Briefing Note: Asset Management
The Corporate Services Overview & Scrutiny Committee included the issue of Asset
Management onto its Forward Work Programme for 2005/06 as part of its policy review
and performance monitoring function.
Members of the Committee have asked that, at their meeting on 23rd April 2006, they be
provided with answers to questions posed by them and these are attached below.
Q. What are the processes by which the Council's aims and objectives are
translated into Asset aims and objectives?
The Asset Management Working Group (AMWG).
The Asset Management Team reports to the AMWG which comprises
The Executive Director - Resources (Chair)
The Cabinet Member for Corporate Resources
Assistant Directors from Education, Leisure & Community Services, Environmental
and Planning Services and Personal Services,
A/D Community Regeneration and Strategic Development
A/D, Information Technology
A/D, Finance or the Chief Accountant
Head of Business Effectiveness & Efficiency.
The AMWG meets every 6 weeks and reviews the AM Team's action plan and agrees its
future programmes. The AMWG assures a high level, strategic and Corporate direction
to the Team's work
In 2004 the Council approved its first Asset Management Plan. This set out works falling
into 2 main areas. These were
preparing systems and processes to support Asset Management, including
establishing the Corporate Property Database.
carrying out reviews of services and properties to ensure the best use of them
having regard to service delivery requirements.
The Database is now established and the Committee received a demonstration of it in
August 2005. The present task is to ensure that it is properly populated and that data
can be readily accessed to assist property reviews. New budget provision has been
made and recruitment for a modest enlargement of the AM Team is underway.
Service delivery plans should reflect Corporate aims, objectives and priorities and thus
provide a platform for the AMP process.
In turn Asset Management feeds into capital and revenue planning and monitoring
processes. This is most developed at present in the Capital Planning process which
involves scoring of proposals against corporate objectives affording short and medium
One of the tools of the AMP process is reviews of service property or property in
geographical areas. Service reviews and similar works undertaken to date include
Office accommodation - a detailed report and recommendations will be submitted to
AMWG on 3rd May 2006.
Depots - a masterplanning process is being concluded for an area including
Waterton Depot and will allow the review to be concluded in the near future.
Adult day care service
Ysgol Bryn Castell
The AM Team works to deliver the aims, amongst others, of
The Corporate Property Strategy
The Asset Management Plan
The Corporate Improvement Plan
Q. What work has been done to ensure that Asset Planning within the Authority is
an inclusive process involving the Corporate centre, Directorates, Partners and
A As described above, the AMWG is made up of key stakeholders and the various
review groups comprise members of the relevant services, who are in touch with their
key stakeholders, as well as officers from services such as Finance, Planning and
Regeneration which will impart a wider view
Q. How is a common understanding of property issues intended to be developed
throughout the Authority? For example, at the previous meeting of the Committee
concern was raised over Directorate assets that are no longer used. Member's
queried as to whether such assets are understood within Directorates to be
Corporately owned or whether there exists resistance, lack of understanding or
inconsistant practice in the way in which such assets are consequently used or
The AMP process helps to identify underused/ surplus space through property review,
this may come about as part of a redevelopment/ capital project or merely no-longer
required for service provision.
If the surplus property or potential surplus property has come about as part of a
redevelopment/ capital project the Capital Planning Process identifies that, in general,
any Capital Receipts are viewed as a Corporate Resource. However where a proposal
is put forward which is intrinsically linked to the new scheme the receipt may be
earmarked for that scheme – providing that the scheme has been through the proper
approval process and it has been agreed that it can be included in the Capital
Programme. This includes receipts emanating from a service rationalisation
programme. As a rule of thumb receipts from the disposal of surplus assets which are
not linked to a particular scheme are treated as a Corporate Resource.
The Corporate Property Strategy which the Council adopted in 1997 incorporates the
principles implied in the question. It has lost some prominence and is therefore being
revised and a draft will be submitted to AMWG in May or June 2006.
It will include a "surplus property protocol", intended to be a simple process that
circulates details to all Directorates of all surplus space in order that each may consider
it in relation to its long term strategic objectives. If no new use can be established then
the property should be disposed of.
Q. How do current approaches to strategic Asset Management relate to other key
resources within the Authority? For example, what is the relationship of Asset
Management with Finance, Human Resources and Information Technology in the
short, medium and long term?
The Asset Management Process, rather than just seeking space standards aims to
reduce the amount of space required by creating modern work environments that
improve efficiency, exploit IT and encourage more flexible working, sharing of facilities,
resources and information.
Quite obviously the amount of space required is not just a property matter, it also
depends upon the work culture of BCBC and a realisation that technology will probably
be the major influence on work place trends over the next ten years
As part of the AMP process the inter-related accommodation issues are taken into
account. Currently this is largely through the Asset Management Working group and
Capital planning process.
In the medium to long term It is intended that Asset Management and in particular the
accommodation strategy will be developed in line with emerging personnel and IT
strategies and the Council’s Work-life Balance strategy. It is recognised that a
collaborative effort is vital and to that end the Property Manager and A/D IS and ICT
have agreed to complete work on the Office Accommodation Strategy together.
Q. How is it intended that the Asset Management Plan be built into annual
business processes for assets co-ordinated with capital and revenue planning?
The Capital Planning Process, approved by Council, draws together Corporate aims and
objectives and service needs. The Capital Planning Group includes the Property
Manager and through the emerging and progressively more detailed data for each
property it is possible to ensure that investment is made according to strategic
requirements but alos recognising factors such as the use and repair of a property .
As the process develops property reviews will bring forward proposals/ options for the
capital planning process
Service Asset Management Plans (SAMPs)
A small number of Welsh Authorities have prepared SAMPs. These are mini AMPs and
follow the service business plan. They require little extra work, but add an asset
dimension to the business plan and
identify a services needs
identify its portfolio
and thus define a gap.
