Corporate Asset Management Plan (Land and Buildings)

Transcription

1 Corporate Asset Management Plan (Land and Buildings) Council - Corporate Asset Management Plan v3-1 -

2 Foreword By Councillor Kieran Quinn, Cabinet Deputy (Economic Services) This Corporate Asset Management Plan, Tameside s fifth since the year 2000, sets out the Council s approach for the next three years As Cabinet Member for Economic Services, and Chairman of the Strategic Asset Management Group, I am well placed to focus on asset management. This continues to be high on the Council s agenda as we know that the appropriate use of assets in the right location makes all the difference to service delivery. As a top performing council, the Audit Commission confirmed that we are innovative and efficient in the use of resources - including property - to support the delivery of our ambitions and priorities. The Corporate Asset Management Plan sets out how we are optimising the use of land and property assets to support the delivery of front line services, the regeneration of our neighbourhoods and meeting corporate objectives. To achieve these aims and objectives, the Council recognises that the effective and efficient utilisation of its capital and property resources is key. This document demonstrates the Council's efforts to meet the challenge of providing facilities that will contribute to the delivery of good quality services to the community and other stakeholders in the Borough. Asset management is a major component for us in the drive for improvement, efficiency and business transformation. We look to lead by example on energy savings and reduction of carbon emissions with particular emphasis on Council buildings We are now beginning to work more closely with our partnership organizations to develop modern, joined-up service delivery opportunities that will improve services and customer experience. The development of this Plan will enable the Council to continue to develop towards improvement in the strategic management and use of its assets, ensuring that the front line Council and other related public services are provided and supported via accessible and well maintained facilities. This Plan has strong links with the Medium Term Financial Strategy and the Capital Strategy. These provide the structure for the use of available financial resources to deliver practically wider Council objectives and individual Service s property aspirations. I anticipate that this framework will assist the Council in pursuing it aims for continuous improvement through sound asset management. Signed Councillor Kieran Quinn, Cabinet Deputy (Economic Services) Chair Strategic Asset Management group September 2008 Council - Corporate Asset Management Plan v3-2 -

3 Executive Summary Tameside delivers services from over 300 properties alongside partner organisations such as the PCT, schools, the community sector and the police. These properties are valued in their existing use at 532million. The council also has a varied portfolio of producing a rental income of nearly 3.5million per annum (including markets), which is used to support the council s finances. Over the next 2 years the council expects to raise around 9 million from property sales, by exploiting the development potential of assets no longer required by the council. Property is currently managed in a number of ways, providing strategic and operational estate management, building consultancy, project management and facilities management. Most professional services are supplied in house. Property Services is positioning itself to act fully as the council s landlord through the Corporate Landlord model by taking responsibility for the structure and main services of all operational buildings. Under the roll-out of the Corporate Landlord Initiative, Directorates will be treated as tenants and relieved of the responsibility for building management, enabling the front line services to concentrate on core business. Works continue to improve accessibility to council buildings, and we are developing a range of measures to promote energy efficiency and sustainability. Pro-active management of property assets is a key element of the Comprehensive Performance Assessment which contributed to our score of 4. The Council already complies with the majority of the use of resources elements and is taking steps to enhance its performance where necessary. In particular a new property data management system is being implemented and a structured plan to reduce the maintenance backlog will be prepared. Similarly there is an ongoing review of the interface between the Council s asset base and local public sector agencies and the community sector. The Service is also helping Directorates prepare their own service asset management strategies to take advantage of the opportunities available under the emerging Local Development Framework. The Council s emerging accommodation strategy will set out the Council s drive for more efficient working practices against the increasing pressure around delivering value for money. Property Services is developing facilities at outlying public buildings, which anchor public sector services at a local and responsive level. This may in time enable a wider range of Council and other public sector services to be brought together. The Council is also seeking to enhance the performance of its commercial assets by more active management including sale and re-investment where appropriate. Over the last 12 months we can demonstrate that; - The Corporate Asset Management Plan has corporate ownership and is a living document updated and published every year. - Major construction projects continue to be successfully delivered. - The Council s financial position continues to be supported through generating capital receipts and revenue income from the investment estate. - Ashton Market will re-open in November 2008, restoring Ashton s standing as a regional retail destination, thanks to good project management. Council - Corporate Asset Management Plan v3-3 -

