PGN 01 - Property & the Asset Planning System · Property Performance Improvement Scheme Property...

PGN 01 - Property & the Asset Planning System

Metadata

Contents

Summary

The Asset Planning System

Funding

Value for Money (VFM)

Activities

Activities & Linkages

Responsibilities & Documents

Corporate Asset Management Planning (CAMPing)

Corporate Asset Management Plan (CAMP)

Service Asset Management Planning (SAMPing)

Service Property Strategies (SPSs)

Summary of Roles in the Asset Planning System

Components

Corporate Property Vision

Corporate Property Objectives

Service Property Visions

Service Property Objectives

Property Programmes

Property Performance Improvement Scheme

Property Processes

Type: Procedure

Doc No: PGN 01

Classification: Unclassified

Author:

Issuing body: Resources and Performance Board

Authoriser:

Team: Herts Property

Date created: 11 Jan 1999

Version date: 12 May 2010

Issue: Version 3

SO:

of 39PGN 01 - Property & the Asset Planning System (v. Version 3)

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Property Standards

Property Guidance Notes (PGNs)

Property Board

Property Panel

Capital Projects Officer Group (CPOG)

See whole procedure

Print procedure


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Summary

This guidance note provides an overview of the Asset Planning System.


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Please be aware that the guidance given below is under review and will be updated shortly. Should you require clarification or have a query please contact

Property is a valuable asset of the County Council and it is needed to house all our activities.

The cost of replacing our property portfolio in its existing condition is in excess of £2billion and there are large costs associated with purchasing, leasing and altering property for a new use. Disposals can release

large amounts of capital and save on revenue for reinvestment to improve service delivery.

The County Council has a substantial portfolio of property that it holds mainly for service delivery purposes (schools, day centres, fire stations, libraries etc). However, we also hold property in advance of need

(reserve sites, land for road improvements) and property being prepared for disposal. We also use a lot of property that we do not own to deliver services - often linked to new ways of delivering services.

In managing our property we have to:

be very careful about how property is managed and how decisions are taken about what to acquire, what to use and what to sell

be careful about how we implement our decisions and monitor our success

look at all the property we use and not just focus on the property we own

ensure that all the property we use to deliver services is appropriate at all times

The Strategic Asset Management Team within Property & Technology manages all this via the Service Property Priorities Review, which is refreshed annually and fully reviewed every two years.

Via this review process the County Council is taking a comprehensive approach to all aspects of its property use to ensure that it best meets the needs of its businesses in delivering high quality services to its

citizens. We continue to develop our approach to strategic asset management planning in response to the change needs of services due to both internal and external factors.


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The Asset Planning SystemThe Asset Planning System is a corporate framework for property decision-making and implementation. Its purpose is to ensure that the council makes the best use of property assets by taking sound business

decisions about the investment of new and existing resources in property and by implementing the decisions effectively.

Business decisions about improving service delivery, including the decisions about the resources needed to achieve them, are taken both corporately and by services. As the ways in which we deliver services

undergo continual change so do our property requirements. Decisions on property and other resources flow from our corporate and service business decisions. As a result, a property solution has to be the best

available within the best business solution. The Asset Planning System is intended to deliver these solutions.

The system can be described in four different ways - in terms of activities and linkages, in terms of responsibilities and documents, in terms of components and in terms of performance. The first three

descriptions are summarised in this section with more detail later in this guidance note. The Corporate Asset Management Plan describes the performance of the property portfolio, the property processes and the

property services.

Looked at in terms of activities the Asset Planning System links together decisions about the three groups of activities associated with property. These are set out below.

The attached diagram below shows how these activities link inside and outside the Asset Planning System. A more detailed description is given in Activities and Linkages.

The system can also be described by Responsibilities and Documents. It can be seen as combining two complementary strands:

Corporate Asset Management Planning

Service Asset Management Planning

Corporate Asset Management Planning is carried out by Hertfordshire Property and is represented by the Corporate Asset Management Plan (CAMP). This strand focuses on overall direction, overall performance

and cross-service issues. The CAMP sets out the corporate approach to property, the performance in achieving the council's corporate property objectives and the actions to be taken to achieve further

improvement.

Service Asset Management Planning is carried out by individual services and is represented by the Service Property Strategies (SPSs). This strand focuses on service direction, service property performance and

service specific issues. SPSs contain the service approach to property, its service property objectives, an assessment of its existing property and its actions to improve the appropriateness of the portfolio it uses.

