CAPITAL STRATEGY

1 Introduction

The Council's capital investment requirements are set having regard to the Council's corporate objectives, as reflected in its Community Strategy and its Corporate Plan. The Council's principal areas of capital investment relate to the following service areas:

· Housing.

· Education & Community Development.

· Social Services.

· Highways and Transportation.

· Tourism, Leisure Services and Economic Development.

· Environmental Services.

Over 80% of asset value is contained in land and buildings, and substantial investment is required in these sites. The Isle of Wight's population expanded significantly in Victorian times and many of its public buildings are old in nature and in need of investment. Operational sites such as leisure centres, which are well used by locals and tourists, also require ongoing investment to maintain their operational capabilities and revenue earning capacity. In addition the Island has coastal defences of 38.5 kilometres and further substantial investment is needed in order to maintain these and extend coastal defences to other areas of the coastline.

Having regard to its significant capital investment requirements the Council has developed a three year capital strategy which includes the following objectives:

· The Council’s capital strategy will seek to maximise the availability of sources of capital finance available to it. This will include Capital Allocations from Central Government, the generation of capital receipts and all other relevant sources including competitive bidding opportunities, Single Regeneration Budget (SRB) programmes, European funding, and the National Lottery.

· To ensure that available resources are deployed in the most economical, efficient and effective manner.

· To fully utilise the potential of partnerships to create an effective and co-ordinated delivery of public services. The geographical nature of the Isle of Wight means that it has no land boundaries with other local authorities and joint working with other local agencies is a prerequisite for effective and efficient service delivery.

2 Corporate Objectives

The Council's current objectives are:

· To care for vulnerable and disadvantaged people.

· To raise standards of achievement, encourage learning and promote opportunities for all.

· To develop the knowledge and skills needed for employment opportunities.

· To protect and enhance the health, safety and environment of the Island and its people.

· To develop the Island's transport network for the benefit of local people.

· To support and develop Council staff and to manage the Council's property and other resources efficiently and effectively.

· To promote sustainable tourism, leisure, cultural and economic development.

The Council's corporate objectives were reviewed in the 2000/01 financial year and approved by the Council in April 2001. These objectives are contained in the Council's Corporate Plan, and Appendix A illustrates the Council’s Hierarchy of Plans.

3 Consultation

The Council works with a wide variety of organisations including other Council's, the voluntary sector, public sector agencies and the business community.

The Council has developed a wide-ranging basis of consultation across all service areas and these include:

· the formation of community fora to introduce greater public involvement in Council decision making and the setting of strategies and plans.

· a Citizens Panel has been established involving 2500 people who are representative of the Island population and are consulted on Council services on a regular basis. The Panel were consulted on five occasions during the 2001/02 financial year.

· the use of Mori Polls across the Island.

· Public Consultation throughout the Island on the Council’s Budget Strategy.

Consultation is also taken with stakeholders in specific service areas and these include:

· consultation on Housing as detailed in the Council’s Housing Strategy. This involves regular consultation with local Registered Social Landlords (RSL). The Council is an LSVT Authority and committed to the provision of housing through the RSL movement.

· the Education capital programme is evolved through consultation with a forum involving all Head Teachers, School Governors and representatives of the Diocese, and is linked to the Asset Management Plan for schools.

· extensive consultation exercises are carried out for the Unitary Development Plan, Local Transport Plan, and for large capital schemes. A current major consultation concerns the potential pedestrianisation of the centre of Newport, the Island’s capital town.

· following the outcome of its Best Value Review for Leisure Services, involving extensive public consultation, the Council has agreed to outsource its Leisure Services to a Leisure Trust. This decision has been assessed as the best way forward for the generation of capital investment in Leisure Facilities for the Isle of Wight.

The outcome of all consultation exercises are received by the Capital Strategy Group for consideration in the prioritisation of capital investment, and the potential for cross-cutting service initiatives.

The Council will make available to its stakeholders and partners, the outcomes of all consultation initiatives and its response to them.

4 Partners in Investment

1. In determining its capital strategy the Isle of Wight Council seeks to maximise the value of its capital spending with the capital expenditure of other key organisations on the Island. To achieve maximum value from capital resources the Council works to generate an optimum level of capital investment from external resources and from joint working with partnership organisations on the Island. Co-ordination with the Council's partners in social and economic regeneration is crucial to identifying strategic priorities and managing their implementation.

As a relatively small Unitary Authority, the Council recognises the importance of Partnership working in a small community, which faces additional costs relating to its severance by sea. The Council has a long-standing commitment to Partnership working and examples of partnership delivery and the outcomes achieved include:

· Waste Management: following the first PFI project of its type, the Council entered a long-term contract with an annual value of £5 million. This has provided an excellent service and achieved one of the highest ratings in the country for the recycling of household waste and composting.

· Isle of Wight Economic Partnership (IWEP): the Partnership was established as a Company in 1999, and has responsibility for economic development and regeneration. The Partnership also has responsibility for managing the Council’s four successful Single Regeneration Budget (SRB) programmes. Since its establishment the IWEP has created or safeguarded over 1200 jobs, and delivered SRB projects valued at £20 million and benefiting over 1500 voluntary groups.

· Early Years Childcare Development Partnership: this Partnership was established in 1997 to oversee the development of early years provision on the Island. It is independently chaired and exceeded the Government’s targets for 3 and 4 year old places. This innovative Partnership involves 43 independent pre school providers in 46 primary schools, and has topped relevant inspection performance tables.

· Crime and Disorder Partnership: jointly chaired by the Council and the Police Authority, the partnership has achieved a significant reduction in crime (down 13% in 2001/02). It has also achieved significant investment in CCTV through partnership funding with local community forums and Parish and Town Councils.

· Tourism Partnership: the Tourism Partnership brings together the Council and a wide range of tourist industry representatives to market the Island as a tourist destination. Its successes is demonstrated by continued industry support, both financial and operational.

The Council continues to be successful in partnership working with other local and national organisations and Appendix B details some of the projects which have been recently undertaken or that are currently in progress. The Council is also exploring the benefits of alternative methods of capital expenditure procurement, and a recent Partnership contract has been secured to develop the Harbour Project at Ventnor.

5 Capital Investment Programmes

The Council's corporate strategy for capital investment embodies individual strategies for the following service areas:

1. Education

The Education capital strategy encompasses the provision of basic need school places in accordance with DfES guidelines (sufficiency). It is heavily influenced by the Asset Management Plan for Schools having regard to identifying areas of future needs, school condition and suitability. The strategy encourages joint working (under specific DfES initiatives) with schools and other relevant outside bodies eg healthcare, early years agencies, social services, the IW Economic Partnership, the Diocese, the ESF, police, etc.

2. Housing

The Housing Investment Programme (HIP) includes the Council providing resources for capital investment to registered social landlords, for both new build property and property purchase. This investment is financed through its annual housing capital allocation, together with additional investment from the Council's generation of capital receipts. Homelessness is a major problem on the Isle of Wight and affordable rented accommodation in areas providing employment is a major priority. The Isle of Wight Council will also provide for maximising capital resources in respect of its private sector housing renovation grant programme and the provision of Disabled Facility Grants.

3. Social Services

The Isle of Wight Council serves an increasingly elderly population, and capital investment on facilities enabling people to remain in their own homes is a current priority. The Council encourages and enables continued independence of the individual and so help contain the demand for permanent residential provision. With respect to Children's Services the Council will assist vulnerable families to access a range of high quality services promoting their well being and quality of life.

The Council is also currently engaged in a major partnership initiative with the local Health Authority, under the provisions of the Health Act 1999, and has successfully obtained Supplementary Credit Approval (SCA) for capital investment to facilitate this joint working arrangement.

4. Highways and Transportation

The Council has approved a five year Local Transport Plan (LTP) for the period 2001/06. The plan builds on objectives to reduce the need to travel, increase transport choice and travel by sustainable means. The document takes account of local issues concerning social exclusion, health, education and economic developments and is linked to the Community Strategy and Corporate Plan.

5. Economic Development

The Isle of Wight Council is currently the accountable body for four Single Regeneration Budget (SRB) programmes. These programmes relate to training and employment of the Island’s workforce and the successful economic regeneration of its principal towns. SRB programmes are managed through the Isle of Wight Partnership, and capital investment is designed to attract significant matching funding from Partner organisations and the private sector.

6. Emergency Works

In addition to the above determined investment priorities the Council has substantial demands placed on its capital resources arising from coastal erosion, land movement and associated works arising from prolonged periods of heavy rainfall. The Council has recently compiled a grant claim to the Government in accordance with the Bellwin Scheme, and further evidence has been produced to Government Office to substantiate further financial assistance. Since November 2000 substantial land movement has led to the need for works at an estimated total cost of £7 million. This figure includes approximately £4.5 million to reinstate a principal road serving the South of the Island and a large number of small communities, and forming an important part of the Tourism and Economic infrastructure. Given the substantial effect this could have on Capital resources contact with Government Office is fundamental to overcome the potential financial difficulty posed by these works.

