CORPORATE ASSET MANAGEMENT PLAN 2006/07
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CORPORATE ASSET MANAGEMENT PLAN 2006/07 Document Transcript

  • 1. CORPORATE ASSET MANAGEMENT PLAN 2006/07
  • 2. Corporate Asset Management Plan 2006/07 1.0 Introduction 2.0 Scope of the Plan 3.0 Background to Mendip District Council 3.1 The Area 3.2 Employment & Economy 3.3 The Housing Market 3.4 Our Vision and Priorities 3.5 Links to Corporate Priorities 3.6 Political Decision Making 3.7 Management Structure 4.0 The Roles in Asset Management 4.1 Corporate and Strategic Asset Management 4.2 Reporting Structure for Asset Management 5.0 Consultation & Links With Others 5.1 Consultation 5.2 Links to Other Strategies 5.3 Partnership Working 6.0 Data Management 6.1 Asset Register 6.2 Land & Property Audit 6.3 Geographical Information System (GIS) 6.4 Asset Management and E-Government 7.0 Programme / Plan Development And Implementation 7.1 Strategic Asset Planning 7.2 Establishing Asset Needs 7.3 Current Asset Needs 7.4 Disposal of Surplus Assets 7.5 Asset Acquisitions 7.6 Future changes to the Fixed Asset Register 7.7 Asset Condition Survey 8.0 Performance Management 8.1 Performance in Relation to Asset Management 8.2 Comparison of Performance 8.3 Progress against Asset Management Projects for 2004/05 8.4 Progress against the Asset Management Improvement Plan 2004/05 9.0 Asset Management Related Projects / Improvements For 2005 /06 9.1 Current Programme of Asset Management Projects 9.2 Improvement Plan 2005/06
  • 3. 1.0 INTRODUCTION Since 2003/04 when the Council’s Corporate Asset Management Plan & Capital Strategy achieved a “good” accreditation the Council have continued to produce an annual Corporate Asset Management Plan (CAMP), as this is a good tool to measure how it is managing its assets. The CAMP is agreed by Corporate Management Team, Scrutiny Board and the Council Cabinet. Some information is provided through Service Planning (See Appendix A) and the project and improvement plans are updated regularly by the Asset Management Working Group, this is monitored by the Corporate Asset Management Team, with regular updates going to the various Committees. 2.0 SCOPE OF THE PLAN The Corporate Asset Management Plan details existing asset management arrangements, project plans, changes during the past year and future plans. 3.0 BACKGROUND TO MENDIP DISTRICT COUNCIL 3.1 The Council Mendip lies in the north eastern part of the county of Somerset, to the south of the cities of Bath and Bristol. The district covers an area of some 285 sq. miles and is mainly rural in character, with four market towns – Frome, Glastonbury, Street and Shepton Mallet and the City of Wells, with an estimated population of the district is 103,865 (Office of National Statistics - 2001). Mendip District Council is classed as a “smaller” authority because its net revenue budget is less than 35m and its asset value is below 25m. The Council offices are based at the centre of the area it serves, in Shepton Mallet, the offices accommodate the majority of its 200 (approximately) employees with some of our principal partners and contractors. A distinctive feature of the way that the Council provides its services is our innovative approach to working in partnership and contracting. This approach has added to the business expertise available to our customers, whilst at the same time creating efficiency savings across the organisation. 3.2 Employment The total number of employed people in the Mendip district is approx 39,481 (34%) plus a further 8,800 people (14%) who are self employed (Nomis website 2004), with most people employed in Distribution, Hotels and Restaurants with 11,526 people employed in this industry. Unemployment standing at approx 788 of which is 1.2% (National Unemployment Rate - June 2006) this is compares with the County which stands at 1.2% and the South West region that stands at 1.6%. In 2004 there were 4375 VAT Registered Companies in the Mendip district. 1
  • 4. 3.3 Housing Market There are currently 46086 houses in the Mendip district (Council Tax Register), this has risen from 42881 since the 2001 census. The average house price is £180,526 (Land Registry Website March 2006) , with prices slightly decreasing over the past two years. 3.4 Our Vision and Priorities The Council’s Vision: “To provide freedom and encouragement for individuals to satisfy the aspirations that they have for themselves and their families, within the security and obligations of a stable and law abiding district” In addition the following Priorities were also approved, for each Priority Area there are a number of objections: • Better Financial Management • Safer Cleaner Streets • Greater Prosperity 3.5 Links to Corporate Priorities The current Priorities have effectively embraced the Priorities of the previous administration and are linked to the authority’s asset management processes in the following ways: The Priorities were agreed following extensive public consultation and an analysis of needs within the District, are listed below and linkages are identified to corporate asset management: • Better Financial Management • Direct link in all areas of asset management and management of Capital Strategy / Capital Programme • To be aware of the implications on assets of applying e-government initiatives to all service areas, and to recognise how the management of assets can contribute to the delivery of Mendip’s target for electronic service delivery. • To recognise and use available assets to assist the effective delivery of community planning across the district. • To be aware of how the management of Mendip’s assets assists in achieving high standards in local governance. • To consider how Mendip’s assets can be used to deliver Best Value and continuous improvement in all service areas including asset management. 2
