Chesterfield Borough Council Corporate Asset Management Plan · uncertain economic times and it is...

DRAFT CBC Corporate Asset Management Plan

Chesterfield Borough Council

Corporate AssetManagement Plan2011 - 2016


Chesterfield Borough Council

Draft5/09/2011

ContentsForeword ........................................................................................................................................................5

Executive Summary ..........................................................................................................................9

Introduction ............................................................................................................................................ 13

Where we are now .......................................................................................................................... 17

Where we need to be ....................................................................................................................27

How we plan to get there.........................................................................................................31

Conclusion .................................................................................................................................................45

Appendix .....................................................................................................................................................47


Foreword

5

ForewardQuality not quantity

Chesterfield Borough Council is a significant landowner. Our property assets play a major part in delivering the Council’s wide-ranging services and a key role in delivering economic regeneration. Property ownership and running costs are a substantial area of expenditure from our annual revenue budget and the coming financial years will be challenging in terms of balancing budgets against uncertain economic times and it is essential that our property assets are managed effectively. We also need to ensure environmental sustainability is at the heart of asset management.

Our corporate asset management plan sets out what property assets we have, what we do with them and more importantly what we want them to do for Chesterfield. The plan contains a suite of strategies and an action plan to ensure that we get our properties to where we want them to be. The aim of the corporate asset management plan is to provide the direction we need to enable us to manage our assets effectively and sustainably, to help deliver better outcomes for our citizens, to generate revenue, capital growth and capital receipts, to achieve cost savings, disposing of, or improving, underperforming assets and modernising assets that are expensive to maintain. Whilst it is acknowledged that the action plan is challenging, the Borough Council, as always, is ready to meet the challenge and we will work long and hard on our citizen’s behalf to ensure that our property assets deliver.

DRAFT CBC Corporate Asset Management Plan 7

Leader of the Council, Councillor John Burrows

Huw Bowen, Chief Executive


Executive Summary

9

Current Assets

Table 1 below, shows the asset value of our land and property portfolio, including the Housing Revenue Account, the cost to run and the income it generates.

Table 1: Land and Property Portfolio

Property Type Asset value Total Costs (p.a.)

Net Income (p.a.)

Operational Property £37,557,977 £2,440,380 £34,910

Non-Operational Property £78,708,354 £829,740 £6,514,344

Housing Revenue Account £237,261,000 N/A N/A

Total £353,527,331 £3,270,120 £6,549,254

Executive SummaryContext – Where we are now

For its size Chesterfield Borough Council owns substantial property assets, putting us in a fortunate position to use them to counter on-going economic uncertainty and reduced public funding. We have ambitious property related corporate objectives that embody a desire to be sustainable, to provide services in the right locations, to have an attractive town centre, to put resources into local communities and to be a high performing Council. These commendable aims require us to have regard to the national drive for the public sector to save money at the same time as improving the delivery of services by using property assets more effectively, sustainably and in collaboration with other public and community organisations.


Where we need to be

• With energy costs being expected to rise by 10% per year, repairs by 5% and due to the effects of inflation (Central Government target of 2% per year), we must realise cost savings and achieve an efficient, effective and sustainable property estate

• We need to use our property assets to support the Council’s capital programme and key corporate projects including Business Transformation, Total Place agenda, delivery of key sustainable projects and our regeneration projects

• We need to consider the disposal of surplus assets to obtain capital receipts to fund our capital programme

• We need to use our assets more effectively as a means to achieve the priorities of our local communities

• We need to work with our public sector partners to achieve a more joined up way of delivering services

• We need to ensure our focus is on quality of assets

How we plan to get there – corporate asset management approach

Faced with the need to save money and improve services using our property assets efficiently, sustainably and in collaboration with other public organisations, this plan adopts a new approach to improve the effectiveness of the estate by:

• Establishing a corporate property strategy delivered through a central Asset Management Group as the property decision making body

• Developing a comprehensive asset data record system to enable the performance of the estate to be analysed and inform property related decisions

• Aligning property with service delivery requirements

• The introduction of practical measures to improve space utilisation and so reduce the amount of accommodation required

• Introducing techniques to incentivise efficient use of space e.g. an internal accommodation charge

• Modernising the way our people work by the introduction of agile and flexible methods

• Sharing accommodation and services where appropriate with other public sector and third sector organisations

• Selling under-performing or surplus property assets

• Transferring property to community organisations by matching available assets with community need and supporting initiatives through funding, mentoring and devolved budgets.

• Delivering and investing in measures to reduce energy consumption, carbon emissions and related operational costs

• Reducing reactive and unplanned maintenance as part of a new building maintenance strategy

• Maximising the performance of our investment assets.

The size of the prize

The Asset Management Plan provides the strategic direction to enable cost savings and generate substantial capital receipts.

• With a modest 10% reduction in the size of the Operational Portfolio we could achieve savings in the order of £240,000 per annum

• By taking a more radical approach, following best practice examples of low cost, flexible working practices, we could achieve a 20-30% reduction in the space occupied, realising cost savings of £480,000-£730,000 per annum.

• The planned review of the Council’s extensive non-operational assets is also likely to identify under-performing assets, which can be sold or improved. A conservative 10% reduction may realise a capital receipt in the region of £7 million. By investing some of these receipts we will look to offset the income lost.

DRAFT CBC Corporate Asset Management Plan12


Introduction

13

The Council is responsible for providing a wide range of local services in Chesterfield including housing, planning, economic development, estate management, public health, refuse collection and leisure facilities including parks and sports centres.

Our asset base, which assists in service delivery, is substantial in comparison to other similar sized local authorities. The portfolio, excluding Housing Revenue Account, is valued at over £116 million. It has been derived principally from investment in economic development and job creation and by maximising the availability of European and Regional Development funds. Chesterfield has been to date fortunate in being able to match fund most of this development out of capital receipts derived from sales of land for industrial, residential and retail purposes. With currently low returns on our investments and restrictions on the ability to raise funds through local taxation, the property investment portfolio, which produces over £6.5 million annually, will be critical to the Council’s financial situation in the coming years as the government imposes further austerity measures to correct the imbalance in public sector finances.

We therefore need to examine more critically, the performance of these assets, as the opportunities for capital receipts now rest with income-producing assets and not just vacant or low income-producing sites. Through a corporate review and given the strategic direction provided by this plan our property portfolio will continue to play a key role

in enabling us to balance our budgets over the coming challenging years, whilst still maintaining or improving the delivery of public services – achieving ‘More with Less’.

This Council’s aim for our property assets is:

As a strategic document, the Asset Management Plan will be reviewed annually to take account of systemic change such as movement in Council policy, Government policy or economic circumstances.

The Asset Management Plan is an essential corporate document, which aligns the Council’s strategic approach to property asset management to aid delivery of the Council’s Corporate Plan and has direct links to budgets, service delivery, regeneration, the local economy, leisure facilities, housing and sustainability, to name but a few.

Introduction

Chesterfield Borough Council is one of eight district councils in the County of Derbyshire. Chesterfield is Derbyshire’s second largest town with a population of approximately 100,000 and serves as a regional centre for North Eastern Derbyshire. The Council is one of the area’s largest employers and this together with the services we provide makes the Council especially important to the local economy and the every day lives of the community.


‘To acquire, manage and dispose of land and property holdings in such a way as to facilitate the delivery of services and execution of policies in accordance with our Vision for the Borough. This will generally be reflected in the minimising of costs and maximising of operational benefits and investment returns.’


Where we are now

17

Where we are now a. Context

This section looks at the national agenda and how it has evolved to shape the direction for improvements in the delivery of public services and how assets are best employed in achieving this.