6 Prioritisation of Capital Investment

The Council has adopted an Executive and Select Committee style structure in accordance with the Government's Modernising Agenda. Capital Investment decisions are made by the Executive in order to embrace a cross cutting service approach and a corporate strategy for future capital investment.

The Council has set up six Select Committees covering each of its principal service areas. These Committees will have a scrutiny role in examining value for money in service areas, and also to question the decisions taken by the Executive. Each Committee will also provide advice to the Executive on their respective areas of activity, advise the Executive of their priorities for capital investment in projects, and have a role in policy development. A Liaison Committee consisting of the six Select Committee Chairman has also been established in order to address cross cutting service issues.

In order to facilitate a corporate capital strategy, the Council has put in place a Capital Strategy Group of officers whose brief is to advise the Council's Directors through its Board of Strategic Directors. This Group includes a senior manager from each of the Council's Directorates and also the Council’s Lead Officer for Best Value. The Group meets on a regular basis to formulate capital programme proposals and to monitor progress against the programme. The Group will also consider and advise upon the capital implications arising from the outcome of Best Value Reviews. The Director’s Board are charged with making recommendations to the Executive on capital investment and financing matters. Since the inception of this corporate approach to capital investment, the Council has endorsed all capital investment recommendations that have been made to it over a three year period.

Bids for capital resources are invited from all service managers who recognise the need for investment in their service areas. The bids are aggregated for each Council Director who will decide as to which of his priorities will be put forward to the Capital Strategy Group for consideration and prioritisation. In order to facilitate this each Director will complete for each project a capital project appraisal form. The appraisal form (attached as Appendix C) is then presented to the Capital Strategy Group where it is then evaluated having regard to the following information:

· Description and location of proposal

· A need and justification statement

· Alternatives and options appraisal

· Timetable and capital cost, including necessary consents

· Revenue implications, both service and capital financing

· Council policies/strategic objectives/service plan met by the scheme

· Scope of project and consequences of not undertaking

· Potential partners and areas of potential financial assistance

· Government policies affecting project

· Link to Community Strategy and Corporate Plan

· Health and Safety and Legal requirements

The Capital Strategy Group project appraisal exercise will also have regard to the cross-cutting potential of all capital bids and the prospect of attracting contributions or matching funding from other public and private sector organisations.

The projects will then be assimilated and presented with the recommendations of the Capital Strategy Group to each relevant Select Committee for their consideration and analysis. In order to assist option appraisal a scoring mechanism has been devised and this has been approved by the Executive as part of the Project Appraisal document.

Prioritised bids will be forwarded to the Executive during the course of the budgetary process, and the Executive will take decisions as to the allocation of available resources.

7 Resourcing Capital Investment

In addition to Government credit approvals, capital receipts from the sale of surplus Council land and property form a very significant part of the Council’s capital financing resources. Surplus and potentially surplus land and property is held on a central database and prior to the start of each financial year the Property Services Manager and the Corporate Finance Manager will assess the level of capital receipts which can be targeted in the ensuing financial year.

A three year sales programme is then formulated to ensure that the appropriate number of properties are prepared for sale and marketed to reach the target. All asset disposals are agreed by the Council’s Executive and then marketed to reach the sales target.

Progress with the sales programme is monitored on a quarterly basis by the Property Services Manager and Corporate Finance Manager. Where there is any slippage in the capital expenditure programme or in the production of capital receipts, the Corporate Finance Manager will apply the necessary accounting treatment in order to best maximise the Council's overall capital resources. The Capital Strategy Group also have responsibility for advising Directors as to new and additional sources of capital finance which may become available.

The Council will continue to encourage partner organisations to reflect their involvement in the Council's capital programme, by contributing to costs where appropriate. The Council will consider all methods of procuring and financing its capital programme, including Public, Private Partnerships (PPP) and the Private Finance Initiative (PFI) if they can be demonstrated to represent Best Value. A successful PFI project in respect of Waste Collection and Disposal is financially supported by Government and the Council will also continue to enhance capital investment through the use of Planning agreements. The Capital Strategy Group also have the responsibility of advising on the availability of all internal and external sources of capital finance to stakeholders and partners.

The Council has set aside resources that can be accessed by local community organisations who have raised matching sums to progress local community led capital investment. This approach helps promote cross-cutting initiatives, partnership working and enhances the resources available for investment.

The Council will continue to use Operating Leases to supplement capital investment, where it is economically prudent to do so. The acquisition of assets via operating leases will be co-ordinated centrally by the Director of Finance and Information, which will:

· Ensure that the Council does not enter any lease agreements which are not operating leases, and would therefore qualify as credit arrangements and incur capital expenditure consequences.

· Provide a corporate framework for the management and control of leased assets.

· Achieve economies of scale through the procurement process.

The Revenue costs of all capital schemes, both service related and capital financing will be identified consideration in for the formulation of the Council’s capital programme and revenue budget, this information must be identified on each capital project appraisal form.

8 Monitoring and Evaluation of the Capital Strategy and Programmes

The capital strategy will be the subject of a continuous review having regard to outcomes from Best Value reviews, and any changes in government legislation in relation to capital control mechanisms and the introduction of the new “Prudential” control framework, planned for the 2004/05 financial year.

The Council has introduced a three-year capital programme, which will be considered each year as part of its budget cycle, with effect from the 2002/03 financial year. Having regard to the demand for capital resources, careful planning is crucial in order that they can be maximised.

Capital expenditure monitoring reports are produced for all capital projects on a monthly basis. These reports are distributed to all Directors who have responsibility for capital projects, and to Members of the Council Select Committee for each respective service area. The newly created member led Measuring Performance Task Group will oversee the performance of capital projects.

Directors responsible for capital schemes will continue to work with the Capital Strategy Group to maximise the benefit of all services from capital investment. This relationship is a key component of the project appraisal process and also ensures that solutions that cut across boundaries are recognised at an early stage.

A substantial amount of capital resources are invested in the Council’s Asset Base, and part of the Asset Management process provides for a comprehensive annual assessment of all capital building projects. This report is submitted to all Directors, the Council Executive and Resources Select Committee.

The Council has subscribed to the CIPFA Benchmarking Club and will be reporting on all benchmarked activities on a regular basis to each Select Committee. Membership of the Treasury Management Benchmarking Group has been effected to monitor the cost of Capital Financing, and the Council’s performance in this area is reported to the Council on an annual basis. The Council has also arranged for a Peer Group Review to take place through the Improvement and Development Agency (IdeA) in June 2003. It is intended to use this review to benchmark the Council using the methodology contained in the IdeA report “Benchmark of the Ideal Local Authority”.

With regard to investment in Housing, project evaluation on RSL investment is undertaken by the Housing Corporation. The Council reports on the completion of housing schemes through its Social Services and Housing Select Committee.

Each capital project will be subject to a post project evaluation and details of the Council’s Performance Review activity are contained at Appendix D.

Any further information on the Capital Investment Strategy can be obtained from the following nominated Officer for this purpose:

Contact: Mr Gareth Hughes, Corporate Finance Manager (Tel No 01983 823604) (e-mail address: [email protected])

APPENDIX A

Hierarchy of Plans

Working with its partners the Isle of Wight Council has established the Island Futures Partnership.

The overall vision for the Council is set out in the Island Futures Community Strategy. This document, prepared from extensive consultation with the community outlines the community’s priorities and objectives. To deliver Community Strategy the Council has prepared a framework of integrated documents, shown below, that provide the vehicle for turning this vision into reality. This Capital Strategy is a key document in this framework and plays a fundamental role in ensuring that the resources of the Council are targeted towards delivering the Community Strategy.

The results of the consultation exercise have been a key input to the Council’s Corporate Plan, which makes explicit the Council’s contribution to the delivery of the Community Strategy.

These plans are reviewed and updated annually in the light of changing priorities and resources, ongoing consultations, as well as the outcomes of the Best Value reviews etc. to ensure that they reflect current community needs and are achievable.

APPENDIX B

HOUSING

Project

Partners

Community Links

Foyer Project at Ryde, Isle of Wight

Medina Housing Association

Housing Corporation

Ryde Community Forum

Isle of Wight Partnership

Smallbrook Sports Centre

Isle of Wight College

Project Outline

This project is designed to provide accommodation, personal and skills training, and employment opportunities for young people. This project is being delivered through the Isle of Wight Partnership and a successful Single Regeneration Budget Programme. The project is complete, occupied to its full capacity, and consideration is currently being given to a similar scheme elsewhere on the Island.

SOCIAL SERVICES

Project

Partners

Community Links

Respite Care Home for Children with Multi Disabilities

Isle of Wight Health Authority

Isle of Wight Healthcare Trust

Private Sector Partner

Families

Support agencies and groups

Project Outline

The project makes innovative use of combined land and property resources across three public service organisation, to provide a home offering temporary and permanent accommodation for children with multi disabilities. There is currently no such permanent accommodation on the Isle of Wight. Planning permission has been obtained for the development and invitations to private investors have been made..

