6. summary of doncaster’s existing property …...management monitoring group at its’ july 2007...

DMBC – Corporate Asset Management Plan 2006/07-2009/10

6. Summary of Doncaster’s Existing Property Portfolio & Performance

6.1 Overview of the Land & Property PortfolioDoncaster Council has a diverse land and property asset portfolio, valued at approximately £740 million (March, 2008). The diagram beneath provides an overview of the Authority’s property assets by type.

Overall Assets

8,898,000

412,539,000

215,449,00062,785,00024,688,00017,815,000

Operational Land and Buildings

Schools

Community Assets

Non-Operational (held for investment)

Non-Operational (Surplus)

Non-Operational (Assets underconstruction)

6.2 Property Performance Indicators National Property Performance Management Initiative Performance IndicatorsIn 2006/07, Doncaster Council adopted the newly established National Property Performance Management Initiative (NaPPMI) first phase indicators. The NaPPMI indicators were consulted on widely throughout 2005, receiving endorsement from the Association of Chief Estates Surveyors (ACES), CLAW (Consortium of Local Authorities in Wales), COPROP, the Core Cities, the DFES (Department for Education and Skills), the IPF Asset Management Planning Network, the DCLG (former ODPM) and the National Best Value Benchmarking Scheme. These indicators replaced the five national property performance indicators which informed previous Asset Management Plan submissions to the ODPM in response to the requirements of the Single Capital Pot.

The indicators, as published are identified as either “local” (which authorities may wish to adopt, depending on local priorities) or “national” (which authorities are strongly advised to adopt). The Asset’s team recommended to the Asset Management Monitoring Group that all first phase indicators would provide a useful measure of Doncaster’s asset performance and therefore each one will be reported on annually.

The NaPPMI indicators collated for 2006/07 (first phase indicators) are summarised as follows:-


PPI Indicator Purpose1A % gross internal floor space in condition

catagories A-D1B Required Maintenance by cost expressed:

i) as total cost in priority levels 1-3ii) as a % in priority levels 1-3iii) overall cost per square metre GIA

1C Annual percentage change to total required maintenance figure over previous year

1D i) total spend on maintenance in previous financial year

ii) total spend on maintenance per square metre GIA

iii) Percentage split of total spend on maintenance between planned and reactive maintenance

To show the severity and extent to which maintenance problems affect the portfolio

To assist in the development of detailed information on required maintenance

To inform the development of a planned maintenance programme

To show year-on-year changes in required maintenance

To show the annual spend on repair and maintenance

2A Energy costs/consumption (gas, electricity, oil, solid fuel) – to be reported by property category in £ spend per m2 GIA and by kwh per m2 GIA

2B Water costs/ consumption - to be reported by property category in £ spend per m2 GIA and by volume m3 per m2 GIA

2C CO2 Emissions – to be reported by property category in tonnes of carbon dioxide per m2 GIA

To reduce environmental impacts of Local Authority operational property

To highlight areas of poor or mediocre energy and water efficiency/ performance and act as a catalyst for improvement

To compliment the process for ‘Energy Certificates’

To support the Local Authority’s assessment of property performance together with condition and suitability within the framework of Asset Management Planning

3A % of portfolio by GIA sq.m, for which a suitability survey has been undertaken over the last 5 years

3B Number of properties, for which a suitability survey has been undertaken over the last 5 years

To ensure that Local Authorities are undertaking suitability surveys

To enable Local Authorities to understand their asset base

To ensure that the property meets the needs of the user

To enable key decisions to be made

4A % of portfolio by GIA sq.m, for which an Access Audit has been undertaken by a competent person

4B Number of properties for which an Access Audit has been undertaken by a competent person

4C % of portfolio by GIA sq.m, for which there is an Accessibility Plan in place

4D Number of properties for which there is an Accessibility Plan in place

To monitor the progress at which Local Authorities carry out access audits

To enable key decisions to be made

NaPPMI Phase 2 IndicatorsIn November 2006, the NaPPMI published a second phase of indicators. All of the indicators in the second tranche have the status of “local” indicators. The value of the second tranche of indicators in the context of Doncaster Council’s portfolio was considered by the Asset Management Monitoring Group at its’ July 2007 meeting. It was decided by the group that


second phase indicators 5 and 6 will be reported on beyond 2007-08 (as data becomes available to support delivery of the indicators).

The second phase indicators are summarised beneath:-

PPI Indicator Purpose5A.1 a) Operational office property as a

percentage of the total portfolio and;b) Office space per head of population All calculations of space based on GIA

5A.2 Office space as a percentage of total floor space in operational office buildings using Net Office Space to NIA

5A.3 a) The number of office or operational buildings shared with other public agencies

b) The percentage of office or operational buildings shared with other public agencies

5B.1 Average office floor space per number of staff in office based teams (NIA per FTE)

5B.2 Average floor space per work station (not FTE) NIA based.

5B.3 Annual property cost per workstation (not FTE)

To identify the intensity of use of space

To assist council’s to identify and minimise assets which are surplus or not in use

To minimise costs of assets (or avoidance of costs from acquiring more space) through intensification of use

To measure the level of usage

6A Gross property costs of the operational estate as a % of the gross revenue budget

6B Gross property costs per m2 GIA by CIPFA Categories/Types

To relate the total cost of operating property assets to the revenue budget

To build up profiles over time Through the background

information collected it will assist in highlighting buildings that are expensive to run

7A Time Predictability, Design : The percentage of projects where the actual time between Commit to Design and Commit to Construct is within, or not more than 5% above, the time predicted at Commit to Design.

7B Time Predictability, Post-Contract : The percentage of projects where the actual time between Commit to Construct and Available for Use is within, or not more than 5% above, the time predicted at Commit to Construct.

7C Cost Predictability, Design : The percentage of projects where the actual cost at Commit to Construct is within +/- 5% of the cost predicted at Commit to Design.

7D Cost Predictability, Post-Contract : The percentage of projects where the actual cost at Available for Use is within +/- 5% of the cost predicted at Commit to Construct.

