Gloucester ilCity Council
MAKING OUR PROPERTY PERFORM
CONTENTS
Page
Foreword ...... 3
1.0 Introduction ...... 4
2.0 Gloucester City Council‟s Assets ...... 6
3.0 A Strategy for Managing Assets ...... 7
4.0 A Strategic Approach to Managing our Key Assets ...... 9
4.1 - Housing Stock ...... 9 4.2 - Office Accommodation ...... 10 4.3 - Cultural and Tourism Service Buildings ...... 12 4.4 - Major Sports and Recreation Buildings ...... 14 4.5 - Parks and Open Spaces ...... 15 4.6 - Car Parks ...... 17 4.7 - Community Buildings ...... 19 4.8 - Markets ...... 20 4.9 - Historic Monuments ...... 21 4.10 - Allotments ...... 22 4.11 - Crematorium and Cemeteries ...... 23 4.12 - Investment Property ...... 24 4.13 - King‟s Quarter ...... 25 4.14 - St. Oswald‟s Park Development Land ...... 26 4.15 - Strategic Landholdings ...... 27 4.16 - Toilets ...... 28 4.17 - The Depot, Eastern Avenue ...... 29
5.0 Acquisitions & Disposals ...... 30
6.0 Climate Change ...... 31
7.0 Planned maintenance ...... 32
8.0 Governance, Performance and Monitoring ...... 33
9.0 Summary and conclusions ...... 35
Appendices ...... 36
Appendix 1 – Corporate Property Team Structure Appendix 2 – Asset Management Group – Terms of Reference Appendix 3 – Asset Action Plan 2010-2015
2 Foreword from the Leader of the Council, Paul James.
I am delighted to introduce to you this important document “Making our Property Perform”. It is Gloucester City Council‟s strategy for managing its diverse portfolio of assets during the period 2010 – 2015.
This document covers what will be a very challenging period, and the effects of the economic downturn, and the recovery from it, will pose difficult questions. This plan aims to set a framework within which these questions and decisions will be handled.
The Council owns offices, homes, buildings, car parks, open spaces and investment property throughout the city and beyond. As a Council it is not an option for us to sit back and hope that these assets look after themselves. They won‟t.
This strategy sets out how we are going to use, develop and nurture our assets to achieve the very best outcomes, aligned to our corporate plan, for our communities, business and visitors. As one of the major land and property owners in the City we recognise the responsibility that we have in helping Gloucester fulfil its true potential.
The Council‟s corporate plan “Building a Better Gloucester” sets out our programme to create a stronger, successful and thriving 21st century city. As an organisation, our role in delivering that programme is about us being a top performing council with an unswerving focus on achieving the very best outcomes and value for money for Gloucester. With the advent of economic recession in 2009 and future anticipated strain on local government finance, effective asset management is an essential skill of a top performing council.
Through this strategy we will ensure that we use our assets wisely and to the fullest effect to build a better Gloucester for all of our communities and for future generations.
Councillor Paul James, Leader of Gloucester City Council
3 1.0 INTRODUCTION
1.1 This Asset Management Strategy tells the story of what “assets” Gloucester City Council owns, why it holds those assets and how they link to our service delivery and strategic priorities. Most of all it sets out the principles and actions necessary to ensure that we use our assets in the most effective way to deliver the best services, value for money and best outcomes for our customers, now and into the future.
1.2 Gloucester is a very special historic city. It is a truly unique fusion of the past, present and future. It has an enviable cultural heritage, a wealth of historic buildings, a great sporting history and is England‟s most inland port. The city‟s 2000 year evolution from a Roman fort to the modern and increasingly successful city we see today is a fascinating story of human endeavour, adaptation and the pursuit of excellence. Throughout that history the intelligent use of natural, land and building assets has been central to success.
1.3 Today, Gloucester is in the midst of another chapter in its history. A massive £1 billion regeneration programme is well underway with major mixed-use schemes at St. Oswald‟s Park, the Docks and Gloucester Quays already delivered and breathing new life into the central area. Major regeneration schemes planned at King‟s Quarter, Blackfriars, Greyfriars, the Canal Corridor and the Railway Triangle are all in the pipeline for delivery over the coming years. Gloucester is changing rapidly and becoming a successful and thriving modern city.
1.4 Gloucester City Council is an ambitious City Council that is playing a central role in this programme of transforming, regenerating and reshaping Gloucester. This is reflected in our corporate plan titled Building a Better Gloucester that sets out four very clear corporate aims, which are:
(i) To put Gloucester on the map
(ii) A thriving 21st Century City
(iii) A city with strong and cohesive communities
(iv) A top performing organisation
1.5 These have been developed from a clear evidence base and have widespread ownership from businesses and communities. Using the Council‟s assets wisely is critical to delivering these corporate aims.
1.6 Some simple examples can illustrate the strong link between our corporate aims and our assets. National events at GL1 and top acts at the Guildhall are examples of using our assets to put the city on the map. Using our car parks and markets creatively to increase shopper and visitor numbers is an example of using our assets to help create a thriving city.
1.7 Upgrading our housing stock and our network of premises used by communities and sports organisations all contribute to delivering community strength and cohesion. Developing plans to improve our operational property‟s efficiency is a major priority, which will reduce costs and support our journey to become a top performing organisation.
4 1.8 Making Our Property Perform is all about using our assets to best effect to deliver our corporate aims. We begin by setting out what the Council owns (section 2). The document then explains the principles underlying our approach to strategic asset management planning (section 3). We then explore each major component of the asset portfolio and identify high level asset management priorities (section 4). There is then a short section (section 5) dealing with disposals and acquisitions, a section on climate change (section 6), commentary on Planned Maintenance (section 7) and an account of the governance and performance management arrangements put in place to deliver this strategy (section 8). Section 9 is a summary and conclusion followed by the appendices that include an Action Plan (Appendix 3) that gathers together all of the key asset management priorities and tasks set out in this document.
1.9 This is a necessarily high level strategy and a wide range of strategies and plans sit beneath it. It does not give all of the answers for property related issues for the next five years but it does provide an intelligent route map, founded upon strong commonsense principles of value for money and customer focus.
5 2.0 GLOUCESTER CITY COUNCIL’S ASSETS
2.1 The Council‟s assets comprise everything that it owns. Understanding what assets the Council holds is a key foundation to successful management.
