 2008 Review date February 2009 Endorsed by Executive Committee April 2008 Estates manager Town Hall Duke Street Barrow-in-Furness Cumbria LA14 2LD Estates@barrowbc.gov.uk www.barrowbc.gov.uk
  2. 2. Asset management plan 2008-2013 Contents Author Estates Manager......................................................................................1 Asset types........................................................................................................5 Continuous Review and Challenge..................................................................11 Preferred Strategy Options..............................................................................12 Development of a Property Management System............................................14 Asset Register.................................................................................................14 Investment in the property assets....................................................................14 PPI 1 - Condition of assets..............................................................................19 PPI 2 – Sustainability of assets........................................................................20 PPI 3 – Occupancy of commercially let property..............................................20 PPI 4 – Growth of revenue earning asset base................................................20 PPI 5 – Efficient use of assets over time..........................................................20 PPI 6 – Year on year improvements in energy efficiency.................................21 PPI 7 – Gross non-operational assets income.................................................22 PPI 8 – Car parking usage...............................................................................23 Appendix 1 - Land and building property assets.................................................24 Page 2
  3. 3. Asset management plan 2008-2013 1 Barrow Borough Council Barrow Borough Council is one of six district Councils in Cumbria. Situated in the South West of the County, the Borough has a population of 71,800 (2006) residents and covers approximately 7,796 hectares. The Council is composed of 38 Councillors with one-third elected three years in four. All councillors meet together quarterly and annually as the Council, and more often in smaller groups at committee meetings for most day-to-day decisions. The Council has a streamlined Committee system with the Executive Committee the sole policy Committee of the Council, and as such it has responsibility for Asset decisions. In 2006/07 the Council’s General Fund assets generated gross income of £1,376,464. The Council aims to grow its income from non operational assets as a response to falling levels of government grant and to avoid unreasonably high levels of increase in Council Tax. The Council plans to invest a substantial proportion of its capital expenditure in planned maintenance and improvement of its assets and expansion of its commercial and industrial portfolio. Page 3
  4. 4. Asset management plan 2008-2013 2 Purpose of the Asset Management Plan The Council’s Asset Management Plan (AMP) is the corporate document detailing its asset management arrangements, changes already put in place and planned action to improve corporate asset use. The process provides the means by which the Corporate Property Group is able to define and provide for the longer-term corporate needs and challenge existing asset use. The AMP document sets out the key objectives for the medium-term property interests in operational and non-operational land and buildings. The Council’s Chief Executive and the Vice-Chairman of the Executive Committee jointly ‘Champion’ asset management. This AMP applies to land and building property assets (excluding community assets) outside the Housing Revenue Account. The Council’s Corporate Vision The AMP supports the Council’s corporate vision which is: “To enhance the economic and social future of the Borough to meet the needs and aspirations of the community.” The key aims to support the vision are: • Effective community leadership. • Investing in our economic future. • Creating an enhanced quality of life for local residents. • Developing a safe, confident and socially inclusive community. • Delivering high quality accessible services. Performance Management Framework The Council has developed a performance management framework to link the activities and tasks that it undertakes, to the more aspirational aims of the Community Plan and the Council’s own Corporate Vision. The framework is based on identifying a number of improvement activities that will help to achieve the aims of both the Community, as set out in the Community Plan, and the Council. The Community Plan presents a vision of the future of the Borough. It aims to co- ordinate the work of public, private, community and voluntary sectors to improve the social, economic and environmental wellbeing of the Borough and all of its residents. Key Priorities The Council developed a set of Key Priorities for 2007-2008 that will deliver tangible benefits to the community. These Key Priorities are areas that continue as headline issues into 2008-2009 and future years. Following review, the Council has resolved to maintain these Key Priorities as the focus for activity until 2011 when a further review will be implemented. For each of the Key Priorities (KP) there is an action plan that includes annual objectives, actions and measures so that progress can be monitored. Page 4
  5. 5. Asset management plan 2008-2013 The Key Priorities are: • KP 1 – Create a Safer, Cleaner, Greener environment and reduce the gaps between the priority wards and the average. • KP 2 – Meet the housing needs of the Borough and make decent housing more accessible. • KP 3 – Provide easier access to our services. • KP 4 – Support economic regeneration. • KP 5 – Continue to improve the effectiveness and efficiency of your Council. • KP 6 – Expand facilities and activities for young people. Corporate AMP The asset management plan intends to show how the Council’s property portfolio will: • Contribute to the delivery of the key priorities; • Ensure effective asset management planning and property review; • Comprise of assets which are suitable, fit for purpose and are sustainable to enable services to be delivered effectively and with equality of access. • Comprise of assets which support regeneration activity and the economic development of the Borough. • Dispose of surplus assets in a manner which best meets the needs of the community. Asset Planning Process Understand the existing asset base Develop an asset strategy Assess the resource implications of the asset  Revenue budget strategy Prepare the corporate Asset Management Plan Capital programme Treasury Management Strategy Medium Term Financial Plan Asset types In terms of asset management, the Council has five classes of asset: operational, administrative, non-operational, car parks and surplus assets. Operational property Operational property is used to deliver a direct service to the public, for example the Leisure Centre. At the 31st March 2007, the Council owned 53 operational assets. During the life of this AMP the following actions are planned: • Park Leisure Centre – extension to current facilities to create a new Youth Gym and expand the Adult Gym. • Forum 28 – refurbishment programme for function rooms. • Barrow Market Hall – utility room and toilet facility refurbishments. Page 5