For these indicators, the former “Commit to Invest” stage has been replaced by two stages – “Commit to Prepare Proposals” and “Commit to Design”. The former National Indicators (A, B, C and D) relate to the period during which management of time and cost is more directly under the control of the project team. Authorities may wish to adopt the new Local Indicators to measure predictability for the whole process from “Commit to Prepare Proposals”.

The principal stages have been mapped against the RIBA Plan of Work and the OGC Gateway Process to bring clarity and consistency to the application of this measure.


Property Performance ReportingA summary of the Authority’s annual property performance data for 2008/09 is included within the Corporate Asset Management Plan Update Report to Cabinet (February 2009)

Action Point 5Collect, monitor, benchmark and report property performance data using the new NaPPMi phase 1 indicators. Report to Cabinet during Q3/4 2007/08 and annually thereafter.

6.3 Property Performance TargetsOnce baseline data for property performance in line with the NaPPMI indicators for 2006/07 and 2008/09 has been established, it is proposed to refine a series of targets to be introduced into the major review of the Corporate Asset Management plan which will take place during 2009/10.

DMBC – Corporate Asset Management Plan 2006/07 – 2009/10

7 Reviewing & Challenging the Operational Property Portfolio

7.1 Introduction to the Property Review ProcessDuring the life of this Asset Management Plan, all operational property will be the subject of a rolling programme of Property Performance Reviews. Initially our target is to complete the ongoing verification programme of the Corporate Property Database (end of Quarter 4 2009/10). As data verification is confirmed, a prioritised programme of Property Performance Reviews will be introduced on an Area/Neighbourhood basis. (Commencing 2008/09)

The aim of the Property Performance Review process is to inform Doncaster Council’s property strategy by assessing the value for money offered by the retention of each asset and determining whether it is ‘fit for purpose’ for its current occupier.

The Property Reviews will take account of a number of factors as detailed beneath in sections 7.2 to 7.6 with a scoring system to be developed and a percentage score being awarded for each. Property Reviews will be carried out in consultation with Service Managers, Building users, and other key stakeholders with decisions on retention/ disposal being referred via the Capital & Assets Management structure for approval (see section 2.4).

Action Point 6Complete a Property Performance Review for each operational building to identify poor performance

7.2 Area Plans and Best Value/Service Reviews Area PlansThe Neighbourhood Management model adopted by Doncaster Council divides the Borough into geographical areas which are managed by teams of people who provide a range of local services. As an Area Accommodation Plan develops, the Assets team will determine the specific requirements for accommodation in each Area on a short, medium and long term basis and build this information into each individual property performance review.

Service ReviewsDoncaster Council recognised the importance of asset management as a part of the Best Value Review process in 2001/02. Effectively, as a best value review was undertaken so that review informed the short and medium term improvement plans for the service. The Asset Management Monitoring Group developed six high level questions to which the answers were incorporated within the review report to demonstrate the impact on the property asset(s). This in turn informed the basis for the property implications relevant to the service improvement plan. The six questions that steer the authors of reports and strategies on the impact of their service improvement plan upon the service asset base are as follows:-

Do Doncaster Council property assets as presently configured enable you to meet the recommendations of the report without alteration or expenditure

Do those same Doncaster Council property assets require modification and are they capable of such modification to meet the recommendations of the report

Would the report lead to the release of some of Doncaster Council’s property assets Would the implementation of the report require the acquisition of additional property

assets to enable its delivery Would the result of the report being implemented lead to Doncaster Council acquiring

or receiving additional property assets Would the report whether as a result of implementation or to deliver the

implementation require existing Doncaster Council property assets to be redirected or moved between service deliverers

7.3 The Planning Policy Framework The Unitary Development Plan/ Local Development FrameworkThe Doncaster Local Development Framework is currently being prepared. This will replace the Unitary Development Plan which presently provides the basis for determining planning applications and future developments throughout the Borough. The Assets and Property


Service works in close collaboration with Development & Planning to ensure that the Asset Management Agenda compliments the Planning Policy framework and that emerging Asset Policies align with the three core Planning principles of Economic Regeneration, Environmental Improvement and a reduction in Social Inequalities.

When undertaking Property Performance Reviews, consideration will be given to possible alternative uses for assets in accordance with the Planning policy framework having equal regard to the potential to generate capital receipts, and the needs of the wider community for the protection/enhancement of facilities.

The Community Lettings PolicyFormally adopted in July, 2004, the Community lettings Policy has established a council wide procedure in the case of lettings of property to community groups to ensure consistency of approach, understandable responsibilities, equality and fairness in treatment, and recognising the importance of the groups in furthering Doncaster Council’s commitment and support to the community.

The Policy supports the Authority’s Planning Policy SCF2, which states that “The Borough Council will protect existing community facilities from alternative forms of development. Where Community facilities are declared surplus to requirements, the Borough Council will seek to determine their future use”

Doncaster’s Community Lettings Policy supports the broad principles contained within the Strong & Prosperous Communities White Paper, published by the DCLG in October 2006. However, there are a number of issues raised which need to be given serious consideration, not least the balance between community proposals for surplus assets in contrast with the authority’s overall vision. The White paper raises a number of opportunities, but it is clear that a robust asset management strategy will be required to ensure that any transfer of assets into community ownership are sustainable, and can be considered against an overall vision. The Assets and Property Service will work in conjunction with Development and Planning and Neighbourhoods and Communities to ensure Doncaster has such a strategy in place during the life of this plan.

Action Point 7Review existing Community lettings Policy in accordance with the Strong & Prosperous Communities White Paper.

7.4 Condition Surveys Condition Survey ProgrammeDetailed surveys across the Authority’s operational portfolio were completed and condition reports produced to include the overall condition rating (A to D) together with a schedule of prioritised and costed maintenance requirements during 2007/08. A report outlining the Authority’s required maintenance together with a plan to reduce this (by priority) was approved by the Cabinet at its meeting of 29th November, 2006.

Annual Condition Survey ReviewsDoncaster Council aim to carry out an annual 20% rolling programme of re-surveys to ensure that the condition of every property is assessed at least every five years. It is envisaged that the re-surveys will be carried out using a combination of the in-house technical services team and external consultants, depending upon the nature of the individual properties and available capacity.