4 - Promotion of the council s principal indoor and outdoor markets has continued through a difficult period and this together, with the re-launch of Ashton Market Hall, will support the local retail economy and vibrancy of our main town centres. - Our buildings provide safe and comfortable environments - The Council s property assets are being strategically managed and opportunities for rationalisation and co-location with public sector delivery organisations are being fully explored. - Visible progress has been made on all the large developments to regenerate the Borough. - The Building Schools for the Future programme has continued to develop towards financial close with the preferred bidder. - The commitment to reduce the Council s carbon footprint associated with buildings use is taking effect by working with the Energy Unit. Work will continue to improve the use of our land and building resources through developing the asset management function to meet the needs of front line services. There are many challenges ahead particularly around the downturn in the property market, which will require lateral thinking and some tough decisions, in an environment where capital receipts and external funding are becoming increasingly difficult to obtain. Finally, Property Services now leads on the Council s Working Differently Programme. encompassing technological advances in communication and information, new office environments and flexible working arrangements, which will transform the way the Council operates and delivers services. Alan Stopher, Assistant Executive Director (Property Services) Council - Corporate Asset Management Plan v3-4 -

5 Contents Page No: Foreword 6 Executive Summary Introduction Corporate Context Corporate Asset Framework Changes in the External Environment and their Implications for Property Service Delivery and Accommodation Needs Likely Future Requirements of Service Areas Existing Portfolio and its Performance Review and Challenge Options Appraisal Asset Management Programme 69 Appendix A Corporate Landlord Implementation Plan 72 Appendix B Corporate Landlord Programme Brief 75 Appendix C References 79 Council - Corporate Asset Management Plan v3-5 -

6 1.0 Introduction This document is an update building on the Corporate Asset Management plan , outlining Tameside Metropolitan Borough Council s approach to asset management and highlights the progress made over the last 5 years. This plan principally focuses on corporate land and buildings but refers to and links to other Council asset management processes such as those dealing with highway structures, utilities and street lighting, and schools. The plan draws from the best practice approach set out in Appendix C (references) Specifically this Plan: Provides an overview of the Council s corporate priorities. Details the extent and nature of the Council s current land and buildings portfolio and highlights the extent of the current maintenance backlog. Brings together service area asset management aspirations to realise the key objectives of the Corporate Plan. Looks at opportunities presented by joint service provision and cross - agency working. Sets out how the Council proposes to reduce the maintenance backlog. Looks at how to identify surplus buildings for sale and make effective use of retained assets. Considers the implications for future capital expenditure. Reviews delivery processes. Provides an implementation plan. This Plan links to the Capital Strategy and the Corporate Plan The Plan is presented to Executive Cabinet by the Cabinet Deputy for Economic Services to be discussed and approved before formal adoption by the Council. It will be circulated widely within the Council, shared with other public sector organisations, and made available as a public document. All Heads of Service have been consulted on the form and content of the plan through the Asset Management Group. 2.0 Corporate Context 2.1 The Council The Council as a metropolitan authority carries out the whole range of functions of a statutory unitary authority and as such holds a varied portfolio of land and building assets. Tameside is made up of 9 towns and their rural hinterland over an area of approximately 100 square kilometres on the eastern side of the Greater Manchester conurbation and including the western slopes of the Pennine moors. The Council came into being in 1974 following local government reorganisation and has been a unitary authority since 1986 when the Greater Manchester County Council was disbanded. Based on the latest Office of National Statistics mid year estimate for 2005 the estimated population of Tameside is 214,100. Based on ethnicity population estimates, 7.37% are from black or minority ethnic communities. The district has 19 wards represented by 57 elected Members. As of September 2008 the Council employs 9,366 staff of which 4,737 are based in schools. Council - Corporate Asset Management Plan v3-6 -

7 In 2008/9 the Council s gross expenditure budget is 626 million, its net revenue budget is 189 million and the planned capital expenditure is 64 million. 2.2 Corporate Planning, Goals and Objectives The Council s overall vision is to maximise the wellbeing of the people in the Borough. Based on extensive consultation with local people, businesses and partner organisations the Tameside Strategic Partnership established the key issues affecting the Borough in the future. These are embodied in six themes set out in the Community Strategy as follows: Supportive Communities: Promoting a cohesive Borough with strong and positive relationships between people from all backgrounds and cultures and where all people have similar life opportunities. A Safe Environment: Reducing crime and improving community safety. A Prosperous Society: Improving the local economy through strong sustainable businesses, a skilled workforce and good quality housing. A Learning Community: Raising educational achievement and learning opportunities. A Healthy Population: Improving health and support for vulnerable people. An Attractive Borough: Protecting our environment and creating a cleaner, greener neighbourhood. The Council has four priorities that directly support the six Community Strategy themes, and reflect our areas of responsibility. The priorities are based upon the issues that local people tell us are most important to them. These People s Priorities are: Children and Young People Public safety and combating crime Stimulating the economy to produce more and better jobs The appearance of the borough 2.3 Organisational Framework The political structure is based on the Cabinet system and is led by the Executive Leader and supported by a First Deputy and eight Cabinet Deputies each with their own Warrant of Office. The Council s head of paid service is the Chief Executive. The structure reporting to the Chief Executive involves: The Director of Pensions Three Executive Directors leading the following groups of services: Economy and Environment Children and Young People Neighbourhood and Community Services And Assistant Chief Executives leading under the Deputy Chief Executive the following services: Borough Solicitor Borough Treasurer Council - Corporate Asset Management Plan v3-7 -