Activities

Activity Description

Taking

property

into use

Acquisition in its widest possible sense - any

way in which the council gets to use property

which is appropriate for service delivery. This

includes purchase, lease, licence, hiring,

nomination rights, use of other people's homes

or the adaptation and improvement of existing

council property.

Using

propertyActive use of property for service delivery.

Taking

property

out from

use

Redeployment of inappropriate property or the

resources invested or associated with it. This

includes short and long-term re-use or

disposal. Capital receipts or released revenue

are re-invested in property or other aspects of

service delivery.


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The two strands are described in more deail in Responsibilities and Documents together with the roles of the people involved.

The system can also be seen in terms of its eleven components which work together to ensure that sound decisions are made and implemented. The components in the first column in the table provide direction

and actions to meet that direction. Those in the second column support the action. The components are described in more detail in Components.

The attached diagram below shows how the components link inside the Asset Planning System.

Whichever description is used, the Asset Planning System provides the County Council with a means of ensuring that property makes its contribution to delivering good quality services to the citizens of

Hertfordshire.

Diagram Components (MS Word 29KB)

Asset Planning System (MS Word 31KB)

Components

Corporate Property

VisionProperty Processes

Corporate Property

ObjectivesProperty Standards

Service Property

Visions

Property Improvement

Management Scheme

Service Property

ObjectivesProperty Guidance Notes

Property Programmes Property Board

Property Panel


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FundingThe ways in which the council can fund the property element of service delivery continues to change. The traditional route of the capital programme now represents a smaller part than it did in previous years.

Competitive bidding has emerged as a way of allocating resources by central government and new ideas continue to emerge. The latest is the Single Capital Pot from which resources will be allocated by central

government on a combination of formula and performance. The information generated by the Asset Planning System, and in particular Service Asset Management Planning, helps in the preparation of bids to the

available sources.

Funding (or the actual property itself, in some cases) is possible from various sources.

In addition, there is the recycling of the capital already invested in the council's property. This is a fundamental part of the Asset Planning System and continues to make a substantial contribution to the county

council's resources. With the introduction of the capital finance regulations (and their predecessors) attention has moved from achieving gross capital receipts to achieving "usable" receipts. Receipt targets have

changed accordingly. Previously, if a capital receipt was not handled under the capital finance regulations then half of it had to be put to debt redemption. Recycling receipts - normally within a particular service -

allowed up to 100 per cent of the receipt to be reused. This increased the benefits that could be gained by the council from a particular sale. The percentage to be put to debt redemption was re-set to zero in

1998. This has released more funds from sales for investment in service delivery.

The capital strategy covers the general funding situation and the council's approach in more detail.

Funding Sources

Gift (now rare)County Council

funds

European

structural funds

Capital challengeEnglish

partnerships

Single

regeneration

budget

National LotteryPlanning

obligations

Bartering of

sites/buildings

TrustsSupplemental

credit approvals

PFI/public private

partnership


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Value for Money (VFM)Achieving VFM is relevant to the performance of the property portfolio, the property processes and the property services. At the highest level, value for money is achieved through Best Value reviews and the

identification of change following the monitoring of performance. At more detailed levels it is achieved by a variety of means. At whichever level VFM is being considered it must be done from the very start of any

change, because that is the time when biggest decisions are being taken with the biggest impact on the final outcome.

The achievement of the three Corporate Property Objectives represents achievement of value for money in relation to property, but VFM must be defined in the context of what we are trying to achieve as an

organisation. In some cases, seeking VFM solely in relation to property may not achieve VFM for the wider project to which it is contributing.

The council's approach to property is intended to achieve VFM in business and property terms.

Value for Money

SubjectExamples of the means of

achieving value for money

Property portfolio

Clarity of purpose

Use of standards

Use of standardised building

components

Review of standards and

standardisation

Ensuring property is

appropriate in terms of:

- condition

- sufficiency

- environmental impact

- suitability

- costs

Property processes

Effective processes for:

- acquiring or improving

assets

- reviewing assets from

service and corporate

perspectives

- releasing surplus assets

Appropriate techniques and

tools

Documentation and training

Property Services

Open comparison/

competition

Effective contract

management


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ActivitiesThe diagram under Asset Planning System is a simple illustration of how the activities in the Asset Planning System fit together and how they interlink with activities for other assets.

In reality things are not as simple.

