Agenda item

(a)  That the progress made to date via the Asset Challenge process be noted and support the review of Council assets to deliver efficiency savings required to meet the requirements of the 5 Year Plan.

(b)  That the list of retained operational assets in listed in Appendix One of the report be approved and agree that all other operational assets should remain within the Asset Challenge process, placing the responsibility with service departments to substantiate retention and/or investment in assets.

(c)  That the progress made via the introduction of the Corporate Landlord model be noted and agree that when service departments are developing business cases for retained assets, property running and maintenance budgets and any income for use of the asset should be transferred to Facilities Management.

(d)  That the implementation principles proposed in section 5.7 of the report be approved and delegated authority be given to the Strategic Director for Regeneration, Resources and Housing, following consultation with the Leader & Commissioner for Finance & Strategy and the Commissioner for Neighbourhoods & Renewal, to take forward detailed proposals to ensure these principles are delivered.

(e)  That a follow up report be presented to Cabinet in December 2015, which would include a list of assets for disposal.

The Assistant Director Assets, Infrastructure and Regeneration introduced a report which updated Cabinet on the Asset Challenge process and sought approval for a series of recommendations for the next stage of the process.

The Council’s Medium Term Financial Strategy required revenue savings of approximately £36m over the next four years and the Asset Challenge process had been established to evaluate the organisations operational property portfolio against a common set of criteria to drive efficiency savings.  Annual revenue spending on such assets was £3.5m and the Five Year Plan included a revenue savings target of 40%, which equated to £1.4m over the next four years.  From the detailed review of the Council’s existing portfolio of 40 operational sites, the Cabinet were asked to approve the list of operational assets to be retained as set out in the Part II Appendix One, which was considered without disclosing and exempt information, and agree that all other operational assets remain within the Asset Challenge process, with a responsibility on service departments to substantiate retention and/or investment in the asset.

The Cabinet recognised the importance of the process in maximising the performance of operational property assets, and it discussed the process undertaken and next steps.  Sites to be retained would have their existing uses reviewed to ensure their potential was maximised and space properly used.  A further report would be considered by the Cabinet in December 2015 which included recommendations for the disposal of sites that remain in the Asset Challenge process.  The Cabinet agreed the recommendations as detailed in section 2 of the report, with the addition that the delegation to the Strategic Director for Regeneration, Housing & Resources to take forward detailed proposals be carried out following consultation with Commissioners responsible for asset management and disposals respectively.

Resolved –

(a)  That the progress made to date via the Asset Challenge process be noted and support the review of Council assets to deliver efficiency savings required to meet the requirements of the 5 Year Plan.

(b)  That the list of retained operational assets in listed in Appendix One of the report be approved and agree that all other operational assets should remain within the Asset Challenge process, placing the responsibility with service departments to substantiate retention and/or investment in assets.

(c)  That the progress made via the introduction of the Corporate Landlord model be noted and agree that when service departments are developing business cases for retained assets, property running and maintenance budgets and any income for use of the asset should be transferred to Facilities Management.

(d)  That the implementation principles proposed in section 5.7 of the report be approved and delegated authority be given to the Strategic Director for Regeneration, Resources and Housing, following consultation with the Leader & Commissioner for Finance & Strategy and the Commissioner for Neighbourhoods & Renewal, to take forward detailed proposals to ensure these principles are delivered.

(e)  That a follow up report be presented to Cabinet in December 2015, which would include a list of assets for disposal.