Corporate Asset Management Plan

boliviahonorableΔιαχείριση

18 Νοε 2013 (πριν από 3 χρόνια και 11 μήνες)

192 εμφανίσεις

2009-2012
MERTON COUNCIL
PUTTING YOU FIRST
Corporate Asset
Management Plan
www.merton.gov.uk
Corporate Asset management plan 1 1
14/5/09 16:56:02
Corporate Asset management plan 2 2
14/5/09 16:56:02
LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



2

LONDON BOROUGH OF MERTON

2009
-
2012 ASSET MANAGEMENT PLAN


CONTENTS


Page


1.

Introduction 3


THE PROCEDURAL PLAN
: 6



2.

Organisational arrangements for
corporate asset management 6


3.

The Council’s Corporate Property Function 11


4.

Asset Register and Property Data 13



5.

Capital Prioritisation & options appraisal 16


6.

Maintenance procedures 19


7.

Property review procedu
res 23


8.

Monitoring 27


9.

Other relevant plans and strategies
29



THE PERFORMANCE AND DELIVERY PLAN


10

Review of outcomes delivered since last plan was reported 30


11

Maintenance
33


12

Priority actions for delivery 36


13

Performance Indicators 43


14

Action Plan
48


APPENDICES


1 Capital bid pro
-
forma 51


2 Disposal of Property Code of Practice
54
LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



3

1.0

INTRODUCTION


1. 1

Merton is an outer
-
London borough situated to the south west of central London,
with a population of some 186,400 occupying 78,000 households. It has three
main town centres:
Wimbledon, Mitcham and Morden, and is largely sub
-
urban
in character. Merton Borough Council provides a wide range of services across
the Borough, and is therefore a major landowner.


1. 2

The community vision for Merton
“Serving Merton together, building Me
rton
together, delivering together in Merton”
is set out in the Community Plan 2006
-
2015, which has been developed through local consultation and through the
Merton Partnership. This identifies key themes and areas of priority as set out
below:


Theme

Key
priorities

Sustainable communities

Housing

Environment

The Economy

Transport

Safer and Stronger
Communities

Preventing and reducing crime and
substance misuse

Community cohesion and active
citizenship

Civic contingencies

Children and Young People

Educa
tion

Children’s social care

Youth services

Healthier Communities

Improving health outcomes

Reducing health inequalities

Older people

Independent living

Supported living


1. 3

In order to address these priorities, the Council also recognises that it needs to

develop
Corporate Capacity
, which means efficiency, excellence and value for
money
.
The Council’s Business Plan

adopts the community plan priorities
alongside Corporate Capacity as its themes for achieving the overall vision


“Merton

Putting you first”


1. 4

The physical environment of Merton has a direct impact on the delivery of these
objectives and themes, and shaping the places across the Borough. That starts
with the Council’s own estate of land and buildings. The purpose of this Asset
Management Plan
is to set out how the Council is prepared and organised to
contribute to the achievement of these objectives through the delivery of effective
asset management planning. The plan also summarises the actions taken since the
last asset management plan was
developed, and the key actions and targets for
LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



4

delivery for the next 3 years, and how these will contribute to delivering the
Council’s Vision.


“Effective asset management is essential to the delivery of better services and
value for money; this is why pr
ogress has been made in reviewing all our
operational assets over the last year and greater emphasis is now being placed on
the management of our assets and the effective use of resources in all areas of
business planning. We are committed to the delivery
of improving efficiency
through the Effective Merton Programme, and recognise that better use of our
asset base can contribute positively to this objective across all service areas”


Councillor Samantha George, Cabinet Portfolio Holder for Corporate Resou
rces
and Deputy Leader. Cabinet responsibility for asset management.


The context for Asset Management Planning


1. 5

Asset Management can be defined as follows:


"Asset Management (AM) maximises the performance of fixed, physical or
capital assets that have a
direct and significant impact on achieving corporate
objectives."




Council’s were first formally required to produce asset management plans for
their land and buildings by DTLR in 2000.



The ODPM and Royal Institution of Chartered Surveyors developed gu
idance
on asset management for local government in 2004/5.



Since 2005, the emphasis on ensuring best practice has been incorporated into
the annual review of the Use of Resources element of the Comprehensive
Performance Assessment.



The Government focus
on asset management has shifted from Communities
and Local Government to the Treasury and the Audit Commission, who are
responsible for the assessment of performance against the Key Lines of
Enquiry set out for the Use of Resources



Both the Lyons Review
and the Gershon Report reflected the need for
improved asset utilisation and efficiency, better management and planning of
property investment, and the need to rationalise property ownership to release
capital for investment in the delivery of Council wid
e objectives.



4ps published “the estate we’re in driving better value from property”



2008 the Royal Institution of Chartered Surveyors publish updated guidance
on asset management “Pubic Sector Asset Management Guidelines

a guide
to best practice”



CLG
issue “Evaluation of Corporate Capital and Asset Planning in Local
Authorities”.



Metropolitan Police launch consultation on their Asset Management Plan.


LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



5

1. 6

This together with the anticipated introduction of resource accounting as part of
Whole of Government
Accounts, and the move from Comprehensive
Performance Assessment to Comprehensive Area Assessment and the greater
involvement of other public bodies and agencies in assessing use of resources sets
the wider context within which this asset management plan h
as been developed.


The Asset Management Plan 2009
-
2012


1. 7

Merton has been successful in the development of asset management planning,
being judged by the then ODPM as scoring a “Good” rating for its 2003 plan.
The Asset Management Plan 2006
-
2009 was appro
ved by Cabinet on 18
th

September 2006 and since its implementation the Council has achieved a level 3*
assessment for Use of Resources. This new document builds upon the strengths
of earlier asset management plans, and sets new targets for the next three
years. It
forms part of the Council’s strategic policy framework and has been developed to
reflect the Council’s Capital Strategy 2009
-
2012.


1. 8

The plan is in two parts: The
Procedural Plan
confirms the revised
organisational arrangements and prioritisat
ion and monitoring procedures in place
for future delivery, and the
Performance and Delivery Plan
identifies the
ongoing projects and targets through which real improvements are being
delivered. The Performance and Delivery Plan is updated annually to ena
ble
progress against targets to be formally reported to Cabinet and the Council’s
partners.


1. 9

A key driver for the Asset Management Plan and a measure of its success is the
way the Council develops Partnership Arrangements with relevant stakeholders
who may
provide opportunities in the way we deliver services. A partnership has
been established with the police which includes regular asset management
meetings between the Borough Commander, the Deputy Leader and the Property
Management and Review Manager. Th
e police are also now invited to attend on
the Council’s Programme of Ward Reviews. Partnerships are also being formed
with the PCT, the Fire and Rescue Service and the voluntary sector. This key
issue is integral to the way forward for good asset manage
ment in the future for
the Merton, and to taking an area based approach to the way in which assets can
be used to help deliver better services for local people.


LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



6

THE PROCEDURAL PLAN


2.0

ORGANISATIONAL ARRANGEMENTS FOR CORPORATE ASSET
MANAGEMENT



Organis
ation and reporting lines:


2. 1

The diagram below describes the improved organisational structure by which the
Council manages the delivery of asset management planning, and its associated
decision making processes:





2. 2

This reflects current best practice,
enables development of the principles of good
asset management with the Council’s strategic partners. It also demonstrates the
policy principle that all Council assets are owned and managed corporately, rather
than by the services who are in occupation, o
r others who use them. These
arrangements ensure a corporate overview of all parts of the Council’s diverse
property estate, including those managed in more detail through individual asset
management plans, i.e. Education (The schools estate). Housing and
Highways.
The principle of corporate asset management has now become embedded across
LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



7

all service areas, and is reflected in the development of all departmental,
divisional and team plans and service reviews.


2. 3

The organisational structure enables both Cou
ncil Members and the corporate
management team to be made aware of their responsibilities, and provided with
the tools and data required to enable informed decision making on property
issues, in the context of the overall policy and service delivery framew
ork. It also
ensures that significant property review processes are monitored through the
Outstanding Council Programme Board.


2. 4

The structure will be used for reporting progress on the delivery of the asset
management objectives and the Capital Disposals
Programme, monitoring the
effectiveness of procedures, and for making key decisions. The approval of
individual properties for disposal, and decisions to declare properties surplus to
the Council’s requirements will continue to be made by the Director of

Environment and Regeneration, the most senior Officer in the department
responsible for Asset Management Planning, under delegated authority in
accordance with the Council’s constitution. All surplus property is subject to
application of the Code of Prac
tice for Disposals, as set out in section 7.0 of the
plan. The Director is also represented on the Capital Strategy and Asset
Management Group.


Policy and strategic direction for the plan period


2. 5

The Council’s Key Themes and the outcomes and ambitions fo
r delivery within
each theme are set out in the Business Plan 2009
-
2012. The table below identifies
those ambitions and outcomes that have a direct linkage with the delivery of asset
management planning:

Theme

Key ambitions and outcomes linked to AMP

Sus
tainable
communities

Securing appropriate housing to meet needs

Jobs and wealth creation in town centres

Encouraging business development

Cultural and leisure facilities that meet local needs and encourage participation
of all. Reducing energy usage and
encouraging sustainability and biodiversity
in all development proposals

Safer and
Stronger
Communities

Reducing risk from natural dangers, such as flooding

Creating a sense of commitment to Merton, including safety as a design criteria
for any new develo
pments, shaping of places within Merton to respond to
community needs and aspirations

Children and
Young People

Provision of additional Children’s Centres

Support development to fight childhood obesity

Healthier
Communities

Support well being

Increasing
participation in sport and leisure activities

Increasing supported housing options for vulnerable adults

Older people

Ensure that the built environment is more attuned to the needs of older people

Development of wider housing options for older people

Co
rporate
Capacity

Improve value for money, Working in partnership

Developing services and improving the capacity of the corporate property
function

LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



8

2. 6

The Plan is flexible to accommodate any changes in focus or priority that emerge
during its life. The deliv
ery of asset management objectives is closely monitored
by the Deputy Leader of the Council, who is the portfolio holder with
responsibility for asset management. Regular reporting and communication
between the strategic Capital Strategy and Asset Managem
ent Group, Corporate
Management Team representatives and Council Members ensures that the actions
taken to deliver effective asset management reflect any changes in priority as they
emerge.


2. 7

The Service Strategy for the use of the Council’s assets identifi
es the following
principles which determine the disposition and use of all Council owned
buildings:




To provide services in a form and combination that best meets customer
needs



To minimise the costs of service delivery and maximise efficiency



To maximise
the use of property assets and hence income and capital
receipts.


This policy is taken into account in all asset management practices.


2. 8

The Strategic Budget Book contains The Medium Term Financial Strategy 2009
-
2012 and sets out the strategic priorities f
or capital investment over the period.
Part of the funding for these priorities will come from the proceeds of disposal of
surplus land and buildings. The Council therefore has a strategy for undertaking
ongoing asset management reviews of all property a
ssets, to identify:




Those which are surplus to requirements and can be disposed of



Those which are surplus to current requirements but should be held for
strategic reasons, or to contribute to regeneration and place shaping
objectives



Those which are unde
rused, and/or can be used more efficiently



Those which are not fit for purpose, and should be invested in or
replaced, or the service accommodated elsewhere


2. 9

Other strategic policies that are relevant to the future of the Council’s assets
include




The app
roval and prioritisation of S106 monies



The use of capital receipts from the disposal of HRA land and property
for the delivery of regeneration and place shaping objectives and meeting
the Council’s housing targets


2. 10

The Council is developing an overall vis
ion for the future of its estate, which has
been translated into a Corporate Property Strategy. The vision embraces the
following principles:

LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



9



The right property

o

Sustainable

o

Fit for purpose



The right place

o

Accessible

o

Contributing to borough wide community
needs at all levels in
society



The right condition

o

Creating the right environment for service delivery

o

Communicating the right message



The right amount

o

Efficient

o

Value for money


2. 11

The development of a vision around the geographic requirements of the Boroug
h,
will establishes the overall service need across all public, private and voluntary
providers. There are three key elements in taking this project forward:




Setting principles for establishing how services are delivered in the future,
both individually
and collectively



Setting principles for the way in which the Council’s assets and its role as a
Commercial Landlord can be used as a lever for regeneration and developing
the right context for inward investment



Developing asset management strategies to dir
ect land and property resources
to meet these principles.


2. 12

Work on this exercise has begun, and is considered to be a natural development of
the property review work that has developed the understanding and
implementation of good asset management across th
e Council. The development
and ultimate delivery of the vision requires ongoing commitment and involvement
from all departments and service areas across the Council. This work includes
consideration of the following:




The need for 5 extended school clust
ers, including 8 children’s centres



Use of libraries as service centres with borough
-
wide service information and
direct IT access to council systems



A recently completed review of community facility provision



Consideration of the centralisation of releva
nt groups of staff into a single
building where possible



Town Centres for provision of services, and the linkage between Council
property, its use and the key developments of Morden and Mitcham Town
Centres


2. 13

The Council has also developed an Accommodation
Strategy following a Best
Value review of office accommodation, This recognises that Council’s current
LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



10

office accommodation is not wholly fit for purpose, and is progressing options
for:




A long term reduction from 9 corporate buildings into a smaller numb
er of
buildings. The reduction in space requirement will be brought about through
more efficient use of space, and the implementation of Work Life Balance
working options, improved IT and communications systems and the
implementation of E
-
government



Bette
r use and cost effective management of the Civic Centre in the interim
period, through refurbishment and reorganisation to deliver a suggested target
utilisation of 8.5m2 per person



The exploration and feasibility assessment of alternative options for the
main
administrative centre in the future, possibly linked to wider regeneration
opportunities



Addressing areas where the property impacts on service delivery



Addressing the maintenance needs of retained buildings



Improving the overall working environment
s



Improving the energy efficiency and reducing the impact of retained
buildings on the environment


2. 14

The delivery of the accommodation strategy is likely to be ongoing throughout
the period of this plan and beyond, and will be managed strategically through
the
organisational arrangements in place for the delivery of corporate asset
management.