  • 5. • Safer Cleaner Streets • To consider the general use of available assets within Glastonbury and Frome to assist delivery of the key Glastonbury SRB Project and the SWRDA Partnerships in Frome and at Morlands.. • To recognise and use available assets to assist the effective delivery of community planning across the district. • To consider the general use of available assets within Shepton Mallet to assist regeneration issues in the town. • To consider the general use of available assets to assist the review of the Council’s Transport Policy with partners. • To consider how Mendip’s assets can be used to assist delivery of the Community Safety Strategy Action Plan • To consider the use of available assets to assist delivery of the Health Improvement Programme. • Greater Prosperity • To recognise and use available assets to assist the effective delivery of community planning across the district. • To consider the use of local goods and services for the maintenance of assets. • To consider the general use of available assets within Glastonbury and Frome to assist delivery of the key Glastonbury SRB Project and the SWRDA Partnerships in Frome and at Morlands.. • To consider the general use of available assets within Shepton Mallet to assist regeneration issues in the town. • To consider the general use of available assets to assist the promotion of local goods and services. • To consider how Mendip’s assets can be used to assist delivery of the Housing Strategy Action Plan • To consider the use of available assets to assist delivery of the Health Improvement Programme. These Priorities have been translated into SMART (Specific, Measurable, Achievable, Realistic and Timely) outcomes through consultation between the Cabinet and Officers. These are used to inform the Service Planning process. In turn, these outcomes, and indirectly the Priorities, will be monitored by the Corporate Management Team, the Cabinet and the Scrutiny Board. 3.6 Political Decision Making For approx. 5 years the Council have operated a Cabinet / Scrutiny model of political management. Cabinet members are assigned a Portfolio, and work individually with their appropriate Business Unit Manager, with each Unit being represented by a Portfolio Holder and in some cases deputy Portfolio Holders who are responsible for specific areas. The Leader of the Council does not hold a specific Portfolio, but instead has a “roving” brief. Councillor Paul Treby is the Senior Portfolio Holder for Corporate Finance & Resources Unit, with 2 Portfolio Holders, Councillor Elizabeth John is responsible for Customer Services, Advice & Information & Corporate Support, Strategy & Research . Whilst Councillor John Parham who is responsible for Asset Management on 3
  • 6. behalf of the Council, where the accountability for strategic asset management lies. Whilst the structure of the scrutiny side has recently been reviewed, the current political structure has now been approved, having been designed to maximise political leadership and citizen empowerment. The Council has 46 elected Members in 35 Electoral Wards, there have been two bye elections during the Spring of 2006 and the political make-up has changed since last years plan with: • 27 Conservatives • 15 Liberal Democrats • 4 Independents 3.7 Management Structure As a smaller authority, Mendip has limited capacity to embrace new work without fundamental change. Internally, the Council must continue to ensure that there are sufficient resources available to support service delivery, whilst continuing to meet the expectations and demands of the public and Central Government. For approx. 3 years the Council have operated a Corporate Management Team this comprises of: • Chief Executive • Business Unit Managers (3 No) Supplemented by: • Corporate Financial Adviser / S151 Officer • Personnel Adviser This structure is designed to focus more clearly on the Council’s new priorities, and seeks to achieve the Council’s identified priorities through effective, efficient and economic cross service working. The Mission Statement of the Corporate Management Team is as follows: "To effectively lead and manage Mendip District Council, and in so doing to ensure that resources available to the Council are utilised in the most effective and efficient manner in order to secure the achievement of the Corporate Vision and identified Priorities." The role of the Corporate Management Team in respect of asset management is as follows: • To ensure that the Asset Management Plan is informed by, and supports, the Service Plans and Strategic Priorities • To ensure a corporate and consistent approach to asset management across all services 4
  • 7. • Receives reports on performance relating to asset management • Considers recommendations for asset strategies • Considers Appraisal Reports for capital funding 4.0 ROLES IN ASSET MANAGEMENT 4.1 Corporate and Strategic Asset Management Within the current structure, assets are not managed as a single function. Whilst the strategic and corporate management of the Council’s assets is the responsibility of the Corporate Finance & Resources Business Unit, the day to day operational management of specific assets (e.g. Car Parks, Public Conveniences, etc) is carried out across a range of service areas. In terms of the operational management of the range of corporate assets, these are as follows: • Business Unit Manager – Corporate Finance & Resources (Stuart Brown) The Council Offices, Sewage Treatment Plants, hard surface areas and miscellaneous land assets remaining in Council ownership following LSVT • Business Unit Manager - Community & Regeneration (Malcolm Williams) Leisure Facilities, Swimming Pools, Car Parks, Part of Morlands site, Glastonbury. (A key strategic development site) • Business Unit Manager – Planning & Environment (Charles Uzzell) Play Areas, Open Spaces, Trees, Cemeteries, Closed Churchyards, Public Conveniences, Bus Shelters, Street Furniture Corporate Property Officer In October 2005 the role of the Corporate Property Officer was transferred to from the Corporate Finance & Resources Business Manager to the Strategic Asset Manager, this job was then renamed to Corporate Property Officer. The Corporate Finance & Resources Business Unit Manager now acts as the strategic asset management champion on CMT, and the Asset Management Portfolio Holder to act as the champion on Cabinet. The role of Corporate Property Officer includes: • identifying and auditing all Council land and property assets • periodic reviews of the property portfolio • developing and implementing a range of policies and strategies for strategic and operational asset management, including disposal and acquisitions. • promoting good asset management practices across the Council • leading the Corporate Asset Management Team and Asset Management Working Group. • Ensuring the Asset Management Plan is maintained and updated 5
