Meeting documents

BATH AND NORTH EAST SOMERSET COUNCIL

Land & Property - Management Strategy & Policy Statements

Index of Contents

Foreword

Section 1 - Introduction

Section 2 - General Policies

Section 3 - Operational property

Section 4 - Schools

Section 5 - Non operational [Commercial Estate subject to external review 2006]

Section 6 - Surplus property

Section 7 - Development sites

Appendices

1. Surplus land procedure

2. Devolved working

3. Policy summary and index

4. Executive summary

5. Notional Lease or SLA

6. Property Services contact points

7. Glossary of property terms

8. Financial Arrangements

Foreword

The council owns significant operational property resources valued at around £300million at 2005 prices and the management of these resources provides an opportunity to improve performance both in revenue and capital terms.

The use of resources has been a significant aspect of the latest round of CPA and this will undoubtedly continue. The lack of an up to date Asset Management Plan (AMP) has also been identified as a weakness in our CPA assessment and this has now being rewritten.

The lack of an overall policy under which to carry out such improvements has been identified as a significant shortfall in both the Property and Legal Services (Property Services) improvement project and the Property Services Service Plan.

Such policy has now been produced and published following consultation throughout the council.

The overall aims and objectives of the policy are to address the following issues

A7 An allocation of every property interest owned by the council to an appropriate Head of Service (HoS) together with an assessment of the legal land holding powers and consequent appropriations.

A7 Clarification of the roles and responsibilities of occupiers, Property Services and other specialists within the council.

A7 Robust arrangements for financial management of the council's property assets including identification of all costs on a property by property basis and translating this into a single revenue charge covering all aspects of the costs of occupation of corporate estate property

A7 Setting the scene for the introduction of a performance model to challenge the occupation of property from the point of view of both quantitative and qualitative issues. Quantitative issues cover physical aspects of property ownership such as the condition and any repairs and maintenance including backlog wheras qualitative issues includes the suitability of the property for purpose and any sustainability issues.

There is still a considerable amount of work to be undertaken to implement fully the provisions of the policy and this will need help from HoS, finance managers and building managers but this is a considerable step forward in the management of the council's assets and provides a sound platform to move forward in this area.

BATH AND NORTH EAST SOMERSET COUNCIL

Land & Property - Management Strategy & Policy Statements

Section 1

Introduction

Bath & North East Somerset Council (B&NES) is a Unitary Authority comprising the administrative areas of the former Bath City Council and Wansdyke District Council. On Local Government Reorganisation (LGR) in 1996 B&NES also became responsible for the services provided by the former Avon County Council.

The vast majority of the services provided require land and property from which to operate. On LGR B&NES inherited all the property interests of the outgoing District Councils together with the property owned by Avon County Council within the geographical area of the new Authority. Short to medium term arrangements were entered into covering sharing of the headquarters buildings in Bristol and there are certain other joint arrangements in place under which one of the new Unitaries carry out the functions of the former County of Avon. Some of these joint arrangements are still in place and have property implications.

Currently B&NES owns some 1,252 properties with a value of£534 million as at September 2005. Proposed maintenance expenditure is £1.7 million for 06/07).

As well as operational properties which are used in direct service delivery there are a number of Corporate Offices which accommodate the Council's office staff as well as a large portfolio of Investments which produce a significant Revenue Income.

Management of the Council's property is delegated to the Head of Property and Legal Services under the scheme for delegations approved by the Council and posted on the CIS athttp://www.bathnes.gov.uk/BathNES/councilanddemocracy/councillorsdemocracyandelections/Constitution/default.htm

See below for the relevant extracts from the scheme.

Section 1 - Delegations to Responsible Officers

Section 2 provides a range of general provisions including a requirement for HOS to 93manage any allocated building premises or land94

The scheme also makes reference in Section 3 (Specific Authorisations) to Head of Property and Legal Services

93The acquisition, disposal and management of all interests in real property in accordance with such scheme (if any) as may be approved by the Council from time to time.94

This document, together with a detailed document setting out the delegated authority to staff within Property Services provides such scheme.

There are certain other minor references to property maintenance being delegated to Heads of Service in specific circumstances and also certain statutory functions are outside the responsibility of the Head of Property and Legal Services.

In addition to this Property and Legal Services (Property Services) manage budgets that have been devolved to service areas and in certain circumstances individual establishments.

In order to procure the best use of the council's property resources these delegations need to be exercised in parallel with service delivery considerations throughout the Council.

Context

This Policy is intended to be a high level document dealing with the principles of property ownership and responsibility. There are a number of references to property ownership and usage and the use of resources generally throughout the following documents

Corporate Plan

Best Value Performance Plan

Corporate Asset Management Plan

Comprehensive Performance Assessment (CPA)

Financial Regulations

Contract Standing Orders

Codes of Practice

Budget Management Scheme

Scheme of Delegations

The common thread running through all these references is the responsibility of Property Services to look after land and buildings with the occupier looking after day to day security and management of those buildings.

There are numerous detailed arrangements either in place or in the course of development and these will continue to have effect within the context of this property policy as a whole. Examples of this are the active management strategy for the commercial estate and the workSMART project.

This policy also provides the overall framework for the management of land and property in accordance with the council's corporate asset management plan, service plans and also other service or divisional initiatives and strategies. The existing objectives for property as approved by the Council as part of the Asset Management Plan in 2002 are reproduced below.

Purpose of the Policy

It will be seen from this introduction that property is a significant resource which is essential to provide the vast majority of council services. The full benefit of such a resource can only be realised as a consequence of proper and effective management.

The overriding purpose of this policy is to ensure that the council's property is properly managed, used and allocated in order to ensure that the full benefits of that asset are realised both now and into the future.

This document sets out to

Efficient and Effective Use

The efficient and effective use of property can be influenced by a number of high level factors and these feature throughout this document. In managing this process the policy needs to consider both service delivery and property issues particularly in relation to the following :-

Assessment of the efficient use of resources is becoming increasingly important for Councils as a whole and it is therefore important for there to be robust arrangements in place for the management of property resources.

Authors, Contacts, Help

The policy has been prepared by, and will be maintained by, the Asset Management Planning (AMP) group within Property Services.

Any queries relating to the content or interpretation of the policy should be directed initially to this team as under

Malcolm Grainger, Senior Valuer

01225-477947

malcolm_grainger@bathnes.gov.uk

Richard Long, Estates Manager

01225-477075

richard_long@bathnes.gov.uk

Head of Service, Tom McBain

01225-477806

tom_mcbain@bathnes.gov.uk

all the above based at

Northgate House

Upper Borough Walls

BATH

BA1 1RG

01225-477105 - reception

General contacts

See Appendix 6 for contact points within Property Services.

Policy Scope

Definition of Property

For the purposes of this policy the term property is used to describe any interest in land and/or property that the council has either granted or proposes to grant, or has either taken or proposes to take. Thus the policy includes land, buildings, rooms within buildings, rights of way, leases, tenancies, licences, easements, wayleaves, rentcharges, ground rents, - and all other possible interest in land.

Categorisation

Property is used in many ways to discharge the council's functions and responsibilities.

Within the council property is divided very broadly into 2 estates, the commercial and corporate estates. The commercial estate describes the large portfolio of properties held as investments, wheras the corporate estate is the collective name for the remainder.

The corporate estate is divided broadly into operational and non operational categories. Operational property can be said to be property which is required to discharge the principal front line functions of the council and includes schools, depots, and elderly persons homes etc. Non operational property includes the commercial estate but also other property held in the corporate estate but not required for front line service delivery.

The Chartered Institute for Public Finance and Accountancy (CIPFA) recommends property categories within these broad definitions as under. The council's property records are arranged in this way. The current numbers of properties in each category is given in brackets

1. Operational

Category 1 - Housing (1) - the council sold its housing stock to Somer Community Housing Trust in 1999, however one property could not transfer at that time for legal reasons.

Category 2 - Other Land and Buildings (390) - This includes the vast majority of direct service delivery property such as schools, libraries, residential homes, cemeteries, sports centres, museums and car parks.

Category 3 - Infrastructure Assets (22) - roads, bridges etc.

Category 4 - Community Assets (248) - parks and gardens.

2. Non Operational

Category 5 - General (538) - the commercial estate.

