Property Asset Management Plan to 2017

Transcription

1 Executive Committee Date: 4 March 2014 Agenda Item No. 12 Property Asset Management Plan to 2017 Report by: Ken Gourlay, Head of Asset and Facilities Management Services Ward Affected: All Purpose This report sets out the background to, and seeks Members approval of, the Property Asset Management Plan to Recommendation(s) It is recommended that the Committee: (i) Approve the Property Asset Management Plan to 2017; (ii) Note the contents of this report. Resource Implications Implementation of the Property Asset Management Plan will be funded and resourced through existing revenue provision. Any rationalisation or proposals or proposals for investment will be subject to individual business cases which will, in turn, consider any resource implications. The plan will reduce carbon emissions emanating from the Council's property portfolio. Legal & Risk Implications There are no extraordinary legal or risk implications arising as a result of implementing the Plan. Policy & Impact Assessment An EqIA is not required because this report and Plan outlines the processes and methods to be developed and followed to ensure that the assets held by the Council are managed in an efficient and effective way. The principal policies and strategies which the Asset Plan aligns to are those of the Council and Community Plans. The identified outcomes and initiatives arising from those Plans, together with the various Improvement Programmes and other projects arising from them will require EqIA reports at implementation stage. Consultation All relevant Services including the Investment Strategy Group (ISG) have been consulted in the development of the Property Asset Management Plan

2 1.0 Background 1.1 Asset management can be defined as the activity that ensures the property asset portfolio is making the maximum possible contribution to achieving the Council s objectives. This will involve strategic consideration of, for example, what type and location of assets are required to meet Council objectives. It also involves the day to day maintenance and running of these assets. The annual running costs associated with managing and financing assets constitutes the Council s second highest cost against revenue budgets after employee costs. 1.2 The plan reflects best practice guidance, but recognizes that strategic asset based development planning, without collaborative community and front line service stakeholder engagement, will not turn buildings into assets communities can build upon in support of Council and local area priorities. 1.3 This is the Council s fourth Property Asset Management Plan. The Plan seeks to build upon the successes of previous plans. A progress update on the 2009/12 Plan was provided to Committee in February It is proposed that annual progress updates against the Property Asset Management Plan to 2017 will be provided for scrutiny. 2.0 Property Strategy - Policy Context 2.1 At its meeting of 16th May 2013, Fife Council approved the Council Plan to The Council Plan identifies five inter-related aims against which activities are focused: Growing a vibrant economy Increasing opportunities and reducing poverty and inequality Improving quality of life in local communities Promoting a sustainable society Reforming Fife's public services 2.2 The Council Plan is part of a framework of policies, strategies and plans that provide the overarching strategic architecture for the Council. These include: Community Plan and Single Outcome Agreement Council Plan Local Community Plans Medium Term Financial Plan Capital Investment Plan Service Plans 2.3 Our strategy is to ensure Fife Council property assets are: Managed strategically and property objectives are consistent and support the Council s aims and objectives;

3 Supports the needs of the Council, the community it serves and partners; Supports front line service delivery by having the right assets, in the right place at the right time that allow the delivery of efficient and effective services to the public; Are sustainable, suitable and sufficient for its purpose; Are legally compliant and maintained over time; Minimise resource and operating costs and maximise the contribution to the Councils objectives. The individual strands of our property strategy are important as they will determine how the Council expects its property assets to perform, how progress will be measured and in practical terms how it is intended to work towards meeting these objectives during the life of the plan. The high level aims of our Property Strategy are mapped to the draft Council Plan priorities as summarised at figure 1 below:- Figure 1: Links between Council Plan Priorities and Property Strategy Council s Plan Objectives Growing a vibrant economy Links between Corporate Asset Objectives and Council Corporate Objectives Property Strategic Goals 1. Property is managed strategically to support Council objectives; Increasing opportunities and reducing poverty and inequality Property supports the needs of the Council, the community it serves and partners; Improving Quality of Life in Local Communities Property supports front line service delivery by having the right assets, in the right place at the right time. Promoting a sustainable society Property is sustainable, suitable and sufficient for its purpose. Reforming Fife's public services Property is legally compliant and maintained over time; 6. Minimise resource and operating costs and maximise the contribution made towards Council objectives;