National Objective

Successive Governments have been committed to the drive to improve and modernise the way public assets are used in the delivery of services. The following selection gives examples of this direction.

‘Leaner and Greener’, Westminster Sustainable Business Forum 2011: Key recommendations include a 20-30% occupancy reduction, flexible property solutions, centralised control of estate and joint management with partners, incentivise efficient use of space and carbon reduction and alignment of service strategy with asset requirements.

Total Place, HM Treasury 2010: Key recommendations include a ‘whole area’ approach with public services working together to reduce waste and duplication.

Room for Improvement, Audit Commission 2009: The recommendations are to:

• improve knowledge of estate by collecting data on size, use, occupancy, condition and running costs,

• AMP’s to include proposals for cost benefit analysis, sharing information with other local bodies and asset mapping of public sector properties,

• review and reduce property holdings where possible,

• identify and dispose of surplus or under-utilised property,

• reconfigure services and administration so that they occupy less space,

• consider tenure other than ownership, for example lease, rent or leaseback where they give demonstrably better value.

The key message from Government is for the public sector to work collectively to improve the efficiency and effectiveness of their land and buildings in the delivery of public services. We are already part of a forum working with our neighbouring local authorities under the banner ‘Space Derbyshire’ to drive forward this collaborative approach.


Corporate Objective

The Council’s objectives are contained in our Corporate Plan for 2011 to 2014 with the vision ‘Inspiring pride; aspiring to be the best. Working for a safer, cleaner, greener, thriving community’.

The Corporate Plan reflects the aims and objectives of the Corporate Asset Management Plan by aiming for a sustainable future, targeting resources where they are required and to be a high performing Council.


Aims Outcomes Key Projects CAMP Strategies

CAMP ActionPlan Ref

A Sustainable Community

The Borough’s carbon footprint will be reduced

Our environment will be cleaner and greener

Our built heritage assets will be better protected and enhanced

Develop and deliver at least 2 new renewable energy schemes on Council buildings

Environmental Sustainability

Asset Rationalisation

Operational Portfolio Strategy

Building Maintenance Strategy

6

1

2

9

A Cohesive Community with equality of access to services

The Council will provide services which are accessible to all of our customers through a range of channels



Co-location and Shared Resources

1

2

4

A Community with Decent Homes for All

Develop regeneration options for Barrow Hill housing estate

Asset Rationalisation 1

A Working and Learning Community

The local economy will be vibrant

The town centres will be attractive

Employment opportunities will have increased

The life chances for young people will have improved

Chesterfield will have a national profile as a visitor and business destination

Support the start of the first phase of Chesterfield Waterside scheme

Deliver Market Hall redevelopment project, for completion by December 2012

Secure a development partner and planning permission for the Northern Gateway scheme

Non-operational Estate Strategy


7

4

A Safe, Healthy and Active Community

Building Maintenance Strategy 9

High Performing Council

The Council will match resources with priorities and the priorities of our local communities

The Council will strive to improve services to residents

The Council will have a sustainable medium term financial position

Further develop the shared services agenda

Develop the Business Transformation strategy for 2011/12 through to 2013/14



Disposal Strategy


2

4

10

9

Table 2: Chesterfield Borough Council - Corporate Plan 2011-2014

Capital Programme

The Council has an ambitious capital programme aimed at aiding delivery of our corporate objectives. The current c£15m capital programme includes:

• Destination Sheffield

• IT Strategy

• Vehicles and Plant

• Home Repairs Assistance

• Disabled Facilities Grant

• Private Sector Decent Homes

• Improvement to Leisure Facilities, including Eastwood Park and Queens Park Leisure Centre

• Market Hall refurbishment

• Major Property Repairs

Strategic Asset Management Objective

Kier was appointed on 1st October 2010 as the Council’s strategic partner to bring additional expertise, resources and management infrastructure to assist in asset and facilities management. These services are directly linked to drive forward the strategic direction of this Plan, as highlighted in Table 3.


KPI Ref Detail CAMP Strategy

AM01 Strategic Property Management:Comply with Asset Management Plan and review annually by agreed deadline

All strategies

AM02 Strategic Property Management:Review the assets in the Land and Property Portfolio on a 5 year rolling programme and identify any underperforming properties and make recommendations for all underperforming assets identified


AM03 Disposal Programme:Develop a 3 year disposal programme, through the operational board, to support the council’s capital programme


Disposal Strategy

AM04 Investment Property Management:Maintain occupancy levels of the combined commercial, retail and industrial portfolio at 87% over the course of the year


Non-operational Estate Strategy

AM05 Valuation – Right to BuyRTB Valuation Reports and Plans to CBC Legal Services within 28 days of receipt by Service Provider

AM06 Valuation – Council Portfolio Provide asset valuations in compliance with IFRS + CIPFA + RICS standards and guidelines in accordance with annual timetable to be issued by CBC Head of Finance in August each year.

AM07 New Corporate PI to secure 95% occupancy of town centre retail shops by March 2013 CBC shops target to be reported as contributory data towards this Council wide corporate objective. Service Provider is not responsible for overall output

Non-operational Estate Rationalisation

FM 13 To develop and agree a 5 yearly programme of condition surveys updated in advance of each financial year


Table 3: Current Key Performance Indicators for the Management of the Land and Property Portfolio

b. Current Assets

This section draws together current information on the Council’s Land and Property Portfolio, with a view to understanding how the estate is made up and the related current costs.

Operational Portfolio

Historically the Council has for many years operated a de-centralised property management approach to our operational portfolio. This was based on the principle that services needed property assets in order to deliver their services. As such property asset ownership currently sits within each service. Table 4 identifies the office accommodation, depots and community assets, which are held as part of the Council’s operational property portfolio and the reasons for holding these assets.


No. Core function Community Benefit

Health and well-being Historic

6 Offices

2 Depots

1 Tourist Information Centre

2 Leisure Centres

4 Cemeteries

1 Crematorium

4 Closed churchyards

3 Historic buildings

5 Monuments

2 Museums

Parks and open spaces

11 Public conveniences

16 Sports and rec facilities and playing fields

75 Play Areas and Laps

11 Community Centres and Rooms

13 Housing Meeting Rooms

2 Public halls/assembly rooms

8 Allotment sites

5 Multi Use Games Areas

8 Woodland sites not within parks

21 Changing rooms/Pavilions

2 Pavilions/cafes in parks

2 Theatres

1 Pond

2 Serviced Tenanted Houses

Table 4: Summary of Operational Portfolio

Table 5 identifies, where known, current asset values, running costs (rent, business rate, property management, insurance, energy costs, waste, cleaning and landscaping) and the allocated repairs and maintenance budget.


