SEVENOAKS DISTRICT COUNCIL



ASSET MANAGEMENT &CAPITAL
        INVESTMENT



    BEST VALUE REVIEW
INDEX
INTRODUCTION

Scope of Review                                             1
Review Team                             ...
Option Appraisal & Suitability                                         18
Review of Current Policy                        ...
Appendix T – IT Asset Summary & Insurance Value               82
Appendix U – IT Current Software List                    ...
INTRODUCTION


Scope

The review follows the successful submission of a Capital Strategy and Asset
Management Plan (CS&AMP...
Methodology

The Review used the 4 Cs (Compare, Consult, Compete and Challenge) to identify
opportunities to improve the C...
SECTION A

     KEY
RECOMMENDATIONS
KEY RECOMMENDATIONS


Operational:

R1     To review the role of the Corporate Property Officer following the appointment ...
R9      Develop the current asset maintenance and capital programme monitoring
reporting arrangements to ensure integratio...
Other IT Recommendations

R19 I.T. Services work closely with their customers by offering appropriate
consultancy and guid...
SECTION B

PROPERTY
PROPERTY & BUILDINGS

Definitions

Asset Management is the strategic management of land, buildings and other assets in the...
All strategic matters, relating to property and land requiring a report to Members are co-
ordinated through the Property ...
The first three years of the estimated maintenance plan was developed in consultation
with the Finance department and with...
inputting progresses with a view to having a fully computerised property terrier in place
at the earliest opportunity.

Th...
Property Review

Following an initial review of the Council’s landholdings in 1998 a further
comprehensive review was unde...
SECTION C

 CAPITAL
STRATEGY
CAPITAL INVESTMENT


Definitions/Types

Capital investment is expenditure on the acquisition, creation or enhancement, oth...
c) schemes developing Council owned assets;
          - extending their useful life
          - having health and safety i...
objectives of the Prudential Code are to ensure, within a clear framework, that the capital
investment plans of local auth...
Any new template must be flexible to cover all types of capital investment, and
incorporate appropriate reporting and dele...
BUDGET MONITORING/REPORTING

Current Reports

Copies of the current monitoring reports for asset maintenance and capital p...
SECTION D

INFORMATION
TECHNOLOGY
ASSET MANAGEMENT

Definitions

Information Technology (IT) Asset Management is the strategic management of an
organisation...
Asset Maintenance

The IT department currently maintains the Council’s IT assets by:
   1. Maintaining asset lists of all ...
The safety of the Council’s data is ensured by the use of nightly and off-site backups
for access control and backup. Howe...
CAPITAL INVESTMENT

Review of Current Policy

The Council’s current policy with regard to Capital Investment is set out in...
Risk analysis

The new protocol must be capable of informing all forms of capital investment and
incorporate appropriate r...
SECTION E

  VEHICLE
REPLACEMENT
VEHICLE REPLACEMENT


Purchases

All vehicles are purchased new or second–hand. The purchase of new vehicles is by competi...
Fleet: 6 spare vehicles (for use when other vehicles are out of use for repair, servicing, MOT to
maintain services) (smal...
SECTION F

IMPROVEMENT
    PLAN
ASSET MANAGEMENT BEST VALUE IMPROVEMENT/ACTION PLAN January 2005
Ref            Proposed Action                  Identifie...
Ref            Proposed Action                  Identified Improvements             Officer          Financial        Prio...
Ref            Proposed Action                   Identified Improvements        Officer          Financial       Priority ...
Ref           Proposed Action               Identified Improvements             Officer        Financial        Priority  ...
Ref            Proposed Action                Identified Improvements          Officer          Financial        Priority ...
Ref           Proposed Action               Identified Improvements             Officer         Financial        Priority ...
Ref           Proposed Action               Identified Improvements       Officer        Financial        Priority    Time...
SECTION G

APPENDICES
Appendix A



                                                                        Operational Assets - Corporate

    ...
Appendix B


                                               Operational Assets - Community Property

                  Par...
Appendix C



                                                                   Non-Operational Assets - General

       ...
Appendix D



                                                                           Non-Operational Assets – Surplus
...
Appendix E


ODPM Property Category Definitions



                             Condition categories A – D

A – Good condi...
Appendix F

ASSET MANAGEMENT PLAN

THE ROLE OF THE CORPORATE PROPERTY OFFICER

In relation to the Council’s land and prope...
Appendix G


ASSET MANAGEMENT PLAN

REPORTING ROUTES


Professional Services Manager reports to CPO and Cabinet Member
CPO...
Appendix H



THE FOUR Cs

Compare

All Councils in Kent have prepared their current Asset Management Plans in
accordance ...
Appendix I



                                                                      ASSET MAINTENANCE EXPENDITURE 2001 - 2...
SEVENOAKS DISTRICT COUNCIL ASSET MANAGEMENT
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SEVENOAKS DISTRICT COUNCIL ASSET MANAGEMENT
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SEVENOAKS DISTRICT COUNCIL ASSET MANAGEMENT
SEVENOAKS DISTRICT COUNCIL ASSET MANAGEMENT
SEVENOAKS DISTRICT COUNCIL ASSET MANAGEMENT
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SEVENOAKS DISTRICT COUNCIL ASSET MANAGEMENT

