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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 04/07/2001
ASSET MANAGEMENT PLAN



There is now a statutory requirement to submit Asset Management Plans to the Department of Transport, Local Government and the Regions (DTLR), formerly DETR, on an annual basis commencing July 2001. The draft Asset Management Plan is appended at Annexe 1.

The Corporate Overview and Scrutiny Committee considered this matter on 25th June last and agreed Terms of Reference both for the proposed Asset Management Group and for the Corporate Property Officer.

The resource/environmental implications are referred to in the body of the report.
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APPENDIX D

WAVERLEY BOROUGH COUNCIL

EXECUTIVE COMMITTEE – 4TH JULY 2001



Title:
ASSET MANAGEMENT PLAN
[Wards Affected: N/A]


Summary and Purpose

There is now a statutory requirement to submit Asset Management Plans to the Department of Transport, Local Government and the Regions (DTLR), formerly DETR, on an annual basis commencing July 2001. The draft Asset Management Plan is appended at Annexe 1.

The Corporate Overview and Scrutiny Committee considered this matter on 25th June last and agreed Terms of Reference both for the proposed Asset Management Group and for the Corporate Property Officer.

The resource/environmental implications are referred to in the body of the report.


Introduction

1. The requirement to produce and maintain Asset Management Plans (AMPs) stems from the introduction of the Single Capital Pot as a means of providing a new cross-service allocation for the bulk of Central Government Capital support to local authorities. All local authorities are required to submit Asset Management Plans, together with their Capital Strategies and HIPs bids, by 31st July 2001.

2. Waverley, having recently acquired “debt free” status is unlikely to seek credit approvals for borrowing in the foreseeable future, but nonetheless has to comply with the requirements. It is considered to be in the Council’s interest to be seen to have kept its house in order should capital funding from Central Government be required in the future. In addition, and of particular relevance to Asset Management Plans, it has been made clear in DETR guidance, that the plans will be assessed as “poor, satisfactory or good”. Waverley is not likely to accept a “poor” assessment and, therefore, efforts should be made to demonstrate that it takes a serious and strategic view of the importance of asset management within its corporate planning process.

3. In common with other authorities, Waverley was required to submit a “Dry Run” Asset Management Plan to the DETR by November 2000. This was approved by Management Board and by Policy and Resources Committee and duly submitted on 11th December 2000.

4. Feedback on the “Dry Run” Asset Management Plan was promised by the end of January 2001 but in practice was not received until 23rd March 2001. The assessment from GOSE was “overall, we feel that your Asset Management Plan is developing along the right lines”. Further specific feedback was given on the six key assessment criteria. This feedback, together with subsequent national guidance, has been used to inform the preparation of the Asset Management Plan for submission in July 2001.


5. Fundamental to the Asset Management Plan process is the creation of a cross-service Asset Management Team of senior officers under the chairmanship of a nominated Corporate Property Officer (CPO). Waverley has created such a group and has nominated the Property and Development Manager as its Corporate Property Officer. Clear and precise Terms of Reference are required to be approved, both by Management Board and Members, for the Corporate Property Officer and the Group. The Terms of Reference are referred to in Annexe 1 to this report.

6. A clear and regular reporting line through the Asset Management Plan Group and Management Board, then to Members, is to be established and demonstrated. As a means of demonstrating performance, and ultimately benchmarking, a series of five property Performance Indicators (PIs) have been introduced by the DETR. It will not be possible to implement these before 2002 but the latest guidance indicates that, for the purpose of the 2001 Asset Management Plan, it will be acceptable to demonstrate that provision for the necessary data collection and assessment has been addressed sufficient to introduce the PIs in July 2002. The attached document sets out the manner in which Waverley has addressed this issue.

7. The delay in receiving feedback and further guidance has inevitably led to a very tight timescale. Nonetheless, the Asset Management Plan Group has met twice with each member contributing to the assembly and collation of the relevant material. The Asset Management Plan submitted with this report is therefore incomplete but is nonetheless intended to illustrate how the process is being developed and the procedures that will need to be adopted to introduce a system that will satisfy Central Government requirements.

Resource/environmental implications

8. There are no environmental implications arising from this report. As stated above, having recently acquired “debt free” status, Waverley is unlikely to seek borrowing approval in the near future. However, should it seek to do so in the future, its ability to achieve an allocation from the Single Capital Pot will, in part, be dependant on the ability to demonstrate that Waverley has a fully operational Asset Management process as set out in an Asset Management Plan.

Recommendation

The Executive Committee be recommended that the terms of reference both for the Asset Management Group and for the Corporate Property Officer, as contained in the Annexe to this report be approved, subject to final adjustments being agreed by the Corporate Property Officer in consultation with the appropriate Portfolio Holder.


Background Papers (DoP&D)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

CONTACT OFFICER:
Name: Mr M Stevenson Telephone: 01483 869455

comms/executive/2001-02/016
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