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Property Efficiency Report

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Property Efficiency Report Property Efficiency Report This report demonstrates the Western Cape Government’s commitment to managing and improving the efficiency, effectiveness and sustainability of its property holdings. Contents FOREWORD 2 Robin Carlisle, Minister of Transport and Public Works 2 Gary Fisher, Head of Provincial Public Works 3 EXECUTIVE SUMMARY 4 CHAPTER 1: ABOUT THIS REPORT 5 The Reporting Period 5 The Size and Cost of the WCG Property Portfolio 5 The Office Portfolio 6 Management of the WCG’s Property Portfolio 6 Management Information 7 IPD Occupiers 7 Case Study 1: The WCG Building Audit 8 Case Study 2: Improving the UK Government Estate through Measurement and Benchmarking 9 Case Study 3: Benchmarking Initiatives to Improve the Management of Healthcare Facilities 10 CHAPTER 2: PERFORMANCE MEASUREMENT 11 Office Efficiency: Cost per FTE 11 Space Utilisation 12 Case Study 4: The Face of the Province Project 13 Case Study 5: Modernisation of WCG Offices in the Cape Town CBD 15 Cost per Square Metre 16 Measuring Performance in Schools 16 Case Study 6: Improving Efficiencies through Public Private Partnerships 17 CHAPTER 3: SUSTAINABILITY 18 An Introduction to Sustainability 18 Performance 19 Case Study 7: Investigating Environmental Performance in Western Cape Schools 20 Supporting Travel SMART 21 Creating an Energy Saving Culture 21 CHAPTER 4 – FORWARD LOOK 22 Performance Measurement 22 Strategic Asset Management 22 APPENDIX 23 Offices 23 Schools 23 GLOSSARY 24 Foreword Robin Carlisle, Minister of here. We will therefore no longer have a property budget that Transport and Public Works is asset rich but cash poor; rather a budget that has a better balance between asset worth and cash generation. Property is the Western Cape We have already started to make these improvements in public Government’s second most projects that have been completed recently, are underway or are expensive and valuable asset planned, including three significant public private partnership after its staff. Our portfolio of regeneration projects, a number of sustainability initiatives and buildings has a replacement the refurbishment of parts of 4 and 9 Dorp Street. However, value of more than R80 billion. when we compare the performance of our buildings to corporate We therefore have to ensure occupiers in South Africa, it is clear that there is much more that that we maximise the use we needs to be done and that we need to go further and faster in make of it, and that we manage improving our existing infrastructure and facilities in order to our buildings in the most efficient, effective and sustainable make savings that will be re-invested to benefit the community. way possible. Our use of property impacts on the services we provide, and the development of efficient and effective We will not be able to achieve this unless we can measure how workplace environments also contributes positively to staff the portfolio is performing now and how it can be improved, performance and productivity. set targets for making these improvements and by when, and monitor the progress towards making those improvements. Our property therefore needs to be the most efficient and sustainable possible and the facilities need to be the best This report sets us on the journey to do this, using data possible for the public who use them and the employees who predominantly from the office portfolio. It proves the value work in them. My ambition is to make our buildings among of property performance measurement and benchmarking, the best in the world in line with our objective to become the establishes a baseline and allows us to set improvement targets. most strategic, sustainable and effective regional government Subsequent annual reports will cover more of the portfolio in the world. I want to see asset management delivered as a providing a larger set of performance data. centre of excellence in South Africa and to see this recognised internationally. I am very proud to announce that this is the first time that any provincial government in South Africa has issued a report that My goal is to make significant savings in the cost of running the measures its property asset management performance in this way portfolio that will be re-invested in services that most benefit and which puts in place the basis for modernising that portfolio our taxpayers and citizens. Savings of 10% or more have in order to deliver significant benefits for the community. My already been achieved by some other countries including the congratulations and thanks go to Gary Fisher and his team for United Kingdom, and should be achievable if not exceeded this very important achievement. 