Waverley Borough Council Committee System - Committee Document
Meeting of the Executive held on 09/07/2002
Draft 3 - Waverley Borough Council Asset Management Plan 2002/03
WAVERLEY BOROUGH COUNCIL
ASSET MANAGEMENT PLAN 2002/03
1.1 The following Asset Management Plan was approved by full Council on 23rd July 2002. It has been developed, and will be implemented in agreement with the Executive Portfolio holder for property.
1.2 Waverley has a limited property portfolio, having, by virtue of previous property reviews, disposed of identified surplus assets. The Asset Management Plan has been developed to ensure that the Council takes a corporate and strategic approach to managing it’s corporate assets. It is designed to have links to the Council’s real aims of continuing and improving service delivery.
1.3 The Council’s nominated Corporate Property Officer works with a cross-departmental Asset Management Team to advise and support the Council and its Management Board as the Asset Management Plan is implemented.
1.4 Waverley has “debt-free” status and there is limited availability of capital for the furtherance and improvement of our service delivery. It is therefore considered important that the use of property for service delivery is regularly and rigorously tested to ensure that its use is the most efficient, economic and effective. The use and management of operational and non-operational assets by services is part of any consideration during Best Value Reviews, and the Corporate Property Officer is consulted as part of the review process. The Corporate Property Officer is also consulted as Council strategies and potential partnerships schemes are being developed that have implications for the management of corporate assets.
1.5 Data on the Council’s property portfolio is held on a computerised terrier linked to a digital mapping base and the Council also keeps a computerised Asset Register. The Council has a five-year rolling programme of repairs and maintenance.
1.7 The Council’s property service currently measures its performance against six local indicators that were developed during the Fundamental Service Review of the Property Service in 2000/01. These are about to be combined with national indicators that have been defined by the DETR. The existing performance indicators and targets are published annually in the Council’s Performance Plan.
1.8 The property service is guided by a Service Plan, one of a set that covers all of the Council’s services. Service Plans are updated each year as part of the Council’s corporate planning cycle. All Service Plans starting from 2002/03 address asset holdings and development opportunities to strengthen the connection with the Council’s corporate and financial planning processes. This will include issues such as under-use, disposal and acquisition.
Planning and Consultation
2.1 Waverley has appointed its Property and Development Manager as the Corporate Property Officer. The Terms of reference for the Corporate Property Officer have been reviewed but remain unchanged and are set out in Appendix
2.2 A Corporate Asset Management Team has been set up under the Chairmanship of the Corporate Property Officer. It comprises senior personnel from Finance, Housing, Leisure and Chief Executive’s departments. Terms of Reference for this Team have also been reviewed but remain unchanged and are set out in Appendix
2.3.1 Regular meetings are held by the Team, on the third Tuesday of each month, which reports direct to Management Board, giving an opportunity for specific issues to be submitted to the Executive for decision.
2.4 As part of a review of its role the Executive have appointed a new Portfolio Holder with specific responsibility for asset management. In house training (and external training where appropriate) will commence in the near future.
2.5 A system of regular consultation exists with service providers on the three main sports centres. This consists of monthly meetings with the service provider and their management companies. Consultation on the central administrative offices and the locality offices is addressed on an ad hoc basis. All service directors are fully aware of the Asset Management Team and its role and function. Suitability of service property is regularly reassessed and reported back through the Asset Management Team.
2.6 Best Value reviews considers the relevance of all plans and strategies of the Council including the use of assets. The Corporate Property Officer is consulted and through him the Asset Management Team is informed and consideration given to proposed changes as appropriate.