4 3.0 Asset Management Plan to As at 31 st March 2013, the Council owned or leased in 2035 property assets which extended to4342 ha of land (parks, playing fields, etc.) and approx. 1 million m2 of buildings. In the year to 31 March 2012, 66m (5.49% of the Council s revenue budget) was spent in heating, lighting, cleaning and maintaining our property assets. We leased in 437 properties (in the main to provide homeless persons accommodation) at a rent of 2.95m pa. We leased to third parties 783 properties generating an income of 3.8m pa. 3.2 We benchmark our property portfolio against those of 25 other Scottish Councils and have also benchmarked a number of our processes against some English authorities. Against other authorities our approach to asset management continues to benchmark generally positively. However, there is no room for complacency and to ensure that our performance remains on track, a performance framework forms Section 5 of the Property Asset Management Plan. 3.3 Although performance is positive against the benchmarks, the current economic circumstances and requirements on the public sector to do better with less means that we will have to do better in future. Some of the key challenges that will have to be overcome are set out in the following sections of this report. 4.0 Key Challenges and Opportunities 4.1 A high level snapshot of some of the key changes in our asset base is provided at figure 2. Having regard to the general economic circumstances, the trend analysis is generally positive. Rental income has slightly reduced largely due to the relocation of Amazon from Bankhead to Dunfermline, and the cost of running the estate has increased by 1% which in real terms when inflation is taken into account represents an overall reduction. Overall compared to the baseline financial year of 2008/09 there has been an increase in the total number of assets within the portfolio (which reflects an increase in the number of properties leased in to support the work of the Housing Service) there has been a reduction of 102 Council owned properties (in effect the underlying portfolio). Within this high level picture, against a target to reduce office accommodation by 25% (by 2014/15); we have currently closed 39 offices (40 %) with savings being fed into the Councils efficiency programme.

5 Figure 2: Property Portfolio Snapshot Measure 2008/ / / / /13 Asset 1.14bn 1.13bn 1.10bn 1.15bn 1.2bn Value Rental 3.7m 3.7m 4.2m 4.2m 3.8m Income Property 63m 66m 63m 63m 66m Costs No, of Assets 1,851 1,830 1,915 2,036 2, The significant contribution investment in the asset base makes to delivery of Council priorities is highlighted within the Property Asset Management Plan. Various case studies are used in the document to illustrate the point. Essentially the asset base provides the place from which services are delivered. In particular, it is appropriate to record the significant progress being made across Fife as we invest in our schools, leisure centres, care and community facilities and in improving the quality and provision of social housing. There has been innovative work, like the proposed use of Tax Incremental Financing (TIF) powers to support investment in Fife Energy Park. All of this activity is reflected in record levels of investment; 144m in 2010/11, 174m in 2011/12 and 200m in 2012/ Our challenge going forward is to maintain and, where possible, accelerate the pace of delivery, innovation and collaboration that have been core to our successes over the last few years. In the current financial climate and with customer expectations increasing, key challenges and opportunities for improved outcomes include: Recognising that it is people and not buildings that are the core asset of communities, and to achieve better balance between service delivery and community building; Although progress has been made in moving to a more sustainable estate, our property asset base remains too large and is thought to be unsustainable within the current increasingly constrained financial environment; We need to ensure the best balance possible between new investment and investing in the existing estate and maximise the benefit gained from this investment by adopting a consistent approach to the management of our estate; We need to take a medium to long term view of our core property requirements and support this by aligning asset, business and community planning through greater public consultation and community engagement to identify service delivery priorities;

6 For the retained core estate we need to improve the quality of the way we manage the built environment. 4.4 Revenue Budget In 2012/13 we spent 66m (up from 63m in 2011/12) on maintaining, heating, lighting, cleaning, meeting rates and other bills relating to our property portfolio. This level of expenditure equates to 5.49% of gross revenue budget and considered in terms of financial efficiency, compares favourably with the cost incurred by other Scottish Councils. Of this expenditure, approximately 11.2m (less than 1% of gross revenue budget income) was spent on maintaining the portfolio. This low level of investment is typical of that made over the last 10 years and is now reflected in the condition and suitability of our estate, as measured by our Statutory Performance Indicator returns as shown at figure 3. Figure 3: Statutory Performance Indicator Returns Repairs and maintenance budget for 2013/14 is 12.04m, apportioned 65% planned and 35% arising/reactive repairs.. In comparison, known backlog maintenance currently amounts to approximately 192m, of which 130m is urgent and essential backlog maintenance defined as Previously identified Building Fabric and Engineering Service elements that are essential to repair, to prevent failure of elements that have not been completed, with consequential impact (i.e. immediate or within 2 years) on business compliance and/or continuity. No allowance has been made within these estimates for the cost of addressing any structural issues, deficiencies in building plant, life cycle maintenance, cost of meeting new regulatory requirements or for the cost of upgrading/refurbishment work to extend life/ and or improve functionality of assets Given the competing demands for investment, the only way to address the maintenance backlog would be to further reduce the size of the portfolio. Although progress has been made in rationalising office and depot accommodation (for example Office Rationalisation Programme will reduce by 62% the number of our offices), this work alone will not produce a sustainable estate and a

