Policy and Review Topic Panel B Review of Asset Management Resources and Decision Making

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Policy and Review Topic Panel BReview of Asset
Management - Resources and Decision Making

• Stephen Checkley - Head of Asset Management
  Service

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Outline of Presentation

• Introduction
• Arrangements for Decision Making on property
  issues
• Service delivery processes
• Asset Management Service processes
• Leader of the Council - Political
• Resources
• Capital Strategy
• Medium Term Resource Strategy
• Pressures and Opportunities
• Monitoring and Review
• Questions and answers

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Arrangements for Decision Making within Services

• Departmental Management Teams
• Asset Management Group Representatives
• Corporate Management Team
• Portfolio Holders
• Executive
• City Council

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Arrangements for Decision Making within Asset
Management Service

• Standing Orders and delegated powers
• Management Board
• Asset Management Group
• Members Information Service
• Executive
• City Council

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(No Transcript)
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Political Perspective Leader of the Council
Councillor Gerald Vernon-Jackson

• Issues
• Political objectives
• Review and disposal of Assets
• Use/Re-use of resources - Service delivery
• Level of resources - Landlords Maintenance
• Support of Interest groups
• Mechanisms
• Consultation
• Officers
• Direct Involvement
• Members Information Service
• Delegated Powers
• Executive and Formal reports

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Policy and Review Topic Panel BReview of Asset
Management - Resources and Decision Making
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Capital Strategy

• Capital finance prioritisation methodology
• Sources of Finance
• Prudential Borrowing
• Impact on Revenue budget
• Option Appraisal
• Life Cycle Costing

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Medium Term Resource Strategy

• Revenue budget process
• Budget Pressures
• Cash Limits

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Monitoring and Review

• Capital and Property Board
• Capital Programme steering group

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Asset Management Service Resources2003/4

• 122 FTE Staff
• Gross Revenue Expenditure 14.7m
• Gross Revenue Income 18.75m
• Net Revenue Income 4m
• Capital Expenditure 1.164m ?
• Capital Receipts 15.6m

Putting People First
Portsmouth City Council
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Property Management

• 20 Staff
• Acquisition and Disposal
• Capital Receipts 15.6m
• Management of Investment Portfolio
• Industrial Income 397k
• Retail Income 216K
• Agricultural 12k
• Offices 546K
• Other 2.17m
• Residential and Development work

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Design

• 40 staff
• Current Schemes
• New special school 6.4m
• Priory School Drama, Fitness and tennis Centre
  3m
• New Childrens home 0.9m
• Paulsgrove Inside/Outside Project 0.46m
• Neighbourhood nurseries (Sure Start) 1.925m
• Solihull House Refurbishment 6m
• Recently Completed
• Arundel Street Environmental Improvements 0.8m
• Cumberland St. HomeZone 0.8m
• Waterside School annexe 0.8m
• Various Sports and Arts Projects 2.3m
• Isambard Brunel Environmental improvements 0.9m

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Maintenance

• 30 staff
• Manage maintenance of operational property
• Major Projects - boiler replacement/ school roofs
• Reactive Maintenance
• Compliance with legislation
• Facility Management
• 35 Staff
• Civic Offices
• Guildhall
• THE WORK THESE TEAMS UNDERTAKE KEEP OFFICERS AND
  MEMBERS OUT OF JAIL

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AMS Resource Issues
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AMS Resource Issues
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Landlords Maintenance

• Budget Growth 1997- 2004
• Tender Prices 1997 - 2004
• Building Costs 1997 - 2004
• Retail Price Index 1997 -2004

• 30.24
• 52.23 (3.4 2004/5)
• 32.19 (5.8 2004/5)
• 18.81 (3 2004/5)

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Landlords Maintenance

• A 22 INCREASE IN BUDGET IS NEEDED NOW TO KEEP
  INVESTMENT IN REAL TERMS THE SAME AS IN 1997
• THE PORTFOLIO HAS EXPANDED SINCE 1997
• BUILDING COSTS HAVE INCREASED FASTER
• MAINTENANCE BACKLOG IS SIGNIFICANT
• THE PORTFOLIO IS NOT SUSTAINABLE

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Pressures and Opportunities

• Cash Limits
• Building costs
• Landlords Maintenance
• Design and Construction projects
• Human Resources
• In-house vs. outsourcing vs. insourcing
• Incentives and Property Review
• Re-use of Capital Resources
• Risk

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The Future
This..? or this.?
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Policy and Review Topic Panel BReview of Asset
Management - Decision Making and Resources

• Questions and Answers