Action Point 8Establish a rolling programme of condition survey reviews.

7.5 Suitability Surveys


Consultation is ongoing with individual Council services as to the suitability of properties to provide their services from. Where new services have been established this has formed one of the basis for providing or acquiring from 3rd party landlords their accommodation.

The Assets and Property Team co-ordinate the collection of suitability data across the Authority. The Assets team have entered into early discussions with The Technology Forge, providers of the Corporate Property database in order that suitability information can be stored electronically and easily updated.

Suitability information is based on the following general themes:- Locational factors Accessibility factors Environmental factors Current & future service delivery Safety & security Space factors Fixtures, fittings & facilities Appearance & perceptions

Action Point 9Establish a continuous rolling programme of suitability surveys of the operational portfolio

7.6 Sufficiency SurveysCertain services may require additional information to be collected where a specific property need is to be assessed.

In these instances, additional questionnaires or 1-2-1 meetings with service representatives will be used in order to obtain the required detail to inform the decision making process. For example, for the children’s resources team an additional accommodation requirement was identified for storage. Through 1-2-1 communication, this requirement was determined to be necessary to meet the expectations of CSCI.

7.7 SummaryThe following diagrams seek to present the current and proposed frameworks of the Operational Property Portfolio.

The current framework shows that we have identified all the factors that need to be considered as part of a Property Review. The key linkages and interdependencies have been developed into a property review template to ensure a robust and transparent review process. In the interim period, such decisions are made on the information available, and therefore can be taken on a reactive as opposed to pro-active basis.

Area Plans Best Value & Service Reviews

Unitary Development Plan/Local Development Framework

Community Lettings Policy Condition Surveys

Suitability Surveys Sufficiency Surveys

Operational Property Review

Current Framework


The proposed framework seeks to present a fully integrated assessment system that is proactive to the needs of the services within Doncaster Council. This process will be trialled over the next year to ensure robust decisions can be taken on the retention/disposal of assets.

Operational Property Review

Unitary Development Plan/Local Development Framework

Area Plans

Best Value & Service Reviews

Community Lettings Policy

Condition Surveys

Suitability Surveys

Sufficiency Surveys

Proposed Framework


8. Reviewing & Challenging the Non-Operational Property Portfolio

8.1 Non-Operational Commercial Property Strategy The Legislative FrameworkDoncaster Council has to work within legislative frameworks under Section 123 of the Local Government Act 1972 and State Aid rules to ensure probity and a clear audit trail. Under Section 123, the Council has a power to dispose of land at the “best consideration” reasonably obtainable, unless the disposal is covered by general consents, or the specific consent of the Secretary of State. Value for money, “best consideration” issues and conflicting needs under economic well-being are recognised as growing dilemmas. Where sites are contributing towards the Authority’s transformational agenda, clear valuation audit trails and business cases are required to show the added value and benefits to Doncaster Council and its communities.

The General Disposal Consent 2003 enables authorities to dispose of any interest in land for under £2m that they consider will contribute to the promotion or improvement of the economic, social or environmental well-being of the area for less than market value. Doncaster Council has used the powers granted under this General Consent to dispose of land to support the development of the new Doncaster Education City, located at the Waterfront, a prime regeneration area within the town.

Non-Strategic Commercial PropertiesDoncaster Council’s commercial portfolio is managed by the Authority’s in-house Property team. The portfolio consists of mainly secondary and tertiary properties where the income derived is small and not commensurate with the management time and energy expended. Many of these properties are scattered around the Borough and do not form part of a cohesive group that could provide opportunities for re-development or future investment.

One of the key priorities when the Assets & Property team was established was to prepare a schedule of non-performing, non-strategic lower quality properties with a view to disposal.

Prior to any disposal, all properties are evaluated and checked in terms of planning aspects, ownership, lease details, consultations with key stakeholders, alternative and possible future uses etc. The process used to achieve a sale is then important - by private treaty, formal or informal tender, or auction.

Private treaty could be utilised in disposing of certain properties if the conditions warrant it. For instance, ground leases could be sold directly to the ground lessee and shop units could be sold to shop tenants. Such occupiers have a vested interest in “their” property and could be considered likely to pay a higher price than the value achieved by other means. However, crucially, there is no way to evidence that such values have been achieved.

Doncaster Council’s powers to dispose of land under Section 123 of the Local Government Act 1972 are subject to receipt of the “Best Consideration” (price) that can reasonably be obtained. To ensure that this is the case, and following a review of processes by Assets & Property, Doncaster Council no longer sells directly to tenants or other purchasers “off the market” (the only exception to this may be circumstances where there is an element of special purchaser/"marriage value" between separate Doncaster Council and adjacent land ownerships).

The legal precedent established by Structadene v Hackney London Borough Council further clarifies authority's obligations under LGA 1972, meaning that sales directly to tenants could be challenged and would not stand up to full external audit. Any sale to a tenant would also set a dangerous borough precedent, whereby all manner of Council tenants would expect similar treatment - a huge potential burden for officers which would also not robustly demonstrate that “Best Consideration” has been achieved.

For many low and medium value properties (indicatively up to £1.5m) that are readily marketable, and to ensure robustness and transparency of process and minimise corporate,


financial, legislative and reputational risks, Doncaster Council’s experience has shown that in many cases auctions are a highly effective disposal tool.

The results of the February and October 2006 Auctions which realised more than £8.35m In capital receipts (net) included some exceptional prices for, for example, ground rent properties combined with absolute certainty of timing of capital receipt. Given this, and the strong market for such properties which prevailed at that time, the risks of properties remaining unsold were considered low. Doncaster Council’s direct experience has indicated that disposal by auction is highly successful for selling high cost/ low return property and achieving the best results for Doncaster Council although other routes are always considered on a property by property basis. The auction route is quick, open transparent and represents value for money against costs of disposal (fees) in a healthy market.

Formal and informal tender processes also make evidence of value more transparent, although both can become time consuming and (despite clear documentation) protracted with risks of further discussion by the parties. They are therefore best suited to larger or specialist properties (such as major redevelopments sites) and circumstances where certainly of capital receipt and timing is not critical. This is because until exchange of contracts there is always the possibility that the purchaser could withdraw from the sale without penalty. This would make inter-relationships with capital expenditure and receipt budgets difficult to manage. Any terms (including price) re-negotiated with a highest bidder may also be questioned by other tenderers.

