Meeting documents

Introduction

Bath & North East Somerset Council (B&NES) is a Unitary Authority created on Local Government Reorganisation (LGR) in 1996. The vast majority of the services provided by the Authority require land and property from which to operate. Currently B&NES owns in excess of 1,200 property interests with a book value of £551 million as at September 2007.

As well as operational properties which are used in direct front line service delivery there are a number of corporate offices which accommodate the Council's back office staff as well as a large portfolio of investments which produce a significant revenue income to supplement the Council's financial plan.

Purpose of the Policy

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

The overriding purpose of this policy is therefore to ensure that the council's property is properly managed, used and allocated. This will be achieved by putting in place a policy framework that provides a sound basis for operation of the challenge process set out fully in the Asset Management Plan (AMP). This in turn will ensure that the full benefits of assets are realised both now and into the future.

The main objectives of the policy are to

• Clarify the roles and responsibilities between staff in the Property Services, who exercise the delegated authority to manage property; occupiers who are responsible for day to day security and management; and other specialists within the council.
  
• Set out in detail individual responsibilities by means of a Service Level Agreement (SLA) or notional lease.
  
• Reinforce the corporate nature of assets and the links to the Council's overall corporate priorities and objectives.
  
• Confirm an allocation of every asset to a service area.
  
• Provide for proper accountability for the overall cost of occupation of property.
  
• In conjunction with the Asset Management Plan (AMP) establish a framework for challenge that will contribute to the effective use of resources on an ongoing basis.
  
• Introduce structured arrangements for dealing with surplus and underperforming assets.

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

Scope

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 for example land, buildings, rooms within buildings, rights of way, leases, tenancies, licences, easements, wayleaves, rentcharges, ground rents, - and all other possible interests in land.

It is important that this policy is understood by Divisional Directors, Finance managers and Operational managers within all service areas of the Council and that everyone has an engagement and commitment.

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 much of the Council's governance structure including the following -

• Corporate Plan
  
• Corporate Asset Management Plan (AMP)
  
• Comprehensive Performance Assessment (CPA) to be replaced by CAA in 2009.
  
• Capital Strategy and Financial Plan
  
• Financial Regulations
  
• Contract Standing Orders
  
• Scheme of Delegations

Delegated Authority

Management of the Council's property is delegated to the Divisional Director Property Services (Chief Property Officer) under the scheme of delegations approved by the Council as part of the Constitution (part 3, section 4). The scheme makes reference in Section C to the Chief Property Officer having specific authorisation to deal with:-

'1. The 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.'

Appendix 9 to this policy provides such a scheme and includes arrangements for cascading this to managers within Property Services. This includes consultation with members and other senior managers as appropriate.

In certain circumstances Property Services manage budgets that have been devolved to service areas and in certain circumstances individual establishments.

In order to ensure the best use of the council's property resources these delegations are exercised in parallel with service delivery considerations.

Asset Management Plan

Categorisation

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

Within Bath & North East Somerset property has been divided very broadly into 2 primary portfolios, operational and revenue. Operational describes anything required in connection with front line service delivery wheras revenue describes non operational property which produces an income.

The Asset Management Plan sets out a challenge processes and criteria by which properties can be assessed and potentially reallocated to secondary portfolios, either for development or sale. In addition there are secondary portfolios to deal with open spaces (Community Assets) and roads and bridges (Infrastructure Assets). This is explained fully in the AMP.

Challenge

Challenge criteria surround the efficient and effective use of property which can be influenced by a number of factors. Again this process is explained fully in the AMP but considers both service delivery and property issues in the consideration of efficient use.

Outcomes

AMP outcomes include rationalisation of accommodation, sale of underutilised or underperforming assets and redevelopment of land and buildings where the existing use is no longer appropriate.

Document Structure

The policy has been produced as a series of linked documents. Individual extracts can be printed as necessary but it is designed for use electronically via the CIS or website.

The main core policies are set out in this protocol document and relate to detail contained in appendices. Each of the policies appears in bold with a further narrative explanation appearing immediately below the policy itself in italics.

Authors, Contacts, Help

The policy has been prepared, and will be maintained by, the Asset Review 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, Asset Review Manager

01225-477947

malcolm_grainger@bathnes.gov.uk

Richard Long, Estates Manager

01225-477075

richard_long@bathnes.gov.uk

Tom McBain, Divisional Director, Property Services

Chief Property Officer

01225-477806

tom_mcbain@bathnes.gov.uk

all the above based at

Northgate House
Upper Borough Walls
BATH
BA1 1RG

01225-477105 - Reception

See Property Services webpage for alternative contact points within Property Services.

http://www.bathnes.gov.uk/BathNES/business/businesssupportadvice/propertyenquiries/propertyservices/default.htm

Core Policies

The following core policies reflect the aspirations of the property policy and form the basis of the protocol. A series of detailed appendices supplement the policy and provide detailed guidance.

CP 1. 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 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 Asset Review group within Property Services.

CP 2. Purpose of Policy

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.

CP 3. Property is a Corporate Resource

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 Divisional Director (Property), 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.

This statement emphasises 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 and in consultation with Property Services staff. In all dealings with property the overarching aim will be to complement the vision and priorities of the Council as a whole.

The management of the Council's property assets reflects roles and responsibilities which follow the principles of this policy.

The high level division of responsibility confirms that occupiers deal with day to day management including security and caretaking. Property Services hold and manage Repairs & Maintenance budgets as well as the higher level of professional responsibilities consistent with the scheme of delegations.

Detailed responsibilities on the part of all concerned are set out in the SLA contained in Appendix 12.

The Appendix contains detailed arrangements setting out precise responsibilities on occupiers and others.

Arrangements will be put in place to create robust and transparent financial accountabilities in relation to the occupation of property.

The arrangements for accountability in relation to property are inconsistent at best. Accountabilities include occupiers, Property Services and others. An understanding of the costs of occupation form an essential part of the challenge process and moves are in place to be able to identify such costs easily. Such costs include rent (where applicable) repairs, rates, energy and other utilities, caretaking, maintenance of boundaries, trees and other green spaces.

The Asset Management Plan provides the mechanism for challenging the use and occupation of property so as to identify underperforming assets and realise the value of those assets by rationalisation, development or disposal.

The AMP is a completely separate document which deals with the challenge process. This can also be found on the website.

The surplus land procedure at Appendix 10 sets out clear instructions and mechanisms for processing assets that have been identified as underperforming or surplus. This part of the policy also deals with financial arrangements during the period when a property is being sold.

The disposal of property is a costly and time consuming exercise and robust management of budgets during this period is essential. The surplus land procedure provides for running costs to remain available during the disposal period and for any proceeds of sale generally to be credited to the corporate centre to be managed by the Capital Strategy Group (CSG).

Management of the council's property is delegated to the Divisional Director, Property Services under the scheme for delegations approved by the council.

The scheme forms part of the Council's constitution. This policy, and in particular Appendix 11, provides the scheme for management of property set out in the specific authorisations in Section C of the scheme.

During the course of the financial year 2008/2009 Property Services will develop an estates strategy which will set clear goals and targets which will show how the Council uses property to meet priorities, operational and service needs and outcomes for local communities.

This is the next stage in this process and relates directly to the emerging CAA KLOE. The estates strategy will form part of the AMP and this Policy.