The gap can and should be used to influence both revenue and capital spend. The
SAMP process is identified below:
Service Plan & Identified
analysis of internal accommodation
and external drivers need
Gap analysis and Analysis of
identification of Current Position
Q. What are the strategic links between Asset Management and the Efficiency
Agenda to ensure value for money is achieved?
The Head of Business Effectiveness & Efficiency is, as stated above, a member of the
Links are achieved through the process of AMP involving ,for example
rationalising space occupation
reducing running costs
improving energy efficiency.
Q. If the Asset Management Plan is intended to be an ongoing process, why have
no regular reports been produced relating to its progression?
Regular reports in respect of key actions are reported to the Asset Management
The 2004 Plan was updated in 2005.
The 2006 update is currently been completed to take account of
the outputs achieved to date,
the changing drivers for AMP eg
- Making The Connection,
- Lyons Review,
- Gershon Review of Public Sector Efficiency,
- The Efficiency Agenda,
- Increased Customer expectations
- Health and Safety
- Limited Resources
Key Action Areas
An Action Plan for 06/07
The AMP update 2006 / 2007 will be presented to the AMWG on 3rd May 2006 and to
CMB and the Council shortly afterwards.
Q. What are the reasons for the delay relating to the production of the Asset
Management Plan for 2005? What is the position for 2006?
Q. What have been the main recent successes achieved by current approaches to
Asset Management? What were the reasons for these successes?
Improved Property records:
- Corporate Property Data base
- Computerised Terrier
- Completed except Maesteg Upper and Heronsbridge, both to be completed by
the end of February
- Most surveys carried out in 2002 or 2003
- Most surveys exclude M&E
- Costings not included in older surveys
Depots: All completed except for M&E
Libraries: All completed except for M&E
Leisure Centres: 4 completed including M&E
Civic Offices: completed including M&E
Innovation Centre: completed including M&E
Valleys Gate Way: 16 properties completed (3 fully, remainder awaiting M&E)
A full project appraisal regime has been developed for the allocation of Capital
Resources. The process joins together the Strategic Capital requirements of the
Authority to show how Capital Investments contribute to achievements of the Council’s
Objectives. Strategy determines priorities between the Capital needs of the various
services and looks at the opportunities for cross cutting and joined up investment, linking
the Capital Planning process, Revenue Budget Planning process, Regeneration and
Asset Management Planning to ensure that the options for the most cost effective
service provision are properly considered
Financial Target Receipt Achieved Estimated Capital
2004/05 £1,220,000 £1,500,000
2005/06 £1,800,000 £ 381,500
2006/07 £7,141,000 £7,141,000
2007/08 £3,000,000 £3,000,000
A pilot study of Access Audits has been completed for thirty three of the Council’s public
buildings. Two consultancy firms carried out these audits and the information contained
in them has been analysed and a programme of works prepared for the financial year
Twelve properties have been targeted for works 06/07. The programme is been driven
forward by the Asset Management Team, reporting to the Corporate Access
Improvement Plan Steering Group.
The current Budget provision for the works 2006/7 is made up of £402,000 carried over
together with the 06/07 budget of £150,000 with a further budget for 07/08 of £150,000
PROPERTY REVIEW: YSGOL BRYN CASTELL
Changes in the requirements of a modern school, the reduction in the number of pupils
and a cessation of residential provision has left this school with unsuitable
accommodation and large areas of unutilised space. An Asset Management Review
was completed May 2005 which;
outlined the problems facing the school
detailed options available
PROPERTY REVIEW: WATERTON AND OTHER DEPOTS
A review was initiated to provide suitable depot facilities in the correct locations which
meet the needs of service providers. Whilst the condition of depots rarely directly affect
members of the public the quality of many of the services provided via the depots have a
regular and direct effect on a large percentage of the population. During the review it
was identified that questions regarding the long term future of Waterton should be fully
explored. To this end the Ewenny Masterplanning Exercise was implemented.
Day Care Service
The Capital Programme includes £3,700,000 over three years for the replacement of
Bridgend Day Care Centre and a localised Centres
Local Authorities are being encouraged to be more efficient and effective in the provision
of services and one of the ways this can be achieved is through better use of office
In 2005 the Council sought submissions for a review of BCBC office accommodation
and appointed Harmsen. The Company identified that the Council has a range of inter
related issues that need to be tackled in a co-ordinated accommodation strategy.
It made a number of recommendations relating to work place strategies including
and establishing an Accommodation Strategy incorporating standards and
- space planning and standards,
- furniture procurement,
- records management
The Report identified that BCBC current office space is not sufficient for existing staff
numbers using current working practices. Harmsen identified that Sunnyside and Civic
Offices are over occupied and generate an additional need for approximately 1,550 m2
net internal area to accommodate 140 staff (it should be noted however that 42
members of staff formerly at Sunnyside are now located at Oldcastle Offices therefore
this requirement should be reduced to 98).
Morien House and Sunnyside House were also identified as being over occupied
generating an additional need for accommodating 41 members of staff. Harmsen
identified that the outlying offices represents further issues in terms of efficiency and
quality of service provision. Harmsen identified a total of 507 staff in outlying offices
(this figure would now be 549 including Oldcastle).
The Asset Management Team has produced a report focusing on the investment
decision of the Accommodation Strategy taken on board the proposals of Harmsen with
a vision to constructing office space to deal with over crowding and get out of the
principal outlying offices and to provide fit for purpose accommodation which provides
good quality space and which allows proper service delivery, reduces sickness, delivers
efficiency, work life balance, home working, hot desking, etc.
Ian Aitken, Property Manager
18 April 2006