CORPORATE ASSET MANAGEMENT PLAN 2009 - 2012democratic.bracknell-forest.gov.uk/documents/s27955... · corporate asset management plan 2009 - 2012 . version 1 corporate asset management

VERSION 1 CORPORATE ASSET MANAGEMENT PLAN

Page 1 of 53

Annex A

UPDATED AUGUST 2010

CORPORATE ASSET MANAGEMENT PLAN

2009 - 2012


Page 2 of 53

CONTENTS

1. INTRODUCTION 3 2. CONTEXT OF BRACKNELL FOREST 4 3. COUNCIL GOVERNANCE AND ASSET MANAGEMENT PLANNING 5 4. THE APPROACH TAKEN BY THIS PLAN 8 5. HIGH LEVEL POLICIES THAT INFLUENCE AND SHAPE THE LOCAL

AUTHORITY ASSET MANAGEMENT PLAN

9

6. THE COUNCIL’S STRATEGIC APPROACH TO ASSET MANAGEMENT 10 7. IMPLEMENTATION OF THE STRATEGIC ASSET MANAGEMENT PLAN 12 8. MANAGEMENT OF THE ASSET BASE 13 9. CAPITAL STRATEGY 20 10. THE TENANTED COMMERCIAL PROPERTY PORTFOLIO 21 11. CONCLUSION 23 APPENDIX 1 - DEFINITIONS TO BE USED IN ASSET MANAGEMENT (2008) 24 APPENDIX 2 - LOCAL AREA AGREEMENT – ASSET MANAGEMENT SUPPORT

TO ACHIEVE OBJECTIVES

25

APPENDIX 3 – SERVICE PLAN PRIORITIES 1 – 6 AND ASSET MANAGEMENT EXAMPLES

26

APPENDIX 4 – ASSETS REGISTER 31 APPENDIX 5 – SUMMARY OF CAPITAL PROGRAMME 2010/11 – 2012/13 34 APPENDIX 6 – PRIORITY GRADE DEFINITION NOTES

45

APPENDIX 6.1 – PROPERTY CONDITION SURVEY SUMMARY 2006/2007 46

APPENDIX 6.2 – PROPERTY CONDITION SURVEY SUMMARY 2007/2008

47 APPENDIX 6.3 – PROPERTY CONDITION SURVEY SUMMARY 2008/2009

48

APPENDIX 6.4 – PROPERTY CONDITION SURVEY SUMMARY 2009/2010

49 APPENDIX 7 – PRIORITISATION OF SCHOOLS DEVOLVED FORMULA

CAPITAL BUDGETS

50


Page 3 of 53

1. INTRODUCTION 1.1 Bracknell Forest Borough Council’s Corporate Asset Management Plan

consists of this overarching framework document supported by additional documents that are listed at 6.1 in this plan.

1.2 The plan has been revised to provide updated figures, as well as new

information on benchmarking the commercial investment portfolio and the actions being taken to reduce the maintenance backlog.

Plan Revised August 2010


Page 4 of 53

2. CONTEXT OF BRACKNELL FOREST 2.1 Bracknell Forest lies 28 miles west of London, at the heart of the Thames

Valley and within the county of Berkshire. The Borough is in the Western Corridor and Blackwater Valley Sub region, and covers approximately 42 square miles (10,981 hectares). It includes the towns of Bracknell, Sandhurst and Crowthorne Village, as well as a number of smaller villages and settlements.

2.2 The local economy is above average size and productivity when compared to

the region and nationally. Good transport links, a well educated labour force and the quality of the environment are key attractors to the companies that have located within the Borough.

2.3 The Borough has experienced some of the highest population growth rates in

the country, leading to pressures on infrastructure and services and the Borough’s environment assets which include sites designated as being important for nature conservation at an international, national and local level.

2.4 The population is 112,000 (2006 estimate) and between 1991 and 2001 grew

at twice the average rate for South East England. The population is relatively young (average age 35.4 years compared to the U.K. average of 38.7). Only 11.5% is of pensionable age compared to the national average of 18%. The black and minority ethnic percentage of the population was 5% at the Census in 2001. Recent estimates anticipate that this has now almost doubled.

2.5 Bracknell Forest is generally affluent with property prices and levels of car

ownership significantly higher than the national average. Employment is heavily focussed on the service sector with many international companies located within the Borough.

2.6 Bracknell Forest Council is a unitary authority, established in 1998, which has

responsibility for education, social care, planning and library functions in addition to the previous district council functions relating to leisure, highways and the environment.

2.7 The Council transferred its housing stock in 2008 to a Registered Social

Landlord, Bracknell Forest Homes.


Page 5 of 53

3. COUNCIL GOVERNANCE AND ASSET MANAGEMENT PLANNING 3.1 At the political level the Council has adopted the Leader and Executive

(cabinet) model of governance. The portfolio for each Executive Member is loosely based on service department’s responsibilities. There is an Executive Member with responsibility for Finance and Asset Management.

3.2 The Council has been structured around four departments, Children, Young

People & Learning, Adult Social Care & Health, Corporate Services and Environment, Cultural & Communities. Departments are led by a Director supported by Chief Officers covering various service delivery areas. The Chief Executive retains a small team to deliver a number of key functions.

3.3 The Chief Officer: Property (Corporate Services) is responsible for Corporate

Asset Management within the Council and chairs the Asset Management Group. This group was established in 1998 to co-ordinate and manage the asset management process within the Authority. Its members include senior representatives from each Department as well as representatives from the Police and the East Berkshire PCT. The Borough Treasurer is also represented to provide financial input into discussions and recommendations.

3.4 The Corporate Asset Management Group meets five times per annum with

formal Agendas and Minutes. The group reports direct to the Council’s Corporate Management Team. The Group’s Terms of Reference are set out below: -

• In consultation with service and operational departments to jointly identify

and annually review the corporate property portfolio to ensure it is aligned with corporate strategies, fit for purpose and supports effective service delivery.

• To establish a robust corporate property monitoring system.

• To establish and review the Council’s properties. 20% of the portfolio to

be considered each year.

• To oversee the Authority’s acquisition and disposal programme as well as joint commissioning.

• To undertake the role of Corporate Landlord for all operational properties

held by the Council and to optimise service department’s utilisation of property in terms of service benefit and financial return.

• To facilitate the establishment of a rolling three year capital programme

based on an assessment of proposed schemes against identified service needs and corporate strategies.

• To review and co-ordinate the completion of the Project Appraisal

Decision Sheets (PADS) in order to evaluate and prioritise those schemes to be considered by Corporate Management Team (CMT) for inclusion within the Capital Programme Budget proposals.


Page 6 of 53

• To evaluate and assess the capital programme planned maintenance requirements for all non-school Council properties based on the most up to date condition surveys.

• To recommend to CMT a schedule of works representing the planned

maintenance capital programme that makes the most effective use of the budget allocated as part of the annual budget.

3.5 Chief Officer: Property also meets on a regular basis with the Executive

Member for Finance and Assets who has responsibility for asset management.

3.6 Within the Children, Young People and Learning Department and the Adult

Social Care and Health Departments there is a dedicated property team which produces an annual asset management plan on the properties managed by this department.

3.7 The approach with the Environment, Culture and Communities Department is

broadly encompassed by the work of Corporate Services as the number of properties managed is significantly less.


Page 7 of 53

ASSET MANAGEMENT STRUCTURES a) Planning

Available In preparation

b) Working Groups

Corporate Asset Management Group

Schools Asset Management Group

Building Maintenance Planning (Task & Finish Group)

Corporate Asset Management Plan

CYP&L AMP

ASC&H AMP

Corporate Services AMP (inc Chief

Executive)

ECC AMP Office Accommodation

Strategy


Page 8 of 53

4. THE APPROACH TAKEN BY THIS PLAN 4.1 “Building on Strong Foundations, A Framework for Local Authority Asset

Management” has adapted the Royal Institution of Chartered Surveyors (R.I.C.S.) definition of asset management which was included in the R.I.C.S ‘2008 Public Sector Management Guidelines’. Asset Management is defined as: - ‘The activity that seeks to align the asset base with organisation’s corporate goals and objectives. It ensures that the land and buildings asset base of an organisation is optimally structured in the best interests of the organisation concerned’.