Name Property Type Staff Number Asset Value Running Costs

Town Hall HQ Office 248 £2,149,320 £304,262

Revenues Hall Office 120 £858,665 £94,915

87 New Square1 Office 8.5 £542,750 £33,114

Stonegravels Depot, Sheffield Road Depot 60 £1,155,668 £90,993

Boythorpe Depot, Stores/ East Lodge Offices Office/Store/ Depot 11.2 £289,000 £33,115

Cleansing Depot Depot N/A £270,000

Eastwood Park Stores Store N/A

Staveley Cemetery Stores Store N/A £21,250

Tapton Park, Golf Course Store N/A £14,762

North Lodge Offices2 Office 3 £410,735

Staveley Area Office Office 7 £157,605 £19,839

Tourist Information Centre Office 7.2 £689,171 £39,060

Queens Park Leisure Centre Community 41.9 £3,310,728 £529,273

Staveley Healthy Living Centre Community 26.3 £7,192,108 £359,545

Cemeteries Community 15 - £29,030

Crematorium Community N/A £1,215,730

Closed churchyards Community N/A - £15,450

Historic buildings Community N/A £707,459

Monuments Community N/A -

Museums Community 4 £1,674,114 £46,007

Parks and open spaces Community N/A £4,236,684 £138,540

Public conveniences Community N/A £251,078 £40,430

Sport/Rec facilities, playing fields Community N/A £2,030,272

Play Areas and Laps Community N/A £242,513

Community Centres and Rooms Community N/A £548,351 £27,090

Housing Meeting Rooms Community N/A £822,167

Public halls/assembly rooms Community N/A £346,128 £21,903

Allotment sites Community N/A - £2,900

Multi Use Games Areas Community N/A £106,200

Woodland sites not within parks Community N/A -

Changing rooms/Pavilions Community N/A £733,990

Pavilions/cafes in parks Community N/A £1,451,335

Theatres Community 18.7 £5,642,878 £186,294

Pond Community N/A £87,316

Serviced Tenanted Houses Housing N/A £400,000

Total £37,557,977 £2,440,380

Table 5: Operational Portfolio

1 - 87 New Square Costs can be offset against a rental income of £17,910.

2 - North Lodge Costs can be off set against rental income of £17,000

Non-Operational Investment Portfolio

The Council holds an extensive investment portfolio comprising of commercial, retail, industrial properties and car parks, together with a variety of miscellaneous properties, as identified in Table 6.


No. Assets Investment Income

Economic Regeneration Development Historic Community

Benefit

223 Factories and workshops

45 Non-town centre offices - post 1990

74 Clock Tower starter workshops

75 Innovation Centre Suites

26 Town Centre office suites

13 Restaurants/cafes/bars

39 Town Centre shops

41 Pavements Centre shops

9 Pavements Centre office suites

70 Market Hall units

11 Market Hall offices

24 Suburban shops

4 Non-town centre offices - pre 1990

2 Open markets

2 Multi storey car parks

19 Open car parks (pay & display)

3 Private car parks

1 Coach Station & interchange

1 Golf course & clubhouse

Miscellaneous land

1 Farms

Agricultural land

Vicar Lane ground lease

Industrial Development Land

Table 6: Summary of Non-operational Portfolio

The portfolio has an asset value in excess of £78 million. This is identified in Table 7, which shows the various categories of assets, their value, income, costs and performance according to established methodologies. The investment income exceeds that of many similar sized authorities with a total annual potential rent roll of over £6.5 million. This large investment portfolio puts us in the enviable position being able to use our assets to support the capital programme, investment in the core estate and to mitigate the effects of future financial pressures brought about by economic issues and Government policy.


Table 7: Non Operational Investment Property

Description Tenure Number Lettable Area (m2) Asset Value

Repairs and Maintenance Budget (p.a.)

Gross Rental Income

Commercial (offices/shops) F/H 230 26,787 £23,559,592 £165,640 £1,935,353

Industrial(Factories/Workshops)

F/H 236 35,600 £11,873,300 £140,000 £1,387,954

Industrial (High Tech/ hybrids) F/H 75 6,275 £10,739,933 £103,080 £285,600

Clock Tower (Small Workshops) L/H 74 4,616 De minimus £242,200 £9,000

Commercial (Housing Shops) F/H 26 3,565 £1,077,500 £24,000 £121,560

FreeholdReversionaryInterests

F/H 2 £6,588,077 £410,500

Car Parks F/H 24 £14,893,952 £154,820 £1,357,920

Sites held fordevelopment F/H £8,800,000 N/A N/A

Farmland F/H £1,176,000 N/A £20,240

Miscellaneous e.g. allotments, substations,access licences

£67,635

TOTAL £78,708,354 £829,740 £6,514,344

The current investment strategy is to maximise income and/or to support other corporate objectives such as a thriving economy. Measurement of performance is currently based on occupancy levels. Generally occupancy is maintained at a rate in the high 80%’s or over 90%. In the current poor economic climate the level of occupancy is maintained at this high level by using mechanisms such as reduced front-end rents and tenants’ break options.

This existing policy leaves the Council exposed to the risk of higher levels of voids in the event of business failures and a resultant increase in management time and costs, and a reduction in rental income.

This method of measurement can be affected by factors over which the Council has limited control and we recommend that going forward an alternative method is introduced.

Housing Estate

Social Housing Assets are outside the scope of this plan. The Council’s Housing Service is undertaking a review of the land and buildings currently held in this portfolio. This land management review will lead to a reshaping of the ‘Housing Estate’ in order to address historic anomalies and current strategic requirements.

c. Regeneration

Our role in bringing forward regeneration projects often requires us to acquire, and/or hold property for that particular purpose. We have extensive landholdings held for future regeneration projects and housing development and have the capacity to use compulsory purchase powers where land ownership is a barrier.

This Council’s overall objective in this regard is to secure the long-term regeneration of the Borough and our communities by focusing services on:

• Attracting investment and visitors

• Delivering well designed sustainable development

• Encouraging growth in businesses and job opportunities

• Improving the offer and attractiveness of our town centre

• Enriching the life of our community through arts and culture

Key regeneration projects include:

Derby Road (former Bryan Donkin site): A gateway site on the A61 corridor at the entrance to Chesterfield from the M1. It has planning permission for a 250,000 sq.ft. business park, the first phase of which has been built.

Chesterfield Waterside: A major regeneration opportunity, which will transform the economy and create a new sustainable community. The scheme has outline planning consent for housing, office space, shops, restaurants and leisure facilities around a revitalised canal basin.

Town Centre Masterplan (October 2009): This report was written and designed by URBED (Urbanism, Environment and Design) with DTZ, ARUP, Urban Space Management and Sauce Architecture with the challenge for Chesterfield to, ‘stimulate delivery on outstanding development opportunities like the Northern Gateway, and to bring fresh ideas that capture the imagination.’ It provides a framework for a number of key projects including Northern Gateway, Spire Neighbourhood, Railway Terrace and Station Approach. This Council has significant holdings in these project areas enabling us to influence greatly and control development, working in many cases through a partnership approach.

Market Hall: A multi-million pound redevelopment and refurbishment scheme of Chesterfield’s historic Market Hall. Building on the recommendations of the 2009 Feasibility Study and a strong business case, the Council, Kier and project managers MACE Group are set to oversee the reconfiguration and refurbishment of the Grade II listed building together with the redevelopment of it’s 1970’s counterpart extension. The scheme aims to deliver a new viable and sustainable space that will strengthen the vitality of an iconic building and Chesterfield as a market town.

Sheffield Road (former Dema Glass site): A recently completed development providing a new stadium for Chesterfield Football Club and a Tesco store.

Housing Sites: It is acknowledged that the delivery of new homes within Chesterfield has been stalled over the past few uncertain economic years. We are identifying what barriers to new homes exist and considering ways, where possible, in which to decrease or remove these barriers. Providing new homes is crucial to the future of Chesterfield as well as providing financial incentives under the schemes such as the New Homes Bonus.

We are actively working with the HCA (Home and Communities Agency) to consider initiatives such as unlocking and increasing the supply of publicly-owned land, ensuring that the Council does not hold such land any longer than it has to and to de-risk sites prior to disposal in order to ensure delivery of new homes. Various options will be considered for surplus Council sites to enable housing developers to take advantage of schemes such as the HCA’s Build Now Pay Later system. This approach will offer a lifeline to developers who may be struggling with cash flow issues, allowing them to defer land payments until homes are built and being sold.


Waterside Regeneration Scheme


Where we need to be

27


We are committed to taking on board real transformational change to improve the efficiency, effectiveness and adaptability of our land and buildings in the delivery of public services.