HIGHWAYS & TRANSPORT

Project

Partners

Community Links

Cycleways

English Partnership

SUSTRANS

Isle of Wight Tourism Partnership

Southern Water

Private Land Owners

LA Agenda 21

Local Transport Plan

Access to Countryside

Health Programme

Project Outline

The project aims to create a network of off road cycleways radiating out from the Island’s centre to all towns and villages using principally former railway tracks now upgraded. A link from Wootton to Newport the Islands capital town has now been opened, and a Newport to Sandown link is planned to be open later this year.

ENVIRONMENTAL

Project

Partners

Community Links

Island 2000

Millennium Commission

Suffolk Developments (Private Sector)

Sandown Town Council

Southern Water Ltd

Biffa Waste Management Ltd

Friends of Ventnor Botanic Gardens

Sandown Business Association

Ventnor Regeneration Forum

Project Outline

This millennium project includes the development of a visitor centre at the Ventnor Botanic Gardens and a Dinosaur attraction at Sandown. These involve capital expenditure of £4.3 million in providing Leisure & Tourism attractions at the relevant sites. The Ventnor project was opened by Botanist David Bellamy on 20 April 2000, and the Sandown project is was opened in August 2001. The Business Plans for both projects have been successfully implemented..

EDUCATION & COMMUNITY

Project

Partners

Community Links

West Wight Community Centre

Totland Parish Council

National Lottery

Freshwater Parish Council

Isle of Wight Health Authority

West Wight Swimming Pool Trust

West Wight Middle School

Social Inclusion

Formation of a new West Wight Community Trust

Project Outline

The project provides for a community centre (retaining existing swimming pools), Youth & Community Centre and Sports Hall in a remote community of The Isle of Wight. The project involves capital investment of £2.9 million, and has been successfully completed. The new community centre was officially opened by the Chairman of Totland Parish Council on 29 July 2000, and is now fully operational.

COASTAL PROTECTION AND ENVIRONMENT
Project	Partners	Community Links
Ventnor Harbour	Local fishing community, Government (DEFRA) Government Office (GOSE) re. SRB Funding	Job creation Enhanced Tourism Environment Ventnor Regeneration Forum
Project Outline This project provides for a £2.4 million Harbour at the coastal town of Ventnor. Outputs will provide sustainable jobs in an area of high unemployment both directly and through the promotion of Tourism for Ventnor.

APPENDIX C

ISLE OF WIGHT COUNCIL

CAPITAL PROJECTS APPRAISAL FORM

Project Title ______________________________________________

Initiating Directorate ___________________________ Completed by _________________

Project Reference _____________________________ Tel. No. _____________________

Notes on the completion of this form are attached

1. Brief description and location of proposal

2. Need and justification for proposal

3. Alternatives and Options

4. Timetable and Capital Cost

Attach a timetable and financial statement for each alternative or option. (Form CA1 attached)

Number of financial statements attached _______________________

5. Site

ALREADY OWNED / TO BE ACQUIRED

(Delete as necessary)

PLANNING APPROVAL REQUIRED

(Delete as necessary) YES / NO

6. Other authorities, departments or bodies involved

7. Council policies / strategic objectives met by the scheme

8. Scope of Project

9. Consequences of not undertaking project

10. Grants and assistance available towards project

11. Government policies affecting project

12. Revenue implications e.g. personnel, vehicles, equipment and associated revenue expenditure / income.

13. Priority Ranking

This project is ranked _______ out of a total of _______ projects submitted from my directorate.

14. Other Comments

Signature of Chief Officer ___________________________________________________

Completed forms should be returned to the Director of Finance and Information

The Project Evaluation Score Sheet overleaf should be left blank, to be completed by the Capital Strategy Group.

Project Evaluation Score Sheet

To be completed by the Capital Strategy Group

1.	A need and justification statement.
2.	Legal Requirements
3.	Health & Safety Requirements
4.	Revenue Costs or Income Implications
5.	Council Policy / Strategic Objectives met by the Project
6.	Link to Community Strategy and Corporate Plan
7.	Generation of External Funding from Government or Partnership Arrangements
8.	Availability of Capital Resources
9.	Budget costed with full option appraisal
10.	Special Circumstances / Compliance with Best Value Review
	Total Score for Project	100

All elements are scored on a 1 to 10 basis to make up a final score.

Signed ………………………………………….. Dated………………….

Signed…………………………………………... Dated………………….

APPENDIX D

PERFORMANCE REVIEW

REVIEW OF CAPITAL PROJECTS

Following completion of each capital project the Project Lead Officer and project team will review performance. The amount of time spent on the review should reflect the size and complexity of the piece of work. For example, a small piece of building maintenance work may simply take the Lead Officer minutes to review, particularly if everything went according to plan. However, a larger scheme may involve the project team in a detailed review session.

The review should be carried out in a constructive way with the objective of identifying lessons for the future. It will look at the pre-build stages e.g. feasibility, as well as what happened on site. The Lead Officer will be responsible for initiating the review and ensuring that any outcomes or conclusions are communicated to the appropriate people.

The review will include the following aspects::

· reviewing professional support used – were the right people involved, at the right time, in the right way?

· reviewing Consultants/Contractors performance – is there anything to follow up?

· were the project objectives met?

· did the project run to timetable?

· did it run to budget?

· has it provided value for money?

· did the project team work well together?

· what is the feedback from end users?

· what went particularly well?

· what did not go so well?

· what have we learnt for the future?

· who do we need to communicate the lessons learnt to?

The Audit Commission Report “Just Capital” identified best practice in the management of capital projects and its content provides the principal guidance to be followed by the Council in its project evaluation process.

PERFORMANCE MEASUREMENT ACTIVITY

The Council is active in benchmarking the cost of capital financing through the CIPFA Treasury Management benchmarking club. This activity helps support the Council’s corporate objective of efficient and effective use of resources and performance is reported annually to the Council.

The latest CIPFA Capital Expenditure and Treasury Management statistics, for the 2000/01 financial year, demonstrate an average interest rate paid by the Isle of Wight Council which is 0.96% less than the average for English Unitary Authorities. On the Council’s current capital loan portfolio this would involve an annual saving of over £800,000 compared with the average Council.

Successful Management of the capital programme and capital resources, has led to the Council utilising all capital resources that have been allocated to it. This is evidenced by the use of Basic Credit Approval (BCA) in CIPFA Capital Expenditure and Treasury Management statistics.

The Council has maximised and fully utilised resources available to it through its SRB programmes. All expenditure and outputs are subject to External Audit, and are monitored by Government Office. With regard to successful European Funding the Isle of Wight Council has been one of the most successful of all English Authorities.

The substantial investment in Building Projects provides for a comprehensive annual assessment of all such projects, in particular cost and time predictability measurement. This report is provided to Directors, the Executive and Resources Select Committee and forms part of the Council’s Asset Management Plan.

The Council is examining different options for the procurement of capital expenditure projects. A contract arrangement has just been entered into with a specialist contract for the delivery of the Harbour Project at Ventnor (see Appendix C for project details).

1 ORGANISATIONAL ARRANGEMENTS FOR CORPORATE ASSET MANAGEMENT

1.1 Aim and Links

The Isle of Wight Council Asset Management Plan (AMP) provides the foundation for developing the principles of corporate property management across all services. The plan supports the Council’s overarching Corporate Strategy and service plans by creating a corporate process for optimising the contribution that property assets make to deliver quality services to the community.

We believe that this plan meets all the primary requirements laid down by Government Office and the majority of the secondary ones. Targets and plans are in place to ensure that all secondary requirements are met within two years. A checklist is provided with this Asset Management Plan.

1.2 Isle of Wight Council’s Corporate Aim

The Council’s overall vision outlined in the Corporate Plan is to “Improve Island Life”. To realise this vision, seven key goals have been agreed which will inform the AMP process. The box below indicates some of the links between the Corporate Strategy and the AMP.

1.3 Agreement to AMP

At the Council’s Executive meeting held on 16 July 2002 Members agreed this revised AMP. The Council’s Best Value Review for Asset Management Planning also agreed the need for a Corporate AMP in November 2001.

1.4 Achievements

· Successfully achieved disposals targets.

· Isle of Wight Society Conservation Awards in respect of building works.

· OFSTED – LEA Property Management and Property Services “provides an excellent service” and “is an example of Best Practice”.

· Property Services is Investor in People accredited.