  1. 1. SEVENOAKS DISTRICT COUNCIL ASSET MANAGEMENT &CAPITAL INVESTMENT BEST VALUE REVIEW
  2. 2. INDEX INTRODUCTION Scope of Review 1 Review Team 1 Methodology 2 Reporting Structure Chart 2 SECTION A KEY RECOMMENDATIONS 3 SECTION B PROPERTY & BUILDING ASSET MANAGEMENT Definitions 6 Organisational Arrangements 6 Asset Maintenance 7 Data Management 8 Performance Management 9 Property Review 10 SECTION C CAPITAL STRATEGY Definition & Types 11 Review of Current Policy 11 Funding Options 12 Prudential Code 12 Project Appraisal 13 Cost/Benefit 14 Service Investment Planning 14 Option Appraisal & Suitability 14 Budget Monitoring/Reporting 15 Current Reports 15 Issues 15 Capital receipts 15 SECTION D INFORMATION TECHNOLOGY Asset Management Definitions 16 Current Organisational Arrangements 16 Asset Maintenance 17 Future Organisation Arrangements & Asset Maintenance 17 Information Asset (Data) Management 17 Performance Management 18
  3. 3. Option Appraisal & Suitability 18 Review of Current Policy 19 Funding Options 19 Project Appraisal 19 Risk Analysis 20 Cost/Benefit 20 Service Investment Planning 20 IT Depreciation 20 IT Disposal 20 SECTION E VEHICLE REPLACEMENT Purchases 21 Depreciation 21 Disposal 21 Fleet Management Account 21 Vehicle Fleet 21 Vehicle Replacement Fund 22 Fund Performance 22 SECTION F IMPROVEMENT PLAN 23 SECTION G APPENDICES Appendix A - Operational Assets (Corporate) 30 Appendix B - Operational Assets (Community) 31 Appendix C - Non-Operational Assets (General) 32 Appendix D - Non-Operational Assets (Surplus) 33 Appendix E - Property Category Definitions 34 Appendix F - The Role of the Corporate Property Officer 35 Appendix G - Reporting Routes 36 Appendix H - The Four Cs 37 Appendix I - Asset Maintenance budget allocations & expenditure 38 Appendix J – Asset Maintenance 10 Year Plan 39 Appendix K – Asset Disposal Monitoring Report 53 Appendix L – CIPFA and Financial Definitions 62 Appendix M - Capital Programme 2005-08 63 Appendix N – Prudential Indicators 64 Appendix O - Capital Strategy Statement 70 Appendix P – Asset Maintenance & Capital Programme Monitoring Report 76 Appendix Q – Asset Maintenance Funding Summary 79 Appendix R – IT Asset Maintenance Expenditure May 2004 80 Appendix S – IT Capital Expenditure May 2004 81
  4. 4. Appendix T – IT Asset Summary & Insurance Value 82 Appendix U – IT Current Software List 83 Appendix V – IT Overall Cost of Asset Replacement 84 Appendix W - Role of Head of Technology 85 Appendix X – Fleet Schedule 86 Appendix Y – Vehicle Replacement Approved 2005/06 Programme 87 Appendix Z – Glossary of Terms 89 Appendix Z1 – Institute of Public Finance Review 92
  5. 5. INTRODUCTION Scope The review follows the successful submission of a Capital Strategy and Asset Management Plan (CS&AMP) to the Office of the Deputy Prime Minister (ODPM) in 2002. In successive years core data sheets and performance indicators have been submitted to the ODPM and the requirement for these was suspended in 2004 pending national review of all property performance indicators. This Best Value Review has been undertaken by members with support from officers to fundamentally review the current processes involved in managing the Council’s assets including property (Section B) and vehicles (Section E) to agreeing an Action Plan (Section F) to determine best practice and performance measurement of these aspects of the Council’s service. Matters relating to IT will be found later in the report at Section D The review is of the Council’s Asset Management & Capital Strategy procedures and is not a review of the overall property function of the Council, which formed part of the Professional Services Best Value Review in 2001. Team The review panel comprised the following Members of the Council: Cllr Peter Coates (Portfolio Holder and Chairman of the Review Group) Cllr Leon Baker Cllr John Lankester Cllr Philip McGarvey Cllr Michael Tuke With support from the following officers: Kristen Paterson (Community Services Director) John Cowx (Access Developer – IT Services) Jim Latheron (Professional Services Manager – Legal & Property Section) Doug Williamson (Chief Financial Officer) Richard Wilson (Head of Direct & Customer Services) Contributions from: Orlan Berkin Karen Perry John Plumb (Institute of Public Finance) 1
  6. 6. Methodology The Review used the 4 Cs (Compare, Consult, Compete and Challenge) to identify opportunities to improve the Capital Investment and Asset management process. (Appendices H & Z1) The Review Team considered the existing CS&AMP and investigated the sources of core data, which made up the Plan. Discussions within the Team identified areas for further consideration and inclusion in an Action Plan. Current Asset Management Plan Reporting Structure Cabinet Chief Executive Corporate Services Director Directors (CPO) Professional Services Heads of Service Manager Operations Managers Reporting Route Consultation with Customer 2
  7. 7. SECTION A KEY RECOMMENDATIONS
  8. 8. KEY RECOMMENDATIONS Operational: R1 To review the role of the Corporate Property Officer following the appointment of the Corporate Services Director. (Appendix F) R2 Ensure that the structure and organisational relationship of Property & Building Services to the rest of the Council should follow the current Heads of Service structure and be reviewed to maximise opportunities for organisational effectiveness, consultation, communication and the enhanced service delivery. (Appendix G) R3 To introduce a process to ensure that maintenance work and budget for the following year is reviewed 6 months before the year end together with major items of expenditure over the next 3 years. A 5-year rolling review of the condition of all properties is to be undertaken with a view to identifying major repair items over the coming years. Review the performance and future of asset maintenance budgets including methods and time frames for profiling expenditure. (Appendix J) R4 Identify methods and procedures of disposal appropriate for various types of property including a risk analysis of each option This must include the imposition of restrictive conditions (if appropriate) including positive consultation with Local members and the relevant town or parish council to ensure that reports for the disposal of property to consider community needs and social objectives. (Appendix K) R5 Identify suitable local property performance indicators and add these to the proposed National performance Indicators when they are published. Financial: R6 Review the levels of delegation granted to officers as part of the Council’s constitution and financial regulations together with appropriate capping of Directors’ authority to purchase assets. R7 Review the Investment Appraisal Process and develop a Capital Investment Policy, to include major IT investment, taking regard of types of investment and service priorities. Develop and embed a long-term strategic capital financing strategy into the Capital Investment Policy and review the approach to asset maintenance funding in the longer term. R8 Develop a new project appraisal model to integrate into the current project management process 3
  9. 9. R9 Develop the current asset maintenance and capital programme monitoring reporting arrangements to ensure integration into the new financial monitoring regime to include a consistent approach to profiling and the carrying forward of budgets. Ensure that planning and financial monitoring reports reflect the structure outlined in R2 above. (Appendix P) I.T. Asset Maintenance Recommendations R10 I.T. Asset Maintenance fund to be managed separately from the existing Council Asset fund and headed up by the H.O.T. (Appendix R) R11 IT Asset Maintenance fund be re-assessed and driven by the requirements of replacements of assets as described in (Appendix V) R12 Future replacement provision to be included in any investment project appraisal. This provision is to be included in the I.T. Asset Maintenance fund. (Appendix R) R13 Assets that are currently automatically supported by the I.T. Asset Maintenance fund are to be reviewed. The outcome would define which future assets are supported by the I.T. Asset Maintenance fund and those which will be supported by contributions from the customer. R14 It is recommended that a register of all IT assets be held and maintained by IT Services. IT Capital Expenditure Recommendations R15 The existing fund is to be included in the replacement cost of existing I.T. Assets (Appendix Q). R16 The H.O.T, together with the relevant section heads, is to review every section’s current and future I.T. requirements and produce a three year plan, in time for annual budget allocations. R17 All future I.T. capital projects or requirements are to be presented to the I.T. Steering Group with a relevant business case and project plan. These are to be reviewed by the group and accepted or rejected in accordance with Council priorities. R18 Every section’s annual I.T. budget is held centrally by I.T. Services. Funds and funds for projects ratified by the I.T Steering group, which do not have external funding, are made available from this fund. 4
  10. 10. Other IT Recommendations R19 I.T. Services work closely with their customers by offering appropriate consultancy and guidance to enable them to make informed decisions in relation to their future technology requirements. R20 Implement a review of the IT Depreciation process. 5
  11. 11. SECTION B PROPERTY