8 Executive Support ICT and Transformational Services People and Performance Policy and Performance 3.0 Corporate Asset Framework 3.1 Corporate Asset Objectives Tameside Council s overall aim for its asset management is to ensure that it optimises the use of its land and property in terms of service benefit, financial return and value for money. Beneath this overall aim is a requirement to ensure property: Supports the delivery of the Council s objectives Is well maintained and fit for purpose Is fully utilised Is suitably located and accessible Is cost effective Tameside has made progress towards the overall aim with a number of initiatives over the last few years including one stop shop Customer First points in key town centre offices and libraries, joint police/patroller posts and the development of multi-use buildings at Dukinfield Town Hall and Union Street, Hyde. 3.2 Financial Strategy The Council s Medium Term Financial Strategy (approved June 2008) considers the economic factors facing the Council in the medium term and envisages a revenue funding shortfall of 17million in 2011/ an increase of 4million in shortfall from the previous year. Efficiency savings are being pursued through four areas as follows: Collaborative working Service Reviews Asset Management Other vale for money savings With respect to asset management, paragraph under section 10, subsection 3 of the medium term financial strategy specifically states: Asset management better use of buildings in order to reduce the number occupied and the costs of running them together with the generation of capital receipts from the sale of redundant assets. The strategy further recognises the importance of generating capital receipts: Capital Receipts o The downturn in disposals is a roughly 50/50 mix of operational reasons and the impact of a depressed property market. In previous years when Service Areas have delayed the release of sales for operational reasons or if a sale has been withdrawn because of planning constraints the Council has been able to bring forward prospective sales. The current climate is reducing the Councils ability to reschedule disposals. A balance needs to be struck between forcing a sale or waiting for a better time to sell. Council - Corporate Asset Management Plan v3-8 -

9 o Based on previous years it is likely slippage will increase as the year progresses and this may negate the funding gap. If this does not happen it is possible for borrowing to be taken out. The position will be kept under review. There is recognition within the Council that information sharing and problem solving on property portfolios with other locally based organisations will yield benefits. For example the Primary Care Trust, the Police, Tameside College all have property requirements; office accommodation, storage, training accommodation, etc., and asset management planning in future may be undertaken more efficiently if the Council takes the lead with a more joined up approach with partners, which will compliment the ethos behind the comprehensive area assessment. This plan aims to strengthen the corporate approach to making best use of land and buildings assets, developing its own place shaping role and by presenting a clear delivery model to make a step change in Tameside Headline Performance Measures The six themes set out in the Community Strategy listed in 2.2 above have a number of links to Asset Management. The Council s Corporate Plan sets out the past performance for 2007/08 and the Corporate Projects for 2007/08. Together with Corporate Governance these are listed as shown in Table 1. Table 1 Community Strategy Key Themes Links to Asset Management Supportive Communities Community Centres review of usage Making public buildings accessible New Libraries for Tameside A Safe Environment Safe by design Police/Patroller posts A Prosperous Society Use of Council Property to support regeneration objectives Droylsden, Ashton Moss, St Petersfield, Stalybridge West. Incubation units for business startups Regeneration of Hattersley A Learning Community Building Schools for the Future Primary School Replacement Programme Children s Centres Archive centre Ashton Young People s Centre A Healthy Population Bury Tameside & Glossop LIFT primary care resource centres Investment in Sports Centres and all-weather pitches An Attractive Borough Investment in the Council s Prestige buildings Ashton Markets Redevelopment Reduced use of energy in buildings Local Authority Carbon Management Programme Corporate Governance Effective use of resources Project Management processes Working Differently Council - Corporate Asset Management Plan v3-9 -