1.5 Asset Management links to Council Strategy

1.6 Community Wide Partners include:

> Central Service Managers

> Frontline Service Providers

> Customers and Community

> Elected Members/UNISON

> Health, Police, Courts, Probation

> Parish and Town Councils

> Island Futures Partnership

> Voluntary organisations/groups

> Private partners and companies

> Isle of Wight Tourism Partnership

> Government Departments

> Isle of Wight Economic Partnership

> Government Office

> Regional Assembly

> Isle of Wight College

> Portsmouth Dioceses

1.7 Asset Management Group (AMG)

At the centre of this top down, bottom up planning and consultation process is the Asset Management Group chaired by the Corporate Property Officer (CPO) who was appointed by the Council in October 2001. The AMG includes Asset Managers from each service plus Finance and Information (ICT).

The terms of reference for the group include:

· Strategic Management of the Council’s Assets

· Improving Asset Management

· Establishing Best Practise

· Co-ordinating Service AMP’s

· Linking strategy to operations

· Recommending change

· Officers report on the use of assets within their service

This group is linked to the Capital Strategy Group chaired by the Corporate Finance Officer or CFO. The reporting lines both at Officer and Member level are clear and set out in the following diagram:

AMG meetings are arranged on a quarterly basis and stakeholders are encouraged to challenge the use of the property they occupy and consider increased utilisation of assets examples of this are:

· Westridge Centre shared by Tourism and Wight Leisure

· Local library co-located with Niton School by May 2003. If successful similar schemes to be developed elsewhere.

See Appendix 1 for minutes of a previous AMG meeting.

1.8 Service Level Agreements

Service Level Agreements are in place with each Directorate and these are now being reviewed for the next three years. Service Departments are given an opportunity to indicate their satisfaction with the performance of Property Services and a stakeholder satisfaction questionnaire is in place. This gives stakeholders an opportunity to challenge Asset Management.

Two other senior management groups input to asset management. They are the Project Liaison Group and Capital Strategy Group, which monitors the capital strategy and asset changes. Both meet on a regular basis where CPO and stakeholders have the opportunity to discuss property related matters and opportunities for improved utilisation.

1.9 Portfolio Holder for Resources

The Council has implemented a Cabinet style Executive which includes an Elected Member, who is responsible for Resources including property assets. The Portfolio Holder for Resources is fully consulted and briefed throughout the process of all changes and presents all asset related reports to the Executive, which meets every 14 days.

1.10 Asset Management Task Group

Elected scrutiny of Asset Management is undertaken by the Resources Select Committee. The Select Committee has this year appointed a new Task Group formed with Elected Members and advised by the CPO, Asset Manager and Building Manager. The Task Group makes recommendations to the Select Committee which in turn advises the Executive. The main work of the Task Group currently includes :

· To identify opportunities for the Council to further optimise use of Council office accommodation and ICT.

· To review arrangements for the disposal of surplus property assets.

· To review the Council's storage requirements.

1.11 Corporate Property Officer (CPO)

The CPO reports to the Executive Board and Directors. The CPO role is to :

· Help prioritise local decisions on spending.

· Integrate property decision-making into the corporate planning process.

· Ensure that property decisions are consistent with service requirements.

· Identify opportunities for innovation.

· Provide a context for evaluation of capital projects.

· Provide a basis for developing public private partnerships.

· Identify assets suitable for investment or disposal.

· Identify opportunities to increase income generation or reduce expenditure.

1.12Corporate Ownership of Assets

Council property is corporately owned and stakeholders are consulted on utilisation and advised on costs of ownership. To further develop this understanding an Occupancy Agreement is included in Service Level Agreements. The agreement sets out responsibilities for both Property Services and the occupying Service.

1.13 Best Value

The findings of the Best Value Review supported the provision of the ‘in-house’ Property Services and that the service is efficient in terms of the service and its costs.

2 CONSULTATION

2.1 Consultation

A local protocol with Parish and Town Councils provides that the Executive shall consult all property transactions with local Councils or local forum prior to consideration. All major redevelopment proposals are consulted through public exhibition and analysis of public returns from questionnaires, all of which helps inform the decision-making process.

Operationally, each service area of the Council is required to produce an annual service plan. All Service Plans are submitted to the Head of Policy by the end of April 2002 and data extracted and distributed to service providers, such as Property Services, by mid May 2002. Service Plans consult service groups, providers and partners.

Corporate Management Team Executive

Oval: Asset Management Plan

Service Plan Resources Select Committee

Occupiers/ Parish Councils and

Partners Local Forums

AMG

Text Box: For example as a result of consultation between stakeholders the co-location of offices by the Coastal Management Team and a local Tourist Information Centre at Ventnor has been achieved.

2.2 Design Champions Group

This is a cross-membership Senior Officer Group, led by the Design Manager, which has been established this year with the following aims and objectives :

· To provide a corporate co-ordinated approach to the design of buildings, building conservation, urban design, landscape design, civil engineering and highway design, with regard to the built environment.

· To provide a new built environment that meets client, stakeholder and Council objectives.

· To provide a sustainable built environment using appropriate materials with low life cycle costs.

· To promote high quality design and embrace the changing construction industry.

· To promote high standards of health and safety in design and construction.

· To raise standards in design and learn from critical analysis of past projects.

· To implement a strategy to give Council representatives greater control overseeing private developers’ projects on Council land.

The Design Manager sends out questionnaires at the end of March to building users after completion of capital projects to assess the performance of Property Services and determine areas for improvement. These are independently assessed. See Appendix 2.

The Council’s contractors are also assessed internally and findings are fed back to the contractor in order to promote improved performance.

A successful group who, through a good consultation process have consistently delivered top quality projects with high levels of satisfaction. Awards in 2001 include a Conservation Award for Northwood Primary School.

2.3 Framework for Corporate Decision Making

The diagram below shows the framework for decision-making including the implementation of the Asset Management Plan

Executive

Resources Select Committee

Property/Asset Task Group

Portfolio Holder for Resources

Asset Management Group

Stakeholders Consultees Senior Managers

3 DATA MANAGEMENT (How asset data is collected, recorded, managed and used to support performance management)

3.1 Existing Data Systems

Since its formation as Unitary Council in 1995 the Council has progressed investment in resources and training for new ICT. The development of new technology tools for the Asset Management Plan has been through a modular approach building on existing systems and buying in new software as funding permits. The CPO and AMG are currently examining the purchase and development of a fully integrated ICT system. A business case of need was prepared in January 2002 identifying where existing systems do not meet needs and a range of packages are being examined to include in the future data about suitability and sufficiency. See below under 3.2 for schedule.

Property Services maintains the following Authority-wide Data modules:

· Central Asset Register – this is primary property information for each asset and includes Unique Property Reference Number (UPRN) for both land and building, name, categories, value, etc. This module is in ACCESS and is developed in house (see box). The UPR acts as the link to each data module.

UPR	DESC	USE	FLOOR	VALUE	TYPE
X0733	Arreton CE Primary School	School	380	339500	B

REVIEW	DIRECTORATE		CATEGORY RESULT	RV			DEED NO
1999		Education	Operational		24	61

· Individual Asset Plans – these sheets bring together intelligent primary and secondary data for each asset. Each Individual Asset Plan records performance, condition and a stakeholder agreed statement recording future objectives for the asset. Behind the cover sheet are floor plans, planned maintenance and valuation.

All data is verified through internal assessment to ensure accuracy and that it is up-to-date.

· Condition Surveys – this module has been purchased from IPF together with hand held data capture devices for building condition surveys. A systematic review based on a rolling programme of surveys is being undertaken which is virtually complete. A programme for reviewing 20% of assets year on year is in place.

· Capital Disposal Data – The Register records the primary data including value of all surplus assets pending disposal.

· Asset Valuations – Individual property values are calculated for land and buildings; the results are being recorded on Excel spreadsheets, with a 20% review each year as with condition surveys.

Scanning/Computer Aided Design – the Authority has invested in these systems using Autocad release 2002, with staff training ongoing. All new and existing drawings for operational assets are being computerised in support of individual asset plans. The aim is to provide a network of information available to all Internal Stakeholders by April 2003.

3.2 Fully Integrated Property Information System

As a result of the Council’s first AMP in 2001 Property Services is this year actively investigating a fully integrated Asset Information System. The planned start date is April 2003. The procurement process is well advanced. The package will provide for the integrated organisation and utilisation of existing and new data in order to assess the performance of assets and make informed property related decisions. The working timetable is as follows :

End April 2002 - Presentations by potential suppliers and site visits

End May 2002 - Internal consultation including AMG, Education, Finance and ICT

End June 2002 - Produce specification for system

End June 2002 - Tender documents to be issued

End August 2002 - Completed tenders received

End of September 2002 - Order system

December 2002 - Data input begins

End February 2003 - Trial the system

Start of April 2003 - Fully operational

The basis of the system is to provide the list of assets, site and floor plans, programme maintenance, condition survey, asset valuation, running costs, and title information. The system will be user friendly and driven by a Geographical Information System.

Whilst responsibility for the system is with the Head of Property Services the development of this system has been delegated to the CPO, Building Manager and the Property Statistics Officer, as an ICT Development Board.

Text Box: By 2004 property asset information will be available electronically on the Council’s Intranet and web site.