Category 6 - Surplus (73) - land and property specifically earmarked for disposal.

For the purposes of this policy the estate has been divided slightly differently. There is no need to differentiate between the operational sub categories described above, although schools are treated differently. Within the non operational categories there are separate policies for dealing with long term development sites within the commercial estate as well as surplus properties generally.

Application

As indicated above this policy applies to all land and buildings and it is important that it is understood by Heads of Service, Finance managers and Operational managers within all service areas of the Council. The main thrust of this however is towards the corporate estate with the commercial estate being subject to separate review, in accordance with section 5.

Document Structure

Thus in this Policy there are individual sections for

Core policy statements. (CP) (Section 1)

General policy statements. (GP) (Section 2)

Specific policy statements

o Operational property excluding schools. (SPO) (Section 3)

o Schools. (SPE) (Section 4)

o Non operational - commercial. (SPC) (Section 5)

o Non operational - surplus. (SPS) (Section 6)

o Non operational - development. (SPD) (Section 7)

Appendices

The policy has been produced as a series of linked documents. Individual extracts can be printed as necessary but it is intended that the primary method of access will be electronically via the CIS.

Each of the policies is prefixed with a reference number and appears in bold. Further narrative explanation appears immediately below the policy itself in italics.

Core Policies

Having considered the contents of the above Introduction the following core policies summarise the overall situation.

For the purposes of this policy the term property is used to describe any interest in land and/or property that the council has either granted or proposes to grant, or has either taken or proposes to take. Thus the policy includes land, buildings, rooms and spaces within buildings, rights of way, leases, tenancies, licences, easements, wayleaves, rentcharges and ground rents.

This statement clarifies the extent to which the whole policy applies. Any uncertainty over whether or not any matter is covered by this policy should be referred to the AMP group within Property Services. The commercial estate is subject to separate review with the main thrust of this policy being towards the corporate estate.

Management of the council's property as defined in CP1 is delegated to the Head of Property and Legal Services under the scheme for delegations approved by the council.

The scheme forms part of the Council's constitution which can be found athttp://www.bathnes.gov.uk/BathNES/councilanddemocracy/councillorsdemocracyandelections/Constitution/default.htm.  This policy provides the scheme for management of property set out in the specific authorisations in Section 3 of the scheme.

The overriding aim of this policy is to ensure that the council's property is properly managed, used and allocated in order to ensure that the optimum benefits of that property are realised both now and into the future and to ensure that the cost of occupation of property is properly accounted for.

Property is a significant corporate resource which is essential in order to provide the vast majority of council services. The full benefit of such a resource will only be realised as a consequence of proper and effective management.

In all dealings with property the council will seek to adopt best practice in terms of asset management planning and will ensure that all assets perform to their optimum. The primary responsibility in this respect rests with the Head of Property Services, unless the statutory responsibility rests elsewhere, who will ensure that either the costs of occupation are justified by the occupying service or that the financial outputs in themselves justify retention.

The purpose of this policy is to emphasise the importance of property as a genuine Corporate Resource. Service Delivery matters should be considered in the light of the principles of good estate management set out in this document and in consultation with Property Services staff.

BATH AND NORTH EAST SOMERSET COUNCIL

Land & Property - Management Strategy & Policy Statements

Section 2

General policies - applicable to all properties

Contents

Table of Contents to be inserted

This part of the general policies covers the way in which the Council's property interests are recorded and how properties are allocated to occupiers. It also confirms the delegated authorities that are in place and the way in which the asset register is maintained. Although the majority of this is internal to Property Services, HoS also have a responsibility to ensure that records are kept up to date, not only by being the local `eyes and ears' but by notifying Property Services where changes are undertaken that are initiated from outside the division.

In all dealings with property the Council will seek to adopt best practice in terms of asset management planning, see CP4 above. The Council, through Property Services, will comply with central government requirements for asset management planning and develop its own asset management strategy.

Having scored `Good' in the 2002 AMP there is no requirement to produce asset management plans at specific intervals in the future however Property Services is currently producing and updating a corporate asset management plan for 2006. Additionally the use of resources is now an increasingly important part of comprehensive performance assessment and the 2005 assessment included a mandatory requirement to have a plan in place. The new AMP will be maintained as a dynamic document.

There are no plans to produce plans for individual service areas, although best value reviews, improvement projects etc have property implications. Also the service planning process impacts on property ownership.

PROPERTY SERVICES will produce key performance indicators (KPI's) as required under asset management plans and any other Council wide or central government requirement.

The whole area of KPI's is currently under review and the council is participating in the current consultation being undertaken by COPROP. The indicators in the current AMP reflect the current requirements and will be developed as part of this consultation.

Additionally the Property Services balance scorecard is populated with a view to reflecting corporate objectives.

Management of the Council's property as defined in Section 1 (CP1) is delegated to the Head of Property and Legal Services under the scheme for delegations approved by the Council. Such delegations will be exercised in accordance with the principles of good estate management having regard to operational requirements.

Delegated authorities are dealt with in the Council through a scheme of delegations. The management of property is delegated to the Head of Property Services under the scheme. The scheme of delegations is a Council wide scheme which provides basically for each HOS to assume responsibility for all decisions within the service. This delegation is subject to certain general assumptions and there are also some specific provisions.

Individual arrangements apply for schools however paragraph 4.1 of the financial regulations for schools provides "The governing body cannot dispose of or acquire any land and buildings or any interest therein."

Paragraph 9 of the regulations sets out the arrangements for contracts for building work to be dealt with under delegated budgets. Such work can be dealt with by the school wheras non delegated budgets come under the normal arrangements.

Property Services operates a scheme by which the overall delegation to the Head of Property and Legal Services is further delegated to service managers, team leaders and individual members of staff within the division.

These arrangements take the form of a further delegation from that provided in the Council scheme to allow service managers and staff to deal with day to day projects in accordance with the procedures set up in the division.

Property Services will develop and maintain accurate and comprehensive records of all its property ownership including property in the course of acquisition and properties that have been sold.

Information held by Property Services will be treated confidentially but will be made available where possible. Property Services will continue with the development of these records, both within the division and corporately.

Records of ownership will also form the basis of the Council's asset register and schedules attached to the various property insurance policies as well as details of land holding powers and allocations amongst occupying departments.

Where projects are undertaken outside Property Services, project managers must ensure that the property records are up to date by informing the AMP group in Property Services.

Property Services include a small team responsible for maintenance and development of records held in the division. The development work, in particular the roll out of information held on a map based GIS is continuing alongside a major project to register all the Council's property interests at the land registry. This land registration project is currently funded from the capital programme and will result in large benefits across the Council. This project is likely to have a life of at least 4 years.

There is also a project to establish a corporate GIS and Property Services will have a considerable input to this process.

The series of core databases and the GIS provide the central location for much of the information needed for performance measurement and key performance indicators under asset management planning and other initiatives, in particular CPA.

The recording of assets owned by the Council is also a requirement under financial regulations 12 & 13 and code of practice 9. Financial regulation 13.1 places a responsibility on HOS to be responsible for the custody of buildings, equipment etc and for general security. Maintenance and other property management issues remain the responsibility of Property Services.

Records of property ownership will be developed to include the land holding powers under which the asset was originally acquired and/or the statutory purposes for which it is currently held.

All land and property acquired by any local authority must be acquired for a specific purpose and pursuant to the provisions of a specific piece of legislation. There is a general sweeping up provision under which land may be held for the general benefit of the area, however more specific powers are used in the majority of cases, for example education acts for schools and highways acts for roads.

Where an asset is transferred from one holding power to another then a formal appropriation will be carried out. See GP7 below.

Code of Practice 9 requires the Head of Property and Legal Services to maintain a record of all properties owned by the Council which details, amongst other things

Where a property is no longer required for the purpose for which it was originally acquired it will be dealt with in accordance with the surplus land procedure. Where an alternative use is identified rather than the property being sold then the property will be appropriated formally to the new holding power. Such appropriation will take place at a value assessed by Property Services and such appropriation recorded on the property database.

Property that is declared surplus and no alternative use identified will be allocated as such and dealt with in accordance with the surplus land procedure and the specific policies below.