10 The Council scored 4 for Use of Resources in 2007 and in so doing improved the score from 3. Headline indicators relating to the main asset requirements are: Functional Suitability of Buildings Condition of Buildings Space Utilisation of Buildings Percentage of Buildings frequently accessed by the public which are fully accessible An annual evaluation is made of the percentage of buildings, which fall into quality categories for each of the first three indicators. The aim in each case is to show year on year improvement in performance of the property portfolio. The fourth headline indicator is the only BVPI indicator directly relating to asset management. BVPI156 is an assessment of the percentage of buildings frequently accessed by the public that are fully compliant with Part III of the Disability Discrimination Act. Following the introduction of the National Indicator Set in April 2008, this BVPI has been dropped nationally but will be retained by Tameside as a Local Performance Indicator to monitor continued improvement based on the BVPI156 definition. There is a strong commitment through systems review to deliver an updated and robust suite of performance indicators, to include the new national property performance indicators (NAPPMI formerly Coprop) and to further develop local indicators. Implementation will be in conjunction with benchworking activities through Chartered Institute of Public Finance Accountancy, Institute of Public Finance Asset Management Programme Network The Annual Efficiency Statement for 2006/07 had as a key driver making the most of the Council s land and property assets, driven through the Capital Strategy and the Asset Management Plan. Specific Service Review issues intended to deliver efficiency savings related to land and buildings asset management are: Service for Children & Young People One fewer school building to maintain Property Services Now concluded markets review resulting in closure of non-viable markets Property Services Reduction in the number of buildings overall District Assemblies Allotments review 3.4. Organisational context of Asset Management Fundamental to the successful implementation of the Council s Corporate Asset Management Plan is the need to have appropriate mechanisms in place to facilitate the asset management process. Achieving the Highest Possible CPA Score - Property Services have contributed to this by demonstrating, through successful Asset Management Planning, that the Council manages its assets strategically and that the Tameside currently achieves good value for money with processes in place to manage and improve value for money in the future. Leadership and Strategy - Asset management planning within the Council is embedded corporately and integrated with service business planning. Services understand what asset management planning is, and the needs of services are considered together in the capital planning process, with capital investment decision-making follows a corporate approach. Structures, Roles and Responsibilities - The structures are in place to deliver continuous improvement in asset management planning with a dedicated strategic asset planning function at both officer and member level. There is demonstrable active participation by all Directorates in Council - Corporate Asset Management Plan v3-10 -

11 asset management, and the Council s Strategic Asset Management Group is championed and chaired by the Portfolio Holder. Implementation - Property Services takes practical approaches to areas that are key to good asset management planning, such as option appraisal, management of property condition and backlog maintenance, office rationalization. There is active Property Services involvement in service reviews and the taking forward of cross-cutting issues such as accessibility and energy efficiency. Inclusion and Engagement - Property Services looks to ensure that stakeholders are involved in consultation on the suitability and performance of assets, and that the results of performance measurement are shared with them. Performance Management - The service is continually developing its approach to performance management relating to assets. It continually reviews what performance is needed to inform decision-making, looking to collect and analyse relevant data, and benchmark performance that will lead to continuous improvement. The development of Partnership Working - Significant headway has been made in delivering AGMA wide services. The service works well in partnership with other public sector service providers such as LIFT and the PCT, developing an integrated approach to the delivery of joint services, and is continually looking to exploit joint delivery opportunities. Provision and Comparison of Unit Cost Data - A significant amount of work has been undertaken by frontline service units to demonstrate Value for Money which has been tested through Senior Management accountability sessions as part of the performance monitoring regime. Any Asset Management decisions made by the Council are either determined under the delegated powers of the officers involved in the Asset Management Groups or, in instances where Member approval is required, then they are referred to either the Cabinet Member for Economic Services, or in the case of decisions affecting the whole Council, they are referred to the Cabinet. The Cabinet Member (Economic Services) now chairs meetings of the recently formed Strategic Asset Management Group, which will raise the corporate profile of strategic asset management. Decisions on investment are discussed at Strategic Capital Group prior to inclusion within the capital programme. The framework for reporting and decision-making on asset management is developing. In 2008 this has the following elements: Full Council* Overview (Audit) Panel* Executive Cabinet* Executive Board* Executive Team Strategic Capital Group* Strategic Efficiency Group* Land and Buildings Workstream* Cabinet Members* Operational Asset Management Group Strategic Asset Management Group* Asset Management Planning Advisory Group* Council - Corporate Asset Management Plan v3-11 -

12 An asterisk (*) indicates Member involvement. Full Council Overview (Audit) Panel Exec Cabinet Exec Board Cab Dep (Econ Services) Strategic Capital Group Exec. Team Strategic and Operational Asset Management Gps Strategic Efficiency Group Land & Buildings Work stream The roles of each of these are set out here Full Council The Council Meeting approves the adoption of the Corporate Asset Management Plan and approves any subsequent revisions. It also approves the Capital Strategy, annual capital programme and any revision of the capital programme and in so doing approves reinvestment of capital receipts generated from asset management activities Overview (Audit) Panel This panel provides a dialogue between the Executive with Scrutiny. All Capital monitoring reports go to the Panel for consideration and approval. Thus by implication it also overviews progress on the reinvestment of capital receipts generated from asset management activities Executive Cabinet The Cabinet is chaired by the Executive Leader of the Council and involves all Cabinet Deputies. It draws up budgets for presenting to Full Council and makes key decisions on issues such as major investment affecting the whole of the Council. Meetings are open to the public Executive Board The Board consists of the Executive Leader, First Deputy Leader, Cabinet Deputies and the Chair of Council Business. They are supported by the Chief Executive, the Borough Treasurer and the Borough Solicitor. It considers all major reports on asset management issues such as Building Schools for the Future, individual reports on major capital schemes, many of which involve reinvestment of capital receipts generated from asset management activities and the Corporate Asset Management Plan itself. The meeting gives political and strategic direction but has no decision making powers. Council - Corporate Asset Management Plan v3-12 -