Decisions about acquiring, using and releasing property are often taken together as part of a larger business project to change the nature of the service being delivered. Many other decisions will also be taken in

respect of other assets or resources.

A more complex diagram is attached below that shows how the changes to property may occur to meet new business requirements.

This part of the guidance note describes how the activities and Property Processes fit together.

Linkages (MS Word 56KB)


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Activities & LinkagesDirect Service Use Property

Each department uses a portfolio of property to deliver its services. This is the whole point of property at the council.

Use can be achieved in many different ways.

Ways of achieving use:

Freeholds (ownership) - including adaptations and improvements to existing council property

Leaseholds - including adaptations and improvements to existing council property

Licences

Hirings

Nomination rights

Care and other contracts

Using homes of clients or staff

At any given point in time more property is in use than is subject to change. Whilst the property remains appropriate for the delivery of service the normal management activities are carried out. Strategic

management is carried out by the service with estate management issues (rent reviews, repair & maintenance etc) implemented by the property consultants. Day to day management rests with the apppropriate

establishment. Hertfordshire Property carries out strategic management of Offices and the Operational Housing Pool. Day to day management of the Offices rests with the property consultants and for the

Operational Housing Pool it is with Aldwyck Housing Association.

It is necessary to ensure that property performs in the way intended. Costs and occupancy are monitored annually and periodic reviews are carried out to ensure that the buildings and their use meet current

standards and allow the achievement of the current service vision.

Change and decisions

Changes to a service may result in the need or change to the property used to deliver the service. Business change can occur for many reasons. A particular change may affect just one service or several of

them.

In addition, change may be specifically related to property.

Possible causes of business change

External Demographics Lifestyle

Central government

initiatives

Legislation /

regulation

Economy Technology

Council

wideThe Hertfordshire Promises

Resource

strategies

Corporate themes

ServiceChanging customer focus

and demands

Best value reviews

Service specific legislation /

regulation

Plans approved by

Cabinet

Service specific central

government initiatives

Service ISO14001

or EMAS


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Possible causes of property change

Deterioration

Accident (fire, vehicular damage, vandalism, etc)

A review of service property through a Service Property Strategy

Corporate Property review recommendations

Changes in legislation and regulation

Singular occurrences (e.g. lease expiry)

The Priorities and Actions from the Service Property Strategies provide information on needs and changes to property - where they no longer meet standards (either because the standards have changed or the

property has changed). In addition, this information can be used to bid for surplus property to meet the needs. The recommendations from Corporate Property Review will result in the possible need for change to

property currently in service use, because of factors external to that service.

If a change in circumstances occurs to the business or the property and as a result the property is no longer appropriate then decisions have to be made about how to respond. These decisions may be part of a

larger piece of work about the direction of the service, but this note concentrates on the property aspects. Services - with support from Hertfordshire Property and the property consultants - identify the most

appropriate way forward. There are several types of decisions available. More than one type of decision may be taken in response to a change.

Decision Types

Do nothing

Invest capital or revenue Repair & maintenance

Improvements to existing

property

Adaptations to existing

property

New build

Freeholds or leaseholds

Property PPP/PFI scheme

Secure 'use' of other

property for service deliveryLicences

Hirings

Nomination rights

Clients or staff homes

Care or other contracts

Release from the service

Sell or recycle the capital

and/or revenue back into

property

Sell and use the capital

and/or revenue for other

projects

Let

Hold in advance of need

Hold for good estate

management

Re-use by another service

(Release property and)


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Do nothing is always an option. There will be circumstances in which this is adopted as the solution, because there is no alternative or the other options are not cost-effective or affordable. In selecting this

option the council will have accepted that it will continue to use property which is not appropriate for delivering services and accepted the detrimental impact on the service. Not using property must be considered

as an option (although strictly speaking every human activity has to take place somewhere).

Some of the Secure 'use' of other property decisions will be linked to high level business decisions about how a service will be procured including provision by other parties. In some of these cases property is

made available indirectly, but the council must still be sure that the property from which the public is being served is appropriate. Performance measurement and/or contract terms will help with this.

Decisions have to be made based on thoroughly developed business cases. For disposals and purchases they are called Property Policy reports.

Implementation

Depending on the number and types of decisions that are made one or more of the Property Processes may be used:

Decisions linked to PPP/ PFI solutions will follow the PPP/PFI process. This is not exclusively a property process.

The diagram shows the different stages which each of the processes must go through to ensure that the decisions are properly implemented. The result of the Project, Programme and Purchase Processes will be

property for use by the service that meets or better meets the needs of the service. The results of the Redeployment Process are more varied and are described in the next sub-section.