Where any land is appropriated a debt charge equivalent to the value assessed above will be recorded in the Council's balance sheet.

The statutory purposes for which a local authority can acquire and hold land are too numerous to be included in this document, but it is not lawful for the authority to hold land unless that power is specifically conferred on it. There is however a general power under the Local Government Act 1972 to hold and use land for the benefit of the area.

See section 6 below and Appendix 1 for details of the mechanism for sales of property.

Valuations will be carried out to record the appropriation in the same way as the value of assets is assessed for the purposes of ongoing retention by a service.

See also reference to Code of Practice 9 above.

The property database will include records of the allocation of all property interests to the occupying HOS. The commercial estate is a self contained business unit and all commercial estate holdings are notionally allocated to the Head of Property and Legal Services.

Changes in allocation will be dealt with under the provisions of the surplus land procedure. Agreed changes will be the subject of a revised valuation and entry in the asset register.

Appropriations and allocations will normally take place at the same time.

Reallocation of a property may involve a corresponding reallocation or virement of any existing budgets associated with the property in question.

As well as the formal land holding powers under which a property is acquired or held all property is allocated to HOS. In the case of changes very often a reallocation will follow an appropriation but these are not necessarily linked.

Allocation of Properties to HOS will be recorded on the database and GIS data is also being developed to allow map interrogation of property assets by HOS allocation.

See also reference to Code of Practice 9 above.

As part of the development of these records and in order to confirm the base position, the current allocation will be reported to HOS for agreement prior to the situation being reported to the executive and/or Council.

Rental and/or capital valuations will be undertaken within PROPERTY SERVICES in accordance with the delegations in place within the division and the relevant professional standards including those of CIPFA and the Royal Institution of Chartered Surveyors (RICS).

Valuations of property interests are required for a number of reasons. The procedures in place in Property Services provide for all valuations to be undertaken in accordance with the relevant professional standards and for all valuations to be approved by a member of the RICS.

In relation to all land and property, Property Services will maintain a register of the Council's property assets and make such register available to the Head of Finance and Resource Planning for incorporation in the Council's accounts.

The register of all Council's assets is maintained by the Head of Finance and Resource Planning. In relation to property the register comprises valuations undertaken by Property Services. Such valuations are undertaken in accordance with the requirements of CIPFA and provide for a formal revaluation to be undertaken at least once every 5 years. Where there is a change of circumstances (eg an extension to an existing establishment or a reallocation) a formal revaluation will be undertaken at the time of such change and included in any appropriation.

The completion of the development of the asset register is described in the Property Services service plan for 2005/2006.

Property Services will maintain templates of standard leases and documents to be used in all transactions involving properties. All transactions should be in writing.

All agreements in relation to property should be in writing and generally handled by Property Services. The exceptions to this are room bookings and casual hirings eg football pitches where the occupying service will deal with the arrangements direct. In these cases the form of any document should be approved by Property Services in template form.

Property Services has developed a series of standard leases to reflect current law and practice and will keep these up to date in the light of evolving legislation and practice.

All rents and other fees payable under the terms of any lease or other occupational document will be invoiced and accounted for within Property Services. Amounts will generally be credited to the service area to which the property has been allocated.

Property Services operate a dedicated property management system (ECS) with automated links to the Council's financial management system. ECS is written specifically for property management purposes and includes such things as the automatic generation of interest on late payments and invoices for the reimbursement of fees incurred (both common occurrence in leases). Amounts invoiced by this method are entered onto the main FMS monthly in arrears and will appear on client reports in the usual way. Financial arrangements for casual lettings, room bookings etc should be raised by occupying departments using the Council's central sundry debtors system.

All documents must be signed by the appropriate authorised signatory. The Council's seal will only be authenticated in approved cases.

The signatory to any contract will generally be the Property Law Manager or authorised deputy. Leases, freehold transfers and the like require to be sealed and the Council's seal is held by the Solicitor to the Council and will only be authenticated in approved circumstances for which proper delegation is in place.

In the case of acquisitions the holding powers will need to be stated.

Where it is necessary, either due to workload or the specialist nature of a project, to employ a consultant to carry out work Property Services will appoint such consultant according to the current procurement rules.

Any fees and costs associated with the appointment of a consultant will be treated as an additional scheme cost.

Contract Standing Orders cover the appointment of consultants and set out the procedures to be followed according to the anticipated cost of any appointment.

Consultants are usually required where the nature of the project is outside the scope of expertise of Property Services staff, or where workload pressures dictate that a project cannot be dealt with in an acceptable timescale given the requirements.

Consultant's fees will generally form part of the overall scheme cost.

Part 2 of this section deals with the roles and responsibilities of both Property Services and occupiers in managing existing properties. This includes arrangements for dealing with maintenance, condition surveys and outgoings such as utilities, rates and insurance.

A fully inclusive annual revenue charge will be made against each HOS for the occupation of each asset. The charge will be fully inclusive of all property costs.

The components of the asset register form the basis for a revenue charge to services which effectively comprise the cost of occupation. At present this is not real in that no budget exists to fund such charges however as part of the implementation of this policy budgets will be allocated from which the charges will be paid. Any revenue charge will be fully inclusive and include all property outgoings including

This policy will need to have regard to other policies relevant to the above factors. The above reflects good business practice and will help to incentivise rationalisation and encourage the effective use of property assets.

PROPERTY SERVICES have completed a programme of condition surveys which will provide detailed information concerning the condition of buildings and their individual elements. The results of these surveys will form the basis of decisions concerning prioritisation of maintenance responsibilities which will ensure that the maintenance of all land and buildings is effectively targeted.

Completed surveys are sent to the occupier together with a summary of any urgent items. Surveys are updated on an annual basis in conjunction with building occupiers.

On a day to day basis occupiers will report any issues regarding disrepair or any other irregularities to Property Services.

Condition surveys provide a comprehensive assessment of the condition of every element of buildings. The results are stored on the property database and used as a major source for property decisions. These surveys are updated annually in liaison with building occupiers to identify any points of concern as well as to keep the detailed information in the conditions surveys up to date. On a more day to day basis occupiers are responsible for reporting faults and the need for day to day repairs and occupiers are also encouraged to be the local eyes and ears to notify Property Services of any other property matters that may require to be investigated.

Outside the requirements for condition survey visits it is not considered that there will be a need for regular inspections although individual inspections may be necessary for specific purposes. Occupiers will give Property Services and other staff access on reasonable notice taking into account any operational requirements.

Specific inspections may be necessary for such things as reassessment of the insurance reinstatement cost particularly where circumstances have changed.

As part of the programme of condition survey visits outlined above Property Services will attempt to identify any encroachments and possible claims for adverse possession and deal with any occurrences in a way that protects the Council's interests.

Occupiers of property are required to monitor and report any potential cases to Property Services in order that appropriate action may be undertaken in an acceptable timescale.

Encroachments include boundary adjustments undertaken by adjoining owners without regularisation and the unauthorised occupation of land by third parties. Adverse possession describes the legal status of an occupier who may have acquired rights to remain in property over a period of time despite having no documentary title.

It is impractical to carry out regular and routine inspections of all boundaries and it is therefore important that all officers of the Council are vigilant and report any instances to PROPERTY SERVICES without delay. Financial Regulation 13.1 and Code of Practice 16 (Security) oblige HOS to be responsible for the custody of all buildings. It is important that these matters are actioned in a timely manner in order to protect the Council's interests.

The repairs and maintenance budget is provided to deal with all responsive repairs to property. Planned maintenance will normally be undertaken in accordance with an allocation from the capital programme although other external sources may be available. Specific provision will need to be made in certain circumstances to deal with new legislation etc. In the case of certain properties maintenance budgets have been devolved to the occupiers.

Both the planned and responsive maintenance budgets are set each year as part of the overall budget process. Planned maintenance will be prioritised largely using data from condition survey and take into account where possible the results of liaison with building occupiers as part of the process. The prioritisation of repairs and maintenance will also have regard to any backlog recorded and also the normal life expectancy of any particular component as well as the suitability of the property for the occupier. Requirements over and above these usual standards, either in terms of timing or quality, may be considered on a fully recharge basis.

PROPERTY SERVICES will operate a helpdesk facility and a rota of duty surveyors ensuring access to appropriate advice during normal office hours. In emergencies occupiers can contact Action Line.