2 Gary Fisher, Head of Provincial Equally important to realising our vision is a focus on measuring and Public Works benchmarking the cost of running our existing buildings and the way that these are being used. Inefficient use of a building is a waste of an important asset and resource. Conversely efficient, sustainable The vision I have set for Public and modernised accommodation offer the prizes of significant cost Works is, “to provide efficient and savings, a reduction in carbon footprint and productivity gains. The sustainable property solutions savings can be re-invested and significant benefits can be delivered that improve lives and build to the public who visit and use those facilities and the staff who communities.” work in them. This report, developed with the assistance of IPD and their We are delivering on this vision internationally proven methodology, is the first of its kind through our mandate as custodian undertaken by any administration in South Africa. It covers the vast of the provincial property portfolio and as implementing agent majority of the Western Cape Government’s office portfolio, and (developer) of new social and general infrastructure for the pilots five schools. It demonstrates that it is possible to measure Western Cape Government (WCG). We are set to deliver the efficient and sustainable performance of buildings and from approximately 100 new and replacement schools by 2016 on that to identify variations in performance and opportunities to behalf of the Western Cape Education Department, as well as improve. Fundamentally it is a tool that helps to inform some of completion of 1000s of scheduled maintenance projects at the key strategic property asset management issues and decisions existing schools. This will significantly accelerate our objective that we need to make and implement over the coming years. of managing a world class education property portfolio, and will contribute in no small measure to education outcomes. In the I want to see this data collection and analysis repeated every year Healthcare Sector, we are progressing 29 major capital projects and extended over time to cover the health and education property on behalf of the Health Department, that incorporate global best portfolios. To do this we have to ensure that the data is robust and practice in healthcare design and sustainable solutions. Over the accessible. I want the performance of the portfolio to be reported on every year as a fundamental component of delivering world class next three years we also have plans to modernise substantial strategic property asset management. parts of the Western Cape Government’s office portfolio, involving conversion to open plan working environments, thereby Chapter 4 of the report provides a forward look of the commitments improving space utilisation, communication and productivity. that we have made and will be implementing in order to ensure that We have also recently established a strategic projects unit to there is no let-up on the momentum of the improvements that we promote public-private partnerships to assist in the development have started. The prize on offer in terms of a modern, efficient and of key precincts in order to provide human settlement solutions, sustainable property portfolio and the substantial savings that can establish income streams to reinvest into delivery of social be made and re-invested is too great for us not to seize this initiative services and to generate economic activity. with both hands and drive it forward with maximum energy. 3 Executive Summary This report, the first of its kind produced by an admin- Average energy consumption per FTE across the WCG istration in South Africa, demonstrates the Western Cape offices stands at around 6,474 kWh/FTE, above the current Government’s commitment to managing and improving corporate office occupier performance of close to 4,300 the effectiveness of its property portfolio to enhance the kWh/FTE. Average water consumption per FTE stands at lives and well-being of every citizen. 14.6m3, again above the office benchmark average of 9,3m3. The report summarises the findings of an investigation into the efficiency and sustainability performance of a The report identifies potential sources available to the portfolio of provincial government buildings including 18 Department to realise savings. Rationalising the WCG’s offices, predominantly in the Cape Town CBD, and a pilot office accommodation by implementing the 15 m2/FTE study of 5 schools across the Province. space standard will deliver significant savings. In addition, considerable savings can be achieved through improved The report draws on baseline data collected by the sustainability performance. Better data will help target Department of Transport and Public Works (the future actions for improvement. Department) as part of an on-going audit and condition survey of the entire provincial portfolio. The data was analysed with the assistance of IPD. In order to deliver efficiencies in the medium term and realise the full potential savings, the Department is likely to The analysis indicates that on a cost per square metre basis, have to make up-front investments in its properties that will the average performance of the WCG office holdings is allow it to build and move to more efficient holdings.
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