2. 15

From a financial point of view there is a strategic objective to reduce high interest
charging debt levels in the Council. This will be progressed during the plan
p
eriod through the use of capital receipts from the disposal of surplus operational
property to address premium payments and reduce debt to manageable cost levels,
in accordance with the Council’s Debt Management Strategy. This strategy will
ultimately ben
efit the Council’s overall revenue budget, delivering flexibility for
future prudential borrowing to address capital programme needs, or increasing the
revenue available to support improvements to direct service delivery.


2. 16

During the last year, considerati
on has also been given to the development of
specific policies related to the use and management of the Council’s property, and
to the opportunity to explore transfer of community related assets to those
organisations that use them for service delivery. I
t is recognised that greater local
involvement in community property use can help to build local pride and a sense
of belonging. The aim of the policy is therefore to engender community cohesion,
and to effectively communicate the responsibilities for acti
ons on property matters
across the Council to reduce risk and to establish fair and transparent processes
for considering the future use of Council assets. This has meant drawing up of
leasehold arrangements for occupation of Council buildings by the volu
ntary
sector. The resulting draft property policy is being finalised for approval in the
near future.

LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



11

3.0

THE COUNCIL’S CORPORATE PROPERTY FUNCTION


3. 1

The Council’s Corporate Property Function has been further centralised, in
accordance with best practic
e guidance, since the last asset management plan was
formally reported. The function now consists of two distinct areas of
responsibility, both of which are represented on the Asset Management Project
Team, and which collectively represent the Corporate L
andlord for the Council’s
assets. The general responsibilities of the corporate property function are as
follows:




3. 2

All budgets for maintenance were centralised under the control of the Corporate
Services Directorate to enable a more strategic approach.
The objectives of this
improvement are:




Increased financial transparency



Improved expenditure monitoring



Corporate approach to prioritisation



Improved consistency in compliance with statutory requirements



Linked more closely to information on conditio
n and remaining useful life



Enables greater planning of maintenance expenditure



Enables better linkage with strategic planning and rationalisation



Better value for money



Reduced risk


3. 3

The detailed procedures in place for addressing the Council’s property
m
aintenance liabilities are set out in section 6.0 of this document.


3. 4

The corporate landlord function provides support to all services in identifying the
asset implications of service planning, and in providing supporting property
related data to assist in
service decision making. The Property Management and
LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



12

Review Manager works with heads of Service to identify areas of under
-
utilisation, issues of suitability, regeneration opportunities and how these may be
addressed through effective asset management pla
nning. This reinforces the
principle that assets are provided and to be used in a way that maximises the
contribution they make to the achievement of the authority’s corporate and
service objectives, and the shaping of Merton for its residents.


3. 5

Since the
last plan was reported a strategic review of the Property Management
and Review Team was carried out. This has recommended further areas of
improvement to address the development of capacity for asset management, and
the streamlining of processes related
to the management and maintenance of the
Council’s estate. In particular the review recommended the following actions as a
priority:




Merging the Property Management and Review Team and the Facilities
Management



Undertaking a detailed specific review on
the replacement of the existing
information management system for Property.


3. 6

These recommendations are currently under consideration, and appropriate
action will be taken in response to the review during the next twelve months.



LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



13

4.0

ASSET REGISTER AND
PROPERTY DATA


Categorisation of assets


4. 1

The Council’s property assets have been categorised in accordance with CIPFA
requirements, as follows:


ASSET CATEGORIES

2006/7

As at 31.3.2008

Operational Assets



Council Dwellings



Council Dwellings for Rent

6,564

6,532

Other land & Buildings



Schools

excluding voluntary aided schools

37

37

PFI School Land

4

4

Ancillary school premises
-
Crèches

5

5

Adult Colleges

1

1

Residential Homes and Day Centres

6

6

Offices, administrative buildings and associa
ted land

26

26

Off street car parks

10

7

Libraries

7

7

Sports centres & swimming pools

3

3

Public Halls

5

4

Community Centres/Youth Clubs

12

12

Depots (Civic Amenity Site)

1

1

Allotments

16

16

Other Housing (HRA and Non
-
HRA)

12

11

Historic Buildin
gs

Theatre & Heritage Centre

2

2

Workshops

1

1

Total

148

143

Community Assets



Parks, Playing fields and open spaces

93

93

Cemeteries and Crematoria

3

3

Total

96

96

Non Operational Assets



Industrial property, shops and retail units and other

3
93

384

Surplus held for disposal

2

8

Total

395

392


Data systems


4. 2

The Council has a wide range of systems for holding and manipulating asset
register and corporate property data. These are all Unique Property Reference
Number (UPRN) based, so that they
can be interrogated to enable analysis of
either the entire portfolio or service/usage based samples. This enables the
comparative performance of properties to be assessed against pre
-
determined
criteria such as running costs, utilisation etc. and inform
s the Council’s property
review process. It also enables reports to be generated and performance against
recorded indicators to be monitored.


LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



14

4. 3

The table below summarises the current range of systems and the relevant data
they hold:


SYSTEM

DATA HELD

M3 B
S7666 (Land &
Property Gazetteer)

Corporate Land & Property Register to national standards and the
mandatory source of data for the IDeA National Land & Property
Gazetteer.

Greenley Estate
Management System
(Networked)

Asset register

Lease diary and tenan
cy information

Core and secondary data

Linked to Financial Management Information System (FMIS)

Digital Mapping capabilities

Bespoke stock condition
system and MapInfo
Geographical Information
System (Networked)

Space audit Computer Aide
d Design drawings

Condition data Fire risk data

Photographs

Sufficiency and
Suitability database

Sufficiency and suitability data provided by services

MapInfo/CONFIRM
Asset Management
system

Corporate system for all property & land assets excep
t Housing
stock and some Educational establishments.

Functions include condition survey, inventory, contract
management & repair and maintenance works and payments.
Embedded mapping facilities, document linking and wireless
mobile working

Integrated wit
h customer enquiries and WEB reporting form,
corporate payments systems, Geographical Information System
mapping and the Land & Property Gazetteer.