  • 8. Strategic Asset Management Team The Corporate Asset Management Group meet on a quarterly basis, it monitors performance against the CAMP project plans and improvement plan and review the work of the Working Group. The membership of the team has been changed slightly and now comprises of the following officers: • Business Unit Manager (Corporate Finance & Resources) - Stuart Brown • Service Manager (Community Services) – Stuart Cave • Asset Maintenance Officer - Stuart Finney • Corporate Property Officer – Andrea Kent • Corporate Financial Adviser - Peter McKenzie • Financial Services Manager – Tessa Stobbs • Service Manager (Street & Landscape Services) - Rob Thurston The aim of the Corporate Asset Management Team continues to be as follows: “To monitor the management of the corporate asset portfolio ensuring this is done in an effective, efficient and economic manner that meets both the needs of the local community and the Council where reasonably practicable.” Underpinning this Aim, the Team is working towards the achievement of the following objectives: 1. To oversee the comprehensive asset portfolio for Mendip District Council 2. To monitor the development and implementation of a range of strategies and policies to support the effective management of corporate assets, including those to address: a) The purchase of assets as investment opportunities b) The realisation of asset potential through the sale or lease of assets as appropriate 3. To monitor the development and implementation of an annual Capital Strategy, taking into account the Medium Term Financial Plan, the Housing Strategy and other relevant Corporate Strategies. 4. To monitor the development and implementation of corporate planned maintenance programmes. 5. To monitor the Project and Improvement Plans identified in CAMP. 6. To report to the Corporate Management Team, the Cabinet and Scrutiny Board on issues relating to Corporate Asset Management, including performance monitoring. 8. If / when the need arises to set tasks for the working group to undertake Asset Management Working Group The Asset Management Working Group meets on a quarterly basis. This group have improved communications between the various officers involved in asset related functions, identified areas of over lap and encouraged more corporate thinking. • Corporate Property Officer – Andrea Kent • Team Leader Street Scene Services - Cathy Day • Asset Maintenance Officer – Stuart Finney • Car Parks Manager – Nicola Keyworth Wright 6
  • 9. • Leisure Officer – Ian Mundy The aim of the Asset Management Working Group continues to be as follows: “To work together to manage the corporate asset portfolio in an effective, efficient and economic manner that meets both the needs of the local community and the Council where reasonably practicable.” The objectives of the group are as follows: 1. To work together to oversee the comprehensive maintenance programme for all corporate assets. 2. To develop, implement and monitor operational policies and strategies for all Council assets 3. To undertake tasks set by the Strategic Asset Management Team 4. To work together to solve problems, discuss ideas and generally improve communication between all officers dealing with the day to day, strategic and maintenance of Council assets Portfolio Holder At a political level, asset management is the responsibility of the Cabinet and Portfolio Holder Councillor John Parham, decisions are made within the overall policy framework set by the Council. There is however an exception to this whereby the Community Partnerships are able to make ‘executive’ decisions with regard to the sale of assets within their area, where these do not warrant full Cabinet consideration. Under both of these processes, the decision can be “called in” by the Scrutiny Board. 4.2 Reporting Structure for Asset Management In terms of the reporting relationships, these are as follows: a) The Corporate Property Officer will provide update reports to the following: • Corporate Management Team on a quarterly basis. • Cabinet on a ½ yearly basis • Community Partnerships – year end. During 2005 the Chairman of Scrutiny advised that they no longer wished to receive update reports on Asset Management. b) Day to day operational issues relating to asset management are the responsibility of the appropriate Service Manager / Portfolio Holder. c) The Corporate Asset Management Team will report to the Cabinet and Scrutiny Board as appropriate, on issues relating to the monitoring of strategies / policies etc. d) The Asset Management Working Group will report when necessary to the Corporate Asset Management Team / Cabinet and Scrutiny Board. 7
  • 10. e) Strategic Asset Management is an identified function of the Corporate Finance & Resources Business Unit, and as such is incorporated into the annual Service Plan. f) Similarly, specific aspects of operational asset management (e.g. Car Parks, Public Conveniences, and Parks etc) are incorporated into the appropriate Service Plans (e.g. Planning & Environment etc). 5. CONSULTATION & LINKS WITH OTHERS 5.1 Consultation Mendip continues with a positive approach to consultation across services areas. The Consultation Strategy is currently being reviewed and it’s hoped that this will be adopted by the end of the year. Following a Communications Audit a draft Communications Strategy has been produced and is currently going through the adoption process. In last years plan it was identified that the Leisure Contractor in conjunction with the Somerset Activities Sports Partnership planned to undertake a recreational facilities audit which included questions relating to the quality of each facility. This has not yet been completed and may now merge into a Leisure Facilities Review. During 2005/06 the Street & Landscape Services Section undertook major survey, this covered a number of areas including street cleansing, street furniture grass areas, public toilets and play equipment etc. 2000 questionnaires were sent out to the Mendip residents and 454 to Town and Parish Councillors of these 997 residents responded and 200 Town and Parish Councillors were returned. Also in January 2006 the Bereavement Officer sent out a satisfaction survey to 131 users of the Cemeteries. Although not dealing with assets, it did ask people if they were satisfied with the burial service provided (results attached). 69 questionnaires were received, of these 52% of users stated they were satisfied with the service provided. 5.2 Links to Other Strategies Previous CAMP’s have included a number of important corporate strategies which it recognises links to strategic asset management including Procurement Strategy, Homelessness Strategy etc. In the 2005/06 CAMP the following emerging strategies were identified for that year, please see below the current position for each: Play Strategy The Play Strategy was in its development stages, however, this was put on hold until the lead officer post could be filled. The Council have recently employed a Consultant to assist in the development of the strategy. 8
