Review of Asset Management

Policy and Review Topic Panel B

Review of Asset Management - Resources and Decision Making

Stephen Checkley - Head of Asset Management Service

2Putting People FirstPortsmouth City Council

Outline of Presentation

Introduction

Arrangements for Decision Making on property issues

Service delivery processes

Asset Management Service processes

Leader of the Council - Political

Resources

Capital Strategy

Medium Term Resource Strategy

Pressures and Opportunities

Monitoring and Review

Questions and answers


Arrangements for Decision Making within Services

Departmental Management Teams

Asset Management Group Representatives

Corporate Management Team

Portfolio Holders

Executive

City Council


Standing Orders and delegated powers

Management Board

Asset Management Group

Members Information Service

Executive

City Council

Arrangements for Decision Making within Asset Management Service


E x e c u t i v e( 6 W e e k l y )

I n f o r m a l E x e c u t i v e( W e e k l y )

L e a d e r s E x e c u t i v e M e e t i n g( 6 W e e k l y )

L e a d e r s B r e i f i n g( 6 W e e k l y )

F u l l C o u n c i l( A n n u a l )

S c r u t i n y C o m m i t t e e( a s r e q u i r e d )

P o l i c y a n d R e v i e w( P e r f o r m a n c e ) P a n e l

( a s r e q u i r e d )

H e a d o f A s s e t M a n a g e m e n t

D i r e c t o r O f F i n a n c e M e e t i n g( W e e k l y )

O f f i c e A c c o m m o d a t i o nG r o u p

( a s r e q u i r e d )

A s s e t M a n a g e m e n t G r o u p( M o n t h l y )

C l i e n t I n t e r l o c k M e e t i n g s

T e a m M e e t i n g s( M o n t h l y )

B u s i n e s s M a n a g e m e n t M e e t i n g sS u p p o r t S e r v i c e s

M a i n t e n a n c e T e a m L e a d e r s M e e t i n g( F o r t n i g h t l y )

P r o p e r t y M a n a g e m e n t T e a m L e a d e r s M e e t i n g( F o r t n i g h t l y )

D e s i g n T e a m L e a d e r s M e e t i n g( F o r t n i g h t l y )

F a c i l i t i e s M a n a g e m e n t T e a m L e a d e r s M e e t i n g( F o r t n i g h t l y )

S e c t i o n H e a d s M e e t i n g( Q u a r t e r l y )

S t a f f C o n f e r e n c e( A n n u a l )

M a n a g e m e n t B o a r d( W e e k l y )

C h i e f E x e c u t i v e H a l f Y e a r l y R e v i e w( A n n u a l )

B e s t V a l u e R e v i e w s( a s r e q u i r e d )

P M I B( a s r e q u i r e d )

C o r p o r a t e M a n a g e m e n t T e a m( W e e k l y )


Political Perspective Leader of the Council Councillor Gerald Vernon-Jackson

IssuesPolitical objectives

Review and disposal of Assets

Use/Re-use of resources - Service delivery

Level of resources - Landlords Maintenance

Support of Interest groups

MechanismsConsultation

Officers

Direct Involvement

Members Information Service

Delegated Powers

Executive and Formal reports


Review of Asset Management - Resources and Decision Making


Capital Strategy

Capital finance prioritisation methodology

Sources of Finance

Prudential Borrowing

Impact on Revenue budget

Option Appraisal

Life Cycle Costing


Medium Term Resource Strategy

Revenue budget process

Budget Pressures

Cash Limits


Monitoring and Review

Capital and Property Board

Capital Programme steering group

Asset Management Service Resources2003/4

122 FTE Staff

Gross Revenue Expenditure £14.7m

Gross Revenue Income £18.75m

Net Revenue Income £4m

Capital Expenditure £1.164m + £?

Capital Receipts £15.6m

11 Putting People FirstPortsmouth City Council


Property Management

20 Staff

Acquisition and DisposalCapital Receipts £15.6m

Management of Investment PortfolioIndustrial Income £397k

Retail Income £216K

Agricultural £12k

Offices £546K

Other £2.17m

Residential and Development work


Design

40 staff

Current SchemesNew special school £6.4m

Priory School Drama, Fitness and tennis Centre £3m

New Children’s home £0.9m

Paulsgrove Inside/Outside Project £0.46m

Neighbourhood nurseries (Sure Start) £1.925m

Solihull House Refurbishment £6m

Recently CompletedArundel Street Environmental Improvements £0.8m

Cumberland St. HomeZone £0.8m

Waterside School annexe £0.8m

Various Sports and Arts Projects £2.3m

Isambard Brunel Environmental improvements £0.9m


Maintenance

30 staff

Manage maintenance of operational property

Major Projects - boiler replacement/ school roofs

Reactive Maintenance

Compliance with legislation

Facility Management

35 StaffCivic Offices

Guildhall

THE WORK THESE TEAMS UNDERTAKE KEEP OFFICERS AND MEMBERS OUT OF JAIL


AMS Resource IssuesLandlords Maintenance - Revenue

1997/98 £2,217,110

1998/99 £3,138,700

1999/00 £3,183,400

2000/01 £3,130,400

2001/02 £2,866,500

2002/03 £2,379,800

2003/4 £2,361,500

2004/05 £2,887,600

2005/6 ?????????


AMS Resource IssuesLandlords Maintenance - Capital

1997/98 £370,000

1998/99 £0

1999/00 £0

2000/01 £0

2001/02 £750,000

2002/03 £750,000

2003/4 £750,000

2004/05 £750,000

2005/6 £7,547,000 ?! (Backlog)


Landlords Maintenance

Budget Growth 1997- 2004

Tender Prices 1997 - 2004

Building Costs 1997 - 2004

Retail Price Index 1997 -2004

+30.24% +52.23% (+3.4% 2004/5) +32.19% (+5.8% 2004/5) +18.81% (+3% 2004/5)


Landlords Maintenance

• A 22% INCREASE IN BUDGET IS NEEDED NOW TO KEEP INVESTMENT IN REAL TERMS THE SAME AS IN 1997

• THE PORTFOLIO HAS EXPANDED SINCE 1997

• BUILDING COSTS HAVE INCREASED FASTER

• MAINTENANCE BACKLOG IS SIGNIFICANT

THE PORTFOLIO IS NOT SUSTAINABLE


Pressures and Opportunities

Cash Limits

Building costsLandlords Maintenance

Design and Construction projects

Human Resources

In-house vs. outsourcing vs. insourcing

Incentives and Property Review

Re-use of Capital Resources

Risk


The Future

This………………………..? or this………………………….?


Review of Asset Management - Decision Making and Resources

Questions and Answers

Documents

Review of Asset Management