APPENDIX 2

PAPER C2

Purpose : For Decision

Committee :    EXECUTIVE

Date :              16 JULY 2002

Title :              CAPITAL PROGRAMME AND ASSET MANAGEMENT - ACQUISITION AND DISPOSALS OF ASSETS

PORTFOLIO HOLDER - RESOURCES

SUMMARY/PURPOSE

The Executive is being asked to agree the proposal of the Portfolio Holder for Resources to commence using the delegated powers procedure in the Council's constitution to buy and sell property where those decisions are in accordance with Council policy. The use of this delegated power will relate to property required for highway or school improvements, to extend existing assets (where that is within existing policy) and the sale of surplus non-operational assets.

BACKGROUND

Under the Council's current procedures all property transactions are reported to the Executive for the contract to proceed. This leads to a number of reports being considered by the Executive about each individual proposal. The constitution enables this procedure to be modernised by empowering the Portfolio Holder to make decisions within Council policy.

PROPERTY ACQUISITIONS

The majority of land acquisitions planned by the Council are for improvements to schools or for improvements to highways. Under the Highway Improvement Programme there are two primary areas of work, namely, to extend the cycle way network and, secondly, for road widening or footway improvements. In progressing negotiations with landowners, the work is undertaken on the basis that the statutory rules of compensation apply, that the landowners should be independently represented in terms of both legal and property advice and on the basis that if terms are settled by agreement, then the landowner’s professional fees are usually recommended for payment along with the cost of accommodation works and any monetary consideration.

There are currently two schemes underway for Education and seven highway improvement schemes involving fifty five landowners. As Members will appreciate, all these requirements come from the Council's Capital Strategy. A list of these acquisitions is as follows:

Schools:

●          Kitbridge Middle School, Newport - New school playing field

●          Nettlestone Primary School, Nettlestone - New entrance improvement

Highway Improvements:

●          Bembridge, Lane End - 1 acquisition

●          Cowes, Baring Road - 9 acquisitions

●          Lake, Sandown Road - 7 acquisitions

●          Niton, Undercliffe Drive - 3 acquisitions

●          St Helens, Upper Green Road - 2 acquisitions

●          Sandown, The Broadway - 3 acquisitions

●          Wootton Bridge, Park Road - 30 acquisitions

PROPERTY DISPOSALS

Over the last two years the Council has developed its Asset Management Plan in accordance with the Good Practice Guidance issued by the DTLR. The next updated plan is required by the Government Office at the end of July and is referred to elsewhere on the agenda. The main aims of the plan are to optimise the use of property and consolidate ownership to a core asset base which fits with the Council's requirements. As part of this procedure all property assets have been categorised according to use and defined as either operational or non-operational property. This information has already been circulated to Members.

Members will also be aware that part of the Council's Capital Programme is locally funded from the sale of surplus assets that primarily come from the non-operational element of the Council's property portfolio.

Non-operational land and buildings are generally held pending some redevelopment proposal or pending disposal in the future and are used for income generation in the interim wherever possible. Some properties have to be retained because they are of very limited or negative value due to restrictions or liabilities.

In this year's Capital Programme the target for capital receipts is £1.5m. This target excludes the accommodation review and the sale of Samuel Whites Industrial Estate at Cowes.

All land sales are undertaken in accordance with the Council's own Disposal Policy. Where in the past land sales have been undertaken by auction or tender, this has worked successfully and existing policy will continue where surplus property is to be sold by tender or auction. In this situation the responsibility to fix the reserve or accept the highest tender is delegated to the Portfolio Holder for Resources having received advice by the Head of Property Services and any property consultant employed by the Council for that purpose.

It is intended to the delegated procedure primarily for school and highway improvements but also for the sale of surplus non-operational assets and where there is an opportunity to extend assets within existing policy. All other matters will be reported to the Executive in the usual way, including disposals where there is a special purchaser.

In formulating a Capital Disposal Programme for the next three years and beyond it is proposed that all the non-operational assets shall be considered as available for disposal.

LEGAL IMPLICAITONS

This proposal follows the procedure agreed by the Council for delegated decisions in April 2002.

FINANCIAL IMPLICATIONS

Producing a forward plan for capital receipts will assist development of the Capital Strategy and achievement of the capital receipts target.

FUTURE PROCEDURE

When the Portfolio Holder is making a decision the following process must be followed:

a)        A report must be prepared based on the normal pro-forma (identical to the style of reports to the Executive) and the Authorising Officer must ensure that all relevant headings have been completed in consultation with the appropriate Officers.

b)        A list of the proposed decisions that the Portfolio Holder is due to take will be circulated to all members via the Bulletin.

c)        Any member of the Council who wishes to express a view about the proposed decision to the Portfolio Holder must convey that view in writing to Committee Services within a period of 3 working days.

d)        The Portfolio Holder, accompanied by a Committee Administrator, will then consider the report in the company of any relevant Officer that the Portfolio Holder considers appropriate.

e)        The Committee Administrator shall record the decision, the reason for making it, detail any alternative options considered and record any conflicts of interests (and if necessary any relevant dispensations which have been granted).

f)         The record of the decision shall be circulated to all members via the Members Bulletin and shall be subject to the usual call in arrangements. The decision shall not be effective until after the call in period.

g)        The Members Bulletin is circulated on Thursdays and it will include any decisions made up to the previous Wednesday.

h)        The Committee Administrator shall record all decisions in the appropriate format in the book kept for this process that shall be open to public inspection.

i)         On the agenda for each meeting of the Executive there shall be an opportunity for questions to be put to any Portfolio Holder on any decisions that they have taken since the last meeting.

RECOMMENDATION

That the Executive endorse this approach for all future property transactions of the following categories:

a)        highway and school improvements;

b)        the disposal of surplus non-operational assets; and

c)        where an opportunity arises to extend existing assets where that falls within existing policy.

BACKGROUND PAPERS

The Councils Constitution

Contact Point : Tony Flower, Head of Property Services ☎ 823263