Meeting documents

Specific Policies - Non Operational - Surplus

SP S1. Definition

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.

SP S2. Surplus Land Procedure

The detailed mechanisms for dealing with surplus property are set out in the surplus land procedure below.

The surplus land procedure deals with all aspects of process including

• How an occupier declares a property surplus.
  
• The arrangements for management in the short term.
  
• Consideration of bids for alternative uses.
  
• The decision to reallocate or sell.

SP S3. Responsibility for Outgoings

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.

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. In the event of disposal any shortfall in these outgoings will be identified separately and reimbursed from the proceeds of sale.

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

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.

SP S4. Voids

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 existing void property 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.

SP S5. Capital Receipts

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 and will be considered through the PID process.

Surplus Land Procedure

SP S6. Initial Reallocation

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.

SP S7. Void management

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.

SP S8. Notification of Availability

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

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

SP S9. Registration of Interest

Upon receiving details of surplus property any AD 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.

SP S10. Dealing with Competing Claims

Where more than one AD 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 this will be discussed between the respective AD 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.

SP S11. Appropriation and Reallocation

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.

SP S12. Disposal

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.

SP S13.

Flow Chart

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