For many properties that Doncaster Council expects to sell over the next three years, a tender basis is likely. More modest numbers and values of properties than has been the case over the last five years will be put to auction.

Doncaster Council has robust tendering procedures in place under Contract Standing Orders to check for probity that are regularly audited internally. The Authority’s Corporate Assurance Section, through this periodic auditing process ensures that the council’s disposal process is robust, achieves Best Consideration and that other requests for alternative use of property have been accommodated wherever appropriate.

The strategic review of the Authority’s operational portfolio as described in section 7 is likely to identify further surplus properties for disposal. This information will be evaluated as part of the asset management planning process.

Background to changes in the property marketDoncaster Council has benefited from a very positive run of property sales over the past few years, but the market has now effectively crashed and values of sites remaining in the sales programme have had to be radically reappraised. The crash is most obvious in the market for residential development land, where many traditional housebuilders have stopped work on sites altogether. The commercial market, too, has seen a substantial readjustment, with investment yields increasing and consequent downwards adjustments in value.

Doncaster Council has recently commissioned external valuers GVA Grimley to carry out a revaluation of assets in the current Property Sales Programme. The resulting report concludes that the total valuation of the properties contained in the current programme has fallen from £80m in 2007 to only £58m today. But that is not the whole story. These valuations assume that mainstream developer purchasers can be found for the sites, and there are likely to be very significant delays in realising these figures. Where sites have a reasonable prospect of sale, they have been identified for disposal over the next two to three years, often with the proceeds coming in over an extended timescale. But in the present market, many sites have no realistic prospect of sale to developer purchasers in the foreseeable future, and these have been identified simply as ‘delayed’.

The economic outlook is currently highly uncertain, and no one can say when the market will start to improve. Resumption of lending by banks and building societies will provide greater


fluidity, but lending criteria are likely to be considerably tougher and, with the prospect of mortgage defaults as the recession bites, it is likely to be some considerable time before developers resume buying land and restarting construction. The previous market crash in 1988/89 led to a prolonged recession in the housing market, which did not start to recover until 1996, and commercial markets were similarly affected although the start of the crash was later. One forecast by estate agents Savills suggests that residential markets in Yorkshire and Humberside may not recover until 2015, which would be in line with the duration of the previous crash.

Developers may return to the land buying market sooner than that, in the expectation that house prices will eventually recover, but completion of sales is likely to be a long drawn out process as developers will undoubtedly try to impose additional constraints on transactions, such as prior receipt of planning permission, certainty of pre-lets to commercial tenants, etc, before commitment to purchase.

Prospects of saleThere are purchasers still around in the present market, but many are classed as ‘opportunistic’ or ‘vulture’ purchasers, whose aim is to buy cheaply for cash and sell on at a profit once markets improve, usually with site enhancements such as planning permission, resolution of legal issues, or site remediation works. The likelihood is that such purchasers would pay only 50% of ‘normal’ development value, although the price could vary somewhat depending on the outcome of individual negotiations.

Mainstream purchasers may consider some limited acquisitions, but probably only if a site is exceptionally well located or has some other attribute which makes it attractive.

For the remainder, there is little prospect at present of achieving steady sales over the next three financial years, although there is likely to be some limited take up of sites marketed over this period. The phasing of receipts from any such disposals is inevitably somewhat arbitrary.

Holding costsOne aspect of the programme still to be clarified is the level of holding costs if Doncaster Council does decide to delay a number of sales, possibly for some years. Work is currently ongoing to review the anticipated level of holding costs – empty property rates, security costs, fencing of sites, and clearance of unauthorised tipping, etc.

SummaryThe overall outlook, is that the capital receipts from property sales are likely to be very substantially delayed, and it cannot be assumed that the market will recover its previous levels of activity in the near future.

8.2 The Property Disposal Process The Corporate Property Disposal ProcessA corporate framework for criteria to explore and evaluate future options for alternative uses, shared-use, re-use, and to determine the under use of assets linked to the disposal process has been in place since 2003. This process will be subject to ongoing review to respond to changing service needs through the Asset Management Monitoring Group.

The existing Corporate property disposal process has 9 stages and can be summarised as follows:-


Stage 1

Property Review operational/ non-operational identifies under-performing/ surplus property

Stage 2

Internal consultation to determine re-use within the Authority

Stage 3

Property declared surplus to Doncaster Council requirements via Strategic Assets & Property Service

Stage 4 (3x potential options)Consideration of Council

Policies*Special reference to the Community Policy (See section 7)

Consideration of Marketing Any site restrictions Any development potential

Preparation for disposal

Stage 5

Agree Method of DisposalConsultation with Ward Members and other key stakeholders (where applicable)

Stage 6 (2x potential options)Restricted Value disposalSpecial Purchaser disposal

Seek Maximum ValueGeneral Market Options

Private Treaty Formal or Informal tender Auction

Stage 7

Agree Terms

Stage 8

Approvals by Members or by delegated powers

Stage 9

Completion and monitor claw back/ other relevant covenants

Action Point 10Continue to develop the commercial and disposal strategies and specific associated targets

Action Point 11Instigate a rolling programme of Property Assessments for all non-operational buildings to identify poor performance and clearly define reasons for holding


9 Options Appraisal

9.1 The Options Appraisal ProcessThe Corporate Financial Management Capital Team have developed an Authority wide framework for options appraisal for capital initiatives. This approach was adopted for the first time for the budget setting process for 2007/08 (for a five year programme). The principle of options appraisal applies to all projects although the scope of the options identified and the level of analysis required varies depending upon the size and complexity of the scheme.

The options appraisal process is summarised beneath:-

Stage 1: Information Gathering

Information Templates and Guidance Document sent to Directors

Assistance provided for Directors via workshops and 1-2-1’s to complete the templates

Completed templates returned back to the Corporate Financial Management Capital Team by Directors

Completed Templates returned to Group Finance Manager (Capital Team) for initial analysis

Stage 2: Analysis of the Information

Corporate Financial Management Capital Team collates the information provided

Project Briefs provided by Directors.