2.7 Currently Waverley is working on a number of potential partnership schemes, all of which are designed to facilitate the provision of services/facilities across the Borough. These are listed at Appendix
2.8 As an integral part of all Best Value Reviews, service providers are asked to specifically address the adequacy (or otherwise) of all property used for their service provision. Feedback from this is reported directly to the Corporate Asset Management Team and thence to Management Board. Some time ago, the Council undertook to carry out a major review of its offices accommodation at the Council Offices, Godalming. External consultants were commissioned and Stage 1 of the review was completed. That included a detailed analtsis of the accommodation needs of the staff occupying these buildings and completion of a block’ diagram to show how the defined needs could be fitted into the available space. The outcome of Stage 1 was reported to the (then) Operations Committee on 20th March 2000 but further progress was postponed pending the outcome of the Council’s decision to pursue Large Scale Voluntary transfer of its housing stock. Stage 1 of the review provided valuable information about accommodation that is still reasonably current and work has re-started on moving this review forward. A SWOT analysis has recently been carried out which will lead to a report to the Management Board and then to the Executive Committee in
September 2002. Information from Fundamental Service (Best Value) Reviews will be fed into subsequent stages of this review
The progress of this review will take into account the impact of potential ‘modern ways of working’ as identified in paragraph 3.4 of the Council’s IEG Statement insofar as this may give rise to a different space requirement. If this gives rise to a surplus of accommodation space when compared with need, this will be closely monitored to ensure that effective use is made of the surplus.
2.9 The Council’s Service Planning process provides an annual challenge. From 2002/03 onwards Service Plans will routinely challenge the use of assets as part of ongoing business development. The Corporate Property Officer is consulted as part of the process.
2.10 Throughout the past year examples have arisen of a change in use of assets emanating from a direct challenge of property use in service provision. Montrose House in Farnham was formerly used by the Surveying Section of the Housing Department. By relocating our print services within our main offices at Godalming, we were able to free up suitable accommodation for the Surveyors; this, in turn, allowed vacant possession of “Montrose House”. All Directors were consulted by the Corporate Property Officer before establishing that the property was truly surplus to our service requirements. It has subsequently been agreed to use the property, in partnership with the County Council, for the provision of a “Youth Drop-in Centre”
2.11 A further example of challenging our use is the Wharf Depot in Godalming. The Depot has hitherto been used for corporate storage purposes. Through the Asset Management Team it was established that service provision would be unaffected by a relocation of this storage facility elsewhere in the Borough. Suitable alternative accommodation was found in Farnham. The effect has been to release this Depot for redevelopment as a leading and integral part of a Key Development Site and to provide a capital receipt.
2.12 A third example is the relocation of a car park at Riverside at Farnham. On review it has been established that the car park need not be located at Riverside. Instead it is to be relocated within a major regeneration scheme being promoted by Waverley in the Town Centre. A further benefit is that by relocating a town centre tennis club to the Riverside land we free up a substantial and valuable part of the regeneration site for development.
2.13 As is shown in the performance indicators we currently enjoy 100% stakeholder satisfaction. We will strive to continue this record. Stakeholders will continue to be canvassed to establish any change in requirement regarding property and property services.
2.14 The Corporate Property Officer is consulted regularly by the Director of Finance in the preparation of Waverley’s Capital Strategy. He further contributes to the Council’s overall Service Plan, Corporate Plan and, where appropriate, Best Value Reviews.
3.1 Under the framework of the Council’s Implementing Electronic Government (IEG) Statement, the following actions have been taken to improve data management and, thereby, improve services to the end users.
3.2 The Council’s property portfolio has now been analysed in the categories suggested and a summary by type, number and value is included at Appendix
. Holding a relatively small portfolio, Waverley has hitherto split responsibility for management of its assets between the Housing
and Community Welfare Committee (Housing) and Executive
Committee (all other non-housing property). Data on the portfolio is held in a form that can be researched, manipulated and retrieved in order to analyse how the assets are serving Waverley’s corporate aims.
3.3 For the past 12 years, the Council has held property information on a computerised terrier system now linked to a digital mapping base. The information is recorded under a freehold acquisition number. As with traditional terrier systems, information is recorded on size, date of acquisition, price paid, purpose of acquisition, previous use, current use, leases, licences, etc.
3.4 During the past twelve months an updated “Terrier Wizard” system has been installed. This is designed to provide a more sophisticated information system and has been designed by the software manufacturer with input from Waverley’s Property Management Officer through regular “user group” meetings. Further refinements and modifications are introduced by this group on an ad hoc basis.