4.2 This plan follows the guidelines set out by the Royal Institution of Chartered

Surveyors and other key publications which have contributed to Asset Management within large complex organisations.


Page 9 of 53

5. HIGH LEVEL NATIONAL POLICIES THAT INFLUENCE AND SHAPE THE LOCAL AUTHORITY ASSET MANAGEMENT PLAN

5.1 2005 Disability Discrimination Act

The Disability Discrimination Act 2005 (D.D.A. 2005) introduced a new duty for public bodies, including local authorities, not to discriminate against disabled people in the delivery of their public functions.

5.2 Building Schools for the Future and the Primary Capital Programme

Building Schools for the Future is the current school building investment programme for secondary schools. The Primary Capital Programme is designed to create primary schools that are fit for the 21st century teaching and learning.

5.3 Highways

The Highway Asset Management planning needs to be aligned with Local Transport Plans. This plan is being developed by Environment, Culture & Communities Department.

5.4 Climate Change

It is recognised that Local Authorities have a crucial role in tackling climate change and helping society move towards sustainable modes of development. It can shape its services and influence those of local partners to create solutions that are joined up, integrating the economic, environmental and social priorities of local areas to create sustainable communities. The Council’s Energy Manager provides key advice in these matters. The Council is a signatory to the Nottingham Declaration on Climate Change.


Page 10 of 53

6. THE COUNCIL’S STRATEGIC APPROACH TO ASSET MANAGEMENT 6.1 The Council’s strategic approach to Corporate Asset Management is created

by the following plans and strategies, in addition to the High Level national policies set out at 5.0 above.

• Sustainable Community Strategy and Local Area Agreement • Councils Service Plan, overarching priorities and Medium Term

Objectives • Masterplan for the Town Centre • Local Development Framework • Capital Strategy • Asset Register • Departmental Asset Management Plans • Climate Change Action Plan • Small Land Sales Policy • Depot Rationalisation Report • Cultural Strategy • Play Strategy • Office Accommodation Strategy

All Departments are developing/improving/updating Asset Management Plans which take into account the Corporate objectives set out in this Asset Management Plan.

The Council vision is to optimise the use of its land and property in terms of service benefit, contribution to the community, financial return and value for money. It endeavours that the property is suitably located and accessible, is well maintained and is suitable and sufficient for its purpose. The Council disposes all surplus properties unless there is an identifiable future need where short term let is agreed.

6.2 These plans and strategies along with the work of the Asset Management

Group have enabled properties to be aligned to support the Council’s Medium Term Objectives for 2008/2011. The overarching priorities and Medium Term Objectives are: -

Priority One: A Town Centre Fit for the 21st Century

MTO 1: To build a vibrant Bracknell town centre that residents are proud of

Priority Two: Protecting and Enhancing Our Environment

MTO 2: To keep our parks, open spaces and leisure facilities accessible and attractive MTO 3: To promote sustainable housing and infrastructure development MTO 4: Keep Bracknell Forest clean and green


Page 11 of 53

Priority Three: promoting health and achievement

MTO 5: To improve health and well being within the Borough

MTO 6: To improve the outcomes for children and families through the Children and Young Peoples Plan

MTO 7: Seek to ensure that every resident feels included and able to access

the services they need

Priority Four: create a borough where people are, and feel, safe:

MTO 8: To reduce crime and increase people’s sense of safety in the Borough MTO 9: To promote independence and choice for vulnerable adults and older people

Priority Five: value for money:

MTO 10: To be accountable and provide excellent value for money Priority Six: sustain economic prosperity:

MTO 11: To promote the Borough’s economic activity and potential MTO 12: To promote workforce skills MTO 13: To limit the impact of the recession

6.3 Set out in Appendix 3 are recent examples of how the Council’s asset base is aligned to the Medium Term Objectives.


Page 12 of 53

7. IMPLEMENTATION OF THE STRATEGIC ASSET MANAGEMENT PLAN 7.1 The decision making structures and leadership at senior level are essential

for successful implementation of the plan. This occurs in various ways depending on the project.

• The Town Centre Regeneration Committee is an all member group

supported by the Chief Executive and Chief Officers and makes decisions relating to the regeneration of Bracknell Town Centre. This is the major project of the Council in Partnership with the private sector.

• All major projects are managed by Project Groups which tend to be a combination of Members and Senior Officers. The Garth Hill Project Group which is managing the construction of a new school and ultimately the disposal of surplus land is an example of this style of management.

• The Asset Management Group is an all officer group led by Chief Officer: Property, working across all Departments to provide a unified approach to asset management. It is attended by senior staff who have sufficient seniority and have the authority to make recommendations.

• Regular meetings between Chief Officer: Property and the Executive Member for Finance and Assets provide a vital link between the Asset Management Group and the Executive.

• There are a number of officer working groups which deal with specific topics, e.g. flexible working, climate change, accommodation and maintenance backlogs etc.

7.2 This focussed approach which includes Members and Chief Officers results in

a Council wide approach to asset management. Examples of the effectiveness of this approach are disposal of land at Brakenhale for the Department of Children, Young People & Learning by Corporate Property (2009) in order to build an Open Learning Centre and improve Brakenhale School facilities and provide community sports facilities.

7.3 The Council has adopted Prince Project Management methodology and this

is applied in proportion to the significance of the project.


Page 13 of 53

8. MANAGEMENT OF THE ASSET BASE 8.1 It is essential that properties are managed effectively to support the Plan

strategy. This management can be divided into 5 main areas: -

• Assessment of value for money • Assessment for Service Need (Sufficiency) • Condition and Maintenance of Land and Property • Assessment of suitability • Assessment of sustainability

8.2 Value for Money

In all property matters it is essential that the Council obtains value for money. Examples of our approach are: - • Whole life costing for major projects, e.g. replacement of chillers, air

handling units and roof covering at Time Square. • Ensuring all properties are adequately marketed prior to disposal to

ensure best value. • Developing the use of benchmarking so we can assess our performance

against others.

We are developing benchmarking of the performance of our buildings and in particular are concentrating on: - 1. Levels of occupancy of service buildings 2. Running costs of service buildings 3. Rental growth of tenanted portfolio 4. Voids within tenanted portfolio

Energy consumption for key buildings is monitored and can be compared against national averages and will form part of the overall running cost benchmarking outlined above.

8.3 Service Need (Sufficiency)

The Council regularly reviews the number, size and location of key service points across the Borough to ensure service need is met and if there is potential for rationalisation. This process is always informed by engagement with service users and the community (see Community Engagement Strategy). Examples of this are the work on Modernising Social Care, school organisation reviews and the plans for Children’s Centres and extended services.

When a property is no longer required for its existing use, departments are required to refer the property to the Asset Management Group. This Group considers whether there is a suitable requirement within the Council or partners and if not a recommendation is made for disposal. Examples of this approach are Harmans Water Community Centre and Adastron House Pupil Referral Unit.


Page 14 of 53

8.4 Condition And Maintenance Of Land and Property

The Council holds core data on each property including details of location, construction and other physical characteristics. Corporate Property, (Building Surveyors section), inspects all properties as set out in appendix 6 and makes an assessment of the state of repair. This results in a priority list of repairs and maintenance which forms the basis of the maintenance programme for the following financial year. Whilst all urgent repairs are dealt with, lack of financial resources at present prevent making any reduction in the programme of less urgent repairs and maintenance.

Appendix 6 provides details of the repairs situation for the years 2006/07, 2007/08, 2008/09 and 2009/10. Also attached are notes explaining how repairs have been categorised so resources can be targeted efficiently. A review of our approach to maintenance is being undertaken to ensure all possible action is taken subject to financial restraints to reduce the current maintenance backlog.

