Agenda item

A report by the Executive Director of Economy, Infrastructure and Environment.

The Committee is asked to review, comment on and support the Asset Management Policy and Strategy, and to provide any recommendations to the Cabinet Member.

38.1  The Committee considered a report by the Executive Director of Economy, Infrastructure and Environment (copy appended to the minutes).

38.2  The Cabinet Member for Finance and Resources introduced the report, noting that the Policy and Strategy documents together provide a framework for the Asset team and multi-disciplinary property development partner to manage the Council’s assets in the future.

38.3  The Executive Director of Economy, Infrastructure and Environment introduced the report and notes his thanks to the officers who worked on the development of the Policy and Strategy documents - Nick Smales , Director of Economy, Planning and Place, and Jo Twine, Asset Strategy Manager - but have recently left the Council. The Policy provides the overall mission and objectives of Asset Management, which the Strategy then takes forward alongside the wider aspirations of the Council to outline a high level action plan for meeting the objectives of the Policy.

38.4  The Committee made comments in relation to the Asset Management Policy and Strategy including those that follow. It:

·        Highlighted in relation to Centenary House Worthing that it was agreed prior to 2012 that the property, which is jointly owned by this Council and Sussex Police, was to be disposed of but this has not happened, and queried whether this new strategy will determine action in relation to the property. The Executive Director of Economy, Infrastructure and Environment explained the multi-disciplinary partner has been asked to assess the viability of the property for future redevelopment and this should take place in early 2019.

·        Requested that local Members be consulted at an early stage where substantial changes to property assets in their ward are being considered. The Executive Director of Economy, Infrastructure and Environment stated consultation with local members will happen and noted this happens at different times and in different ways dependent upon the asset. The Chairman highlighted it had been noted and minuted in previous Committee meetings that local members were to be consulted on any substantial property changes within their wards, such as a substantial change in use, surplus property declarations and key property acquisitions or disposals as appropriate.

·        Commented that it was understood an Asset Management IT system will be purchased and implemented as a result of this project. The Member sought assurance that the asset list being prepared would list the values of the properties on the register, and would also form the foundation for the fixed asset list used to record assets for the inclusion in the Financial statements in order to avoid asset reconciliation irregularities. The Executive Director of Economy, Infrastructure and Environment will enquire and provide this information to the Committee.

·        Commented that current working practices and ways of working differ considerably now to those in the past and urged officers not to underestimate how the workplace environment can encourage new ways of working and changes to HR practice. It would therefore be beneficial to link the asset strategy to HR work-based policies to ensure they align. The Leader supported this view and noted the Council currently holds some unsuitable buildings for modern working. Some significant changes could be needed in order to deliver the right service to residents at the right time, and the recent Grimsey Report 2 encourages councils to come into the town centre of their communities. Subject to business cases assets will be disposed of or invested in as needed.

·        Queried how changes to assets will be scrutinised in future following adoption of the Policy and Strategy documents e.g. by area or case by case, noted there is tension between financial return and social value of County property, and commented that PropCo does not have enough drive to bring significant income. The Executive Director of Economy, Infrastructure and Environment explained that this Committee scrutinises the Strategy, and he will monitor the action plans alongside the Leader and Cabinet Member for Finance and Resources to ensure that the objectives are being met. The Leader explained that PropCo involves lots of legal process so this takes time to establish. Assets have been managed and disposed of as required, but good corporate landlord processes are required for the future.

·        Queried whether the service area property representatives are from within the service areas or from the Finance Team. The Executive Director of Economy, Infrastructure and Environment clarified they are from within the service areas. The Council’s assets cost £25m per annum and the income received is small. The Estate therefore needs to become more efficient and if possible reduce the number of assets held in order to minimise costs whilst maintaining services, there will therefore be a challenge to the services on the property required for provision of services.

·        Noted that services and residents become attached to certain locations and urged that local Members be consulted at the earliest opportunity in order to avoid unnecessary inconvenience to residents or costs accruing elsewhere in the Council’s budget as a result. The Cabinet Member for Finance and Resources accepted this feedback and noted the service area property representatives should help to improve communication across Council services.

·        Commented that officers should also look at whether other organisations, community groups and services could share the buildings.

38.5  Resolved -

1)   That the Committee supported the Asset Management Policy and Strategy; and

2)   That the Committee’s comments as follows be taken into account by the Cabinet Member ahead of taking his decision:

     i.        That the Committee agree assets must meet the needs of the workforce and residents;

    ii.        That the Committee reiterate the need to consult with local Members on key property changes within their area such as a substantial change in use, surplus property declarations and key property acquisitions or disposals as appropriate;

  iii.        That the Committee review the progress made as a result of the implementation of the Asset Management Policy and Strategy at an appropriate time and that key decisions on property assets be subject to scrutiny at the appropriate time;

  iv.        That service reviews should be co-ordinated with the Asset Management Strategy and Policy;

   v.        That future-proofing be considered in decisions regarding assets; and

  vi.        That consideration be given to asset sharing with other organisations through the One Public Estate programme.