7 substantial reduction in the number of operational assets will also be required to ensure the estate supports ongoing service needs and expectation. 4.5 Capital Investment A large proportion of our capital spend over recent years has been devoted to improving the school estate resulting in a large number of new schools plus refurbishment and re-modelling and extension of a number of other facilities. Likewise, a large percentage of the repairs and maintenance budget has been devoted to the maintenance of the School Estate. Other Capital Investment has generally been more diffuse in its impact and is increasingly spent on capitalised maintenance activity such as ensuring buildings remain wind and water tight As part of the 10 year Capital Investment Programme, investment of circa 930mhas been allocated on a thematic basis aligned to the Council s priorities. Whilst this investment addresses key areas of priority, without substantial rationalisation of the property portfolio, by and large the physical condition and fitness for purpose of the estate will increasingly impose challenges and constraints as more and more of the current portfolio becomes physically and economically obsolescent Recognising the need to achieve the best balance possible between new investment and investing in the existing estate, in December 2011 Investment Strategy Group (ISG) agreed a cross Directorate proposal to provide funding for the next phase of condition surveys, to include assessing the condition of plant and equipment and the structural condition of our estate. We are also reviewing our approach to planned maintenance which in future will be risk based, with a view to improving the benefits derived from the available funding. 4.6 Carbon Considerations Approximately two-thirds of our carbon footprint (which was 71,800 tonnes CO 2 e in 2011/12) emanates from the property estate, of which 80% is from schools and leisure facilities. We are committed to a 42% reduction in emissions by Against a 15% forecast reduction in emissions since 2006, we have achieved a reduction of 1% against our property estate There are further challenges associated with new Scottish Government targets on energy generation, consumption and heat. However there are also new opportunities to generate and sell electricity To help address these challenges and opportunities, the Energy Strategy was approved by committee in Jan The Energy

8 Strategy aims to provide a cohesive self-funding solution which considers measures to manage down our demand for energy (through culture change, asset rationalisation and investment in better energy management) and manage up sources of sustainable energy generated either for self-consumption or as a source of income for reinvestment. Delivery of the Energy Strategy forms part of the Corporate Improvement Programme. 5.0 Aligning Asset, Business and Community Planning 5.1 The purpose of holding, maintaining and investing in property assets is to support effective service delivery. All assets are owned by the Council and as part of our resource management framework; an overview of the portfolio is required to ensure the Council as a whole achieves the most productive use from its estate. To help ensure a balance is maintained between Council and Service needs and to support future asset rationalisation, service asset plans are in development with Services. 5.2 Service Asset Plans might usefully form part of the Council business planning process by, for example, helping to link service improvement and capital investment planning. In doing so, they might help better to demonstrate the links between business need (supported by robust and objective diagnostic data/options appraisal) and investment solutions. 5.3 Work is also taking place with a range of partners to support a number of joint initiatives. These range from reciprocal arrangements for the sharing for hot desks with Scottish Government and other Councils, to sharing with colleagues from Police, Fire and NHS locally, to initiatives we have supported with CARF and other third sector providers. We have also shared our experiences of office and depot rationalisation with numerous other authorities. 5.4 The outcome of the review of Community Planning, both nationally and locally has re-focused Council priorities to deliver Local Community Plans through the Area Services Managers and their Locality Support Team Leaders, following the approval of the Council s Blueprint for Area Delivery. A Local Community Planning Group comprising representation from all community partners operating in each Area Committee boundary has been formed to identify local issues and priorities. 5.5 At the Fife Partnership Executive Group on 26 June 2013, details of previous asset management partnership work was presented and Fife Councils collective way of working in partnership with other agencies endorsed. The proposal to support Local Community Planning objectives by delivering Local Asset Plans was also supported. 6.0 Improved Governance and Processes 6.1 Experience shows that, like any major change programme, the successful