3.5 The validity of the information held on the system is the subject of regular random tests by the Property Management Officer. A new Estates technician has been appointed during the past twelve months with specific responsibility for maintaining the new system. As a means of extending training this officer is about to embark on a course leading to a professional qualification as a Royal Institute of Chartered Surveyors Estates Technician
3.6 Regular in-house training is offered to all users of the system and the introduction of the new “Terrier Wizard” has necessitated extensive cross departmental instruction
3.7 To complement the terrier the Council has a computerised Asset Register comprising asset lists, values and updates. This information is held as per the terrier, by freehold acquisition number, etc.
3.8 In 1990/91 a condition appraisal was carried out of all corporate properties. This formed the basis for a planned maintenance programme, which is held on a computerised system. The system is an on-going five-year rolling programme for repairs and maintenance; the data being constantly updated and used for budget forecasting purposes. The current condition of any property on the system can therefore be readily ascertained.
3.9 Also during the last year a new Computer Aided Design system has been introduced to complement our existing planned maintenance programme. The Building Surveyors and Building Maintenance Manager have all been fully trained in the use of this new system.
3.10 All information held on the above systems is available in easily retrievable form to the Asset Management Team and selective reports continue to be requested as required
3.11 Further rolling programmes exist for the maintenance or renewal of Car Parks, Drainage systems, Car Park machinery and Street Furniture.
3.12 Waverley continues to operate a rolling programme of maintenance for car parks, machinery and drainage systems. In the light of the severe flooding during the winter of 2000/2001 a review of resources applied to flood defence systems is to be included in the current Best Value Fundamental Service Review into flood defence.
3.13 By consultation with Service Providers, all operational assets are graded A – D/1 – 4. The outcome has been considered by the Asset Management Team and reported through Management Board to the Executive.
3.14 The computerised Terrier has been in use for a number of years and is now well established. It is extensively used by a number of different service providers, particularly our Property Management Section in the provision of valuation information for the Council’s Asset Register.
3.15 Substantial progress has also been made on the introduction of our “Land Gazetteer”. Use is made in this system of UPRN as in our Rates list. We have continued to review the Property Terrier but to date have identified no benefits in changing this to a UPRN base. The facility exists on our system and will be utilised if positive benefits can be established.
Performance Monitoring and Measurement
4.1.1 The Service Plan for Property Services links local performance indicators to the corporate objectives for managing land and property. The local indicators were developed for the purpose of monitoring performance against the targets set for 2001/02. In each case we exceeded our targets for the year. However, the Property Service is adopting the new performance indicators that have been developed for Asset Management Plan by the DETR. The new indicators will replace the local performance indicators for 2002/03.
4.2 Benchmarking has been established in order to compare the performance of the Property and Development Service. It is anticipated however that now systems are in place for data collection there will be suitable comparison in future years.
4.3 Information on the five pPIs is included at Appendix
. Subsequent years monitoring will enable year on year performance to be compared and allow the setting of realistic targets.
4.4 The Council’s key aims and objectives are published in the annual Performance Plan in order to clearly and succinctly present what it is the Council wants to achieve. In addition, the Performance Plan makes the link to performance indicators so that the public can see the connection between Corporate objectives, service delivery and performance management.
5.1 Waverley published a Corporate Plan for the period 1999-2003, in which the management of land and property is identified as a priority area. The Corporate Plan includes objectives that are derived from the Council’s Property Strategy. As a result the Council has established and manages a proactive planned maintenance programme for all of the Council’s corporate properties.
