Issue - meetings

Report of the Cabinet Member Finance

The Cabinet Member Finance introduced the Asset Management Plan 2016/17-2020/21, as circulated with the agenda.  The Council’s current Asset Management Plan (AMP) had been due to expire in 2015 and the production and approval of the replacement Asset Management Plan had been deferred.  This was to allow time for consideration to be given to the advice and suggestions made by the Chartered Institute of Public Finance and Accountancy (CIPFA) following their review of the council’s approach to asset management.  The Asset Management Working Group (AMWG) had considered the replacement plan the previous week.  Council was now being required to specifically approve Appendix G of the report although the Cabinet Member would welcome comments on the report in its entirety. 

The Cabinet Member explained that a key recommendation of the CIPFA review was that the AMP should be a more dynamic, ‘living’ document which played a key role in the organisation. He believed effective asset management assisted the council in achieving its core objectives –

• delivering better services,
• helping to bridge the ongoing budget gap,
• helping to make the town a more beautiful, vibrant place,
• supporting the local economy,
• nurturing the town’s cultural life,
• providing more and better housing,
• and supporting the voluntary sector.

All of these threads were woven into the plan, together with policies and strategies to achieve them.

He stated that there were a number of things that were clearly required of an effective Asset Management Plan :

·         clear objectives (set out in the Asset Management Policy Appendix A)

·         clear performance indicators (set out at appendix J)

·         a series of policies and methodologies covering such things as :

roles and responsibilities

capital investment

planned maintenance

Disposals and rental policy

·         Procedures to ensure the decision-making processes are clear, considered and transparent.

The Cabinet Member referred members to appendix I of the report which set out a clear policy for carrying out and prioritising planned maintenance; he highlighted the fact that the CIPFA report recognised that CBC had made great progress in this area. He also commented that the CIPFA report was very positive about the cabinet member role in asset management, but it strongly recommended that the Asset Management Working Group be given a wider and more strategic role.  This recommendation had been accepted and made a crucial part of the decision-making process.  The Working Group would be encouraged not just to look strategically at the way assets were managed but also to monitor performance on a systematic basis.

The Cabinet Member also said that another significant feature of the Plan was that it proposed a clear policy and process for acquiring assets for investment purposes as set out at appendix G. He explained that this sought to smooth the process and seize opportunities where they arose, but without taking away the constitutional role of the Cabinet and Council in making property decisions.  He highlighted the importance of this if property income was going to be used as a means to do more than simply bridge the financial gap.  ...  view the full minutes text for item 10

Report of the Cabinet Member Finance

RESOLVED THAT

1.    The Asset Management Plan and supporting Appendices A to K be approved.

2.    Council be recommended to approve the policies set out in the Asset Management Plan.

The Cabinet Member Finance introduced the Asset Management Plan 2016/17-2020/21, as circulated with the agenda.  The Council’s current Asset Management Plan had been due to expire in 2015 and the production and approval of the replacement Asset Management Plan had been deferred.  This was to allow time for consideration to be given to the advice and suggestions made by the Chartered Institute of Public Finance and Accountancy (CIPFA) following their review of the councils approach to asset management.  The Asset Management Working Group (AMWG) had considered the revised plan at their meeting last week.     

A key recommendation of the CIPFA review was that the AMP should be a more dynamic, ‘living’ document which set out broad policies and principles and was supplemented by an Asset Management Strategy or Work Plan; setting the overall strategic direction for the property portfolio, rather than a ‘traditional’ AMP.  The AMP therefore, would be at the centre of all work, helping the council to achieve its core objectives in a range of ways.  To this end, an AMP along with a number of policies, strategies and methodologies had been devised, which, if adopted, would result in transparent decision making.  He noted that CIPFA had acknowledged the ‘great strides’ the council had made in terms of getting under control the physical condition of its property assets, which compared favourably with other local authorities and Appendix I (Planned Maintenance Policy) set out an approach which had been adopted some time ago.  CIPFA were positive about the Cabinet’s role and that of the AMWG, however, they felt that the terms of reference for this group should be widened to allow for a more strategic role, providing more challenge to the portfolio and its performance. Appendix G (Investment Property Portfolio and Decision-making Process) clearly outlined the policy and process for the acquisition of assets and set out to make the process more straightforward, which was important if this was going to be used as a means to do more than simply bridge the gap. 

The Cabinet Member Finance took this opportunity to thank his Property Services colleagues.  The team had been heavily involved in various things including the Midwinter development, the sale of North Place, the lease negotiations for Regents Arcade and the acquisition of Delta House and on a day to day basis managed £287m worth of assets.  Appendix C (AMP – Work Plan) was a comprehensive, yet challenging proposition efforts were being made to build resources within Property Services to enable them to continue to provide major support and even more so in the future. 

Whilst approval of the AMP would enable the council to move forward, it was important to note that many of the suggestions made by CIPFA had been put into practice some time ago.  

The Leader reminded members that this special Cabinet meeting had been convened so that the AMP Plan and policies could be tabled for approval at Council on the 4 April 2016.

Upon a vote it was unanimously

RESOLVED THAT  ...  view the full minutes text for item 5