9 implementation of the Property Asset Management Plan will be reliant upon being supported by robust governance and delivery processes. Consequently, we have developed a central registry, capturing all proposed property changes. Since 2009, 182 non-planned changes have been requested. Working with Services we estimate the following benefits to have been accrued from reducing non-planned accommodation requirements: 1.3% reduction in Fife Council property footprint 2.4m anticipated hypothecated capital receipt 0.6m pa anticipated hypothecated revenue running cost saving. 6.2 Consistent with good practice, governance boards have been established to support Office and Depot rationalisation programmes as well as programmes such as Building Fife s Future and Future of Leisure. We will also establish a board to support the delivery of a review of facilities management arrangements. Recognising that the existing Boards work well and, where appropriate, are supported by a range of local stakeholder groups, to support the delivery of the Property Asset Management Plan, a cross-council Asset Management Group (CAMG) has been established to act as a clearing house. 7.0 Conclusion and Next Steps 7.1 This is the Council s fourth Property Asset Management Plan. The Plan is consistent with best practice guidance and seeks to build on the aims of the draft Council Plan. 7.2 By 2017 it is anticipated this strategy should help enable us to secure the following outcomes from our property asset base: Be more flexible and sustainable; Better support new ways of working and other corporate priorities; Provide a modern customer focused environment; Be smaller in size and located to meet customer requirements and business need; Benefit from a consistent application of common high standards, managed through a corporate approach to Facilities Management; Support partnership working; and Do better with less. List of Appendices Property Asset Management Plan to 2017 Report Contact Jonathan Miles Service Manager - Asset Management Planning Asset & Facilities Management Service Jonathan.Miles@fife.gov.uk Tel: x

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11 CONTENTS Executive Summary 1. Introduction 2. Asset Overview 3. Property Strategy 3.1. Why the Council has property assets 3.2. Council Plan to Key objectives 3.4. Major drivers for asset management 3.5. Energy strategy 3.6. Council policy framework 3.7. Community Plan & Single Outcome Agreement 3.8. Government regulation and statutory compliance 3.9. Our vision & strategic goals Our core values 5. Property Performance Management Framework 5.1. Property performance framework 5.2. Outline of performance management framework 5.3. Rationale for performance indicators 5.4. Performance measures 5.5. Review of current performance and trends 5.6. Benchmark results 6. Implementation Plan 4. Property Operational Framework 4.1. Overview of the Council s approach to asset management planning 4.2. Key roles & responsibilities 4.3. Corporate decision making and proposed establishment of a Council Asset Management Group (CAMG) 4.4. Consultation and engagement 4.5. Challenge and review process 4.6. Working in partnership with other public bodies 4.7. Data and its management 4.8. Managing the asset base.

12 Executive Summary Welcome to the Council s Property Asset Management Strategy and Property Asset Management Plan to The plan sets out our strategy and key objectives for the management of our property asset base. Growing demand for services; Higher expectations from customers. Our properties whether they are schools, care homes, libraries, offices, leisure centres, community halls or the wealth of other facilities we own, provide the place from which services are provided to the people of Fife. Our parks, playing-fields, industrial and other land holdings, etc. also provide an important strategic and community asset. As at 1 April 2012 these assets were valued in our accounts at 1.2bn and extended to 992,185m² of buildings and 3971 ha of land. After people costs, the cost of managing, cleaning, lighting and maintaining our property assets constitutes the second largest expense met by the Council s revenue budget. In the year to April 2012 we invested 172.5m in our capital assets, the majority of which was spent on property by way of investment in new schools, leisure facilities and a whole host of other improvements to our estate. For the current year (2012/13) capital investment is expected to exceed 200m. The Asset Management Plan sets out the key principles for the effective management of the Council s property asset portfolio. The Plan reflects best practice guidance and advice from Audit Scotland, CIPFA, RICS and other organisations and builds on the achievements of previous plans and includes the goals, objectives and major drivers for asset management. Delivery of the Asset Management Plan will make a significant contribution to the aims and outcomes of the Council Plan, Community Plan and Single Outcome Agreement. It will also assist the Council to address some of the strategic challenges it and other public agencies face including: To date we have worked collaboratively with partners which have delivered mutual benefit. This approach has been endorsed by the Fife Partnership and viewed in the context of both the significant financial challenges faced by the Council and rising customer expectations, the Asset Management Plan identifies key challenges and opportunities for further improvement to our estate within our communities. Notwithstanding the good work completed to date we need to recognise that it is people and not buildings that are the core asset of communities, and to achieve better balance between service delivery and community building. Although progress has been made in moving to a more sustainable estate, our property asset base remains too large and is thought to be unsustainable within the current increasingly constrained financial environment. We need to ensure the best balance possible between new investment and investing in the existing estate and maximise the benefit gained from this investment by adopting a consistent approach to the management of our estate. We need to take a medium to long term view of our core property requirements and support this by aligning asset, business and community planning through greater public consultation and community engagement to identify service delivery priorities. Reduced funding year on year;

13 For the retained core estate we need to improve the quality of the way we manage the built environment. It is important to stress that although essentially a strategic document, the Asset Management Plan will be dynamic in nature and will therefore evolve to meet Council Plan objectives as well as the business needs of Services whose co-operation and support has been essential to the delivery of previous asset plans. We also have a long and successful history of working with local community stakeholders and partner organisations to deliver mutual benefit and look forward to continuing this work for the benefit of Fife as a whole. Alan Paul Senior Manager, Property Services August 2013