2.2 Our asset base is very wide and diverse and, like most councils, some of it is a simple product of historical circumstance. There aren‟t many organisations that own a 100,000 year old hand axe and a cutting edge 21st century electric car!
2.3 However, our most valuable assets tend to comprise buildings, property and land. Indeed, the Council is one of the largest land and property owners in the city and it is these assets, and their effective management, that are the focus of this strategy.
2.4 To many, thoughts about Gloucester City Council‟s property assets will focus on its operational property, such as the historic Docks warehouses, the Depot, the Guildhall, GL1 our leisure centre, our museums and other buildings that we use to deliver services to our customers. These are indeed important assets but, in value terms, comprise a small proportion of the total asset portfolio.
2.5 In addition to operational property, some of the significant assets owned by Gloucester City Council include:
A housing stock providing 4,900 affordable homes to families and individuals.
Development land such as St. Oswald‟s Park, much of which has already been brought forward for regeneration schemes.
Car parks providing over 2000 spaces to support the city centre economy and providing free parking and shopmobility facilities for disabled people
367 hectares of parks and open spaces used for sports, recreation and enjoyment.
Investment property providing financial returns to the Council to support its budgets and ability to deliver services.
Farmland, woodland, open space and half an airport outside the city‟s administrative area.
2.6 The Council‟s Corporate Property Service maintains a comprehensive asset register detailing all property assets held by the Council.
2.7 Excluding the housing stock the Council‟s property assets are valued at over £70 million. The Housing stock has a net value of £212 million giving a total asset value in the order of £282 million.
6 3.0 A STRATEGY FOR MANAGING ASSETS
3.1 Sitting back and hoping that the Council‟s major assets will look after themselves is not an option. In short our asset management strategy is to use our assets deliver our corporate plan - Building a Better Gloucester. The framework of our strategy is built on the following principles:-
Knowledge Building a thorough knowledge base of our estate in terms of what we own, its condition, occupancy, running costs and benchmarking with the open market is a prerequisite of successful asset management.
Corporate Strategy All assets held by the Council will be subjected to a detailed and regular scrutiny in terms of their contribution to the Council‟s four key aims. Assets that contribute the most towards the achievement of key aims will receive the greatest attention and investment. The future of those that don‟t will be considered carefully.
“Fitness for Purpose” All assets will be regularly tested against „fitness for purpose‟ criteria with a particular focus on customer service and experience.
Regular Condition Surveys All assets will be regularly surveyed and maintenance programmes developed and implemented to ensure that all key assets are kept in good and safe condition.
Value for Money All assets will be managed to achieve efficiency and value for money. In particular the performance of buildings in terms of whole life running costs will be subject to scrutiny and industry benchmarking. All buildings have running costs and the Council should reduce space requirements wherever possible freeing up space for subletting or disposal.
Environmental Responsibility Our assets are major consumers energy and produce carbon dioxide and other greenhouse gases. The Council is committed to reducing its carbon footprint and this will be reflected in its approach to asset management. There are particular challenges concerning energy consumption that will be addressed.
Disposals and Acquisitions All disposals and acquisitions will be based on sound business reasons in the context of corporate strategy and key aims. All receipts from asset disposals will be reinvested in the provision of frontline services.
Equalities All public buildings and facilities should provide equality of access.
The Future is Important Asset management decisions can have significant long term implications. We will not make shortsighted decisions.
7 Challenge and Innovation A central principle of good asset management is the ability to challenge existing arrangements, ways of working and long held assumptions and to explore new ways of using assets to best effect for the wider community.
8 4.0 A STRATEGIC APPROACH TO MANAGING OUR KEY ASSETS
4.1 Housing Stock
Assets: 4,585 rented dwellings (houses and flats) 254 leasehold flats 61 shared ownership dwellings 14 sheltered / semi sheltered housing schemes 609 garages 200 parking spaces Incidental areas of “Housing Land”
Corporate Key Aims: Strong and cohesive communities; a thriving 21st century city; top performing organisation.
Discussion The City Council‟s housing stock is its biggest and most significant asset group. The City Council is the biggest single provider of social housing in the city and provides homes to 9% of all the households in the city. The City Council is committed to being a provider of quality affordable housing to meet Gloucester‟s social housing needs.
Improving the stock to provide quality modern accommodation has been a priority of the Council for many years. Decent housing is a prerequisite of a successful city and strong and cohesive communities.
In 2005 the Council successfully bid for £39.6 million from central government to achieve the “Decent Homes Standard” throughout its stock. To deliver this programme and to improve overall management of the housing stock asset the Council established an Arms Length Management Organisation (ALMO), Gloucester City Homes (GCH).
GCH has made good progress achieving 2* status in its Audit Commission inspection in 2007 with promising prospects for improvement. GCH is on track to deliver the Decent Homes programme by 2011.
In 2008 the Council commissioned Sector Weedon Grant to undertake an options appraisal for the future management of the housing stock. That report recommends a priority focus on delivering the Decent Homes Programme through an extended GCH management arrangement with a fuller options review in 2011 to ensure decent homes are maintained into the future. There is also a need to adapt the stock to changing demographics and to improve energy efficiency.
Asset Management Priorities
Delivering the Decent Homes Programme by 2011. Undertake further future management options appraisal in 2011. Adapting the social housing stock to meet changing demand including identifying opportunities for growth and remodelling. Improving energy efficiency throughout the stock.
9 4.2 Office Accommodation
Assets: North Warehouse (freehold) – listed building Herbert / Kimberley / Phillpotts Warehouses (long lease) – listed buildings 75-81 Eastgate Street (short lease)
Corporate Key Aims: top performing organisation.
Discussion The City Council refurbished and moved into its Docks accommodation in the mid 1980s. It was a pioneering move that led the way for the Docks regeneration that is still progressing today. The warehouses are all listed buildings and were converted with sensitivity.
As the Council‟s organisational shape has changed the “fitness for purpose” of the accommodation has been rigorously challenged. Symptoms of inefficiency had become apparent in terms of low occupation densities, vacant space, an absence of effective open plan and modern methods of working, less than ideal front of house arrangements and generally high energy consumption.
The Council undertook a rigorous review of accommodation options between 2007 and 2009 to identify the best option in terms of value for money and fitness for purpose. This included a radical new build relocation option although this was found to be prohibitively expensive. Cabinet resolved in July 2009, to commit to remain in its listed Docks offices until at least 2017 and to initiate a major programme of rationalisation and modernisation to tackle identified inefficiencies. An Accommodation Plan will be developed to tackle all of these issues.
