Purpose:
for Decision
Committee : CABINET
Date :
Title : ISLE OF WIGHT STRATEGIC
ASSET MANAGEMENT PLAN 2006
REPORT OF THE CABINET MEMBER FOR RESOURCES AND TOWN/PARISH COUNCIL EMPOWERMENT
Implementation Date:
PURPOSE
1.
To approve
the 2006 Strategic Asset Management Plan (SAMP) and to note the future addition
of the Capital Strategy Section following the approval of capital budgets, and
the Delivery and Investment Plan.
2.
Local
Authorities have been encouraged to update or re-write their Asset Management
Plans to make them into more strategic documents which properly take account of
service delivery plans and how property assets can be best used to facilitate
change.
3.
The
need for updated Asset Management Plans/Strategies is also recognised under the
CPA regime, with particular reference to the use of resources. Authorities with updated Strategic Asset
Management Plans generally score more highly than those which have not yet
updated their plans.
4.
The
Isle of Wight Council started work to completely re-write its Asset Management
Plan in late 2005, as the previous plan was time expired. The new plan follows a completely different
format and provides a direction of travel for the rationalisation of property
assets.
5.
The
preparation of this plan has been undertaken by Performent Consulting (one of
the leading property consultancies advising on Asset Management and Asset
Strategy, whose clients include the RICS, COPROP, CLAW, and many local
authorities and Government departments) and included considerable background
research of Council documents, interviews with directors, senior officers and
senior members, workshops and the drafting and re-drafting of the document
attached as Appendix 1 of this report.
6.
The
rationalisation of property holdings and disposal of assets provides a clear
opportunity to assemble a capital receipts programme to support the priorities
of the capital investment programme which will include improvements to retained
properties where this will deliver a customer focused and cost effective
service.
7.
The
need for the SAMP to work in conjunction with the Capital Strategy is
recognised under CPA and again high level scores are only achieved where the
documents work in this way. For this
reason it is proposed to incorporate a further section within this plan under
the heading of Capital Strategy. This
will then become the Isle of Wight Strategic Asset Management Plan and Capital
Strategy.
8.
The Capital
Strategy section has not yet been written and this will not be commenced until
November following the Capital Budget Bids.
ANNUAL REVIEWS/UPDATES
9.
Unlike the previous Asset Management Plan which was a
three year document the proposed SAMP is to be reviewed and updated on an
annual basis. This is recommended
because service requirements together with many other property issues tend to
be fluid, whereas property itself is relatively inflexible. Therefore strategic planning is essential to
keep on top of any proposed changes and the only way that this can be properly
implemented is by an ongoing review process.
10.
It is also an expectation of CPA that SAMP’s are
updated regularly.
11.
In addition to the review of the main document there
is also background information not yet captured that is required to fully
inform the decision making process. This
includes suitability and sufficiency surveys and the collection of electronic
drawings providing accurate plans for all Council properties.
DELIVERY AND INVESTMENT
PLAN
12. Reference is made to the preparation of a Delivery and Investment Plan to drive through the actions necessary to deliver the SAMP. This will comprise a relatively short document detailing financial information including a rolling expenditure and funding plan for assets, and this will assist in informing what properties are retained, disposed of, invested in and such like. A delivery plan which focuses on quick wins, the development of hubs and the rationalisation of property is currently being drafted.
13. This plan will need to be developed to provide a three year rolling programme and, as it requires capital input will be finalised following the Capital Bids process. Three main objectives will drive the delivery:
(i) The rationalisation of operational property to provide a fit for purpose asset base which supports customer focused cost effective service delivery.
(ii) The delivery of revenue savings to reduce the burden of the property estate on the taxpayer and free up revenue for investment in services.
(iii) The delivery of a capital receipts programme to invest in the Council’s agreed priorities.
STRATEGIC
CONTEXT
14. One of the five corporate objectives of the Isle of Wight Council is to be a high performing cost effective Council. One of the aims within this is to ensure that all services are cost effective and offer maximum value for money and the SAMP ties directly into this aim.
CONSULTATION
15. Internal stakeholders, including Members and senior officers, have been consulted in the preparation of the SAMP. Other external stakeholders are to be consulted over the course of the next 12 months, with particular reference to the possibility of an Island-wide Asset Strategy including the property assets of those stakeholders.
FINANCIAL/BUDGET
IMPLICATIONS
16. The intention of the SAMP is to rationalise the Council’s property portfolio making the properties retained suitable (fit for purpose) and in good condition with the minimum backlog of repairs.
17. Following consolidation/co-location/rationalisation those properties that are not suitable and are in poor condition will be declared surplus and disposed of. This will ultimately result in revenue savings and capital receipts.
LEGAL
IMPLICATIONS
18. Whilst local authorities have been actively encouraged to produce Asset Management Plans (DETR, ODPM, and the Single Capital Pot), and more recently to produce SAMP’s this is not a statutory requirement.
19. However, SAMP’s are vital under the CPA regime, particularly the Use of Resources section. An authority without a SAMP will, no matter how highly everything else is scored, only achieve a Level 1.
20. The Council has the power to sell land under Section 123 of the Local Government Act 1973 if it is surplus to requirements and best consideration has been achieved. Section 12 of the Local Government Act 2003 allows the Local Authority to invest in property.
OPTIONS
21.
i) Approve
the Strategic Asset Management Plan, as per Appendix 1, subject to the future
addition of the Capital Strategy section, and the Delivery and Investment Plan.
ii) Delay approval of the SAMP until the Capital Strategy and the Delivery and Investment Plan have been produced.
iii) Delay approval of the SAMP until all background data has been collected and processed, and the Capital Strategy and the Delivery and Investment Plan have been produced.
EVALUATION/RISK
MANAGEMENT
22. A considerable amount of work has gone into the preparation of the draft SAMP and, although all of the data has yet to be captured, there is sufficient information to make some high level decisions and these decisions will become more apparent once the Capital Strategy section has been completed together with the Delivery and Investment Plan.
23. The Capital Strategy and Delivery and Investment Plan are likely to take, given the current demands on capacity, until the end of 2006/start of 2007 to produce but, as there is sufficient information to make some high level decisions, it is not recommended that SAMP approval is delayed.
24. Once the Capital Strategy has been written, and the Delivery and Investment Plan refined further, they will be taken as a future report to Cabinet, in early 2007, for approval.
25. Without the SAMP in place there is a major risk of:
· Failure to deliver the Capital Receipts Programme
· Failure to rationalise the Council’s accommodation portfolio
· Failure to provide fit for purpose service accommodation
· Failure to enhance cost effective service delivery
· Failure to deliver revenue savings
· Failure to manage Isle of Wight Council land and building assets effectively
· Failure to deliver the Council’s Asset Strategy
· Increase in the backlog of repairs to assets
26. Having a current and updated SAMP is a requirement of CPA use of resources, irrespective of our own use of resources requirements. The plan should therefore be adopted in order to inform this process. Doing nothing is therefore not an option.
RECOMMENDATIONS
27.
It is recommended that the
(i) adopt the Strategic Asset Management Plan, and
(ii) receive a report at its meeting in March 2007 proposing a Capital Strategy, Delivery and Investment Plan.
APPENDICES
Appendix 1 – Strategic Asset Management Plan 2006
BACKGROUND PAPERS
Contact Point : Barry Cooke, Corporate Property Manager
tel: 823266, email: [email protected]
|
DEREK ROWELL Strategic Director of Economic Development and Regeneration |
COUNCILLOR JILLY WOOD |