Project Briefs ‘challenged’ eg) Capital ‘v’ revenue requirements, project response to ‘statutory’ requirements.

Statutory deadlines and readiness of each initiative assessed by the Corporate Financial Management Capital Team

Stage 3: Use of Information

Results/ Findings of the analysis reported to the CMT and Cabinet as part of the capital budget setting process

Information base communicated to Policy Performance & Governance to facilitate co-ordination of external resources to corporate capital priorities

As completed templates are returned to the Group Finance Manager for analysis (end of stage 1), project proposals which relate to the Authority’s asset base are identified and assessed against the the existing broad criteria the Authority has in place for the retention/ disposal of assets (see Sections 7 and 8).

During the life of this plan, as the Property Performance Review process is refined (Section 7) and a cycle of reviews is completed, the outcome of the reviews will provide robust information that will be used to inform project proposals as part of the capital budget setting process

Action Point 12Refine Options Appraisal process to assess all poorly performing properties against


10 The Asset Management Programme 2006-2009

10.1 Capital Programme 2007/08 to 2011/12A new capital budget setting process has been introduced by Doncaster Council to assist with the production of a 5 Year Capital Programme on the basis of the Corporate Plan and Service Plans priorities.

This 5 Year Capital Programme includes investment in the following areas: Children & Young People, Transport, Housing, Transformational Projects and Corporate Service Delivery Priorities.

In total, the 5 Year Capital Programme includes £703m capital investment across the borough and covers a wide range of projects/initiatives. (The capital investment reaches up to £767m when the Council’s commitment to the Housing Decency Standards (to the end of 2013/14) is also taken into account. The following information represents the summary of all investment.

Children & Young People Capital Programme (CYP)The Children and Young People (CYP) Capital Programme is dedicated to delivering the Children & Young People strategic theme. The proposed programme represents £85m (of which £23.6m is managed directly by schools) capital investment across the next five years. The investment total reaches £128.2m when the £43.2m PFI funding secured for the Mexborough and Edlington Secondary Schools is also taken into account.

The strategic focus of the programme and major schemes within the programme are presented in the table below:

Strategic Focus 5-Year Proposed Investment Total

Key Initiatives

Priority capital investment in buildings used for educational & learning purposes

Delivering learning & skills programmes for C & YP to meet their learning and skills need

LEA Contribution £61.4m

Devolved Formula Capital to Schools£23.6m

PFI Secondaries (Mexborough & Edlington)

Special Education Needs

Building Schools for the Future

Children Centres Phase 2

Pupil Referral Units (Short & Medium Term Developments)


Transport Capital Programme (TCP)The Transport Capital Programme is dedicated to the delivery of a balanced programme of transport schemes to meet the objectives and targets of the South Yorkshire Local Transport Plan (LTP) and Doncaster’s Access Strategy. The proposed programme represents £30.1 across the next 5 years. This total includes the Quality Bus Corridor Scheme (Phase 1,2 & 3).



Key Initiatives

Delivery of LTP outputs and Doncaster’s Access Strategy

Shared priorities include:

Tackling accessibility Tackling congestion Demand management Road safety Air quality

Integrated Transport £8.8m

Maintenance £14.6m

Major Projects (QBC)£8.9m

A638 Quality Bus Corridor

LTP Park& Ride Programme

Local Safety Schemes

Supporting WRW FARRRS Major Transport Link Schemes

Carriage Maintenance& Noise Reduction Schemes

Structural Maintenance


Housing Capital Programme (HCP)The Housing Capital Programme is dedicated to the delivery of the Housing Strategy priorities. The proposed programme represents £339m capital investment across the next 7 years (i.e. to the end of the completion of the decent homes programme).



Key Initiatives

Delivery of the Decent Homes Programme

Delivery of the Housing Regeneration Programmes

Delivery of the Private Sector Housing Strategy (loan & grant provisions)

Provision of affordable housing across the borough

Public Sector-Decency Standards Programme £235m (with 2*)

Housing Regeneration Programmes £40m (subject to Departments for Communities and Local Government/ Regional Housing Board approvals)

Public Sector Housing- General Capital Investment& Maintenance Programmes (previously called Non-Decency Standard) £35m

Private Sector Housing Programme £22m (subject to Departments for Communities and Local Government/ Regional Housing Board approvals)

Six Streets Project

Homeless Hostel

Kingsway Project

Adaptations for the Disabled

Pathfinder& Green Corridor Programmes

Decent Homes Programme (with 2*)

Decency Environmental (Fencing& Boundary Walls)

Windows& Doors Replacement Programme

One Hit Packages (including the Existing Contractor)

External Envelope Work


Transformational Projects Investment Programme (TPIP)The Transformational Projects Investment Programme is dedicated to the delivery of the Economy and Enterprise strategic theme. The proposed programme represents £256m capital investment across the next 5 years.The strategic focus of the programme and major schemes within the programme are presented in the table below:


Key Initiatives

Strengthening economic prosperity through creating a strong and diverse economy

Maximising wealth creation through facilitating and actively promoting sustainable economic development

Supporting better quality of life for all Doncaster residents

Portfolio Total £256m

Waterfront Infrastructure Development& Regeneration Programme

Civic& Cultural Quarter Delivery Programme

Town Moor Re-development Programme

Urban Renaissance Programme

Major Transport& Regeneration Link Programmes

FARRRS White Rose Way Strategic Park& Ride

Sustainable Development Programme


Corporate Capital Programme (CCP)The Corporate Capital Programme is dedicated to organisational development and better service delivery to the residents of Doncaster. The proposed programme represents £16.3m capital investment across the next 5 years.



Key Initiatives

Delivery of balanced investment in:

Improvement& maintenance of corporate property portfolio (including cultural buildings)

NCCS service delivery & statutory requirements

Corporate ICT programmes

Environmental Improvements

Creation of new facilities through grant regimes

Portfolio Total £16.3m

Annual Property Improvements Programme

Nether Hall Roof Replacement

Black& Minority Ethnic Community Centre

Private Streets Programme

Mexborough& Sterling Day Centres’ Improvements

Townfiled Pitch Improvements

Askern Lake Remediation& Visitor Attraction

Libraries Programme


10.2 Revenue ProgrammeThe following table presents the 2008/9revenue budgets supporting this Asset Management Plan. (At the time of writing the 2009/10 budgets had not been confirmed).