  12. 12. PROPERTY & BUILDINGS Definitions Asset Management is the strategic management of land, buildings and other assets in the Council’s portfolio as a whole. It can be defined as optimising the utilisation of assets in terms of service benefits and financial return. There is a difference between Asset Management and the day-to-day property, project management and property services. Asset management is concerned with the long term view of the best use of the Council’s assets including those held and used by individual service departments as well as those held by the Council but used by an external organisation. E.g. A community organisation or a commercial tenant. Organisational Arrangements The current Asset Management Plan (AMP), as relating to the Council’s land and property holdings, is administered by the Legal & Property Section within Corporate Services. Vehicles are administered by the Head of Direct & Customer Services. IT is administered by the Head of Technology. Reporting to the Council is the responsibility of the Finance Portfolio holder and budgetary matters are scrutinised by the Finance Advisory Group as part of the budget monitoring process. The following directorates have day-to-day property responsibilities in consultation with the Professional Services Manager as detailed below DIRECTOR HEAD OF SERVICE FUNCTION Community Services Head of Community Leisure Properties Development. Head of Direct and Customer Urban Parks & Playgrounds Services Public Toilets Tourist Centre Depot Vehicles Corporate Services Head of Legal & Property Central Offices Community Properties Amenity Land Surplus Properties Head of Technology IT Strategic Services Head of Engineering Car Parks Head of Policy & Environment Countryside Properties Rural Parks 6
  13. 13. All strategic matters, relating to property and land requiring a report to Members are co- ordinated through the Property & Building Section of the Corporate Services Department. The Corporate Property Officer (CPO) is currently the Chief Financial Officer. To ensure representation of asset related matters at the Council’s Management Team it is considered appropriate to discuss if the Corporate Services Director (the Section 151 officer) ought to be nominated as the CPO. (Appendix F) [R1] The CPO would then report direct to the Chief Executive and would also be a member of the Council’s Management Team whose other members are The Chief Executive, The Strategic Services Director, The Community Services Director and the Head of Personnel. (Appendix G) [R2] The Professional Services Manager of the Council (within the Corporate Services Department) is the CPO’s nominated deputy and has the day-to-day responsibility for implementing the Asset Management Plan and all associated property related matters. The Professional Services Manager also has responsibility for the Property & Building Section of the Council and reports to the Head of Legal & Property. The Member with responsibility for Asset Management matters is the Cabinet Member and Portfolio Holder for Finance who, amongst other responsibilities, oversees the long- term financial strategy. Overall budgetary direction and strategic delivery of the Asset Maintenance & Management Plans. (Appendix G) Asset Maintenance During the later part of 2000 and early 2001 all Council properties were surveyed by officers of the Central Services Property & Building Section. The resulting condition surveys identified the works required to maintain the fabric of each building and hence the service which they provide. The associated plant and machinery was inspected by consulting engineers and their findings incorporated into the appropriate condition survey. This work was undertaken as a centralised function and the completed reports were submitted to the respective operating departments and Members for consideration. The surveys identified the maximum work likely to be required over a 10-year period. The total 10 year cost (excluding IT [£2.5m over 10 years] and car parks) was estimated to be £12.2m plus fees of approximately £1.5m. This figure excluded works necessary for compliance with the provisions of the Disability Discrimination Act, any relevant fire precaution and occupational safety requirements, service contracts already commissioned as part of the annual revenue costs of the buildings, and improvements. However it included replacement/refurbishment works to plant & machinery within the properties. A summary of the results of this survey is contained in Appendix J. This survey will be reviewed on a regular basis and to take account of the disposal of assets. 7
  14. 14. The first three years of the estimated maintenance plan was developed in consultation with the Finance department and with reference to the Capital Strategy and reported to Members. The funding allocated to Asset Maintenance as a result of this review is detailed in Appendix I The Property & Building Section discussed the available funding with the operational departments and a list of priority work within the these budgets was agreed and commissioned. The works were prioritised on the grounds of health & safety, income generation and other service provision. Members resolved that funding be aligned to a strategic long-term plan; and that the uncompleted projects be reviewed for inclusion in following financial years. The Council allocated resources up to and including year 2005/06. This funding is assumed to continue into future years at between 40 and 50% of the maintenance expenditure identified in the 10 year Asset Maintenance Plan as part of the Council’s financial model. (Appendix I) The Council has decided to set aside £10m in an earmarked reserve account for Asset Maintenance. At March 2004 this reserve stood at £8.2m. It is considered this balance should be sufficient in the medium term but is not sustainable in the longer term. The Council needs to devise a more transparent and sustainable way to meet these costs. The condition of the properties in the Council’s portfolio is reviewed annually and maintenance backlogs identified and quantified as part of the asset maintenance programme. This is reported to the Management Team and Members as part of the annual review process. The condition surveys relate to categories A to D whilst the maintenance backlog is categorised 1 to 4 as required by the Asset Management Plan guidance. (Appendix E) [R3] Data Management All property and related records are held and administered centrally by the Property & Building Section of Corporate Services. The management of the estate is also centralised under the same department who advise, liaise with and inform the operation departments of their rights, obligations and opportunities in respect of the various property holdings under their operational control. To date all property records have been held in a paper format. Although comprehensive and up to date, as confirmed by the District Auditor in 2000, these are in the process of being transferred to a digital format following the acquisition of the CAPS Uniform 2000 Estate Management System. This system has links to the Council’s GIS systems. At present the paper record is being maintained in parallel with the newly input data. The building maintenance and estate accounting modules will be added to the core system as 8
  15. 15. inputting progresses with a view to having a fully computerised property terrier in place at the earliest opportunity. The Council is represented on the Southeast Region CAPS User Group. by members of the Property & Building Section. This group reviews and advises the software suppliers on the scope for developments/alterations to the system to satisfy local authority requirements. Following the acquisition of the CAPS Uniform system, the suppliers provided training to the relevant staff. The maintenance and operating budgets are managed using the Council wide Agresso accounting system. This system provides management reports detailed by function, property or service. All operating departments are required to provide data on energy consumed in the properties under their control whilst other running cost data is held centrally and is available for use by the CPO in providing performance indicators relating to the property. Performance Management, Monitoring & Information The Council has adopted all 5 National Property Performance Indicators (PPIs) together with 7 Local Property Performance Indicators (LPPIs) to provide additional management information pertinent to the District Council’s property management. The Local Indicators cover the following areas of measurement and together with the PPIs will be reported to the Management Team and the Cabinet annually. LPPI 1 Asset Plan preparation and review LPPI 2 Staff time LPPI 3 Management cost LPPI 4 Rented property voids LPPI 5 Rent arrears LPPI 6 Rent reviews/renewals actioned LPPI 7 Percentage of responsive repairs against planned cases. Recent guidance from the ODPM has suspended the reporting of these performance indicators in anticipation of a revised national guidance being issued; no date for this has yet been set. Best Value Performance Indicator (BV 156) relates to the number of Council properties in which all public areas are suitable for and accessible to disabled people. This information is reported annually. The proportion of planned compared with unplanned maintenance cases are reported monthly. [R5] 9