  6. 6. Asset management plan 2008-2013 • Crematorium – building refurbishment. • Public Conveniences – rolling refurbishment programme. • Play Areas – rolling refurbishment programme and Scrutiny review of current play areas. Administrative property Administrative property is used to provide back office functions in support of service delivery, for example the Town Hall. At the 31st March 2007, the Council owned 4 administrative buildings. The Council’s Housing Department office is currently on a 10 year lease that is due for review on the 1st April 2009. During the life of this AMP the following actions are planned: • Review of Housing Department accommodation with particular reference to the continued use of Cavendish House (leased property). • Review third party occupancy of Town Hall premises. Non-operational property Non-operational property includes commercial and industrial property. At the 31st March 2007, the Council owned 137 non-operational assets. During the life of this AMP the following actions are planned: • Construction of two separate industrial units at Forge Close. • Full refurbishment of 77-79 Duke Street, a long-term vacant retail property acquired for redevelopment. • Management and accommodation review of: o Burlington House o Waterside House o Phoenix Business Centre o Emlyn Hughes House • Playing fields – rolling improvement programme for football pitches and changing facilities. Car parks At the 31st March 2007, the Council had 19 car parks, 17 freehold and 2 leasehold. The 7 pay and display car parks have 913 pay and display spaces and across all car parks, there are 160 contract spaces and 47 disabled spaces. During the life of this AMP the following actions are planned: • Portland Walk roof top car park – condition survey. • Rolling car park maintenance programme. Surplus property Surplus property includes land or buildings no longer required or uneconomical to operate, which will be disposed of at a time and in a manner that best suits the needs of the community. At the 31st March 2007, the Council owned 7 assets identified as surplus; see page 18 for details. Page 6
  7. 7. Asset management plan 2008-2013 3 Organisational arrangements for asset management Corporate Services Directorate - Estates Department The Estates Department is within the Corporate Services Directorate and is ‘pivotal’ in the day-to-day management of the Council’s property assets, having the following responsibilities: • Responding to repair requests and organising maintenance works • Monitoring income (from commercial and industrial assets) • Disposals and acquisitions • Valuations • Rent reviews and lease renewals • Answering general property related queries • Appointing and monitoring the performance of external property consultants and contractors The Estates Department Head of Service has three staff; the Head of Service being the Projects and Property Manager, with the Asset Registrar and 2 part-time clerical staff. The Building Surveyor and the Standards and Facilities Manager are within the Regeneration and Community Services Directorate. They have the following responsibilities for the Council’s property assets: Building Surveyor • Monitoring the repairs and maintenance budget • Responding to repair requests and organising maintenance works • Answering repair and maintenance of property related queries • Appointing and monitoring the performance of consultants and contractors Standards and Facilities Manager • Energy management (monitoring all fuel usage/computerised controls to operational Corporate Buildings) • Co-ordinating and monitoring the performance of external property consultants and contractors • Health and safety audits and inspections of operational properties in conjunction with the Health and Safety Officer Major building works projects are managed and overseen by Heads of Service. External provision The Council works in partnership with external agents and property management providers. The key responsibilities in relation to the Council’s Property assets are: • Inspections – such as asbestos, electrical safety and water safety • Major lettings • Major valuations • Managed lets • General property advice as required Page 7
  8. 8. Asset management plan 2008-2013 The Corporate Property Officer The Corporate Property Officer (CPO) is responsible for co-ordinating and organising the work of the Corporate Property Group and its liaison with other Corporate Groups. A key requirement is to ensure that there is a programmed and planned approach to dealing with corporate property and that it is effective. The CPO also attends meetings of the Capital Monitoring Group, which creates and oversees the Capital Programme (headed by the Chief Executive) to ensure optimum communication on assets related matters and facilitates the management of anticipated changes. The CPO for Barrow Borough Council is the Director of Corporate Services who is also the Council’s Monitoring Officer. CPO responsibilities: • Co-ordinating input from the Corporate Property Group members into the overall AMP preparation process. • Encouraging the cross-flow of information between the members of the Corporate Property Group. • Ensuring that the asset management objectives are being implemented by the Council’s services. • Maintaining an up-to-date and relevant AMP. • Attending meetings of the Capital Monitoring Group. • Taking Corporate Property Group recommendations to the Management Team. Property Groups There are a number of operational groups that meet regularly to deal with asset management issues, these are the Public Buildings Maintenance Group, the Energy Efficiency Group, the Contracts and Procurement Group, and the Health and Safety Working Group. The groups and their purpose are shown below, these all report to the Corporate Property Group via the Director of Corporate Services (CPO). Public Buildings Maintenance Group This group meet to plan and monitor the expenditure on both planned and reactive maintenance of public buildings. This includes the maintenance of fixtures and fittings as well as the building structure. The group also identify and propose new projects for both revenue and capital works. Energy Efficiency Group This group meet to plan energy efficiency initiatives and to measure the effectiveness of such measures against savings expected and to project future savings. These are savings in energy consumption as well as in cost. This group also identify and propose new projects. Page 8