2008/09 Revenue Programme Budget Allocation (000’s)

Technical Services TS Corporate Recharge income (does not include ex Design Services)

£1,148

Scawsby House (to be transferred to Assets & Property)

£164

Technical Services – Facilities ManagementCouncil House £1,238

Priory Place £77

Mansion House £294

47 High Street £94

Denison House £119

Unity House £118

Copley House & Annex £132

Messenger Service £48

Concorde House £74

Facilities Management Staff £461

Post Room (Staff £110k, Operations £172k) £282

Total £4,249


10.3 Review of Asset Management Targets 2006/07-2009/10The table beneath summarises the targets identified within the Corporate Asset Management Plan. An annual AMP update to the Cabinet will report on exceptions against each of these targets.

Target Link to Doncaster Council’s

Key Objectives #

AMP Reference

Responsibility for Action *

Target Date

1 Develop the Assets & Property web pages providing, asset management and general property information

Continue to investigate and work towards the implementation of the NeSDS standards for e-government within the property context

8 3.1 APT & ICS On-going

2 Continue to develop the corporate accommodation plan and associated targets

1, 4, 5, 8 4.1 APT On-going

3 To work with Neighbourhoods & Communities to support the implementation of the Authority’s neighbourhood accommodation model

1, 4, 8 4.2 APT On-going

4 Populate & validate the Technology Forge Corporate Property Database

8 5.2; 7.1 APT End of Q4 2010/11

5 Collect, monitor, benchmark and report property performance data using the NaPPMI indicators

8 6.2 APT Report to Cabinet during Q3/4 2007/08 and annually

thereafter6 Complete a Property

Performance Review for each operational building to identify poor performance

5, 8 7.1 APT & Service/ Building Managers

End of Q4 2010/11

7 Review existing Community lettings Policy in accordance with the Strong & Prosperous Communities White Paper

5, 6, 7, 8 7.3 APT, working in conjunction with

Neighbourhoods & Communities & Development &

Planning

Review to be completed in line with the timetable for development of the community section within the

LDF8 Establish a rolling

programme of condition survey reviews.

4, 5, 7, 8 7.4 APT & Technical Services

Baseline surveys completed by the end of 2008/0920% of surveys to be completed

annually thereafter (5 year

rolling programme)


9 Establish a continuous rolling programme of suitability surveys of the operational portfolio

5, 8 7.5 APT, Service & Building Managers

Survey programme to be complete by end of Q3 2008/09Surveys across the corporate portfolio to be

completed by the end of Q4 2010/11

10 Continue to develop the commercial and disposal strategies and specific associated targets

1, 5, 8 8.1; 8.2 APT Ongoing

11 Instigate a rolling programme of Property Assessments for all non-operational buildings to identify poor performance and clearly define reasons for holding

1, 5, 8 8.2 APT Survey programme to be complete by end of Q3 2008/09Surveys across the corporate portfolio to be

completed by the end of Q4 2010/11

12 Refine Options Appraisal process to assess all poorly performing properties against, as identified in targets 6 & 7 above

5, 8 Section 9 APT & CFMCT Options Appraisal model to be delivered to

Asset Management

Monitoring Group during 2009/10

# Doncaster Councils Key ObjectivesIt should be noted that due to the strategic nature of Asset Management, there is potential to influence/ support all key objectives when considering the breath of services delivered from operational buildings

1 A Prosperous Place2 Skills & Lifelong Learning3 Healthy & Caring4 Safer, Cleaner & Greener5 Improving Neighbourhoods Together (cross-cutting)6 Equality of Opportunity (cross-cutting)7 Protecting the Environment (cross-cutting)8 Achieving Excellence

* Responsibility for Action

APT – Assets & Property TeamCFMCT – Corporate Financial Management Capital TeamICS – Information & Communication Services


Glossary of Terms

Glossary of abbreviations used within the Corporate Asset Management Plan 2006/07 to 2009/10

3D Doncaster Development DirectionACES Association of Chief Estates SurveyorsALMO Arms Length Management OrganisationAMMG Asset Management Monitoring GroupAMP Corporate Asset Management Plan (this document)APT Assets & Property TeamBMW Biodegradable Municipal WasteCCP Corporate Capital ProgrammeCCQ Civic & Cultural Quarter (transformational project)CLAW Consortium for Local Authorities in WalesCMP Carbon Management ProgrammeCMT Corporate Management TeamCOPROP Association of Chief Corporate Property Officers in Local GovernmentCPA Comprehensive Performance AssessmentCPO Corporate Property OfficerCSCI Care Standards InspectorateDCLG Department for Communities and Local GovernmentDfES Department for Education & SkillsDMT Directorate Management TeamDSP Doncaster Strategic PartnershipEB Executive BoardFAQ Frequently Asked QuestionsFTE Full Time Equivalent (posts)GIA Gross Internal Area (in m2)GIS Geographical Information SystemHSE Health & Safety ExecutiveIPF Institute of Public FinanceIRR Internal Rate of ReturnLDF Local Development FrameworkLGA Local Government ActNaPPMI National Property Performance Management Initiative Performance IndicatorsNeSDS National eService Delivery StandardsNIA Net Internal Area (in m2)ODPM Office of the Deputy Prime MinisterPCT Primary Care TrustPFI Public Finance InitiativePPMT Planned Preventative Maintenance Team (Asset Maintenance Section)PPI Property Performance IndicatorPPM Planned Preventative MaintenancePPR Property Performance ReviewRICS Royal Institution of Chartered SurveyorsSLHD St Leger Homes of DoncasterSNT Safer Neighbourhood Team TPIP Transformational Projects Investment ProgrammeUDP Unitary Development PlanUPRN Unique Property Reference NumberURS Consultancy firm specialising in Traffic & Transport Planning & the delivery of

sustainable buildings

DMBC – Corporate Asset Management Plan 2006/07 – 2009/10 Appendix 1

Plan Reference Section 1

1.2 The Council Mayoral Governance in DoncasterThe Mayor and Cabinet, known together as the Executive, are the part of Doncaster Council which is responsible for most of the day to day decisions. When major or ‘key’ decisions are to be discussed or made, these are published, in advance, in the Authority’s Forward Plan. The Executive has to make decisions which are in line with the Council’s Budget and Policy Framework. If it wished to make a decision which is outside the Budget or Policy Framework, this must be referred to the Full Council to decide.