The vast majority of responsive maintenance will be generated from occupiers by contacting the helpdesk. In the case of minor works the matter will normally be dealt with by raising an order against one of the Council's regular contractors. In more substantial cases it may be necessary for the surveyor to visit before deciding on remedial action.

PROPERTY SERVICES will maintain a programme of planned maintenance to undertake cyclical repairs and decorations to all properties.

Planned maintenance covers such things as regular redecoration, particularly of the exterior of buildings and periodic maintenance to prevent deterioration, for example replacing the covering of a flat roof at pre determined intervals.

Such works will be programmed using condition survey and other data held on the property database.

The Council will ensure that all legal and statutory requirements placed on it or on any tenant or other occupier, in relation to the use, occupation or management of property will be complied with.

In the case of requirements that become the responsibility of the occupier, Property Services will ensure that such occupiers are fully aware of any additional responsibilities.

It is important that the Council not only complies, but is also seen to comply with all obligations. New legislation is constantly imposing additional obligations on property owners and occupiers.

Where additional responsibilities are imposed and this cannot be complied with from within existing budgets a submission will be made for an allocation from the capital programme. It is also important to make sure that occupiers are aware of the circumstances and put in place processes to deal with such responsibilities. Where necessary training will be given and specific documents issued to cover any responsibilities.

The Council carries block insurance policies to insure all land and property and Property Services will ensure that cover is maintained in relation to all relevant property. Where the responsibility to insure rests with a third party, for example a tenant, Property Services will ensure that such Insurance is in place. Where the cost of Insurance can be passed on to the tenant, this will be invoiced as additional rent or service charge as appropriate.

For operational property occupying HOS will receive a charge for the cost of insurance including an additional amount as a contribution to self insurance of any excesses.

Claims must be submitted to Property Services and the insurance officers without delay in order to ensure that claims can be substantiated. In the case of emergencies essential works will be put in hand immediately.

Actually putting in place and maintaining the insurance cover is the responsibility of the Council's insurance officers, with Property Services ensuring the adequacy of the cover. The level of cover is indexed annually to reflect increases in building costs and each time there is a change in circumstances a complete reassessment is carried out. Where alterations, extensions etc are carried out by schools or other HOS using delegated budgets it is important that the insurance consequences are considered at the outset. In particular where there is a building contract the responsibility for Insurance may be with the contractor during the course of the contract but it is possible under the terms of the contract for the Council to be responsible for such insurance during the building period.

In certain cases, particularly the major developments and some old leases, the tenant or some other third party will be responsible for carrying the insurance. In these cases Property Services will write to obtain confirmation of cover on an annual basis.

Where the insurance is under the Council's block policy the vast majority of leases provide for the cost to be recharged to the tenant as additional rent or as part of any service charge. As soon as the costs are known an additional Invoice is generated for these amounts.

In order to adhere to the policy terms it is important that any potential claim is reported to Property Services immediately.

In view of the perceived high risk in insuring some categories of buildings insurers impose high excesses in relation to these properties. Lowering of these excesses would result in vastly inflated premiums and so the Council operates what comprises in effect an element of self insurance to fund any excesses imposed as part of a claim. This self insurance is funded by increasing the charges to occupiers above that which the Council pays the insurance company.

The provisions for the payment of property outgoings such as rates, utilities, insurances and maintenance are far from consistent. Efforts will be made to rationalise and improve this area in the future as part of the arrangement to account for the cost of occupation. In the meantime in order to identify total expenditure and income on a property by property basis all postings to Agresso must include the Property Services Reference Number (PSRN) as the third attribute.

There are different arrangements for the payment of property outgoings at present. Day to day responsive maintenance is funded from the Property Services repairs and maintenance budget. Some buildings in multiple occupations are managed by the facilities management area in Property Services, wheras in individually occupied buildings many of the services are funded and managed directly by the occupiers.

There is always going to be a line that needs to be drawn between property and non property Expenditure. As part of any rationalisation accurate definitions will be made so that transactions can be categorised correctly.

In order to be able to identify all transactions in relation to a particular property it is imperative that postings include the appropriate attribute. Individual properties can be identified using the job code derived from the unique property identifier or PSRN. This attribute is the third attribute on Agresso and titled `PropCode'. Outgoings will be paid by Property Services and recovered as part of the overall occupation charge.

Where the Council owns a property and also supports the occupier by grant aid or other means all such grants shall be transparent to the occupation of the property. The arrangement for dealing with these concessionary lettings has been approved by the management board and will shortly be embodied in a published document.

The Council has various organisations that occupy Council owned property and who also receive financial help in the form of grant aid towards property and other costs. In these circumstances it is important that the terms of the occupation reflect the full value of the property and that the grant or subsidy is identified separately.

The concessionary lettings scheme achieves this by quoting the full rent in the lease and then immediately crediting the subsidy that is being paid by the service area that is sponsoring the organisation. The tenant is then left to pay the net amount from its own resources.

In the particular circumstances of these occupations the responsibility for repairs and maintenance may be retained by the Council.

In all aspects of the management of the Council's property regard will be given to the aims and objectives of the corporate plan.

Operational property is held primarily to enable service delivery however wherever possible the wider aims and objectives will be supported.

Non operational property, particularly the commercial estate, also provides opportunity to support the wider objectives of the Council, for example by supplementing the powers of the Council as planning authority.

Further examples of the way in which the Council's objectives can be enhanced through property management include income generation which can be used to provide resources for service delivery and the use of underutilised property, particularly upper floors, for residential purposes.

All such initiatives need to remain financially viable, and any alternative use which results in a loss of value will be required to be funded by the appropriate service area.

This overall property policy will have regard where possible to all other policies and working documents developed to cover specific circumstances.

Across the breadth of Council services there are a large number of individual policies and practices governing individual aspects of service delivery. The property policy will supplement all such specific matters of guidance.

This section covers how to deal with changing circumstances where for example there is an operational requirement to expand a particular holding, deal with the reallocation of surplus land or ultimately buy or sell property to maximise return or performance.

Property Services will advise and participate in all best value reviews, improvement projects, individual service plans and any other individual strategy or initiatives from property occupiers.

Property Services will promote ongoing review of property interests where required.

Council service areas have been the subject of individual best value reviews and there is currently a series of improvement projects scheduled. Each service is also responsible for the production of service plans and these provide a statement of service objectives for the forthcoming year. Property Services should be involved in such projects to the extent that property is affected. The estates team within Property Services will be the first point of contact. It is the responsibility of all property occupiers to involve Property Services at an early stage in these projects.

Property that is no longer needed by a particular HoS will be declared surplus and dealt with in accordance with the surplus land procedure.

See Section 6 and Appendix 1.

Where a property is no longer required by the HOS to which it has been allocated, the HOS is required to declare it surplus. In these cases the property will transfer to non operational - surplus and be dealt in accordance with detailed arrangements set out in Section 6 and the surplus land procedure (Appendix 1). This will include the property being notionally allocated to the Head of Property and Legal Services with all associated expenses being funded from the repairs and maintenance budget. This budget will accept virements relating to any property or service budgets held by occupiers at the time the property is declared surplus.

Surplus property will then either be reallocated or sold in accordance with the surplus land procedure.

PROPERTY SERVICES will carry out negotiations to acquire an interest in land where such interest is required in connection with a specific scheme for which a budget has been provided in the capital programme or elsewhere.

Where the possible requirement has been identified as part of any scheme it is important that Property Services are asked to investigate the ways in which such requirement may be satisfied at the earliest opportunity. Any requirement may be moved forward by the acquisition of an interest in non Council owned property however there may be other more cost effective solutions involving alternative strategies, for example a reallocation of existing accommodation.

The Council will only promote the creation of a Compulsory Purchase Order (CPO) where negotiations to acquire an interest have not been able to reach an agreement or where the proposed assembly of the site makes such a course of action the best way forward.

The Council is able, in certain circumstances, to acquire property by the use of CPO powers. Every effort will be made to acquire property by agreement but in cases where it is not possible the Council will consider using CPO powers. These powers may also be applicable in complex land assembly cases, ie where a large number of interests are required in order to acquire a site for a specific scheme. Compulsory purchase is only available where the relevant legislation allows.