13 3.4.5 Executive Team The Executive Team is made up of the Chief Executive, Deputy Chief Executive, the three Executive Directors, five Assistant Chief Executives and the Director of Pensions Strategic Capital Group The Strategic Capital Group is chaired by the First Deputy of the Council. It s members include the Executive and Assistant Executive Directors for Economy and Environment, the Assistant Borough Treasurer and, the Assistant Executive Director (Policy and Performance) and is supported by the Principal Capital Accountant. The role of the group is to assist in delivering the aims of the Council s Capital Strategy and in so doing consider applications for investment of capital receipts generated from asset management activities. It also receives reports on the activities of the Asset Management Group and reviews progress on achievement of Capital Receipt targets Strategic Efficiency Group This Group made up of senior members and officers oversees the Council s drive for efficiency. One of the four areas is Asset Management. It receives reports from the Land and Buildings Workstream as well as other workstreams and acts as a programme board for delivery of efficiency savings Land and Buildings Workstream This workstream reports to the Strategic Efficiency Group on key issues relating to the land and buildings asset management and provides a strategic overview in respect of the impact of Building Schools for the Future and the Council s Sports Strategy on the Council s assets. It ensures that the work of the Asset Management Group is aligned with Corporate Priorities Cabinet Members Cabinet Deputies have responsibility for service delivery, which falls within their warrant of office. The Cabinet Deputy for Economic Services holds the Corporate Landlord role and makes Executive Decisions to discharge this responsibility. The holder of the Economic Services warrant is briefed regularly by the Assistant Executive Director (Property Services) who is the Corporate Property Officer on land and buildings asset management issues. Other Cabinet Members have responsibilities that touch and concern asset management namely: Cabinet Deputy for Technical Services, has responsibility for Asset Management relating to Highways and Street-lighting; Cabinet Deputy for Coordination Services, has responsibility for Information and Communications Technology; and Cabinet Deputy for Lifelong Learning, has responsibility for schools Operational Asset Management Group The Operational Asset Management Group is a cross-service senior management forum, chaired by the Assistant Executive Director (Property Services), where representatives from all service departments co-ordinate, on a corporate basis, the Council s approach to asset management. This group reports (informally) to the Council s Strategic Asset Management Group. This Group, which meets every 2 months, oversees the: Co-ordination of the area and service based property review programmes Coordination of service asset management plans Council - Corporate Asset Management Plan v3-13 -

14 Identification of surplus property and recommendations on alternative use/disposal as part of the review process Development of the accommodation strategy Development and implementation of the Corporate Landlord Model. Identification of cross-service opportunities for services and/or partner organizations to share accommodation Examination of innovative options for service provision, e.g. Private Finance Initiative, trusts, joint ventures etc Optimization of the benefits of Working Differently, including new technology, hot desking and working from home. Development of information on the Council s property portfolio including stakeholder assessments of suitability/sufficiency and the development of performance indicators to inform the future makeup of the property portfolio. Outputs of Property Services, ensuring that this business is efficient, customer orientated, sufficiently funded and positioned to support the Council s changing asset management requirements Strategic Asset Management Group The Strategic Asset Management Group meets every 2 months and is chaired by the Cabinet Deputy (Economic Services). The purpose of Strategic Asset Management Group is to act as a steering group which ensures that the Council reviews all land and property holdings, to make certain that they support the aims and objectives set in the Corporate Plan and provide the best means of providing efficient and effective services to the Citizens of Tameside. SAMG provides the forum for considering all of the high level asset management issues within Tameside. Its terms of reference require that SAMG: Formulates and keeps under review the Corporate Asset Management Plan closely aligned with the Capital Strategy and transformation agenda, with a clear prioritized implementation plan. Ensures that the Council s Asset Management Plan has regard for Value for Money. Ensures that all property held by the Council is required for operational, social, or investment purposes and links to corporate objectives. Seeks to minimize the impact of the property portfolio on climate change in conjunction with the work and findings of the Council s Energy Panel. Assesses the impact of major corporate drivers on the Council s property portfolio and makes appropriate recommendations for change. Makes the necessary arrangements for a review of the condition and statutory compliance of the Council s property. Seeks to maximize multi-agency working arrangements through its support of co-location initiatives Oversees the Capital Receipts Programme and the Asset Review process, ensuring that all AMP related projects are both consistent with the Corporate Asset Management Plan and affordable. Seeks to ensure that sufficient provision is made for planned programme maintenance Ensures that an appropriate level of Member involvement/consultation is present in the development of the Asset Management Plan and associated asset management projects Asset Management Planning Advisory Group Not shown on the diagram shown in paragraph 3.4 above, and relevant only to schools, this group oversees, schools capital planning priorities. It is chaired by the Cabinet Member for Lifelong Learning and has representatives from the Local Education Authority, Head teachers and Governors. The Cabinet Member for Lifelong Learning also makes the key decision in respect of any outcome in connection with the review of education provision. Council - Corporate Asset Management Plan v3-14 -