Services, Hertfordshire Property and the property consultants are all involved in implementing the decisions and have specific role in each of the processes.

Redeployment Process

All decisions and redeployment are undertaken corporately.

If the decision is to redeploy a property by re-using it to meet a service requirement then it returns to being Direct Service Use property.

If the decision is to redeploy property by re-using the capital to meet a service requirement for a different property under the capital finance regulations then the capital is made available to the service outside of

the Capital Programme Review Process.

If the decision is to release 'used' property then it is returned to the owner under the terms of the occupation.

If the decision is to redeploy property by leasing to an external organisation then the property consultants are instructed to agree terms. In these cases the property will remain Corporately Managed Property.

If the decision is to redeploy property by re-using the capital against corporate priorities then the property is sold and the capital is made available via the Capital Programme Review Process. Some of the

invest in primarily non-

property business solutions

Decisions

Decision Type Property Process

Adaptations, improvements and

new buildProject Processes

Repair and maintenanceProgramme

Processes

Freeholds and leaseholds Purchase Process

Sell, let, hold in advance of need,

re-use

Redeployment

Process

'Use' of other property No single process


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resources may be invested in non-property projects.

If a service decides to release a property and not to seek to re-invest the capital then the revenue savings return to the service. They may be used to invest in other aspects of the service or offered up as a

saving or efficiency in budget negotiations. This is not shown on the diagram.

Links to the Annual Business Cycle (ABC)

Business change and the need to change property can occur at any time, but the approval and funding processes normally form part of the Annual Business Cycle (particularly for internal sources). The ABC

starts with the preparation of the service plans that set the direction for each service. The chart below shows how the Asset Planning System links into the ABC. It shows one full cycle from service plans to the

start of the implementation of projects and a partial cycle to illustrate the continuous nature of the ABC.

Asset Planning System (MS Word 32KB)


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Responsibilities & DocumentsThe two strands of the Asset Planning System are:

Corporate Asset Management Planning - carried out by Hertfordshire Property

Service Asset Management Planning - carried out by services

The two strands complement each other. The dual approach ensures that service and corporate issues are both considered and that they inform each other.

Hertfordshire Property and the services are only part of a much longer supply chain which also comprises:

Members - in service and corporate roles

Establishment Representatives

Property consultants

Contractors and Sub-Contractors

Suppliers

All of these people have specific roles and must work together to ensure that the most appropriate property portfolio is obtained and maintained for delivering services, however, they are not all involved in all the

activities.

This part of the guidance note describes:

Corporate Asset Management Plannning (CAMPing)

Service Asset Management Planning (SAMPing)

The Corporate Asset Management (CAMP)

The Service Property Strategies (SPSs)

Roles


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Corporate Asset Management Planning (CAMPing)Corporate Asset Management Planning ensures that:

property decisions on acquisition, use and re-deployment are linked back to the council's business objectives

property decisions are made in the best overall interest of the council

property and associated resources are allocated to the greatest need

property is used efficiently, effectively and economically

This is done by:

1. Preparing the Corporate Asset Management Plan including setting and enforcing:

the Corporate Property Vision

the Corporate Property Objectives

the Property Programmes

2. Setting and enforcing:

the Property Processes

those Property Standards that need to be corporate

3. Applying:

the Redeployment Process (see PGN 10)

the Corporate Property Review Process (see PGN 9)

the Purchase Process (see PGN 12)

4. Implementing:

the Business Improvement Programme

the Corporate Property Review Programme

the Property Improvement Programme (capital programme property projects) (through project management)

the Property Planned Maintenance Programme (through programme management)

the Disposal/Capital Receipts Programme

the Energy & Water Conservation Programme

5. Supervising the application of:

the Project Process (see PGN 3 and PGN 4)

the Programme Processes (PGN 5)

the Service Property Strategy Process (PGN 2)


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6. Making linkages with:

plans and strategies for other assets/resources

7. Administering:

the Asset Planning System

the property contracts

the Property Board

the Property Panel

8. Undertaking:

performance improvement management

Best Value reviews

9. Issuing:

Guidance

Hertfordshire Property and Cabinet are responsible for the corporate aspects of asset management planning.


