2020 Corporate Property Strategy
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1 2020 Corporate Property Strategy A corporate property strategy has been developed to provide a long-term direction for the Council s estate and to enable the monitoring of individual services property needs against corporate objectives. The intention is to align the asset base with the organisation s corporate goals and objectives to ensure that land and buildings provide optimal value to the organisation and the community it serves Vision for Property Our property portfolio will support the Council s commitment to provide public services. The future use of commercially let properties will be subject to the current Local Development Framework and other community considerations. Our property portfolio will be: Cost and space efficient We will use our floor space more efficiently, resulting in a reduction of floor space and buildings occupied. We will seek to increase income from surplus operational property to contribute towards the costs of front line services Suitable and sufficient We will ensure that our properties are fit for purpose, they are in the right locations (not necessarily in the Borough) and of the right quality to provide for the needs of our customers and staff Shared Where possible, property will be shared with partner organisations (not necessarily in the Borough) Sustainable and flexible Our buildings will be as efficient and as flexible as possible to support the continually changing ways in which we work and how we aim to collaborate with our partners and meet the needs of our residents. Energy and water efficient Our property will meet our carbon commitments as a responsible organisation and we shall demonstrate leadership by making our buildings more energy and water efficient Councillor Timothy Coleridge Cabinet Member for Housing and Property 17 February 2011
2 Strategic Property Objectives The Corporate Asset Management Plan will set out how the following property objectives are to be achieved and implemented by All service requirements for property will be tested against these corporate property objectives to meet the long term vision for the property portfolio. Vision Cost and space efficient (savings in line with Council targets) Objectives Operational properties with the greatest alternative use value will be considered for release to produce an income stream The Council will seek to reduce operational property running costs over time through the rationalisation and more efficient use of the estate and centralised procurement. The Property Board will set annual running costs targets each year based on previous running costs data, anticipated future unit costs and programmed changes to the portfolio. Overall occupied floor space will be reduced through co-location with different departments and partner organisations as well as rationalisation of the estate The worst performing properties (eg highest running cost, worst condition and poorest location in relation to service need) will be considered for release to produce commercial income or in rare circumstances, sold The Council will work with voluntary organizations and partnership organizations to support their property requirements where appropriate. The number of leased properties will be reduced over time At least 85% of the Council s in-borough back office staff will be located within the main Kensington Town Hall building by 2015(excluding back office staff based in premises which cannot easily be released for an alternative use) Office accommodation in the main Town Hall will be utilised at a principal rate of 7 desks to 10 staff (or lower) by 2015 The use of option appraisal and whole life costing techniques will be embedded within all service departments property business cases and all property projects will incorporate formal post-project evaluation.
3 Vision Suitable and sufficient Shared Sustainable and flexible Energy and water efficient Objectives Properties will be maintained to an appropriate standard for their use, with a reduction in backlog maintenance, where appropriate. 85% of operational floorspace will be in an overall condition category A or B* by 2015, rising to 95% by 2020* 80% of operational buildings will have either an excellent or good * suitability grading by 2015, rising to 95% by 2020 Joined up working practices will be adopted and opportunities for partnership working will be encouraged across all property The portfolio will be flexible and support changing working practices. This will provide for long term sustainability of the estate The Council will ensure that all maintenance activities and capital projects will be sustainable. The property portfolio will be used to further the stated aims of the Council as a community leader, including those set out in the Community Strategy and Core Strategy Through the implementation of the strategic property objectives and the optimisation of the energy efficiency of the estate, the Council s operational property assets will contribute toward the Council s overall carbon emission reduction target of 40%. By April 2011 the Property Board will produce a plan, timetable and annual targets for carbon emission reductions from operational property and agree these with the Climate Change Board The Council will optimise the water efficiency of the operational estate.
4 Notes on Property Objectives Space Efficiency Current estimates suggest that approximately 62% of the council s back office staff are located in the main Town Hall building. This is anticipated to rise to just over 80% assuming that back office staff from all of the buildings in the scope of the SPACE programme are de-canted to the Town Hall by It is estimated that this figure could be subsequently increased if further back office staff are re-located to the Town Hall. Occupation of the Town Hall under SPACE will take place at a principal rate of 7 desks for 10 staff. Calculations are based on estimates as at Jan More detailed analysis and adjusted target setting will become possible following the introduction of the new property asset management software and commissioning of intelligent CAD drawings/occupational efficiency modelling software. Building Condition - As defined in COPROP guidance (Corporate Property Officers in Local Government ) Definition of condition category A Good. Performing as intended and operating efficiently Definition of condition category B Satisfactory. Performing as intended but exhibiting minor deterioration Definition of condition category C Poor. Exhibiting major defects and/or not operating as intended Definition of condition category D Bad. Life expired and/or serious risk of imminent failure Currently, it is understood that 82% of the operational floor-space falls into categories A&B. The definitions given above draw a clear distinction between grades A&B (good/satisfactory) and C&D (poor/bad) and as such, it is felt that the Council should aspire to achieve a high percentage of space in the top 2 categories. Existing condition survey data varies in terms of quality and consistency and in some cases is out of date or missing. This indicator is to be reviewed upon completion of updated condition surveys, anticipated 2012/13 The centralisation of property management, introduction of the new property management information system and procurement of updated condition survey data will aid the achievement of this objective. Building Suitability
5 Definition of Excellent The building is suitable and fully supports service delivery without hinderance. It is sited in an appropriate location, fully utilised, in a satisfactory condition appropriate to its use and operates at an acceptable cost to the Council. Definition of Good - As above. The building is primarily suitable. However, one or more minor issues exist which have no particular impact on service delivery and which can either be managed out or resolved without significant capital expenditure. Definition of Poor The building has several issues which affect service provision and which require significant expenditure to resolve. Definition of Very Poor The building is not suitable for service delivery and has issues which are incapable of resolution even with capital expenditure or a change in management practice. Currently, 70% of the operational estate is graded as excellent or good. As the whole estate review progresses, buildings which are not fit for purpose will be released from the operational portfolio and as such, the percentage of buildings with a poor or very poor rating will diminish. Energy Efficiency The Council has a corporate objective to achieve a 40% reduction in carbon emissions by 2014 (from the 2008 baseline) The Property Board are currently assessing how the operational property estate can contribute toward this target (through various means including the planned rationalisation of the estate, transfer of energy liability to 3 rd party contractors occupying Council sites, installation of green technology etc) and what impact this contribution will have on the overall target. Once this assessment has taken place and an appropriate method of measurement and reporting has been agreed, the Property Board and Climate Change Programme Board will meet in April 2011 and formally agree relevant targets.
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