Corporate Asset Management Plan (Land and Buildings) 2008-2011

10. Asset Management Programme

10.1 Capital Programme

10.1.1 Capital projects relating to Asset Management

The Council’s Capital Strategy sets out the context for capital investment and the origin of funds. Excluding investment in schools, the following Capital allocations in Table 16 have been made in land and buildings for the 3-year Capital Programme starting in 2008/09. These exclude retention payments on projects substantially complete in 2007/08:

Table 16 - Extract from Capital Programme showing building projects

10.1.2 Financial requirements of Backlog Maintenance

The surveys associated with the Asset Development Register have identified a total imminent and essential backlog maintenance liability of £6.774m as set out in Table 8. This covers urgent health and safety and wind and water-tight works together with those that are due for attention within 2 years. It does not address work, which will need to take place over the next 3-10 years.

In addition there is a recurring need to fund work to boundary walls and fences and tidy up small unkempt areas of Council owned land. Whilst each is of limited significance, constituents concerns about un-maintained and often unallocated land often results in pressure being brought to bear through Ward members to secure action. A sum of £30,000 per year has been set aside from the backlog maintenance budget to cover this area. Administration by the Operational Asset Management Group will obviate inter-departmental discussions over ‘ownership’, speed action and enhance the attractiveness of the Borough thus meeting a key Council priority. It will also bring these specific areas of land to the group’s attention so that the potential for sale or lease can be examined.

Following a successful capital bid stemming from the proposal set out in the 2006-09 Corporate Asset Management Plan, the Council is in the middle year of a three-year Capital Programme allocation to tackle backlog maintenance from 2007/08 onwards. A capital bid to continue investment levels at £500k per annum has been submitted.

10.1.4

A sum of £500,000 has been included in the 2008/09 Capital Programme for opportunity purchases and a further capital bid will be made for 2009/10 onwards.

10.2 Revenue Programme

10.2.1 Planned and Preventative Maintenance

The Council recognises that annual planned maintenance is the most cost effective way of ensuring buildings are maintained in good condition. In common with most local authorities, Tameside has historically under-invested in planned maintenance with the result that a major backlog maintenance liability has accumulated. 

The intention over the period of this plan is to reinforce the need for targeted spend of the allocated budget on planned and preventative maintenance with a priority on statutory requirements to ensure that buildings are safe. A full picture of the level of compliance is being assembled centrally. As part of the Corporate Landlord Project all property budgets are being reviewed with a view to centralisation.

10.3 Conclusion

The Council has an excellent track record of successful asset management projects. Its overall aim is to ensure that use of its land and property is optimised in terms of service benefit, financial return and value for money.

During the currency of this 3-year plan, the Council intends to make a step change in the way it uses the operational portfolio to deliver the services of the future against a background of increasing demands for efficiency. There will be greater collaboration with our Local Strategic Partners and an increasing emphasis on ‘working differently’. This plan will be reviewed annually and issued as a rolling 3-year plan.

Ideally investment in improved maintenance standards will be self-funding out of sales of surplus buildings although every opportunity for partnership and grant funding will be taken.

Under the Corporate Landlord Project, the Council is seeking to establish new corporate property management arrangements bringing together resources, within a new structure, with responsibility throughout the property cycle, for acquisitions, procurement, disposals, and management and maintenance of all operational properties, with the exception of, schools & nurseries, and parks & open spaces.

This will entail major organizational and budgetary re-modelling. Once implemented, service delivery managers will be freed up to concentrate on core service delivery.

Details of the Project Plan and Programme Brief are attached at appendices A and B.