Contents. Asset Management Strategy Background The aims of the Council s Asset Management Strategy... 2

Transcription

1 Contents Asset Management Strategy Background The aims of the Council s Asset Management Strategy The aims of a Partnership Property Strategy The property portfolio of Shropshire Council Implementation of the Strategy The effectiveness of the Strategy Review of this strategy... 9 Appendix A Appendix B Appendix C Appendix D Appendix E Appendix F Appendix G Appendix H Page 0

2 Asset Management Strategy 1.0 Background 1.1 Public sector property assets are vital in ensuring the successful delivery of local services for local communities. In stringent economic times all parts of the public sector are under huge pressure to spend money wisely. The Comprehensive Spending Review announced reductions of 26% to local government funding over the next four financial years. Shropshire Council recognises the need to rationalise its property portfolio and realise financial savings which can be achieved by the improved use of space and improved environmental efficiency of the estate. 1.2 Property represents the second largest expenditure for most organisations. Typically this represents approximately one fifth of total revenue spending. Strategic public estate management can act as a catalyst for service transformation and improvement, and deliver significant financial and energy efficiency savings for the Council. The Government report Leaner and Greener; Delivering Effective Estate Management (published in February 2011) recommended that Local Government should reduce the space that it occupies by 20-30% with the potential savings in running costs of up to 7 billion a year. Appendix A sets out the key recommendations contained in the report. 1.3 Shropshire Council aims to transform the way it does business by developing a modern infrastructure and implementing new ways of working. The Council will save money and improve services by prioritising, planning and managing property assets efficiently, sustainably and in partnership with other public and voluntary sector organisations. Appendix B demonstrates how property transformation supports the Council s transformation priorities. 1.4 Flexible property solutions will be designed and delivered on a local area basis to meet the changing needs of service users and service providers. The key aim of strategic asset management is to take a long term, wide angle view of the public land and building asset base in Shropshire and align this with the corporate goals and objectives of Shropshire Council and its partners. 1.5 It is recognised that there are key drivers for change and co-operation. These are set out in Appendix C. These emphasise the need to manage the Council s property assets more effectively in order to: i) Rationalise the Council s estate by 20% and reduce operational costs to deliver the financial targets identified up to 2014/15. ii) Ensure that the Council s property portfolio is linked to its transformation objectives, plans and investment strategy. Page 1

3 iii) iv) Align the Council s property portfolio with local service delivery ensuring customer requirements shape the design, content and location of assets in local communities. Promote co-location and partnership working by considering the benefits to be gained by reviewing and managing assets across a single public estate. v) Secure best value and demonstrate continuous improvement. vi) vi) vii) viii) ix) Improve the look, feel and location of property to build public confidence, trust and use. Inform investment decisions in environment sustainability to achieve economic savings through carbon reduction and energy efficient measures. Empower local community groups to bid for and acquire property and land to build local sustainable social capital and take ownership, where relevant, of local assets and services. Develop community service hubs in each of the market towns in Shropshire in collaboration with partners and voluntary and community groups. Proactively manage and maximise the economic development potential of our estate to increase business growth and employment in the county. 2.0 The aims of the Council s Asset Management Strategy 2.1 To drive improvement in the performance of the Council s property estate. This is a continual and demanding process and it is essential that effective leadership exists to: i) Develop and promote a vision for the Council s property estate and that of its partners to benefit from the collaborative and innovative use of capital and assets across the public and voluntary sector. ii) iii) Generate corporate and partnership awareness of the gains to be achieved from improved customer intelligence and asset performance. Engender support, trust and commitment across the Council and its partners by reviewing and managing assets across a single public estate. Members have a key role in this leadership process and are vital in shaping the future property portfolio of Shropshire Council. 2.2 To provide the framework for a rationalised property estate that more efficiently, effectively and economically supports service delivery, thus releasing resources which can be reinvested in the retained portfolio or redistributed to other Council priorities. Page 2