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Corporate Asset Management Plan (CAMP)The CAMP is the most significant corporate document related to property. It sets out the corporate property direction and actions to achieve that direction. Cabinet approves the CAMP in July each year. A

summary version is submitted to the ODPM with the Capital Strategy as part of the basis for the allocation of the discretionary part of the Single Capital Pot (see note below). Information from the Service Property

Strategies is used in creating the CAMP; in particular in relation to the performance of the property portfolio and the identification of the actions.

The diagram attached illustrates how the CAMP links to other documents both inside and outside the Asset Planning System.

It is in the county council's interest to produce a good CAMP in order to:

maximise the resources obtained from the ODPM under the Single Capital Pot

minimise the supervision from the ODPM

contribute to the overall score awarded to the county council under the Comprehensive Performance Assessment (CPA)

A copy of the current CAMP and the ODPM summary can be obtained from Hertfordshire Property.

Note: the Single Capital Pot is central government's new arrangement for allocating borrowing approvals on an annual basis to local authorities. The allocation is made on the basis of a formula and the

assessment of the CAMP, the Capital Strategy and the overall performance of an authority.

CAMP

The parts of

the CAMPPurpose

Approach

Sets out the context for property decisions

including the direction - in the form of the

Corporate Property Vision and the

Corporate Property Objectives plus a

summary of the Asset Planning System

(based on this guidance note).

Performance

Sets out the success in meeting the

Corporate Property Vision and the

Corporate Property Objectives using

indicators and targets from the Property

Performance Improvement Scheme. The

focus is on the performance of:

- the property portfolio

- the property processes used to change

the portfolio

- the property services used to deliver the

changes to the portfolio

Actions

Sets out the future actions to be taken to

meet the Corporate Property Vision and the

Corporate Property Objectives - in the form

of Property Programmes. It includes those

Property Programmes that are not

commercially sensitive


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CAMP (MS Word 52KB)


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Service Asset Management Planning (SAMPing)Service Asset Management Planning:

ensures that service property needs link back to service and corporate business objectives

ensures that service property needs are clearly defined against service and corporate property objectives

ensures that decisions are implemented effectively

provides a bidding tool for resources (the Service Property Strategy)

Each service does this by:

1. Preparing the service property strategy including setting and enforcing:

the Service Property Vision

the Service Property Objectives including setting and enforcing those Property Standards which need to be set by individual services

priorities and actions

2. Applying:

the Corporate Property Vision and the Corporate Property Objectives

those Property Standards which need to be set corporately

the Project Processes (through project sponsorship)

the Programme Processes (through programme sponsorship)

3. Working with corporate staff in the application of the other Property Processes

4. Day to day management of property in service use

Service Property Strategies are described in the next section.

Each service is responsible for asset management planning. The sponsorship roles for projects and programmes are carried out by the services. However, project management and programme management are

carried out by Hertfordshire Property on behalf of all services. The Property Panel assesses the quality of the Service Property Strategies.


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Service Property Strategies (SPSs)A Service Property Strategy is the most significant service document related to property. It sets out the service's position on property in terms of objectives, problems, priorities & actions to solve the problems.

Every SPS is set in March each year and is examined by the Property Panel. There are SPSs for the areas set out below.

The SPS comprises a combination of service direction and actions to meet that direction.

PGN 02 - Service Property Strategy Process describes the content and creation of a SPS in more detail.

The SPSs are used as a bidding tool for resources from:

internal sources - including bidding for surplus property under the Redeployment Process.

SPSs

Services covered by Service Property

Strategies

Adult Care Services Environment

Children, Schools & Families Fire & Rescue

Community Information Offices

Corporately Managed PropertyStatutory

Services

County Supplies and Contract Services Voluntary Sector

SPS

Element of an SPS Purpose

Service context and

Service Property Vision

(s)

To set out the context

affecting service provision

and so property

requirements and describe

the nature of property

desired.

Service Property

Objectives.

(approaches/building

standards/targets)

To add detail to the Service

Property Vision(s) and for

use in assessing the

appropriateness of existing

property and setting future

requirements.

Serviceability standards

To set desired levels of

performance for buildings to

inform decisions on R&M

and design.

Summary of existing

property used

To identify deficiencies

against the Vision and

Objectives and so identify

where action is needed.

Priorities and actionsTo set priorities and the

nature of actions.


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government departments

external funding

The high priority actions identified in the SPSs will result in business cases which will be submitted to the Capital Projects Officer Group prior to being considered by members for inclusion in the Capital

Programme. The development of projects to the business case and beyond should follow the guidance set out in PGN 03 - Project Processes - Introduction and PGN 04 - Project Processes - Techniques

and Tools.