Work on Reducing the Planned Maintenance Requirement The Council has recognised that it faces a backlog of maintenance work and has established an Officer group, led by the Director of Environment, Culture and Communities to maximise the Council’s ability to harness available grants. The initial focus is on the need to deal with the highest priority works as identified by the condition surveys undertaken by the Building Group. These are works categorised as 1D (immediate/within 1 year) and 1C (before 2 years has expired). The priorities can be broken down as follows: - Schools - 1D £3.40m Schools - 1C £0.65m Non Schools - 1D £4.348m Non Schools - 1C £0.412m (NB the school figures exclude Voluntary Aided Schools) Budget allocation is currently: - Schools (BFC) - £0.2m Schools (Cumulative Devolved Formula Capital) - £5.0m Non Schools - £1.8m Schools receive £1.6m p.a. as Devolved Formula Capital funding, which needs to meet all their capital needs including ICT hardware requirements.

In order to make progress in addressing the ID and IC items, the following strategies, subject to further refinement in terms of figures and scope, are to be explored subject to the availability of limited funds. • £1m of prudential borrowing should be considered to bring forward

long term investments at Easthampstead Park Conference Centre,


Page 15 of 53

Healthlands Care Centre, and Coopers Hill Youth and Community Centre.

• £1m of prudential borrowing should be considered to reduce and

make more efficient the Council’s use of energy primarily by targeting facilities with boilers and related equipment in need of replacement in the near future. This will be applied to schemes that generate a level of financial return and reduce the Council’s carbon footprint. Together, prudential borrowing and Invest to Save will support expenditure in the region of £1.7m

To support the proposed borrowing and re-instate provision for planned preventative maintenance which is not technically capital in nature, a future revenue provision of up to £600,000 per annum should be considered. Together with existing capital spending plans, this is anticipated to be sufficient to address the backlog of IC and ID priorities within three years. The recent increase in revenue reactive maintenance relates to the lack of capital funding for planned maintenance over a number of years as the amount spent on reactive maintenance impacts on the requirement for planned maintenance. Schools will be a major focus for planned maintenance and a stronger partnership approach should be adopted to aid mutual understanding and to reduce the backlog of IC and ID priorities. This strategy is based upon: • Prioritising the use of delegated budgets for priority repairs.

Discussions are underway for schools to allow for the CYP&L Asset Management Plan to set maintenance repairs as a priority use for Devolved Formula Capital (DFC) funds. This is a grant condition before we can require schools to take account for maintenance as a high priority use of DFC. See further comments on use of delegated budgets in Appendix 7.

• Applying, where possible, S106 monies for school improvement,

allowing the release of delegated budgets for maintenance work. However, in most cases S106 monies is usually only available for providing additional pupil places.

• Ensuring that current and future government grant funding is

optimised to help meet, where possible the investment requirement for maintenance.

• Adopting a partnership approach with schools to consider further

prudential borrowing for school related projects, this would have to be considered by the Schools Forum and be in accordance with the latest financial regulations for schools.

• Full, or partial, Invest to Save schemes which reduce or make more

efficient the school’s use of energy and improve the Council’s carbon footprint.


Page 16 of 53

Work is currently ongoing relating to the future long term maintenance and investment needs of the depot, Easthampstead House and Bracknell Market. While all have maintenance requirements, more strategic discussions are ongoing about their future.

8.5 Suitability of Property

The Asset Management Plan needs to look at the suitability of property to satisfy occupier’s requirements in terms of adequacy of facilities, fitness for purpose and ease of management. Suitability surveys have already been undertaken for all schools and the majority of other service buildings. Assessments of priority work arising from these savings have been detailed. To ensure our properties satisfy Health and Safety requirements we are completing the three year programme (2007-2010) to deal with: - • Fire Risk Assessments • Legionella Testing and Training • Type 2 Asbestos Surveys, now known as the Asbestos Management

Survey

The Council is also investing in alterations to property to ensure our properties which are open to the public are D.D.A. compliant. All public buildings were surveyed in 2007 and we anticipate that by the end of 2010/11 85% of our public properties will be compliant. Work will continue until the programme is complete and £100,000 of expenditure has been budgeted in 2010/2011. Excluding schools, other educational establishments and public toilets the Council currently has 41 properties to which the public have access. The Council has undertaken a programme of works to ensure access is available to all and this programme of works will continue in 2010/2011. Our performance in recent years is as follows: -

Year % of properties with public access available to all

2006/2007 26.8 2007/2008 51.2 2008/2009 70.7 2009/2010 80.5 2010/2011 85.0 * * Programme still to be agreed but we anticipate being able to meet this target.

Therefore we anticipate that by 31st March 2011 work on 35 properties will have been completed leaving 6 to be dealt with in the forthcoming year.

8.6 Sustainability

Work in this area broadly divides into four main areas: -


Page 17 of 53

• Use of sustainable materials for building work • Recycling at Council Properties • Energy efficiency • Meeting BREEAM standards for new build

The Building Surveyors Team within Corporate Property oversees works to Council property and has been instructed whenever feasible to use sustainable building materials. For example, the proposed Youth Centre within the Great Hollands Neighbourhood Centre will see the use of sustainable materials in the project. These will include: • Materials arising from demolition work is to be recycled or reused

elsewhere in the project. • New Armstrong Dune ceiling tiles are 100% recycled material. • We are currently looking into the possibility of installing sun pipes from

Monodraught to provide free light to the areas furthest away from windows and also a solar powered ventilation system.

• All walls are to be insulated cavity walls. This coupled with insulation from the ceiling and double glazed walls will give the building better thermal performance.

• Lights will be operated by movement sensors to ensure lights are not left on when areas are not being used.

Recycling is well established within Easthampstead House, Seymour House, Time Square and the Depot. This policy is managed by the Facilities Management team. With regard to recycling at other Council sites, the Council’s position is as follows: -

There is also considerable scope for reducing the amount of waste currently sent to landfill. Approximately 12% of primary schools and 27% of secondary schools rubbish currently sent to land fill could be easily recycled or composted. Work is in hand to achieve these objectives. Within Environment Culture and Communities, Leisure and Culture operate leisure facilities, libraries and parks. There are two public recycling sites in car parks of leisure sites and two in car parks serving public parks. Also, within leisure centres, the public facing waste disposal bins segregate recyclable waste where possible. Within the staff side of operations, efforts are made to recycle a range of material such as paper, card, tin, plastic, glass and oil. Also, where practicable we try to turn green waste into compost and re use material such as wood chip.

The Council employs an Energy Manager who is in the Environment, Culture and Communities Department and he advises on Energy efficiency matters and is a key member of the Climate Change Group. This is a multi-discipline cross department group which considers all matters relating to energy efficiency and waste management. The key actions of the Climate Change Strategy are detailed in all department service plans.


Page 18 of 53

In terms of energy performance, Bracknell Forest Council has reduced its consumption in 2009/10 across Schools and Corporate buildings by approximately 4% as compared to 2008/09. Although this is in part due to the extended maintenance shutdown at Coral Reef, significant energy savings have been realised where energy saving /good housekeeping measures have adopted typically at Bracknell Leisure Centre and Time Square. Energy savings at Bracknell Leisure Centre have been realised by installing pool covers and new windows. Savings at Times Square have been realised by calibrating controls, resetting timings and set points, rationalisation of printers and the Energy champions initiative.

The Council is currently building a new school at Garth, and the project team which controls the project ensured the new building will be to BREEAM standards.