4 2.3 To deliver ten key outcomes through more effective management of the Council s property portfolio: i) To rationalise the accommodation space that the Council uses by up to 30% to deliver capital receipts, operational cost savings and carbon efficiency targets. ii) iii) iv) To provide a modern infrastructure and enable new smart ways of working to change the way customers, staff and other service providers do business with each other. To provide a property portfolio that promotes organisational and behavioural change and enables flexible and agile working initiatives. To align property decisions with strategic objectives and outcomes set out in the Council s local development plan, environmental and local economic development strategies. v) To centralise and co-ordinate property decisions and estate management at a corporate level allowing capital spending and investment to be prioritised and monitored in accordance with the approved capital programme. vi) vii) viii) ix) To ensure that property and facilities management principles and standards are adopted within asset management plans to ensure maximum building efficiency, improved service performance and value for money. To set and agree asset management targets at the Executive level to improve space utilisation, reduce running costs, realise capital receipts and improve energy efficiency. To set the framework and criteria for owning, occupying, managing and disposing of property assets. Decision making criteria must be agreed at the Executive level to enable this. To provide properties which are fit for purpose, in a satisfactory condition, safe, accessible for people with disabilities and comply with relevant statutory requirements. x) To maintain a comprehensive and accurate electronic record of all Council and public owned assets to inform property decisions including building condition, suitability, occupancy, space utilisation, energy efficiency and the most appropriate valuation for the asset concerned. The property management information system should be web based and accessible to customers and partners with appropriate securities in place to protect data. 2.4 To implement new space, occupancy, design and quality standards that can be measured and reported to managers and service users. These will include: Page 3

5 a. improving desk occupancy rates to 70% within the core working day b. reducing the staff to desk allocation to 10 : 7 and increase desk sharing c. increasing break out/ collaboration space to encourage interaction d. static work space should not exceed 10.5 m2 per person e. new buildings and refurbishments should meet BREEAM very good (as a minimum) or excellent design standard f. adopting the smart building approach where there is a strong business case for this. g. improving staff and customer satisfaction levels from average to very good in respect of places to do business, work and interact with others 2.5 In summary the Council s Asset Management Strategy: i. Provides the strategic framework for corporate decision making regarding the acquisition, development and disposal of Council land and property to achieve medium term financial targets. ii. Requires a robust data and evidence base of cost, customer intelligence, local service needs and property condition, space utilisation and energy efficiency. iii. Provides a framework for co-operation and co-location of services involving other parts of the public sector and voluntary sector. iv. Takes a place based and customer centric approach to asset mapping and capital investment. v. Engenders a new smart and flexible working philosophy which supports choice of when, where and how to work more effectively. 3.0 The aims of a Partnership Property Strategy 3.1 The strategic aims set out for Shropshire Council are best achieved through collaboration and co-location with partners by: i. Aligning the Council s Asset Management Strategy with those of our partners. This ensures that a coherent asset management approach can be approved at leadership level and at a local level. The Council will take the lead role in developing a county wide public sector asset management strategy. ii. Establishing a structured and resourced approach to working with Area Directors, Corporate Heads of Service and Group Managers leading to the development of Place Based and Service Asset Management Plans that can be developed in partnership with other service providers. Appendix D sets out the process followed by local authority pathfinders in respect of place based asset management. This model will be considered in Shropshire to help develop placed based and community budgets. Page 4

6 iii. Rationalising property portfolios across the public sector to the optimum levels necessary to satisfy service delivery needs on a long term, sustainable basis. iv. Investing prudently in property portfolios in order to unlock efficiencies in crosscutting service delivery across collective estates. This requires a whole life consideration of assets including business case reviews for acquisition, development and disposal. Capital and revenue financial assessments are required for this. v. Challenging property utilisation in relation to fitness for purpose, adaptability to meet future needs and investigating potential for alternative use through the use of property reviews at a county wide and local level. Appendix E outlines the property review considerations that help to inform effective asset management decision making. vi. Ensuring the Council has up-to date, quality data on property condition, suitability, utilisation and running costs on which to base investment decisions, support strategic property asset management planning and develop the Council s Corporate and Service Asset Management Plans. vii. Implementing an asset disposals programme to realise best value from surplus land and buildings. viii. Promoting innovative use of property, embracing flexible working practices and shared accommodation opportunities with partner organisations. ix. Supporting communities in the formation of local trusts/groups to buy, bid for, manage or have a stake in property on behalf of their community. x. Improving the quality of the built environment through sustainable and accessible development and the management of Health and Safety hazards, such as asbestos. xi. Developing the Council s Capital Planning process through integration of asset management and financial planning in one decision making body namely a Shropshire Property Assets Board. 4.0 The property portfolio of Shropshire Council 4.1 Shropshire Council currently occupies and manages a large and varied estate. A table detailing the composition of the Council s estate as per the Council s capital asset register is included at Appendix F. 4.2 The balance sheet value of Council land and property assets as at 31 March 2011 is 842m. Approved capital receipt targets for the 2011/12 to 2014/15 capital programme are 29.5m. Property revenue saving target of 2m has been earmarked for financial 2013/14 with a further 0.8m to be achieved in 2014/15. Page 5