3.3 Other ICT

All staff have links to the in-house Intranet, Internet and e-mail facilities. The commitment accounting system enables surveyors and stakeholders to monitor both programmed and reactive maintenance expenditure for each service and assess ongoing budget commitment against actual budget. A simple skills audit was carried out in house in April 2002 and is being continually reviewed.

The new system will provide quality information, which can be shared with clients easily through Intranet facilities in order to improve service. This will enable proper monitoring of performance through data being readily available.

The amount and quality of data held for Assets is subject to on-going review in order to ensure clients are fully informed on the performance of the assets they use.

Programmed maintenance consultation with clients is based upon existing data and these processes are being developed further.

Further local performance indicators will be developed including the cost of each hour open for each asset for example libraries, swimming pools, fire stations and offices.

4 PERFORMANCE MANAGEMENT AND MONITORING

4.1 Performance Measurement – Local and National Performance Indicators

Measurement of performance is at two levels. At a high level are the national pPIs as defined by DTLR and national benchmarking exercises. Whilst locally, are the headline indicators in the BVPP and the Local Performance Indicators agreed with Service Managers and the AMG. The Council has also invited Portsmouth City Council to be its “Peer Group” for Asset Management.

Current performance measurements have been reported to Members, Directors, AMG and benchmarking partners. The performance of Property Services has been tested through a Best Value review. The Council agrees the performance management is a key tool to auditing, reviewing and improving asset utilisation which aims to:

· Ensure service plan objectives

· Promote continuous improvement

· Facilitate bench marking and comparison

4.2 National Performance Indicators

The Council has been a founder member in COPROP working with CIPFA to establish a number of national benchmarking initiatives. These exercises have included the performance of office buildings, secondary schools and primary schools.

The Council will continue its participation in these studies and looks forward to benchmarking more operational service assets. Results from this exercise are shared with stakeholders and have been found particularly helpful for energy monitoring and utilisation, eg the surplus capacity in one office has now been put to use by relocating storage.

The Council will continue to produce an annual Building Programme Review which is submitted to members and managers and shows the performance of the capital programme. This report scores individual project performance in terms of budget and estimates. These are shown as PPI 5A and 5B in Appendix 8.

In support of the countrywide drive toward sustainable energy and Agenda 21, the Council will continue to compare and measure CO2 emissions for all assets.

The Council welcomes the availability of two years’ national performance indicators. Our analysis shows: a reduction in management costs; reduced running costs and continued improvement for the capital building programme. Further the Council is hopeful that national benchmarks are to be established and maintained; this would very much help the Island.

Performance results are reported to members through the AMP that encourages a process of continuous improvement.

The Building Manager reviews targets such as the CO2 emissions and programmed maintenance annually and has set targets for improvement.

The CPO has used Benchmark data to inform target setting in offices and schools in March 2002. The AMP will extend this work to all service asset groups.

4.3 Local Performance

At a local level the PI in the BVPP measures year on year change over the total operation costs of assets as a percentage of total revenue. This puts a financial measurement to utilisation (see box below). The CPO annually reviews the Best Value Performance Plan and Council core objectives to assess property implications.

For each individual service area local performance indicators have been set that divide between quantitative measurements and qualitative measurements. Examples of quantitative measures include: cost per pupil, cost per fire tender, cost per book, cost per visitor, cost per square metre (see cross reference to data management). For qualitative measurement this is an independent survey of stakeholder/building occupiers by questionnaire aimed at service returns as to satisfaction. That is, in terms of suitability, sufficiency and on-going condition for every property. This also raises awareness of cross cutting issues such as accessibility to buildings, staff facilities and shared facilities. These indicators are considered to be very important and provide excellent data to fully assess assets. Further Indicators will be developed.

Performance Indicator (including reference number where applicable)	Targets Against Indicator(s)	Current Performance Standard
Total operating costs (TOC) of property against total revenue budget	Reduction of 0.5%, ie £36,745	6% (£7,349k)
Operational property cost per square metre for operational buildings (National pPI-4A)	Reduction 2%, ie £17.34	£17.69 per square metre
CO2 emissions – Government target to reduce CO2 by 20% below 1990 levels by 2010 (pPI-4B)	Reduction for 2002-2003 to 7,602 tonnes	CO2 emissions 7,679 tonnes
Cost of Corporate Services hourly rates	Per Technician/ Surveyor/ Principle/Manager	Internal average £25 External average £58
Cost of managing operational property per square metre (pPI-3A)	Reduction by 2% to £3.12	£3.18
Cost of managing non-operational property per square metre (pPI-3B)	Reduction by 2% to £2.61	£2.66
Percentage of authority buildings open to the public in which all public areas are suitable for and accessible to disabled persons (BVPI-156)	58% by March 2003	53%
Capital receipts target	Project target £1,500,000	£900,000
Improvement of cost and time predictability in delivering new capital building projects (National pPI-5A and 5B)	Improve cost of time predictability by 1% to 91% and 67% respectively.	90% of projects are under budget 66% of projects are completed on time

4.4 Non-Operational Return

Non-operational property is classified in the following three groups:

(a) Land pending development

(b) The disposal programme

All land pending development is made secure.

Each property within the disposal programme has a target date ie between current year and three years plus for disposal. (See 6.1 below).

Starter factory units built in partnership with Government Agencies are retained under Economic Policy for business promotion, the key performance indicator agreed is occupancy percentage.

The Council has no investment properties or retail units, has sold all its farms and the majority of starter units have been jointly funded through English Partnership.

4.5 Desk Occupation Survey

· Property Services carried out a desk occupation survey in January 2002 which showed an average office occupation of approximately 62%.

· Range between 38% and 89%.

This information was used by the Member Task Group which inspected every office and has been fed into the Office Accommodation Phase 3 Review and forms a basis of a flexible working group that will make further recommendations. All information has been shared with participating sections, who are aware of desk occupation costs.

4.6 Suitability Questionnaire

In order to assess the suitability a questionnaire will be circulated to building users in December 2002 and the results will be brought into the next AMP review.

Suitability Surveys have already been completed for all schools by the Education Department in line with DfES guidelines.

4.7 Maintenance Backlog

See 5.8 Property Maintenance for details of annual report.

5 PROGRAMME AND PLANNED DEVELOPMENTS AND IMPLEMENTATION

5.1 Programme Objectives

The implementation of the AMP will be funded through the capital programme and revenue expenditure. This section describes how the capital programme will be developed and how it will relate to the requirements of the AMP.

All capital projects funded from "corporate" resources (those which can be spent entirely at the Council's discretion) have been based upon priorities in the Council's capital strategy. This has led to the development of three year capital programme, which is rolled forward each year

The capital strategy defines how the Council will determine what capital resources it has over the next 3 year period. Capital Receipts targets are based on the availability of surplus assets from the non-operational portfolio as identified in the AMP and agreed between the Director of Finance, the CPO and the Executive.

The following are the Council's 3 year priorities for capital spending using “corporate" resources:

Schemes which deliver priorities to be identified in the Community Strategy will be a priority for corporate resources.

Example :

The reduction in CO₂ emission as a result of energy saving schemes at Somerton School.

Schemes which support the Council's Corporate Plan, namely ICT Strategy, Budget Strategy, Personnel Strategy, AMP and Capital Strategy, are a corporate capital priority.

Example :

Capital spending to generate revenue efficiencies.

Capital spending to rationalise and maximise the efficient use of operational buildings. Investment in ICT infrastructure.

Schemes that support Best Value. Capital projects, which facilitate improvements in services that help demonstrate best value, are a corporate priority. For example:

Example :

Expenditure to facilitate changes in the method of service delivery

Investment to generate revenue savings

Investment to improve service delivery

Identification of capital disposal opportunities.

5.2 Setting Capital Priorities

Each year the Council will review its Capital Strategy. Part of this review will be to assess the continued appropriateness of the Council's capital priorities to ensure that priorities remain valid and take account of new issues. For example, the outcome of: Best Value reviews; Audits and Inspections; Housing Investment Plan and Local Transport Plan.

The Capital Strategy details the methodology for the option appraisal and prioritisation of projects over the three year capital programme including a forecast of capital receipts. The diagram below illustrates the process. The Capital Strategy Group is responsible for developing and monitoring the Capital Programme throughout the year.

Officers consult Members during the formation of the Capital Programme on a service by service basis. A Capital Programme Manual is currently in draft format and will be submitted to Strategic Directors in October 2002. The intended date of implementation for the Manual is 1 January 2003. The purpose of the Manual is to modernise the current process. Both the existing programme and manual have the CFO as the lead officer.

A Lead Officer is responsible for each capital project in terms of being accountable for physical and financial progress and Members are informed on the performance and implementation of the Capital Programme.

5.3 Key Areas to Develop Change

The following table shows service changes in terms of asset management over the next three years and have been agreed with Service Heads.