  • 11. Mendip Open Space Strategy The development of the Open Space Strategy is currently on hold, until the lead officer post can be filled, recently the Council have employed a Consultants to assist in the development of the strategy. A number of other asset related Strategies have been adopted by the Council during 2005./06 including: Closed Churchyard Walls Strategy A Churchyard Wall Strategy has been developed and adopted by the Street & Landscape Services Section. Markets Strategy The Strategy has been developed and adopted by the Street & Landscape Services Section to assist the Council in the future development of stall markets A number of new asset related Strategies are expected to be developed and adopted during 2006/07 and beyond including: Cemeteries Strategy A management plan is currently being finalised that looks at a number of issues including provision and capacity within all three cemeteries, this will result in the development and adoption of a Cemeteries Strategy which will look to resolve the issues. Street Light Strategy A street lamp survey commenced in April 2006 which will identify all the Council’s lamps. Once this is complete a Strategy will be developed and adopted on how the Council manages and maintains their Street Lights. (2007/08) Car Parks Strategy A Car Parks Strategy will be developed following on from the Car Park Working Group but no timescale has been agreed. Major Leisure Facilities Strategy The Council has recently commissioned a Leisure Facilities Review, it is expected this will lead to the development and adoption of a Major Leisure Facilities Strategy (2007/08) 5.3 Partnership Working Mendip continues to be committed to working with others in order to deliver improved services to local residents through contracts with the private sector and in partnership with other public bodies, and acknowledges the benefits that this has to securing the achievement of its Priorities. The Council have a number of asset related contracts and partnerships, including the following: 9
  • 12. Interpublic Urban Systems UK Ltd., The Council work with Interpublic to provide a beacon public convenience in each of the 5 main towns. Connaught Environmental Ltd This contract delivers the street cleansing across the district and includes street sweeping, litter bin emptying etc. Connaught also work in partnership with the Council to proactively educate the general public though environmental awareness campaigns. Western Community Leisure The Council work in partnership with the contractor to provide Mendip major leisure facilities Capita The Council have appointed Capita to work in partnership for a period of 12 years to deliver council services including finance, IT and printing & stationery, this utilises shared office accommodation. The contract also delivers 65 regeneration jobs which will be a service centre accommodated on the Mendip campus. REALM The Council work in partnership with REALM to provide some of the car parking in Street. Somerset County Council The Council works with the County Council to provide dual use leisure provision on school sites. The Council is currently assisting the County Council to secure new office accommodation is Shepton Mallet. Other District Councils The Council is currently working in partnership with South Somerset District Council to procure a new valuation service. Town Councils / Parish Councils The Council continues to work with Town and Parish Councils, during 2005/06 the transfer of a number of allotment sites and other public open spaces have been completed. The Council have also worked with several of the Town Councils to reopen a number of closed public conveniences. Somerset Waste Partnership The Council work with the County Council and the 4 other District Borough Councils across Somerset to coordinate recycling and refuse collections, treatment and disposal. 6.0 DATA MANAGEMENT 6.1 Asset Register Mendip’s current Asset Portfolio (including categories and values) is held on an Asset Register Database, this includes details of depreciation, leases, 10
  • 13. remaining life, net book value, etc. A rolling programme of re-valuation has been implemented to ensure that all assets a re re-valued once every five years. The Council undertook a reconciliation between the information held on both the Asset Register and the Geographical Information System in 2004, since then this practice has continued on an annual basis as the Asset Register is integrated with Mendip’s financial information systems through reconciliation with the Balance Sheet. Also a simple system has been put in place to ensure that the Finance Section are made aware of any changes to the Asset Register (i.e. disposals). The Council currently has 97 assets on its Fixed Asset Register (See Appendix 1 – Summary of Assets) The Council also own in the region of 2100 other assets including land, footpaths other small buildings. During 2005/06 the Council spent approx £270,000 on general maintenance of its assets. 6.2 Land & Property Audit In March 2006 the Corporate Property Officer completed a Land & Property Audit for all the Councils assets across the district. This totals approximately 2000 individual “pockets” of land. Each asset has been visited, photographed and information has been collected on the land, this includes information on the surface type, street furniture, vehicular accesses, walls, fences, gates and a simple condition study. The Land & Property Audit has assisted in the collection of information including the location of street furniture, boundary walls and fences, utilities e.g. manhole covers, telegraph poles etc., and there condition, it also records the location of trees on Council land. 6.3 Geographical Information System (GIS) The Council continues to plot all its land and property assets onto a GIS, each asset is assigned a unique internal reference number. The details collected as part of the Land & Property Audit i.e. surface type, street furniture, vehicular accesses, street furniture etc. information on boundaries and a simple condition study are all recorded on a Access Database which is linked to the GIS system. (See Appendix 2 – For an example of how this information is identified, using GIS). The GIS information has been shared with Street & Landscape Services and other service areas through Planweb, and the data has been used to load the Staysafe system. The GIS system is also used to record leases, licences, Land Disposal Applications and land sold and assets sold by the District Council. 11