Energy efficiency is a particular priority in the Docks offices with the main complex having a low (E) energy rating. In addition to improving the energy efficiency of the buildings the Council is currently progressing a wind turbine project on nearby land that would generate sufficient equivalent renewable energy to power the docks office complex.
The Council also holds the lease of an office complex at 75-81 Eastgate Street which houses a variety of partner organisations, primarily drawn from the voluntary sector along with the Council‟s parking services provider. The lease expires in 2013 and the Council will need to manage the exit from that building and explore the relocation of existing uses into surplus office space at the docks.
Asset Management Priorities
Developing a detailed Accommodation Plan, embracing potential opportunities for sharing space with partners.
10 Looking at establishing optimum arrangements for customer services. Improving energy efficiency and progressing local renewable energy generation on Council land.
11 4.3 Cultural and Tourism Service Buildings
Assets: Gloucester Guildhall – listed building Gloucester Folk Museum – listed building Gloucester City Museum – listed building Tourist Information Centre, Southgate Street (short lease) – listed building
Corporate Key Aims: Putting Gloucester on the map, strong and cohesive communities; a thriving 21st century city; top performing organisation.
Discussion Our cultural and tourism services are very high profile and play a key role in putting the city on the map. Their work strengthens our communities and develops and celebrates pride in our city. The points of service delivery are clearly critical.
Prior to the Council‟s move to the Docks Gloucester Guildhall was the Council‟s civic headquarters. As part of its relocation package it disposed of the ground floor and basement to the then Cheltenham and Gloucester Building Society and retained the remaining accommodation for the creation of an “arts centre”.
The Guildhall has evolved from its arts centre origin into a highly successful multi purpose venue attracting top class international music and comedy acts, providing independent cinema, workshops and room hires to a diverse customer base. The building is in good order but its street entrance is narrow and weak. The demise of the C&G unit (expected autumn 2009) may create some issues and opportunities for the Guildhall.
The two museums are generally sound but need upgrading to bring them up to modern standards. A successful Heritage Lottery Fund grant aided scheme will address these issues by proving a new education wing at the Folk Museum and a complete redisplay at the City Museum. Implementing these schemes are the asset management priorities to ensure that our museums are able to tell the fascinating 2000 year story of Gloucester.
The lease on the Tourist Information Centre on Southgate Street expires in 2012. This location has worked well but the building is no longer fit for purpose. Its small size and the constraints of its historic fabric have resulted in a poorly ventilated, uncomfortable, inefficient and generally unsatisfactory environment. The Council will not be extending the lease and will need to find new accommodation to house the TIC.
Each of these listed buildings pose difficulties in maintenance and repair, as well as obtaining consent for adaptations to ensure they remain fit for purpose. In common with all the Council‟s operational property adequate funds for repairs have to be available through dedicated sinking funds and this is referred to in section 7 of this document.
12 Asset Management Priorities
Maintaining and evolving the Guildhall to enable it to continue to flourish as a successful venue. Implementing the Heritage Lottery Fund upgrading of the Folk and City Museums and ensuring the buildings continue to display Gloucester’s history to its best advantage. Options appraisal for TIC post 2012, including planning our exit strategy from this building. Improving energy efficiency.
13 4.4 Major Sports and Recreation Buildings
Assets: GL1 Leisure Centre, Bruton Way Oxstalls Tennis Centre, Plock Court
Corporate Key Aims: Putting Gloucester on the map, strong and cohesive communities; a thriving 21st century city; top performing organisation.
Discussion In the last 10 years the Council has invested heavily in delivering modern fit for purpose sports and leisure facilities at GL1 and Oxstalls tennis Centre.
GL1 was completed in 2001. It includes a wide range of top class facilities catering for swimming, indoor sports, health and fitness and events. The venue has the capability of hosting pop concerts with a capacity of up to 2000. It is a very successful leisure centre and has hosted national sporting events such as the 2009 synchronised swimming championships.
Oxstalls tennis centre is in similar league providing top class indoor and outdoor racket sports facilities together with a large multi use artificial sports court. It is located adjacent to Plock Court playing fields, the largest and most significant outdoor playing field facility in the city.
Both facilities, whilst modern, are heavy users of energy.
Aspire Sports and Cultural Trust was established in October 2008 to take over the management of the Council‟s sports and leisure services. The Council expects to reduce its direct support to Aspire over time.
Our priority asset management priorities are to keep these buildings performing well; explore a reduction in energy consumption and progress the expansion of Oxstalls / Plock Court as a sporting hub. The hub is planned to include a brand new athletics track to provide a sub regional facility and improve the city‟s presence on the sporting map.
Asset Management Priorities
Maintaining GL1 and Oxstalls Tennis Centre to ensure that they remain fit for purpose. To ensure adequate sinking fund provision in view of the liabilities facing the Council (see also later section 7). Managing energy consumption to optimum levels. Developing the hub concept at Oxstalls / Plock Court.
14 4.5 Parks and Open Spaces
Assets: 150 areas of public open space – 267 hectares Robinswood Hill Country Park – 100 hectares
Corporate Key Aims: Putting Gloucester on the map, strong and cohesive communities; a thriving 21st century city; top performing organisation.
Discussion Gloucester is a green city. Providing and maintaining green spaces and infrastructure is something the Council has done well for generations. From Robinswood Hill to Gloucester Park and Plock Court our open space assets provide wilderness, formal parkland and sports facilities for the benefit of the whole community.
Our parks and open spaces make considerable contributions to quality of life in the city and are enjoyed by all communities. They help the city to thrive and successive Gold awards in Heart of England in Bloom all help to put the city on the map.
We have undertaken some very considerable investment in our open space assets in recent years funded either through grants or commuted sums received though planning (“Section 106”) agreements. The jewel in the crown is Gloucester Park, which has been transformed through a £1.2 million investment from a failing, underused space into a thriving, vibrant park enjoyed by all.
Our successes could be further improved by adopting a more strategic citywide approach to the open space asset portfolio. This will ensure the very best outcomes, close alignment with changing customer needs and avoidance of duplication.