  16. 16. Property Review Following an initial review of the Council’s landholdings in 1998 a further comprehensive review was undertaken in 2000. This review identified a number of areas of land and property which were surplus to the Council’s requirements. A disposal programme is continuing in respect of these properties. (Appendix A to D). Other properties which although not considered surplus to requirements were reviewed to ensure that they were not under performing and various potential leasing opportunities were identified for action. Property review monitoring reports are presented to the Members on an annual basis. All property review matters directly affecting a local area are referred to the local members and the relevant town or parish councils for positive consultation. (Appendix K) A subsequent phase of the review identified non-strategic amenity land held by the Council which was considered suitable for transfer to the relevant town or parish council. Following valuation advice from the District Valuer consent has been obtained from the Government Office for the South East to transfer these parcels of land to the town/parish councils at nil value. The concept behind this part of the review was to enable local amenity land to be managed locally and thereby reduce the overall maintenance commitments of the Council. A number of areas of land have been identified by a joint working party representing officers of the leisure group, housing strategy group, property section and a local housing association to provide social housing in areas where prohibitive land values have prevented residents on low incomes being able to own/rent property. Most of the land identified is not suitable for private sector development either by virtue of its location or Local Development Plan status. These sites are now the subject of negotiations with the local social housing providers As part of the various operating departments best value reviews the suitability and need to occupy land and property has been considered. The Property Review is an ongoing project that will continually monitor the Council’s land and property holdings to evaluate the land and property remaining within the public domain whilst providing capital funding of the asset maintenance programme, amongst others, to ensure that the remaining properties are maintained to an appropriate level having regard for the purpose they fulfil. [R4] The Council owns a number of older properties that have been converted to provide accommodation for the voluntary/charitable sector. These are under review to ensure suitable usage by those outside agencies. (Appendix C) The property disposals arising from the Property Review are a key financial input to the Council’s 3 year Financial Plan. (Appendix M) 10
  17. 17. SECTION C CAPITAL STRATEGY
  18. 18. CAPITAL INVESTMENT Definitions/Types Capital investment is expenditure on the acquisition, creation or enhancement, other than routine maintenance, of fixed assets. A copy of the CIPFA definition is included at Appendix L as is a definition of Deferred Charges together with a comment on Revenue Expenditure. Fixed Assets are generally identified as: Operational Land and Buildings (Appendices A and B) Non-operational Land and Buildings (Appendices C and D) Infrastructure - items that have a life of over 1 year but have no realisable value such as roads, sewers, sea defences etc. Community items including parks, cemeteries and crematoria and buildings held to be of architectural or historic interest but not primarily for service delivery, such as historic monuments. Vehicles, Plant and Equipment In addition expenditure on fixed assets can be “capitalised” and financed from capital receipts, or loan, on deferred charges. Deferred charges are peculiar to local authority accounts. Such expenditure may be capitalised but does not result in a fixed asset for the council. Some examples of deferred charges are: Improvement Grants Highway Works (e.g. Edenbridge Relief Road) Parish Projects These are essentially capital investments where the ownership of the asset lies, or will ultimately lie, with another body. Under guidance from CIPFA, IT software is also generally treated as a deferred charge item. Review of Current Policy The Council’s current policy with regard to capital investment is set out in the 2002/03 Capital Strategy Statement (Appendix O) The guideline criteria for considering new capital proposals are as follows: a) mandatory schemes; b) schemes which reduce or eliminate ongoing revenue costs; 11
  19. 19. c) schemes developing Council owned assets; - extending their useful life - having health and safety implications, or - increasing or safeguarding income streams d) specific schemes only, not small capital scheme allocations; and e) other schemes would only be considered as exemptions. The council’s current capital programme is set out in Appendix M. The Capital Investment Policy now needs to be reviewed following changes to the Social Housing Grant (SHG) and the Prudential Code, and to reflect the new service priorities being developed. Any review of the policy must consider officer delegation, particularly where capital investment allocations cover a number of items (e.g. IT, Vehicle Purchases). De-minimus limits must be developed for specific types of investment (e.g. computer hardware). [R6] Funding Options Capital expenditure can be financed from any or a combination of the following sources : Borrowing Capital Receipts Asset leasing/contract hire Revenue and depreciation Partnership contributions (including Government Grant) Reserves The Council has been “debt-free” since 1991. This has had advantages in enabling the use of capital receipts and the simplification of administration. Changes brought about by the Local Government Act 2003, and in particular the new “Prudential Code” have made borrowing a possible means of financing capital expenditure. Asset leasing, and/or contract hire, is not normally considered for vehicles and equipment but such options should be kept under review The specific source of funding must be included in any new project appraisal model in the context of a strategic funding policy. Prudential Code Local authorities are required by Regulation to have regard to CIPFA’s Prudential Code when carrying out their duties under Part 1 of the Local Government Act 2003. The key 12
  20. 20. objectives of the Prudential Code are to ensure, within a clear framework, that the capital investment plans of local authorities are affordable, prudent and sustainable. In order to demonstrate that the local authorities have fulfilled the Code’s objectives, the Code sets out indicators that must be used and factors that must be taken into account. The Code does not include suggested indicative limits or ratios for these indicators; these will be for the Council to set itself. (Appendix N) The Code has most significance for authorities that borrow to fund their capital programmes. The Code replaces complex regulatory frameworks covering local government capital expenditure with a system largely based on self-regulation. As Sevenoaks District Council is currently a debt free authority with a limited capital programme the change is of less significance but the indicators should still provide Members with useful information on the financial implications of capital investment decisions. Future plans, and in particular the 3-year financial plan being developed as part of the 2005/06 budget process, assume the District Council remains debt free. Project Appraisal A Project Appraisal system was developed in the late 1990s and was previously applied to all large schemes, such as the Sevenoaks Dryside extension. As the Council’s capital programme has run down, it has fallen out of use, and was not applied to the recent Edenbridge Relief Road scheme. The procedures for setting the Capital Programme and the framework for implementing individual schemes are set out in the Financial and Contract Procedure Rules within the District Council’s constitution. The Council has adopted its own version of the PRINCE 2 Project Management system. A new capital project appraisal model needs to be developed to integrate into this corporate approach. [R8] Key aspects of any new system should include: A project match to service objectives and strategies A full life costing analysis A funding statement A revenue cost analysis An asset requirement justification A Client view/technical view statement An appraisal of options/alternatives A market research/consultation statement A risk analysis 13
  21. 21. Any new template must be flexible to cover all types of capital investment, and incorporate appropriate reporting and delegation levels for different values of investment. Cost/Benefit As part of project appraisal, consistent policies need to be applied to reporting costs and benefits analysis. Costs must be shown in a standard analysis of land, construction, equipment, etc. Revenue implications need to be calculated in a consistent way, with clear targets for future costs and income streams. Benefit analysis will be dependant on the nature of scheme. Consideration should be given to using the recently developed “2004 Prioritisation Matrix” scoring methodology. Benefits considerations must have some element of measurable performance to enable monitoring following implementation of any scheme. Service Investment Planning As part of the integrated 3 year financial and service planning processes, including the asset maintenance planning referred to elsewhere in this report, the Directorate and Heads of Service need to identify medium term capital investment requirements. This will be closely linked to the Asset Management process in terms of asset renewal and asset use. [R8] Option Appraisal & Suitability Each project must be subjected to a rigorous financial appraisal which will form part of the submission to the Management Team and the Members. Capital expenditure, future revenue costs and loss of investment income are to be considered and set against the social and financial benefits which may accrue from the project. Option appraisal will be achieved through multi discipline groups of officers together with outside consultants as necessary, advising on major projects. The Property Review report to Members must provide a sustainability checklist in respect of each property covering the need to hold the property, whether it fulfils a statutory function, economic reasons, whether the function can be provided by another agency, essential need, desirability to dispose, and economic benefits A suitability survey must be conducted amongst the Heads of Service to cover all areas of occupation by the Council and this will be extended to tenants and other occupiers. 14