SERVICE	DO WE KNOW REQUIREMENTS?	ARE WE CHALLENGING?	AMP CHANGES
Social Services
Day Centres	P	P	Further partnering with Health. Some surplus land to be sold.
Respite Care Homes	P	P	Managed buildings requiring refurbishment. Replacement facility to be planned.
Elderly Person Home	P	P	Privatised – Island Care 97 Ltd.
Neighbourhood Offices	P	P	Reviewing options, working arrangements and teams. For Social Services Service Plan see : http://wightnet2000.iow.gov.uk/ docs/polfs/socs_serviceplan/ n2002.pdf
Public Conveniences	X	P	Task Group working on consolidation.
Schools	P	P	Challenging 3 tier/2 tier provision. Changing funding of LSC. Governors considering dual community use, eg sports halls and share with libraries/ICT suites/homework space
Youth Centres	X	P	Forthcoming Best Value Review.
TIC’s	P	P	Further co-locating opportunities being explored
Fire Stations	P	P	Planning and bidding replacement stations, Ventnor. BV Review and HMI completed. Possible new fire station and HQ at Newport.
Museums	P	P	Increased use of Guildhall for new painting collection. Relocation of Museums Workshop team.
Housing	P	P	No Council owned houses – HRA closed. Current debate of Housing Associations being allowed 20% of sites at 50% of site value or should it be higher? From UDP – Urban Capacity Study to establish amount of ‘brown field’ sites. Target of 8,000 new units by 2011 - insufficient ‘brown field’ sites therefore use of ‘green field’ sites defended. Too much B&B based accommodation – more affordable housing required. For Housing Strategy see : http://www.iow.gov.uk/ living_here/housing/house_strategy/ images/HOUSING STRATEGY 2002-2006.pdf.
Leisure	P	P	BVR recommends transfer of leisure assets to a Not For Profit Trust. Offices to be consolidated. Operational costs to be reviewed.
Cemeteries	P	P	Sell surplus assets and identify use for redundant chapels.
Libraries	P	P	Replacement Library HQ. Increased sharing opportunities.

5.4 Office Administration Accommodation – Phase 3 Review

Members have also agreed the Council’s Office Accommodation Phase 3 Review which provides a 10 year plan. The objectives of the review are:

Rationalisation of space

Improved access to services supported by e-government

The improved use of County Hall as a central hub

Reduced property running and maintenance costs through rationalisation

Improved staff facilities and workstations

Reduce transport costs and congestion

The review shows the main issues and accommodation moves which will improve services and reduce costs. Utilisation is a key issue and objectives of the plan include the rationalisation of space, improved access to services supported by e-government, reduced property running and maintenance costs, improved staff facilities and workstations and to reduce transport costs and congestion. Criteria for who should be located at the “hub” and services will be assessed against it. The basis of the Review complied with Council objectives and strategy through the Corporate Plan.

The timeframe for the implementation of the accommodation review is as follows:

Text Box: November 2001 – March 2002 Investigations and preliminary discussions
End of April 2001 Submission to the Council Directors for approval
Mid April Draft to Senior Managers
3 May Property/Asset Task Group
8 May Resources Select Committee
21 May Council Executive
June to November Final plan and produce timetable for implementation
of all recommendations and costings

The Council has in place a Flexible Working Policy and has just approved the ICT Strategy including resourcing “dial-up” infrastructure for remote working. Along with other members of COPROP the Authority has joined the research project commissioned from Sheffield Hallam University considering “Hot Desking” the details of which are being considered in the Council's own flexible working agenda.

The Council are currently investigating a number of significant areas for change. Through the Council's membership of CORROP, Professor I F Price has been retained to report on Flexible Working Policies and Environments in UK Local Authorities. His findings have been examined and used where appropriate. A desk occupation survey has recently been completed and its forming the basis of a Flexible Working Group which has been set up and includes officers from ICT, Personnel, Property Services, Social Services and Customer Relations. The purpose of the Group is to improve the efficiency and delivery of services through raising awareness of flexible working.

The AMP will encourage managers to embrace new space reduction initiatives. Successful schemes that reduce running costs will enable reinvestment of resources in service delivery.

5.5 Constructionline

The Head of Property Services together with the Head of Engineering Services in consultation with the Audit Team has reviewed the Constructionline option. A report went to the Council’s Executive on 16 July 2002 recommending implementation and was approved by the Council.

5.6 Partnering

With a view to developing collaborative working with the private sector in terms of the procurement of building and engineering services the Council has brought in Dr Neil Jarret of Warwick Business School to lead on this process, which is to be rolled out corporately during 2002/2003 with pilot studies in two capital projects.

5.7 Gap Analysis

The CPO reviews each Service Plan in mid-May. From the current round of service planning gaps have been identified and options considered. An example would be relocation of Museum Workshop Team to an integrated facility.

As a result of the feedback from the Service Plans a five year Strategic Plan will be created in mid-2003 for action based on analysis between what is currently provided and what is actually required.

Stakeholder requirements are also established from Service Level Agreements, the AMG, Project Liaison Group, Select Committee, agreeing individual AMP’s with Service heads, Condition Surveys, programmed maintenance, Best Value Review, Risk Management and individual users.

Example :

Enlarged server farm as a result of Risk Management assessment. 69% of maintenance programmed against 35% three years ago.

5.8 Property Maintenance

The process for prioritising planned and reactive maintenance is through the AMP with the emphasis on programmed maintenance. This will help forge links between spending on capital and revenue. With the introduction of detailed condition surveys work areas are agreed with Service Managers according to priority grading. Whilst the primary focus is on legal requirements, prevention of closure and maintenance of value, this whole life planning will reduce “backlog” but some work may wait several years until resources allow.

Text Box: Each Building Surveyor is dedicated to a specific client and together they review requirements on an annual basis. Agreement is based on condition survey and service plan to programme priorities.

A written report is submitted to Members and Chief Officers on maintenance backlog on an annual basis that is compiled by the Building Manager.

The AMP will develop further work on suitability and sufficiency characteristics and introduce this new measure for prioritising resources. This was previously absent from the plan.

Text Box: During the recent OFSTED inspection our relationship with schools was described as ‘Best Practice’. This has been partly as a result of the co-funding efficiencies of projects through both LEA and school devolved budgets to achieve better value for money.

5.9 Energy Efficiency

The Council formally adopted a Corporate Energy and Water Conservation Policy in March 1999.The policy is designed to set achievable objectives through the application of good practice and investment in water and energy efficiency measures. Monitoring, targeting and benchmarking are being used to measure the effectiveness of the policy across the Council’s estate.

5.10 Disability Discrimination Act

The Council has set up an equalities link group whose purpose is to develop corporate policies to promote equal access to all Council services, including physical access for all members of the public and employees with disabilities. Access surveys have been conducted for all Council buildings requiring public access and a prioritised action plan developed to deliver improvements through Capital finance allocation.

Text Box: Improvements to library buildings access have recently been undertaken by the installation of fully automatic main entrance doors.

5.11 Identifying Surplus Assets

The Council’s property review is ongoing with the CPO responsible for consistently challenging Directors of the need to own operational assets. Property is identified as surplus to service requirements in several ways, including changes in operational requirements (eg closure/replacement); a wider review of accommodation affecting several properties or services; receipt of a spontaneous offer (eg from an adjoining owner); pursuit of a specific policy objective (eg economic regeneration). The CPO has requested blanket approval for disposal of a pre-agreed list of properties subject to individual confirmation from the Portfolio Holder for Resources.

All assets are now categorised as either operational or non-operational because most surplus assets come from the non-operational element of the portfolio.

Once declared surplus the responsibility for the disposal of assets passes to the CPO with political decisions being taken by the Executive. Property no longer required by all services becomes surplus non-operational property. The primary data for each surplus property is recorded on the Capital Disposal Register until sold.

A Disposals Group has been formed which meets on a quarterly basis and included members from Property Services, Legal Services and Finance. The Group is set up to monitor the disposals programme and to ensure that corporate objectives are achieved. A table of disposals has been created and each asset is allocated a timeframe for disposal, eg current year, 2-3 years, 3 years plus with an estimated capital receipt attributed individually. Capital receipts from the sale of assets are made available to support the Council’s corporate capital programme.

5.12 Disposing of Surplus Assets

The Council’s non-operational asset holdings mainly represent investment support to tourism and workspace provision. The Council has no primary retail/office or commercial investment property. Surplus property is sold as quickly as possible, unless there is a future development opportunity. Property is declared surplus by the Executive and sold through agreed Disposal Guidelines. The disposal programme is reviewed quarterly and agreed with Members annually. The current target is set at £1.5m pa and agreed as part of the Budget Strategy. The five previous annual targets have been met.

The table of disposals represents 2.1% of the total value of the Council’s assets. The Council has sold all smallholdings, has no commercial estate (shop or office) and has transferred its housing stock.