We will also ensure that new housing developments bring forward appropriate new open spaces and that appropriate maintenance funds are put in place prior to formal adoption by the Council. The Council will decide on disposals of open space against criteria such as:
Economic value – to homeowners, businesses and the Council. Social value – to individuals and society and finally, Environmental value – in terms of habitat provision, biodiversity, role in flood alleviation.
15 Asset Management Priorities
To develop a strategic approach to managing the open space assets. Adjusting the open space portfolio where appropriate. Maximising S.106 funds for open space investment. Introducing robust monitoring and management of S106 funds linked to open space strategy.
16 4.6 Car Parks
Assets: Hare Lane North – 79 spaces; Hare Lane South 103 spaces; Westgate Street 120 spaces plus 11 coach spaces; Longsmith Street Multi Storey – 323 spaces; Kings Square Multi Storey – 292 spaces; Eastgate Rooftop (The Mall) – 401 spaces; St Michaels Square – 94 spaces; Hampden Way - 104 spaces plus Shopmobility; Station Road – 112 spaces; Ladybellegate Street – 35 spaces; GL1 – 53 spaces; North Warehouse – 66 spaces (weekends only); Castlemeads – 249 spaces (weekends only); St Oswald‟s Long Stay (2 sites) – 310 spaces.
Corporate Key Aims: a thriving 21st century city; putting Gloucester on the map; a top performing organisation; strong and cohesive communities.
Discussion Car parking is one of the Council‟s most significant businesses. The Council is committed to operating this business to the highest standards. The Council is the largest provider of car parking in the city centre with 15 sites accounting for about 50% of all off street spaces in the city centre. The provision of good quality value for money car parking is critical to the economic success of central Gloucester.
The Council also provides the city‟s only major coach park at Westgate Street, free of charge, to support the tourist trade. At our Hampden way car park the Council provides excellent, free of charge, Shopmobility services enabling the disabled and elderly communities to access the city centre.
It is fair to say that in the past the Council‟s car parks were not a high priority in terms of investment and management of these assets was not entirely joined up or forward looking. All of that is changing with a new focus on improved quality, value for money and customer experience.
The Council has significantly reduced tariffs and actively marketed its car parks, driving up parking volumes and footfall in the city centre. It has also begun a programme of car park upgrades in 2009 with major enhancement schemes at Hare lane South and Eastgate Rooftop. Further upgrades will be designed and programmed.
The regeneration programme may affect some of the Council‟s car parks. Ladybellegate Street car park is likely to be required to create a public square as part of the Blackfriars master plan proposals. The Blackfriars regeneration may also have implications (upgrading or even replacing), Longsmith Street multi storey car park. The regeneration programme will clearly change parking patterns and volumes in the central area and the car park assets will need to be managed accordingly.
17 The Council may consider acquiring new car parks should opportunities arise to either:
add to current provision, or, change the use of a current site if the car park is underperforming or no longer appropriate, or has the potential better to fulfil Council aims and objectives.
Asset Management Priorities
Managing the car parks as a business entity to maximise usage. Programme of environmental upgrades to car parks. Evolving the car park assets in line with the wider regeneration programme.
18 4.7 Community Buildings
Assets: 15 Sports Clubs 2 Community Buildings 3 Scout / Cadet Buildings 6 pavilions / Changing Rooms
Corporate Key Aims: strong and cohesive communities.
Discussion The Council is committed to maintaining its wide portfolio of community buildings to facilitate sports, recreation, social and community based events throughout the city. Our top asset management priorities are to ensure fitness for purpose, maximum community benefits and the best governance arrangements. Often, there is no benefit to the Council in retaining some of these assets, and the best future for the property would be secured by a transfer of the asset to a community group, often the existing tenant. The Council will give consideration to community asset transfers in appropriate cases.
This can help to strengthen and empower communities and work effectively with community groups. There can be clear benefits of local groups owning or managing public assets, for example:
Bringing people together Enhancing the local environment and bringing assets into more productive use. Delivering more responsive community services Giving residents a bigger stake.
The transfer of assets can be done on any of the bases set out below:
Licence Short term lease Long term lease Freehold
Each needs to be judged on its merits dependent on the asset concerned, the desired outcome and the future potential of the site it occupies.
Asset Management Priorities
Condition surveys and fitness for purpose. Exploring scope for community asset transfers in order to bring about community aspirations. To ensure that the Council’s asset values, now and in the future, are not prejudiced.
19 4.8 Markets
Assets: Eastgate Indoor Market Hempsted Meadows Outdoor Market
Corporate Key Aims: a thriving 21st century city; putting Gloucester on the map.
Discussion Gloucester has a very long markets heritage and enjoys a markets charter granted by King Edward I in 1302, which enables it to control all markets within six and two thirds miles of Gloucester cross. That tradition continues today with the City Council providing a range of successful markets which contribute to the vibrancy and vitality of the city and help to put the city on the map.
The indoor market at Eastgate is a purpose built market hall constructed in the late 1960s. It is a rather tired looking building but remains functional. In recent years there has been commercial interest in redevelopment of this site to expand the adjacent shopping centre and provide a smaller new market hall. This proposal is now unlikely to proceed in the foreseeable future. The market has been gaining strength and the number of vacant stalls has greatly reduced as shoppers look for greater value for money.
The Council has invested heavily in a new outdoor markets site at Hempsted Meadows. This £2million investment has provided a top quality facility in an accessible location. It commenced trading in July 2008 and successfully hosts popular markets on Wednesdays and Sundays. A Saturday market proved unsuccessful due primarily to another market being held in the city centre.
Asset Management Priorities
Indoor Eastgate Market
Short term (to 2012) – cosmetic upgrades and improved management and marketing to maximise occupancy and trade. Medium Term – undertake options appraisal (2010) for the future of the market hall and the best solution for future indoor market provision.
Outdoor Hempsted Meadows Market
Undertake a review of outdoor market provision including the merits of contractor and direct service delivery. Expand the market operations to increase revenue. Expand the range of uses and market the site as an outdoor venue for shows, sales and events.
20 4.9 Historic Monuments
Assets: 39 Monuments
Corporate Key Aims: Putting Gloucester on the map, strong and cohesive communities; a thriving 21st century city; top performing organisation.
Discussion Over the years the Council has found itself looking after a diverse collection of heritage assets. In a number of cases these involved very significant heritage assets that had little or no commercial value and no other body willing to look after them. Gloucester‟s heritage is one of its most valuable assets, which has huge potential for further expanding the tourist market and for putting the city on the map.