7 4.3 Land and property assets have been mapped at the county town and market town level. These are maintained by the Council s Assets and Estates Service and will be accessible to the public via the Shropshire Council website. 4.4 Assets owned and used by public and voluntary sector partners will be mapped to identify the size, scale and location of all public sector assets in Shropshire. This will identify the potential and opportunity for rationalisation and co-location of front and back office services. 4.5 Customer intelligence will help to define and inform future asset management decisions including decisions to invest and divest in properties. This information will be shared with partner and voluntary sector organisations to provide customer insight and inform key decisions for service integration, co-location and property rationalisation. 4.6 The Council will maintain a list of assets of community value as defined by the provisions of the Community Right to Buy legislation. Community groups will identify and nominate public or private assets of community value in their local area and have opportunity to bid for transfer or purchase of assets considered for disposal. 5.0 Implementation of the Strategy 5.1 The Asset Management Project Board sits within the governance arrangements of the Council s Transformation Programme. The Asset Management Project Board has responsibility for overseeing the direction and scope of the Corporate Asset Management Strategy and for monitoring the delivery of agreed property asset management objectives and targets. 5.2 Property asset management relies heavily on good quality data. The acquisition, maintenance and analysis of this data is key to the delivery of effective strategic asset management. This data is vital for generating Key Performance Indicators necessary for statutory returns and performance benchmarking. Such data must be underpinned by a robust, secure and accessible property information system. 5.3 Specific objectives and targets will be identified within the Council s Corporate, Place Based and Service Asset Management Plans. Appendix G sets out the strategy and planning framework and interdependencies with other key priorities. These objectives shall reflect the principles outlined in this Corporate Property Strategy and will be aligned with the corporate and service aims of the Council and of its partners. The Council s asset management transformation programme will include: i) Approval of the Council s strategic Corporate Asset Management Plan and framework and development of Service Asset Management Plans. ii) Adoption of Place Based Asset Management Plans informed by the outcomes of capital and asset pathfinders. Page 6

8 iii) iv) Delivery of capital receipts, property revenue cost savings and avoidance of outstanding and/ or unnecessary building maintenance costs. Implementing a property asset management information system which will support the strategic management of the Council s property assets and be accessible to our customers. v) Undertaking property reviews involving Area Directors, Local Members, Service Managers, partners and stakeholders as part of the asset management process. Service users will be consulted for their views. vi) vii) viii) ix) Developing a structured approach to working with partners endorsed at the leadership level. Delivery of the property aspects of the Council s capital programme and revenue budget. To establish a Shropshire Property Assets Board to provide a wider strategic forum for property asset management, challenge and coordination. This will include input partners and representatives from community interest and service user groups. Continual analysis and assessment of work activities undertaken and use of creative methods of service delivery to adopt modern and flexible ways of working. This will include a new definition of roles to define the workplace requirements identified in Appendix H. 6.0 The effectiveness of the Strategy 6.1 This will be evaluated through: i) The achievement of financial targets set out in the Council s medium term financial plan. Monitoring returns against targets for capital receipts, revenue cost savings and the avoidance of high building maintenance costs. ii) iii) iv) Establishing and monitoring standards for measuring building condition, suitability, energy and water efficiency, building accessibility, sufficiency (capacity and utilisation) and property revenue costs. Identifying and benchmarking backlog maintenance costs and formally reporting performance in this area. Improvements in customer satisfaction measured through regular customer feedback on the quality, design, use and access to local public sector assets and local services. v) Increasing the level of smart and flexible working to improve service productivity and deliver performance measures set out in paragraph 2.4. Page 7

9 vi) vii) viii) ix) Monitoring achievements set against targets recorded in the Council s Corporate/Service Plans. Monitoring mandatory and vocational key property performance indicators and through benchmarking aspects of the property portfolio against comparator local authorities and public bodies. Monitoring the benefits of reduced costs and trends in both staff and visitor user-satisfaction levels derived from occupying fewer property assets, each of which performs to the standards required and supports effective service delivery. Monitoring achievements made in partnering and co-location with public sector partners. x) Review and update of this strategy. Page 8

10 7.0 Review of this strategy 7.1 The effectiveness of the Council s Asset Management Strategy will be defined by success criteria, financial and performance outcomes set out in the Council s Transformation Plan, Asset Management Plan, Service Asset Management Plans and the strategies agreed with our partners. 7.2 The Council s Transformation Programme Board and the Shropshire Property Assets Board will evaluate the success of the strategy and the need to re-scope its objectives, outcomes and focus in accordance with any new Government directives, new funding and investment opportunities and any changes require to local area and/ or service delivery plans. 7.3 Local communities and customers will be asked to evaluate the success of the strategy on an annual basis by asking them how effectively changes in property and facilities have made services more accessible, effective and affordable within their local area and the county as a whole. Page 9