5.13 Under Use

Each of the Council’s office buildings has been assessed for utilisation. No existing building is overcrowded however buildings such as Salisbury Gardens and Northwood House, where surplus space has been identified, are prioritised for increase utilisation. Where this creates a surplus asset elsewhere, such as 34 High Street, Ventnor, it will be sold.

5.14 Action Plan

· Immediate implementation of office accommodation Phase 3 review and 10 year plan including the development of a ‘Central hub’ at County Hall.

· Implementation of fully integrated property system.

· Constructionline implementation or not.

· Develop the Flexible Working Group further.

· Asset Management Group to consider further collocation opportunities.

· Develop Partnering agreements in design and building maintenance.

· Action plan as a result of gap analysis.

· Support findings of Best Value Reviews especially externalising Wight Leisure.

Many objectives of the previous AMP have been successfully completed including:

· Stronger partnerships with voluntary groups.

· Demolition of redundant offices.

· Agreed Corporate Office Review.

· TIC – Shared use.

· New Dinosaur Museum.

· New cycleways adopted.

· Newport Harbour Plan submitted.

· Planned maintenance improvements.

APPENDIX 1

APPENDIX 2

APPENDIX 3

NATIONAL PROPERTY PERFORMANCE INDICATOR 1A

% GROSS INTERNAL FLOOR SPACE IN CONDITION CATEGORIES A-D

	GIA (m2)	% A	% B	% C	% D
Education	148,745	58	25.3	16.4	0.3
Youth Centres	4,370	50	44.4	5.5	0.1
Libraries	4,759	65	34.9	0.1	0
Leisure	16,627	55	35.6	6.2	3.2
Social Services	11,808	65	35	0	0
Environment	8,000	35	29.3	35.7	0
Corporate Offices	14,621	60	14.6	25.2	0.2
Fire Stations	4,827	60	39.7	0.3	0
TIC’s	357	50	14.5	35.5	0
	214,114

NATIONAL PROPERTY PERFORMANCE INDICATOR 1B

BACKLOG OF MAINTENANCE BY COST EXPRESSED AS (I) AND (II)

	GIA (m2)	(i) Total value (£000)	(ii) A % in priority levels
	GIA (m2)	(i) Total value (£000)	1	2	3	4
Education	148,745	£13,057.40	6.3	48.1	44.1	1.4
Youth Centres	4,370	£477.60	0.6	68.3	31.3	0.0
Libraries	4,759	£236.90	0	21.9	78.1	0.0
Leisure	16,627	£210.40	44	38.5	17.5	0.0
Social Services	11,808	£615.20	0	59.4	40.6	0.0
Environment	8,000	£500.00	35	48	11	6
Corporate Offices	14,621	£423.30	2.5	52.1	45.4	0.0
Fire Stations	4,827	£403.30	0.1	71.8	28.1	0.0
TIC’s	357	£127.00	18.5	28.5	42	11
	214,114	£16,051.10

APPENDIX 4

NATIONAL PROPERTY PERFORMANCE INDICATORS 2A, 2B AND 2C

2(A)     Industrial

            The current internal rate of return (IRR) is 13.5%.

2(B)     Retail

            None.

2(C)     Agricultural Investment Property

            None.

APPENDIX 5

NATIONAL PROPERTY PERFORMANCE INDICATORS 3A AND 3B

ANNUAL MANAGEMENT COSTS M²

Operational Property

	GIA(m²⁾
Education	148,745
Youth Centres	4,370
Libraries	4,759
Leisure	16,627
Social Services	11,808
Environment	8,000
Corporate Offices	14,621
Allotments	7,958
Fire Stations	4,827
TIC’s	357
Cemeteries	550
Total	222,622

Non-Operational Property

	GIA(m²⁾
Non-Operational Property	6,379
Total	6,379

Non-Operational Management Costs	5%	Total Management Costs
Operational Management Costs	95%	Total Management Costs

Total Management Costs	=	£770,385
Non-Operational Management Costs	=	£38,519.25
Operational Management Costs	=	£731,865.75

Non-Operational Management Costs per square metre = £6.04

Operational Management Costs per square metre = £3.29

APPENDIX 6

NATIONAL PROPERTY PERFORMANCE INDICATOR 4A

REVENUE RUNNING COST PER M²

	GIA(m2)	Value	Total Energy Costs £	Water Cost £	Maintenance £	Rates £	Total Revenue Running Costs £	Revenue Cost (m²)
Education	148,745	105,064,151	408,384	75,774.44	569,582	974,049.30	2,027,789.74	58.32
Youth Clubs	4,370	2,239,350	17,758.42	1,872.75	41,758.00	46,833.98	108,223.15	24.77
Libraries	4,759	2,534,501	42,736.12	7,517.83	26,003.00	53,593.64	129,850.59	27.29
Leisure	16,627	11,995,410	156,007.76	30,487.02	56,252.00	200,329.91	443,076.69	48.74
Social Services	11,808	5,861,000	71,852.85	16,376.81	91,847.00	69,765.85	249,842.51	42.94
Environment	8,000	11,679,669	26,974.42	35,505.21	102,615.00	102,094.53	267,189.16	20.53
Corporate Offices	14,621	8,721,000	94,175.47	7,419.31	178,220.00	187,143.24	266,958.02	31.94
Allotments	7,958	202,260	0.00	3,211.05	6,772.00	0.00	9,983.05	1.25
Fire Stations	4,827	2,654,000	28,614.26	2,753.82	44,034.00	67,469.05	142,871.13	29.60
TIC’s	357	295,000	3,419.88	451.02	8,360.00	7,629.14	19,860	55.63
Cemeteries	550	969,001	11,264.90	489.6`	11,756.00	22,634.85	46,145.36	83.90
TOTAL	222,622	152,215,342	861,188.08	216,531	1,137,199	1,731,543.49	3,711,789.4

Average Revenue Running Costs per square metre for Operational Buildings = £17.57

APPENDIX 7

NATIONAL PROPERTY PERFORMANCE INDICATOR 4B

CO₂ EMISSION IN TONNES OF CARBON DIOXIDE PER M²

	GIA (m²)	Natural Gas Consumption (kWh)	Electricity Consumption (kWh)	Oil Consumption (kWh)	CO₂ Emissions (tonnes)	CO₂/m²
Primary Schools	47,327	5,158,198	3,417,425	785,268	1,778.6	0.0376
Middle Schools	41,440	3,240,279	1,933,048	497,502	1,077.5	0.0260
High Schools	53,139	2,297,842	1,733,684	0	766.0	0.0144
Special Schools	4,743	902,640	508,977	220,352	310.1	0.0654
Other Educational Property	2,096	438,315	358,637	98,032	170.0	0.0811
Youth Centres	4,370	547,745	431,399	0	186.0	0.0426
Libraries	4,759	743,012	1,068,655	0	344.2	0.0723
Rec Grounds	0	26,264	99,626	0	23.9	0.0000
Community Halls	9,129	1,317,021	1,599,680	0	554.2	0.0607
Leisure	7,498	1,473,432	2,814,899	0	814.8	0.1087
Esplanades, Parks and Gardens	0	0	14,808	0	2.8	0.0000
Homes	3,226	897,311	490,461	0	263.7	0.0817
Social Services Offices	3,563	340,895	772,692	124,837	235.3	0.0660
Day Centres	5,019	308,282	143,836	0	85.9	0.0171
Public Conveniences	8,000	0	289,118	0	54.9	0.0069
Car Parks	0	0	17,800	0	3.4	0.0000
Coastal	0	0	1,178	0	0.2	0.0000
Countryside Management	0	3,166	17,622	0	3.9	0.0000
Waste Disposal	0	0	348,941	0	66.3	0.0000
Corporate Offices	14,621	899,630	3,392,952	0	815.6	0.0558
Allotments	7,958	0	0	0	0.0	0.0000
Fire Stations	4,827	1,138,276	437,999	17,291	302.8	0.0627
TIC’s	357	0	82,236	0	15.6	0.0438
Cemeteries	550	774,778	107,284	0	167.6	0.3047
Total	222,622	20,507,086	20,082,957	1,743,282	8,043.3	1.1475
Total (Excluding Education)	73,877	8,469,812	12,131,186	142,128	3,941	0.9230

APPENDIX 8

NATIONAL PROPERTY PERFORMANCE INDICATORS 5A AND 5B

COST PREDICTABILITY (5A)

21 projects valued at £5,155,440 were completed up to the expiry of the defects period stage during 2001/2002.

At the expiry of the defects period stage, 17 (80.95%) of the projects valued at £4,149,330 had actual outturn costs which fell within +/-5% of the estimated outturn costs. This gave an underspend of £27,630 over these 17 projects.

At the expiry of the defects period stage, 4 (19.04%) of the projects valued at £1,006,110 had actual outturn costs which fell below –5% of the estimated outturn costs. This gave an underspend of £98,980 over these 4 projects.

TIME PREDICTABILITY (5B)

21 projects were completed to the expiry of the defects period stage during 2001/2002, value £5,155,440.