This will be realised through attainment of the following aims:

1) An improved knowledge management of our Land and Property Portfolio, including its use, occupancy, tenure, size, condition and running costs.

2) A review of property holdings to:

a) Identify and dispose of surplus or underperforming assets according to an agreed policy framework and 3/5 year plan

b) Identify opportunities to reinvest in existing assets to generate increased capital receipts and revenue savings and to utilise retained assets better

c) Support reconfiguration of services and administration so that they occupy space more efficiently

3) A corporate approach to the management of our assets, to implement a policy and plan for carbon reduction initiatives, to introduce new ways of working and to encourage community use of assets.

4) A commitment to work with our public sector partners to develop and implement a more joined up way of delivering services.

We will pursue the following objectives:

• Ensure sufficient, fit for purpose well maintained and managed properties are in the right locations to meet the need of services including community facilities.

• Office and other operational accommodation that houses our workforce in a smaller number of locations, in space of the right size, which creates a flexible, modern, productive, efficient, sustainable and good value environment.

• Appropriate representation of the Council’s services at a neighbourhood/locality level to support ease of access to services.

• The utilisation of ‘exit’ properties and other surplus assets as a catalyst for regeneration objectives for Chesterfield, whilst achieving value for money and maximisation of capital receipts.

• All operational properties to make a positive contribution towards meeting sustainability targets by reducing the overall footprint and increasing the efficiency of the estate.

• An integrated approach to our Land and Property portfolio in which offices, depots, community and leisure facilities etc are not just reviewed to achieve more effective use in their own right but to maximise their potential; benefits of linkages, collaboration and Total Place agenda between Councils and other public and voluntary bodies.

• A non-operational portfolio recalibrated to better deliver financial and regeneration outcomes. Specifically we proposed an approach to management in which assets are clearly related to their primary purpose, with reviews undertaken on a rolling annual basis for each significant class of asset and assessed on agreed performance criteria against which progress can be measured and the right decisions taken about divestment, retention and re-investment.

• An integrated approach to sustainability and carbon objectives, which improves energy efficiency, reduces carbon emissions and water consumption, incorporates sustainable design principles and reduces waste.

• A corporate approach taken to addressing and managing backlog maintenance issues and property related compliance requirements.

Where we need to be


How we plan to get there

31

A. Asset Rationalisation

Our Asset Management Plan is centred on the rationalisation of our property assets; to deliver dynamic solutions for maximising opportunity, unlocking value, delivering required savings and future efficiencies.

Key to this is undertaking a fundamental review of our Land and Property Portfolio to develop a full picture of what we own, how assets are being used and to determine the financial implications of retaining these assets.

The review will:

1. Be undertaken on an annual basis to re-determine whether or not the assets are delivering service objectives and tested against delivery of ‘core business’ needs with the aim of realising opportunities to reduce or reconfigure the size of the estate and identify where it can be enhanced.

2. Consider the energy performance of property assets

3. Develop, populate and implement a comprehensive electronic property data records management system. This will identify cost in use (including running costs, backlog maintenance, and management costs), alternative use, suitability, sufficiency, condition, and utilisation. This will be an invaluable tool for the on-going review of the Council Land and Property Portfolio and to inform strategic property decisions.

4. Challenge retention of the individual assets by identifying any land or buildings that are underperforming by virtue of rate of return, cost, condition, fitness for purpose, age or being surplus to the our requirements.

The outcomes of the review will be:

• A list of core properties categorised as operational, held for investment or to be retained by the Council due to other priorities

• Operational property aligned to service delivery requirements

• The ability to support the reconfiguration of services and administration so they occupy space more efficiently

• A list of properties that could be declared surplus or transferred

• Identifying demand for investment in existing assets

• Identification of future property requirements

• Identification of disposal opportunities and a policy framework for the disposal of assets

• Structured programme for repairs and maintenance

How we plan to get thereHaving looked at where we are and where we need to be, this section now focuses on what we need to do to get there. A detailed plan of the various workstreams is contained within the Action Plan at Appendix 1.


B. Corporate Arrangements for Asset Management

It is recommended that in order to achieve effective corporate asset management that an Asset Management Group is established. The proposed group needs to be of sufficient seniority and in consultation with Members should be an officer group, not Member led. The group requires clear terms of reference and reporting lines and members need to make a long term commitment to participation. It is further recommended that the group is chaired by the Council’s Deputy Chief Executive and additional members will include the Head of Finance and senior service managers whose service delivery is currently associated with occupation of property (other than administration office buildings) such as Environmental Services, Regeneration and Housing.


Proposed Terms of reference

• To establish and ensure corporate wide strategic approach for the use of property assets including the direction, alignment, compliance and review of the corporate asset management plan.

• To assist and shape the delivery of the capital strategy

• To ensure that the Council’s property portfolio is actively managed to deliver the required level of financial return

• To ensure efficient and sustainable use of property assets and to deliver cost saving strategies

• To ensure the use of property assets is contributing to the delivery of the Council’s corporate objectives

• To consider disposals and acquisitions of land and property to meet the Council’s changing objectives and needs

• To report recommendations for changes to the property portfolio to Cabinet and the Corporate Management Team

• To ensure that the property assets meet the needs of the Council through regular reviews.

• To produce performance information to monitor the effective use of property assets.

• Identify, coordinate and prioritise demands for expenditure on land and buildings

C. Develop the Corporate Landlord Approach

Under the Corporate Landlord model services will no longer own their assets, they will be a corporate asset and any capital receipts or utilisation will be a corporate decision via the Asset Management Group. This approach will ensure corporate priorities, not service priorities, are at the forefront. The model is designed to deliver a more coordinated and consistent operational management of the Council’s land and property portfolio. This approach will take the lead in delivering the efficiency savings identified within this asset management plan whilst also ensuring the strategic approach to the use of all our assets and the capital programme.

The Corporate Landlord model will ensure better delivery by:

• Management and maintenance transferred through to a single corporate body having central property cost budget holding

• Better understanding of the asset base allowing an easier delivery of public services and regeneration

• Single body responsible for the management of and collection of property costs, undertaking suitability assessments of property to services, maintenance quality and capital receipts

• Efficient use of assets is challenged by an agreed corporate approach

• Possibility of leases between corporate and services – more focused on property costs via an internal accommodation recharge

• Facilitates corporate change


D. Operational Portfolio Strategy

Efficiency / Utilisation

In the drive to improve efficiency and effective use of accommodation, we will need to look at our office accommodation and depots.

In terms of office space utilisation, best practice suggests a target of 10m2 per Full Term Equivalent (FTE) including ancillary space. A rudimentary study in late 2010 showed that the Council is currently achieving in the region of £14m2 per FTE in the Town Hall (Town Hall Accommodation Report by CBC Estates dated 11/08/2010). Further work is required to undertake a full review of space utilisation and an audit of desk usage across the portfolio, however it is considered feasible to achieve a figure of at least 10 m2 per person. This significant improvement in the use of office space would allow the Council to consider opportunities such as reducing the size of its estate and realising capital receipts or to share space with partners and receive rental income (see Action Plan in the Appendix). Both would result in reduced running costs.

Town Hall

Whilst there will be difficulties to overcome in adapting the Town Hall due to its design, layout and listed status, there is potential to introduce improvements by adopting practices outlined above in Office Efficiency/Utilisation and in Property Must Support New Ways of Working, below. Other improvements could include the co-location of the Heads of Service and by providing a dedicated director’s touchdown space.

Alongside these office improvements, there is potential to introduce environmental sustainability measures such as biomass heating (wood chippings) to replace the gas boilers, increase the size of the photo-voltaic (PV) array, grey water recycling, waterless urinals, energy efficient lighting and secondary glazing.