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Summary of Roles in the Asset Planning SystemSummary

People Role

Members

Setting corporate direction by the

Corporate Asset Management

Plan (Cabinet)

Checking overall performance via

the Corporate Asset Management

Plan (Cabinet)

Approving (or otherwise)

proposals outside officer

delegations (Cabinet)

Checking the Corporate Asset

Management Plan (Property

Panel)

Checking the Service Property

Strategies (Property Panel)

Advising Cabinet on policy

development (Property Panel)

Awareness of and input into

proposals (constituency work)

Hertfordshire

Property

Drafting the Corporate Asset

Management Plan

Project Management and

Programme Management on

behalf of services

Managing the property contracts

for externalised property services

Commissioning all work under the

property contracts

Re-deploying property to re-use

or disposal

Undertaking Corporate Property

Review

Managing the Asset Planning

System

Service

DepartmentEstablishment representation

Project Sponsorship and

Programme Sponsorship

(including the identification of

service needs resulting in

property needs)

Drafting the Service Property

Strategy

Day to day management of


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property which is in service use

Estate management of the Rural

Estate (Environment Department

only)

Property

consultants

Consultants under the property

contracts implementing the

decisions of members,

Hertfordshire Property and

services including requests for

advice

Contractors &

Sub-

Contractors

Implementing proposals on site

Suppliers

Providing components for the

building (e.g. locks, lintels, hand

basins)


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ComponentsThere are ten components to the Asset Planning System.

Corporate Property Vision

Corporate Property Objectives

Service Property Visions

Service Property Objectives

Property Programmes

Property Performance Improvement Scheme

Property Processes

Property Standards

Property Guidance Notes

Property Board

This part of the guidance note describes each of the components as well as the Capital Projects Officer Group to which all investment proposals are presented.


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Corporate Property VisionThis directs all property decision-making.

Corporate Property Vision:

To only use property which enhances service delivery.

This acknowledges that:

the county council's reason for using property is service delivery

property ownership is not critical to service delivery

property must not have a negative or neutral impact on service delivery, but must make an active contribution to it

property that does not enhance service delivery should be upgraded or released

The Corporate Property Vision is succinct, but all of the council's property related activity links back to its achievement.

The vision is included in the Corporate Asset Management Plan.


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Corporate Property ObjectivesIn achieving the Corporate Property Vision the council will meet its Corporate Property Objectives.

Corporate Property Objective

1. Ensure that our property is appropriate for its intended use in terms of suitability, sufficiency, condition, cost and environmental impact.

2. Ensure that we obtain appropriate property by using property processes that reflect or set best practice.

3. Ensure that we implement our property processes using property services (internal and external) that are efficient, effective and economic.

Achievement of the Corporate Property Objectives achieves value for money in relation to property. As a result, the objectives provide the basis for assessing performance in the Property Performance

Improvement Scheme.

The Corporate Property Objectives are included in the Corporate Asset Management Plan.


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Service Property VisionsThese combine the Corporate Property Vision and the Corporate Property Objectives with the service context.

The Service Property Visions comprise:

Aspects of Service Property Visions:

Description of the nature of the property which will be used

Description of how the property will be used

Decription of the distribution of the property

The Service Property Visions must:

Be based on the intentions in the Best Value Performance Plan and the service plans

Reflect the Corporate Property Vision and Corporate Property Objectives

The Service Property Visions are set out in the Service Property Strategies. More information on the Service Property Visions is provided in PGN 02 - Service Property Strategy Process.


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Service Property ObjectivesIn achieving the Corporate and Service Property Visions services have Service Property Objectives which they meet.

There are three parts to the Service Property Objectives:

A good use of objectives is to link the three aspects together - to do this thing, in this way, to this standard, by this date.

The Service Property Objectives are set out in the Service Property Strategies. More information on the Service Property Objectives is set out in PGN 02 - Service Property Strategy Process.

Objectives

Aspects Purpose

Approaches To set out the overall direction to be taken

Building

Standards

To set the desired levels of condition,

suitability, sufficiency and costs

Targets To set out the quantities and / or timing


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Property ProgrammesThese programmes help to achieve the Corporate & Service Property Visions and the Corporate & Service Property Objectives.

The officer responsibilities for the preparation of the programmes are:

Programmes

Programme Purpose


Programme (property part of

the capital programme)

To invest our limited capital

in new or existing assets in

the best way to improve

service delivery where this is

the most appropriate

approach. (Specifically

relates to Corporate Property

Objective 1).