5.2 The Corporate Plan objectives form an integral part of Waverley’s published Best Value Performance Plan. In both, the Council’s approach to managing land and property appears under the key theme of Resources. The Council’s objectives are the:
a) Maintenance of land and property records on computerised terrier
b) Continuous review of reasons for current use and retention of property plus analysis of opportunities for change of use or disposal in the light of approved or anticipated policies including the effect of modern ways of working initiatives
c) Identification of opportunity costs for all uses of Council – owned property.
d) Review of planned maintenance programmes to ensure adequate and accurate budget provision on a rolling programme basis.
e) Investigation of alternative uses for surplus property and, if disposal is determined, vigorous marketing.
f) Ensuring that all service occupiers of corporate property have clearly defined maintenance responsibilities.
g) Continue to seek methods of imposing energy efficiency and supporting Waverley’s strategy for sustainable development.
5.3 The four year plan expires in 2003. As part of the annual corporate planning cycle, the annual review in 2002 will focus on developing corporate objectives for 2003 and beyond. Managing land and property will continue to be an integral component of the Council’s corporate strategy considerations.
5.4 The Council’s Property Service is guided by a Service Plan, which is updated each year as part of the Council’s annual corporate planning cycle. The purpose of the Service Plan is to make sure that the corporate objectives are translated into clear service objectives and targets. The Service Plan includes performance indicators and targets so that progress can be monitored and reviewed.
5.5 The Council is in the process of developing a Community Strategy that will cover all aspects of the social, environmental and economic well being of Waverley. The Community Strategy and Corporate Strategy will be key strategic documents for the Council. However they will serve different purposes and it will be important to avoid overlap or duplication. Principally, the priorities in the Community Strategy will be for Waverley and its partners and will be delivered in partnership. The aims and objectives in the Council’s Corporate Strategy will be for this Council alone. The management of land and property will be intrinsic to the development of the Community Strategy and the achievement of sustainable local communities.
Under – Use and Disposal
6.1 Corporate requirements and priorities are identified through the Corporate Planning process and our Community Strategy. In addition, as stated elsewhere in this plan, surplus property is identified through the Best Value reviews of all services. As surplus property is identified, the Asset Management Team will give detailed consideration to alternative requirements before any recommendation is made that a disposal exercise be carried out.
6.2 The summary of the property portfolio illustrates the relatively small scale of Waverley’s property holdings. A review of holdings in the entire Borough has been completed and development opportunities identified. A programme of regular consultation with Service Providers will be introduced. The Asset Management Team will assess requirements arising from these consultations and any recommendations considered appropriate will be costed and passed to the Executive for consideration.
6.3 The analysis of property performance indicators will be used to assess whether assets are being applied in the most effective way.
6.4 Examples of use of surplus property are illustrated in paragraphs 2.10, 2.11 and 2.12.
Output Outcome Targets
7.1 The Council has in place a Financial Strategy that encompasses all the Council’s income and expenditure over a four year period and an element of that Financial Strategy is Waverley’s Capital Strategy. Waverley’s Capital Strategy as agreed by the Council was sent to the Government Office on 31st July 2001as part of the Single Capital Pot submission. This strategy has recently been reviewed and the updated version is being submitted together with this Asset Management Plan. The Capital Strategy indicates Waverley’s spending priorities taking account of various consultation exercises, which have been undertaken by the Council.
7.2 Waverley’s Financial Strategy has been developed over a number of years to take account of changing circumstances, of which the most recent have been
a) the outcome of the LSVT vote held in July 2000 which produced a majority in favour of remaining with the Council as Landlord, and;
b) the Council having nevertheless achieved debt-free status on 31st March 2001.
7.3 The Financial Strategy includes projections of capital resources likely to be available within the 4 year Capital Plan. These Financial Strategy projections are contained at Appendix
Financial Strategy provides a framework within which Waverley’s forward Capital Programme as contained at Appendix
has been developed. This programme is based on existing and expected resources and therefore is realistic and capable of being delivered within the timescale. However, it is regarded as a base-level programme, which may be supplemented should additional resources be generated through the Council’s property strategy or through partnership funding opportunities.
7.4 The Capital Strategy recognises the key role of capital investment in achieving delivery of Waverley’s corporate and service objectives. The Capital programme is compiled within the parameters established within the Financial Strategy and represents an agreed set of output targets in line with Waverley’s Capital Strategy.