  9. 9. Asset management plan 2008-2013 Contracts and Procurement Group This group meets to review the Contract Standing Orders and Health and Safety Policy in relation to the Council’s contractors. The group considers existing contracts and providers and are using procurement methodology to achieve unity of contractors on expiry of existing contracts (such as using one lift maintenance company throughout the Authority rather than one per building). The group also monitor CDM (Construction Design & Management) requirements for relevant contracts (those exceeding 30 days). Health and Safety Working Group This group meets to consider health and safety issues which affect all Council properties. They proactively monitor works in all buildings and work to raise awareness of health and safety throughout the Council. The Corporate Property Group The Corporate Property Group is a strategic group responsible for monitoring the corporate asset management process. The Corporate Property Group meets twice a year to discuss asset management related issues. The Corporate Property Group recognise the importance of ensuring that it embraces the Council’s wider objectives including the Community Plan and the Council’s Key Priorities. The Corporate Property Group core membership consists of the Vice- Chairman of the Executive Committee, the Director of Corporate Services (CPO) and the Deputy Borough Treasurer. The Group reports to the Management Team via the Director of Corporate Services (CPO). Responsibilities: • Consider reviews to establish fitness for purpose • Consider reports from the Property Groups (listed above) • Ensuring implementation and maintenance of the AMP • Ensuring the Asset Register is satisfactorily maintained The Management Team The Management Team is the key co-ordinating group that provides the link between Operational and Strategic management. It comprises the Chief Executive, two Directors, who also head the Operational and Support Directorates, and the Borough Treasurer. The main AMP objectives are: • To ensure that the Council’s non-investment property assets are provided and used to meet the current and future needs of the individual service users and to maximise the ability to meet the Council’s Key Priorities, and • To ensure that the Council’s income-earning portfolio of property is actively managed to meet the identified required level of financial return in support of the delivery of the Council’s Key Priorities; and • To ensure the efficient, effective, economic and sustainable use of new and existing assets in delivering services and meeting the Council’s Key Priorities. Page 9
  10. 10. Asset management plan 2008-2013 4 Influencing factors The Resource Context The Council aims to ensure that its asset management strategy is effectively implemented. The following surveys have been completed: • Asbestos • Electrical Safety • Fire Risk Assessment • Water Safety • Energy efficiency within major properties Associated works and monitoring visits are continuing. For 2007-08 a fabric condition survey of major properties is ongoing. This has been prioritised on a risk assessment basis. The results of the surveys will be stored centrally on the Council’s Asset Management database and will be monitored by the Corporate Property Group. The Council makes a substantial investment in its assets from both revenue and capital funds. Resources are allocated against project applications subject to needs assessment and in accordance with generally accepted accounting practice. In 2008-09 the Council has been able to reduce the Public Buildings Maintenance Revenue budget by £50,000 as a reflection of the benefits from planned maintenance works, such as new boilers and establishing regular programmes of heating and ventilation maintenance, and guttering cleaning and maintenance. In a joint procurement initiative with the County Council, Barrow has purchased electricity from renewable sources for our 6 highest consumption sites including the main Council buildings (Town Hall, Leisure Centre and Arts Centre). Changes in the External Environment and their Implications for Property The underlying economic factors affecting the national economy apply to Barrow subject to unique geographical characteristics. The Town is held back from its full potential because it is not considered a prime location for investment by property market decision-makers. In overall terms, its property economy is relatively self- contained on a needs must basis. Mainly sub-regional and local developers and investors serve the Barrow property market, with the possible exception of the retail sector. When the UK market shows an upward trend, stability or decline, the Barrow market follows – subject to a time delay because of its location. The Town’s peaks have been historically, neither high enough nor long enough to attract much national interest – or more importantly, the magnet of institutional funds which finances property development. This may be slowly changing. Page 10