FMIS/ProActis/Ash


Ledger and Financial
Management Systems

Corporate Ledger Corporate Payments

Debt management Commitment Accounting

IPF asset management
system

Education asset management plan information

Survey of operational property. This is being considered for
extension as a corporate asset management system to address the
need to im
prove systems for information management, as
highlighted in the strategic review of Property Management &
Review Team.

Academy Housing

Similar to CONFIRM but for all Housing Residential stock.
Includes tenancy agreements and recharges

Northgate M3 BS766
6
(Land & Property
Gazetteer.)

Corporate Land & Property Register to national standards and the
mandatory source of data for the IDeA National Land & Property
Gazetteer.

Northgate M3 Land &
Property

Corporate Planning, Building Control and Land Charges sy
stem
managing all development changes to assets. Integrated with
Mapping and the Land & Property Gazetteer. Feeds from web and
National Planning Portal

Crystal Reports

Data Extraction tools


4. 4

The proliferation of systems, and the need to take a corporate
overview of all
assets including education property, housing and highways/infrastructure, has
been identified as an issue to be addressed in the Strategic Review of the Property
Management and Review Team. This has therefore been included as an ongoing
a
ction point for continuing improvement provided at section 14.0 in the
Performance and Delivery Plan section of the document. Since the last plan,
LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



15

access to the IPF Asset Management System has been extended to support the
updated survey of the Council’s o
perational property to establish the level of
backlog maintenance.


4. 5

The new 2008 baseline condition survey data, together with the high level review
of the Council’s assets that has been carried out will now enable value for money
maintenance plans to be
developed, reflecting the likely ongoing life to the
Council of its operational properties.

LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



16

5.0

CAPITAL PRIORITISATION AND OPTIONS APPRAISAL PROCESS


5. 1

The allocation of capital resources is focussed on the achievement of the
Council’s key strategic object
ives.


5. 2

Opportunities for capital investment and expenditure arise as a result of physical,
legal and regulatory requirements, service planning, service based reviews,
property reviews and service delivery improvement programmes. Before a bid
for capital
is made, the originating service will have considered the range of
options available for delivery and identified the most suitable and cost effective
approach. Each proposal for capital resources is required to complete a Capital
Bid pro
-
forma, which refl
ects the corporate priority framework as set out below.
A copy of the pro
-
forma document is provided at Appendix 1 to this document.


5. 3

The bids received by the Capital Strategy and Asset Management Group are then
assessed against the existing corporate pri
ority framework which is weighted, as
follows:


Criteria for assessment

Points

Essential highways infrastructure maintenance and repair

15

Other property related work to maintain infrastructure

15

Addresses Community Plan objective

5

Addresses Business
Plan Priority

5

Leverages external funding

10

Has significant CPA impact (addresses key PI)

5

Legal /Mandatory/Contractual commitment

10

Supports shared service provision

10

Addresses climate change impact

5

Leads to a revenue saving

3 year pay ba
ck

10

Leads to a revenue saving

5 year pay back

7

Leads to a revenue saving

10 year pay back

5

Revenue costs

-
20


5. 4

Finalisation of the programme for 2008/9 took into account the degree to which
the schemes were considered essential, particularly whe
re contractual
commitments have been made, and the extent to which corporate priorities are
delivered. The formulation of a 3 year affordable capital investment programme
requires an approach that fully supports the strategic priorities set out in the
Bus
iness Plan. The overall approach to prioritisation also aims to:




Consider the condition of the asset, and its remaining life



Evaluate the impact on backlog maintenance and the time horizon for
achieving an agreed standard


5. 5

In particular, for all large an
d some medium sized projects the value for money
implications of Whole Life Costing are taken into account during the design
LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



17

stage, where the lifecycle implications of alternative design solutions and
materials are examined. If these give rise to any chan
ge in the anticipated initial
cost of a project, the change and the reasoning behind it is referred back for
consideration and approval via the Capital Strategy and Strategy and Asset
Management Group. This group regularly reviews the corporate framework
for
assessing capital bids. The review process for the period of this plan will
particularly concentrate on further developing whole life costing techniques and
measures of sustainability.


5. 6

The outcome of the Options Appraisal and Capital Prioritisation p
rocess is an
affordable 3 year capital investment programme, aimed at delivering the
Council’s strategic objectives. The programme is reviewed annually in February
of each year.


5. 7

In summary, the entire options appraisal and capital prioritisation process
is set
out in the flowchart below :






5. 7

The Options Appraisal process is set out in the Council’s corporate Procurement
Strategy. The aims of the procurement strategy are to ensure that for every
procurement decision the chosen option will be one that:

LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



18




Delivers best value for money



Offers the best balance between savings and quality improvements at the
lowest cost



Promotes diversity of provision and delivery


5. 8

The options for service provision are:




In
-
house provision



Joint working with other local auth
orities



Sinclair Vetter Directory (approved list of other providers)



Construction Line (approved list for Construction works if outside the
joint procurement arrangements with Sutton)



Other


5. 9

In any procurement decision, the Options Appraisal process requir
es the
following questions to be addressed:


















5. 10

These questions and the principles set out above enable all options to be
considered on a consistent basis and to ensure delivery contributes to the
Council’s wider corporate and service objecti
ves.



Is it legal?



Consistent with Corpo
rate Values?



Likely to be within future budgets?



Implemented in the time available?



Offer a reasonable risk?



Deliver the necessary improvement?



Members views?



Community impact?



Is it practical?



Support and complement other Council strategies?



Support and c
omplement core responsibilities?



Reflect consultation outcomes?



What is the market situation?


LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



19

6.0

MAINTENANCE PROCEDURES


6. 1

The Council’s property maintenance arrangements have been significantly
improved since the last asset management plan The procedures now in place are
as follows:


Budget Management and funding


6. 2

All maintenance budgets ar
e centralised as part of the Corporate Landlord model
and are managed by the Corporate Services Team which forms part of the
Council’s property function. This ensures that maintenance and facilities
management are closely allied, and are linked through th
e Asset Management
Project Team and liaison arrangements with the property management and review
process, and strategic direction of the overall corporate estate.


6. 3

Within the strategy for repairs and maintenance, which results from the condition
surveys,
programmed repairs and maintenance are prioritised as “essential” or
“desirable”. “Essential schemes are then fully funded in the Capital Programme.
In
addition to the capital allocation for essential programmed repairs, further
money has been allocated to
address the accessibility of the Council’s buildings,
which is directly in line with its objectives for addressing the needs of children
and young people, older people and people with disabilities (DDA work). It is
also an important element of delivering
a sustainable estate.