Where a requirement is for a limited period or where the market for the type of accommodation is predominantly leasehold the Council will consider acquiring a Lease rather than a freehold.

Certain types of accommodation such as offices are generally available for Lease via a commercial landlord. There may be a limited market for freeholds but it may be impossible to acquire such an interest. Also certain requirements may be specialist or new and in these circumstances a leasehold acquisition may be more cost effective. In determining the length of any lease to be acquired regard should be had to how permanent such a requirement is, the level of fitting out or other capital expenditure necessary, and in the case of offices how the proposed lease would fit in with the time profile of other leases.

All disposals will be undertaken in accordance with the surplus land procedure. The presumption, in the case of former corporate estate property, will be for a freehold disposal.

Where a property is declared surplus to requirements it will be dealt with in accordance with the surplus land procedure. Generally a former operational property with no particular Finance and significance will be sold outright. In certain cases it may be preferable from an estate management point of view to retain an element of control by granting either an occupational lease or a long lease with the appropriate safeguards.

For the commercial estate different considerations apply. Generally any property or part of a property that falls vacant for whatever reason will be relet on an occupational lease. Properties that have been designated as developments will generally be let, following a building agreement, on a long lease.

Section 123 of the Local Government Act 1972 generally provides for any sale to be at `best consideration'.

Disposals resulting in a capital receipt will generally count towards pooled targets. In certain circumstances, as part of the property review process, receipts from disposals will be allocated to individual services in accordance with previously defined arrangements, or form an element of the overall scheme.

The way in which receipts are treated will depend very much on circumstances. Where the disposal is as a result of a property no longer being required then the receipt belongs to the Council as a whole. Where the proceeds are part of the overall scheme viability then it is acceptable for such proceeds to form part of, for example, the cost of providing replacement accommodation.

Proposals to improve existing property either by refurbishment of existing buildings or extending the size of property will be considered as a means of making best use of resources. Such schemes will normally be funded by the capital programme but other external sources may be available.

Property Services will assist in any such proposal in the form of estimates of land acquisition costs, building costs as well as the scheme viability, for example the likelihood of obtaining planning consent.

In specific circumstances individual services may fund expenditure and works either using the services of Property Services or by commissioning work direct. In the latter circumstances all such work must follow the procedures for devolved working set out in Appendix 2.

The consideration of changing requirements for accommodation either in a single holding or over a range of ownerships may involve making better use of existing resources by improving the existing stock. This will be considered alongside proposals for relocation and any other potential solutions.

The majority of work would be commissioned and managed by Property Services although in certain circumstances departments have an element of discretion in The Use Of Devolved Budgets. In These Circumstances It Is Imperative That PROPERTY SERVICES are involved in all stages of the design and construction process.

There are a number of reasons for this, notably the need to ensure that designs are formulated having regard to existing data regarding such things as the existence of asbestos and the proposals for discharging any statutory requirements for example the Disability Discrimination Act and that property records are ultimately kept up to date. The arrangements in Appendix 2 give more detailed instructions to cover this.

BATH AND NORTH EAST SOMERSET COUNCIL

Land & Property - Management Strategy & Policy Statements

Section 3

Specific Policies - Operational Property

Operational property is that dedicated to direct service delivery eg Offices, Depots etc.

Schools are subject to specific arrangements, see Section 4.

See the Introduction for details of the way in which CIPFA categorises properties between operational and non operational.

Properties are allocated to HoS and recorded as such on the property database. Such occupations will have regard to the detailed provisions in SP O10 below which sets out responsibilities in detail.

Allocations by Property Services are put in place in accordance with the general policies above. The summary good stewardship guide in SPO 10 below attempts to anticipate as many situations as possible relating to the occupation of property and sets out detailed instructions in each case.

HoS are responsible for the day to day management and custody of buildings allocated to them. Where a property has not been declared surplus but all or part is physically void then this responsibility remains with the occupier.

This confirms the position as set out in Financial Regulation 13 and Code of Practice 16. It is necessary to advise Property Services of any physical voids in order that insurance cover may be maintained by adhering to the conditions imposed by insurers.

Repairs and maintenance is funded from budgets held by Property Services. Day to day outgoings such as rates and utilities are generally discharged by occupying departments. Implementation of the policy will make changes to this to draw property costs to the centre.

This existing situation is unsatisfactory and it is suggested these arrangements be rationalised. See GP 24.

Maintenance of operational property will be dealt with by Property Services under the provisions of GP19, 20 and 21.

The repairs and maintenance budget is administered by Property Services and includes all responsive maintenance. Individual items are actioned following notification by occupiers to Property Services Helpdesk.

Certain minor alterations and improvements may be funded by Property Services as maintenance wheras generally significant projects will need to be the subject of an allocation from the capital programme or some other external source.

Anything over and above routine maintenance will need to be the subject of an allocation following preparation of an acceptable business case. Any proposal to extend or alter operational property will need to include alternative solutions in particular whether any requirement can be satisfied using any alternative solution involving other property.

As part of proposals to reallocate office space regard shall be had to the Council's workSMART project and particularly the movement towards flexible working, hot desking, home working and also established space standards.

The Council has long term aspirations to rationalise office space and concentrate accommodation in a smaller number of locations.

In a small number of the larger corporate offices Property Services facilities management provide overall building management services such as security, cleaning, post facilities etc.

This currently applies to the Guildhall in Bath and Riverside/Town Hall at Keynsham. Such arrangements are to be the subject of rationalisation alongside the question of repairs and maintenance and outgoings generally.

Formal occupations which create an interest in land will be dealt with by Property Services and documented by a lease or licence. Casual bookings may be undertaken by occupying departments direct, accounting for any proceeds through the Financial Management System.

This policy is intended to cover day to day and casual arrangements such as hiring of sports facilities, football pitches, allotments and the like.

The following table summarises the provisions of the policy as they relate on a day to day basis to building occupiers. The table is divided into 2 parts, including responsibilities and accountabilities placed on both the building occupiers and also Property Services.

This can be used as a quick reference guide for the majority of day to day matters and can be regarded as effectively the SLA or notional lease by which the occupation is regularised. This is reproduced in Appendix 5.

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Land & Property - Management Strategy & Policy Statements

Section 4

Specific Policies - Schools

This section of the policy applies to all Schools as defined in the property database.

Currently there are 71 Primary Schools, 15 Secondary Schools and 7 Special Schools in the B&NES area.

Although in many respects schools enjoy individual arrangements as set out in the remainder of this section, the provisions of section 3 - operational property also apply at least insofar as they are not in conflict with this part of the policy.

In general the policies set out in section 3 apply to schools however specific provisions in this section take priority.

The pattern of land ownerships within individual schools and across the local education authority is complicated through a combination of relationships with the local Diocese' and other trustees in line with the Education Acts together with historical factors. The legal title for many of the Schools will be held by the Council however there are a number where such title will vest in 3^rd parties. Such arrangements will impact on the way in which management of individual schools is undertaken.

Schools are generally categorised as under,

The ownership position in respect of any individual school should always be checked with the Estates team in Property Services in case of any variation from the norm

There is a separate set of financial regulations and contract standing orders for Schools.

Financial regulations provide (Regulation 4) 93The Governing Body cannot dispose of or acquire any land and buildings or any interest therein.94 Such activity is the responsibility of Property Services.

Regulation 9 deals with Contracts for building works and provides arrangements for Schools to undertake projects using delegated budgets.

The publication `Property matters for schools' published by the Building Consultancy in Property Services gives a lot of detailed information concerning the roles and responsibilities set out in this section.

This book was published in June 2005 and was distributed to all schools and key staff within the education department. Further copies can be obtained from the schools property group manager.

The repairs and maintenance budgets for schools are largely devolved although certain elements are held by Property Services. These budgets provide for responsive maintenance to all School buildings.

Where budgets are held by the individual school in many cases these budgets are managed by Property Services.

Certain minor alterations and Improvements may be funded by Property Services as maintenance whereas generally significant projects will be funded by the Local Education Authority or dealt with in accordance with devolved arrangements as set out in the next statement.

Anything over and above routine maintenance will need to be the subject of an allocation following preparation of an acceptable business case. See below for the specific arrangement for dealing with devolved capital grant.