Overview and ScrutinyThe Overview and Scrutiny Management Committee is responsible for ensuring robust and independent overview and scrutiny. This function supports the work of the Executive and the Council as a whole and allows citizens to have a greater say in Doncaster Council matters by holding public inquiries into matters of local concern.

The work of the Overview and Scrutiny Sub-Committees (known locally as Panels) is co-ordinated by the Management Committee. The Sub-Committees send reports and recommendations to the Executive and to the Council on its policies, budget and service delivery.

The Overview and Scrutiny Management Committee is also responsible for holding the Executive to account over the individual decisions it makes. In exceptional circumstances, the decisions of the Executive can be stopped through the “call-in” mechanism for a short while, and sent back by the Overview and Scrutiny Management Committee, to the Executive to be taken again in light of the recommendations of the Overview and Scrutiny Management Committee.

EmployeesThe business of Doncaster Council is supported by its officers who give advice, implement decisions and manage the day to day delivery of services. Certain employees have a specific duty to ensure the Council acts within the law and uses its resources wisely. These officers are the Managing Director, the Monitoring Officer and the Chief Financial Officer.

Nominated Officers take decisions under delegations from the Council and the Executive

1.3 Corporate Planning Framework Sustainable Borough Strategy for Doncaster 2008-2025The Sustainable Borough Strategy is constructed using seven priority themes which are focused on achieving the long-term Vision for Doncaster.

Theme What we are aiming to achieveA Prosperous Place

Ensuring Doncaster takes its place alongside other great cities in terms of economic growth, design, housing and transport links.

Skills & Lifelong Learning

Giving local people the chance to take advantage of economic growth and enjoy a variety of creative, cultural and learning opportunities that improve their quality of life.

Healthy & Caring Improving and protecting the health of all Doncaster residents, reducing health inequalities, and improving the quality of life and independence of vulnerable and disadvantaged people

Safer, Cleaner & Greener

Providing a safe, clean and green living environment for residents with better parks and open spaces.

Improving Neighbourhoods Together (Cross-cutting)

Providing responsive, accessible neighbourhood service delivery which meets the needs of residents, whilst at the same time supporting and encouraging residents to improve their own well-being.


Equality of Opportunity (Cross-cutting)

Ensuring that all residents have the same opportunities in life and are not discriminated against on the grounds of age, gender, race, disability, sexuality or religion.

Environmental Sustainability (Cross-cutting)

Addressing the causes and consequences of climate change, reducing waste and making the best use of the finite resources available.


Plan Reference Section 2

2.4 Organisational Arrangements for Asset Management The Organisational Framework The Capital and Assets Steering GroupThe Capital and Assets Steering Group is the overarching management group within the structure. It takes a corporate view of capital expenditure and the use of assets throughout the authority and gives greater strategic focus and co-ordination to capital programme and asset management planning. It also aims to provide a high level of collaboration between elected members and officers. The group meets quarterly and considers regular reports submitted by the asset management and capital programmes monitoring groups.

Vision StatementThe Capital and Assets Steering Group will ensure the strategic alignment of the council’s asset portfolio with the Authority’s business needs and service delivery priorities. It will also ensure the delivery of the right benefits and outcomes from capital programmes by giving greater focus and co-ordination to the programme activity; and will focus on building the capacity and capability to deal with the complexity and challenges of asset management and investment decision-making by creating a dynamic, flexible and responsive management practice.

ResponsibilitiesThe Capital and Assets Steering Group is responsible for the management of exception reporting, in the following areas:-

1. The implementation of the Capital Strategy and Asset Management Plan and the delivery of capital investment programmes as the accountable body

2. The provision of corporate direction in response to key issues resulting from commissioning and gateway reviews

3. Making recommendations to the Corporate Management Team and the Cabinet on capital investment programmes’ business focus, credibility, internal consistency and coherence as well as on the prioritisation of the capital programme portfolios and exit from and entry to programme portfolios

4. To provide corporate direction in respect of the asset portfolio ensuring that the Council’s assets are used to their greatest effectiveness and are fully exploited

5. Making recommendations on virements within quarterly/ yearly budget limits defined for capital programmes and approved by the Cabinet

6. Managing key strategic risks facing the council’s capital programmes and asset portfolio

7. Initiating extra activities and other management interventions wherever gaps in the programme are identified and issues arise

Asset Management Monitoring GroupThe Asset Management Monitoring Group represents the second-tier within the Capital Strategy and Asset Management Structure. It acts as the Asset Monitoring and Support Body and provides a co-ordinated approach to asset management planning across the authority by establishing the asset portfolio that most appropriately, effectively and efficiently meets the Council’s service delivery requirements.

Vision StatementThe Asset Management Monitoring Group will ensure effective implementation of the council’s asset management plan through achieving a comprehensive corporate approach to maximise asset utilisation to the benefit of services.

Responsibilities1. To ensure efficient, effective and sustainable use of the council’s property assets

through minimising the opportunity cost of holding land and buildings and protecting the value of the asset portfolio.

2. To ensure that the use of assets contributes to the process of service improvement through the provision of innovative accommodation solutions which reflect service needs, and those of partner organisations.


3. Providing an overview and reporting the performance of property assets against targets and key areas of change.

4. Providing a forum to review on an annual basis the Asset Management Plan, plus the results of Best Value Reviews/Audits

5. Providing a framework for prioritising property investment proposals as a part of the Asset Management Plan.

6. Setting and monitoring of the disposal programme to ensure that Capital Programmes are adequately funded.

7. Managing the alignment of the Capital Strategy and Asset Management Plan to the Borough Strategy and Corporate Plan and Service Delivery Priorities.