14 1. Introduction Asset management can be defined as the activity that ensures the property asset portfolio is making the maximum possible contribution to achieving the Council s objectives. This will involve strategic consideration of, for example, what type and location of assets are required to meet Council objectives. It also involves the day to day maintenance and running of these assets. The annual running costs associated with managing and financing assets constitutes the Council s second highest cost against revenue budgets after employee costs. This is Fife Council s fourth Asset Management Plan. Although much still needs to be done, the plan reflects the increasingly mature nature of property planning in Fife. The Council need is the co-location of services to improve the customer experience and make better use of buildings through collaborative working with public, voluntary and private sector partners through property asset sharing and co-location, designed to support innovative and alternate front line service delivery. As part of their 2009 review of Asset Management Planning in local authorities, Audit Scotland was supportive of the approaches being adopted by Fife Council. Key achievements to date include: locally; Delivery against performance metrics which reflect national standards as well as local priorities such as improving energy management and reducing the carbon footprint of our estate, improving accessibility of our estate and contributing to other such as improving the viability of key town centres. To help ensure a systematic approach, our strategy has been developed around four programmes of change, as detailed below: Development of an increasingly council-wide approach to management of assets that is integrated with service and community planning arrangements; Alignment of capital investment planning and asset planning through programmes such as Building Fife s Future, Future of Leisure, Sustainable School Estate, etc.; Support of the Council improvement programmes, such as workforce change, customer management and mobile flexible working through development and delivery of asset rationalisation programmes; Development of strong positive relationships with Service Management, Community Planning Partners and national Agencies such as Scottish Futures Trust through integration of the changes to community planning policy both nationally and Our plan has been documented around a summary overview of the property asset base and a framework of four documents, as described below: 1

15 Property Strategy: This will set out the Council s overarching strategy in relation to its property assets. This strategy will look across the whole portfolio and set out how that portfolio will, as a whole be used in furtherance of the Council s strategic aims. Property Operational Framework: Strategic Programmes The internal arrangements for the governance and management of the property portfolio and strategic direction will be set out in the Property Operational Framework. Property Performance Framework: The Property Performance Framework will set out the performance regime that will support how the Property Strategy is to be delivered. This information will form the basis of the annual update report on delivery of the asset management plan. Implementation Plan: The fourth document, the Implementation Plan will be the place where the three other documents are pulled together to provide an action plan. Joint working to achieve joint outcomes 2

16 2. Asset Overview Figure 1: Property Assets by Type at March 2012 The value of the Council s property assets (excluding council dwellings) as recorded in the Statement of Accounts is over 1.12bn. This is the net book value of the assets, in most cases assuming continued use by the Council, and does not represent the market value of the asset i.e. the price that might reasonably be expected on sale. This significant investment demonstrates the importance of property assets to the Council, and particularly why it is so important to manage and maintain the resource effectively, and ensure that assets are both needed and provide value for money. As at 31 March 2013 the Council owned 2035 property assets which extended to 4342 ha of land (parks, playing fields, etc.) and approx. 1,019,593m² of buildings. In the year to 31 March m (5.9% of the Council s revenue budget) was spent in heating, lighting, cleaning and maintaining our property assets. We leased in 437 properties (in the main to provide homeless persons accommodation) at a rent of 2.95m pa. We leased to third parties 783 properties generating an income of 3.8m pa, in the main these leases were to local businesses and community organisations. Table 1: Property Holding Model (2013) Our property assets are diverse and varied in nature and range from schools, care homes, community facilities to offices, depots and other accommodation managed for community purposes such as public conveniences. A high level breakdown of the asset base by value is shown in figure 1 with the property holding, by Directorate summarised in table 1. By understanding our property portfolio and the needs of services, we will be better placed to support the delivery of Council Priorities. 3

17 3. Property Strategy 3.1. Why the Council has Property Assets. This Property Asset Strategy addresses the management of property assets across the entire Fife Council property portfolio. For the purposes of this document, the assets referred to are fixed property assets comprising land and buildings (but excluding Council Houses that are held as part of the Housing Revenue Account (HRA). Other non-property assets (such as roads, bridges, etc.) are not covered by this Strategy. The Council s property assets are an important resource in contributing to the delivery of efficient and effective front line services to the people of Fife. However, ownership, occupation and operation of property assets are not ends in themselves, and the holding of each asset should have a clear rationale and purpose. The Council is clear that: Property assets held for non-investment purposes should be: sustainable; suitable; in an appropriate condition; sufficient for purpose Our property assets should also make a positive contribution either to direct front-line service delivery or to other socioeconomic objectives of the council over and above the costs of ownership. Our Asset Management Plan details how land and property assets support operational Service front-line delivery strategies. Property is managed strategically to support Council aims and objectives 3.2. The Council Plan to 2017 The Property Asset Management Plan is a key part of the Council Business Planning framework. It supports Services business as usual activity as well as important service and strategic change initiatives, to include the Council Improvement Programme. In particular, Fife Council s framework for business planning and performance management includes a number of the key features to which the Property Strategy is aligned. These include: Performance; Customer; Efficiency; Empowerment. There is also a close relationship between the Property Asset Management Plan and the Capital Investment Plan , which is currently the subject of a review to ensure alignment with the new Council Plan The new and critically acclaimed Dunfermline High School is an example of delivery against a strategic Council priority. 4