  11. 11. Asset management plan 2008-2013 Attracting new interest to Barrow can be painstakingly slow and has required public pump priming intervention over a long period with different levels of risk, leadership and support. It is the major financial institutions who ultimately control capital flow and investment, and who make decisions in the UK property market. These institutions prefer rapid rental growth in return for their capital investment in order to secure large rewards quickly and offset risk. Unless such institutions are looking for long-term sustainable investment with the need for a geographic time consuming commitment, developers will prefer more profitable southern locations: where rental growth increases more rapidly and over shorter periods. This risk averse attitude by the private sector has meant that the public sector has had to be proactive in order to attract development to Barrow in order to improve economic development opportunity for its community. This is why Barrow Borough Council owns a considerable property portfolio and needs to be at the leading edge of public – private partnership working. Continuous Review and Challenge Gap Analysis – Portfolio Assessment Barrow Borough Council is in a strong position with a varied portfolio which meets the current needs of the Council and supports the regeneration programme. It constantly reviews its operational property needs and has a diverse and mixed non-operational portfolio which has produced a significant revenue income in addition to supporting economic development. The Council has intervened in the property market through its regeneration programme to bring about regeneration in the secondary tertiary areas of the Town Centre. The Council is in preparation of a further urban development grant application to the North West Development Agency to support and continue the regeneration of the Town Centre. The Council is participating with Cumbria County Council on a property rationalisation exercise. Sharing services and accommodation across the public and voluntary sectors is a theme the Council is keen to explore. Review of Asset Strategy, Property Objectives and Delivery The Council reviews its operational and non-operational properties on a regular basis. For example: • The Council has a policy of transferring community centres into community ownership/management. Two community centres have recently been transferred to community groups. The Council is examining opportunities to transfer two other community centres into community ownership. Page 11
  12. 12. Asset management plan 2008-2013 • The Council’s main arts and cultural centre has undergone an extensive refurbishment to maximise its use and make the building more flexible and functional. The Tourist Information Centre has been integrated into the arts building which will provide savings and economies in resources. • The main civic building, Barrow Town Hall has recently undergone significant remodelling to make the building more accessible, functional and efficient. All public services have been transferred to the ground floor, Customer Services and main reception services being externalised to the private sector. • The Council has recently acquired one managed business space and developed a second, which are managed in partnership with the private sector. • The Council endeavours to acquire obsolete/derelict strategic town centre properties for regeneration purposes and utilises them, where appropriate, for operational use; the Council acquired a long-term vacant retail building and developed it into a Neighbourhood Management Office. • The Council is working towards the declaration of a Renewal Area in North Central Barrow, an area with a high incidence of poor quality and vacant properties. It is in the process of acquiring properties in 3 streets within the Renewal Area for regeneration purposes. These will support the final scheme adopted for the Renewal Area. This is included as one single asset in the Council’s Asset Register. Options Appraisal The Council invests in projects based on robust option appraisal where feasible. The Council aims to follow best practice for options appraisal as follows: • Clearly identify objectives. • Consider different ways of achieving the objectives. • Assess the costs and benefits of the draft options. • Identify and quantify, if possible, the pros and cons of the options. • Consider any risks and uncertainties. • Assess the best value use of resources, not just the lowest initial cost. Preferred Strategy Options Operational Property Strategy • The Council will own a highly rationalised portfolio of property to deliver services and which provides users with a good standard of efficient, accessible accommodation and facilities by making buildings Cleaner, Greener and Safer in the right location and at the right cost. • All service property will be efficient and effective in supporting delivery of the Council’s key priorities. • The Council will occupy freehold property where appropriate. • The Council will hold leasehold property only when necessary to deliver accommodation required on a flexible basis, or when freehold is not available. • The Council will develop partnership working with other local authorities, public sector bodies, the community and voluntary sector to co-locate services. Page 12
  13. 13. Asset management plan 2008-2013 The following policy principles are to be applied to enable delivery of the service property strategy: Investment should be made only through the three year Capital Programme where: • The property is required for the medium or long term use of the Council, and • The investment: - enhances service delivery - improves sustainability - improves utilisation - increases efficiency - adds value • It addresses statutory obligations. Non-operational Property Strategy • The Council will own property that helps to deliver the corporate priorities. • The Council will investigate new medium and long-term development opportunities that will support delivery of Barrow Urban Design Framework and economic development policies. • The Council will own property that provides a regular sustainable income stream, as a component of the Medium Term Financial Plan. • The Council will strive to improve the performance of the income stream through effective Estate management and development. The following policy principles are to be applied to enable delivery of non-operational property strategy: Commercial property will only be held where: • It provides an acceptable financial return. • There is potential for Council involvement to deliver economic development objectives. • It contributes effectively to the delivery of other Council priorities. • It improves future sustainability of income. • It addresses legal or contractual liabilities and obligations. Page 13
