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Asset Management Strategy Are Attached in Appendix 1 Burnley Borough Council – Property Consultancy CONTENTS 1. FOREWORD 2. BACKGROUND AND CONTEXT 3. ASSET MANAGEMENT PLANNING IN BURNLEY 4. ORGANISATIONAL ARRANGEMENTS Terms of Reference for the CPO – Asset Management Group 5. PLANNING AND CONSULTATION Corporate Issues 6. DATA MANAGEMENT Condition Records 7. PERFORMANCE MEASUREMENT 8. PROGRAMME DEVELOPMENT 9. UNDER-USE AND DISPOSAL 10. SPENDING AND OUTPUT/OUTCOME INFORMATION 11. PROGRAMME PLAN DEVELOPMENT AND IMPLEMENTATION 12. ACTION 1. FOREWORD The Council’s Asset Management Group has made good progress in improving asset management in 2008-09 building on previous success. Despite being only a relatively small local borough council the Borough recognises the important role that good asset management plays in delivering real benefits for residents in the Borough and has committed precious time and resources in this area. As a consequence of this, as was recognised by the Audit Commission in December 2009, “the Council’s performance management in this area has significantly improved with a good range of BVPI’s and local PI’s in use to enable measurement of future performance.” The Council’s Asset Management and Capital Strategy and five year planned maintenance programme are regularly updated to ensure that they reflect and support the Council’s wider corporate priorities. In addition an Aligned Asset Management Plan has been produced in partnership with Lancashire County Council. This plus ongoing consultation with other public and private sector partners and Government bodies is aimed at ensuring that jointly we make the most effective use of all of our combined property assets and investment, thus minimising any duplication of effort, increasing net gain and reducing wasted time and money. Property Consultancy’s Service Plan links the Council’s Corporate Strategies to real delivery on the ground and consideration of the Asset Management Planning process is also built into the Corporate Service Planning Process followed by all of the Council’s Service units when formulating their individual Service Delivery Plans. Councillor Margaret Lishman. Nick Aves. Deputy Leader & Director of Resources Executive Member for Resources. Corporate Property Officer. 2. BACKGROUND Local Authority Asset Management Defining local authority asset management: 2.1 The RICS's 2008 Public Sector Asset Management Guidelines defines asset and property management as: "activity that seeks to align the asset base with the organisation's corporate goals and objectives. It ensures that the land and buildings asset base of the organisation is optimally structured in the best corporate interest of the organisation concerned." Central Government Context 2.2 Local Government is seen to be best placed to understand the needs of its citizens and the community. Recent policy initiatives, such as the 2003 Local Government Act, the 2006 Local Government White Paper, and the 2007 Local Government and Public Involvement in Health Act have moved towards creating a devolutionary framework that gives freedom and flexibility to local authorities. The Challenge for Local Government 2.3 Whilst local authorities vary enormously in the size and nature of the assets they hold, they all face similar challenges, such as improving service delivery, improving efficiency and making real savings. By prioritising asset management, removing service “silos”, working with public and private sector partners, aligning assets to service priorities and assessing whether the asset base is performing at its optimum, we are more able to make best use of our assets to meet these challenges. Given the unprecedented global and national economic problems facing us all, we need to ensure that we make best use of all of the Council resources available including property assets and seize opportunities to make a difference where they arise. Guidance from the Department for Communities and Local Government (DCLG) as to issues to be considered in an Asset Management Strategy are attached in Appendix 1. Benefits of Good Asset Management 2.4 There are many benefits to the Council, both financial and non-financial, of good asset management. The following list based on feedback from a recent study sets some of these out although it is worth recognising that at times these benefits may conflict. Good asset management can and should: • deliver better services for citizens, aligned with locally agreed priorities, and focusing investment clearly on need; • empower communities and stimulate debate; • improve the economic well-being of an area; • ensure that, once built, assets are correctly maintained; • introduce new working practices and trigger cultural organisational changes; • reduce carbon emissions and improve