Schools receive an allocation of devolved capital and all or part of such allocation may be directed towards property projects.

In such cases the governing body will make a proposal in accordance with the latest devolved capital guidance. Property Services will deal with the approvals process under this guidance in accordance with the timescales set out therein. Continued liaison between the school and Property Services is imperative in order to ensure that records and other action is completed in a timely manner.

The latest guidance provides for the Governing Body to complete a preparatory checklist to confirm that the correct consultations have been carried out prior to submitting the proposal to the LEA and Property Services.

The approvals process then includes for submission to Property Services so that the drawings can be the subject of a desktop audit.

It is then necessary for the School to continue to liaise with both the LEA and Property Services through to completion of the project. Such continued liaison is important to ensure that records are kept up to date including for example insurance cover and entry in the asset register.

The local education authority produces an asset management plan specifically for Schools. The current plan sets out the aims and priorities for 2003 - 2006.

The Education AMP is separate, and ancillary to the council's corporate AMP.

Proposals to rationalise schools provision may include the disposal and reallocation of property. Any such review must include proposals for allocation of the sale proceeds as part of the project, however this will be subject to the arrangements for pooling capital receipts.

Sale proceeds may form part of the overall case for rationalisation.

BATH AND NORTH EAST SOMERSET COUNCIL

Land & Property - Management Strategy & Policy Statements

Section 5

Specific Policies - Non Operational Property

The Council owns significant property investments the majority of which are known as the commercial estate. This estate, together with a small number of non operational corporate estate holdings, is managed in accordance with this Section of the policy.

The commercial estate comprises approaching 400 properties and produces a significant income flow to the Council. Corporate estate let properties produce a nominal level of income and will be subject to constant challenge at service and strategic level.

The commercial estate is subject to external review in 2006

The commercial estate will be managed in accordance with the aims and objectives for the time being. These are currently set out in the active management strategy for the commercial estate which was approved by the Council in 2002. This provides the framework for all decisions.

The current aims and objectives are included within the active management strategy which can be found on the CIS. This document refers to aims and objectives, statutory restrictions, performance models and reinvestment options.

The main parts of the active management strategy are set out below

Set out below are the current aims and objectives:-

The Commercial Estate is currently subject to external review with recommendations expected to emerge during the latter parts of 2006.

The commercial estate provides a significant revenue flow to the Council and this income is managed in a commercial manner so as to maximise returns.

The estate also has a considerable capital value which could be realised to provide resources to contribute to the council's capital programme or specific projects.

Management of the Commercial Estate is undertaken in a commercial manner but always subject to the provisions of Financial Regulations, Contract Standing Orders etc.

As part of the active management strategy a property performance model is being developed to analyse the performance of the council's investments and assist with decisions concerning retention, management or disposal.

Property Performance Model. The purpose of the model is:

The Council's commercial estate is held to satisfy the aims and objectives of the estate as set out in the active management strategy (see SP C2 above). In other circumstances operational property may not become surplus to requirements in the terms of the policy but become under utilised to the extent that parts can be made available to let or occupied in some other way for a limited period. Such occupations must be dealt with in accordance with the terms of this policy. The remainder of this part deals with specific aspects of this.

The Council holds the commercial estate which produces significant income for the Council. This income is derived from rents achieved through lettings. There are also some cases within the corporate estate where properties or parts of properties are let to third parties. In certain other circumstances properties may be made available during site assembly or whilst consents are obtained.

Generally lease terms are put in place to protect the value of the Investment.

From time to time certain units in the commercial estate will become void. Such properties will generally be available for reletting and remain in the commercial estate. Such properties will therefore not be declared surplus and will not be dealt with in accordance with the surplus land procedure. Where all or part of a property is physically void then the requirements of the Council's insurers must be adhered to strictly.

Commercial estate units may become void through the expiry of the lease or the early vacation by the tenant for whatever reason. These properties will generally be available for reletting and not therefore become surplus to the requirements of the commercial estate. They will nevertheless be managed under the void property procedure.

The exception to this is where another service area submits a bid in which case the surplus land procedure will apply.

During such time as any property is physically, as opposed to legally, void then the provisions of the void property procedure must be implemented strictly, especially the requirements of the Council's insurers in relation to services and security.

Property Services will enforce the terms of all leases and other occupational agreements through effective estate management including where necessary taking appropriate legal action to support this.

Covenants can include the obligation to pay rent, repair the property, not to assign or sublet, use it lawfully and hand it back at the end of the lease. Breaches of covenant can be either remedial or irremedial and this must be distinguished to determine the appropriate course of action. Failure to deal with breaches firmly and promptly may result in the Council's reversionary interest being damaged, particularly where a lack of repair is involved. Early identification of these matters will allow the Council to take appropriate action including legal action for specific performance of the obligations, damages or repossession of the property.

All property in the Council's ownership will only be used for lawful purposes both in terms of the need to comply with planning permission and other statutory requirements as well as contractually under the provisions of any lease or other occupational agreement. Where leases provide, Property Services will provide assistance to the local planning authority by enforcing the terms of such leases including where necessary taking appropriate legal action.

Leases will generally provide for the use of the property to be restricted to some extent in order to protect adjoining properties or the estate in general. The Council is also the local planning authority with responsibilities to ensure that land is only used for purposes for which planning permission has been granted. Where a property is being used unlawfully Property Services will work with the planning authority to supplement their powers of enforcement.

Leases of buildings let as a whole will generally be granted on fully repairing and insuring terms which provide for the tenant to be responsible for all repairs to the property.

Where part of a property is let the council will repair and maintain the exterior of the building with the tenant paying a proportion of the cost and the tenant will be responsible for internal repairs and decorations.

Leases will generally provide for the tenant to be responsible for repairing the property wherever possible and also for handing it back to the Council in good repair at the end of the lease. It is not possible to pass this responsibility on directly where part only of a building is let, therefore the landlord retains the primary responsibility but the cost is passed on to the tenant either through a service charge or by direct recharge.

In exceptional circumstances, eg where the property is in need of restoration and/or refurbishment it may be necessary for the Council either to repair the property to a basic standard or alternatively account for the requirements in the remaining terms of the lease.

Letting to voluntary bodies under the concessionary lettings scheme will generally provide for the council to retain responsibility for the exterior of the building.

No Lease or other occupational agreement will be granted until the suitability of the prospective tenant/occupier has been investigated fully and in particular the financial standing and trading experience of the person or organisation. Any lease proposed will also reflect the long term proposals for the property.

To grant a lease to a tenant with an unsound business plan would leave the Council open to higher management costs and the possibility of rental voids and possibly bad debts with the consequent effect on Income expectations. The method of achieving this will depend on the individual circumstances and may include acceptance of a rental deposit or the obligations being guaranteed by somebody other than the tenant.

The nature of any lease can be tailored to the long term requirements for the property, for example the lease may only be for a short period, or provisions may be entered enabling the Council to recover possession when it is likely to be required in the future.

At the end of the lease if the existing occupier has kept the covenants of the lease, he will generally be offered terms to renew within any statutory constraints and subject to any service delivery issues. Where the property is required by the Council for its own occupation or in order to facilitate a redevelopment of the property or where the tenant has not observed the covenants in the lease any such renewal will be resisted and the Council will seek to recover possession or offer renewal terms that reflect the Council's aspirations.

The majority of leases commercial are governed by the Landlord and Tenant Act 1954, as amended, and this legislation provides for any business tenant to remain in occupation on expiry. The procedures to renew the lease or resist such renewal are subject to strict rules and timetables.. It is possible, by using the mechanisms under the legislation, to resist a new lease being granted in certain circumstances which include the landlord requiring the property for owner occupation, redevelopment, or breach of covenant.. Where there is a future requirement for the property then terms for any renewal can be tailored to suit these requirements, for example a short term renewal pending a redevelopment proposal.

Where leases provide for the landlord's consent to be obtained under the terms of any lease, licence or tenancy such applications will be considered under the terms of the document and in accordance with the terms of this policy. In particular the Council will seek to recover from the applicant the Councils costs in dealing with the application, whether or not any consent is granted.