  14. 14. Asset management plan 2008-2013 5 Data management Development of a Property Management System The Land and Property Gazetteer has been installed, which among other things will provide a Corporate UPRN (Unique Property Reference Number). This has already been linked into the Council’s Geographical Information System (GIS). A Property Management System has been acquired. The ‘TF’ system was purchased from Technology Forge and has a comprehensive data base that can store information on a range of estate management issues for both Operational and Non-Operational Assets such as lease details, rents and valuations, and generate a variety of reports. In addition the system has modules for Routine Maintenance, Planned Maintenance, Performance Indicators and Financial Accounting. Asset Register The Council has an Asset Register providing a list of all Council owned assets and relevant details relating to them. The Asset Register is within the ‘ownership’ of the Estates Department who make revisions to it when details change. The Asset Register has been updated to incorporate the CIPFA (Chartered Institute of Public Finance and Accountancy) asset categories. The Council has 221 land and building property assets (excluding Housing and community assets). The Asset Register gives each asset a service user, who, in the case of the main operational buildings is also responsible for its use and management. Investment in the property assets The total budget provision for public building repairs and maintenance is: Page 14
  15. 15. Asset management plan 2008-2013 6 Performance management, monitoring and information Good processes are in place for ensuring a corporate overview is taken of property matters and good monitoring progress on projects, by the regular meetings of the Corporate Property Group and the Capital Monitoring Group and their liaison with the Management Team. Monitoring It is important that the asset management procedures are adhered to and as such these will be monitored on a regular basis by the CPO. Whilst a ‘corporate’ level involvement will continue to be maintained at all times, the Corporate Property Group will also report to the Management Team via the Chair. Performance Measurement of the Action Plan and Property Performance Indicators (PPIs) is monitored and addressed by a combination of the CPO, the Projects and Property Manager, the Corporate Property Group, the Capital Monitoring Group, the Management Team and ultimately by Members. A five year continuous improvement plan is in place for the key PPIs, whilst other PPIs are set annually to seek to achieve improvements. Fit for Purpose Information by way of both formal and informal meetings is being received from Commercial Property tenants and Venue Managers, that will help identify whether property is satisfactory for its’ purpose, if it should be re-categorised or if it should be sold. Health and Safety Operational Venue Managers are responsible for compliance with H&S requirements at their premises. The Estates Department will assist them as necessary. Heads of Service are responsible for ensuring that risk assessments are undertaken for staff based in operational premises. Page 15
  16. 16. Asset management plan 2008-2013 7 Planning and implementation of projects The Council employs a comprehensive methodology for the identification, at a local level, and appraisals at a corporate level of proposed capital projects and the acquisition and disposal of assets. Any proposed capital projects are put to the Management Team. Future requirements to enable facilities to continue to be ‘fit for purpose’ and improve are identified from consultation and survey work. This has been primarily undertaken in conjunction with the Community Plan, Venue Managers, consultation with Heads of Service and Members. The process of prioritising is currently performed by the Management Team who assess the merits and otherwise of the various bids in relation to the Corporate Strategy and in particular the Key Priorities. Additional considerations are operational benefits, efficient facilities and revenue implications. The successful bids will be incorporated into the Capital Programme which covers three years on a rolling basis. Capital Programme Step 1: Identify need or requirements and strategic fit from: • Community Plan • Key Priorities • Services Step 2: The evaluation of capital projects includes: • Project description • Project sponsor • Evidence of need • Key objectives • Key Priorities addressed by the project • Estimated capital costs • Revenue and cost implications • Key dates and actions • Sources of funding • Risks • Impacts of delay (slippage) Step 3: Consideration by the Management Team Step 4: Preparation of proposed three year Capital Programme Step 5: Approved by Council Step 6: Progress monitored monthly by Capital Monitoring Group Step 7: Review of completed projects by Heads of Service/Capital Monitoring Group Page 16
  17. 17. Asset management plan 2008-2013 Key Objectives This AMP aims to set out the Council’s policy on its use of property in order to have a flexible approach to property ownership and secure a portfolio of the right size, quality, cost and location to support delivery of the Council’s community plan. The key objectives are: • To identify all property, which the Council own or uses, assess its value and the function which it performs. • To monitor and manage the costs of occupation and seek to reduce energy costs. • To effectively respond to the change in property needs of services and the regeneration of the area. • To provide a transparent basis for property investment decisions. • To ensure a healthy and safe environment for property users and to promote improved standards. • To promote community and equitable use of assets. • To dispose of surplus assets at the most appropriate time and in the best interests of our wider strategic objectives. Surplus Property Strategy The Council will dispose of assets that it does not require at a time and in a manner which best suits the needs of the community. In the absence of overriding factors, the following policy principles are to be applied to enable delivery of the surplus property strategy: • All operational and non-operational property will be sold unless: o It is occupied efficiently and effectively for services in the right location, at the right price. o It can be used to deliver social, economic or environmental benefits. o It is a long-term strategic investment. Property Acquisition Strategy The Council will only acquire assets if there is a business case to support the improvement in service delivery in the Capital Programme. The Council will acquire assets that assist with the delivery of social and economic development policies if there is a business case in the Capital Programme. The Council will develop opportunities, in partnership, to assemble sites to deliver Council objectives. The following policy principles should be applied to enable delivery of the property acquisition strategy: • Property will only be acquired in the following circumstances: o Where the service cannot be delivered without it. o Where it is required to deliver social and economic policies. o Where it is required to support the delivery of other Council priorities. Page 17
