Review of Asset Management

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Review of Asset Management

  1. 1. Policy and Review Topic Panel B Review of Asset Management - Resources and Decision Making Stephen Checkley - Head of Asset Management Service
  2. 2. 2 Putting People FirstPortsmouth City Council Outline of Presentation Introduction Arrangements for Decision Making on property issues Service delivery processes Asset Management Service processes Leader of the Council - Political Resources Capital Strategy Medium Term Resource Strategy Pressures and Opportunities Monitoring and Review Questions and answers
  3. 3. 3 Putting People FirstPortsmouth City Council Arrangements for Decision Making within Services Departmental Management Teams Asset Management Group Representatives Corporate Management Team Portfolio Holders Executive City Council
  4. 4. 4 Putting People FirstPortsmouth City Council Standing Orders and delegated powers Management Board Asset Management Group Members Information Service Executive City Council Arrangements for Decision Making within Asset Management Service
  5. 5. 5 Putting People FirstPortsmouth City Council E x e c u t iv e ( 6 W e e k ly ) I n f o rm a l E x e c u t iv e ( W e e k ly ) L e a d e r s E x e c u t iv e M e e t in g ( 6 W e e k ly ) L e a d e r s B r e if in g ( 6 W e e k ly ) F u ll C o u n c il ( A n n u a l) S c r u t in y C o m m it t e e ( a s r e q u ir e d ) P o lic y a n d R e v ie w ( P e r f o rm a n c e ) P a n e l ( a s r e q u ir e d ) H e a d o f A s s e t M a n a g e m e n t D ir e c to r O f F in a n c e M e e t in g ( W e e k ly ) O f f i c e A c c o m m o d a t i o n G r o u p ( a s r e q u i r e d ) A s s e t M a n a g e m e n t G r o u p ( M o n t h ly ) C lie n t I n t e r lo c k M e e t in g s T e a m M e e t i n g s ( M o n t h l y ) B u s in e s s M a n a g e m e n t M e e t in g s S u p p o r t S e r v ic e s M a in t e n a n c e T e a m L e a d e r s M e e t i n g ( F o r t n i g h t l y ) P r o p e r t y M a n a g e m e n t T e a m L e a d e r s M e e t i n g ( F o r t n i g h t l y ) D e s i g n T e a m L e a d e r s M e e t i n g ( F o r t n i g h t l y ) F a c i l i t ie s M a n a g e m e n t T e a m L e a d e r s M e e t i n g ( F o r t n i g h t l y ) S e c tio n H e a d s M e e t in g ( Q u a r t e r ly ) S t a ff C o n f e r e n c e ( A n n u a l) M a n a g e m e n t B o a r d ( W e e k ly ) C h ie f E x e c u t iv e H a lf Y e a r ly R e v ie w ( A n n u a l) B e s t V a lu e R e v ie w s ( a s r e q u ir e d ) P M I B ( a s r e q u ir e d ) C o r p o r a te M a n a g e m e n t T e a m ( W e e k ly )
  6. 6. 6 Putting People FirstPortsmouth City Council Political Perspective Leader of the Council Councillor Gerald Vernon-Jackson Issues Political objectives Review and disposal of Assets Use/Re-use of resources - Service delivery Level of resources - Landlords Maintenance Support of Interest groups Mechanisms Consultation Officers Direct Involvement Members Information Service Delegated Powers Executive and Formal reports
  7. 7. Policy and Review Topic Panel B Review of Asset Management - Resources and Decision Making
  8. 8. 8 Putting People FirstPortsmouth City Council Capital Strategy Capital finance prioritisation methodology Sources of Finance Prudential Borrowing Impact on Revenue budget Option Appraisal Life Cycle Costing
  9. 9. 9 Putting People FirstPortsmouth City Council Medium Term Resource Strategy Revenue budget process Budget Pressures Cash Limits
  10. 10. 10 Putting People FirstPortsmouth City Council Monitoring and Review Capital and Property Board Capital Programme steering group
  11. 11. Asset Management Service Resources 2003/4 122 FTE Staff Gross Revenue Expenditure £14.7m Gross Revenue Income £18.75m Net Revenue Income £4m Capital Expenditure £1.164m + £? Capital Receipts £15.6m 11 Putting People FirstPortsmouth City Council
  12. 12. 12 Putting People FirstPortsmouth City Council Property Management 20 Staff Acquisition and Disposal Capital Receipts £15.6m Management of Investment Portfolio Industrial Income £397k Retail Income £216K Agricultural £12k Offices £546K Other £2.17m Residential and Development work
  13. 13. 13 Putting People FirstPortsmouth City Council Design 40 staff Current Schemes New special school £6.4m Priory School Drama, Fitness and tennis Centre £3m New Children’s home £0.9m Paulsgrove Inside/Outside Project £0.46m Neighbourhood nurseries (Sure Start) £1.925m Solihull House Refurbishment £6m Recently Completed Arundel Street Environmental Improvements £0.8m Cumberland St. HomeZone £0.8m Waterside School annexe £0.8m Various Sports and Arts Projects £2.3m Isambard Brunel Environmental improvements £0.9m
  14. 14. 14 Putting People FirstPortsmouth City Council Maintenance 30 staff Manage maintenance of operational property Major Projects - boiler replacement/ school roofs Reactive Maintenance Compliance with legislation Facility Management 35 Staff Civic Offices Guildhall THE WORK THESE TEAMS UNDERTAKE KEEP OFFICERS AND MEMBERS OUT OF JAIL
  15. 15. 15 Putting People FirstPortsmouth City Council AMS Resource Issues Landlords Maintenance - Revenue 1997/98 £2,217,110 1998/99 £3,138,700 1999/00 £3,183,400 2000/01 £3,130,400 2001/02 £2,866,500 2002/03 £2,379,800 2003/4 £2,361,500 2004/05 £2,887,600 2005/6 ?????????
  16. 16. 16 Putting People FirstPortsmouth City Council AMS Resource Issues Landlords Maintenance - Capital 1997/98 £370,000 1998/99 £0 1999/00 £0 2000/01 £0 2001/02 £750,000 2002/03 £750,000 2003/4 £750,000 2004/05 £750,000 2005/6 £7,547,000 ?! (Backlog)
  17. 17. 17 Putting People FirstPortsmouth City Council Landlords Maintenance Budget Growth 1997- 2004 Tender Prices 1997 - 2004 Building Costs 1997 - 2004 Retail Price Index 1997 -2004  +30.24%  +52.23% (+3.4% 2004/5)  +32.19% (+5.8% 2004/5)  +18.81% (+3% 2004/5)
  18. 18. 18 Putting People FirstPortsmouth City Council Landlords Maintenance • A 22% INCREASE IN BUDGET IS NEEDED NOW TO KEEP INVESTMENT IN REAL TERMS THE SAME AS IN 1997 • THE PORTFOLIO HAS EXPANDED SINCE 1997 • BUILDING COSTS HAVE INCREASED FASTER • MAINTENANCE BACKLOG IS SIGNIFICANT THE PORTFOLIO IS NOT SUSTAINABLE
  19. 19. 19 Putting People FirstPortsmouth City Council Pressures and Opportunities Cash Limits Building costs Landlords Maintenance Design and Construction projects Human Resources In-house vs. outsourcing vs. insourcing Incentives and Property Review Re-use of Capital Resources Risk
  20. 20. 20 Putting People FirstPortsmouth City Council The Future This………………………..? or this………………………….?
  21. 21. Policy and Review Topic Panel B Review of Asset Management - Decision Making and Resources Questions and Answers

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