15 Stakeholder Views Tameside Council has a good track record of consulting with and involving local people in decisionmaking. This was recognised in 2005/06 by the award of Beacon status for Getting Closer to Communities. The Council recently became the first Metropolitan Authority to achieve the Charter Mark for all of its services. Participation is a key principle of the Council s decision-making processes and many property projects involve a detailed consultation process. The most recent example relating to asset management was the redevelopment of Ashton Market where 4,000 people visited a prominent exhibition on the market ground in summer 2005 and 800 responses were received. The project has taken on board much of the feedback received by making changes to the eventual design. It is anticipated that the project will be successfully completed in autumn The publication of this Corporate Asset Management Plan update provides the Council with an opportunity to make the development and management of the assets an open and accountable process. The Council consults on a variety of different levels; team, service, district assembly area and borough wide; with a wide variety of groups and bodies and by a wide range of methods. This Asset Management Plan has been developed using contributions from a range of sources, including property managers and service managers. All Tameside service areas have been consulted and their comments have been incorporated in the service area reviews. As part of the Corporate Landlord project, a survey has been undertaken to establish the views of those services using Property Services, and this demonstrated an overall high level of satisfaction. The results of the survey will be analysed to form a management action plan to drive forward improvements within Property services Government Policy and Statutory Responsibilities Government Policy has an impact on the Corporate Asset Management Plan in a number of ways. Legislation has sometimes impacted on the Council s land and buildings assets. In the early 1990s there was the transfer of Further Education colleges away from local authority control. A recent example is the setting up of the Department for Constitutional Affairs and the transfer of Ashton Magistrates Court to the new body. The development of the Private Finance Initiative and associated funding streams means that increasingly facilities will be provided through partnerships designing, building, operating and maintaining in return for regular revenue payments. The Gershon Report has focused the Council on cashable and non-cashable savings of 2.5% over the three years to 2007/08 and the target is currently 3% efficiency savings year on year. Whilst land and buildings assets are illiquid and therefore present difficulties in realising savings in the short term this report has increased the focus on effective asset management. Comprehensive Performance Assessment focuses on effective Use of Resources including the Council s Asset base. Confirmed as a 4 star excellent authority, which is improving strongly, Tameside Council is keen to strengthen its standing and move beyond excellent. Effective use of its land and building resources is seen as a key factor in demonstrating this. The Extended Schools initiative encourages greater use of school premises for community use, which could result in a reduction in the need to provide separate buildings. Council - Corporate Asset Management Plan v3-15 -

16 The Education and Inspections Act 2006 introduced the notion of Trust Schools, Academies and the potential transfer of assets away from Councils. Two Academies have been included in the Council s Building Schools for the Future programme. The first of these Academies to be created is the New Charter Academy in Ashton which will replace the previous Stamford and Hartshead Schools from 1 st September It will operate from these split sites until the summer of 2010, when the new Academy building works at the Broadoak site in Ashton are expected to have been completed. Droylsden Academy is the second proposed Academy for the borough and this will operate from the previous Littlemoss and Droylsden High School sites from 1 st September 2009 until 1 st September 2011, when the new Academy building works at the Droylsden School site are expected to be completed. The creation of Academies involves the transfer of the associated land and buildings across to the respective Academy Trusts, for as long as the sponsor continues to operate the Academy. The sponsor for the Academy in Ashton is the local housing trust, New Charter and the sponsor for the Droylsden Academy is Tameside College. Amendments to Building Regulations are generally raising the standards of environmental efficiency with attendant challenges to design and operation. The introduction on 1 st October 2008 of an energy rating for buildings in line with the EU s Energy Performance of Buildings Directive is involving the Council in an increase in associated survey work. This will enable the Council to better understand the energy efficiency of its buildings, and will be a crucial factor in future investment decisions through options appraisals. The implementation of Part III of the Disability Discrimination Act in October 2004 has encouraged an acceleration in the adaptation of buildings to make them more accessible. This has meant an increase in investment in certain properties and careful consideration of the service delivery consequences in others. With the onset of the Disability Equality Scheme, Council building managers will need to consult disabled peoples user groups on proposed works or service delivery changes. Statutory responsibilities for Health and Safety have increased over the years and there are clear duties for Council premises managers associated with the Workplace Regulations, and specifically in respect of Legionella, Asbestos and Fire Safety. Transfer of community assets The Council has a good track record of dealing with the transfer of assets to community groups. The recently published Quirk Report, acts as a reminder on best practice for dealing with such issues. The Council is currently reviewing its policy and process in terms of dealing with proposals to deal with the transfer of assets to community Corporate Performance Assessment The council s Corporate Asset Management Plan contributed to the nationally-set Use of Resources score of the maximum 4 in the 2007 Assessment. In the current Corporate Performance Assessment there are 18 Key Lines of Enquiry relating to asset management. Eight relate to Level 2, five to Level 3 and five to Level 4 (the highest level achieved by top performing councils). The Council is compliant with most of the requirements. A new set of Key Lines of Enquiry is due to be introduced in 2009 within the Corporate Area Assessment, which will require evidence of: A strategic approach to asset management based on an analysis of need to deliver strategic priorities, service needs and intended outcomes; Manages its asset base to ensure that assets are fit for purpose and provide value for money; Works with partners to maximise the use of its assets for the benefit of the local community. This will influence the shape of the Council s future Property Strategy. Council - Corporate Asset Management Plan v3-16 -