  18. 18. Asset management plan 2008-2013 Resources In order to achieve the required existing and new capital expenditure the Council is reliant upon funding from three key sources: • Capital grants • Capital receipts • Borrowing to finance capital expenditure The importance of generating capital receipts through the use of Council assets is clear. The receipts statement is monitored on a monthly basis by the Capital Monitoring Group that reports to the Management Team. The Council considers it has a proven track record in achieving capital receipts from disposals and that it has been efficient in their corporate re-distribution across the Council to ensure that new capital projects can proceed. The need to continue to work with partners both in the public and the private sector is essential. Our key delivery partners are: • Cumbria County Council • Commercial tenants • West Lakes Renaissance • North West Development Agency • Heritage Lottery • Department for Communities and Local Government (DCLG) • Carbon Trust • Valuation Office • Peill and Company • Furness Enterprise Page 18
  19. 19. Asset management plan 2008-2013 8 Performance information The Council has identified the following Property Performance Indicators (PPI) that will be used to monitor and improve the suitability, fitness and sustainability of our property assets. PPI 1 - Condition of assets The condition of the Council’s land and building property assets has been banded using the DCLG grades. The Council intends that all of its property assets are in grades A to C. The target by 2013 is to have no assets in grade D. These are the DCLG grades: A = Excellent B = Good C = Satisfactory D = Poor DCLG grades Asset Type A B C D Number of Assets Operational 53 13 25 15 0 Administrative 5 2 1 2 0 Non-Operational 137 9 119 5 4 Car Parks 19 2 13 4 0 Surplus 7 0 3 1 3 Total 221 26 161 27 7 Per grade 12% 73% 12% 3% Grade 'D' Assets Location Current position Non-Operational Assets 77-79 Duke Street Currently being refurbished Lesser King’s Hall: staircase and room Currently being refurbished Ship Inn, Piel Island Scheduled for refurbishment 104 Abbey Road Currently being refurbished Surplus Assets Redevelopment properties, Sutherland, Arthur and Housing Market renewal Marsh Streets properties 166 Rawlinson Street Sale agreed The Mall, Duke Street Awaiting future development There are 7 surplus assets altogether. The 3 in the table above plus: Location Current position Greengate Mill Cleared site awaiting future development 2 Holker Street Acquired for redevelopment Land at Buccleuch Street Cleared site Site at Buccleuch Court Cleared site Page 19
  20. 20. Asset management plan 2008-2013 PPI 2 – Sustainability of assets All of the Council’s assets in DCLG categories A to C are judged to be in a sustainable condition with the exception of those listed below. The target by 2013 is to have no unsustainable properties. Askam Community Centre Under consideration for disposal Toilet Block - Duddon Road – Askam There is a rolling programme of toilet block refurbishment as part of Toilet Block - Nelson Street – Dalton the Council's Capital Programme. PPI 3 – Occupancy of commercially let property The Council aims to grow the occupancy of its commercially let properties. The target by 2013 is to grow to 90% in the medium term, increasing to 95% in the longer term: % 2006-07* 2007-08 to 2009-10 2010-11 to 2012-13 Occupancy 88 90 95 * The base line from 2006-07 is the actual occupancy rate in that year. PPI 4 – Growth of revenue earning asset base The Council aims to grow the non-operational revenue earning asset base. The target is to grow by an average of 10,000 square feet per year over the period 2007-2013: Square feet 2007-08 2008-09 2009-10 2010-11 to 2012-13 Increase 15,000 20,000 20,000 5,000 (yet to be identified) PPI 5 – Efficient use of assets over time The following table sets out the base line information for 2006-07 for the main Council buildings. It is intended these are monitored for improvement year on year – these are measured on a per square metre basis. The target by 2013 is to reduce reactive repair and utility costs by 5%; equivalent to around 1% per year. Page 20
  21. 21. Asset management plan 2008-2013 PPI 6 – Year on year improvements in energy efficiency The following table sets out the base line information for 2006-07 for the main Council buildings. It is intended these are monitored for improvement year on year – these are measured on a per square metre basis by kilowatt hour (kWh). The target by 2013 is to reduce consumption by 10%; equivalent to around 2% per year To the end of 2006-07, consumption increased slightly, by 46,000 kWh (1.94%): Electricity Consumption Town Hall, Forum 28 and Park Leisure Centre 225,000 200,000 2005-06 kWh 2006-07 175,000 150,000 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar To the end of 2006-07, consumption has reduced by 227,000 kWh (23.94%): Gas Consumpton - Main Sites 1,000,000 800,000 600,000 2005/06 kWh 400,000 2006/07 200,000 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Page 21
  22. 22. Asset management plan 2008-2013 PPI 7 – Gross non-operational assets income The Council aims to grow its income from non-operational assets as a response to falling levels of government grant and to avoid unreasonably high levels of increase in Council Tax. The Council has set a target of £65,000 additional income in this category for 2008-09 in the Revenue Budget, this will be reviewed annually. The table below show the gross non-operational assets as income, year on year growth and expressed as a percentage of Council Tax: 2005-06 2006-07 2007-08 2008-09 Actual Actual Projection Outturn Gross income £1,104,478 £1,376,464 £1,431,881 £1,621,098 Growth % Base line 25% 4% 13% Income as a % of 28% 34% 35% 39% Council Tax The target by 2013 is to increase gross income from non-operational assets by 10% of the 2008-09 baseline; equivalent to £40,000 year on year, £160,000 in total. The non-operational asset rental income is shown in the charts below, split by property type: Page 22