  • 14. Mendip is constantly improving the content of its NLPG (National Land and Property Gazetteer) extract which currently holds property detail only – land parcels will also be required for its effective use in respect of the management of the asset portfolio. The appropriate UPRN from the NLPG will be assigned to all property and land assets once Mendip has completed its migration to OS Mastermap has been completed. The Corporate Property Officer continues to strive to improve the types and levels of data held by the Council. During 2005 the Council planned to link the GIS system to Staysafe but due to technical problems this did not happen. However, it is envisaged this will take place during 2006/07. The Corporate Property Officer is a member of the corporate “GIS User’s Group” which was established in 1997 has continued to develop since that time. The purpose of this Group is to review GIS development needs and assess the need for training, either corporately, within specific Service areas or individually. 6.4 Asset Management and E-Government Mendip continues to recognise the positive impact that the E-Government agenda can have on the improvement of a number of services. In respect of the asset management service, work has been completed on updating and ensuring of the Asset Register held on the GIS system. This information will be provided online for users to check the ownership of Council land and will be used by Customer Services representatives to deal with complaints from the general public and for members of the public to submit an online complaint or notification regarding some aspect of the service, the Council is now awaiting the for the software to provide this information, this is expected to be delivered, installed and running by the end of March 2007. 7.0 PROGRAMME / PLAN DEVELOPMENT AND IMPLEMENTATION 7.1 Strategic Asset Planning In common with Mendip’s innovative approach to service delivery, through the positive engagement of a wide range of contractors, partnerships etc, and our asset portfolio has been managed by reference to the same principles. Mendip is keen to adopt an increasingly strategic view of the management of its asset portfolio, and is confident that it can build upon the successes that it has already had. Its position on the Mendip Strategic Partnership will assist this strategic overview and allow the needs of other agencies to be considered within the overall framework. During 2005/06 the Council have become members of the National Asset Management Planning Network, keeps the Council up to date with all asset management related issues / polices / advice etc. from Central Government and other bodies. 12
  • 15. 7.2 Establishing Asset Needs Historically Mendip has had a policy of disposing of its assets in order to minimise the costs associated with ownership and to reduce potential liabilities. Whilst Mendip therefore holds only a relatively small Asset Portfolio, there are nevertheless pressures applied from service areas and from the corporate perspective that place demands and requirements on the current small Portfolio. The pressures are identified at two principal levels: • Corporate: via either Corporate Management team or the Corporate Asset Management Team • Service: via the annual Service Planning process In turn, the Capital Appraisal System provides the process that links individual projects with corporate / service Priorities and outcomes. This enables the Cabinet to be advised accordingly on the relative priority of the schemes, thus informing the process of programme approval. During 2006/07 the current Capital Appraisal System will be reviewed, it is expected that a new system will be adopted which links more directly with the Council’s Objectives. Historically, Mendip has not carried out planned maintenance of its assets. However, over the past 2 years the Council have started to realise the benefit of planning maintenance programmes and have started development programmes for a number of assets including the Council’s office buildings, closed churchyard walls and footpaths and other hard surfaces. 7.3 Current Asset Needs During 2005/06, the principle pressures on the asset portfolio are as follows: Office Accommodation The Council acknowledges that it has accommodation needs. During 2005/06 the Council appointed Capita Symonds to undertake an Accommodation Review which will look at the Council and its partners need for office accommodation, consider the options and make recommendations, Morlands Part of Mendip’s contribution to the Strategic Priority of supporting the SWRDA Partnerships at Morlands, Glastonbury by transferring the land owned by the Council in order to facilitate the development, a small are of land was transferred during 2005/06. The remainder is under option until 6th March 2010 to SWRDA for the possible development of a combined heating and power plant (CHP) for the Morlands site. However, it is anticipated that the CHP will not proceed and the SWRDA will be requesting a release from the option. . Frome Cemetery There will be a need to extend the Frome Cemetery into the land adjacent within the next three years as the current cemetery will be full in about four years time. 13
  • 16. Shepton Mallet Cemetery There will be a need to either extend or start to re-use burial sites within Shepton Mallet Cemetery in a few years time. 7.4 Disposal of Surplus Assets a) As identified previously in this Plan, Mendip retained a significant number of “miscellaneous” land assets, most of little if any consequential value, following the transfer of the housing stock. The Land & Property Audit has indicated that the majority of the land is of little or no use to the Council and are in fact significant liabilities. Since May 2004 the Council have offer approx 135 surplus areas of land in total, from these the Council received 63 “Expressions of Interest”, of which 29 have been completed, the remaining applications are at various stages within the process. b) The Land & Property Audit has identified opportunities for development which are actively being pursued. During 2004/05 the Council agreed to the disposal of 8 sites in Frome for affordable housing, however, applications on 5 of these sites were refused by the Planning Board in March 2006. During 2005/06 the Council agreed to the disposal of a further 5 sites in Frome and Shepton Mallet. c) The Audit also identified a number of smaller sites, which may be developed as single building plots or small development plots. The Corporate Property Officer worked with a Development Control Team Leader on two sites, one was written up for refusal by the Planning Officer and withdrawn, the other received outline planning approval and was recently sold on the open market for £170,000. During 2006/07 a further two to three sites will be considered and their viability tested before a planning application is submitted. d) The Council have clear procedures for the disposing of assets. There are Application Forms to be completed by all applicants. A stakeholder consultation takes place for all applications before a decision is made. The Corporate Property Officer has the delegated authority to ”agree in principle” to the disposal of all Council owned assets. However, there is a strict ratification process in place once the asset has been valued: Less than £5000: Corporate Property Officer £5001 - £20 000: Corporate Finance & Resources BU Manager £20 001 - £30 000: Portfolio Holder (Corporate Finance & Resources) Over £30 001: Cabinet / Community Partnerships 7.5 Asset Acquisitions During 2005/06 the Asset Review Group agreed the following methodology to assist them in considering requests: 14