6. 4

Capital resources are also pre
-
allocated to address wider asset management issues
including highways and infrastructure maintenance, schools modernisation and
Housing repairs. The corporate maintenance allocations for the plan perio
d are
summarised as follows, and are currently under review as part of the development
of the Capital Strategy. At the time of drafting the proposed allocations are as
follows:


Capital allocation area

2009/10

£000

2010/11

£000

2011/12

£000

Corporate
-
E
ssential programmed
repairs and maintenance

626

700

700

DDA

Access to Buildings

250



Civic Centre refurbishment

300



Housing Major Repairs

6,500

Grant
funding to
be advised

Grant
funding to
be advised

Schools modernisation

700

1,460

Grant
funding t
o
be advised

Schools

new build and major
refurbishment

4,422

3,376

400

Building Schools for the Future

30

350

1600

LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



20

Primary Capital Programme

3,000

5,378

Grant
funding to
be advised

Wimbledon Theatre refurbishment

550



Repairs to Footways

937

962

1,
046

Highways Maintenance

Borough
roads

1,416

1,463

1,570

Highways

Principal Road renewal

Grant
funding to
be advised

Grant
funding to
be advised

Grant
funding to
be advised

Bridge repairs

468

503

117

Leisure Centres Equipment

600

600

600


Conditio
n surveys and future Planned Maintenance Programmes


6. 5

A new set of 5 year planned maintenance programmes is currently being
developed for the corporate estate based on the latest set of condition surveys that
were completed in 2008. It is intended that th
ese will then be updated one year
from completion on a 5 year rolling programme at a rate of 20% per annum.


6. 6

All school buildings have been the subject of a 5 year rolling programme of
condition surveys at a rate of 20% per annum since 2001. These have b
een used
to determine the capital programme for education, and to support local
maintenance programming.


6. 7

All infrastructure assets have been surveyed in accordance with nationally set
standards, are detailed in the Highways asset management plan and Netwo
rk
Management Plan. These documents reflect the corporate ownership of property
as set out in this plan. A 3
-
year prioritised planned maintenance programme for
infrastructure is in place. It is intended that this will be extended to 5 years
during the l
ife of the Highways asset management plan.


6. 8

The Council also has up to date condition information in respect of its housing
stock, and is further exploring the options for stock transfer, which will be
considered during the life of this plan.


Procurement
and delivery


6. 9

The commissioning of works on the corporate estate is managed through the
Councils Corporate Services Team, with delivery taking place through the
Council’s construction partners. For low value works to administrative and
corporate buildings
(including education where the Council has direct
responsibility), the professional partner is E.C.Harris. E.C.Harris are responsible
for procuring and monitoring planned maintenance, developing planned
maintenance programmes approved by the client, proc
uring responsive
maintenance and low value (>£50,000) capital works, and undertaking specific
LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



21

design work as required for capital projects. The works are procured from a
range of primarily local providers with skills appropriate to each specific task.


6. 10

Hi
gher value capital works, i.e. those exceeding £50,000, are procured though a
joint contract with the London Borough of Sutton which gives the Council access
to four approved contractors offering a wide range of expertise. These are:




W.S.Atkins



Parsons B
rinckerhoff



Curl La Tourelle



Hoca Partnership


6. 11

For housing repairs funded through the Housing Revenue Account the Council is
currently in partnership with A Williams and Morrisons. However, following an
Options Appraisal Report on Procurement for Housing
Services these
arrangements, as well as the current arrangements for capital works, are subject to
change. The Council has a long term contract with F.M.Conway for the delivery
of highways maintenance.


6. 12

The Council’s commitment to partnering arrangements f
or construction, in line
with Egan Principles, reflects an aim to becoming best practice clients of the
construction industry, and improving the efficiency and quality of its assets. The
original partnering arrangements with SERCO were accepted as a demon
stration
project by the Movement for Innovation (M4I)


Cyclical maintenance


6. 13

In addition to the planned and reactive maintenance processes that address
various physical wants of repair, there is also a wide range of cyclical
maintenance contracts and arran
gements in place that ensure the function and
operation of the building accords with legislative requirements and protect the
Council from risk. These include the following:




Fire Appliance Testing



Fire and Emergency Alarm Testing



Emergency Lighting T
esting



Chlorination Programme and Legionella Testing contract



Electrical Infrastructure Testing Programme



Lift and Escalator Maintenance Contract



Boiler Maintenance Contract



Fire Alarm Panel Maintenance Contract



Uninterruptible Power Supply Maintenance Co
ntract



Lightning Protection



Portable Electrical Appliances Testing



Sewage pumps and storm drains



Eye bolt maintenance

LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



22



Tea boiler maintenance



Pressurisation sets maintenance



Portable fire fighting equipment maintenance



Air conditioning installation maintena
nce



Ventilation plant cleaning



Asbestos survey




LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



23

7.0

PROPERTY REVIEW PROCEDURES


7. 1

The Council implements an asset management review programme that assesses
20% of its operational buildings annually. The objective of the ongoing review is
to challenge whe
ther the property represents value for money to the authority.
The review process is implemented by the Property Management and Review
Manager, in conjunction with Services representatives responsible for
contributing service information to the asset mana
gement plan. Each review
follows the process set out below:




7. 2

During 2007/8 this process was supplemented with a comprehensive high level
strategic review of all operational property (with the exception of parks and open
spaces, which was the subject of
a separate review). The purpose of this strategic
review was to sift the operational portfolio to identify those which were
performing poorly in terms of a range of corporate criteria, and service related
suitability criteria, and to identify opportunitie
s for rationalisation and
improvement. This stage 1 review has now been completed, in parallel with a
revised assessment of the value of the Council’s non
-
operational portfolio.

LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



24

7. 3

The next stage of this review has been to assess the short, medium and longer

term properties in more detail to establish a revised disposals programme, and to
feed into the Capital Programme where there is investment need. This process
will continue to be progressed during the course of 2009/10, with a view to
implementing change
s to the portfolio during this plan period and beyond. The
review has identified a range of future development and disposal opportunities
that effectively provide a strategy for change and improvement to the Council’s
operational estate up to and beyond 2
014/15


7. 4

Part of the second stage of the review involves consideration of the high level
options for the future of the non
-
operational portfolio, with a view to whether this
could be used to support the Council’s Debt Management Strategy, or future
capital
programmes. A key issue will be to consider the impact of any change on
the Council’s revenue position. In principle, the Debt Management Strategy
requires the application of capital receipts to the payment of debt premiums, in
order to bring the Counci
l’s debt down to a more serviceable level.


7. 5

The non
-
operational portfolio currently plays a significant part in supporting the
Council’s revenue budget. The review has therefore established the principle,
through liaison with Finance Officers, that inco
me producing property will be
retained where the return on capital employed justifies its value for money. The
next stage of the non
-
operational review will therefore be to identify where there
is latent capital value that could be released with minimal i
mpact on the Council’s
revenue position, and to identify the actions and resources will be required to
release this value.