The Role and Tasks of the Corporate Property Officer (CPO)
The Corporate Property Officer, (CPO) will be the Property and Development Manager. The Corporate Property Officer will be responsible for [in addition and complimentary to existing Property and Development service responsibilities] the implementation [tactical level] of the Asset Management Plan [AMP].
The Corporate Property Officer will also:-
a) provide guidance to Members, the Chief Executive and Directors of Services, of the need and procedures to comply with the DETR requirements for Asset Management Plans,
b) obtain the required data from all Directors of Services, analyse the data and produce the required statistics for the property Performance Indicators [pPIs]. Present the results of data analysis on an annual basis to the Asset Management Team and Members. In addition, and when necessary also provide to the DETR, required information on the property portfolio,
c) assess the Corporate Plan and advise the Asset Management Team as to the ability of the property portfolio to achieve the requirements of the Council’s corporate aims,
d) chair the Asset Management Team meetings, set priorities, allocate tasks and timetables,
e) oversee the direct management of all of the Council’s corporate property,
f) instigate the necessary procedures to obtain data for benchmarking and pPIs,
g) link between Asset Management Plan and Corporate Plan and Service Plans,
h) secure link with Capital Investment Strategy and Best Value Reviews.
i) be responsible for the creation of an Asset Disposal Strategy
CORPORATE ASSET MANAGEMENT TEAM
TERMS OF REFERENCE
The Corporate Asset Management Group shall comprise
of the following:
1. Property and Development Manager [who shall be the Council’s designated
Corporate Property Officer
2. Assistant Chief Executive
3. Chief Accountant
4. Head of Leisure Services
5. Assistant Director of Housing
6. Engineering Manager
7. Head of Personnel & Central Services
8. Business & Information Systems Manager
The role of the Corporate Asset Management Group
advise Management Board in respect of the use of the Council’s capital (property) assets so that their use, acquisition, or disposal is maximised for the benefit of the Waverley community
ensure issues concerning capital assets are considered in the widest context having due regard to, for example:
Best Value Performance Plan
Service Strategies and
partner agencies strategic documents
assist with the annual production of the:
Asset Management Plan;
‘Single Pot’ approach; and
Other Strategic planning documents such as the Housing Investment Programme (HIP)
support the Corporate Property Officer, who is responsible for the formulation of the Asset Management Plan annually
review the Capital Assets held by the Council and critically assess whether they are being used to their maximum effect
ensure that appropriate consultation takes place in respect of the Asset Management Plan both internally and with partner organisations
ensure that changing needs, priorities and operating environments are taken into account
help reconcile competing demands and priorities on finite resources
Corporate Asset Management Team shall meet qua
and more frequently as required by the Corporate Property Officer.
The Corporate Asset Management Team shall be chaired by the Corporate Property Officer
Potential Partnership Schemes
Hasleway Community Centre – Haslemere
The provision of a new Community Centre in Haslemere on land owned by Waverley, in partnership with Age Concern Haslemere. The partner has raised substantial capital funds and Waverley is currently looking at the potential of matched-funding. A detailed planning application has currently been submitted.
Provision of a new Sports Hall - Cranleigh
The Council is in negotiations with Cranleigh Baptist Church on the provision of a new dual use sports hall on land owned by Waverley. Construction to be funded by the Church.
Housing Schemes- Cobbets Way, Farnham; Kilnfields, Haslemere; Wyphurst Road, Cranleigh
Negotiations are in hand with Registered Social Landlords for development of these schemes of social housing to meet the Borough’s requirements on land owned by the Council.
Farnham Locality Office
The Locality Office was recently improved and extended in a partnership scheme with the Town Council. Investigation is now underway into ways of improving this facility and its effectiveness by means of further partnership with the Town Council and Surrey County Council.
Broadwater Park Improvements - Godalming
Waverley is discussing the scope for improvements in the leisure facilities provided at Broadwater Park, Godalming with a number of organisations including a state-maintained secondary school, a local charitable trust and several major sports clubs. By making the best collective use of individual assets it may be possible to achieve a level of facility improvement which would not be possible for any one of these organisations acting alone.
