To adopt an updated and comprehensive Asset Strategy covering the next 4 years and the Council’s entire asset portfolio

That the Asset Management Plan 2016-2020 be APPROVED.  

53.1           The report of the Finance and Asset Management Group Manager, circulated at Pages No. 37-61, set out the Asset Management Plan for 2016-2020 which Members were asked to approve.   

53.2           The Finance and Asset Management Group Manager explained that the Asset Management Plan was a key document in supporting the delivery of the Council’s corporate priorities. The Plan also set out the Council’s corporate vision on asset management, clarified how it fitted in with other Council strategies and set out the policies that the Council adopted through its asset management activities. It also highlighted the importance of proactive and dynamic management of the asset portfolio. The new four year Asset Management Plan reflected the growing importance of effective asset management in Tewkesbury Borough and acknowledged the role that assets could play in meeting the financial targets of the Council. The document contained paragraphs which set out an introduction; progress from the previous Plan; policy context; organisation and governance; money; asset management principles; vision for assets; performance monitoring; and consultation.

53.3           Paragraph 3.3 of the Plan detailed the need for an annual Asset Management Plan action plan which would be submitted to the Transform Working Group for consideration by Members. This would provide a greater depth of detail on planned asset management activities for the forthcoming year and give Members assurance that assets were being maintained and used to meet the Council’s priorities. Paragraph 5.0 referred to the money required for the Plan and key to it was the suggestion that, in addition to the one-off investment of capital resources, the Council should also make available reactive maintenance monies through its general fund revenue budget. The Council had not had a cash backed planned maintenance programme in place for a number of years and, whilst a desire to restrict non-essential spending during a time of austerity was understandable, the ongoing lack of a planned maintenance programme was not sustainable and was an unnecessary risk to the Council. A full 25 year costed programme over the full portfolio would be developed during 2016 and presented to Members in due course; with the aim being to provide annual contributions to a sinking fund to meet known maintenance needs so that large ad-hoc sums were not sought. Paragraph 6.0 set out the asset management principles and, therefore, what the Council hoped to achieve from its assets going forward; this included whether the Council wanted to own assets to meet its needs; to have efficient buildings; good facilities management; a planned, coordinated and informed approach to maintenance; and to take advantage of investment opportunities – it was a key part of the Plan going forward that the Council should broaden its commercial estate and widen its current base. Paragraph 7.0 set out the vision for the assets and Paragraph 8.0 set out a suite of performance indicators which would help the Asset Management Team run the assets and report on them more fully.

53.4           Referring to the Roses Theatre, a Member indicated that he had recently been to a ballet performance and had been highly impressed at the refurbishment that had taken place. He felt that it looked good and offered a much more open feeling. He was of the view that, although it was still a relatively small Theatre, it was obviously thinking smarter and the investment seemed to have been used in the right way. In response, the Deputy Chief Executive thanked the Member for his comments. She felt that the project had reinforced the role that the Asset Team played in these schemes and felt that the work undertaken had been a credit to everyone involved, both from the Theatre and from the Council Offices. Another Member referred to Paragraph B, Efficient Buildings, in the’ Asset Management Principles’ section and questioned whether the Council actually had a duty to cut carbon emissions. In response, the Finance and Asset Management Group Manager advised that, whilst the Council did not have a legal duty in this regard, it did have a moral duty. In addition, the Chief Executive explained that clearly the country had a duty to reduce carbon emissions and, as a public body, there was a need for the Council to follow that line. One of the main issues for the Council was that carbon costed a lot of money so, as part of service efficiency, this made sense. In response, the Member indicated that his concern was not as much about the wording in the report as it was about the finances and the way the Council managed its assets. In response, the Chief Executive indicated that the Council had no set targets as the current Council Plan had not included them; this meant there was currently no corporate management approach, however, Officers had looked at service by service savings. He explained that a similar question had been raised by the Overview and Scrutiny Committee recently in terms of where the Council was with its approach to environmental issues and the Chief Executive had advised that it was the intention that a report would be submitted in due course to advise where the Council was in that regard and what it had done thus far. He was of the view that the issues discussed within that Paragraph were more about the use of electricity; fuel in vehicles; fuel for heating etc. than carbon. In terms of photovoltaics on the Council Offices building, the Finance and Asset Management Group Manager explained that this had been looked at when the building had been refurbished but at that time it had been removed from the project. It had now been revisited and a suitable scheme had been put together which was far more efficient and would offer the Council savings. Referring to the Nottingham Declaration on climate change, a Member expressed the belief that the Council had signed up to the Agreement and that this had included a commitment to reducing carbon emissions. She felt that this ought to be reviewed so that Officers knew exactly what the commitment to carbon reduction was.

53.5           In terms of the Council Offices building, a Member pointed out that the lighting in the Committee Room was terrible and very expensive and she questioned when that area would be considered for updating. In response, the Finance and Asset Management Group Manager explained that the building was being reviewed on an ongoing basis with discussions being held with partners about the use of the ground and top floors. There was a need to refurbish both of those areas and this would be included in the transformation programme at some point.

53.6           Accordingly, it was