  23. 23. Asset management plan 2008-2013 PPI 8 – Car parking usage The Council aims to let 100% of the contract spaces. For 2006-07, 100% of the contract spaces were let. For pay and display spaces the Council aims to increase the proportion of spaces sold year on year. For 2006-07 57% of the total available spaces were sold, each car park is shown separately in the table below: Car Park Available pay and display spaces sold in 2006-07 Whittaker Street 87% Hall Street 63% Fell Street 60% Market Street 59% Oldham Street 59% Portland Walk 51% High Street 43% The available pay and display spaces for each car park are calculated by multiplying up the following elements: • the number of available spaces; • the hours a day that the car park is open; • the 6 days a week that the car parks are available; and • the 52 weeks for the year (adjusted for bank holidays). This is then compared to the actual pay and display tickets sold. Comparing the tickets sold against the tickets available, results in the percentage of space sold as shown in the table above. The target by 2013 is to increase the spaces sold by 10% from this base line; equivalent to around 2% per year. Page 23
  24. 24. Asset management plan 2008-2013 Appendix 1 - Land and building property assets This is a preliminary list and is included for information only. Category Group Asset Name Grade Sustainable? Administrative Assets Admin Building Town Hall B Y Admin Building Changing Rooms, Tummerhill C Y Admin Building Pavilion, Barrow Park A Y Admin Building Cemetery Lodge & Offices C Y Admin Building Cavendish House Lease Renewal due 1/4/09 A Y Non-Operational Assets Non-Op Building Andrew's Way Industrial Units B Y Non-Op Building Phoenix Park Business Units A Y Non-Op Building Emlyn Hughes House A Y Non-Op Building 77-79 Duke Street D N Non-Op Building Salthouse Depot B Y Non-Op Building 1 - 9 Lawson Street B Y Non-Op Building The Arches - Michaelson Road C Y Non-Op Building 76 Duke Street A Y Non-Op Building Portland Walk Arcade ("The Ginnell") A Y Non-Op Building Burlington House, Michaelson Road B Y Non-Op Building Craven House, Michaelson Road A Y Non-Op Building Waterside House A Y Non-Op Building Piel View House, Barrow Park B Y Non-Op Building Garage Site, Holker Street C Y Non-Op Building Ship Inn, Piel Island D N Non-Op Building Dalton Road Shops B Y Non-Op Building Staircase & Room at Lesser Kings Hall D N Non-Op Building Training Centre, North Scale C Y Non-Op Building 104 Abbey Road D N Non-Op Building ARC Furniture Store, Ironworks Road B Y Non-Op Building Unit 8 James Freel Close A Y Non-Op Building Units 9 & 10 James Freel Close A Y Non-Op Building Library, Central Drive, Walney B Y Non-Op Building Retail space, Walney Community Centre A Y Non-Op Building Former Police Station, Walney Community Centre B Y Non-Op Building Office, Walney Community Centre C Y Non-Op Building Egerton Court - Phase 1 B Y Non-Op Land Land at Cornmill Crossing B Y Weatherguard Depot Salthouse Road - Marina Village Non-Op Land B Y Assembly Non-Op Land Land Hindpool Road, former Dockers' Warehouse C Y Non-Op Land Land Cornmill Sidings/Hindpool Road (Lucas) B Y Non-Op Land Land Cornmill Sidings/Hindpool Road (Quinn) B Y Non-Op Land Land, ex Sita Depot, Hindpool Road B Y Non-Op Land Advertising Site, Yarlside Road B Y Non-Op Land Amphitheatre Site B Y Non-Op Land Anson Street - Duke Street Retail Investment - Barrow B Y This is a preliminary list and is included for information only. Page 24
  25. 25. Asset management plan 2008-2013 Category Group Asset Name Grade Sustainable? Non-Operational Assets Non-Op Land Open Space Argyll Place B Y Non-Op Land Barrow Port Land B Y Non-Op Land Open Space Barton Street B Y Non-Op Land Emlyn Street Sites (Ex Barton Townley & CN Group) B Y Non-Op Land Land, James Freel Close B Y Land, James Freel Close (Bessemer Way 1 - SLG Lease Non-Op Land B Y Surrender) Non-Op Land James Freel Close - plots 1 - 5 B Y Non-Op Land Playing Field, Cavendish Dock Road B Y Non-Op Land Church Street / Dalton Rd (Behind Kings Arms) B Y Non-Op Land Garage Site, Durham Street B Y Non-Op Land Garage Site gulping Walk/Blyth Rise B Y Non-Op Land Grazing Land, North Walney B Y Non-Op Land Hindpool Cleared Area B Y Non-Op Land Hindpool - Lyon Street (Evens) B Y Non-Op Land Hindpool - Howard Street - Barrow B Y Non-Op Land 37 Lyon Street - Barrow B y Non-Op Land Hindpool Street Lighting & Environmental Improvements B Y Non-Op Land Hindpool Road Highway Enabling B Y Non-Op Land Duke Street, Cavendish Street Improvements B Y Non-Op Land Duke Street, Ramsden Square Improvements B Y Non-Op Land Duke Street, Hartington Street Improvements B Y Non-Op Land Dalton Road South, Improvements B Y Non-Op Land Land & Bowling Green, Salthouse Road B Y Non-Op Land Land 80/82 Duke Street B Y Non-Op Land Land Adj & fronting 9-19 Tideway Drive, Walney B Y Non-Op Land Land Adj 48 Andreas Ave, Walney B Y Land Adj Hall Street Car Park (Junction Cavendish Non-Op Land B Y Street/Allison Street) Non-Op Land Land Adj Nat West Bank, Ramsden Square B Y Non-Op Land Land Adj High Duddon Close, Askam B Y Non-Op Land Land Adj 5 Leighton Drive, Walney B Y Non-Op Land Land Adj The Reading Room, Central Library B Y Non-Op Land Land Albert Street B Y Non-Op Land Land at rear 60-65 Foxfield Road B Y Land Ashburner Way / Ironworks Road - Forge Close Non-Op Land B Y Industrial Units Non-Op Land Land at Abbotswood B Y Non-Op Land Land at Atkinson's Yard B Y Non-Op Land Land at Beach Street, Askam B Y Non-Op Land Land at Broughton Road, Dalton B Y Non-Op Land Land at Chapel Street, Dalton B Y Non-Op Land Land at Derwent Bank, Walney B Y Non-Op Land Land at Furness Abbey, Barrow B Y Non-Op Land Land at Hope Street, Barrow B Y Non-Op Land Land at Junction Carr Lane & Ocean Road B Y Non-Op Land Land at junction Dryden/Shakespeare Street B Y Non-Op Land Land at Junction Oak Lea Road/Park Road B Y This is a preliminary list and is included for information only. Category Group Asset Name Grade Sustainable? Page 25