  • 17. • Each application is considered on a case by case basis, each area of land within the application site will be viewed individually and given careful consideration by the group. • Is there an existing S106 Agreement which ties the Council into an adoption ? • Does the land meet the minimum standard set out by the Council ? • Does the land have any problems etc. which could result in a future liability to the Council i.e. location / ponds / drains / difficult and expensive to maintain areas etc. • Are the Council being asked to adopt things which they have no expertise in managing or maintaining ? • Does the land provide a quality open space / play area and how much value does land provide the local people ? • Is adoption by the Council the only way to preserve the open space or is there an alternative ? • Does the Council wish to enter into a 75 year+ restrictive covenant on this area of land or negotiate a lesser period ? • Does the group wish to add any conditions to the adoption i.e. additional signs, moving of a footpath etc. ? All senior planners have been issued with a Briefing Note explaining what is expected of them and how the process works. Over the past year the group have considered a number of requests from developers to adopt land and property though the Section 106 process, several of these have been refused. However, the Council have adopted approx 30 new areas of land during the past financial year due to a number of Section 106s being completed and signed. 7.6 Future Changes to the Fixed Asset Register The Council have a number of potential changes in it asset holdings during the next few years: Garsdale / Saxonvale, Frome A Planning Brief and Design Codes was adopted by MDC in 2005 to guide the mixed use redevelopment (retail, employment and housing) of 12 hectares of brownfield land extending eastwards from Frome town centre. The proposed redevelopment area includes 3 Council owned assets – The Slaughterhouse, Merchants Barton Car Park and Public Conveniences. The Council intends that these landholdings will be developed in accordance with the aims and objectives of the brief. A comprehensive approach to development is a guiding principle. It is proposed that new car parking provision provided as part of the comprehensive scheme would be managed by means of a public-private partnership. The timescale for redevelopment will be largely private sector / market led as the majority of the area is in mixed private ownerships. Temporary use of the abattoir site may need to be considered if the abattoir business ceases to operate in the shorter term. 15
  • 18. Prince Road, Wells The Council have been contacted by a developer who is interested in the redevelop of the Prince Road area in Wells (approx 3 ha) this site is in mixed ownerships to the south / west of Wells City Centre. The proposed redevelopment area includes 4 Council owned assets - Princes Road Car Park and Public Conveniences, Wells Bus Station and Wells Film Centre. The proposed redevelopment is for a mixed use town centre extension re- incorporating many of the existing uses. It is envisaged that the Council will retain its management of a car parking facility. The proposals are an early stage of development and a Planning Brief with public consultation is required. Commercial Road Car Park, Shepton Mallet The Council have received several interests looking to develop part of the Council's car park or include the land within part of a wider retail scheme. A developer has submitted a planning application incorporating 2 Council owned assets – Commercial Road Car Park & Public Conveniences, however, the car park would be retained, to support a retail development . Negotiations for the inclusion of these assets into the wider scheme are at an early stage. 7.7 Asset Condition Survey During 2005/06 all assets within the Frome area were re-valued (see Appendix 3 - Schedule of Values) and assessed for maintenance requirements (see Appendix 4 – Works Required Table) as part of the 5 year rolling programme. The latter information has assisted the medium term budget planning process, and the development of a rolling planned maintenance programme. 8.0 PERFORMANCE MANAGEMENT 8.1 Performance in Relation to Asset Management National Performance Indicators Mendip continues to evaluate its performance against the National Property Performance Indicators (pPI’s). Its performance, in relation to these is as follows, and this will provide a benchmark for future Plans: 16
  • 19. Indicator Performance Description Number 2005/06 Percentage gross A – Good 59.57% internal floor space in B - Satisfactory 37.79% 1A Condition categories A C - Poor 0.05% to D D – Bad 2.59% Backlog of maintenance by cost expressed (i) as 1B total value and (ii) as a percentage of priority i) £ 120,790 levels 1 to 4 1 Urgent works ii) 96% 2 Essential works 0% 3 Desirable works 4% 4 Long term works 0% NIL Overall average rate of return (IRR) for each of the (Note: Mendip 2A, B following portfolios: has no assets and C a) Industrial, b) retail and c) agricultural falling within the investment property definition of this Indicator. The performance information provided below is for the Councils main office site only: Indicator Performance Performance Description Number 2004/05 2005/06 Total annual management costs per square metre £10.75 £9.81 3 (GIA) for the property portfolio 17
  • 20. A. Repair and maintenance costs per £38.56 £38.98 square metre GIA B. Energy costs per square metre GIA (gas, £9.53 £18.65 4A, B, C electricity, oil, solid fuel) and D C. Water Costs per square £1.09 £1.81 metre GIA D. CO2 emissions in tonnes of carbon dioxide 64.26 56.19 per square metre NIL NIL A. % of projects where outturn falls within +/- 5% (Mendip has (Mendip has of the estimated outturn, had no had no expressed as a projects during projects during percentage of the total 2004/05 falling 2005/06 falling number of projects within the within the completed in the financial definition of definition of year. 5A and this Indicator) this Indicator) B NIL NIL B. % of projects falling within +5% of the (Mendip has (Mendip has estimated timescale, had no had no expressed as a projects during projects during percentage of the total 2004/05 falling 2005/06 falling number of projects within the within the completed in the financial definition of definition of year. this Indicator). this Indicator) During 2005/06 energy prices increased by 95.8%, this accounts for the massive rise in figure 4(B) – Energy Cost per square meter GIA, yet an improvement in CO2 emission.. Over the past 3 years the Council have seen a rise in its energy costs this has led to the Council and other member of the Mendip Strategic Partnership setting up a working group called Mendip Partnership for Energy. This project has recently won government funding for a programme of energy auditing for all its buildings on the Cannard’s Grave Road site, and the energy used in business travel by staff based in those buildings. The Primary Care Trust, Somerset County Council and Avon and Somerset Constabulary are also participating in the project, which will suggest ways in which each organization can use energy more efficiently, saving both carbon and costs. The audit will also suggest ways in which partners can save energy by working together to deliver services and will look at how possible measures fit with the other activities and programmes of the organisations. The audit of buildings at Cannard’s Grave Road will be completed by March 2008. National Indicator Performance Performance Performance 18