  22. 22. BUDGET MONITORING/REPORTING Current Reports Copies of the current monitoring reports for asset maintenance and capital programme are attached at Appendix P These reports are produced monthly and stand apart from the overall revenue summary. [R9] The current reports are by the Director and Head of Service, and then scheme/asset, although it is recognised that there are some inconsistencies in the detail. This is picked up in action R9 in the Improvement Plan to ensure reports reflect responsibility structures The Finance Advisory Group, with officers is developing an integrated monitoring format for implementation in 2005/06. Issues The main issues identified with the current reporting concern: Profiling of budgets Carry forward provision for under spent budgets External contributions to schemes (e.g. capital grants and developer contributions) Schemes with durations of more than one year As part of the new reporting arrangements a corporate approach to these concerns needs to be developed. This may involve large schemes, such as Edenbridge Relief Road, being reported in more detail as well as part of the standard format. Capital Receipts The current asset disposal programme is reported quarterly to Overview & Scrutiny Board (Appendix K). There is no reporting of such receipts in the current standard financial monitoring papers. Capital Receipts arise from: Asset Sales (e.g. land, buildings and vehicles) (Appendix K) Mortgage Repayments (on the 50 or so remaining Sale of Council House mortgages) Staircasing (arising from ongoing additional purchases of Shared Ownership properties) In order to develop an overall “cash position” summary report, these items need to be included, and action [R9] in the Improvement Plan reflects this. 15
  23. 23. SECTION D INFORMATION TECHNOLOGY
  24. 24. ASSET MANAGEMENT Definitions Information Technology (IT) Asset Management is the strategic management of an organisation’s IT assets (which includes hardware, software, licences and intellectual property) in terms of the portfolio as a whole. It can be defined as “optimising the utilisation of assets in terms of service benefits and financial return”. Organisational Arrangements The IT Services current policy for including assets into the IT Asset Maintenance fund is as follows: 1. IT’s customers request IT Services to procure assets with the relevant budget code. 2. Provision is made in the Asset Maintenance budget for the replacement of those assets. 3. If assets are procured individually or not through IT Services then these assets are not included in the IT Asset Maintenance Budget. The IT department’s current arrangements are as follows: 1. The IT Asset Maintenance expenditure is currently funded by the Council’s Asset Maintenance fund. This fund was developed as a 10 year financial plan to ensure that all the Council properties were maintained correctly and able to carry out the service they performed (Appendix I). The IT budget was set at £2.5 million over the 10 year period. 2. The IT Asset Maintenance budget is currently apportioned according to what funds are available from the Council’s Asset Maintenance fund, after the necessary property fund allocations have been made. This review has highlighted that the existing and future needs of the IT asset maintenance, to ensure the continual IT support service, will not be met by the current Asset Maintenance fund allocations (Appendix S). 3. An annual report is sent to the Services Select Committee showing the current IT Asset Maintenance Budgetary expenditure (the existing forecast is Appendix P). 4. The Member with responsibility for Asset Management matters is the Cabinet Member for Finance who, amongst other responsibilities, oversees the long- term financial strategy, the overall budgetary direction and the strategic delivery of the Asset Maintenance & Management Plans. 5. An annual report is sent to the Exchequer team in Corporate Services detailing the value of relevant equipment for insurance purposes. 6. It is the intention of the IT Asset Maintenance fund to replace all of IT hardware procured through IT. 7. The Council is FAST compliant to Bronze level, which ensures that the Council has purchased and maintains the correct licences for all software used by the Council. SDC is working with Kent Connects to ensure and maintain the compliance. 16
  25. 25. Asset Maintenance The IT department currently maintains the Council’s IT assets by: 1. Maintaining asset lists of all items purchased from the current main hardware supplier, Dell. Each item is asset tagged and replaced when the agreed “life” of that item has expired (3yr list replaced every 5 years).(Appendix T) 2. Assets are replaced if their warranty contract has expired, if the asset fails or if the software requirements of the organisation requires hardware with a higher specification. (Appendix U) 3. A database of all nodes on the LAN is maintained and equipment is replaced when necessary. 4. The IT core infrastructure is purchased with annual maintenance contracts and Third party insurance is taken out yearly. 5. Each software package is supported with a maintenance contract and the relevant licences are purchased to ensure the FAST compliance. Future Organisational Arrangements and Asset Maintenance IT will spend more time in a consultation role with their customers as per Recommendation [R19]. Recommendations for the future management of IT’s asset maintenance are listed from Recommendation [R10 to R14]. The Head of Technology (HOT) will be responsible for all of SDC’s IT asset maintenance. The role is detailed in Appendix W. The Council’s IT assets will continue to be managed as set out in Asset Maintenance but will also be using Asset Works, a module of the IT helpdesk software, Supportworks. This application will track all assets with drivers currently on the SDC network and will be in accordance with SDC’s internal audit requirements. Each asset’s I.P / Network address will be used as unique identifier and displayed on the asset. The level of asset recording will be broken down into the categories described in Appendix R. Any external equipment which does not exist on our network will be manually checked yearly. Information Asset (Data) Management Although the main focus of this review is upon physical assets rather than data, the importance of data, held on the Council’s computer systems, is recognised for the following reasons: 1. The data has a high value, as a result of their importance in maintaining the Council’s services, there is also a high potential cost of regenerating the data should they be lost as a result of system failure. 2. Information systems and the data that they contain play an essential part in the management of physical assets. 17
  26. 26. The safety of the Council’s data is ensured by the use of nightly and off-site backups for access control and backup. However, it is recognised that further work is required on the safeguarding security, availability and integrity of the Council’s data. The HOT is committed to the Services Select Committee to the following during 2005: 1. Draft the revised IT’s Information Security Policy (ISP) by April 2005 2. Review the implications of IT’s Disaster Recovery (DR) by April 2005. 3. Draft the IT DR plan by September 2005. 4. Test and implement by December 2005. The HOT will, with the IT Steering Group, investigate, agree and achieve the level of BS7799 compliance that is reasonable for the council. A record management guideline document to be produced to define a protocol for the storage and management of data. An email archiving software solution has been implemented in line with FOI requirements. Ensuring users are able to store data in a protected and secure environment in keeping in line with legislation about Freedom of Information and Data Protection. SDC to be compliant to the legislation and KCC is tasked to challenge it. FOI links: http://www.homeoffice.gov.uk/inside/foi/ http://foi.democracy.org.uk/index.html SDC Intranet – Support Services – Freedom Of Information. Data Protection Act 1998: http://foi.democracy.org.uk/index.html Performance Management, Monitoring and Information The HOT and IT will review the value of recording performance indicators relating to IT Asset Maintenance and how best they may be used. Option Appraisal & Suitability Each project is subject to a rigorous financial appraisal which forms part of the submission to the I.T Steering Group and Members. Capital expenditure, future revenue costs, loss of investment income are considered and set against the social and financial benefits that may accrue from the project. Option review is achieved through multi discipline groups of officers with advice, where necessary, from consultants. Consultants will be used when major projects/purchases are being contemplated. 18
  27. 27. CAPITAL INVESTMENT Review of Current Policy The Council’s current policy with regard to Capital Investment is set out in the 2002/03 Capital Strategy Statement (Appendix O).[R15] Currently IT Capital investments are a part of the Council’s Capital Programme which is funded from Corporate capital resources/receipts. Projects/purchases suggested by the Heads of Service are listed according to their priorities by the HOT. The present IT Capital Forecast Expenditure forecast (Appendix M) shows how funds have been allocated to projects for the period 2004/5 to 2007/8. [R16] From April 2005, future projects and expenditure will be assessed and prioritised by the IT Steering Group. Heads of Service will be asked to present their requirements to the group who will decide, using a IT projects specific prioritization matrix, if these meet with the Council objectives they will become fundable from the IT Capital Reserve Budget. [R17] Funding Options IT assets may be either leased or purchased. The current practice is to purchase all items. If funds are not available assets could be leased if necessary. The HOT and the IT Steering Group has the right to lease if appropriate. All purchase funding must have the prior consent of the IT Steering Group. Details of funding must be included in any new project appraisal model, in the context of the strategic funding policy. [R18] Project Appraisal The council has adopted its own version of the PRINCE 2 Project Management system, and a new capital project appraisal protocol must be developed to accord this into the council’s project appraisal approach. Key aspects of any new system must include: Project match to Service objectives and strategies Full life costing Funding statement Revenue cost Asset requirement Client view/technical view Options/Alternatives Market research/consultation. 19