Business Improvement

Programme

To train and develop service

sponsors and Hertfordshire

Property staff to ensure that

investment decisions and

their implementation are

carried out in the best

possible way (specifically


Objective 2) and to develop

our property services

(specifically relates to

Corporate Property Objective

3).

Corporate Review

Programme

To identify potentially surplus

or underused property.

Property Planned

Maintenance Programmes

To maintain existing property

assets to a good standard

taking into account the

occupation intentions of

services. (Specifically


Objective 1).

Disposal/Capital Receipts

Programme

To dispose of surplus assets

in the most beneficial way

including the release of

capital for re-investment in

service delivery.

Energy & water conservation

programme

To improve the

environmental impact of our

property. (Specifically


Objective 1).


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The Property Programmes which are not commercially sensitive form part of the Corporate Asset Management Plan.

Responsibility

Programme Responsibility


Programme (property part of

the Capital programme)

Corporate Finance

Business Improvement

Programme

Hertfordshire Property

(Management Team)

Corporate Property Review

Programme


(Corporate Estate)

Disposal/Capital Receipts

Programme


(Corporate Estate)

Property Planned

Maintenance Programmes


(Projects & Facilities)

Energy & water conservation

programme


(Projects & Facilities)


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Property Performance Improvement SchemeThis monitors success in achieving the Corporate Property Vision and Corporate Property Objectives and identifies and implements actions that will help to continuously improve performance and support service

delivery.

Measurement of improvement using:

national corporate indicators, corporate targets and benchmarking

HCC corporate indicators, corporate targets and benchmarking

HCC service indicators, service targets and benchmarking

Note: Benchmarking will not be appropriate for all the indicators.

The county council is using the ODPM national property performance indicators and the Construction Best Practice Programme (CBPP) indicators, where relevant, to enable national comparisons with other local

authorities and the whole of the construction industry. The analysis of the data is carried out either corporately or in conjunction with the property consultants. The details of performance management are set out

in PGN 13 - Property Performance Improvement Scheme.

Reports on the success in meeting the performance targets form part of the Corporate Asset Management Plan.

Each service also sets targets as part of its Service Property Objectives. These are set out in the service's Service Property Strategy and take into account the Corporate Property Objectives. The service targets

help to ensure that the Service Property Objectives are achieved.


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Property ProcessesThese help to achieve the Corporate Property Vision and the Corporate Property Objectives and to ensure that the Property Programmes are well founded and delivered.

In addition, these two extra processes apply to all assets and not just to property.

Descriptions of the Property Processes and the associated processes can be found as set out below.

Process

Process Purpose

Service Property

Strategy process

To ensure that needs, inappropriate

property, priorities and actions are

clearly identified from a service

perspective.

Project processes

To ensure that projects are run

effectively and achieve their objectives.

Programme

processes

To ensure that maintenance

programmes are run effectively and

achieve their objectives.

Corporate

Property Review

process

To ensure that inappropriate property

is identified from a corporate

perspective.

Redeployment

process

To ensure that change to property is

identified and tracked and that surplus

property is re-allocated for the most

appropriate new use or for disposal.

Purchase process

(traditional)

To ensure that freehold and leasehold

acquisitions are run effectively.

Responsive

Maintenance

process

To ensure that responsibe repairs are

arranged and carried out effectively.

All Assets

Process Purpose

Capital Programme

Review process

To ensure that the highest priority

projects are identified for funding.

PPP/PFI process

To ensure that proposals for

PPP/PFI schemes are developed

effectively.

Processes

Process Location

Service Property Strategy

ProcessPGN 02

Project Processes PGN 03

PGN 04


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Property Project Workbook

Programme Processes PGN 05

Redeployment Process PGN 10

Corporate Property

Review ProcessPGN 09

Purchase Process PGN 12

Responsive Maintenance

ProcessPGN 14

Capital Programme

Review Process

Annual guidance issued by the

Finance Director

PPP/PFI Process PGN 57


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Property StandardsThese help to achieve the Corporate Property Vision and the Corporate Property Objectives by providing a basis for assessing property performance and by ensuring consistency across projects and programmes

in achieving the Property Programmes. There is a hierarchy of standards leading to End User Choice which is attached below.