17 The Lyons Review 2004 The Government-sponsored Lyons Review 2004 into asset management aimed to: Make asset management a more strategic activity within the organisation Improve corporate level ownership and review Develop a consistent approach to challenging asset use Develop area based asset management plans Focus on maintenance. Deliver improved assets for the community. Exploit e services Improve public access, e.g. one stop shops, call centres. Access private sector expertise and opportunities in investment and service delivery. All the aims of the Lyons Review are reflected at some point within this Asset Management Plan. Comprehensive Spending Review 2007 The Comprehensive Spending Review 2007 will be the method for implementing the recommendations of the Lyons Review. This will include the release of land holdings for re-use or disposal, and exploit under-used assets, in order to meet the Government s target of 30billion ( 20billion from local authorities) over 5 years. Tameside has carried out a consistent policy of identifying properties suitable for disposal, whilst ensuring that service benefits are maximized. 3.5 Resources and Efficiency Financial Resources The Government introduced Prudential Guidelines in 2004/05 to give local authorities more flexibility in capital investment decisions. These decisions are regulated by the Prudential Code, which was developed by CIPFA and requires each Council to use specific indicators in determining the amount of borrowing it undertakes for capital purposes. Capital plans must be affordable, prudent and sustainable Capital Receipts from disposals The generation of capital receipts has been a high priority for many years and funds generated in this way have enabled the Council to finance capital projects not supported by specific and / or general grants made by central government or other bodies. This proactive approach is set to continue with added benefits in reducing future revenue and capital spend on the land and buildings portfolio. The Council has generated more than 66million from Capital Receipts over the past six years and a further 9million or thereabouts of receipts is forecast over the two years starting in 2008/9. (Table 2 refers). Specific receipts are those linked to capital projects, which rely on them for funds. Non-specific are general receipts not linked to projects. Council - Corporate Asset Management Plan v3-17 -

18 Table 2 Schedule of capital receipts Capital Receipts Year Non-Specific Specific Total actually received 2002/03 Not known Not known 8,692, /04 962,000 3,300,000 4,262, /05 1,504,000 9,455,000 10,959, /06 1,344,000 20,877,000 22,221, /07 993,000 6,268,000 7,261, /08 1,252,000 11,839,000 13,091, /09 (forecast) 1,776,000 2,089, /10 (forecast) 520,000 5,075,000 Capital receipts and progress towards annual targets are monitored on a monthly basis and reported to each meeting of the Strategic Capital Group Backlog maintenance budgets Tameside Council along with most local authorities has in the past set aside insufficient budgets to maintain deteriorating buildings. From 2006/7 onwards the Corporate Asset Management Plan has aimed to reverse this trend and target investment to ensure that there is no further deterioration in the condition of the buildings portfolio. The Capital Programme includes significant provision of 661,000(08/09); 723,000 (09/10) Spend against this budget is allocated by the Asset Management Group in consultation with the Cabinet Member for Economic Services Revenue maintenance budgets The aggregated building maintenance budgets for 2008/9 amount to approximately 1.5million Accessibility Funds An important part of the Corporate Asset Management Plan is to improve access to Council services delivered from operational property. It is recognised that the Disability Discrimination Act Part III, which came into force in October 2004, represents a significant challenge to the Council. To address this, the Council has set aside capital funds to introduce lifts, ramps, power-assisted doors, accessible toilet facilities, hearing loops, signage, parking spaces and decoration to meet DDA part III. The priority buildings are seen as those with public access but improvements are being made to the main council offices to support staff with disabilities and consideration is being given to improving access in parks and outdoor sports facilities Efficiency gains made A number of buildings have been identified as surplus to the Councils requirements. Of the 13 identified in March 2007: Two have been sold Four have been demolished with the land awaiting sale One has been vacated pending sale One is in the process of being vacated Four are under consideration for disposal One is to be retained Council - Corporate Asset Management Plan v3-18 -