The monuments portfolio is wide ranging and includes statues, war memorials, roman mosaic, an ancient well, boundary markers, the remains of the priory of St. Oswald, a church tower and the Eastgate Chamber an excavated site in a central shopping street showing roman and medieval remains.
The Council has worked hard to manage its monument portfolio. One of the most significant was the Grade 1 listed Llanthony Secunda Priory which has now been transferred (in 2007) to a charitable trust whose sole purpose is its restoration and reuse. St Michael‟s tower has also been transferred through the granting of a lease to the local Civic Trust which has enabled a successful £200k heritage lottery funded restoration project to be delivered (2009).
The Council has undertaken condition surveys of all of its monuments. Most are in generally good with a minority requiring attention and repair. In 2009 the Council allocated a sum of £40k to fund a programme of works to repair and maintain the monuments for the longer term. The Council is also exploring grant sources and where, appropriate community asset transfer.
Eastgate Chamber is one of the Council‟s most prominent and important monuments. This fascinating archaeological excavation is poorly displayed and does not currently fulfil its potential role in terms of telling the city‟s history and putting the city on the map. A £200k redisplay project is currently being progressed which will transform this monument and create a top class heritage attraction in the heart of the city centre. Asset Management Priorities Implementing the Eastgate Chamber redisplay project. Developing an historic monuments management plan. Identifying and accessing grant sources. Options appraisal for future management including asset transfer in appropriate cases.
21 4.10 Allotments
Assets: 11 allotments sites across the city
Corporate Key Aims: Strong and cohesive communities; Putting Gloucester on the Map.
Discussion The Council is a statutory provider of allotments and provides quality plots for Gloucester residents to enjoy growing their own food. The Council recognises the significant value of allotments in building stronger local communities. Allotments have played a key role in Gloucester‟s recognition as a green city most notably through our succession of Gold awards in the Heart of England in Bloom awards.
Our allotments have become increasingly popular in recent years and most of our sites have waiting lists. Challenges arise from limited facilities, parking, fencing at many sites and a lack of overall strategic management. Our intention is to develop and implement a medium term allotment strategy to address these issues and enhance our allotment assets. This will include empowering local allotment holder groups to take over the management and funding of their site.
We will consider carefully the future of derelict or hard to let sites and if any are found to be genuinely redundant we will look at alternative land uses and / or disposal. A case would have to be made for receipts from any such disposal to be reinvested in allotments elsewhere in the city.
Asset Management Priorities
To develop and implement an allotment strategy to maximise use, facilities and local management through allotment holders groups where appropriate. To explore issues and options around redundant / hard to let plots.
22 4.11 Crematorium and Cemeteries
Assets: Coney Hill Cemetery and Crematorium Tredworth Road Cemetery and Chapel
Corporate Key Aims: Strong and cohesive communities; top performing organisation.
Discussion The Cemeteries and Crematorium Service operates from Coney Hill Cemetery and provides a service for cremation and burial. It manages and maintains this cemetery and also the older cemetery at Tredworth Road.
The Old Cemetery located in Tredworth Road dates back to 1857. The chapel in the grounds is a listed building, and has recently undergone repairs including restoring the roof:
The Coney Hill Cemetery dates from 1939 and cremation facilities were introduced in 1953. The cemetery has been extended with the creation of the Millennium section in 2001, with separate sections for the Muslim and Chinese communities, Roman Catholics and members of the Church of England as well as a children‟s plot and General (non-denominational) ground. A Woodland Burial site for „green burials‟ has also been created.
In total the Service is responsible for the maintenance and administration of up to 50,000 grave spaces.
The sites and buildings are maintained to a high standard and are in very good condition. The cremators are very heavy users of energy.
Gloucester City Council is one of the most respected providers of end of life services in the country. We are committed to providing the very best services to all communities in the difficult time of bereavement. To support this our asset management approach will focus on upgrading the facilities and adding new services such as refreshment facilities for mourners. There is a particular requirement to upgrade the cremators to comply with national requirements in respect of mercury emissions and a scheme is currently being progressed.
Asset Management Priorities
Investment in upgrades of cremators. Upgrading visitor facilities. Energy use reduction.
23 4.12 Investment Property
Assets: Kings Walk (Landlord) Eastgate Shopping Centre (Landlord) Over 40 commercial premises (primarily shops in suburban locations)
Corporate Key Aims: top performing organisation; strong and cohesive communities
Discussion The Council holds a range of investment property primarily with retail occupiers. Income driven investment property includes major assets such as Kings Walk and The Mall. Both produce significant rental income from the shopping centre tenants (Aviva and The Mall respectively).
Both schemes occupy strategic sites in the city centre. The Council regards the two shopping centres as a core investment in the future of the city and intends to hold these assets for the long term. The healthy investment returns assist the Council in delivering frontline services and keeping council tax low. They also demonstrate the Council‟s absolute commitment to the health and long term success of the city centre and enable it to maintain long term strategic control.
The King‟s Walk centre lies within the wider “King‟s Quarter” area which is being progressed for a major regeneration scheme which will strengthen the city‟s shopping offer (see section 4.13).
The Council is currently working in partnership with others in bringing forward the Kings Quarter re-development, and, despite cuts in RDA funding, work will continue on the proposed Blackfriars scheme albeit on a smaller scale.
In addition, the Council owns secondary shops across the city, typically on housing estates. Whilst they are treated on a commercial basis, the Council has managed this stock to ensure that the mix of uses and occupancy levels contribute to local communities as a neighbourhood facility. This approach plays a major role in building strong and cohesive communities and will be maintained.
Asset Management Priorities
Hold investments in The Mall and King’s Walk shopping centres. Actively manage the portfolio of suburban commercial premises on a commercial basis with an emphasis on maintaining valuable neighbourhood facilities.
24 4.13 King’s Quarter
Assets: Kings Walk (Landlord) – See section 4.12 above Gloucester Bus Station Former Golden Egg Building (Landlord) King‟s Square Grosvenor House (landlord) Oxebode (landlord of retail properties on south side)
Corporate Key Aims: Putting Gloucester on the map, strong and cohesive communities; a thriving 21st century city; top performing organisation.
Discussion The King‟s Quarter is a major regeneration scheme in Gloucester city centre. It has been identified over the years as the very best strategic site to significantly expand the city‟s shopping offer and meet the substantial unmet demand that currently leaks out of the city to other destinations. Empirical research evidence has provided a compelling basis for this opportunity.