Revenues Hall

The location of this building lends itself to being a ‘Public Service Hub’, where the Council shares the space with other public sector partners, voluntary/third sector partners to provide a central and accessible face-to-face contact point. This will mean customers will have seamless access to all Council services as well as a wide range of public services from partner organisations (see F. Co-location/Shared Services, below).

87 New Square

This listed building is located in a prominent location in the Town Centre. It is let out to two voluntary sector tenants, a chiropodist and also houses the Council’s CCTV operation and Car Parking Services. The building has limitations preventing the expansion of the CCTV operation in terms of its fitness for purpose (poor security and inability to provide emergency generator backup). Its vacation by occupying Council services should be pursued because:

• Running costs are extremely high when compared to the Town Hall and Revenue Hall

• The CCTV operation and Car Parking Services can both be relocated to more appropriate locations

• It has marginal strategic importance and is a potentially saleable asset

Council Depots

The Council currently operates from Boythorpe Depot and Stonegravels Depot. The intention is to give consideration to centralise depot operations to Stonegravels Depot. Boythorpe Depot will be vacated, together with East Lodge, the adjoining office building. This surplus property will then be either sold or let. Further rationalisation and/or savings may be achieved through sharing depot facilities with other public sector partners.

Leisure Centres

The Council is currently considering the options for the long term management of its two leisure centres, Staveley Healthy Living Centre and Queens Park Sports Centre. Within the Council’s operational portfolio the leisure centres account for nearly 50% of total water used, over 30% of the electricity consumed and over 40% of gas consumed, based on the average for years 2008/9 and 2009/10 (source: Kier Facilities Management).

Parks and Recreation

The Council has nearly 200 parks, sports, recreation and play areas together with 5 multi-use games areas. In addition to this there are 29 allotments and 8 woodland areas. This totals nearly 400 hectares. With such a significant portfolio there are onerous liabilities including back-log maintenance with little scope for income generation. In order to tackle this issue a new strategy will have to be developed to provide the context, vision and strategic direction for the management and improvement of parks and open spaces and the development of new open space. The aim will be to maximise the social, environmental and economic benefits of provision – to increase the quality/ reduce the quantity.


E. Property Must Support New Ways of Working

The Council’s Business Transformation Strategy, which will transform how its services are delivered, would be supported by the introduction of New Ways of Working. This is a culture change for real improvements in productivity and customer satisfaction, by providing a collaborative environment for its staff to work in, the removal of silos and to allow the adoption of flexible working practices. Property will play a major part in supporting new ways of working as well as generating further property cost savings from the reduction in office space required.

The new philosophy for the office environment could include:

• Open plan environment (where feasible) - to allow for flexibility and adaptability to organisational changes

• Flexible space - with a mixture of allocated desks, ‘agile’ desks and for home working,

• No individual offices – to break down hierarchical barriers

• Shared space – with team spaces, variety of meeting rooms, quiet areas, break out areas and places to eat and drink.

• A ‘less paper office’ – reduced storage supported by document management

• Central service hubs – printing, scanning and shredding

• Workplace policies – e.g. clear desk, open diary

• Telephony – contact numbers that follow you around

• Meeting rooms – fully IT enabled and centrally managed with room booking system

It will be achieved through:

• Data gathering to map service requirements

• Surveys to capture individual/team requirements

• Space utilisation surveys

• Staff and Union engagement through design groups, focus groups, accessibility groups and via a dedicated intranet site

• Storage and access to recorded information will be modernised by investing in information and communication technology and with a decrease in on-site paper storage.

The implementation of the Council’s proposed Green Transport Plan will assist in the introduction of new ways of working by enabling:

• The increased use of PDA’s and mobile working

• Increased use of conference calling

• Take up of a home working scheme

• A system to make occasional home working easier


F. Co-Location/Total Place

The local authorities of Derbyshire have already established a means of joint working to explore rationalisation and the potential to co-locate and share services through the ‘Space Derbyshire’ project. This public sector forum will spearhead the drive to share premises and even bring a number of public services under one roof with potential for the Council to sub let space. This will result in cost savings, income generation and more efficient delivery of services to the Chesterfield community.

The strategy will:

• Map and examine the total public sector estate in Chesterfield

• Share meaningful benchmarking information to enable assessment of performance and drive further efficiencies. The use of indicators for office efficiency will allow the Council to benchmark performance with other local authorities, including those in Derbyshire under the Space Derbyshire project, in order to identify inefficient usage and how this can be jointly addressed.

• Identify and appraise potential accommodation rationalisation opportunities

• Work up a plan to set out the vision and priorities for partners to sign up to

• Implement the efficiency and cost saving measures according to the plan

• Pool professional resources to deliver the strategy

A project is considering the potential for voluntary sector organisations such as Citizens Advice, Law Centre and Unemployment Centre to share space and improve linkages with the services they provide.


G. Corporate Building Maintenance Strategy

The aim of the strategy will be to reduce backlog maintenance through property rationalisation: to dispose of all surplus or ‘non-fit-for-purpose’ property and the relocation of services into fit for purpose property. Centralisation of related budgets will allow corporate control of expenditure, planned maintenance and investment.

A programme will be developed to:

• Produce condition surveys across the Land and Property Portfolio with a priority focus on the Operational Portfolio

• Ensure compliance with health and safety legislation and statutory compliance

• Target maintenance work more effectively

• Reduce reactive and unplanned work to allow improved planned maintenance

• Enable effective management of landlord and tenant maintenance obligations and dilapidations responsibility

H. Community Buildings Strategy

In its document, ‘Sustainable Community Strategy for Chesterfield and North East Derbyshire’ the Local Strategic Partnership has the vision, ‘making Chesterfield and North East Derbyshire safer and fear free places in which to live, work, play, and invest’. The focus is on Accessible Communities, Living Communities, Safer, Healthy and Active Communities, Sustainable Communities and Working and Learning Communities.

This Council can use land and property assets and work with our partners to drive forward this vision.

The aim of the strategy will be to work with other public/third sector partners including church groups, community forums to develop an appropriate and co-ordinated network of Council supported high quality community assets that:

• We can afford to continue to support and maintain to a high standard i.e. financially sustainable with consideration given to devolving budgets.

• Meet the needs of the community i.e. they are in the right place, linked to public transport, car parking provision, close to other community facilities but not duplicating provision, accessible to all sectors of the community, affordable, environmentally sustainable and well utilised.

• Maximise the benefits accrued to the community and promote the integration of local communities.

The objectives of the community strategy are:

1. Asset Rationalisation review to identify inappropriate buildings. This will mean considering the current level of use and the potential level of use by assessing demand from other potential user groups. It will look at the location and suitability of design; the running and maintenance costs; the level of investment required to increase the life of the building or to increase its suitability. Buildings found to be underutilised with little or no possibility of increasing use, or found to be not sustainable by virtue of the level of running costs and level of investment required to make suitable should be considered for disposal.

2. Engagement with the local community, potential user groups and third sector providers to encourage a pooling of talent/expertise, sharing of premises, linkages between groups and access to external funding for facility improvements. This has been successfully achieved already at Swanwick Hall where the local community has worked with a third sector user to renovate the Hall using funds accessed through the voluntary sector user and brought it into full time use including evening and weekends.

3. To identify opportunities for co-location within non-Council owned buildings. These may be for instance church or village halls that are currently underutilised. This part of the strategy may require us to allocate funds to support the creation and provision of neighbourhood hub buildings. The creation or improvement of existing buildings to provide an appropriate and suitable network could be funded by savings made in rationalising the existing community buildings portfolio and realising receipts from disposal of inappropriate assets.