11 Appendix A Government recommendations for Strategic Asset Management (Source: Leaner and Greener; Delivering Effective Estate Management Feb 2011) Recommendation 1 Local government should reduce the space it occupies by 20-30%, by following best practice examples of low cost, flexible working practices. Recommendation 2 Local government should introduce a range of flexible property solutions to meet changing needs of various users and services. Recommendation 3 Local government should ensure effective property management by establishing centralised control of its estate within one department. A Central Property Unit should be made responsible for centralised property decisions, including leases and the procurement of buildings. Recommendation 4 Local government should incentivise efficient use of space at all levels. They should introduce techniques varying from an internal charge for the property use, to allocating a share of benefits from the sale of vacated property for their own budgetary use, to further incentivise occupied space reduction. Valuing Sustainability Investment in environmental sustainability is an opportunity for achieving economic savings through carbon reduction and energy efficiency measures. The report has found that there is a strong business case for environmental efficiency. The energy cost of producing one tonne of carbon is within the range of 150 to 200. This is in addition to the added costs for carbon emissions generated from the CRC. The introduction of green measures for a standard administrative building, with staff on average public sector wages, can deliver financial savings in the range of per m² per year. Page 10

12 Recommendation 5 Government must emphasise the extent of savings available from decreasing energy consumption and the inclusion of the price for carbon emissions when settling future budgets to incentivise investment in more sustainable estates. Recommendation 6 Local government should use both quantified environmental and economic savings to strengthen the business case of paying a premium for increased environmental efficiency. Cooperation with Partners The report highlights that economic and environmental efficiency gains become considerably larger if local government cooperates with other parts of the public sector and voluntary sector. So called co-location of front and back office services not only improves the service access for the customer, but also lowers operational costs by achieving economies of scale on support services, while generating capital receipts from the sale of redundant property and delivering carbon savings. In order to establish effective joint property solutions, local government and its partners must have the right data about its estate and service delivery. Local government needs to develop effective customer targeting methods to establish the service needs of a community. The appropriate service intelligence should be combined with an asset mapping tool, or a common public sector GIS map, to enable effective decision-making. Recommendation 7 Local government should cooperate with public and voluntary sector partners to identify matching property requirements. This process should involve partners on all central and local government levels as well as service providers from health, police, fire, education and the voluntary sector. Recommendation 8 Local government should develop a Service Asset Strategy, to align service delivery and property requirements. The strategy should set out a forward looking vision of service requirements and be responsive to the changing needs of its customers by employing commercial targeting and profiling tools. Page 11

13 Recommendation 9 Local government should invest in asset management systems and adopt a pragmatic approach to data capture that limits the information collected to what is necessary to inform strategic decisions on the use of the estate. Recommendation 10 Local government should introduce a common set of metrics to analyse the performance of its estates. Effective use and analysis of data should include overlaying essential property data to a GIS system to support effective cluster analysis and the identification of cross boundary rationalisation opportunities. Recommendation 11 Local Government and its public sector partners should establish a joint centralised property management structure to improve the efficiency of property management. Recommendation 12 Local government and other public sector bodies should strive towards the creation of Pooled Asset Vehicles to facilitate a joined up approach to asset utilisation and to create a platform for levering private sector investment into the public sector asset base. Recommendation 13 Central government should seek the removal of legislative, taxation and governance obstacles to the creation of Pooled Asset Vehicles to facilitate public property sharing on the local level. Sustainable Asset Solutions Improving environmental efficiency should be key for local government and its public sector partners. This report highlights that carbon emissions savings of 20-40% are regularly possible within existing buildings through a combination of practical solutions. Cost-effective green solutions should be implemented as a priority, but longer term, Spend to Save options should also be considered for the delivery of longer term benefits. Page 12

14 Recommendation 14 Local government should, as a priority, implement simple low cost measures to reduce energy consumption, carbon emissions and operational costs. Recommendation 15 Local government and its public sector partners need to explore Spend to Save projects, prioritising the retrofitting of existing space over new build, to deliver more extensive carbon reduction of its estate. Local government should seek support from specialised funding sources, such as Salix or the London Green Fund. Page 13

