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Councillor Rivett, Deputy Leader and Cabinet Member with responsibility for Economic Development, introduced the item.
The Asset and Investment Manager summarised the published report ES/0443 which set out the work undertaken by Asset Management in line with the Asset Management Strategy and, specifically, addressed the policies for the purchase and construction of new assets; investment in existing assets; the transfer of assets to other organisations; and, the disposal of surplus assets. The Asset and Investment Manager added that the purpose of the Asset Management Strategy was to guide both Officer and Councillor decision-making over the next three years, in line with the East Suffolk Business Plan, and related to the day to day management, specifically the administration, compliance, acquisition and disposal, of property. The report outlined the progress made, to date, using the Strategy as a basis for the structure of information provided. The Asset and Investment Manager emphasised the important of the implementation of the Strategy and said that, as a team, a project delivery plan had been prepared to map how it was intended to deliver the Strategy, in practice; whilst there was a significant amount of work to be completed, this was reviewed every eight weeks formally and on a weekly basis informally.
The Asset and Investment Manager said an additional qualified chartered surveyor had been recruited to help manage the day to day work and additional training had also been undertaken to ensure Officers provided the most up to date professional advice to both Members and the Council's Senior Management Team. The Team had cross-referenced all newly uploaded asset data to ensure the Register remained current and a rigorous process of risk assessing every asset to determine its inspection cycle and to help improve Health & Safety information relating to the portfolio.
The Asset and Investment Manager, with reference to the Committee's remit for the item, advised that the Strategy set out a comprehensive process which included detailed due diligence, formal RICS Red Book (contains mandatory rules, best practice guidance and related commentary for all RICS members undertaking asset valuations) appraisals and additional considerations relating to funding etc. A checklist was included within the Strategy document to ensure all details were obtained and process was followed and recorded correctly. The Committee was informed that existing assets were continually invested in through the planned maintenance programme; this was a cyclical process which ensured all assets had an up to date condition survey and maintenance was budgeted in advance for scheduled repairs. There was also a comprehensive capital works programme which sought to revitalise assets or in some cases redevelop these for alternative uses. The Asset and Investment Manager said it was important that investment was not just the purchase of new assets but also included the up-keep of the existing portfolio.
With regard to the transfer of assets to other organisations, the Asset and Investment Manager advised that the Strategy outlined the potential for divestment to community groups and there was a specific process for Community Asset Transfers within the Strategy document. The Council had entered into discussions with various town councils and transfers of play equipment, open spaces and public conveniences to town councils that had expressed interest in owning and managing these themselves, had taken place.
The Committee noted that the Council's portfolio comprised a number of different assets and a significant proportion might be deemed as surplus. The Strategy set out a comprehensive process for the disposal of assets; the process outlined the general principles for disposal including site identification, discussion at the Asset Management Group, internal notifications, due diligence, valuation, building surveys and the formation of a business case for consideration by Cabinet. The Asset and Investment Manager said work was on-going to determine - on an asset by asset basis - whether these should be let, sold, re-developed or divested. Currently, twelve assets had been identified for potential sale and proposals to dispose of these assets would be prepared for consideration. In conclusion, the Asset and Investment Manager said the KPIs at the rear of the Strategy were reviewed on a quarterly basis with the responsible Cabinet Member to ensure continued progress with the implementation of the Strategy.
The Chairman invited questions.
A member of the Committee asked if there was confidence that all the assets were logged on the register and also asked how many assets were currently vacant and if Ward Members could be informed of these so that any innovative suggestions for their use might be sought. The Asset and Investment Manager said there was a comprehensive consolidation process to cross-check every asset and that she was confident all assets were registered. She added that vacant assets needed to be inspected and this included an assessment of possible reuse; a status report was then provided to the responsible Cabinet Member. It was confirmed that if Ward Members wished to engage in this process and had ideas to revitalise a vacant asset this would be welcomed.
Another member of the Committee welcomed all the work and progress made by the Asset Team. He asked if there were sufficient staff to deal with routine enquiries which, on occasion, seemed to take time to be replied to. The Cabinet Member for Economic Development said the response time was often dictated by the complexity of the enquiry.
A further member of the Committee thanked the Asset and Investment Manager for the scale, scope and detail of the Team's work which was, she said, very impressive. The member asked if Energy Performance Certificates were statutory and if the Council could enhance its activities to ensure the environmental impact of a property was reduced and in support of the Council's carbon reduction targets. The Asset and Investment Manager said there were aspirations around sustainability and low environmental impact properties.
Another member asked about the timescales of an asset transfer. The Head of Operations said this was dependant on the complexity of the transfer and the terms of any liability to maintain the asset which needed to also be assumed.
A member of the Committee said that the on-line asset map was a very useful and comprehensive tool and praised the hard work that had gone into creating it. He asked if it was possible to increase charges to use the online facility to recoup staff costs incurred in compiling it. The Cabinet Member hoped this might be considered when the Council reviewed and considered its fees and charges.
Another member of the Committee, with reference to paragraph 9.2 of the report, asked if members could be advised which were the 12 surplus buildings to be sold and the 134 areas of land for disposal, and if the Council was sure these were the appropriate actions with these assets the right thing to do. The Cabinet Member responded that, once considered views on each asset were formed, the Asset Team would be able to better engage with members.
There being no further questions or matters raised for debate, the Chairman moved to the recommendation which was proposed by Councillor Robinson, seconded by Councillor Topping and by unanimous vote
RESOLVED
That, a year after its implementation and having reviewed its progress, the Scrutiny Committee had received and commented upon the Asset Management Strategy 2019/23
8.20pm The Meeting was adjourned for ten minutes and reconvened at 8.30pm