I. Environmental Sustainability Strategy

We are committed to environmental sustainability and have operated to the Eco-Management Audit Scheme (EMAS) since 2005. Our aim is to achieve the highest standards of quality and environmental performance and to minimise the negative impact of all our activities and services throughout their lifecycle. We signed the Nottingham Declaration in 2007 to strengthen our commitment to reduce CO2 emissions and have issued Quality and Environmental Policy Statements setting out our environmental aims.

Asset management needs to be at the heart of this established environmental management system, in terms of achieving savings and energy efficiency measures. Energy costs are continuing to rise significantly and there will be further regulations and targets alongside the current Carbon Reduction Commitment, which will increase pressure for a more sustainable approach.

In terms of our property assets we will:

• Ensure the efficient and effective use of energy and other resources, such as water and natural materials.

• Reduce carbon emissions from the operation of our assets by identifying opportunities to change fuel sources to those with a lower or zero carbon impact.

• Identify options for low or zero carbon energy generation – considering third-party supply and/or own generation using our land.

• Increase environmentally preferable procurement, improve waste management and protect and enhance biodiversity on our land.

We will commit to the following during all investment and rationalisation activities relating to property assets:

• To use property more efficiently in terms of space utilisation, considering sharing assets and integrating community use into our plans.

• To continually improve operational procedures

• To seek to acquire buildings with energy performance in the upper quartile for that building type.

• To consider both the energy performance and proximity to public transport networks in the selection criteria for an acquisition or disposal.

• To replace, where appropriate, existing plant and equipment with zero or low carbon technologies.

• To improve energy metering systems, monitoring and interrogating energy use in all assets.

• To consider ‘whole-life cost’ (i.e. sustainability, energy and carbon implications) during all property decision making.

• To reduce carbon emissions arising from staff travel and transport to/from our assets.

• To engage communities and other stakeholders local to our land and property assets and promote opportunities for public participation in developing and implementing our response to climate change.

• To report environmental performance as required by EMAS.

• To promote awareness of energy use for building managers, occupiers and users.

• To manage land in a way that allows it to adapt to a changing climate, while continuing to deliver primary public benefits.

• To identify preferred areas for renewable generation i.e. biomass plants and wind energy.


J. Non-Operational Portfolio Rationalisation Maximising Performance

Project Objectives

The aim of the strategy is to actively manage the portfolio to better deliver financial and regeneration outcomes. Specifically, to manage and measure each class of asset to agreed performance criteria, enabling good decisions about disinvestment, retention and re-investment.

The objectives of this strategy are to:

• Develop a clear framework for categorising non-operational property assets. This will make clear the reason for retaining individual assets, i.e. that they satisfy set corporate objectives and identify those that should be considered for disposal.

• Establish a management framework for each category

• Propose a methodology and governance arrangements for periodic review of assets.

In considering the retention of assets, some of the key issues include:

• Enabling us to retain important sites for foreseeable events in the future e.g. redevelopment opportunities in strategic areas such as the Town Centre.

• Buildings that are occupied by community groups thus restricting potential disposal.

• There are many very low rental freehold interests where the cost of disposal would appear to outweigh the capital value. In Chesterfield this applies mostly just to small areas of vacant land where there is an informal policy of a minimum land charge for e.g. garden land sales

• A small number of properties are potentially subject to grant clawback if sold.

• That there may be some prospect of an increase in value, for example as a result of vacant possession being obtained.

• Genuine commercial reasons where there is a good return on capital.

exercise should be done as soon as possible to be used as a mechanism to determine capital improvements to assets, which will provide cost effective ways of increasing asset value (capital/rental) and reducing costs.


K. Housing Shops Strategy

The Council owns 26 shops in suburban areas, mostly groups of 2 to 4 units, together with the larger parade of 10 units at Loundsley Green. Currently fully let, these have in the past shown a 20% vacancy rate. Many of these shops have flats included, most without central heating and many of them do not meet the current regulations for Decent Homes Standard. The shop premises have been excluded from programmed improvement to the residential stock, accordingly many are in worse condition than the surrounding houses. Some are in need of substantial capital investment or maintenance. The Housing shops require a high degree of estate management in relation to income produced with low rent and low rental/ capital growth.

In recent years there has been a move away from these shops providing traditional convenience stores and newsagents, towards take-aways and specialist stores. Therefore the social reasons for Council ownership serving the local area, is not as strong as in the past.

In accordance with agreed strategy 5 shop properties with poor occupancy records and requiring significant refurbishment and repair were sold in 2010 producing capital receipts of £219,000. A further selective disposal program is recommended, taking account of the suitability properties for individual disposal, timing in the market, and to avoid future major maintenance requirements.


L. Disposal Strategy & Programme

Disposals play a fundamental role in supporting the Council’s Capital and Regeneration programmes. However, the current Capital Receipts programme is effectively a list of property that is in the process of marketing or sale. Although it creates receipts, which are utilised in the Council’s Capital Programme, it is not formally linked to our wider aims and objectives and it is not tailored to meet the need for receipts.

Proposed Approach

The exercise to rationalise and re-align the Council’s portfolio will introduce a strategy to formalise procedures and ensure that the whole portfolio is looked at on a systematic basis. It will identify property assets that are surplus and can be sold and where there may be benefit in improving these assets in order to maximise their value. A planned and programmed disposal strategy is therefore recommended over the short and medium term with a rolling programme so that properties can be brought forward for disposal at the optimum time.

The disposal programme will address the following issues:

• Establish the context for a disposals strategy in relation to our corporate plan

• Develop a disposals strategy taking account of prevailing market conditions.

• Establish an appropriate options appraisal process for all surplus assets addressing all relevant commercial issues and opportunities to support our corporate plan.

• Establish a policy and procedure for earmarking receipts

• Provide an accurate forecast for receipts from the sale of surplus assets for the next three / five years.

• Performance management of the end to end disposal process

• Community, political and stakeholder engagement in the disposals process.

• Identify any linkages with other strategies.

Option Appraisals

It is proposed that all assets are appraised to a level proportionate to their value and / or significance of the disposal. This strategic approach will consider:

1) Market Conditions - to prioritise properties within a disposal programme so that those least affected are brought to the market first.

2) Options – potential options having regard to market conditions, planning policy and any commercial issues. Particular consideration should be given to sectors of the market where there is strong demand and any opportunities to match any known requirements from end users. The appraisal should include an evaluation of each of the options.

This could involve the comparison between the site value and the ongoing costs of retention e.g. rates, security, maintenance, compared to the rate of recovery in the property market. Other appraisals may compare, for example, refurbishment as opposed to demolition and new build; the benefits of site assembly / site break up / phasing; or the benefits afforded by re-locations, co-locations and cross benefit subsidies from any freed up sites.

3) Strategic Requirements – to consider any aspirations and requirements for the future operational estate and whether retention of the asset has potential to fulfil other corporate plan priorities.

4) Planning Consent - to established a policy to allow the Council to apply for planning consent for change of use where it is both property owner and Local Planning Authority.

5) Political, Stakeholder, and Community engagement - consultation with elected members and community forums at an appropriate stage to secure engagement and forestall opposition based on lack of information.

6) Integration of disposals and capital requirements - periodic progress reports and position statements will be prepared where relevant.

7) Title - We are in the process of voluntarily registering our property portfolio. Registration significantly reduces legal issues and speeds up the conveyancing process, which in turn reduces the risk of back word from purchasers. The process of voluntary registration should if possible be geared to inclusion of all properties identified for disposal.