King‟s Quarter is one of the Urban Regeneration Company‟s priority sites and its delivery is a very high priority for the City Council. The Council is pursuing an OJEU procurement to select a developer by January 2010. The minimum requirements include a mixed use scheme providing at least 250,000 of new retail space, a revenue stream to the Council, a new bus station facility, parking and public toilets.
It is very much about delivering step change in the city centre‟s performance and continuing its upward trend in the retail rankings. The Council intends to use its land assets to facilitate this regeneration scheme for the wider benefit of the city.
Asset Management Priorities
Delivery of King’s Quarter regeneration scheme. Maintenance of the Council’s income stream while the development is being planned and implemented. Ensure any opportunity purchases within the King’s Quarter area are taken in advance of any CPO procedure.
25 4.14 St. Oswald’s Park Development Land
Assets: 5 acres of development land Long stay car park Retail Park (landlord) Tesco site (landlord)
Corporate Key Aims: Putting Gloucester on the map, strong and cohesive communities; a thriving 21st century city; top performing organisation.
Discussion St Oswald‟s Park is an excellent example of how the Council has used its land assets to deliver a major mixed use regeneration scheme on the edge of the city centre. This 55 acre former landfill site was previously used as cattle market, abattoir and range of low-grade uses and buildings.
The site has been transformed in phases through the development of Tescos in the 1990s and more latterly the creation of a top class retail park. Currently underway (2009) are the housing phases, which include a range of affordable homes and the innovative extra care village.
The Council retains a landlord interest in the Tesco and retail park site and owns two sites that may be considered for development at the appropriate time.
The first relates to about 5 acres of land in the western corner of the site. The Council had intended to dispose of this site for market and social housing but the downturn in that sector and consequent plummeting land values have ruled out that for the time being.
The second site relates to a long stay car park that was formerly rented by the County Council for its park and ride operations. As an interim use the City Council has retained use of this land for long stay car parking. The future options for this land need to be appraised.
Asset Management Priorities
Options appraisal for residual land holdings. Review the benefit of the Council holding the freehold of the retail park.
26 4.15 Strategic Landholdings
Assets: Gloucestershire Airport, Staverton - 170 acres of land (being a 50% share with Cheltenham Borough Council) Parton Farm, Churchdown - 68 acres of land
Corporate Key Aims: No direct links at present time.
Discussion The Council owns significant landholdings at Gloucestershire Airport and Parton Farm. These landholdings are outside of the city‟s administrative area and lie within Tewkesbury B.C.
Although airport and farming businesses do not have close links with the Council‟s strategic priorities the landholding is strategically placed on the edge of the urban area and may in the longer term be seen as a potential area for a sustainable urban extension. The Council‟s asset management approach is to hold this land for the longer term and allow existing uses to prevail for the time being.
The Airport company is currently seeking to progress a runway safety project which would necessitate use of part of the Parton Farm land. The Council is prepared to facilitate this provided its long term strategic position is protected i.e. there will not be a freehold land disposal.
Asset Management Priorities
Holding these strategic assets for the longer term and ensure values are maintained or enhanced. Considering options for future longer term land use / development in context of strategic planning policies.
27 4.16 Toilets
Assets: Ten public conveniences of varying quality throughout the City.
Corporate Key Aims: A thriving 21st Century City; Top performing organisation
Discussion The provision of good, clean, well-located public conveniences is a major part of the regeneration of the City. It is part of the process of changing perceptions, and, like car parking, can play its part in the retail and tourist success of the City.
The Council has a range of W.C. facilities spread throughout the city. The majority are located in the city centre and are of varying quality and utility, ranging from high quality new facilities at Westgate car/coach park to aged restricted facilities at St. Johns Lane. There are also facilities in suburban locations and at Robinswood Hill Country Park.
Our priority is to provide quality facilities in the right locations to serve the areas of highest need to ensure that Gloucester is a welcoming destination for shoppers, visitors and tourists. This priority leads to an inevitable focus on the city centre, rationalisation and improvement and the delivery of new facilities through regeneration schemes, most notably at Kings Quarter.
Asset Management Priorities
To undertake a citywide strategic review of W.C. provision to define future investment priorities value for money and options for provision. To ensure that the Kings Quarter redevelopment includes an appropriate scale and quality of provision.
28 4.17 The Depot, Eastern Avenue
Assets: Depot comprising site of approx 7 acres with mix of industrial, office and residential buildings.
Corporate Key Aims: Top performing organisation; A Thriving 21st Century City; Putting Gloucester on the Map; Strong and Cohesive Communities.
Discussion The Council‟s Eastern Avenue Depot is a critically important asset in delivering streetcare services which include refuse collection, recycling, street cleansing and grounds maintenance. These are key components of building a better Gloucester. It is a fact that the Depot had not been invested in over many years. In tandem with a new streetcare contract (Enterprise) the Council embarked on a major rebuild and refurbishment to create a modern fit for purpose depot with the capacity to delivery substantially increased waste recycling rates.
There is an area of surplus land (not required for streetcare services) fronting Chase Lane and the options for the future of this area will be assessed.
Asset Management Priorities
Complete the implementation of the Depot redevelopment project. Review the options for the Chase Lane land in terms of sale/lease/use.
29 5.0 ACQUISITIONS AND DISPOSALS
5.1 The Council‟s asset portfolio is extremely diverse. To remain healthy, relevant and efficient it is essential that the portfolio is dynamic. That necessitates disposal and acquisition.
5.2 The Council‟s approach to buying and selling assets is a simple one.
Disposals
5.3 The portfolio will be reviewed annually at the time of each Asset Revaluation to identify candidates for disposal. As a general rule the Council will consider disposal of assets that do not support core service objectives or that fail to make adequate returns on investment, either now or into the future. Where disposal is pursued the Council will seek to achieve the highest market value, unless there are overriding and compelling community interest benefits that might justify an exception. For example, before a property is disposed of, the Council will consider whether it could be re-used by another service within the Council, or possibly by another public body.
5.4 Any disposal programme should not rule out windfall disposal decisions that can arise through tenant changes, lease expiry or an approach from a special purchaser.
5.5 The Council will not usually dispose of assets in a depressed market and will not dispose of assets that it expects, in the long term, to appreciate considerably in value.