7. 6

The outcomes of the overall property review process feed into the asset
management decision making processes. This demonstrates h
ow the Council
ensures that its operational estate both improves over time and contributes to the
achievement of wider corporate and service objectives.


7. 7

In parallel with the above review process, the Council is also progressing its
programme of ward based
reviews, which explore Council and other public sector
assets on an area basis, to explore opportunities for these to contribute better to
the delivery of the Council’s broader community agenda. The target is to review
20% of Wards annually. The Ward R
eview is lead by the Deputy Leader (the
portfolio holder with responsibility for asset management), Head of Regeneration
and Leisure and the Property Management and Review Manager. The team
includes the ward councillors, the police, planning officers and
service
representatives. Basic property information which includes back log maintenance
is provided to and considered by the inspection team and the results of each Ward
Review are reported through the established procedures identified within this
plan.


7. 8

If as a result of these processes a decision has been made to dispose of land or
property, the method is determined by the Disposal of Land/Properties Code of
LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



25

Practice (provided at Appendix 2). This sets out the procedure to be used in all
cases where a
property asset is identified as surplus, and is implemented by the
Property Management and Review element of the Corporate Landlord function.
The diagram below summarises the disposal procedure:



7. 9

This procedure demonstrates that the achievement of the C
ouncil’s wider policy
objectives is considered at every stage of both property review and disposal
procedures, which are applied consistently across the entire portfolio. It also
demonstrates that suitable procedures are in place to maximise value for mon
ey,
and minimise risk.


7. 10

As part of good practice an Acquisitions Policy is currently being developed
within the Corporate Property Strategy as part of the determination of further best
practice of Corporate Standards for property related transactions. Thi
s will
address the process for securing additional space where needed for service
delivery, and will also manage and control the requirements to be addressed when
sharing space with other bodies and partner organisations. This will minimise
both risk and
cost to the Council in securing the right property for its future
requirements, and in developing wider service delivery links in the community.


7. 11

During the plan period, the Property Management and Review Manager is
working with the Local Planning Authori
ty to ensure that appropriate
representations relating to future use of Council’s land and buildings are taken
LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



26

into account in the preparation of the Local Development Framework. It is also
intended that joint Section 106 Review procedures are established
to ensure that
external developments that increase demand on service use contribute in a way
that can help meet the property requirements of services in accordance with the
overall strategy for Council property.

LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



27

8.0

MONITORING


Capital Programme


8. 1

Pro
gress in the delivery of the Capital Programme is monitored by a traffic light
system on a regular basis by the Capital Strategy and Asset Management Group,
which is attended by the Portfolio Holder with responsibility for asset
management. The report is
also presented to Cabinet and Scrutiny. This enables
changes in the programme to be monitored well in advance of the annual review.
It also ensures that any required action can be approved expeditiously in order to
maintain the delivery programme.


8. 2

In a
ddition to progress delivery, capital spend is monitored against budget, not
only for in
-
year variances, but also for the variances over the whole lives of the
schemes.


8. 3

This monitoring enables changes in the programme to be monitored well in
advance of th
e annual review. It also ensures that any required action can be
approved expeditiously in order to maintain the delivery programme.


8. 4

A report on the position of all schemes within the Capital Programme
highlighting any major departures from its delivery i
s reported to Corporate
Management Team, and Cabinet every time it meets.


Property Review and Disposals Programme


8. 5

Progress on the Capital Disposals Programme is also monitored through the
Capital Strategy and Asset Management Group, through monthly meeti
ngs
between the Council’s Corporate Property Officer and the Deputy Leader in her
capacity as Portfolio Holder for the Council’s assets, and in detail through
monthly meetings between relevant property and finance officers. This ensures
that progress is m
onitored in line with the overall delivery of the Capital
programme, where capital receipts are required for the funding of specific
projects or to pay premiums when repaying higher interest debt. Overall disposals
will be reported to Cabinet annually as p
art of the Annual Property Holdings
Report.


8. 6

Progress on the outcome of the strategic property review is also monitored by the
Outstanding Council Programme Board to whom monthly reports are made. This
board is attended by senior officers who are represen
ted on the Council’s
Corporate Management Team. This demonstrates that asset management is
integrated with the Council’s business planning at a high level in the organisation,
as part of its overall drive to use resources more efficiently.




LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



28

Maintenance
budgets and delivery of maintenance works


8. 7

Maintenance budgets are monitored through the CONFIRM ordering and
accounting system which is in the process of being replaced by the ProActis
system, to improve financial monitoring. Budgets are also monitored b
y E.C
Harris under their contract for the delivery of minor and reactive works. Progress
on the expenditure of the budget allocation for maintenance is also reported to the
Capital Strategy and Asset management Group.


8. 8

The delivery and quality of day to d
ay maintenance and major projects are
monitored by the Asset Management Projects Team through the Facilities
Management and maintenance element of the Corporate Landlord function.
Through this process, the Council recognises the wider responsibility it ha
s for all
areas of maintenance, even those that are implemented independently by schools
through their independent dedicated budgets. To ensure that all properties are
compliant with the Councils legal requirements, the following processes are in
place:




Annual Health and Safety audits, conducted in conjunction with the
Council’s specialist Health and Safety unit



The existence of an intervention safeguard, which enables the Council to
take direct responsibility for the safety and maintenance of any buildin
g
from which services are provided to ensure compliance. This is particularly
relevant to schools, but is an action of last resort



Monitoring through the contractual performance requirements of the
performance of the Council’s PFI partner in the delivery
of maintenance for
the secondary school portfolio



The provision of specific guidance and Governor training for schools to
ensure that they are aware of their direct liabilities and operational
requirements in respect of property related legislation, such a
s requirements
relating to Asbestos, Construction Management regulations etc.



All services can also have access to condition reports relating to the property
they occupy, and guidance on the implications of it is available via the
corporate landlord functi
on to support service planning.


Asset Register.


8. 9

To ensure the Land and Buildings Asset Register is accurate meetings are held
monthly (“Asset Register Meetings”) between the Property Management and
Review Manager, Capital Strategy Manager, Senior Proper
ty Lawyer and
Property Liaison Manager and the Risk and Insurance Officer. In this way
property purchases and disposals and impairments are identified and registered in
accordance with accounting requirements and best practice. For the Vehicles,
Plant an
d Equipment (including Information Technology) Asset Register similar
regular Capital Strategy meetings are held with the Leisure Services Manager,
Transport Manager and Information Technology Manager.

LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



29

9.0

OTHER RELEVANT PLANS AND STRATEGIES


9. 1

The Council
recognises that as a corporate resource, its property is a factor of
production in the delivery of its core services and strategic objectives. It is
therefore essential that the property implications of service actions and plans are
taken into account at
all stages, and that the cross cutting strategies determining
how the Council operates are also reflected in the plan for its assets.



9. 2

The organisational arrangements demonstrate how service planning is taken into
account in the development of the asset
management plan, and are integrated into
all the decision making and review procedures adopted to manage the Council’s
property strategically. There are three separate but integrated areas of strategic
planning that are reflected in all asset management a
ctivities:




LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



30

THE PERFORMANCE AND DELIVERY PLAN


10.0

REVIEW OF OUTCOMES DELIVERED


10. 1

Since the last asset management plan was formally reported the following
outcomes have been delivered:


Property reviews
:


10. 2

The Asset Management Procedures require all se
rvice departments to report on
their property needs to the Property Management Review Manager annually, and
for this process to inform the delivery of the Asset Management Review
Programme. The Asset Management Review Programme is on target reviewing
20%
of properties per annum so that all properties will have been the subject of a
review within 5 years from its implementation. The embedding of asset
management processes into the Council’s overall business management has been
further strengthened since th
e plan was last reported by the introduction of
specific requirements for considering future asset and accommodation needs and
suitability issues as part of all departmental, divisional and team plans.


10. 3

This ongoing process of property review has been supp
lemented with the
commissioning of an independent high level strategic review of all operational
property the first stage of which has been completed. The non operational
properties have also been reviewed to consider worth of disposal to fund
reduction i
n debt.


10. 4

Specific recent outcomes of these review processes, other than disposals, which
are reported later in this section, include the following:


Reviews completed

Outcomes

High Level strategic
review of all operational
buildings, including
review
of allotments

Schedule of short medium and long term disposal
and redevelopment opportunities identified, to be
considered in more detail to enable development of
disposals programme and projects for investment

Comprehensive review of
value of non
-
operat
ional
assets

Establishment of opportunity cost of assets held to
enable financial performance to be measured against
alternative investment options.

Ward reviews for West
Barnes, Merton Park and
St.Helier

Specific outcomes include taking ownership of p
art
of the Royal Sun Alliance Sports Ground through a
s.106 agreement; identification of potential
redevelopment opportunities; and identification of
the need to consider the future of Wimbledon House
School Site. In addition the ward reviews improve
Memb
er knowledge and awareness of asset
management issues and the condition of the
corporate estate.

LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



31

Review of potential
housing development
sites and estate shops

To identify those that should be transferred under
Stock transfer subject to a clawback provis
ion, and
those to be retained to maximise benefit to the
Council

Review of operational
properties to identify
energy reduction
opportunities

Schedule of invest to save opportunities identified to
be prioritised according to shortest pay back period
and gr
eatest potential savings/carbon reduction.

Review of top 20 most
expensive buildings in
terms of maintenance
costs, maintenance fees
and utilities costs

To be cross checked against Strategic Property
Review to inform future investment and disposals
progra
mming

A review of public halls,
community centres,
performance spaces and
other meeting spaces
.

To enable a plan to be put in place to improve
utilisation.

Scrutiny Review of all
leisure centres

Recommendation to retain all 3 leisure centres and
associat
ed proposals to consider the internal
reconfiguration of Wimbledon, and to explore
options for re
-
provision of Morden Park Pools.

Community Centres
Review

Identified the need for active development of the
role of the centres within the community.



Key p
roperty projects delivered:


Project

Outcomes

Invest to save project
to provide new
business start up units
in Canterbury Road

The unit now completed and let to new businesses, and
generating a self sustaining income, and providing
seedcorn business devel
opment to sustain the local
economy and encourage economic sustainability

The Generator

Provision through a s.106 agreement of a business
incubator development to foster new business
development in a purpose built serviced facility at Miles
Road, Mitcham
, contributing to local employment and
sustainability

Transfer of High
Schools

Two high schools transferred to Academy status,
supported by external sponsorship.

Childrens Centres

Designation of 6 Children’s Centres.

Expansion of
Garfield Primary
School


Development of school to accommodate 2 form Entry

Schools Kitchen
Project

Conversion of the majority of Primary School kitchens
to cook fresh on site to enable improved health


LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



32

Disposals and Capital receipts generated:


Year

Properties disposed of

Tota
l Capital
generated

2007/8

Right to Buy housing
disposals

Leasehold/Freehold sales

65
-
75 Marbles Way

Tadworth Estate

60 Garfield Road

35 Mitcham Park

£1,088,375


£159,364

£458,000

£3,446,536*

£44,250

£519,000

2008/9 (To date of
drafting)

71 Leyton Road

H
RA Right to Buy
disposals

Leasehold/Freehold sales

170 Arthur Road,
Wimbledon (Wimbledon
Park Hall)

118 Robinson Road,
Wimbledon

1 Durham Road**

Land Adjacent to 55
Hanover Road, Merton**

£249,500


£180,750

£834,800



£945,000


£320,000

£500,000


£90,000

*
Capital receipt reduced by works done in lieu for tax efficiency purposes
.

**
Sold at auction but not completed at time of drafting


10. 5

The total performance against target for capital receipt generation through asset
management including right to buys was
as follows:







Achievement of the Capital Receipts target is dependent on support (including
planning permission) in enabling properties identified as surplus to move forward
for disposal within financial year timetables. The ability to secure some of
the
anticipated receipts has also been hindered by the significant change in market
conditions that has taken place since the end of 2007, and the ongoing credit
squeeze. This is impacting on the timetable for completing disposals and
significant develop
ment projects, and will be kept under review as the future
disposals programme is implemented, to ensure the Council is maximising value.




2007/8 Target: £10,000,000

Performance: £5,715,525

2008/9 Target £10,000,000 Performance to date £3,120,050
(Including auctioned properties) Final outturn to be

reported at end of financial year



LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



33

11.0

MAINTENANCE


Improvements and performance


11. 1

The Council has renewed all condition surveys for its corporate op
erational estate
since the last report, and recognises the risks inherent in not having premises
maintained in an appropriate state of repair. As a result of this the following
improvements in performance have been delivered:




The opportunity to link cond
ition information storage and manipulation
with that used to inform the Education Asset Management Plan has been
taken



The maintenance Help Desk has been consolidated into the Facilities
Management team to ensure improved communication, synchronisation of

works and inspections and better service delivery.


Action to be taken during the plan period


11. 2

During the plan period, the following actions will be addressed to further improve
the Council’s performance in respect of the maintenance of its estate:




The o
verall maintenance backlog for corporate property has been
quantified as follows:

i.

For Operational Properties £13.569 million, including £2.256m for
mechanical works, £1.832 for electrical works and the remaining
£9.481 to building works

ii.