  28. 28. Risk analysis The new protocol must be capable of informing all forms of capital investment and incorporate appropriate reporting levels and delegation for different values of investment. Cost/Benefit Project appraisals must use standard and consistent policies when reporting costs and benefits. Revenue implications need to be calculated in a consistent way, with clear targets for future costs and income streams. Benefits will be dependant on the type of project. Prioritization will be defined according to the IT Steering Group’s Prioritization matrix. Benefits must cite measurable performance indicators to enable the performance of projects to be monitored. Service Investment Planning As part of the integrated three year financial and service planning process, referred to elsewhere in this report, Heads of Service and Directors must develop medium term capital investment assessments. This will be closely linked to the Asset Management process in terms of asset renewal. IT Depreciation The depreciation of our IT assets is governed by the manufacturer’s warranty and period that they are prepared to support that item. IT assets are depreciated, as standard, over a three year period. Appendix S. Each desktop computer is currently purchased with a standard three year warranty with the option to extend to five years at the end of the three year period. This warranty is extended unless the computer is not fit to continue or the software requirements of the organisation will not be met by the computer’s specifications. IT Disposal 1. IT conforms to the European Directive on Waste Electrical and Electronic Equipment (WEEE) to dispose of its IT equipment. The Directive can be download in its .pdf format at the following internet address http://europa.eu.int/eur-lex/pri/en/oj/dat/2003/l_037/l_03720030213en00240038.pdf 20
  29. 29. SECTION E VEHICLE REPLACEMENT
  30. 30. VEHICLE REPLACEMENT Purchases All vehicles are purchased new or second–hand. The purchase of new vehicles is by competitive tendering. Second-hand vehicles are usually purchased directly from suppliers. Although purchase of vehicles is the current practice, for best value reasons, the options of lease or contract hire will be considered for all relevant vehicles. Depreciation The cost of all vehicles is depreciated on a straight line basis over a period of years. This period depends on the type of vehicle. Large vehicles (e.g. refuse freighters) are depreciated over 7 years. This is varied to 5 years for new smaller vehicles (vans) and 3 years for second-hand vehicles. Depreciation costs are charged monthly to the relevant revenue account, e.g. refuse collection trading account, dog warden service etc. When a vehicle has been depreciated to £1 its use is not recharged to the account as is classed as depreciation free usage. Disposal At the end of economic life, vehicles are sent to the municipal vehicle auction at Merthyr Tydfil. All residual costs recovered are credited to the Vehicle Replacement Fund Reserve. Fleet Management Account All owned vehicles and plant are managed by the Fleet Management Overhead Account on the TASK system. All fixed vehicle costs (premises recharge, support service costs, fleet salaries, insurance, licensing, MOT, servicing and depreciation costs) are charged to this account and recharged to the relevant user account on a monthly basis to fully recover all costs. Vehicle Fleet There are currently 99 vehicles and 38 pieces of plant on the fleet account. These are as follows: Refuse: 19 Vehicles (Freighters, Rangers, Glass Recycling Vehicle, CDSU vehicle) and 1 piece of plant (Mobile steam cleaner) Green Waste: 2 Vehicles (mini compactors) Trade Waste: 2 Freighters Public Conveniences: 3 vans Cesspool Emptying: 2 tankers Street Cleaning: 27 vehicles (large and small mechanical sweepers, pedestrian sweepers, transit tipper vans, Rangers, gully emptier) Construction Services: 7 vehicles (lorries, transits, JCB) and 7 pieces of plant 21
  31. 31. Fleet: 6 spare vehicles (for use when other vehicles are out of use for repair, servicing, MOT to maintain services) (small vans) Workshop: 1 large van Edenbridge community Warden: 1 van and 2 pieces of plant Car Parks; 4 vans Courier Service: 2 vans Pest Control: 2 vans Dog Warden: 2 vans Countryside: 4 vehicles (vans and land rovers) Monitoring Officer: 1 van Minibuses: 10 buses Emergency: 3 vehicles and 19 pieces of plant Youth Service: 1 large van. Further details of the above vehicles are shown in the Fleet Schedule (Appendix U, page 81) Vehicle Replacement Fund This fund was established in 2000 with a £500,000 of Capital Reserve earmarked allocation. All vehicles are purchased using this fund and all depreciation charges and disposal income is credited to this fund to maintain the fund for future replacements. Each year the vehicle replacement fund amount is agreed by the Environment Portfolio Holder responsible for Direct Services operations and the approved vehicle replacement programme for 2004/2005 is shown at Appendix V, page 82 Fund Performance Year Bought Forward Depreciation Purchases Carried Forward £ £ £ £ 2001/2 486,500 351,355 460,224 377,631 2002/3 377,631 374,173 494,600 257,204 2003/4 265,204 407,000 224,234 447,970 2004/5 447,970 502,959 456,500 494,429 22
  32. 32. SECTION F IMPROVEMENT PLAN
  33. 33. ASSET MANAGEMENT BEST VALUE IMPROVEMENT/ACTION PLAN January 2005 Ref Proposed Action Identified Improvements Officer Financial Priority Timetable No. Implications R1 To review the role of the Corporate To ensure that Asset Director and Officer time only High By June 2005 Property Officer following the Management is considered in Professional (costed at £100) appointment of the Corporate all corporate decisions Services Services Director. (Appendix F, Manager page 38) R2 Ensure that the structure and To ensure a corporate approach All Heads of Officer time only High Ongoing organisational relationship of to all Asset Management Service (costed at £350) Property & Building Services to the related matters rest of the Council should follow the current Heads of Service structure and be reviewed to maximise opportunities for organisational effectiveness, consultation, communication and the enhanced service delivery. R3 To introduce a process to ensure To ensure adequate funding All Heads of Officer time only High Every that maintenance work and budget according to service need Service (costed at £9,000) September and for the following year are reviewed March. 6 months before the year end Rolling review together with major items of to start in expenditure over the next 3 years. A September 5-year rolling review of the 2005 condition of all properties is to be undertaken with a view to identifying major repair items over the coming years. Review the performance and future of asset maintenance budgets including methods and time frames for profiling expenditure. 23
  34. 34. Ref Proposed Action Identified Improvements Officer Financial Priority Timetable No. Implications R4 Identify methods and procedures of To ensure that the best value is Professional Officer time only Medium Policy disposal appropriate for various obtained in any asset disposal Services (costed at £500) statement to be types of property including a risk and that adequate controls are Manager agreed by analysis of each option. This must in place. September include the imposition of restrictive 2005 conditions (if appropriate) including positive consultation with Local members and the relevant town or parish council and to ensure that reports for the disposal of property to consider community needs and social objectives. R5 Identify suitable local property To enable the performance of Professional Officer time only Medium performance indicators and add the corporate property portfolio Services (costed at £350) To be these to the proposed National to be measured and Manager considered Performance Indicators when they improvements identified. when ODPM are published. national indicators are established. March 2006 R6 Review the levels of delegation To ensure that adequate Heads of Not quantifiable as Medium To be granted to officers as part of the controls are in place Service. part of overall considered as Council’s constitution and financial review of Financial part of a regulations together with Regulations review of appropriate capping of Directors’ current authority to purchase assets. Delegations 24
  35. 35. Ref Proposed Action Identified Improvements Officer Financial Priority Timetable No. Implications R7 Review the Investment Appraisal To ensure consistency in Chief Officer time only Medium March 2006 Process and develop a Capital approach and reflection of Financial (costed at £1,250) Investment Policy, to include major Council priorities Officer IT investment, taking regard of types of investment and service priorities. Develop and embed a long term strategic capital financing strategy into the Capital Investment Policy and review the approach to asset maintenance funding in the longer term. R8 Develop a new project appraisal To ensure project costs are Chief Officer time only Medium September model to integrate into the current considered and tracked Financial (costed at £250) 2005 project management process Officer R9 Develop the current asset To ensure that sufficient Chief Officer time only Medium September maintenance and capital programme controls are in place Financial (costed at £500) 2005 monitoring reporting arrangements Officer & to ensure integration into the new Professional financial monitoring regime to Services include a consistent approach to Manager profiling and the carrying forward of budgets. Ensure that planning and financial monitoring reports reflect the structure outlined in R2 above. 25