At the expiry of the defects period stage, 19 (90.47%) of the projects fell within +5% of the estimated timescale for construction.

2 (9.53%) of the projects came above the +5% of estimated timescale due to exceptionally wet weather conditions and variations generated by the client, including unforeseen works.

AMP Checklist

Primary Requirements

DETR Ref.	Primary Requirement	AMP Ref.
1	Organisational arrangements for corporate asset management
1.1	Corporate Property Officer (CPO) has been identified with authority to undertake all required developments in asset management.	1.3& 1.11
1.2	Roles and responsibilities for CPO clearly set out, explicit and have been communicated to all those concerned, in property management and use, throughout the authority.	1.11
1.3	The CPO reports and is accountable to a strategic, decision-making group both at officer and member levels	1.7 & 1.10
1.4	Clear evidence has been provided that a cross-service, senior management forum has been set up which includes the CPO and representatives from major services and the finance directorate, and officers involved in the development of the Capital Strategy and the Community Plan.	1.7& 1.8
1.5	The forum has formal terms of reference, which includes the strategic management of the council’s assets.	1.7
1.6	Evidence that the forum: Progresses the corporate Asset Management Plan and ensures that it is approved by senior officers and the Council; Ensures that the AMP is informed by and supports other key corporate and service plans and objectives; Meets regularly.	1.7, 1.5, 1.2 & App 1

DETR Ref.	Primary Requirement	AMP Ref.
2	Data Management
2.1	CPO has ensured that a record is held and maintained of basic, core data on all the Council's property	3.1
2.2	The validity of this information has been tested	3.1
2.3	CPO can demonstrate a clear understanding of the data required to manage the performance of the property portfolio	3.1
2.4	Statistical information on the overall condition of the portfolio (condition categories:A-D/1-4) and the maintenance backlogs are included in the AMP.	PI 1b App 3

DETR Ref.	Primary Requirement	AMP Ref.
4	Programme and Plan Development and Implementation
4.1	The AMP outlines the council’s property related requirements and outlines the proposed programme which are intended to meet these requirements. For example: Acquisition, disposal, investment, development; Maintenance; Programmes related to surplus and/or under-performing assets; Plans enabling shared use and/or co-location.	5.3 5.4 5.11 5.12 5.13
4.2	CPO has demonstrated that there is a methodology for option appraisal and corporate prioritising between projects.	5.2
4.3	A 3 year capital programme is developed including a forecast of the planned capital receipts.	5.2
4.4	Output/outcome targets are set for programmes and plans requiring capital investment.	5.2

Secondary Requirements

DETR Ref.	Secondary Requirement	AMP Ref.
1	Organisational arrangements for corporate asset management
1.1	Evidence that the CPO / Asset Management Forum routinely challenges and reviews the use, provision and performance of the council’s assets and its related property services, in order to achieve the most effective management, planning and use of these assets and reports. Key findings and outcomes to Chief Officers and the Council. For example: The identification and rationalisation of surplus or under performing property; The promotion of shared use or co-location; The systematic review and challenge of property use, provision and management; and Identification of the property implications arising from relevant plans, audits and reviews.	1.7 5.4 & App 1
1.2	Evidence that the CPO / Asset Management Forum takes into account stakeholder satisfaction information relating to property and property services.	1.8
1.3	A cabinet member (or lead committee member) holds explicit responsibilities for the authorities property resource on behalf of the council.	1.9
1.4	The CPO is involved in the preparation of the Capital Strategy and is a member of other key corporate and business planning groups.	1.8 & 1.11
1.5	There are explicit references to the property asset implications in corporate policies and strategies such as the Best Value Performance Plan, Best Value Reviews, the Capital Strategy, the Community Plan and LPSAs	1.2 & 1.5
1.6	There is evidence of cross service use, shared use and/or co-location of property resources within the authority and with other organisations.	1.7 & 2.1

DETR Ref.	Secondary Requirement	AMP Ref.
2	Consultation
2.1	Evidence that processes and procedures are being developed obtain feedback from services users and occupiers.	2.1
2.2	Evidence that consultation findings are used to influence the continuous improvement of property and property service performance.	2.1 & 2.2

DETR Ref.	Secondary Requirement	AMP Ref.
3	Data Management
3.1	CPO has undertaken a full survey of future data requirements for the property portfolio.	3.1
3.2	CPO has identified a programme of necessary improvements.	3.1 & 3.2
3.3	CPO has commenced development of a data system for “intermediate” data (i.e. property data which requires updating from time to time such as condition, rents and user details).	3.2
3.4	CPO has implemented Unique Property Reference number (UPRN) system.	3.1
3.5	CPO has developed an approach for the centralised co-ordination of property management information and its integration with relevant council financial information.	3.2 & see Cap Strat.
3.6	CPO has undertaken a review of training needs for users of the data and set in place a system for satisfying those needs.	3.3

DETR Ref.	Secondary Requirement	AMP Ref.
4	Performance Management, Monitoring and Information
4.1	Clear evidence that the CPO is using a set of local performance measures in relation to assets that link asset use to corporate objectives.	4.3
4.2	Clear evidence that the CPO is developing a process to enable the comparison of the performance and competitiveness of property and property services with other similar organisations and other providers.	4.1, 4.2 & 4.3
4.3	Clear evidence that the development of performance measures and monitoring takes into account stakeholder consultation and user satisfaction findings.	4.1
4.4	Clear evidence that performance measurement feeds into a process of continuous improvement.	4.1
4.5	Local Performance Indicators are in place and being used for measuring and monitoring the amount of surplus property and space utilisation.	4.5
4.6	A written report is produced for Member and Chief Officers on any maintenance backlog recommending appropriate action.	4.7
4.7	The CPO is collecting information on the ‘suitability’ of the various categories of the portfolio for their current and future use.	4.6

DETR Ref.	Secondary Requirement	AMP Ref.
5	Programme and Plan Development and Implementation
5.1	The AMP demonstrates that the Council has identified the implications for property, which arise from the Council’s objectives.	5.1, 5.2, 5.3 and 5.4
5.2	The AMP demonstrates service wide understanding of corporate ownership of assets.	5.4, 1.7 and 1.12
5.3	The AMP demonstrates the Council has undertaken a thorough investigation and analysis of the gaps between future requirements and the current provision and performance of the authority’s present property assets.	5.7
5.4	The Council has identified and appraised the options for closing these gaps.	5.7
5.5	The AMP outlines the Council’s approved 3-5 year strategic action plan based on this analysis	5.7

	£ million	%
Land and Buildings	160.8	81.5
Infrastructure	28.3	14.4
Vehicles and Plant	6.5	3.3
Community Assets	1.6	.8
	197.2	100

328	Buildings worth £153,000,000 including
69	Schools providing education to 19,393 children.
6	Other Education establishments
21	Social Services establishments caring for the vulnerable
11	Youth and Community Centres with 8,839 members.
11	Libraries issuing 1.3m items per annum.
0	Housing Stock directly managed.
10	Fire Stations responding to 2,574 incidents per annum.
5	Leisure establishments including pools, halls and theatres.
7	Tourist Information Centres informing 2.5m visitors.
3	Waste and disposal energy centres processing 26,728 tonnes annually.
1	Crematorium and 24 cemeteries managing 1,500 bereavements per annum.
4	Museums for 46,000 visitors.
1	Magistrates Court for 1,027 Court sessions.
88	Public Conveniences.
17,300	Square metres of offices accommodating 870 work stations.
12	Stores.

Project Evaluation Score Sheet

To be completed by the Capital Strategy Group

Total Score for Project

1 ORGANISATIONAL ARRANGEMENTS FOR CORPORATE ASSET MANAGEMENT

1.4 Achievements

1.5 Asset Management links to Council Strategy

1.6 Community Wide Partners include:

1.7 Asset Management Group (AMG)

1.8 Service Level Agreements

1.9 Portfolio Holder for Resources

1.10 Asset Management Task Group

1.12Corporate Ownership of Assets

1.13 Best Value

2 CONSULTATION

2.3 Framework for Corporate Decision Making

3 DATA MANAGEMENT (How asset data is collected, recorded, managed and used to support performance management)

3.1 Existing Data Systems

3.2 Fully Integrated Property Information System

3.3 Other ICT

4 PERFORMANCE MANAGEMENT AND MONITORING

4.1 Performance Measurement – Local and National Performance Indicators

4.2 National Performance Indicators

4.4 Non-Operational Return

4.5 Desk Occupation Survey

4.6 Suitability Questionnaire

4.7 Maintenance Backlog

5 PROGRAMME AND PLANNED DEVELOPMENTS AND IMPLEMENTATION

5.4 Office Administration Accommodation – Phase 3 Review

5.5 Constructionline

5.6 Partnering

5.7 Gap Analysis

5.9 Energy Efficiency

5.10 Disability Discrimination Act

5.11 Identifying Surplus Assets

5.13 Under Use

5.14 Action Plan