Acquisitions
5.6 Similarly, acquisitions may be considered where they support core service objectives and / or deliver good investment returns.
5.7 They will only be entertained on the following basis:
They represent an opportunity for a strategic acquisition They represent good current or potential value, either on their own or when married to an existing City Council land holding. They assist in the Council fulfilling its corporate aims They assist in service delivery
5.8 This is a short chapter in this strategy. Our acquisitions and disposals approach is simple and fully connected to corporate strategy.
30 6.0 CLIMATE CHANGE
6.1 It is important for this Asset Management Strategy to join up with other elements of Council policy, notably Climate Change and energy efficiency. The following is an extract from the Council‟s Climate Change policy.
Climate Change Policy Statement
Gloucester City Council will work in managing its estate, as a service provider and in a community leadership role to manage the activities within the city that contribute towards climate change. It will also prepare and put in place measures to reduce the harmful effects of climate change to enable a process of adaptation to occur over time.
6.2 The Council‟s operational property is a significant user of energy. The Docks headquarters, the Crematorium and GL1 are heavy users of energy. One of the first tasks to be carried out under the asset strategy is to review how we occupy the headquarters space and our energy use will form one of the main parts of that review.
6.3 The Asset Management Group will receive regular reports from the Energy Policy Steering Group, which will be responsible for the detail of how our energy use is managed and monitored. Under Section 4.2, this document has already referred to the use of sustainable energy sources to power the Docks headquarters, and these are the kind of initiatives that will be pursued.
Asset Management Priorities
To ensure the Council’s energy strategy is embedded in the way we manage our property. To review how we operate within the Docks headquarters. To demonstrate good practice and stewardship through the way that it manages its own estate and assets and as a service provider.
31 7.0 PLANNED MAINTENANCE
7.1 The City Council will ensure that its property is maintained as fit for purpose. There will be future obligations, and some that have not been met in the past. All of these need to be clarified, properly planned and resourced.
7.2 In the past there have been gaps in the approach to planned maintenance resulting in unforeseen expenditure and resultant budgetary strain. This Strategy is founded upon the principles of regular surveying of asset condition and maintenance needs to inform and develop planned maintenance and improvement programmes. This is particularly important on our major assets such as GL1 and Oxstalls Tennis Centre where asset components such as swimming pools and all weather pitches have high capital costs.
7.3 As part of this, an area of weakness that needs to be addressed is the creation of sinking funds in order to cover future obligations. Work will begin on quantifying the extent of future responsibilities; identifying any backlog of work and preparing a planned maintenance programme.
Key Actions
Draw up planned maintenance programme. Set up sinking fund(s) accordingly.
32 8.0 GOVERNANCE, PERFORMANCE AND MONITORING
8.1 This asset management strategy is a living document. For its content to have meaning and relevance it needs the right skills, resources and scrutiny behind it.
Political Governance
8.2 Given the top priority of asset management this responsibility sits within the Leader‟s portfolio. The Leader and Cabinet receive regular updates on progress in delivering this strategy including an annual review.
Officer Governance
8.3 A major restructuring of the Council in 2008 / 09 has provided a much stronger basis for effective asset management. Philip Staddon, the Council‟s Corporate Director of Regeneration now fulfils the role of Corporate Property Officer.
8.4 The newly formed Regeneration Directorate includes all of the key skills and services to enable a joined up approach to asset management. It includes a new Strategic Property, Estates and Valuation service. The service manager, Chris Mallard, and his team deal with the day to day operational issues of running our complex property portfolio. This includes arranging repairs, maintenance, renewing leases, carrying out rent reviews, gathering and maintaining data on the portfolio through to high level strategic asset management planning on major holdings. The team structure is set out at Appendix 2.
8.5 The Directorate also includes facilities management, a projects and maintenance service, planning and building control. It further extends to include many of the major asset users such as the museums, Guildhall and markets and as well services which have a strong link to specific assets such as the housing strategy and heritage services.
8.6 To drive forward the improvements and initiatives set out in this strategy the Corporate Director of Regeneration chairs a monthly meeting of the Asset Management Steering Group. This group consists of a number of disciplines at manager level and is the forum for reviewing property-related matters and providing strategic oversight of the property asset portfolio. The terms of reference and membership of the group are included in Appendix 3.
8.7 Reporting to this steering group are a range of specialist sub-groups tasked with specific property issues such as Statutory Testing and Energy.
Performance and Monitoring
8.8 One of the key early actions of this strategy will be to establish clear and meaningful performance indicators to enable us to judge the performance of our assets. In some areas such as the housing stock and energy consumption these are well defined and established but other areas are less well evidenced. The aim is not to measure everything, but to capture elements of performance in as few high level measures as possible. Clear simple signals of performance such as gross property costs of the operational
33 estate as a percentage of the gross revenue budget; lifetime costs; occupational density; market comparisons etc.
8.9 The performance measures should generally be focused on some or all of the following:
Cost and cost control Space use Property service levels Suitability and workplace productivity Environmental sustainability Risk management Community outcomes (e.g. contributing to the creation of sustainable communities)
8.10 Although all the above are important areas, the key question must always be “How will the data be used in management terms?” There is little point in collecting data for its own sake.
Key Actions
Developing a set of meaningful performance indicators. Annual progress report to Cabinet on Asset Management Strategy.
34 9.0 SUMMARY AND CONCLUSIONS
9.1 Gloucester City Council has a significant and diverse portfolio of assets.
9.2 Overall the portfolio has many strengths. Its office accommodation is solid, paid for and much less costly than market alternatives. Its housing stock is well on the way to reaching the Decent Homes standard through a £40m investment programme. Its two leisure complexes are very new and fit for purpose. Its cultural buildings are in good order and are being invested in through the Heritage Lottery Fund. The Council also benefits from having some strong revenue generating investments and sound parking and markets businesses.
9.3 However, there are weaknesses and substantial further room for improvement. That is what this strategy is all about. It tells the story of what we own, the contribution assets make to delivering corporate key aims and service objectives and what we are going to do to improve asset performance. One of the most significant areas of focus will be the Council‟s office accommodation, which, whilst superficially inexpensive, is far too big for a modern council with less than 500 employees. There is huge scope for rationalisation, subletting and sharing space with partners to provide better and more joined up services at a lower cost to the tax payer.
9.4 This strategy provides a joined up approach to managing and developing our valuable assets to ensure that we will deliver the very best outcomes for Gloucester.