18 The significant contribution investment in the asset base makes to delivery of Council priorities was highlighted in the annual update on the Asset Plan considered by Committee in February Various case studies were used in this document to illustrate the strong relationship between Capital Plan and the Asset Plan. Essentially the asset base provides the place from which services are delivered. In particular, it is appropriate to record the significant progress being made across Fife as we invest in our schools, leisure centres, care and community facilities and in improving the quality and provision of social housing. There has also been innovative work, like exploring the potential use of Tax Incremental Financing (TIF) powers to support investment in Fife Energy Park. All of this activity is reflected in record levels of investment; 144m in 2010/11, 174m in 2011/12 and anticipated investment of in excess of 200m in 2012/13. In a climate of reducing budgets, increasing demand for front line support and local services the right sizing of Fife s property asset base has become even more critical. A range of work is currently underway to review various elements of local community provision, associated with Fife s Halls & Centres, operation of the Fife Cultural Trust, local office provision and the School Estate. There is an opportunity to better coordinate these currently developing areas of work with a clear geographic focus on the impact and opportunities which may reside in taking a more holistic approach by area and specific community, taking account of the emerging proposals for rationalisation, integration and community provision development Key Objectives In order to establish what the Council property portfolio should look like and how it should perform, the portfolio needs to be matched to the Council s high level aims and priority themes. In May 2013 the Executive Committee agreed five inter-related aims for the Council Plan to 2017: Growing a vibrant economy Increasing opportunities and reducing poverty and inequality Improving quality of life in local communities Promoting a sustainable society Reforming Fife's public services These five aims are consistent with the objectives set out in Fife s Community Plan 2020 and the Single Outcome Agreement. Moving Towards a Sustainable Estate The accommodation strategy to introduce improved management of the estate has shown positive trends over the last two financial years with targets to reduce the overall footprint of the Council estate being achieved. Over the 5-year period (starting 2010/11) our Office Rationalisation Programme (ORP) will reduce the number of Council offices from 97 to 27 and will deliver revenue savings of 7.7m with 2.8m p.a. thereafter. Capital receipts will be in the order of 14.2m, subject to prevailing market conditions. By the end of 2012/13, 39 offices will have closed, with potentially a further 4 following early into 2013/14. By the end of 2013/14,the modernisation of Town House Kirkcaldy and Cupar County Buildings will have been completed, taking the total number of offices which we expect to close to 59 by end March The ORP is a spend to save initiative and will see 15.7m being invested in improving the efficiency and effectiveness of our estate. The Depots Rationalisation Programme has been developed around a strategy of integrating 7 services and reducing the number of single or dual-service sites from 25 to 3 main sites operating Fifewide. A further 5 ancillary sites, supporting localised grounds maintenance and other services will also be retained. In addition to Council services, the new Centralised Depot facility at Bankhead, (which is widely recognised as model for other similar initiatives elsewhere) will also support the work of the Scottish Fire and Rescue Service, NHS Fife and Police Service for Scotland. 5