East Street Regeneration – Farnham
Waverley is promoting a mixed use regeneration scheme for a substantial area centred on East Street. It is designed to regenerate the East Street area specifically and the Town economy generally. A Planning Brief has been prepared following substantial public consultation and a Development Brief is in preparation. Development partners will be sought with Waverley contributing significant land and property assets to achieve our overall aims.
7. In conjunction with Surrey County Council we provide office accommodation for the Registrar of Births, Deaths and Marriages on a weekly basis within our Central Offices.
8. We also make available surgery rooms at Haslemere and Farnham Locality Offices on a weekly basis for both Age Concern and the Blackwater Valley Enterprise Trust.
NO. OF PROPERTIES/ITEMS
Council Housing Stock
General Fund Dwellings
Shared Ownership Properties
Ewart Bequest Dwellings
OTHER LAND AND BUILDINGS
Sports Centres and Pools
Offices, Administrative Buildings and land associated with administrative buildings
Museums and galleries
NO. OF PROPERTIES/ITEMS
Properties used for or in direct support of residential activities
Other Housing (HRA) property and Non HRA housing
General Fund Garages
Land associated with operational Property
Assessed within valuation of individual properties
Off Street Car Parks
Water and Drainage
Refer to Asset Register
Street Furniture, fixtures and fittings etc.
Refer to Asset Register
NO. OF PROPERTIES/ITEMS
Works of Art
Refer to Asset Register
Refer to Asset Register
Industrial and warehouse property
Depots 3rd party use
Shops on housing estates; Retail units
Historic Buildings – 3rd party use
Property released by a service and awaiting alternative use.
Land declared surplus assets
Sites shown on unused land register
% gross internal floor space in condition categories A - D
Totoal Floor Area
Pp1 2A, B & C
Current internal rate of return
% Rate of Return
Pp1 3A & B
Annual Management Costs per m²
Total expenditure =£155,070
Gross internal floor area for operational property = 28,892m
Gross internal floor area for non-operational property = 3,386m
Costs per m
excluding facilities management costs
Pp1 4 A & B
The Civic Offices 1 April 2001 – 31st March 2002
626,712kWh used x 0.43 conversion factor = 269,486kgCO2
780,160kWh used x 0.19 conversion factor =148,230kgCO2
Total CO2 emissions
269,486kgCO2 14,230kgCO2 = 47,76kgCO2 = 418 tonnes CO2 (approximately)
The Civic Office Building is by far the major consumer of gas and electricity. The system is now being extended to include all other corporate property.
The section is also monitoring performance using local performance indicators. The table below shows the performance for 2000/01 and the targets proposed for 2001/02
PERFORMANCE INDICATORS, ESTIMATES OF PERFORMANCE 2001/2002
AND TARGETS 2002/2003
Full description of PI
Rent arrears as a percentage of rental income from Waverley owned property excluding Housing property, as at 31 March
Percentage of lease review/renewals agreed within six months of the date for determination/review of Waverley owned property, excluding Housing property
Construction or repair/refurbishment work managed by the Property Section completed within date or within timetable
Percentage of enquiries of the Property Terrier (an information system detailing the Council’s land holdings) completed within five working days
Percentage of contracts/projects managed by the Property Section which were judged by the Project sponsor to have been performed satisfactorily or better
*Projects with a value of £500 or greater
With the introduction of the pPIs the Property Section have evaluated the benefit of the local performance indicators and consider that the ones to continue with are LOPD9 (Performed satisfactorily or better), which is a measure of how well the Property Maintenance section have managed the projects and LOPD6 (% of lease review/renewals agreed within 6 months) which is a useful check to ensure all lease renewals/reviews are carried out. Targets for 2002/2003 have only been entered against those two Pis.
Benchmarking with the Wessex Benchmarking Group is continuing in order to compare the performance of the Property and Development Service.
Shook/asset management plan/asset management plan draft 3