35 APPENDICES
APPENDIX 1 – Team Structure
APPENDIX 2 – Terms of reference and membership of the Asset Management Group
APPENDIX 3 – Asset Action Plan 2010 - 2015
36 Appendix 1 Property Team – Structure
Chris Mallard Strategic Property Services Manager
Karen Hopkins Terrier Team Admin Officer Terrier Officers part time Belinda Carter Kim Liggett - (2 year temp contract)
Vacant Senior Surveyor and Valuer Funding a consultant valuer - Philip Ardley
Julia Slee Vacant Surveyor and Valuer Surveyor and Valuer
Rob Jenkins Junior Surveyor and Valuer 2 year temp contract
37 APPENDIX 2
Asset Management Group
Terms of Reference
• Oversee the implementation of the Asset Management Plan.
• Identify property needs for future service delivery and approve the acquisition of them either freehold or leasehold to meet the long terms needs of the Council.
• Identify surplus land or property and manage the disposal programme to ensure capital is released to support The Capital Programme.
• Examine all capital project bids, prior to consideration by GLT
• Instigate property reviews on a geographical, property type basis, including investigations into suitability and sufficiency, as required.
• Report to GLT annually on performance against the Asset Management Plan.
• Promote the Energy Strategy within the Asset Management Plan.
Proposed membership:
Corporate Director of Regeneration Corporate Property Accountancy Planning Building Design Group Manager – Facilities and Support Services
Other service managers as shall be required to attend from time to time.
CM 18th March 2009
38 APPENDIX 3
Asset Action Plan 2010 – 15
Category Start Completion
1. Housing Stock 2006 Ongoing
Delivering the Decent Homes Programme by 2011 (GCH) Undertake further future management options appraisal in 2011 Adapting the social housing stock to meet changing demand Improving energy efficiency throughout the stock (GCH) Identifying opportunities for increasing supply (infill sites etc)
2. Office accommodation Sept 2009 April 2011
Developing a detailed Accommodation Plan, embracing potential opportunities for sharing space with partners. Looking at alternative locations for service delivery e.g. city centre shop Improving energy efficiency and progressing local renewable energy generation on council land.
3. Cultural and tourism service buildings
Maintaining and evolving the Aug 09 onwards Guildhall to enable it to continue to flourish as a successful venue. Implementing the Heritage Lottery 2009 2011 Fund upgrading of the Folk and City Museums and ensuring the buildings continue to display Gloucester’s history to its best advantage. Options appraisal for TIC post 2012, Jan 2010 April 2010 including planning our exit strategy from this building. Improving energy efficiency. Jan 2010 onwards
39 4. Major sports and recreation buildings
Maintaining GL1 and Oxstalls Tennis Ongoing Centre to ensure that they remain fit for purpose. Managing energy consumption to Ongoing optimum levels Developing the hub concept at Jan 2010 onwards Oxstalls / Plock Court
5. Parks and Open spaces
To develop a strategic approach to Mar 2010 Sept 2010 managing the open space assets. Adjusting the open space portfolio Ongoing where appropriate. Maximising S.106 funds for open Ongoing space investment. Introducing robust monitoring and Ongoing management of S106 funds linked to open space strategy.
6. Car Parks
Managing the car parks as a business Ongoing entity to maximise usage. Review of underperforming car parks April 2010 Sept 2010 Programme of environmental upgrades Jan 2010 Jan 2012 to car parks. Evolving the car park assets in line with Ongoing 2016 the wider regeneration programme.
7. Community buildings
Condition surveys and fitness for Apr 2010 Mar 2011 purpose. Exploring scope for community asset Apr 2010 Sept 2010 transfers in order to bring about draw up programme community aspirations. thereafter To ensure that the Council’s asset, Ongoing values, now and in the future, are not prejudiced.
8. Markets
Indoor Eastgate Market
Short term (to 2012) – cosmetic Jan 2010 Apr 2012 upgrades and improved management and marketing to maximise occupancy and trade.
40 Medium Term – undertake options Apr 2010 June 2010 appraisal (2010) for the future of the market hall and the best solution for future indoor market provision.
Outdoor Hempsted Meadows Market
Undertake a review of outdoor market Jan 2010 Mar 2010 provision including the merits of contractor and direct service delivery. Expand the market operations to Ongoing increase revenue. Expand the range of uses and market Ongoing the site as an outdoor venue for shows, sales and events.
9. Historic Monuments
Implementing the Eastgate Chamber Legal work complete redisplay project by Nov 2009 Physical works start Aug 2010 ?
Developing an historic monuments Currently underway management plan. Identifying and accessing grant sources Ongoing Options appraisal for future June 2010 Sept 2010 management including asset transfer in appropriate cases
10. Allotments
To develop and implement an allotment April 2010 Sept 2010 strategy to maximise use, facilities and local management. To explore issues and options around Jan 2010 June 2010 redundant / hard to let plots.
11. Crematorium and Cemeteries
Investment in upgrades of cremators. To be confirmed Upgrading visitor facilities. Energy use reduction Ongoing
12. Investment property
Hold investments in The Mall and Ongoing King’s Walk shopping centres Actively manage the portfolio of Ongoing as current suburban commercial premises on a commercial basis with an emphasis on maintaining valuable neighbourhood facilities.
41 13. King’s Quarter
Delivery of King’s Quarter Jan 2010 Mar 2015 regeneration scheme Maintenance of the Council’s income Ongoing through period stream while the development is being planned and implemented. Ensure any opportunity purchases Ongoing through period within the King’s Quarter area are taken in advance of any CPO procedure.
14. St Oswalds park Development land
Options appraisal for residual Jan 2010 May 2010 land holdings.
Review the benefit of the Council “ “ holding the freehold of the retail park.
15. Strategic Landholdings
Holding these strategic assets for the Ongoing as current longer term and ensure values are maintained or enhanced. Considering options for future longer term land use / development in context of strategic planning policies
16. Climate change
To ensure the Council’s energy Ongoing strategy is embedded in the way we manage our property
To review how we operate within the Sept 2009 Apr 2011 Docks headquarters
To demonstrate good practice and Ongoing stewardship through the way that it manages its own estate and assets, and as a service provider.
17. Performance and Monitoring
Developing a set of meaningful Jan 2010 May 2010 performance indicators
Annual progress report to Cabinet Annually April each year. on Asset Management Strategy.
42