Leases generally provide for the Council's prior written consent to be obtained where for example the tenant wants to sell or transfer the lease, or where he wants to make alterations to the property. Leases will also provide for any such consent not to be unreasonably withheld, and in addition certain statutory constraints may apply. All of these statutory and contractual matters will be considered as part of the process.

All Rents shall be payable in advance. Where new agreements are being put in place all rents will be set at a level that ensures that such rents are sufficient to cover the costs of collection and management. In all new agreements the Council will include provisions to charge interest on late payment of rent. Where rents remain unpaid such interest will be charged and early recovery action instigated.

There are numerous miscellaneous and minor agreements in place which cost a disproportionate amount to administer. New agreements should avoid this situation, and attempt to put in place revised arrangements, for example rolling up rent into bulk one off payments.

Rent arrears are to be treated robustly and swiftly in order to improve cash flow and also to minimise the exposure to potential bad debts.

BATH AND NORTH EAST SOMERSET COUNCIL

Land & Property - Management Strategy & Policy Statements

Section 6

Specific Policies - Non Operational - Surplus

Properties no longer required by occupying departments will be declared surplus to requirements and dealt with in accordance with this section.

Occupiers should liaise at an early stage with Property Services where a property is likely to be declared surplus.

The detailed mechanisms for dealing with surplus property are set out in the surplus land procedure at Appendix 2 to the policy.

The surplus land procedure deals with all aspects of process including

During any period where a property is surplus any outgoings will be dealt with by Property Services. In order to carry out this responsibility all budgets relating to properties will be vired to Property Services surplus property account at the time the property is declared surplus.

All such outgoings will be paid out of a separate fund and deducted from any sale proceeds when realised.

The above is dependent on compliance with SP S1 above and occupiers giving adequate notice of the intention to vacate.

Where a property is declared surplus and is being dealt with in accordance with this part of the policy day to day management will be handled within Property Services in accordance with arrangements agreed with existing arrangements in particular the requirements of the Council's insurers.

The Council's agreed arrangements for dealing with voids includes for regular inspections, disconnection of services, sealing of windows and letter boxes etc. The majority of these requirements are as a result of conditions imposed under the provisions of the Council's insurance policy.

All capital receipts will generally be pooled in accordance with current rules. Any proposal to include capital receipts in an overall business or project plan needs to be approved at the outset.

The general presumption is that capital receipts are pooled and count against the capital programme commitments however in specific circumstances it may be possible to allocate receipts elsewhere as part of the justification for the project itself. Such proposals will need to demonstrate clear reasons why such course of action should be followed.

BATH AND NORTH EAST SOMERSET COUNCIL

Land & Property - Management Strategy & Policy Statements

Section 7

Specific Policies - Non Operational - Development

Certain sites are designated as ripe for development and dealt with in accordance with this section of the policy.

Such sites will be recorded on the property database.

There is a general presumption against freehold sales and major development sites will normally be dealt with by means of a long lease.

Such long leases may take one of 2 forms depending on the extent to which the Council wishes to retain control of the income flow and the physical characteristics of the completed development. Where control is required the transaction will generally provide for a proportion of the income to come to the Council wheras if this is not the case the transaction will generally generate a capital receipt. The choice of disposal will dictate the level of control that the Council will be able to exert on the finished development.

Major development sites will have the potential to generate significant capital receipts. All such capital receipts will generally be pooled in accordance with current rules. Any proposal to include capital receipts in an overall business or project plan needs to be approved at the outset.

Where a scheme generates a capital receipt all fees and other costs associated with the project will be deducted from such receipt.

Major development projects may generate an income flow however in the justification for the scheme there should also be an assessment of the effect on existing revenue and account taken in the overall decision.

Part or all of the site may be producing some income in the period up to the redevelopment and such Income will generally be reflected in revenue projections. There needs therefore to be an overall assessment of the effects of the scheme.

There are proposals for the establishment of a mechanism for reinvestment of some proceeds in alternative property investments or improvements to the existing stock.

These arrangements have yet to be formalised and will be incorporated when ready.

BATH AND NORTH EAST SOMERSET COUNCIL

Land & Property - Management Strategy & Policy Statements

Appendix 1

Surplus Land Procedure

See Section 6. All property no longer required by the existing occupiers will be processed in accordance with this Appendix.

The following sets out the detailed arrangements for dealing with property that has been declared surplus to requirements by an existing occupier.

On being notified that a property has been declared surplus to the requirements of the existing occupier the property will then be reallocated to the non operational surplus CIPFA Category (6) and notionally allocated to Property Services.

This reallocation will be recorded on the property database and all relevant authorities informed.

Occupying Departments will be responsible for all outgoings up to the date of vacation. Following vacation Property Services will assume responsibility for all such outgoings and accept a virement of any budgets associated with such outgoings. In the event of disposal any shortfall in these outgoings will be identified separately and reimbursed from the proceeds of sale.

Where a property is occupied certain outgoings may be payable by the occupying service area. When the property is declared surplus, then these costs revert to Property Services and the respective budget will follow this change. Any revenue cost of occupation will cease to be charged beyond the date of vacation.

During the period that a property is void it will be managed by Property Services in accordance with its void property procedure.

This procedure is internal to Property Services and deals with all aspects of the maintenance of void property including regular inspections, security, services and insurance arrangements.

As soon as it is known that a property is to become available Property Services will circulate to all HOS details of the property and its availability.

The information will include location, size, standard of accommodation and any other relevant factors to enable HOS to assess any demand for the property.

Upon receiving details of surplus property HOS may register interest in taking over the property. Such interest should include all relevant details of the proposal to enable the bid to be evaluated alongside any other competing bids.

This is a fairly simple process to allow Property Services to collate interest and prepare to evaluate proposals.

Where more than one HOS registers interest then Property Services will consider the relative merits of the proposals. The chosen solution will reflect the principles of good estate management and represent the best use of resources for the Council as a whole. In the event of any disagreement then such disagreement will be discussed between the respective HOS and Property Services and in the event that the outstanding issues cannot be resolved then the matter will be referred to the Resources Director for determination.

Any decision on competing claims must reflect the best use of resources.

Once it has been agreed that a property should be reallocated then the new occupier will accept such reallocation together with the necessary budget to deal with outgoings that will fall on the occupier. Where necessary a formal appropriation to the relevant holding power will also take place.

Reallocations will be recorded on the property database. Budgets for costs of occupation will normally be provided for as part of the overall business case. Where budgets have been moved to Property Services upon vacation then these will be reallocated to the new occupier. A formal appropriation will only be necessary where the legal purpose for which the property is held changes. The revenue cost of occupation will commence upon the date of occupation.

Where either there is no interest from alternative occupiers or where a registration of interest is rejected then the property will become available for disposal. Such disposal will normally be by means of an outright freehold sale but on occasions a leasehold disposal may be more appropriate.

Generally there will be no reason to depart from a straightforward freehold sale which would generate a capital receipt net of fees and expenses. In some circumstances it may be preferable to retain control over the property in question and I these cases a lease would be appropriate.

The following table gives an indicative flow chart through the process.

BATH AND NORTH EAST SOMERSET COUNCIL

Land & Property - Management Strategy & Policy Statements

Appendix 2

Devolved Working

The main body of this policy emphasises the central role of Property Services in the management of the council's assets and reinforces the delegation of such matters to the Head of Property Services.

See section 1, (Introduction) and the 4 core policies. In particular CP2 confirms the delegated authority described above. In certain areas however either Property Services operate budgets devolved to occupiers or work is carried out directly by occupiers or other divisions.

In certain circumstances projects may be commissioned outside the general arrangements set out in the main body of the policy.

Also certain budgets are devolved although the day to day budgetry responsibility is retained by Property Services.

Currently this appendix will apply in the case of schools (section 4), parks and heritage services and also the work of the major projects team. Other areas may be included in the future.

In dealing with devolved arrangements regard must be had to corporate responsibilities in the management of assets.

There are a number of references throughout Financial Regulations, Codes of Practice and other high level documents to the roles and responsibilities of both occupiers and Property Services. Where devolved arrangements have been entered into it is important that such principles are applied to these arrangements. Generally such arrangements provide for occupiers to be responsible for day to day management of buildings with Property Services controlling repairs & maintenance, property records and strategic asset management.

