Asset Management Update

Overview and Scrutiny Committee

14th May 2013

Item 4 Appendix B

1

AMP 2021 Asset Strategy

Starting from

Maintenance backlog £62m

Investment need to moderniseDiverse and

dispersed estate

Item 4 Appendix B

2

Delivery of the AMP 2021Item 4 Appendix B

3

Core Data and Review and ChallengeItem 4 Appendix B

4

Coed Parc Library

.Suite 4, Dragon House

Examples of assets: Released, Retained and Remodelled delivering:

Oldcastle Offices

Sunnyside House

Since 2009 64 assets

have been released

Accessibility improvements to over 58 facilities

Release of assets not fit for purpose

DeliveringFit for purpose assets

Releasing AssetsRemodelling Assets

Item 4 Appendix B

5

Working with services: Wellbeing

Adult Social Care

Release : former day-care centre site

Healthy Living

•HALO assets•8 sports/life centres recently leased to Halo Leisure Services Ltd •The partnership is based on an outcomes based delivery model which is designed to facilitate future investment in the facilities. •This is supplemented by individual lease agreements for each property. The main lease terms include:•Term - 15 years with effect from 1/4/12•Rent - peppercorn•Repair – Halo to undertake all repairs

Remodel and Retain: Bryn Y Cae residential re-ablement

Item 4 Appendix B

6

Working with services: Schools ModernisationRemodelNew Coleg Cymunedol Y Dderwen

• Sharing new space• dedicated community areas • sports provision, which can be used

outside the school dayFormer Ogmore comprehensive

ReleaseLand at YBCSurplus land at Coleg Cymunedol Y Dderwen

Retain and Maintainfacilities

Delivering £11m in capital receipts…Property services are now working with the Children’s directorate to deliver a programme of disposals amounting to over £11m to help support the Council’s match funding requirement for the Welsh Government’s 21st Century Schools Programme.

Item 4 Appendix B

7

£10,

600

p.a.

Unit 3, The Highwayman

Office Accommodation phase 1~ Project Summary

2009 Direction of Travel 2012

Suite 2 Tremains Business Park

£2,5

92 p

.a.

Suite 4, Dragon House

£11,000 p.a.

Unit 5 The Highwayman

£5,5

00 p

.a.

Unit 4, The Highwayman

£106,500 p.a.

£13,

500

p.a.

Brackla House

£4,5

00 p

.a.

87 Park Street

£43,

945

p.a

Item 4 Appendix B

8

Office Accommodation phase 2 and Integrated Hubs

Phase 2: Retaining and Maintaining our core offices,To have sustainable, fit for purpose office accommodation with IYS completed in all of our core offices & investment decisions leading to a more efficient estate

Management and space efficiencies Financial efficiencies and savings Reduced CO2 emissions Corporate facilities management. Successful integrated working in core

buildings and network hubs

Item 4 Appendix B

9

Sharing the accommodation cost

Sharing accommodation

Integrated Hubs: Providing integrated social care,

– Innovation Centre

– Sunnyside

– Pyle Life Centre

– Bryncethin Depot offices

– Coleg Cymunedol Y Dderwen

Depots:– Joint Fleet Services: Bryncethin

Developing protocols based around:•Service charge payment

• running costs• utility costs• maintenance costs

•Capital charge• cost of area occupied

Item 4 Appendix B

10

Depots – feasibility work

New joint fleet services Depot Bryncethin

Review and relocation of building maintenance and highway depot facilities from Waterton to Bryncethin

Parc Afon Ewenni (Waterton Master Plan)

Item 4 Appendix B

11

Non-operational property strategyPrimary Use No of

AssetsReason Held Planned

Review/ Strategy

3rd party Community Use 29 Community Support

Community use agreement completed

Allotments 25 Community Support

Allotment Strategy

CompletedGarage bases 14 Historic / Community SupportGarage compounds 2 Community Support

Commercial (inc.5 investment) 13Economic / community support / historic / Investment

Ongoing Review

Enterprise Centres 3 Community Support / EconomicIndustrial (starter units) 76 Community Support / Economic

Industrial (units & plots) (inc 9 Investment) 116

Economic / Community support/ Investment

Markets 2 Community Support Jul-2013

Surplus land 11 No longer required for service provision

Surplus building 2 No longer required for service provisionResidential Ground Leases 21 HistoricReclamation Schemes 13 Historic / Community Support

Vacant land 85 Historic

Vacant building 6 Historic / Pending redevelopment

Other leases 2 Historic420

May-2013

Disposal Strategy

Completed

Identified actions in geographical

reviews Vacant buildings

plans Unallocated land

project

Jun-2013

Item 4 Appendix B

12

Overall measures

Total Assets released

Total Rental Saved

Capital Receipts Generated

Maintenance Backlog associated with released assets

CO2 Emissions reduction from released assets

Carbon tax savings

64 £403,487 £2,566,000

£8,073,295 4,269.61 £51,235

Assets released outcomes 2009/12

Rating Savings  

Total savings over 5 years from 2005 to 10 RV reductions

£1,138,128

Total savings from RV (2010 to 15) reductions to date

£387,541

RENTAL INCOME 2009-20122009-2010 £1,846,795.272010-2011 £1,917,452.842011-2012 £1,771,649.59

TOTAL £4,615,066.69

Item 4 Appendix B

13

Future Focuses

Future focuses for Property Services, as set out in the Directorate business plan include: Council’s Improvement Priority

Directorate Priority

Developing the local economy Making best use of our resources

Parc Afon Ewenni(TPC)

Making best use of our resources

Improving Your Space(TPC)

Making best use of our resources

Increasing income and Capital receipts(TPC)

Item 4 Appendix B

14

Ongoing challenges

Capital investment is often required to deliver longer term property savings and efficiencies.

The current economic climate and market changes will impact on the delivery of income and capital receipts.

The reduction in both the minor capital works budget and capital programme will have a negative impact on our efforts to reduce the maintenance back log.

Item 4 Appendix B

15