The Corporate Design Principles are set corporately. In the other categories some of the standards are set corporately and others are set by services. The Building Research Establishment (BRE) is helping to

develop the standards. Arrangements are being put in place to ensure that the standards are kept up to date.

The standards can be found as set out below:

Property Standards (MS Word 28KB)

Standard

Standard Purpose

Corporate

Design

Principles

To set principles to guide the design of

buildings and their setting which must be

followed for all projects.

Performance

Specification

To set detailed requirements for

common elements across a type of

property or for all properties (from

structural elements down to fixtures and

fittings).

Building

To set desired levels of suitability,

sufficiency, condition and cost for each

type of property.

Serviceability

To set desired levels of performance for

buildings to inform design and decisions

on R&M.

MaterialsTo set out the position on the use of

certain materials.

Deemed to

Satisfy

To set out practical examples that meet

the other standards.

Standards

Standard Location

Corporate design

principles

Corporate standards - website

to be accessed from Compass.

Performance &

Specification, Materials

and Deemed to Satisfy

Service standards - yet to be

identified.

Building & Serviceability

Corporate standards - yet to be

identified - except for office

space standards (which are in

PGN 30).

Service standards in the SPSs.


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Property Guidance Notes (PGNs)Guidance is issued on many aspects of property to help achieve the Corporate Property Vision and the Corporate Property Objectives by spreading understanding and ensuring consistency across projects and

programmes in achieving the Property Programmes.

Guidance notes cover several subjects:

A description of the Asset Planning System (this PGN)

Processes

Standards

Conduct

Other matters where guidance is appropriate

The notes are produced corporately and are distributed to all officers across the county council who deal with property. They are also shared with the property consultants. The guidance is updated as

circumstances change.

Copies of the notes can be obtained from Compass under Policies & Procedures.


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Property BoardThe Property Board provides a formal opportunity for officers to discuss, make decisions (within delegations) and report progress on property issues affecting the whole authority.

The Property Board is a group of senior officers who meet every other month.

In addition, the Contract Director for ? and the Customer Services Manager attend each meeting. This is in line with our partnership agreement. It helps to reduce "surprises" for clients and the consultant.

Other officers within the council receive copies of the papers.

The County Property Officer is responsible for implementing and disseminating the output of the Board at a corporate level.

Examples of the activities of the Board:

Contribution to the creation of the Corporate Asset Management Plan each year.

Contribution to reviews of how property services are delivered (organisation, process and procurement including best value reviews)

Overseeing implementation of best value reviews and assessing the implications of the BVPP programme of reviews and the property implications of individual reviews.

Considering learning points from service and corporate projects (including significant results from project reviews)

Considering issues with relevance to all services e.g. WorkWISE, training, DDA, NNDR, Corporate Asset Management Planning.

Administration of the Board is undertaken by Hertfordshire Property.

Membership

Membership of the Property

Board

The County Property Officer

- Chairman

Representatives from

services

Children, Schools &

Families (2)

Adult Care Services (1)

Community Information (1)

Fire & Rescue (1)

Environment (1)

Representatives from


Head of Project & Facilities

Head of Corporate Estate


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Property PanelThis Cabinet Panel provides advice on the development of property policy on areas referred to it by the Executive Member - Resources, Cabinet, the Leader or a Scrutiny Committee. In addition, the Panel

examines the quality of the Service Property Strategies and the Corporate Asset Management Plan.

Property Panel's remit:

Advice on the development and implementation of the Council's policy for property management.

The Panel meets monthly as minimum (except August). Membership is in accordance with political proportionality. Details of membership are available on Compass under Democracy. The Executive Member -

Resources also attends to hear the debate and contribute.

Standing items for the Panel are the assessment of the Service Property Strategies (each Spring) and the Corporate Asset Management Plan (each July).

Administration of the Panel is undertaken by Hertfordshire Property.


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Capital Projects Officer Group (CPOG)This group is not exclusively part of the Asset Planning System because it relates to all types of asset, but it is included because property investment projects form a large part of the capital programme.

The purpose of the group is to review all major capital schemes to:

Test linkages to corporate priorities (the Hertfordshire Promises and the Capital Objectives)

Review the basis of option appraisal

Review the basis of cost and time estimates

Test deliverability of project (timetable, risk of delay etc)

Test the quality of proposed management arrangements

The Board is a group of senior officers who meet in November each year.

Membership of the Capital Project Officer Group:

The County Property Officer - Chairman

An Assistant Chief Executive

The Finance Director

The Director of Community Information

Two service representatives

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