  • 21. 2003/04 2004/05 2005/06 BV 156 The % of authority buildings open to the public in which 6.3% 8.33% all public areas are suitable 8.33% for and accessible to disabled people. Local Performance Indicators The Council have developed two asset related performance indicators: Asset Disposals Performance Performance Local Indicator 2004/05 2005/06 The % of Category A Applications which 95.5% 97% are “agreed in principle” within 6 weeks from receipt (Target 75%) The total number of expressions of NO DATA 86 interest received in the financial year AVAILABLE The total number of applications received 62 79 in the financial year The total number of completed assets 13 40 disposal transactions in the financial year The total area in sq m of completed 2438 m2 31731.39 m2 assets disposal transactions in the financial year The total amount of income to the Council for asset disposals in the financial year £ 65,460.00 £364,758.00 (This includes completions & deposits) Play Areas Local Indicator Performance Performance 2004/05 2005/06 The number of playgrounds and play areas provided by 3.6 4.2 the Council per 1000 children under 12 8.2 Comparison of Performance Despite making a number of enquiries, with agencies such as the Government Office South West and the external Auditors, Mendip have still not been able to identify a District Council in a similar position to make any comparative work worthwhile in this respect. During 2005/06 the Corporate Property Officer set up and led a County Asset Management Group this is attended by officers from 19
  • 22. all the District/Borough Councils and the County Council, the group have agreed there would be benefits in benchmarking against each other but to date no criteria has been set. It has recently been agreed that the County will take over the leadership of the group and it will be expanded to include other public bodies including the police and PCT. 20
  • 23. The Council have compared its approach to asset management with those in the County group and found that their policies on asset disposal are advanced on the other districts in Somerset. All energy invoices continue to be processed centrally, within the Corporate Finance & Resources Business Unit, thereby enabling consumption and cost data to be monitored and recorded on Excel spreadsheet. 8.3 Progress against Asset Management Projects for 2005/06 The Corporate Asset Management Plan 2005/06 identified a number of asset management projects for this period, Figure 1 shows the progress made against the identified projects. 8.4 Progress against the Asset Management Improvement Plan 2005/06 Figure 2 indicates the progress made against the Asset Management Improvement Plan for 2004/05. 9.0 ASSET MANAGEMENT RELATED PROJECTS FOR 2006 /07 9.1 Current Programme of Asset Management Projects Figure 3 provides a comprehensive list of current / proposed asset management projects for 2006/07. 21
  • 24. 22
  • 25. Figure 1 PROJECT PLAN UPDATE FOR YR. 2005/06 Target Action Lead Officer Progress Date Resurface Great Ostry Service Area. Car Parks September COMPLETED Manager 2005 Proceed with the disposal of Mendip’s land holding in Business Unit October Part disposal of the site was completed respect of the Morlands development, working with Manager - 2005 early in March. SWRDA. Community & Regeneration To obtain Planning Permission for new building public Asset November The Council have amended the plans to convenience at the Cattle Market Car Park, Frome Maintenance 2005 take into account the County concerns Officer Upgrade Cheese and Grain car park area Car Parks December COMPLETED Manager 2005 To complete the transfer of all allotments sites. Strategic Asset December A Radon Gas emissions reports has Manager 2005 been sent to Frome Town Council – awaiting their response Ensure compliance with legislation for Disabled Strategic Asset December The pool hoists have been fitted at all access to public buildings: Manager / 2005 Leisure facilities.  To produce a costed programme of works Leisure Officer for Leisure Centres 23
  • 26. Target Progress Action Lead Officer Date To continue pursuing the disposal of the Gypsy Lane Leisure Officer / March Disposal agreed at Cabinet on the 11/6. playing fields. Strategic Asset 2006 Awaiting completion. Manager Replace the Bailey Bridge, Frome Car Parks March The Bailey Bridge will be closed at the Manager 2006 beginning of July 2006 for Health & Safety reasons. The Council is currently looking at replacement options. Replace all Pay and Display machines in Street Car Parks March A Capital Bid for the replacement of car Manager 2006 park ticket machines was approved, therefore the replacement of Street machines will be done at this time. This is now going through the procurement process. To carry out a planned maintenance survey to Leisure Officer March This is on hold due to contract develop a costed 10 year maintenance plan relating 2006 arrangement changes to MDC’s responsibilities within the Leisure Contract. To develop an Accommodation Strategy for the Corporate March Capita Symonds to present to CMT. Council to incorporate the needs of Capita Local Finance & 2006 Government Services. Resources Business Manager To assist in the development of an Asset Strategic Asset March Nothing to report Management Strategy for the Council’s major assets Manager 2006 24