  36. 36. Ref Proposed Action Identified Improvements Officer Financial Priority Timetable No. Implications R10 IT Asset Maintenance fund to be To ensure that IT Assets can be HOT Not quantifiable as Low Ongoing managed separately from the managed and budgets are based part of day to day existing Council Asset fund and on actual requirements. management headed up by the H.O.T. process. R11 IT Asset Maintenance fund be To ensure that IT Asset HOT Officer time only Low March 2006, re-assessed and driven by the Maintenance fund is driven by (costed at £100) ongoing requirements of replacements of requirements. thereafter. assets as described in Appendix V R12 Future replacement provision to To ensure that future IT budgets IT Project Not quantifiable as High April 2005 be included in any investment will fund their asset Manager part of day to day project appraisal. This provision replacements management is to be included in the IT Asset process. Maintenance fund. R13 Assets that are currently Streamline the assets to be HOT Officer time only Low March 2006 automatically supported by the maintained by the fund (costed at £500) IT Asset Maintenance fund are to be reviewed. The outcome would define which future assets are supported by the IT Asset Maintenance fund and those which will be supported by contributions from the customer. 26
  37. 37. Ref Proposed Action Identified Improvements Officer Financial Priority Timetable No. Implications R14 It is recommended that a register To ensure that there is an HOT Officer time only Low Ongoing of all IT assets be held and accurate list of assets at all (costed at £50) maintained by IT Services. times. R15 The existing fund is to be To ensure that the existing HOT Officer time only Low March 2006* included in the replacement cost fund will contribute to any (costed at £250) of existing IT Assets (Appendix outstanding deficit V) R16 The H.O.T, together with the To ensure long term plans are HOT and Officer time only Low March 2006 relevant section heads, is to created for IT requirements Heads of (costed at £1,000) review every section’s current enabling informed budget Service and future IT requirements and planning produce a three year plan, in time for annual budget allocations. * this assumes that the start date will be in line with the 2006/07 budget. The start date can be brought forward. 27
  38. 38. Ref Proposed Action Identified Improvements Officer Financial Priority Timetable No. Implications R17 All future IT capital projects or To ensure that projects are IT Steering Not quantifiable as Low April 2005 requirements are to be presented reviewed and controlled Group part of day to day to the IT Steering Group with a centrally with the corporate management relevant business case and aims and targets in mind process. project plan. These are to be reviewed by the group and accepted or rejected in accordance with Council priorities. R18 It is recommended that every To ensure that funds for Heads of Officer time only Medium March 2006 section’s annual IT budget is projects ratified by IT Steering Service (costed at £500) held centrally by IT Services. Group, which do not have Funds and funds for projects external funding, are made ratified by the I.T Steering available from this fund. group, which do not have external funding, are made available from this fund. 28
  39. 39. Ref Proposed Action Identified Improvements Officer Financial Priority Timetable No. Implications R19 It is recommended that IT To improve the understanding HOT Not quantifiable as High April 2005 Services work closely with their of IT requirements in each part of day to day and ongoing customers by offering section and enable relevant management appropriate consultancy and Heads of Service to make process. guidance to enable them to make informed decisions and plan their IT requirements informed decisions in relation to their future technology requirements. R20 Implement a review of the IT Ensure that the process is HOT Officer time only Low April 2006 Depreciation process properly documented (costed at £350) 29
  40. 40. SECTION G APPENDICES
  41. 41. Appendix A Operational Assets - Corporate Parish/Ward Address Description Asset Value Condition Repair Head of Service Ash/Ash The Square New Ash Green Public toilets £73,976 A 4 DS Ede/North & East Riverside, Edenbridge Public toilets £34,500 B 3 DS Ede/North & East Station Road, Edenbridge Leisure centre £4,201,150 B 3 CD Eyn/Crockham Hill & West Hill Lullingstone Park, Eynsford (Leased from KCC) Golf course etc. £1,281,550 B 2 DS Eyn/Crockham Hill & West Hill Lullingstone Park, Eynsford (Leased from KCC) Visitor Centre & car park £455,650 B 3 CD Eyn/Eynsford Station Road, Eynsford Public car park £20,000 B 4 TH Kem/Kemsing The Wheatsheaf, Kemsing Public car park & toilet Deminimis B 4 TH/DS Lei/Leigh & Chiddingstone Causeway The Green, Leigh Public toilet £32,285 A 4 DS Pen/Penshurst, Fordcombe and Chiddingstone Penshurst Road, Penshurst Public toilets £39,788 B 3 DS Sev Town & St.Johns South Park, Sevenoaks Public car park £272,000 B 3 TH Sev/ Town & St.Johns 27 Pembroke Road, Sevenoaks Public car park £84,500 A 4 TH Sev/ Town & St.Johns Acorns, Bradbourne Park Road, Sevenoaks Creche Deminimis A 4 SOLD Sev/ Town & St.Johns Argyle Road, Sevenoaks Council Offices + Local offices £2,926,232 B 3 LP Sev/ Town & St.Johns Blighs Meadow, Sevenoaks Public car park Awaited A 4 TH Sev/ Town & St.Johns Bradbourne Park Road, Sevenoaks Public car park £823,200 A 4 TH Sev/ Town & St.Johns Buckhurst Avenue, Sevenoaks Public toilets £64,992 B 3 DS Sev/ Town & St.Johns Buckhurst Lane, Sevenoaks Leisure centre £6,090,100 A 4 CD Sev/ Town & St.Johns Buckhurst Lane, Sevenoaks Public car park No 1 £148,800 B 3 TH Sev/ Town & St.Johns Buckhurst Lane, Sevenoaks Public car park No 2 £457,600 A 3 TH Sev/ Town & St.Johns Buckhurst Lane, Sevenoaks Public toilets £101,352 B 4 DS Sev/ Town & St.Johns Hitchen Hatch Lane, Sevenoaks Public car park £100,800 B 3 TH Sev/ Town & St.Johns Lower St Johns, Sevenoaks Public toilets £67,881 A 4 DS Sev/ Town & St.Johns St Johns Hill, Sevenoaks Public car park £119,000 B 3 TH Sev/ Town & St.Johns Suffolk Way, Sevenoaks Public car park £338,000 A 4 TH Sev/Eastern Hollybush Lane, Sevenoaks Recreation ground £2,472,650 B 3 DS Sev/Eastern Upper St Johns, Sevenoaks Public toilets £21,473 A 4 DS Sev/Town & St.Johns Buckhurst Lane, Sevenoaks Bus station & cafeteria £135,977 A 4 TH Sho/Otford & Shoreham Filston Lane, Shoreham Public car park £40,600 B 3 TH Sun/Brasted, Chevening & Sundridge Ide Hill, Sundridge Public toilets £53,100 A 4 DS Sun/Brasted,Chevening & Sundridge Main Road, Sundridge Dunbrik Depot £374,060 B 2 DS Swa/Christchurch & Swanley Village Bevan Place, Swanley Public car park & portacabin £56,000 B 3 TH/LP Swa/Christchurch & Swanley Village Park Road, Swanley Public car park £47,600 A 4 TH Swa/Christchurch & Swanley Village Station Road, Swanley Public car park £108,000 A 4 TH Swa/Christchurch & Swanley Village Station Road, Swanley Public toilets £58,944 A 4 DS Swa/White Oak Hilda May Avenue, Swanley Leisure centre £9,674,000 B 2 CD Wes/Westerham & Crockham Hill Brasted Road, Westerham Public car park £155,200 A 4 TH Wes/Westerham & Crockham Hill Fullers Hill, Westerham Public toilets £70,086 B 4 DS Wes/Westerham & Crockham Hill London Road,Westerham Public car park £76,000 B 3 TH Wes/Westerham & Crockham Hill Quebec Avenue, Westerham Public car park £56,000 B 3 TH TOTAL £31,133,046 30
  42. 42. Appendix B Operational Assets - Community Property Parish/Ward Address Description Asset Value Condition Repair Head of Service Chi/Penshurst, Fordcombe and Chiddingstone The Close, Bough Beech Amenity land Historic LP Cro/Crockenhill & West Hill Bath Cottages, Crockenhill Amenity land Historic LP Ede/South & West Riverside, Edenbridge Town park Deminimis PE Far/Farningham, Horton Kirby & South Darenth Farningham Woods Recreational woodland £92,500 PE Hal/Halstead, Knockholt & Badgers Mount Beldam Haw, Halstead Amenity land Deminimis LP Hal/Halstead, Knockholt & Badgers Mount Shoreham Woods & Timberden Farm Rural park £580,000 B 3 PE Hev/Cowden & Hever Pococks Bank, Hever Amenity land Deminimis LP Hor/Farninghma, Horton Kirby & South Darenth Saxon Place, Horton Kirby Amenity land Deminimis LP Kem/Kemsing Church Lane, Kemsing Amenity land Deminimis LP Lei/Leigh & Chiddingstone Causeway The Green Lane, Leigh Amenity access Deminimis LP Otf/Otford & Shoreham Bishops Palace, Otford Ancient monument Historic D 1 LP Otf/Otford & Shoreham Oxenhill Meadow, Otford Rural park £120,000 PE Sea/Seal & Weald Sealcroft Cottages, Seal Amenity land Deminimis LP Sev/ Town & St.Johns Environmental Park, Sevenoaks Urban park Deminimis DS Sev/ Town & St.Johns The Shambles, Sevenoaks Amenity land Deminimis LP Sev/Eastern Allotment Lane, Sevenoaks Amenity access Historic LP Sev/Eastern Hillingdon Rise, Sevenoaks Playground Historic SOLD Sev/Kippington Crosskeys (Julians Way), Sevenoaks Recreation ground Deminimis SOLD Sev/Kippington Morewood Close, Sevenoaks Amenity land Deminimis LP Sev/Northern Bradbourne Lakes, Sevenoaks Urban park Historic DS Sev/Northern Greatness Park, Sevenoaks Recreation ground £123,725 B 2 SOLD Sev/Northern Seal Road, Sevenoaks Amenity land Deminimis LP Sev/Northern Watercress Drive, Sevenoaks Playgrounds Deminimis DS Swa/St.Mary’s Cedar Close/Nursery Close Swanley Playground Historic DS Swa/St.Mary’s Cherry Avenue, Swanley Playground Historic DS Swa/Whiteoak Bartholomew Way, Swanley Town park Deminimis DS Swa/Whiteoak Bonney Way, Swanley Playground Historic DS Swa/Whiteoak Hilda May Avenue, Swanley Amenity land Deminimis LP Swa/Whiteoak Northview/Hilda May Avenue, Swanley Playground Deminimis DS Wea/Seal & Weald Mount Pleasant,Weald Amenity land Deminimis LP Wes/Westerham & Crockham Hill Croft Road, Westerham Amenity land Deminimis LP WK/Fawkham & West Kingsdown Hever Avenue, West Kingsdown Amenity land Deminimis LP TOTAL £931,225 31
