Agenda item

Report RIM365 of the Executive Manager – Property

(Enclosure)

The Executive Manager Property presented report RIM365 on the Asset Strategy, Vision and Asset Challenge. PDG Members were being asked to note the contents of the report and provide feedback and views on an Asset Vision, and on the asset challenge in terms of the scoring methodology and matrix.

Members were informed that the current Vision Statement was focused on operational assets and that the current adopted Property Asset Strategy was due to expire in 2017.   With the new Corporate Plan having come into force in 2016 and the current Property Asset Strategy due to expire this year an opportunity was available to formulate a new Vision that would reflect the current objectives and wider ambitions for the future.

It was noted that 3.1.1 to 4.2.5 of the report set out the growth plans in line with the Council’s Corporate Plan 2016 – 2020 and highlighted the Council as being “Open for business” and “Commercially and Customer Focused”.  These outcomes were key to the future asset strategy and for focusing a vision for the property assets going forward.

Section 5 of the report referred to the challenges on all assets including operational properties and investment properties held in the Council’s portfolio.  The aim was to re-balance the asset portfolio through disposals of under-performing assets and invest into more prime assets that may have the potential to generate a more healthy return to support service delivery.

This provided an opportunity to move from the historic legacy of current property holdings and transform and modernise the asset portfolio. Reassessing the asset management along with combined reinvestment could be an important component in improving the asset performance, balance, and growth and sustainability of income and overall performance of the portfolio moving forward.

The Report contained information to help inform a debate about the asset vision for the revised Property Asset Strategy, post 2017, which would set a direction and context when formulating the Strategy.  It was anticipated that the revised Vision would incorporate the principles to be adopted and contain an Asset Management Plan that set out how property asset management would be delivered along with an action plan that would provide clear and measurable actions that could be implemented.

Formulating a Vision and what went into it would need to include a number of appropriate key words or phrases.  It was suggested that the Vision should enable a long term strategic vision, deliver corporate objectives, and set a direction for the asset portfolio. With a view to the Council owning, occupying or using properties that empowered excellent performance in the delivery of its services and Corporate Plan themes on behalf of its residents, businesses and visitors.  This could include co-location with other external organisations. Examples of how the Performance Criteria Scoring Matrix had been applied were provided.

The Executive Manager Property described opportunities that the current vision statement had created and had been acted upon. These included the Customer Access point and Library at Bourne, South West Lincolnshire Clinical Commissioning Group and their support contractor collocating at St Peters Hill Grantham, The current opportunity was with the DWP and Members were asked if they had a view about that possible co-location.  

Members discussed the issues regarding the property at Broad Street, Stamford; whether the adoption of a “Vision” would prevent similar issues from occurring again; whether all three PDG’s should be considering this issue; the robustness of the weighting selection; whether there would be opportunities to increase the Council’s assets; ensuring that the decision process for disposing of assets, such as public toilets, was transparent; the role of the Executive in respect of decisions on Assets, the need to ensure that the criteria was in place for considering such issues and whether this document would provide that guidance; that the Constitution provided guidance on who could make decisions on the disposal of assets.

Action Points:

a)      That the Resources PDG note the contents of the report, and

b)      That Members at a future meeting are provided with information on the Council’s current asset portfolio and a summary providing them with an understanding of why those assets are held.