19 To increase the Capital Receipts to fund the following three years Capital Programme a schedule of surplus land and buildings was drawn up in February 2007 and work is progressing to achieve an additional target of 4.5million over the three year period. 2007/2008 The following actions have resulted in cashable gains: Closure of two non-viable markets Remodeling of cleaning service management Taking the management of Hyde Town Hall conference centre in house Reduction in spatial occupation requirements of the Architectural Services Unit Reduction in the use of agency staff in cleaning and catering services. Asset Management works closely with the corporate centre on asset management related value for money projects such as challenging the 2005 rating list, which will result in corporate savings across the buildings portfolio Asset Management Funding The total value of Council assets (including schools) at 31 st March 2006 is shown in the capital asset registers for land and buildings was approximately 531million. By way of comparison, the Council s Highway s network has a value of 800million. The total cost of backlog maintenance for 2008/2009 is million. Although backlog maintenance is generally being driven down by a combination of disposals of property in poor condition and targeted investment, the increase this year has come about through an increased level of knowledge on one major building which has been found to be in poor condition on the conclusion of a lease. A total of 1.629million was approved for the period 2007/2008 to 2009/10 to address issues of condition and suitability in line with Corporate Asset Management Plan objectives. The Operational Asset Management Group has a steerage role in terms of prioritizing spend, although this is increasingly becoming a technically driven role through Architectural Services Unit. Individual projects address severe backlog repairs or address remodeling issues around service provision. Part of the allocation is used to improve data availability, through planned surveys and improving the asset management database. Capital funding for major projects is also available through the capital fund bidding process. 18 Investment focuses on rationalizing assets, improving accessibility, reducing carbon emissions and energy usage, ensuring we have the right facilities in the right places. Similarly corporate buildings are audited to determine physical requirements to overcome barriers to access to premises in line with the requirements of the Disability Discrimination Act(s). In line with the Corporate Landlord Project, new procurement arrangements are planned for small works in 2008/2009, based on both price and cost to ensure year on year performance improvements in response time and customer satisfaction Capital Schemes During 2007/08 Tameside Architects successfully managed significant major capital projects with an estimated total contract value in excess of 23.5million: Services for Children and Young People (SCYP) New Build Project Managing External Consultants Team Council - Corporate Asset Management Plan v3-19 -

20 1. Co-located Aldwyn / Hawthorns Primary School 6.4m value opened September Lyndhurst Primary School 4.2m value opened September Ravensfield Enabling 0.4m value - formation of new road and car park in connection with new school, main scheme completing Easter New Build In-House Lead Design with some External Consultant Support 1. Ravensfield Primary School 5.9m value [plus enabling contract above] opening Easter Gee Cross Primary, Foundation Unit 1m value opening November Dowson Primary, Foundation Unit 1.2m value opening January Longdendale School Outdoor Pursuits 0.7m value opened September Refurbishments In-House Design Team 1. Clarence Arcade AYPC 2.05m value - completed March Fairfield Childen s Centre m value completed January Linden Road Children s Centre 0.4m completed January Micklehurst Children s Centre 0.4m completed January Dane Bank Primary Remodelling 1.6m completed June Sports & Leisure 1. Martin Fields, new changing facilities, Astroturf and grass pitches, 1.2m value due for completion in November 2008 Libraries 1. Hyde Union Street, Art Gallery 0.4m value - opened September 2008 Various previous rolling phases, total value 2.2m Estates and Valuation Capital and Revenue outputs During the period 2007/08 Estates and Valuation were responsible for estates and legal work as follows: Specific Capital receipts Generation of 1.39million, through 4 disposals--supporting the capital programme for project based initiatives such as Building Schools for the Future programme, and enabling physical regeneration. Non-specific capital receipts generation of 1.11million, through 25 disposals-supporting the capital programme for distribution to other initiatives. Expenditure via the approved opportunity purchase fund of 0.363million to secure the acquisition of a replacement site for the Mottram agricultural showground. This will be required in connection with the highways infrastructure implementation for the Mottram- Tintwistle by-pass. Management of a non-operational portfolio with an annual income/rent roll of approximately 2.18million, with a fully let industrial unit portfolio-supporting the Council s budgetary position by producing funding that can be recycled to support frontline services. 60 rent reviews were agreed 11 Leases were renewed 18 new lettings were completed 14 Compulsory Purchase Orders were progressed. 5 of these being on behalf of developers Developing the Corporate Property Function The Council has operated a de-centralised property management framework for a considerable time. This was based on the principle that service units needed facilities in order to deliver their services to the community and as such relevant assets should be vested in them rather than held be a central corporate department. Council - Corporate Asset Management Plan v3-20 -