  • 27. Target Progress Action Lead Officer Date To investigate the disposal of Park Cottage, Wells in Strategic Asset April 2007 An update letter has been received from order to facilitate the maintenance of the Bishops Manager Wells City Council which indicates they Barn & Recreation Ground, Wells are still considering the issues with a view to transferring the properties at the end of March 2007.. Progress the Cabinet's decision regarding the Corporate April 2006 COMPLETED – January 2006 Council's future involvement with The Amulet, with a Finance & view to negotiating a surrender of the current full Resources repairing lease. Business Manager Bishops Barn, Wells - To carry out maintenance Leisure Officer April 2007 Awaiting Wells City Council’s decision identified in Historic Building Survey Shepton Mallet Leisure Project: Progress on course and due for The refurbishment (in association with Shepton Mallet Leisure Officer September completion by July 2006. Town Council) of Shepton Mallet open air pool. 2006 Casual Play / Public Open Space The Council have appointed Bakers To develop a criteria for casual play and public open Strategic GCDO April 2006 Associations to assist in the preparation space. of the Strategies To assess the condition of the 2 small Sewage Business Unit December Recommendations have been received Treatment Plants remaining in Mendip’s ownership Manager - 2006 from the Consultants, looking at secure following LSVT and, if necessary, determine a Corporate capital funding. programme of works. Finance & Resources 25
  • 28. Target Progress Action Lead Officer Date Tor Leisure, Glastonbury - To produce maintenance Leisure Officer April 2008 Nothing to report programme and delivery within the terms of the lease. To continue the Asset Disposal programme Strategic Asset March Approx 120 sites have been identified for Manager 2007 offer under the surplus land disposals for 2006/07. To complete the Land & Property Audit and consider Strategic Asset April 2006 COMPLETED – February 2006 . options for addressing. Manager To carry out a condition “fit for purpose” and risk Strategic Asset March Nothing to Report assessments / surveys of major corporate assets Manager 2007 26
  • 29. Figure 2 Corporate Asset Management Improvement Plan Update 2005/06 Ref Completion Action Lead Officer Outcome No. Date To identify, record and describe a complete Strategic Asset To complete the Land & Property Audit, COMPLETED portfolio (on both the Asset Register and Manager enter all data onto the GIS System and AMP 1 Geographical Information System) for all make available to all sections of the assets in Wells and its surrounding area. Council. a) To carry out a condition, “fit for purpose” A record of the condition of the major 31/07/06 and risk assessments / surveys of major corporate assets corporate assets Strategic Asset AMP 2 b) To carry out a condition, “fit for purpose” Manager A record of the condition of all corporate 31/07/06 and risk assessments / surveys of all assets corporate assets a) To implement a programme of works to All major assets maintained to an Subject to bring the condition of all major assets up “acceptable” identified standard outcome of AMP to an “acceptable” standard Strategic Asset AMP 3 2a and 2b, and b) To implement a programme of works to Manager All assets maintained to an “acceptable” prioritisation of bring the condition of all assets up to an identified standard works “acceptable” standard To establish and resource a fully integrated Subject to AMP Strategic Asset Corporate assets maintained to an AMP 4 corporate maintenance programme for all 3 and Risk Manager identified standard assets Assessment To develop suitable supporting Strategies Strategic Asset An adopted Corporate Asset Management This continues and Policies for Corporate Asset Manager Strategy and associated supporting policies to be on going AMP 5 Management Strategy to secure the effective, efficient and economic management of the asset portfolio To develop a programme of Consultation to determine the views of stakeholders in Strategic Asset An agreed mechanism for ascertaining the 31/7/06 AMP 6 respect of matters relating to Corporate Manager views of stakeholders Asset Management 27
  • 30. Figure 3 ASSET MANAGEMENT PROJECT PLAN 2006/07 Target Progress Action Lead Officer Date (to be completed by AMWG / AMSG during the year) Morlands Business Unit March . Proceed with the disposal of the remainder of the Manager - 2010 Councils land holding in respect of the Morlands Community & development, working with SWRDA. Regeneration Cattle Market Public Conveniences Asset December To build new public convenience at the Cattle Market Maintenance 2006 Car Park, Frome Officer Frome Allotments Corporate December To complete the transfer of all Frome allotments Property Officer 2006 sites. DDA – Leisure Centres Strategic Asset June 2007 Ensure compliance with legislation for Disabled Manager / access to public buildings: Leisure Officer  To produce a costed programme of works for Leisure Centres Pay & Display Machines Car Parks March Replace all Pay and Display machines in all car parks Manager 2007 Leisure – 10 yr Maintenance Plan Leisure Officer April 2007 To carry out a planned maintenance survey to develop a costed 10 year maintenance plan relating to MDC’s responsibilities within the Leisure Contract 28
  • 31. Target Progress Action Lead Officer Date (to be completed by AMWG / AMSG during the year) Tor Leisure, Glastonbury Leisure Officer April 2008 To review and agree the maintenance programme, with a view to delivering within the terms of the lease. Accommodation Strategy Corporate To develop an Accommodation Strategy for the Finance & March Council to incorporate the needs of Capita Local Resources 2007 Government Services. Business Manager Asset Management Strategy Corporate October To assist in the development of an Asset Property Officer 2007 Management Strategy for the Council’s major assets Wells Recreation Ground Corporate March To progress the disposal of Park Cottage, Bishops Property Officer 2007 Barn and Wells Recreation Ground Chantry Sewage Treatment Plant To be March To progress the consultants recommendations for the confirmed 2008 Chantry Sewage Treatment Plant. Batcombe Sewage Treatment Plant To be October To progress the works at Batcombe Sewage confirmed 2007 Treatment Plant 29
  • 32. Target Progress Action Lead Officer Date (to be completed by AMWG / AMSG during the year) Memorial Safety Testing Bereavement March To carry out memorial safety testing in all 3 Officer 2007 Cemeteries Nunney Churchyard Asset October To ensure the repairs to Nunney Churchyard walls Maintenance 2006 are completed Officer Southside Car Park Public Conveniences Asset December To obtain Planning Permission for new building public Maintenance 2006 convenience st Southside Car Park in Street Officer Street Lamp Survey Asset June 2007 To complete a survey of all MDC owned Street Lights Maintenance Officer Footpaths & Hard Surface Area Corporate March Develop an inspection programme for all Council Property Officer 2007 owned footpaths and hard surface areas. Car Parks Car Parks March To produce a cyclical maintenance programme for Manager 2007 car park surfacing and lighting 30
  • 33. Target Progress Action Lead Officer Date (to be completed by AMWG / AMSG during the year) Residential Car Parks Corporate March To undertake a review of all Council owned Property Officer 2007 residential car parks and produce recommendations for future management 31
  • 34. 32