Conclusion

45

The monitoring and evaluation of the plan will be carried out by Kier, the Council’s asset management provider as a member of the Council’s Asset Management Group.

Conclusion The Asset Management Plan provides us with the strategic initiatives we need to use our land and property assets to actively support financial and corporate objectives. It includes a detailed 5 year action plan (see Appendix), which will require resources and investment to drive forward strategies for property savings and improving retained assets. Fundamental to the success of the plan is the need to adopt a corporate approach to asset management, the need to understand our assets, to go through a process of rationalisation and to work with our public, private and voluntary sector partners to support improvements in service delivery and to drive further efficiencies.



Appendix

47


Ref. Action Plan

1 Asset Rationalisation Resources Targets Timescale

1.a

Implement an Asset Data Records Management System to contain all property ownership records, property data (address, type, age, occupation, area, value, condition, utilisation, suitability, costs in use, backlog maintenance, income, fitness for purpose, alternative use etc)

CBCKIERarvato

ADRMS in place for cost benefit analysis and strategic decision making

Sep-12

1.b Agree performance measurement statisticsCBCKIERarvato

Meaningful benchmarking Sep-12

1.c

Replace the current paper based Terrier system with a digital Geographic Information system (GIS).Investigate cost saving opportunities and benefits to link the terrier system with SIGnet, the HCA's GIS system

CBCKIERarvato

GIS Terrier in place Dec-12

1.d

Agree protocol / policy framework and review assets on an on going basis to determine whether or not the assets are delivering service objectives and against delivery of ‘core business’ needs with the aim to realise opportunities to reduce or reconfigure the size of the estate and where it can be enhanced. Challenge retention of the individual assets by identifying any land or buildings that are underperforming by virtue of cost, condition, fitness for purpose, age or being surplus to the Council’s requirements.

CBC FinanceKIER

Identify assets: (1) To retain(2) To sell/transfer (3) To retain and enhance(4) To enhance and dispose(5) To enhance, dispose and lease backwith the aim to reduce portfolio by a minimum of 10%

Mar-12

1.eInvestigate Housing Land within the Terrier system to address historic anomalies and current strategic requirement and identify disposal opportunities to reshaping of the ‘Housing Estate’

CBC Housing ServicesKIER

Identify possible assets for disposal within the HRA account

Dec-12

1.f

Periodically review the Asset Management Plan to ensure that the Council’s property assets are utilised in such a way that their full potential is realised in respect of supporting the service delivery and achievement of the Council’s objectives

CBCKIER

Maintain up to date Plan On-going

1.gReview rating assessments on a 5 year rolling programme and ensure that appeals are submitted and pursued where appropriate

CBCKIER

Reduce rating liability On-going


2 Operational Portfolio Rationalisation Resources Targets Timescale

Office Portfolio Strategy

2.aReview space utilisation and undertake an audit of desk usage across the portfolio.

CBCKIERarvato

Identify current provision Jun-12

2.b

Implement plan to improve office utilisation through:- use of rectangular desks- replacing filing cabinets with lateral storage cupboards- limiting storage to 2 linear metres per FTE (a third to archive, third to dispose and a third to keep) - implementing an archiving/storage strategy

KIERarvato

Achieve office utilisation of at least 10m2 per FTE (Derbyshire CC aiming for 5-7m2 per FTE for usable office space excluding ancillary areas)

Dec-12

2.c Reduce the size of the office estateCBCKIERarvato

Achieve 20% reduction in space by 2013

Dec-13

2.d Town HallCBCKIERarvato

Create vacant space in Town Hall for relocation of staff or sharing with partners

Partner sharing of space in Town Hall

Dec-12

2.e Revenues HallCBCKIERarvato

Investigate opportunity to provide face-to-face 'public hub' with public sector/third sector partners (Customer Contact Centre)

Jun-12

2.f 87 New SquareCBCKIER

Vacate and consider future uses of 87 New Square. Relocate CCTV & Car Parking Services

Mar-13

2.g East Lodge (with Boythorpe Depot)CBCKIER

Vacate and consider future uses of East Lodge/Boythorpe Depot. Transfer the depot/storage function to Stonegravels and back office staff to retained offices

Dec-12


2.hConsider vacation of North Lodge offices and alternative uses e.g. Community Use

KIERCBC

Vacate and consider future uses of North Lodge offices

Dec-12

2.i

Meeting Rooms: - undertake audit of meeting rooms and usage - introduce policy to reduce 'personal' meeting rooms i.e. only for accepted need - introduce corporate room bookings system

CBCKIERarvato

Corporate Rooms Booking System introduced

Jun-12

Depot Strategy Resources Targets Timescale

2.jStonegravels Depot / East Lodge/Boythorpe DepotTransfer the depot/storage function to Stonegravels Depot and back office staff to retained offices

CBCKIER

Vacate and consider future uses of East Lodge/Boythorpe Depot. Transfer the depot/storage function to Stonegravels and back office staff to retained offices

Dec-12

2.kInvestigate possibility of co-location of shared depot facilties with other public sector partners

Space DerbyshireKIERCBC

Improved depot facilities and share running costs

Dec-12

Leisure Centre Strategy Resources Targets Timescale

2.lConsider options for future management operations and investment required

CBCReduce running costs and provide a high standard of leisure facilities in Chesterfield

Dec-12

Parks and Recreation Strategy Resources Targets Timescale

2.m

New strategy will have to be developed to provide the context, vision and strategic direction for the management and improvement of parks and open spaces and the development of new open space

CBCKIER

The aim will be to maximise the social, environmental and economic benefits of provision – to increase the quantity/ reduce the quantity.

Dec-13


3 Supporting New Ways of Working Resources Targets Timescale

3.a

To develop a framework document detailing the principles for the introduction of new ways of working for administrative staff including:

- Asset Review to assess suitability/adaptability of current administrative offices- Asset enhancement to assess opportunity and cost/benefit to adapt current administrative offices- Profiling of administrative workforce- Work space allocation, furniture profile and with arvato to specify ICT provision - Space Planning including team space, break out space, private space, meeting space and touchdown space

CBC

Achieve additional 10% reduction in space by 2013 (above 20% identified under Office Accommodation rationalisation)

Ensure alignment with Green Transport Plan

Dec-12

3.b Data gathering to map service requirementsCBCKIER

Identify service and service linkage requirements

Apr-12

3.c Surveys to capture individual/team requirements CBCKIER

Identify service and service link requirements

Apr-12

3.dStaff and Union engagement through design groups, focus groups, accessibility groups and via a dedicated intranet site

CBCKIERarvato

Engagement and buy in from those affected

On-going

3.eStorage and access to recorded information will be modernised by investing in information and communication technology and with a decrease in on-site paper storage.

CBCKIERarvato

Dec-12


4 Co-location/Shared Services

4.a Map and examine the total public sector estate in ChesterfieldSpace Derbyshire

Identify public sector assets Sep-12

4.bShare meaningful benchmarking information to enable assessment of performance and drive further efficiencies.

Space Derbyshire


4.c

Identify and appraise potential accommodation rationalisation opportunities. Work up a plan to set out the vision and priorities for partners to sign up to and implement the efficiency and cost saving measures according to the plan

Space Derbyshire

Improve facilities and shared costs Sep-12

4.d Pooling of professional resources to deliver the strategy Space Derbyshire

Improve collaborative working to save costs & identify opportunities

On-going

4.eExplore the potential for voluntary sector organisations such as Citizens Advice, Law Centre and Unemployment Centre to share space and improve linkages with the services they provide.