8. Assessing the effects of corporate policies in respect of the Council’s land and buildings across all Directorates.

9. Challenging the use of, need for and performance of the Council’s property assets which will result in the identification of surplus properties and for alternative use/ disposal.

Capital Programmes Monitoring GroupsCapital Monitoring Groups represent the second tier within the Capital Strategy and Asset Management Structure. They act as the Capital Programme Monitoring and Support Bodies and provide a monitoring and information hub for capital programmes. They are also fully responsible for operational management of the capital programmes. The monitoring groups are:- TPIP Children & Young People Corporate Transport Housing

Vision StatementCapital Programme Monitoring Groups will ensure the internal and external accountability of the council’s capital programmes by establishing robust monitoring/ evaluation mechanisms and information bases, and will facilitate learning across capital programmes through sharing good practice and the co-ordination of activities.

Responsibilities1. The management of all monitoring (including the benefit realisation), control,

information and communication activities for the capital programmes.2. Responsible for the quality assurance of the capital programmes3. Assisting the Capital and Assets Steering Group with;

a) budget control for the programmeb) prioritisation of the portfolio projectsc) entry-exit decisionsd) managing dependencies and interface among projectse) managing interfaces and communication with key stakeholdersf) tracking measurements and reporting progress at programme level

1. Initiating reports that justify investment and trade-off between competing projects by using prioritisation mechanisms which ensures value for money in capital investment.

2. Responsible for programme management activity, including project monitoring3. Managing and monitoring risk at programme level and reporting the key strategic risk

to the Capital and Assets Steering Group4. Providing a framework for prioritising capital projects proposals as a part of the

Capital Strategy

APPENDIX 2

CAPITAL AND ASSETS STEERING GROUPMembers: On Invitation:Strategic Director Development Peter Dale Acting Corporate Director Legal Services Neil Pointon Interim Corporate Director – FS Steve MawsonDirector of Neighbourhoods – Jane Miller Group Director Development and Planning Andy Gutherson Acting Assistant Director for Regeneration Scott CardwellManaging Director Paul Hart Assets Manager Jo Lodge Senior Asset Management Consultant Gill Fairbrother

Asset Management Monitoring Group*Members:Assistant Director Intervention, Prevention & Support - Tom CommonAssets Manager- (Resources) Jo LodgeSAESO- (Education Standards) Andy MartinCorporate Finance Manager (Resources) Michelle MacFarlane

By Invitation:Group Director- Development & Planning (Development) Andy Gutherson Asset Maintenance Manager- (Resources) Phil WignellPrincipal Legal Officer – (Resources) David BarkerSenior Asset Management Consultant (Resources) Gill FairbrotherAssistant Director of Capital Programmes (SLHD) Paul Elliott

* The Group is currently subject to review (January 2009)

TPIP Monitoring GroupMembers:Corporate Finance Manager (OD& C) Michelle MacFarlaneGroup Director- Development & Planning (Develop) Andy GuthersonActing Assistant Director for Regeneration Scott CardwellDirector of Neighbourhoods Jane MillerAssistant Director SSSC Gill GilliesBy Invitation:Legal Services Manager (OD&C) Neil PointonPolicy& Partnership Christian FosterMajor Infrastructure Manager- Development Neil FirthAdvisors:Capital Programmes Consultant Jeanne MeggsGroup Finance Manager (Services Financial Management, Group Finance Manager – Capital Team) Paul Barnett

Corporate Capital ProgrammeMembers:Corporate Finance Manager (OD& C) Michelle MacFarlane Head of ICT Paul FirthInterim Assistant Director of Commercial Operations - Stuart HallDirector of Adult Services Joan BeckAssistant Director SSSC Gill GilliesProgrammes Manager Christian FosterAdvisors:Principal Finance Officer Andy TownsendCapital Programmes Consultant Lisa SullivanGroup Finance Manager – Capital Team Paul Barnett

Education Monitoring GroupMembers:Corporate Finance Manager (OD& C) Michelle MacFarlaneAssistant Director - School & Learner Engagement Steve ChewInterim Director of Children’s Services Paul GrayActing Assistant Director for Regeneration Scott CardwellBy Invitation:Assets Manager Jo LodgeLegal Services Manager Roger HarveyActing Corporate Director Legal Services Neil PointonTechnical Services Manager Phil WignellGroup Finance Manager - Children & Young Peoples Services Faye TyasAdvisors:Principal Finance Officer Dave RosserCapital Programmes Consultant Paul Bareham

Housing (St Leger) Specialist Monitoring GroupMembers:Corporate Finance Manager Michelle MacFarlaneAssistant Director of Housing Gary WellsStrategic Initiatives Manager Carol JohnsonProgramme Manager Christian FosterHousing Renewal Manager Janet SzlampBy Invitation:

Assistant Director for Financial Services- ALMO Dean RothwellDirector of Business Planning Trevor LincolnInterim Director of Property Services Ken HopkinsAdvisors:Capital Programmes Consultant David MurphyPolicy & Partnership Consultant Peter AlflatGroup Finance Manager (Services Financial Management, Group Finance Manager – Capital Team) Paul Barnett

Transport Specialist Monitoring GroupMembersMajor Infrastructure Manager- Development Neil FirthHighways Drainage & Street Lighting Manager- NCCS Lee GarrettPrincipal Transport Planner- Development Steve KingTraffic Manager-Development Ian BrightmanSenior Transport Planner- Development Louise FannonBy Invitation:Principal Engineer (Bridges)- Development Bob SmithPrincipal Engineer (Highway Safety Management) - Dev David HaigPrincipal Engineer (Projects)- Development Malc LucasAdvisors:Principal Finance Officer Andrew TownsendCapital Programmes Consultant Jeanette Inkson

PROJECT MANAGERS OPERATIONAL SUB-GROUPS PROJECT DELIVERY DEPARTMENTS/ ORGANISATIONS

Decisions will be in accordance with the Council’s Scheme of Delegation for

individual Officers and Members

Mayor & CabinetExecutive Board

CMT

6. summary of doncaster’s existing property …...management monitoring group at its’ july 2007...

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