8.7 Working with Partners

This plan recognises the benefits to be obtained through working with partners. Both the Police and the PCT are members of the Asset Management Group. The Council works closely with Thames Valley Police and other local partners to reduce crime and anti-social behaviour. As a result of this partnership, in 2007/08 Bracknell Forest saw a dramatic 13.7% fall in crime – the largest drop in the Thames Valley. Although overall crime rose again slightly in 2008/09, the strong partnership with Thames Valley Police helped sustain an overall fall in crime since 2006/07 of 11.5%. The Council is working with Thames Valley Police to develop Police Points in community buildings. The Council is working closely with PCT to provide a new health facility for the town centre. Plans are being finalised for a new Healthspace with work due to start in 2010. The Healthspace will bring together a wide range of services under one roof including GP services, urgent care, physiotherapy, out-patient appointments, diagnostic services including blood tests and scans, and community services. The Borough Council works closely with the Bracknell Town Council; public w.c.’s, play areas and public open space have been leased to them. The Council also works closely with the private sector and a Development Agreement has been signed with Bracknell Regeneration Partnership (a joint company formed by Legal and General Plc and Schroders Plc), for the regeneration of the Town Centre. As part of the regeneration, Bracknell Forest Council (BFC) and Bracknell Regeneration Partnership (BRP) are working together to improve Bracknell town centre’s retail, office, residential and leisure provision. BFC and BRP aim to create a sustainable vibrant town centre environment which meets the needs of retailers, occupiers and the local community both now and in the future. The Council also works very closely with Oxford Innovations Ltd who manages the Crowthorne Enterprise Centre on behalf of the Council. The


Page 19 of 53

Centre provides accommodation and services for fledgling businesses to develop and grow. The Council has entered into an agreement with One Church One Hundred Uses (2010) to consider the redevelopment of Church and community assets at Harmans Water Community Centre, which may well extend in a phased basis to other Council assets at the Centre. There are several partnership arrangements with Bracknell Forest Homes with the management of residential properties. The Council is working with a number of RSL’s on the provision of new affordable housing schemes in the Borough. We are in partnership with adjoining local authorities over waste management and C.C.T.V operations. RE3 is the partnership between Bracknell Forest, Reading and Wokingham Borough Councils and Waste Recycling Group (WRG) to deal with waste management. It was set up to increase the amount of waste that is reused, recycled and composted across the three boroughs and minimise the amount of waste sent to landfill. All the Council’s Community Centres are run by independent Community Associations and the Council encourages Community Associations by not charging a market rent for Community Centres. Bracknell Forest will continue to engage with public, private and charitable partners to deliver services in a value for money manner and to use property resources efficiently. The Bracknell Forest Partnership consists of senior representatives from the public, private, voluntary and communities sectors which covers 10 theme partnerships: - • Climate Change Partnership • Children & Young People’s Trust • Crime & Disorder Reduction Partnership • Cultural Partnership • Early Years, Child Care and Play Partnership • Economic and Skills Development Partnership • Health and Social Care Partnership • Older People’s Partnership • Strategic Housing Partnership • Town Centre Partnership


Page 20 of 53

9. CAPITAL STRATEGY 9.1 As part of the forward planning process a project appraisals system is used.

All schemes and programmes, with the exception of those already committed, require a project appraisal to be prepared from the onset. These appraisals include assessments of how the project satisfies service needs, options including doing nothing, a full financial appraisal including future revenue implications together with a deliverability analysis. Where building construction is proposed, access and energy efficiency observations are also taken into account. In preparing the forward capital investment plans these project appraisal sheets are brought together and prioritised against the overall Council objectives and reported on to Corporate Management Team in the full development of the Capital Programme.

9.2 Projects for which a sound business case has been established and which

meet the Council’s objectives, are prioritised and fed into the Council’s forward programme. In developing the Capital Programme, needs are balanced through a set of formally agreed priorities, being:

• Statutory and legislative requirements in the provision of services.

These schemes form a first call on available resources. • Improvements and capitalised repairs. The property condition

surveys are used to inform decisions in developing the maintenance programme. The authority seeks to maintain and continuously improve the condition of the fabric of property and infrastructure assets.

• Rolling Programmes, which cover more than one year and relate to the Council’s Medium Term Objectives.

• Other desirable schemes, which includes high priority projects that meet the Council’s needs and objectives.

The final category of desirable schemes is considered on the basis of financial cost (taking into account other sources or contributions, of external funding), value for money and the extent to which the projects will contribute to the achievement of the Council’s core objectives.

9.3 The Council’s three year capital programme, which was agreed in February

2010, is set out in Appendix 5. As a debt free authority the Council is heavily reliant on capital receipts to fund its capital programme, although accumulated capital receipts also help support the revenue budget. In the past the Council has been heavily reliant on housing sales to generate new receipts however, the disposal of other assets is seen with greater importance if the Council’s spending plans are to continue to be realised. To support this there is a programme of disposals and all surplus, or potentially surplus, property is reported to every meeting of the Asset Management Group. This process ensures that the past departmentalist approach to property ceases and service department reticence to release property assets is challenged and broken down so providing a corporate ownership of assets.


Page 21 of 53

10. THE TENANTED COMMERCIAL PROPERTY PORTFOLIO 10.1 The Council also holds a property portfolio let on a commercial basis to

tenants. The majority of the properties are: - 1. Shopping parades located on housing estates 2. Industrial units 3. Start up business units 4. Crowthorne Enterprise Centre (managed on behalf of the Council by Oxford Innovations Ltd) 5. Retail Park (Peel Centre) – leased to Land Securities Plc. 6. Individual shops

These assets are actively managed with the results that: - 1. Voids are low 2. Rent steadily increasing 10.2 The performance of these assets are regularly analysed to ensure that

income opportunities are maximised.

Current rental income from the tenanted portfolio is £2,202,787 (2009/10). 10.3 The retail and industrial benchmarking mentioned earlier in this report are set

out below. Also, office accommodation benchmarking is included to assist in the management of the Council’s own operational properties.

10.3.1 Retail Investment Portfolio Benchmarking

The Council owns and manages over 100 retail units located in neighbourhood centres within housing estates.

The Local Shopping REIT Plc. is a quoted FTSE main market property company which specialises in owning and managing local shopping assets in the U.K. Their portfolio in September 2009 consisted of 627 local shops and includes suburban shopping parades in London and other major cities hence their larger size and higher average rents. However, the rental trend shows BFBC units showing growth over last 2 years compared to Local Shopping Reit Plc.

Portfolio Voids 2007 2008 2009

BFBC 0.98% 0.91% 1.30% Local Shopping Reit Plc. 3.40% 6.90% 8.10%

Average Shop Rents 2007 2008 2009

BFBC £5,174 £6,131 £6,318 Local Shopping Reit Plc. £13,011 £12,645 £12,127

Average Shop Rents 2007 2008 2009

(£ per square ft)

BFBC 6.11 7.24 7.46 Local Shopping Reit Plc. 11.99 11.72 11.45


Page 22 of 53

10.3.2 Industrial Investment Portfolio Benchmarking

The Council manages over 80 industrial units of varying size and quality within the Borough.

SEGRO Plc. (formerly Slough Estates) is a major public company listed in the FTSE index with considerable property holdings in Berkshire, West London and the South-East.

Portfolio Voids 2007 2008 2009

BFBC 0.36% 7.32% 9.0% SEGRO Plc. 10.9% 9.9% 10.5%

Average Rent £ p.s.f 2007 2008 2009

BFBC Market Street Units 5.20 6.00 6.00

Longshot Lane 8.97 8.75 8.75 Forest Park 12.00 10.00 10.00 Liscombe 12.40 12.40 12.40 Average 8.46 8.56 8.56

SEGRO Plc. Average 8.97 10.05 10.58

N.B. On 13th March 2010 The Estates Gazette published the following figures for Bracknell.

Industrial new lettings 2009 – 70,850 sq ft (this is a fall of 45.3% on the 2008 figure)

Average rent for 2009 - £8.00 per sq ft (this represents a fall of 8.6% on the 2008 sq ft)

Our average industrial rent is therefore 7% higher than other industrial rents in Bracknell and our voids remain lower than SEGRO Plc.


Page 23 of 53

11. CONCLUSION 11.1 This Corporate Asset Management Plan is an overarching document. It

focuses on delivering the Council’s Medium Term Objectives and other plans and strategies.