CBCKIERVoluntary sectors

Achieve a public sector hub offering a wide range of services whilst reducing running costs

On-going

5 Community Buildings Strategy Resources Targets Timescale

5.aMapping and utilisation survey to examine all community buildings in Chesterfield

CBCKIERCommunity groups

Identify community buildings in Chesterfield and how well they are being used

Jan-13

5.bDevelop an assessment and prioritisation process for the transfer of assets into community ownership and management

CBCCommunity Forums / Groups

Create policy document and framework for community transfer

Mar-13

5.c Develop and mentor community groups to take on asset transfer


Devolve management and costs Dec-13

4 Co-location/Shared Services

4.a Map and examine the total public sector estate in ChesterfieldSpace Derbyshire

Identify public sector assets Sep-12

4.bShare meaningful benchmarking information to enable assessment of performance and drive further efficiencies.

Space Derbyshire


4.c

Identify and appraise potential accommodation rationalisation opportunities. Work up a plan to set out the vision and priorities for partners to sign up to and implement the efficiency and cost saving measures according to the plan

Space Derbyshire

Improve facilities and shared costs Sep-12

4.d Pooling of professional resources to deliver the strategy Space Derbyshire

Improve collaborative working to save costs & identify opportunities

On-going

4.eExplore the potential for voluntary sector organisations such as Citizens Advice, Law Centre and Unemployment Centre to share space and improve linkages with the services they provide.

CBCKIERVoluntary sectors

Achieve a public sector hub offering a wide range of services whilst reducing running costs

On-going

5 Community Buildings Strategy Resources Targets Timescale

5.aMapping and utilisation survey to examine all community buildings in Chesterfield

CBCKIERCommunity groups

Identify community buildings in Chesterfield and how well they are being used

Jan-13

5.bDevelop an assessment and prioritisation process for the transfer of assets into community ownership and management


Create policy document and framework for community transfer

Mar-13

5.c Develop and mentor community groups to take on asset transfer


Devolve management and costs Dec-13


6Environmental Sustainability (see EMAS Environmental Statement 2010/11) Resources Targets Timescale

6.a CO2 reduction from local authority operations

Reduce carbon emissions from corporate buildings by 10% for 2010/11 relative to 2008/09

Reduce carbon emission from vehicles & plant / equipment used for local authority business (fleet, essential and casual) by 10% for 2010/11 relative to 2007/8

Agree new targets for subsequent years

Dec-11

6.b Improved local bio-diversity – active management of local sites

To progress actions as specified within the Greenprint Action Plan

Progress will be reported in 2010/11Dec-11

6.e Reduction in impact of CBC waste

To recycle 25% of all waste generated by CBC by 2010/11

To control waste created by Operational Services Depot, including waste from voids, ensuring that at least 25% of this waste is recycled by 2010/11

To recycle 25% of all waste generated by CBC business tenants by 2010/11

Agree new targets for subsequent years

Dec-11


6.f Reduction in water

Per head water consumption rates for Leisure centres to match or beat benchmark levels

To reduce water consumption in nominated buildings by 2% year on year relative to 2007/8

(Staveley HLC contributed 8583 to this figure, targets for 2009/10 and 2010/11 to reflect 2008/9 as a new benchmark level)

Dec-11

6.gIdentify options for low or zero carbon energy generation – considering third-party supply and/or own generation using our land / buildings

CBCKIER

Reduce adverse effect on the environment and costs

On-going

6.hEngage and communicate with key stakeholders and other partners as we develop and implement our response to climate change.

CBCKIER


On-going

6.iTo replace, where appropriate, existing plant and equipment with zero or low carbon technologies.

CBCKIER


On-going

6.jTo improve energy metering systems and monitor and interrogate energy use in all assets.

CBCKIER


On-going

6.k

Town HallInvestigate replacement of gas boilers with biomass generator; replace existing lighting with energy efficient lighting

To complete a cost benefit analysis of installing double/secondary glazing

CBCKIER

Reduce energy costs Mar-13


7 Non-operational Estate Strategy Resources Targets Timescale

7.aDevelop a clear framework for categorising non-operational property assets.

CBCKIER

Categorise according to purpose: Potential Disposal, Investment and Regeneration/Strategic

Mar-12

7.bPropose a methodology and governance arrangements for periodic review of assets

CBCKIER

Ensure asset retention is challenged Dec-11

7.c

Potential DisposalAny properties identified as Potential Disposal will be reported to the client for approval and as appropriate added to the Capital Receipts Schedule

CBCKIER

Establish a 3-year programme of disposals to inform the capital programme

On-going

7.d

Investment PortfolioAssets in this category should only be retained if the return exceeds an appropriate rate to be determined by Finance and KIER. The rate of return on all such assets will be reviewed on an annual basis and a report provided to the client.

CBCKIER

Agree rate of return for investments Dec-11

7.e

Regeneration/StrategicAssets held in this category should be managed to mitigate the costs of their retention until such time as they are required for redevelopment or for a regeneration scheme e.g. Northern Gateway

CBCKIER

Reduce costs of retaining assets and identify short term income generation opportunities

On-going

7.fProspect House, Ireland Business ParkThis investment property has vacant space and has proven to be difficult to let. Develop strategy to improve investment.

CBCKIER

Reduce voids On-going


8 Housing Shops Disposal Strategy Resources Targets Timescale

8.aIn accordance with Cabinet Approval on 21.10.08, establish a programme for the disposal of Housing Shops in order to mitigate major refurbishment costs

CBCKIER

Generate capital receipts and reduce repair and maintenance liabilities

Mar-13

9 Building Maintenance Strategy Resources Targets Timescale

9.aProvide for the undertaking of a condition survey of the Land and Property Portfolio with a priority focus on the Operational Portfolio and collate building condition information

KIER

Complete condition survey or all operational property.

Understand any potential dilapidation issues for non-operational portfolio.

Apr-12

9.bEnsure compliance with health and safety legislation and statutory compliance

CBCKIER

A compliant Council On-going

9.cReview maintenance spend and backlog position. Target maintenance work more effectively

KIERTo reduce reactive and unplanned work to allow improved planned maintenance

On-going

9.dEnable effective management of landlord and tenant maintenance obligations and dilapidations responsibility

KIER Robust estate management regime On-going

10 Disposal Strategy Resources Targets Timescale

10.aDevelop robust and adopted disposals strategy which is clear and free of potential challenge

KIERImplement an adopted approach to the disposal of surplus assets to generate capital receipts

Mar-12

10.bProgramme disposals resulting from implementation of rationalisation and co-location strategies

CBCKIER

On-going


11 Governance Arrangements Resources Targets Timescale

11.a Set up the Asset Management GroupCBCKIER

Establish officer group for corporate property decision making

Dec-11

11.bTo establish and ensure corporate wide strategic approach and use of property assets including the direction, alignment, compliance and review of the corporate asset management plan.

CBCKIER

Ensure corporate approach to asset use is rolled out across the estate

Dec-11

11.c

Management and maintenance transferred through to an AMG sub group body having central property cost budget holding. Single body responsible for the management of and collection of property costs, undertaking suitability of property to services, maintenance quality and capital receipts

CBCKIER

Establish a sub group to the AMG to ensure improved use of assets

Dec-11

11.dPossibly lease accommodation between corporate and services – more focus on property costs via internal accommodation recharge

CBCKIER

Incentivise efficient use of space Dec-12

12 Regeneration Resources Targets Timescale

12.aThrough the use of the Council's property assets and compulsory purchase powers aid and promote delivery of regeneration within Chesterfield.

CBCKIER

To deliver key regeneration projects within the Borough

On-going

Chesterfield Borough Council Corporate Asset Management Plan · uncertain economic times and it is...

Documents

Transcript of Chesterfield Borough Council Corporate Asset Management Plan · uncertain economic times and it is...