Review of Asset Management
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Transcript of Review of Asset Management
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Policy and Review Topic Panel B
Review of Asset Management - Resources and Decision Making
Stephen Checkley - Head of Asset Management Service
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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
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3Putting People FirstPortsmouth City Council
Arrangements for Decision Making within Services
Departmental Management Teams
Asset Management Group Representatives
Corporate Management Team
Portfolio Holders
Executive
City Council
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4Putting People FirstPortsmouth 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
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5Putting People FirstPortsmouth City Council
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 )
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6Putting People FirstPortsmouth City Council
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
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Policy and Review Topic Panel B
Review of Asset Management - Resources and Decision Making
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8Putting People FirstPortsmouth City Council
Capital Strategy
Capital finance prioritisation methodology
Sources of Finance
Prudential Borrowing
Impact on Revenue budget
Option Appraisal
Life Cycle Costing
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9Putting People FirstPortsmouth City Council
Medium Term Resource Strategy
Revenue budget process
Budget Pressures
Cash Limits
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10Putting People FirstPortsmouth City Council
Monitoring and Review
Capital and Property Board
Capital Programme steering group
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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
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12Putting 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
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13Putting People FirstPortsmouth City Council
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
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14Putting People FirstPortsmouth City Council
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
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15Putting People FirstPortsmouth City Council
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 ?????????
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16Putting People FirstPortsmouth City Council
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)
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17Putting People FirstPortsmouth City Council
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)
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18Putting People FirstPortsmouth City Council
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
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19Putting People FirstPortsmouth City Council
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
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20Putting People FirstPortsmouth City Council
The Future
This………………………..? or this………………………….?
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Policy and Review Topic Panel B
Review of Asset Management - Decision Making and Resources
Questions and Answers