19 Investment in Bankhead Depot will be 21.2m and has a 7 year pay back. It is estimated that the project will save 1m in property costs and approximately 3m a year in transformational revenue efficiency savings. Other benefits of this programme include significant process improvement and service integration from sharing and rationalisation of plant, an integrated operations centre, rationalisation of stores and supply chain, and double shifting of plant operations Major Drivers for Asset Management Government Policy Over the last couple of years UK and Scottish Governments have shown increasing interest in the way in which property assets are managed across the entire public civil estate. In Scotland this interest has manifested itself in reports from the Convention of Scottish Local Authorities (COSLA), the Improvement Service for Scottish Local Government (ISSLG) and Scottish Futures Trust (SFT). The report from the Commission on the future delivery of public services, chaired by the late Campbell Christie provides the framework for these reviews. The key message from these reports is that greater public consultation and engagement is required to identify service delivery priorities. The Christie Commission also identified the need for improved collaboration amongst local authorities, NHS Boards, Colleges, Police, and Fire services to share processes and assets to deliver services more effectively as well as releasing significant revenue and capital savings for reinvestment in front line service delivery. Much of Fife Council s response to the Christie Report has been addressed by Fife s Community Plan and Single Outcome Agreement In July 2011, the Council established the Supporting Enterprising Communities Programme Board to examine existing practices and approaches to local community consultation and engagement. Following a review, it revealed that whilst there are examples of good practice and approach there is a need to extend these to ensure a consistency across Fife. The overarching aim of the programme is to support the development of an innovative and enabling culture within Fife Council in relation to working with communities, including consideration of alternative models of service delivery. A range of work is currently underway to review various elements of local community provision: A review of halls and centres provision across Fife has been progressed over a number of years with a further phase of proposals under development. This encompasses opportunities for rationalisation, integration and development of provision. A review of future operation of Cultural Trust facilities (and including specifically library provision) is under development. Significant work has been progressed through the corporate office rationalisation programme which has incorporated changes to local office provision in local communities. The Council has established a 12m community investment fund over the next four years which seeks to support the development of community provision. A review of the School Estate (Building Fife s Future), with significant planned investment in new and improved school provision is under way. There is an opportunity to better co-ordinate these currently developing areas of work with a clear geographic focus on the impact and opportunities which may reside in taking a more holistic approach by area and specific community. A programme of work has commenced to undertake a review of community assets within specific geographical areas taking account of the emerging proposals for rationalisation, integration and community provision development. This has been endorsed by the Fife Partnership. The programme is being led and co-ordinated by the Asset and Facilities Management Service, in conjunction with Area Services Management. It is also anticipated that significant input will be 6

20 required from Community Learning and Development, Leisure and Cultural Services/Cultural Trust. As the case studies used in this document illustrate, partnership working has long since begun in Fife. Police for example, now share facilities with the Council at Cupar, Inverkeithing, Ballingry and Cowdenbeath and are shortly to be moving into Council facilities at Bankhead Central, Glenrothes Energy Strategy In October 2011 the Council Management Team agreed an Energy Strategy targeted at reducing the annual energy bill for our buildings, a current cost of 11.4m per annum, as well as generating revenue from the sale of energy. Two thirds of our carbon footprint is from our buildings, of which over half is from schools and leisure facilities. The total carbon footprint of our estate (2011/12) is tonnes Co 2 e. We have achieved a 1% reduction in our carbon footprint since 2006/07. The Energy Strategy aims to address our carbon reduction targets by providing a self-funding solution. The Strategy seeks to manage down our demand for energy (through culture change, asset rationalisation and investment in better energy management) whilst also managing up sources of sustainable energy generated, whether for self-consumption or as a source of income for reinvestment. Case Study Brunton House Property Strategic Goal 1: Property is managed strategically to support Council aims and objectives Brunton House was refurbished at 1.8m to accommodate a range of strategic and local functions including space for the Community Safety Partnership, Social Work and Education. As a partnership initiative, the building will also house Police, as well as providing accommodation for CARF & community facilities. Specific facilities include provision of a fully accessible PAMIS standard changing unit & WC which is being provided under the Council s Comfort Break scheme. In March 2013 the Council Management Team approved a longer term investment approach to Energy Efficiency measures. Initial proposals for renewable energy development (wind power) were approved by the Executive Committee January A business case for substantial increase in proposed energy efficiency measures is to follow during

21 3.6. Council Policy Framework The Asset Management Plan fits within the context of a wide range of policies, strategies and plans covering key service areas and overarching activities including: Single Outcome Agreement; Community Plan; Council Plan; Medium Term Financial Plan; Capital Investment Plan; Service Plans. The relationship of these documents to the Council Asset Management Plan is shown in figure 2 below: Figure 2: Relationship between Council Plan Priorities and the Property Strategy 3.7. Community Plan and Single Outcome Agreement Fife s Partnership Board, whose principal membership comprises Fife Council; NHS Fife; Fife Constabulary; Scottish Enterprise; University of St Andrews; Scottish Colleges Fife (Adam Smith College, Carnegie College and Elmwood College); Skills Development Scotland; South East Scotland Transport Partnership (SESTran); Fife Voluntary Action and the Scottish Government approved the revised Community Plan for in The plan received full approval by the Council on 12 May The revised Single Outcome Agreement for Fife has been incorporated into the Community Plan and the performance against agreed outcomes will be monitored by the Community Partnership. The Community Plan update was approved at the meeting of Fife Council on 1 November The Community Plan 2020 identified three long-term objectives that need to be delivered over the life of the plan to strengthen Fife s future: Reducing inequalities; Increasing employment; Tackling climate change; These objectives will be met in part through developing closer and collaborative approaches to service delivery with staff, Service users and/or Communities working together and delivering through Local Community Action Plans. The Key Principles include: 8