Within the context of this appendix it is imperative that devolved working has regard to the role of Property Services described above.

Particular to this is the need to refer to and liaise with Property Services at an early stage in order to make use of information held centrally. Examples of this include existing record drawings, the asbestos register and other statutory requirements. Where the proposal involves the acquisition, disposal or rebuilding of a site or part of it there may be legal or land ownership matters to be taken into account.

Property Services is responsible for the management of deeds and other documents of title as well as record drawings and the property database. These records need to be kept up to date as part of any devolved process in order to guarantee the validity of information and performance indicators.

The property database provides key information on a number of indicators and also is the source of information provided to other areas of the council, and failure to keep such records accurate on an ongoing basis may put the council at significant risk. Examples of this data includes the insurance reinstatement cost where the property database is the source of information for the policy schedules. Also the basic area of the property provides the platform for many performance indicators.

Where projects are undertaken using external funds the costs of occupation will need to be met from internal sources.

The ongoing revenue costs will need to reassessed as a result of any project which alters the scope of any site or building. Where such costs increase then occupiers should make the appropriate provision as part of any appraisal or business case for the project.

BATH AND NORTH EAST SOMERSET COUNCIL

Land & Property - Management Strategy & Policy Statements

Appendix 3

Policy Summary

BATH AND NORTH EAST SOMERSET COUNCIL

Land & Property - Management Strategy & Policy Statements

Appendix 4

Executive Summary

The overall aims and objectives of the policy attempt to address the following issues

A7 An allocation of every property interest owned by the council to an appropriate HoS together with an assessment of the legal land holding powers and consequent appropriations.

A7 Clarification of the roles and responsibilities of occupiers, Property Services and other specialists within the council.

A7 Robust arrangements for financial management of the council's property assets including identification of all costs on a property by property basis and translating this into a single revenue charge covering all aspects of the costs of occupation of corporate estate property

A7 Setting the scene for the introduction of a performance model to challenge the occupation of property from the point of view of both quantitative and qualitative issues. Quantitative issues cover physical aspects of property ownership such as the condition and any repairs and maintenance including backlog wheras qualitative issues includes the suitability of the property for purpose and any sustainability issues.

Section 1 - Introduction

The introduction to the policy document sets the scene by putting the policy in context including references to Financial Regulations, Codes of Practice, the Budget Management Scheme and the Scheme of Delegations. The purpose of the policy is to clarify the roles and responsibilities for staff in Property and Legal Services (PROPERTY SERVICES), occupiers of property and other areas within the Council in order to ensure that the Council's property is properly managed, used and allocated allowing the full benefits of that property to be realised both now and into the future.

The Introduction also includes a definition of property and the ways in which it is organised and categorised.

The Section finishes with 4 key Policies which are repeated in full below. Section 1 of the policy itself includes further narrative explanation and clarification,

In summary the Introduction attempts to position property within the organisation and sets out the roles and responsibilities across the Council.

Section 2 - General Policies

Section 2 contains policies that are applicable to all properties. The section is divided into 3 main areas

Part 1 - property records and asset management planning

This part sets out the way in which the Council's ownership of property is recorded. This includes delegated authority, Allocations and appropriations, the asset register and valuations. Methods for charging are also included and this will need to be developed in association with further work on clarification of budgetry responsibility for outgoings and property expenditure. See Part 2 below.

Part 2 - Management of existing properties

This part concentrates on the arrangements for repairs & maintenance, condition surveys, outgoings, insurances etc. Arrangements for the payment of outgoings are inconsistent at present and need to be simplified.

Part 3 - Management of changing requirements

This part deals with acquisitions and disposals of land and property including the ongoing management and review. Included are also arrangements for reallocation and appropriation, where circumstances change.

Sections 3 to 7 - Specific Policies

Section 3 - Operational Property

Operational property covers all land and buildings dedicated to front line service delivery with the exception of schools which are dealt with in section 4 below. This part of the policy deals with the specific arrangements for the management of such properties.

Section 4 - Schools

Specific arrangements apply to schools and these are explained here. There are separate Financial Regulations and Contract Standing Orders and the provisions of these are covered. Schools also have devolved budgets which include property matters. The Property Services Building Consultancy has produced separate detailed guidance in a book titled 93Property matters for schools94 which has been distributed to all schools and appropriate staff in the LEA.

Section 5 - Non Operational

The vast majority of this section considers the commercial estate although there are non operational properties within the corporate estate which are managed in landlord and tenant terms in the same way so as to maximise investment performance both in terms of income and capital growth.

Section 6 - Surplus Property

Surplus property includes not only property earmarked for disposal but also property identified as surplus to a particular service requirement and available for reallocation and/or appropriation. This section refers to the detailed arrangements in Appendix 1 (surplus land procedure) which includes a flow chart of the process.

Section 7 - Development projects

Within the council's land holdings certain sites are designated as ripe for redevelopment and dealt with in accordance with the provisions of this part.

Appendices

Appendix 1 - Surplus Land Procedure

This provides details of this process. This may lead to the sale of a property but equally may result in reallocation to an alternative occupier.

Appendix 2 - Devolved Working

In certain circumstances devolved arrangements are in place allowing projects to be undertaken using devolved budgets. This Appendix sets out the detailed operation of this.

Appendix 3 - Policy Summary and Index

A comprehensive Index to enable users to find individual items.

Appendix 4 - This Executive Summary

Appendix 5 - Notional Lease

Repeated from section 3, this contains in very plain English a series of dos and don'ts as far as building occupiers, Property Services and others are concerned. This provides a simple document to get over the principles of the policy as a whole, and effectively provides a SLA between the occupier and Property Services in respect of each occupation.

Appendix 6 - PROPERTY SERVICES contact points

Names, addresses, telephone numbers etc.

Appendix 7 - Glossary of property terms

To be prepared.

Appendix 8 - Financial arrangements

Detailed instructions on the revenue arrangements to cover the costs of occupation.

BATH AND NORTH EAST SOMERSET COUNCIL

Land & Property - Management Strategy & Policy Statements

Appendix 5

Notional Lease or SLA for the occupation of Council Property

The following table summarises the provisions of the policy as they relate on a day to day basis to building occupiers. The table is divided into 2 parts, including responsibilities and accountabilities placed on both the building occupiers and also Property Services.

This can be used as a quick reference guide for the majority of day to day matters and can be regarded as effectively the SLA or notional lease by which the occupation is regularised. This is reproduced in Appendix 5.

BATH AND NORTH EAST SOMERSET COUNCIL

Land & Property - Management Strategy & Policy Statements

Appendix 6

Contacts within PROPERTY SERVICES

Link to

for contacts within Property Services.

BATH AND NORTH EAST SOMERSET COUNCIL

Land & Property - Management Strategy & Policy Statements

Appendix 7

Glossary of Terms

To follow

BATH AND NORTH EAST SOMERSET COUNCIL

Land & Property - Management Strategy & Policy Statements

Appendix 8

Financial Arrangements

This appendix applies to all corporate estate properties.

Commercial estate properties are not covered by these arrangements as they are subject to separate investment criteria.

The policy as a whole provides for an inclusive revenue charge for the occupation of all corporate property.

This is one of the cornerstones of the policy as a whole.

The objective of this appendix is to set out the mechanism for calculating and monitoring the financial arrangements of the policy.

The current financial arrangements are inconsistent. There is no direct financial revenue effect of occupying property. For certain properties outgoings are paid using Property Services budgets; wheras in other cases occupying departments have the budgetry responsibility.

These inconsistent arrangements apply particularly to rates and utilities. The objective is to realign budgets for property costs to Property Services with occupiers paying an overall revenue charge.

In order to consider modifications to standardise budgetry responsibility attempts have been made to analyse expenditure in FY 04/05. These transactions have been categorised as under and the current cost centres identified.

All expenditure has been categorised as under

Detailed arrangements will depend on the type of property and the categorisation for the purposes of the asset register and CIPFA.

Different types of property attract differing methodologies in terms of valuation depending on the nature of any alternative market. Certain properties are specialist in nature and are generally valued by reference to cost or turnover rather than by reference to market evidence.

The main groups are as under

The proposed charges are intended to represent one single all inclusive amount covering the main areas.

The charges will be calculated in accordance with the following principles