  26. 26. Asset management plan 2008-2013 Non-Operational Assets Non-Op Land Land at Junction of Lord Street/Ulverston Road, Dalton B Y Non-Op Land Land at Mill Beck, Red Waters B Y Non-Op Land Land at Millwood (Woodland Green) B Y Non-Op Land Land at Piel View Grove B Y Non-Op Land Land at Rakesmoor Lane B Y Non-Op Land Land at Rear of Central Drive B Y Non-Op Land Land at Rear of Broadway B Y Non-Op Land Land at Rear of Park Avenue B Y Non-Op Land Land at Schneider Road (ex Allotments) B Y Non-Op Land Land at West Row B Y Non-Op Land Land at Whinsfield Place, Askam B Y Non-Op Land Land between 16 & 18 Andreas Avenue B Y Non-Op Land Land Dowdales, Dalton B Y Non-Op Land Land at Flass Lane (Hospice Site) B Y Non-Op Land Land Furness Golf Links, West Shore, Walney B Y Non-Op Land Land at Harcross Site B Y Non-Op Land Land Holy Croft/Croslands Park B Y Non-Op Land Land in Church Street/Shore Street B Y Non-Op Land Land in Ferry Road, Walney B Y Non-Op Land Land Low Bank (Wylock Marsh) B Y Non-Op Land Land Mill Beck, Barrow B Y Non-Op Land Land Newbarns Road/Abbotsvale B Y Non-Op Land Land Newby Terrace B Y Non-Op Land Land Red River Club B Y Non-Op Land Land at Church Street, RSPCA Site B Y Non-Op Land Land Saltmarsh Caravan Park B Y Non-Op Land Land to West of Carr Lane B Y Non-Op Land Ormsgill Playing Fields, Schneider Road B Y Non-Op Land Part of Wheatsheaf Hotel Car Park, Hindpool Road B Y Non-Op Land Playing Fields, Tummerhill, Biggar Bank B Y Non-Op Land Plots of Land - A590 Park Road B Y Non-Op Land Raglan Street Open Space B Y Non-Op Land Saddler's Field, Biggar Bank B Y Non-Op Land Bridge Road Site (former West Shop - site 13) B Y Non-Op Land Site at Greengate Street B Y Non-Op Land Site of 2 Plots of Land, High Duddon Close, Askam B Y Non-Op Land Site of Hawcoat Quarry B Y Non-Op Land Red River Club Site B Y Non-Op Land Land Ramsden Street, Greengate Street B Y Non-Op Land Site of Landing Ramp/Slipway, Promenade B Y Non-Op Land Site of Newton Village Hall B Y Non-Op Land Site of Public House, Mill Lane B Y Non-Op Land Site of Ramsden Hall & Technical College B Y Non-Op Land Sports Facilities - Park Vale B Y Non-Op Land Squash Club Site - St Georges Square B Y Non-Op Land Emlyn Street Sites (Ex T Ward) B Y Non-Op Land The Rootings - Rating Lane East B Y This is a preliminary list and is included for information only. Category Group Asset Name Grade Sustainable? Non-Operational Assets Page 26
  27. 27. Asset management plan 2008-2013 Non-Op Land Thorncliffe Youth Fields, Cliffe Lane B Y Non-Op Land Vacant Land, Blake Street B Y Non-Op Land Miscellaneous parcels B Y Car Parks Car Parks Building Portland Walk Roof Top, Barrow C Y Car Parks Land Amphitheatre, Barrow C Y Car Parks Land Dalton Road/Strand 1, Barrow B Y Car Parks Land Earnse Point, West Shore, Barrow C Y Car Parks Land Fell Street, Barrow B Y Car Parks Land Fisher Street/Strand 2, Barrow B Y Car Parks Land Hall Street, Barrow B Y Car Parks Land Market Street, Barrow B Y Car Parks Land Oldham Street, Barrow B Y Car Parks Land Slater Street, Barrow A Y Station Approach - Junction Abbey Road/Holker Street, Car Parks Land B Y Barrow Car Parks Land Strand (Horrocks & Cross), Barrow B Y Car Parks Land Whittaker Street, Barrow B Y Car Parks Land Lime Street, Dalton B Y Car Parks Land Nelson Street, Dalton B Y Car Parks Land Askam C Y Car Parks Land High Street, Barrow - Leased from CN Group Ltd B Y Tudor Square, Dalton - Leased from Private Landlord - Car Parks Land B Y under negotiation Surplus Assets Redevelopment Properties, Arthur Street, Marsh Street, Surplus Building D N Sutherland Street Surplus Building No 2 Holker Street C Y Surplus Building 166 Rawlinson Street - Barrow (Corner Buccleuch St) D N Surplus Building The Mall - Furness House - Barrow D N Surplus Land Greengate Mill, Greengate Street B Y Surplus Land Land at Buccleuch Street B Y Surplus Land Site at Buccleuch Court B Y Operational Assets Operational Building Forum 28 B Y Operational Building Dock Museum B Y Operational Building Leisure Centre B Y Operational Building Leisure Centre Studio B Y Operational Building Market Hall, Mall & Shops B Y Operational Building Crematorium B Y Operational Building 242/244 Dalton Road A Y Operational Building Barrow Park Bandstand A Y Operational Building Barrow Park Nursery & Greenhouses B Y Operational Building Barrow Park Office Accommodation B Y Operational Building Barrow Park Plant Storage Sheds B Y This is a preliminary list and is included for information only. Category Group Asset Name Grade Sustainable? Operational Assets Operational Building Workshop, Canteen & Store, Barrow Cemetery C Y Operational Building Community Centre - Abbotsvale A Y Page 27
  28. 28. Asset management plan 2008-2013 Operational Building Community Centre - Askam C N Operational Building Community Centre - Central Drive, Walney C Y Operational Building Community Centre - Hawcoat C Y Operational Building Community Centre - Millstone Avenue, Ormsgill A Y Operational Building Community Centre - Roose A Y Operational Building Community Centre - Walney C Y Operational Building Dog Kennels C Y Operational Building Toilet Block -Earnse Bay C Y Operational Building Toilet Block - Ireleth Cemetery & Store B Y Operational Building Toilet Block - Duddon Road, Askem C N Operational Building Toilet Block - Duke Street, Askam C Y Operational Building Toilet Block - Hall Street, Barrow A Y Operational Building Toilet Block - Nelson Street C N Operational Building Toilet Block - Piel Island C Y Operational Building Toilet Block - Roa Island A Y Operational Building Toilet Block - Roanhead C Y Operational Building Toilet Block - Tudor Square, Dalton C Y Operational Building Toilet Block - Amphitheatre C Y Operational Land Artificial Pitch - Leisure Centre B Y Operational Land Playground - Vulcan Road/Brathay Crescent B Y Operational Land Playground - Keats Close B Y Operational Land Playground - Newton B Y Operational Land Playground - Askam B Y Operational Land Playground - Stanley Road B Y Operational Land Playground - Church Street B Y Operational Land Playground - Lawson Street B Y Operational Land Playground - Barrow Park A Y Operational Land Playground - Rating Lane A Y Operational Land Playground - Buttermere Drive A Y Operational Land Playground - Piggy Lane A Y Operational Land Site of Playground - Newton B Y Operational Land Site of Playground - Brook Street B Y Operational Land Playground - Lodge Green, Ormsgill A Y Operational Land Playground - Abbotsvale A Y Operational Land Playground - Manchester Street B Y Operational Land Vickerstown Park & Playground B Y Operational Land Site of Ocean Road Community Hall, Court Gardens B Y Related documents Revenue Budget Capital Programme Treasury Management Strategy The Council’s Constitution The Community Plan Corporate Business Plan Performance Plan Medium Term Financial Plan Building on Strong Foundations (DCLG publication) Page 28

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