15 Appendix B Effective Asset Management as a transformation tool Benefit mapping against a number of key metrics: Shared Services Accessibility Organisational Culture These metrics reflect the challenges the Council will face over the coming years Customer Experience / Quality Property Catalyst for Regeneration These should be linked in with the Corporate Transformation Plan The property transformation should support these priorities Efficient Service Delivery Sustainability Annual cost of property provision Benefit should be driven by and aligned to key drivers for the Council and its partners Page 14

16 Appendix C Strategic Asset Management Drivers for Change and Key Outcomes Economic constraints Customer Service delivery bodies Local government Public sector Voluntary sector Cooperation benefits Improved environmental efficiency Service improvement Improved economic efficiency Environmental constraints Page 15

17 Appendix D Place Based Asset Management Mapping customer demand Mapping capital and assets Designing vision and solutions Designing finance Procurement and delivery Pathfinder authorities Cambridgeshire Durham Hackney Hull Leeds Leicester/Leicestershire Solihull Swindon Wigan Worcestershire Aim Pathfinders to test a customercentric and place-based approach to asset management and capital investment. Outcomes Deliver Efficiencies Remove Barriers Better Outcomes Page 16

18 Property Review Appendix E 1. Property Review typically assesses the suitability of the property for the requirements of delivering the service from it. Suitability typically covers: Access Location Condition Occupants Space utilisation Running costs and income Ease of use for people with disabilities Security Health and safety 2. In order to inform the suitability assessment and the wider review methodology a more detailed suite of property information is assembled. A typical example covers: Tenure Size Function and use Planning constraints and future opportunity Age and construction Condition and backlog maintenance DDA assessment Asset, open market or rental values Opportunities for future use with other services, partners and community groups Cost benefit analysis assessing capital and revenue implications Service specific information such as priorities, objectives and outputs, local or national performance indicators, and demographics 3. The outcomes of the Review may, depending on the Council or Service priorities, generate recommendations that could include: Retain the property for existing use Transfer to community ownership Improve utilisation either by the existing service or introduce new services & partners Indicate the need for investment if to be retained Its retention pending longer term development opportunities Identifying that it is surplus to requirements 4. Following any decision to dispose of a property Council officers will implement the following plans: The asset disposal plan to include legal, planning, valuation, marketing and financial input to ensure swift resolution and maximum financial gain The de-commissioning and service re-location plan to ensure smooth transition and minimise business disruption The communication plan to inform partners, customers and service users of changes. Page 17

19 Shropshire Council capital assets register information on the Council s estate Appendix F Property Use Freehold Leasehold Leased Out No Interest or Formal Agreement PFI Sites Total Number Administrative Offices Advisory Services Centres Archives Arts Business / Commercial Sites Car Parks Churches / Cemeteries / Crematoriums Childrens Centres Childrens Services Connexions Education Centres Elections Group Homes Gypsy Sites Highway Properties Housing General Fund Integrated Offender Management Learning and Training Leisure Facilities Libraries Markets and Town Halls Mental Health and Older Peoples Services Mental Health Residential Museums Multi Occupancy Sites Physical and Learning Disabilities Public Conveniences Registrars (excluding shared facilities) Residential Homes for Older People Schools Substance Misuse Smallholdings Waste Management Sites Youth Centres / Offices Council Dwellings (HRA) Sheltered Dwellings Communal Rooms Garages Page 18

20 Asset Management Planning Framework Appendix G Shropshire Partnership Asset Management Strategy Transformation Strategy; Modern infrastructure and different ways of working ICT Strategy Customer First Local Development Plan Shropshire Council Asset SAMDEV Management Strategy Place Plans Flexible & Mobile Working Medium Term Financial Plan Financial targets Asset Management Plans (AMPs) Corporate Place based/ Locality Working Services Carbon reduction and sustainability plan Accommodation Strategy Asset Disposal Plan Business Continuity Plans Page 19

21 Flexible Working Four Box Model Setting up ways to work from home, as well as providing hot-desking areas and mobile devices, promotes a more flexible working environment and allows workers to work in the field or to attend their nearest hot desk, rather than travelling regularly to a main office. Hub (Office) A. Role requires dedicated space and daily responsibilities in the office environment. B. Assigned a single workspace in office For example payroll services Club C. Roles does not require dedicated workspace. Often shares time between office and other locations at least 1 day per week D. Choose from among various individual & collaborative workspaces For example Social Workers / area managers Appendix H Home E. Primarily works from home and occasionally visits offices or sites For example customer services advisors Local F. Primarily works within a locality such as site, non office based For example street scene The above descriptors were created which would best illustrate the roles and activities within the workplace. In addition it enables us to :- establish the type and location of workspace required establish the infrastructure required by the staff challenge assumptions about traditional ways of working. creative around service delivery and design Page 20