11.2 It recognises the importance of the contribution the Council can make to the climate change agenda and the benefit of working closely with both public and private partners.

11.3 The importance of property as a valuable resource is fully recognised and

value for money is always considered as part of decision making. 11.4 Property is recognised as a Council resource rather than belonging to a

specific Department. All areas of the Council contribute to the management of assets.

11.5 The Executive and Chief Officers recognise the importance of Asset

Management in delivering the Council’s objectives.


Page 24 of 53

Appendix 1

DEFINITIONS TO BE USED IN ASSET MANAGEMENT

SUFFICIENCY • Number, size and location of service points across the Borough in relation to

demand. SUITABILITY (FITNESS FOR PURPOSE) • How well premises meet the needs of service users and staff and management

contribute towards standard of the service provided. CONDITION • Physical state of the premises and grounds to ensure safe and continuous

operation. ACCESS • Accessibility of sites and accommodation by disabled people. HEALTH & SAFETY • The Health & Safety of users of buildings is also paramount in their effective use.

The Council has embarked on a 3 year programme which completed in March 2010 to update and improve all matters relating to: -

1. Fire Risk Assessments 2. Asbestos Surveys 3. Legionella Testing

VALUE FOR MONEY • Council’s assets are managed to provide assets: -

1. Fit for purpose. 2. Deliver better access to service users and outcomes for the community. 3. Mitigate adverse impacts on the environment and are resilient to climate

change. 4. Performance against similar properties.


Page 25 of 53

Appendix 2

LOCAL AREA AGREEMENT

ASSET MANAGEMENT SUPPORT TO ACHIEVE OBJECTIVES

• 26th November 2008 Assistant Chief Executive produces report to CMT entitled

‘Local Area Agreement Quarter 2 Performance Report’. • Chief Officer: Property considered report 24th November 2008 to ascertain where

Asset Management Policy could assist in delivering outcomes required by Local Area Agreement.

• Theme 2a – Sustainable Development

Outcome 8 – Improve Housing Delivery Measured through delivery of new homes and number of affordable homes. Disposal in 2010/11 of sites at: - ii) Bay Road iii) Santa Catalina Will assist in improving performance in this important area.

• Theme 2b – Protecting the Environment Outcome 9 – Tackle Climate Change Head of Building Surveyors briefed at Senior Team meeting (Property) of need to ensure that all building works consider: - i) Reduction of CO2 footprint ii) Improved insulation iii) Use of sustainable materials At the same meeting the Facilities Manager briefed on the need to take all appropriate action to promote recycling by staff across the Council’s offices.

• Theme 3b – Enjoying Life

Outcome 12 – Improving Sense of Place Corporate Property has acted on behalf of the Environment, Culture and Communities in the acquisition of Big Wood to improve facilities for residents and to protect this area from unwanted development.


Page 26 of 53

Appendix 3

SERVICE PLAN PRIORITIES AND ASSET MANAGEMENT EXAMPLES

PRIORITY ONE – TOWN CENTRE REGENERATION Project

Details Seymour House and Town Square properties Land at Market Street

These properties are identified in the masterplan for regeneration of the Town Centre for future redevelopment and subject to further discussion.

Enid Wood House In negotiation with Landlords to surrender lease to enable redevelopment, and regeneration of Town Centre.

Old Manor Car Park Disposal to Romans as part of Town Centre Regeneration.

Drug Action Team, Family Tree Nursery & Breakthrough

Options are being considered for the future of existing council services affected by the Town Centre Regeneration.

Garth Hill College The new school buildings and facilities will accommodate 1,550 pupils at a cost of £40m.


Page 27 of 53

PRIORITY TWO – PROTECTING AND ENHANCING THE ENVIRONMENT Project

Details Bay Road Site Disposal for Housing to a Housing

Association.

Santa Catalina Disposal for Housing.

Great Hollands Neighbourhood Centre

Provision of a new Youth Centre to provide an additional service point to compliment the existing six youth centres across the Borough. In addition, works will also be carried out to improve the appearance of the Neighbourhood Centre.

PRIORITY THREE – PROMOTING HEALTH AND ACHIEVEMENT Project

Details Business units at Market Street In discussion with Ashley House on

proposed Healthspace development.

Building Schools for the Future (BSF)

In 2007 DCSF approved grant for a One School (Pathfinder project in advance of the main BSF programme) and the project for rebuilding of Garth Hill College will be completed in 2010.

Primary Capital Programme (PCP)

DCSF have announced the first wave of funding for 50% of primary schools to be refurbished/remodelled. The PCP will also be used to create the additional capacity required to meet rising school rolls.

Sufficiency - School Places

Significant Capital projects to ensure that schools have sufficient accommodation to meet demand for pupil are mostly driven be the need to support housing growth in the area. Significant projects include: • New Post 16 Centre at

Edgbarrow • New Jennetts Park primary

school • Up to 5 new primaries and one

new secondary school to meet demand for places.

Adult & Community Learning The extension and refurbishment of


Page 28 of 53

Bracknell Open Learning Centre (OLC) was officially opened in Nov 2009. The new two storey extension added onto the south of the existing buildings has been refurbished to create improved access and internal circulation. Accommodation has been provided for Berkshire Maestros and the newly refurbished OLC accommodation provides suitable and sufficient accommodation to deliver the Adult & Community Learning Programme, including facilities for ICT, performance and drama, general teaching and also so cafeteria and a crèche.

Children’s Centres

Children’s Centres provide co-ordinated services and support for parents of children under 5 years of age. Located on the sites of primary schools, children’s centres link up nursery/reception classes with private pre-school childcare providers. Children’s health professionals also work on site providing support and advice to parents. The Children’s centres programme includes the following departments: • The Oaks (Fox Hill) completed • The Rowans (Great Hollands)

completed • The Alders (Owlsmoor)

completed • The Family Tree (Bracknell Town

Centre) proposed • The Chestnuts (Crowthorne)

proposed • The Sycamores (Crown Wood)

proposed

Trampoline Centre The Trampoline Centre at Brakenhale School was opened in November 2009. The project arose out of a Big Lottery Fund grant for sports and PE development and provides a hall with 10 full size trampolines. It has become the training base for the Edgbarrow Trampoline Club whose members include Olympic athletes. The facility will provide a community programme for all ages and the facilities will be fully accessible.

Brakenhale School Works to improve and refurbish the


Page 29 of 53

sports facilities at Brakenhale School completed in 2009. This project involved replacing the derelict artificial turf pitch, upgrading the playing fields, creation of new athletics facilities and refurbishing the sports hall. This has created opportunities for school pupils to access Leisure facilities, and for members of the public to access extended school facilities.

Sites set out below: Possible sites to support modernisation in adult social care Property Area Estimated

Timescale (From)

Comments

Winkfield Manor

5110sqm (1.26ac)

2011-2013 Situated in the green belt and therefore development is very restricted. Also some distance from town or amenities. Insufficient land for care village development. Maybe an opportunity for a partnership scheme with BFH.

Land adjacent to Binfield Nursery

5336sqm (1.3ac)

2011-2013 Close proximity to Binfield House and not far to doctors and Binfield centre. The site has very restricted access. Insufficient land for care village development. Maybe an opportunity for a partnership scheme with BFH.

Pondmoor Road Garages

2010-2011 Potential site for RSL to provide accommodation for general needs. Ground floor units may have potential for learning disabilities accommodation or accommodation for the disabled.

Craigholm 2010-2011 Existing supported housing potential for refurbishment for people with learning disabilities within the modernisation programme.

Council Depot

17000sqm (4.2ac)

2013 Report on future of Depot including disposal approved by C.M.T.

Garth approx 5 acres net

developable 2012 Site identified for disposal to help pay for

building the new Garth College with surplus monies being retained corporately.


Page 30 of 53

BFH Land 2011 A review of current sheltered housing schemes owned by BFH, such as Binfield House, Winkfield Manor etc, could result in a site becoming surplus.