  43. 43. Appendix C Non-Operational Assets - General Parish/Ward Address Description Asset Value Condition Repair Head of Service Che/Brasted, Chevening & Sundridge Chipstead Common, Chevening Let common land Historic SOLD Cow/Cowden & Hever High Street, Cowden Let allotment site Deminimis LP Ede/North & East Farmstead Drive, Edenbridge Let estate shop £87,413 B 2 LP Ede/North & East Farmstead Drive, Edenbridge Let tenants club £41,566 C 2 LP Ede/South & West 18 Cedar Drive, Edenbridge Let estate shop £23,359 B 2 LP Ede/South & West Stangrove Park, Edembridge Let park & scout hut £56,200 LP Har/Hartley & Hodsoll Street Larkwell Lane, Hartley Let scout hut Deminimis LP Har/Hartley & Hodsoll Street Woodland Ave, Hartley Let allotment site Deminimis LP Otf/Otford & Shoreham Bubblestone Road, Otford Let grazing land Historic LP Otf/Otford & Shoreham Chalk Pit, Otford Let scout hut Deminimis LP Otf/Otford & Shoreham Chalk Pit, Station Road, Otford Let recreation ground Deminimis LP Otf/Otford & Shoreham Hale Lane, Otford Let recreation ground Deminimis LP Otf/Otford & Shoreham Palace Field, Otford Let amenity land Historic LP Otf/Otford & Shoreham The Green, Otford Let guide hut Deminimis LP Sev/ Town & St.Johns Bank Street, Sevenoaks Let public house £366,353 A 4 LP Sev/ Town & St.Johns Buckhurst Lane, Sevenoaks Let community office £26,188 B 2 LP Sev/ Town & St.Johns St Johns Road, Sevenoaks Let community office £154,234 B 2 LP Sev/ Town & St.Johns Stag Theatre, London Road, Sevenoaks Let theatre/cinema £5,660,433 B 2 LP Sev/Eastern Cobden Road, Sevenoaks Let community offices £134,841 B 2 LP Sev/Northern Bradbourne Vale Road, Sevenoaks Let grazing land £18,600 LP Swa/Christchurch & Swanley Village 10 Station Road, Swanley Let commercial office £26,159 B 3 LP Swa/Christchurch & Swanley Village 16 High Street, Swanley Let community offices £13,500 B 2 LP Swa/Christchurch & Swanley Village 27-37 High Street, Swanley Let community & commercial offices £228,833 B 2 LP Swa/St.Mary’s Asda, London Road, Swanley Freehold ground rent Deminimis LP Swa/St.Mary’s Everest Place, Swanley Let car park £50,000 LP Swa/St.Mary’s The Parade Site, Swanley Freehold ground rent Deminimis LP Wes/Westerham & Crockham Hill Deanery Road, Crockham Hill Let scout hut Deminimis LP WK/Fawkham & West Kingsdown London Road, West Kingsdown Let car park Deminimis LP TOTAL £6,887,679 32
  44. 44. Appendix D Non-Operational Assets – Surplus Parish/Ward Address Description Asset Value Condition Repair Head of Service Bra/Brasted, Chevening & Sundridge Pipers Green Road, Brasted Amenity land Deminimis LP Bra/Brasted, Chevening & Sundridge St Martins Meadow, Brasted Amenity land Deminimis LP Dun/Dunton Green & Riverhead Ryewood Cottages Rye Lane, Dunton Green Amenity land Deminimis LP Sev/ Town & St.Johns 12 Knole Way, Sevenoaks House, ex road scheme (Negotiations in hand) £125,000 B 2 LP Sev/ Town & St.Johns 66 London Road, Sevenoaks Social club & offices in town centre scheme (Sale agreed) £1,500,000 LP Sev/Eastern Bethel Road, Sevenoaks Amenity land Historic SOLD Sev/Eastern Littlewood, Sevenoaks Amenity land Deminimis SOLD Sev/Kippington R/o 7-13 Oakhill Road, Sevenoaks Backland housing site £726,000 LP Sev/Northern Greatness Road, Sevenoaks Garden land Historic LP Sev/Northern Otford Road, Sevenoaks Ex depot in Metropolitan Green Belt £28,800 C 2 LP Sev/Northern Pontoise Close, Sevenoaks Amenity land Deminimis SOLD Sev/Northern Shoreham Lane, Sevenoaks Amenity land Deminimis SOLD WK/Fawkham & West Kingsdown School Lane, West Kingsdown Amenity land Deminimis SOLD TOTAL £2,379,800 33
  45. 45. Appendix E ODPM Property Category Definitions Condition categories A – D A – Good condition, performing as intended and operating efficiently. B – Satisfactory condition, performing as intended but showing minor deterioration. C – Poor condition, showing major defects and/or not operating as intended. D – Bad condition, life expired and/or serious risk of imminent failure. Repair priority levels 1 – 4 1 – Urgent works that will prevent immediate closure of premises and/or address an immediate high risk to the health & safety of the occupants and/or remedy a serious breach of legislation. 2 – Essential work required within 2 years that will prevent serious deterioration of the fabric or services and/or address a medium risk to the health & safety of the occupants and/or remedy a minor breach of legislation. 3 – Desirable work required within 3 to 5 years that will prevent deterioration of the fabric or services and/or address a low risk to the health and safety of the occupiers and/or a minor breach of legislation. 4 – Long-term work required beyond a period of 5 years that will prevent deterioration of the fabric or services. 34
  46. 46. Appendix F ASSET MANAGEMENT PLAN THE ROLE OF THE CORPORATE PROPERTY OFFICER In relation to the Council’s land and property assets: 1. To define long term corporate need and challenge existing asset use linking the Councils asset use to the Strategic Framework and determining the impact on the asset base. 2. To be aware of and monitor future operational and organisational changes and determine any effects on asset management including ensuring that the consequences of change are achievable , costed and appraised. 3. To review BV Plans, Audit Reviews, Strategies and Strategic Framework to identify property implications. 4. To ensure that the revenue consequences of capital decisions are identified together with the whole life costs and project appraisal. 5. To develop relevant local performance indicators linked to the national indicators. 6. To collate property performance data and produce a strategy of property aims and objectives, including prioritisation between projects. 7. To report direct to the MT and to the Cabinet through the Cabinet Member. 8. To delegate as appropriate to and by the Professional Service Manager and the Property & Building Section. 35
  47. 47. Appendix G ASSET MANAGEMENT PLAN REPORTING ROUTES Professional Services Manager reports to CPO and Cabinet Member CPO reports to Management Team Cabinet Member reports to Cabinet Meet Weekly  Management Team, to consider property related matters as necessary Meet Monthly  Cabinet to consider property related matters as necessary. Twice Yearly  All property holding departments circularised to identify possible property requirements/surplus accommodation.  Cabinet Members, CPO, Professional Services Manger meet with Heads of Operating Departments to review property requirements and future pressures. Annually  Property Review monitoring report to appropriate committees 36
  48. 48. Appendix H THE FOUR Cs Compare All Councils in Kent have prepared their current Asset Management Plans in accordance with the ODPM’s requirements. The Council is represented on the Kent Property Managers Group and the Institute of Public Finance’s Asset Management Forum. This will enable management performance to be compared with that of other public buildings both on a local and a national basis. This process will develop as the necessary performance indicators are published by the two groups Consult As part of the Suitability Surveys all property occupiers will be consulted on their current and projected requirements. Compete The Review Team considered that the Asset Management service within the Council is too small, and too diverse to contemplate the involvement of an external provider Challenge An external challenge to the proposals contained within the Asset Management Plan Review has been be provided by the Institute of Public Finance (see “Compare” above). Appendix X, page 84 37
  49. 49. Appendix I ASSET MAINTENANCE EXPENDITURE 2001 - 2004 2001/02 2002/03 2003/04 TOTALS EXPENDITURE BALANCE (C/F) 2004/05 2005/06 2006/07 2007/08 Budget allocation (actuals) 1,324,000 924,000 696,000 2,944,000 2,730,266 213,734 576,000 777,000 594000 681,000 Salary provision 86,000 86,000 86,000 258,000 258,000 0 65,000 65,000 65,000 65,000 Support Costs 30,300 30,300 30,300 30,300 Allocation for toilets (Cabinet 20/11/03) 24,000 24,000 24,000 24,000 Leisure Trust Recharge 15,000 15,000 15,000 15,000 Available funds 1,238,000 838,000 610,000 2,686,000 2,472,266 213,734 441,700 642,700 459,700 546,700 Direct Services 34,500 18,052 18,144 70,696 85,864 -15,168 12,085 16,000 8,000 17,500 Toilets 3687 2,881 2,628 9,196 9,383 -187 0 3,500 1,600 3,500 Leisure 560,705 318,872 196,596 1,076,173 838,820 237,353 130,518 174,000 86,000 187,000 Playgrounds 45,671 24,108 8,640 78,419 20 78,399 4,834 7,000 3,200 7,100 Car Parks 8,000 8,820 7,956 24,776 23,131 1,645 4,834 7,000 3,200 7,100 CCTV 8,967 63,269 23,904 96,140 21,614 74,526 14,502 20,000 10,000 20,000 STP 500 529 468 1,497 229 1,268 2,417 3,500 1,600 3,500 Countryside 1,600 800 1,116 3,516 1,037 2,479 2,417 3,500 1,600 3,500 TIC 600 - - 600 0 600 0 0 - - Corporate (Argyle Road) 90,950 50,488 32,774 174,212 158,141 16,071 33,838 44,000 22,000 48,500 (Stag Theatre) 50,000 35,314 22,942 108,256 63,664 44,592 23,687 31,000 16,000 34,000 (Others) 27,750 15,134 9,832 52,716 20,294 32,422 10151 13200 6,500 15,000 Electrical testing 0 49,750 0 49,750 0 49,750 0 0 - Asbestos surveys 0 0 35,000 35,000 16,897 35,000 0 0 - - No category (Stangrove Park) 19,904 0 0 19,904 19,904 0 0 0 - - SUB - TOTALS 852,834 588,017 360,000 1,800,851 558,750 0 0 - - Overspend -14,834 -17 0 -14,851 -14,851 0 0 - - Contingency 0 0 0 0 0 0 2417 0 - - TOTAL 838,000 588,000 360,000 1,786,000 1,258,998 527,002 241,700 322,700 159,700 346,700 Detailed Plan 2,214,225 1,414,085 958,065 845,855 1,216,370 874,445 1,386,130 Source document of this sheet 37.8 41.6 37.6 28.6 26.5 18.2 25.0 Car Park Resurfacing 120,000 100,000 - I.T. 400,000 250,000 250,000 900,000 1,213,268 -313,268 200,000 200,000 200,000 200,000 38

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