environmental sustainability; • increase co-location, partnership working and sharing of knowledge; • improve the accessibility of services and ensure compliance with the Disability Discrimination Act (DDA) 2005; • generate efficiency gains, capital receipts, or an income stream; and • improve the quality of the public realm. Local Authority Asset Data 2.5 In 2007, local authorities in England owned nearly £239 billion of fixed assets, which includes over £220 billion of operational assets. Almost half of these operational assets were invested in council housing stock. In addition to council housing, there are four main types of local authority operational assets: • land and buildings used to deliver a direct service to the public (e.g. schools, elderly persons' homes and public parks); • assets that support service delivery (e.g. the town hall, other administrative offices, and vehicle depots); • non-operational property (e.g. surplus property awaiting sale or commercial and industrial property); and • transport assets (e.g. highways, ports, municipal airports, bus stations, car parks and park-and ride). 2.6 The York Consulting report into local authority asset management said that the average floor space per member of staff fell by 10 per cent from 12.2 square metres person in 2000/01 to 10.9 square metres per person in 2005/06. Whilst this is encouraging, local authorities still have some way to go in rationalising office space. Local Authority Asset Management Research 2.7 In 2001, Communities and Local Government commissioned a study to look at local authorities' Capital Strategies and Asset Management Plans. The study recognised that whilst local authorities had made much progress in improving asset management, there was still some way to go and concluded that there remain significant improvements that can be made in narrowing the gap between the best and worst authorities. Burnley Town Hall 3. ASSET MANAGEMENT PLANNING IN BURNLEY 3.1 The Council aims to deploy its resources in the most effective and efficient manner possible based on its strategic needs and priorities. The Asset Management Strategy and Capital Strategy therefore set out a plan for the future, identifying how assets and capital investment can be best used to achieve these needs and priorities. 3.2 The starting point for our Asset Management Strategy is that we should know: • What we own? • How much it costs to maintain? • Whether or not we need it? • If it contributes to what we do? 3.3 To answer these questions, our Strategy has been put in place to ensure that good asset management helps to create changes to minimise opportunity costs and ensure that resources are deployed in the right places, in the correct quantities, to meet the strategic needs and priorities of Burnley. 3.4 Under the "Cabinet" system operated by the Council, each Member of the Executive is assigned a Portfolio, Responsibility for Asset Management Planning is held by the Resources Portfolio Holder, Councillor Margaret Lishman. Other Portfolio Holders, such as the Regeneration and Housing Executive Member, also have a role in informing the process. 3.5 The Council's intention in using and developing this Strategy is to identify the current position in respect of its assets and assess how well they contribute towards the achievement of corporate objectives. By ongoing review of its land and property assets, informed by service reviews and Service Plans, the aim is to identify holistic changes needed to the assets we hold. Examples of previous outputs of this process include Contact Centre, Burnley, and St. Peter's Leisure Centre where, following an assessment of current and future revenue costs and capital costs the ageing Thomson Leisure Centre was demolished and new shared facilities provided by means of an innovative Joint PFI procurement agreement with the Primary Care Trust. A more recent example is Padiham Town Hall refurbishment where vacant Council offices have been refurbished and the quality office accommodation created fully let. 3.6 A summary of the assets by category is provided in the Capital Strategy, together with valuation information. The valuation and revenue data relating to each asset group is used to help identify any over provision of assets when assessed against corporate objectives. 3.7 The Council's Corporate Objectives are: • People:– "creating opportunities and sustaining ambition"; • Performance:– "ensuring continuing improvement in all aspects of the Council's performance"; • Places:– "making the Borough a place of choice"; • Prosperity:– "promoting transformational economic change for Burnley". These priorities are reflected in the Asset Management Strategy and the Property Consultancy Service Plan 2009/10. Old Thompson Centre Site New St Peters combined Health and Leisure
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