PRIORITY FOUR – CREATE A BOROUGH WHERE PEOPLE FEEL SAFE Meetings with Police to identify and resolve anti-social behaviour and issues affecting tenants. Drugs and Alcohol Action Team work with young people. Neighbourhood survey projects, improvements to Council Buildings and Automatic Number Plate Recognition installations. CCTV in Town Centre. PRIORITY FIVE – VALUE FOR MONEY Surrender of Enid Wood House Disposal of properties surplus to requirements Flexible Working Strategy to reduce accommodation requirements – See Accommodation Strategy. Actively managing the Council’s Commercial Property Portfolio. PRIORITY SIX – SUSTAIN ECONOMIC PROSPERITY Council provides start up units at Liscombe Light Industrial Units and Forest Park Business Units to assist new businesses. The Council and Bracknell Regeneration Partnerships (BRP) are working together to deliver a major regeneration of the Town Centre. Crowthorne Enterprise Centre playing a significant role in economic development for business start-ups with flexible workspace, which is leased in by the Council and managed on its behalf by Oxford Innovations Ltd.


Page 31 of 53

APPENDIX 4

ASSET REGISTER AS AT 1/4/10

Number Date of

valuation Valuation

DIRECT SERVICE PROPERTY

Schools (excludes Voluntary Aided Schools) 31 1/04/2009 238,824,655 Pupil Referral Units 1 1/04/2009 2,093,070 Other Education Properties 1 01/04/2009 4,594,141 Education Children’s Centres 4 01/04/2009 3,447,215 Easthampstead Park Conference Centre 1

01/04/2007 & 2008 5,460,809

Libraries 9 1/04/2005 & 2007 & 2008 6,322,763

Housing for Homeless Families 2 01/04/2006 &

2009 263,462

Other Housing 8 01/04/2006, 2007, 2008,

2009 2,727,455

Residential Home and Day Centre 10 01/04/2005, 2007, 2008,

2009 13,639,611 Cemetery and Crematorium / Easthampstead Park 1 1/04/2009 3,844,710 Property Associated with Cem & Crem 1 1/04/2009 288,750 Youth centres and youth/community centres 6 1/04/2005 4,114,739

OTHER SERVICE PROPERTY (LAND AND BUILDINGS)

Council Offices

4

1/04/2007 & 2008 & 2009

15,029,292

Caretakers Accommodation 4 1/04/2006 &

2008 582,900 Property Supporting Residential Activities 1 1/04/2008 206,103 Public Conveniences 5 1/04/2006 393,363 Depots Including Nursery 4

1/04/2007 & 2008 10,068,937


Page 32 of 53

INFRASTRUCTURE, VEHICLES, PLANT &

EQUIPMENT Roads N/A 23,062,490 Traffic management N/A 1,588,216 Bridges N/A 12,564,753 Water and Drainage N/A 335,662 Street Furniture, Fixtures and Fittings N/A 3,771,540 Other Infrastructure N/A 710,947 Vehicles, Plant & Equipment N/A 35,613,865

COMMUNITY ASSETS Sports Centres and Pools 6 1/04/2008 42,700,795 Properties associated with Sports Centres 5

01/04/2006/ 2007 / 2008 /

2009 1,082,800 Scouts, Guides and Cubs 8 1/04/2003 De Minimus Community Centres 13 1/04/2003

De Minimus

Other Community Properties 1 01/04/2006 351,000 Other Leisure Properties 3

01/04/2005 & 01/04/2006 5,690,162

OTHER LAND & BUILDINGS

Car Parks 12 1/04/2006 & 2007 & 2009 15,918,226

Bracknell Market 1 1/04/2005 96,000 Service Yard E 1 1,000

INVESTMENT (COMMERCIAL) PROPERTY

Longshot Lane Industrial Estate 42 1/04/2008 509,600 Retail Parks 1 1/04/2005 6,277,200 Town Centre 8 1/04/2008 821,000 South Hill Park 1 1/04/2008 De Minimus Pubs 7 1/04/2005 1,645,000 Commercial Leisure 1 1/04/2008 121,450


Page 33 of 53

Property Other Commercial Property

3 01/04/2009 1,437,100 NON-OPERATIONAL

SURPLUS ASSETS HELD FOR SALE

Surplus Land Sites 3

1/04/2005 & 2008 840,000

Freehold Interest in Blocks of Flats over Shops 6 1/04/2008 De Minimus

OTHER NON-OPERATIONAL ASSETS

Bus Station Units 4 1/04/2009 De Minimus Bus Station 1 1/04/2009 De Minimus

COMMERCIAL PROPERTY HELD FOR

COMMUNITY AND ECONOMIC

DEVELOPMENT PURPOSES

Shops on Housing Estates 100 1/04/2008 4,704,810 Associated Residential with Shops 17

1/04/2005 & 2008 2,019,478

Dentists 2 1/04/2008 195,090 Business Units 42 1/04/2008 1,454,880 Miscellaneous 2

1/04/2005 & 2008 16,475


Page 34 of 53

APPENDIX 5

Summary of Capital Programme Report to Executive for 2010 1 Introduction 1.1 As part of the Council’s financial and policy planning process the Executive

issued its draft Capital Programme proposals for 2010/11 - 2012/13 for consultation on 15 December 2009. The main focus of the programme has been departmental spending needs for 2010/11, although future year’s schemes do form an important part of the programme. The Executive considered the results of the consultation on 16 February 2010 and has put forward its Capital Programme proposals to the Council. The financial implications of the decisions within this report are reflected in the Council’s revenue budget proposals for 2010/11.

2 Background 2.1 The Local Government Act 2003 requires councils to have regard to the

Prudential Code for Capital Finance in Local Authorities when setting their capital expenditure plans, which must be affordable, prudent and sustainable.

2.2 The proposed capital programme for 2010/11 has been developed, therefore,

with particular regard to affordability and the impact of the Council’s capital expenditure plans on the revenue budget. The financing costs associated with the General Fund Capital Programme have been provided for in the Council’s revenue budget plans.

2.3 In addition to those schemes funded by the Council, the capital programme is

supplemented by schemes funded by government grants and other external contributions. Details of these schemes are also included in the proposals for 2010/11 – 2012/13.

3 New Schemes 3.1 The Executive’s proposals for the Council’s Capital Programme for 2010/11 –

2012/13 were evaluated and prioritised into five broad categories in accordance with the Council’s existing Corporate Capital Strategy and Asset Management Plan.

Unavoidable (Including committed schemes) This category covers schemes which must proceed to ensure that the

Council is not left open to legal sanction and includes items relating to health and safety issues, new statutory legislation etc. Committed schemes are those that have been started as part of the 2009/10 Capital Programme. By their nature, schemes in this category form the first call on the available capital resources.

Maintenance (Improvements and capitalised repairs) The Council is responsible for a significant number of properties and

assets. As part of the established asset management planning process, property condition surveys are carried out and updated annually to assess the overall maintenance needs. Historically the Council has funded all Priority 1 maintenance works identified in these


Page 35 of 53

surveys. These represent the works that are necessary, within the next 12 months, to maintain buildings in beneficial use through the prevention of closure, dealing with health and safety items and potential breaches of legislation. The latest assessment based on condition surveys undertaken in 2009 identified a backlog of urgent outstanding repairs of £9.2m. However £4.1m of this requirement relates to schools and as such must be a first call on their capital resources. The Council has provided for an allocation within its Capital Programme as a contingency for where urgent works cannot be met from within their devolved budgets.

As such, based on the most recent survey data, £5.1m of the Priority 1

urgent repairs relate to Council buildings other than schools. Given the resource restraints of the Council, the Capital Programme is restricted to £2.081m (inclusive of Schools contingency) and as such this will result in £3.2m of urgent repairs being deferred to future years and increasing the overall level of backlog maintenance.