22 Leadership Strong and visible leadership through the Partnership, and partnership based approaches including supporting thematic strategies; Recognising and supporting the assets and aspirations of individuals and communities Local Community planning arrangements based on seven areas. Increased consultation and engagement; supporting community resilience and empowerment through taking decisions, delivering services controlling and owning assets; Effective and integrated services joined up and collaborative service delivery; alternative methods of service delivery, working in partnership, improving services for those most in need, investing in preventative action, improving procurement of services based on need, sustainability and value for money. A further report on decentralisation enhancing the roles and responsibilities of Area Committees and introducing A Blueprint for Area Delivery was approved on 13 th November One of the consequences was the introduction of Area Community Plans. A report entitled, Joint Property Asset Management Planning was presented to the Fife Partnership Executive Group (FPEG) in June The report highlighted various examples of collaboration and support in asset sharing and transfer amongst the Fife Partnership which has supported the delivery of either new or improved frontline services. The Scottish Futures Trust, on behalf of the Scottish Government, has undertaken national reviews on the performance of the civil public estate in 2011 and 12. These reviews acknowledged the practical approach taken by the partnership in Fife, in respect of joint service delivery and sharing of assets which has proved to be more successful than in most other regions across Scotland. The recommendations in the report were subsequently endorsed, specifically the development of Local Asset Plans (LAPs) and the formation of a Strategic Partnership Property Asset Management Group to oversee delivery. Kirkcaldy is the designated pilot area for the first Local Asset Plan in association with the preparation of the Kirkcaldy Area Local Community Plan. A programme team has been mobilised to develop the Kirkcaldy LCAP and to carry out a community assets review in other areas with specific links to other major capital programmes e.g. Building Fife s Future Government Regulation and Statutory Compliance Statutory Compliance At the end of this financial year we will have completed initial survey/risk assessment programmes for all assets in respect of Asbestos and Legionella. A Fire survey/risk assessment programme is being developed. Carbon Reduction Commitment In line with Scottish and UK Government targets we are committed to a 3% year on year reduction in our carbon emissions. Against a targeted reduction since 2006/07 of a 15% reduction in our emissions, currently we have achieved a 1% reduction. To help improve our performance, an additional 1m has been invested in 2012/13 in energy efficiency measures. Combined with investment made though our two energy management revolving funds, we expect to reduce our carbon emissions by 714 tonnes CO 2 e (1%) this year. This is part of our drive towards securing a more sustainable estate and will be combined with the benefits of other initiatives such as our office and depots rationalisation programmes, which are expected to reduce our carbon emissions 5080 tonnes CO 2 e. Beyond the environmental impact, there is a financial cost associated with the amount of energy our estate consumes, whether by way of utility costs (which are a key target of our Energy Strategy see above) or in meeting our Carbon Reduction Commitment (CRC) tax commitments which currently cost the Council 0.85m pa. As with other similar schemes such as Landfill Tax, it is expected that CRC costs will increase significantly over time. 9

23 3.9. Our Vision and Strategic Goals Figure 3: Property Strategic Goals Drawing on the aims and outcomes of the Council Plan, Community Plan and Single Outcome Agreement, our vision is: To be the benchmark Scottish Asset and Facilities Management Service. Our mission is to effectively manage Fife Council s property assets by ensuring our property assets: Are managed strategically and property objectives are consistent and support the Council s aims and objectives; Supports the needs of the Council, the community it serves and partners; Supports front line service delivery by having the right assets, in the right place at the right time that allow the delivery of efficient and effective services to the public; Are sustainable, suitable and sufficient for its purpose; Are legally compliant and maintained over time; Minimise resource and operating costs and maximise the contribution to the Councils objectives. The individual strands of our property strategy are important as they will determine how the Council expects its property assets to perform, how progress will be measured and in practical terms how it is intended to work towards meeting these objectives during the life of the plan. The high level aims are illustrated in Figure 3 with details of the link to the Council Plan priorities illustrated in table 2: 10

24 Table 2: Links between Council Plan Priorities and Property Strategy Council s Plan Objectives Growing a vibrant economy Links between Corporate Asset Objectives and Council Corporate Objectives Property Strategic Goals 1. Property is managed strategically to support Council objectives; Increasing opportunities and reducing poverty and inequality Property supports the needs of the Council, the community it serves and partners; Improving quality of life in local communities Property supports front line service delivery by having the right assets, in the right place at the right time. Promoting a sustainable society Reforming Fife's public services Property is sustainable, suitable and sufficient for its purpose. 5. Property is legally compliant and maintained over time; 6. Minimise resource and operating costs and maximise the contribution made towards Council objectives; 11