The Council recognises that the current approach is unsustainable and

if nothing changes additional resources will be required. However asset replacement and renewal over the medium term will alleviate some of the shortfall e.g. Town Centre renewal, Building Schools for the Future, Primary Capital Programme and the modernisation of social care. As such the Council will review the existing Asset Management Plans currently in place.

The implications of failing to maintain Council buildings and to address

the backlog will be a major issue for the Council over the coming years and efforts will be focussed on ensuring that the highest priority items are tackled first, that efficiencies are maximised in the procurement of works and that maintenance which will result in energy efficiencies are undertaken through the invest-to-save programme. The Council has already established an officer group to investigate options for future funding of maintenance.

Rolling programmes These programmes cover more than one year and give a degree of

certainty for forward planning schemes to improve service delivery. They make an important contribution towards the Council’s Medium Term Objectives and established Asset Management Plans.

Other Desirable Schemes In addition to the schemes identified in the above categories, each

service has requested funding for other high priority schemes that meet the needs and objectives of their service and the Council’s Medium Term Objectives. The net cost of schemes which attract partial external funding are included in the schemes put forward.

Invest To Save Schemes These are schemes where the additional revenue income or savings

arising from their implementation exceeds the additional revenue costs. The Council’s approach to Invest to Save schemes is included in its Capital Strategy and in accordance with the Capital Strategy a further £1m is included in the 2010/11 capital programme for potential Invest to Save schemes.


Page 36 of 53

3.2 A summary of the new General Fund schemes that have been put forward to be funded from the Council’s resources in 2010/11 is shown below This shows that the total net funding requested by each service totals £8.069m. A detailed list of these new schemes, for each service, is included in the Annexes A – E.

Capital Programme 2010/11-2012/13

Annex Service Area 2010/11 £000

2011/12 £000

2012/13 £000

A Corporate Services 0 55 0 B Council Wide 2,989 3,221 3,145 C Children, Young People &

Learning 1,065 1,060 1,000 D Adult Social Care & Health 375 0 0 E Environment Culture &

Communities 3,640 4,255 3,279 Total request for Council

funding 8,069 8,591 7,424 Externally funded and self-funded projects are excluded from the above.

In addition to the above the Executive recommended that an additional budget of £1.000m be approved for ‘Invest To Save’ schemes. Schemes funded from the LSVT Transfer receipt and a number of self-funding schemes are included within the Capital Programme and are all included within Environment, Culture and Communities Programme totalling £3.38m in 2010/11. The Council gave a commitment to spend 75% of the available receipt on new affordable housing and the 2010/11 – 2012/13 programme includes an allocation of £9.3m, with £1.28m earmarked for 2010/11. The remainder of the receipt will be used in subsequent years. The Executive agreed in October 2008 a £1m investment in the crematorium facilities in order to abate mercury emissions as required by new legislation. As a result of more up-to-date data, it is considered that funding of £1.1m will be required to complete this project. However the total funding request of £1.1m can still be self-funded, from increased charges, over the 20-year working life of the investment. The third self-funding scheme relates to the provision of mortgages for the purchase of low-cost home ownership properties in partnership with local Registered Social Landlords. The Executive agreed an allocation of £1m on the 17th November 2009 and this has been included within the 2010/11 Programme.


Page 37 of 53

Externally Funded Schemes 3.3 A number of external funding sources are also available to fund schemes

within the 2010/11 capital programme, amounting to an additional £24.65m of investment. External support has been identified from two main sources: Government Grants A number of capital schemes attract specific grants. It is proposed that all such schemes should be included in the capital programme at the level of external funding that is available. Examples include Building Schools for the Future and Local Transport Plan funding

Section 106 Each year the Council enters into a number of agreements under Section 106 of the Town & Country Planning Act 1990 by which developers make a contribution towards the cost of providing facilities and infrastructure that may be required as a result of their development. Usually the monies are given for work in a particular area and/or for specific projects. The total money available at present, which is not financially committed to specific projects, is £4.15m.

Officers have identified a number of schemes that could be funded from Section 106 funds in 2010/11. Under the constitutional arrangements, the Council must approve the release of such funding. However, this does not preclude the Executive bringing forward further schemes to be approved by the Council to be funded from Section 106 funds during the year.

Annexes A - E also include details of all schemes that will be funded from the

various external sources in the next year. 4 Funding Options 4.1 The Executive agreed to fund the proposals submitted by services from

borrowing, acknowledging that it was unlikely that the Council would need to resort to external borrowing as it will be able to utilise existing investments that represent the Council’s reserves and balances. The interest costs associated with this decision have been reflected in the revenue budget. Given the known revenue gap, Members will need to carefully balance the level of the capital programme in future years against other revenue budget pressures and a thorough review, including the prioritisation of those schemes planned for 2011/12 onwards, will need to be undertaken later in the year. Consequently, the programme for those years needs to be regarded as indicative only at this stage.


Page 38 of 53


Page 39 of 53


Page 40 of 53


Page 41 of 53


Page 42 of 53


Page 43 of 53


Page 44 of 53


Page 45 of 53

APPENDIX 6

PRIORITY GRADE DEFINITIONS NOTES

Condition Surveys are based on the following: Priorities: 1 Urgent Works 2 Essential Work 2 years 3 Desirable Work 3-5 years 4 Long Term Work Condition Codes A - Good B - Satisfactory C - Poor D - Bad

1D

Urgent Work to: i) prevent closure of premises (or part thereof) ii) address high risk to Health and Safety of occupants iii) comply with contractual or legal requirements.

2D

Essential work that should be done within 2 years to: i) prevent further significant deterioration ii) remedy defects that threaten continuity of service delivery iii) safeguard Health and Safety of occupants.

3C 3B 3A

Necessary work that should be carried out within 3-5 years to: i) prevent deterioration of the fabric and services ii) improve energy efficiency iii) replace or repair elements of high operational importance but no

structural significance. 4B 4A

Work advisable or desirable within the next 5 years but which, at the time of survey, could be delayed or which could be prevented by minor repairs.

At present condition surveys are undertaken annually but we are making change to the timings effective from 2010/2011. The new timings are as follows: • Key buildings and high risk properties surveyed annually. • Other essential service buildings surveyed every three years. • Non essential buildings surveyed every 5 years.


Page 46 of 53

APPENDIX 6.1

PROPERTY CONDITION SURVEY SUMMARY (from year 2006/07 survey)

Educ

ation

, Ch

ildren

’s Se

rvice

s &

Librar

ies

Envir

onme

nt an

d Leis

ure

Corpo

rate

Servi

ces

(incl.

Com

m.

Est.)

Total

(£’000) (£’000) (£’000) (£’000) Priority 1 2,720 808 300 3,828 Priority 2 Bad 5,730 3,375 517 Poor 5,132 1,365 365 Satisfactory 374 392 142 Good 35 64 50

Total of Priority 2 11,271 5,196 1,074 17,541 Priority 3 Bad 124 219 55 Poor 1,735 488 136 Satisfactory 416 534 186 Good 4 57 0

Total of Priority 3 2,279 1,298 377 3,954 Priority 4 Bad 214 25 0 Poor 526 38 4 Satisfactory 187 332 16 Good 0 0 0

Total of Priority 4 927 395 20 1,342 Grand Total 17,197 7,697 1,771 26,665


Page 47 of 53

APPENDIX 6.2


Educ

ation

, Ch

ildren

’s Se

rvice

s &

Librar

ies

Envir

onme

nt an

d Leis

ure

Corpo

rate

Servi

ces

(incl.

Com

m.

Est.)

Total

(£’000) (£’000) (£’000) (£’000) Priority 1 3,025 974 466 4,465 Priority 2 Bad 5,097 3,526 544 Poor 4,830 1,382 225 Satisfactory 341 488 157 Good 32 61 50

Total of Priority 2 10,300 5,457 976 16,733 Priority 3 Bad 124 89 0 Poor 2,216 525 113 Satisfactory 472 491 166 Good 4 58 875

Total of Priority 3 2,816 1,163 1,154 5,133 Priority 4 Bad 214 25 0 Poor 334 43 300 Satisfactory 191 301 2,066 Good 0 0 0

Total of Priority 4 739 369 2,366 3,474 Grand Total 16,880 7,963 4,962 29,805


Page 48 of 53

APPENDIX 6.3


So

cial C

are

& Lea

rning

Envir

onme

nt Cu

lture

and

Comm

unitie

s

Corpo

rate

Servi

ces

(incl.

Com

m.

Est.)

Total

(£’000) (£’000) (£’000) (£’000) Priority 1 3,499 1,045 228 4,772 Priority 2 Bad 5,960 4,047 996 Poor 4,635 1,509 222 Satisfactory 329 484 128 Good 23 59 0

Total of Priority 2 10,947 6,099 1,346 18,392 Priority 3 Bad 68 16 0 Poor 2,144 311 94 Satisfactory 475 440 2,491 Good 20 83 0

Total of Priority 3 2,707 850 2,585 6,142 Priority 4 Bad 214 25 875 Poor 299 43 300 Satisfactory 131 298 17 Good 0 0 0

Total of Priority 4 644 366 1,192 2,202 Grand Total 17,797 8,360 5,351 31,508


Page 49 of 53

APPENDIX 6.4


So

cial C

are

& Le

arning

Envir

onme

nt C

ultur

e an

d Co

mmun

ities Co

rpor

ate

Servi

ces

(incl.

Com

m.

Est.)

Total

(£’000) (£’000) (£’000) (£’000) Priority 1 5,947 2,472 1,311 9,730 Priority 2 Bad 4,536 2,860 2,610 Poor 4,757 1,716 241 Satisfactory 445 290 174 Good 29 59 0

Total of Priority 2 9,767 4,925 3,025 17,717 Priority 3 Bad 4 16 0 Poor 1,590 258 43 Satisfactory 376 412 166 Good 150 45 0

Total of Priority 3 2,120 731 209 3,060 Priority 4 Bad 14 25 5 Poor 265 43 300 Satisfactory 96 269 17 Good 20 0 0

Total of Priority 4 395 337 322 1,054 Grand Total 18,229 8,465 4,867 31,561


Page 50 of 53

APPENDIX 7

PRIORITISATION OF SCHOOLS DEVOLVED FORMULA CAPITAL BUDGETS Devolved formula Capital (DFC) is allocated by the Department for Education (DFE) to each school via the LA under a formula based on pupil numbers. The DFE stated purpose of DFC is to “provide each school with its own capital money to address its own priorities”. Further guidance states that DFC is given for improving the condition, suitability and accessibility of school accommodation AND, investment in ICT to support the curriculum. Discussions have already been held with schools with a view to agreeing a common approach to prioritisation of DFC funding, and to highlight the necessity for schools to use their DFC for the maintenance of school buildings. The initial response to the consultation undertaken during the 2009 Spring term has indicated that schools are “concerned about the lack of funding for planned maintenance” and that they “would argue that spending should be targeted on those areas where we can achieve the maximum impact on the quality of teaching and learning in the school”. The expectations of schools and the Council are not therefore fully in alignment on this issue, and we do not yet have an agreement in place with schools on the use of DFC. CYP&L does however have a very strong partnership working model with schools and is being used to address this issue. CYP&L advise, monitor and review how schools spend their DFC budgets, and schools are already spending the majority of their DFC funding on Planned Maintenance as illustrated on the diagramme below:

Schools DFC expenditure 2009/10

Condition, £859,280.68,

58%

Access,£3,654.00,

0%

Suitability, £429,280.34,

29%

Energy,£9,420.11,

1%

ICT,£52,100.00,

4%others,

£120,493.35,8%

ConditionAccessSuitabilityEnergyICTothers


Page 51 of 53

AFFORDABILITY It should be noted that there are 11 schools (34% of schools) that are unable to pay for their identified Priority 1 works. The total deficit of funding is circa £2m and the urgent works include roof repairs/replacements, boiler replacements, window replacements etc. These remain totally outside of the school’s ability to cover the cost of repair and or replacement and this funding gap must be addressed in order to avoid potential issues of Health & Safety, disruption to school operations including possible closures.

ADVICE & GUIDANCE TO SCHOOLS The following is an extract from the discussion document already issued to schools and included in the CYP&L Asset Management Plan: DOES THE SCHOOL HAVE TO USE ITS DFC FOR URGENT / PRIORITY WORKS? The answer to this FAQ from the DFE website is, “It is reasonable for the local authority to expect a school to contribute DFC to projects. This should be agreed locally and set out in the Asset Management Plan”. DFC PRIORITISATION Under local management rules it is for schools to decide how to prioritise this expenditure within the specific priorities set out by DFE, which are: “New buildings and other facilities, including ICT, or capital repairs/refurbishment in accordance with priorities set by each school and in line with the local Asset Management Plan”. In deciding how to prioritise this funding it is essential that schools do not neglect their buildings, but consider all their longer term premises and infrastructure needs, and the longer term benefits of improving them. Schools must deciding how to prioritise this funding in accordance with the guidance given in the AMP which includes proper consideration of the prioritised need under Condition, Suitability and Access. DFC is given for capital investment in buildings and ICT equipment. The government’s expectations for ICT are set out in Fulfilling the Potential: Transforming teaching and learning through ICT in Schools. DFC cannot be spent on other equipment unless this is incidental to, and at the margins of, a larger building project – for example, a project to provide new classrooms which requires directly associated fixtures and equipment. Expenditure on such equipment must not be a major part of the expenditure funded from DFC. DFC may be used to fund small capital projects; to pay for more substantial capital projects through accumulation over periods of up to three years, or as a contribution to a larger capital project where other funding comes from another source, such as the LA. In considering priorities, it is important to strike the right balance between what is essential and what is desirable. In prioritising the use of DFC, schools


Page 52 of 53

should allocate funding to projects which meet the eligibility criteria in the following order: 1. Urgent works to address compliance issues, such as Health and Safety or

works required to fulfil the schools obligations under legislation such as the Disability Discrimination Act.

2. Condition works, and schools should implement all Priority 1 works from

their condition surveys plus as many Priority 2 items as possible. 3. Upkeep of ICT by purchasing/renewing hardware and equipment.

Consistent with the guidance “Learning Teaching and managing using ICT” which can be viewed on the DFE website at: http://www.teachernet.gov.uk/wholeschool/ictis/

4. Lower priorities will be for each school to decide, but can include: • Suitability works from the Suitability surveys that link to raising educational

standards through the School’s own Development Plan. • Accessibility works from the Access Audits that link to targets in the

School Accessibility Plan. • Supporting the school workforce programme – and in particular projects

that address the implications of the National Agreement Raising Standards and Tackling Workload.

• Supporting the development of a broader, more flexible curriculum for 14-

19 year-olds.

• Making school fully inclusive, including measures to improve behaviour and projects for improved facilities for children with Special Educational Needs.

• Improvements to security, safety, protecting both people and property

• Improvements supporting better delivery of the curriculum, including specialist teaching areas such as science and technology, and interactive white boards.

• Support for pupils with behavioural problems.

• Staff accommodation for a larger and wider range of support staff, or improving accommodation to help teachers make the most effective use of time spent on key activities like planning, preparation and assessment; or providing innovative and flexible spaces for teaching and learning needs.

• The development of community use of facilities (Extended Services) and integrating education and other local authority services within the school. This can include investment in such areas as nurseries, childcare facilities, healthcare and lifelong learning facilities.


Page 53 of 53

• Improvements to social, play and recreational areas where these address curriculum or behavioural needs.

• DFC funding can be used for improvements to school grounds as well as

school buildings, with the exception of VA schools where it cannot be used for improvements to school playing fields.

Documents

CORPORATE ASSET MANAGEMENT PLAN 2009 - 2012democratic.bracknell-forest.gov.uk/documents/s27955... · corporate asset management plan 2009 - 2012 . version 1 corporate asset management