For Schools £15.627
M including the Voluntary Aided schools but
excluding Academies and Private Finance Initiative schools



To address the backlog for Operational Properties the following amounts
have been allocated in the Capital Programme:


2009/10

2010/11

2011/12

£0.626m

£
0.7m

£0.7m


Together with further budgets for 2009/10 of £0.25 m to address
remaining Disability Discrimination Act works, £0.3M for ongoing
refurbishment of the Civic Centre, and a revenue maintenance budget of
£0.584m.



To address the maintenance backlog
for Schools increased grants for
school modernisation will provide the following:


2009/10

2010/11

2011/12

£0.537m

£1.460m

£To be advised




LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



34



Future condition surveys will be updated on a rolling programme of 20%
per annum. As a part of these surveys, t
he estimated remaining life of
each asset will be updated to enable whole life costing to be assessed as
part of any future investment programme



A ten year planned maintenance programme will be put in place based on
the outcome of the new surveys. Conditio
n information will be linked to
the categorisation of the Council’s estate into core, medium term and short
term properties, and will enable the introduction of a standard of
maintenance appropriate to the estimated life of the asset to the Council.
This
will ensure value for money and sustainability for the long term, and
will enable poorly performing buildings to be prioritised for capital
improvement or replacement.



Highways planned maintenance programmes to be extended to ten years



The Leisure Centre
Management Contract will be re
-
let on a structure
aimed at securing best value for delivering fit for purpose leisure facilities,
improving service delivery and addressing the maintenance backlog.



The Grounds Maintenance Contract will be reviewed for re
-
l
etting on a
combined basis for Leisure, Highways and Housing property to ensure
value for money.



Preparation will be put in place for securing funding for the improvement
of Primary Schools from the Building Schools for the Future fund, which
is anticipate
d to be available from 2011



The Council will be progressing the option of total transfer of its housing
stock. This will consider inclusion of transfer of associated land and
buildings, including estate shops, garage sites and housing related amenity
land
, and will reduce ongoing management costs providing improved
capacity for asset management delivery.



The financial management of maintenance works will be transferred from
the Confirm system to the ProActis system, enabling improved financial
control and
analysis of planned and reactive maintenance expenditure


Targets set


11. 3

The targets for delivery over the plan period will be developed as part of the
delivery action plan and will include ratio targets for improvements in reactive
maintenance as a result o
f the new condition surveys and the transfer to the
ProActis system.


11. 4

The approach to addressing the backlog of maintenance across the entire Council
portfolio is to prioritise the funding available for works that both secure
improvements to service delive
ry and physical improvements in all portfolio
areas. This is evidenced by the identification of the maintenance benefits that can
be delivered through property review, service improvement plans, alternative
management arrangements and new development. Th
e objective of reducing the
backlog, whilst primarily delivering a sustainable fit for purpose estate is
embedded across all service areas, and understood at all levels in the authority.

LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN
2009
-
2012



35



LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN 2009
-
2012



36

12.0

PRIORITY ACTIONS FOR DELIVERY (AND BIDS FOR FUTURE YEARS)
-
P
ROPOSED


12. 1

The priority actions and agreed outcomes for delivery during the asset management period will develop year on year. This
section identifies those that have currently been identified (although funding has yet to be approved), and will be updated a
nd
have progress reported to both CMT and Members at least annually. The priorities include capital projects, actions that can
lead to improvement in how the estate is managed, and future asset related strategies to be developed during the plan period. I
t
should be noted that the lists detailed below will require approval through the normal Council financial system. The tables
below set out the projects identified, the funding allocated (where appropriate) and how they deliver the Council’s corporate
agen
da
1
:


Capital projects


Funding requirement

£000’s


Project


Specific actions

2009/10


20010/11

Proposed

2011/12
Proposed

Linkage to corporate/service
objectives

Repairs and
Maintenance

Prioritised programme based on building
maintenance profile

acr
oss all areas, and
specific works such as boiler renewal, radiator
replacement and window replacements

626

700

700

All objectives

through delivery of a fit
for purpose estate for the delivery of
improved services. Capacity building
and ensuring value fo
r money

Disability
Discrimination Act
works

Continued delivery of a rolling programme of
identified works to comply with DDA
legislation

250

0

0

All objectives, in particular increasing
accessibility for older people, children
and people with disabilities
, and
ensuring long terms sustainability.

Accommodation
Strategy
(Compliant with
estimated
remaining medium
term life of
building for current
purpose)

Completion of refurbishment programmes for
the Civic Centre, and reorganisation of
accommodation to meet
target space standard of
8.5 m2 per person, also to facilitate increased
mobile working, and feasibility study into the
long terms options for accommodating Civic
Centre uses.

300

0

0

Capacity building and ensuring value for
money.




1

NB Capital pr
ogramme also includes significant funding for highways works, which will be set out in the Highways asset management plan.


LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN 2009
-
2012



37

Leisure and Parks

Pa
rks and leisure investment package including
Wimbledon Theatre refurbishment, Replacement
of Leisure Centre plant & machinery, and initial
investigations into leisure centre redevelopment
requirements


3113

1900

1522

Delivering healthier communities and
su
stainable communities.

Wimbledon
Theatre

Refurbishment

550

0

0

Delivering healthier communities and
sustainable communities.

P4 site
development

Key development project

750

2750

0

Capacity building and ensuring value for
money

Invest to save

Investment
in Phase 1 energy saving projects
identified as a result of the Energy Reduction
review

100

100

100

Delivering sustainable communities.
Reducing impact on the environment and
ensuring value for money.

HRA

Decent Homes Programme and Major repairs to
HRA
stock

6500

TBA

TBA

Delivering sustainable communities

Progress key
development
initiatives

Mitcham Town Centre development

Morden Town Centre development

Regeneration of former Eastfields Youth Centre
and surrounding land (Mitcham Vale)


750

550

550

Deliv
ering sustainable communities.

Building Schools
for the Future

Statement of Interest submitted to for Building
Schools for the Future. Outcome dependent on
Department for Children Schools and Families
assessment of priorities. Aiming for formal
ent
ry into programme asap

target spring 2009


30

350

1600

Children and Young People, improving
educational outcomes and delivering
sustainable communities.

Primary Capital
Programme

Prioritised strategy submitted to Department for
Children Schools and Fam
ilies and approved
subject to modification

strategy to be revised
and implemented in accordance with allocations

3000

5378

TBA

Children and Young People, improving
educational outcomes and delivering
sustainable communities.

New Pupil
Places/Pupil
growt
h

Implement plan to provide for mid range
forecast growth of 12 forms of entry by 20011

3006

3070

400

Children and Young People, improving
educational outcomes and delivering
sustainable communities.

Special
Educational Needs
Centre of
Excellence

Build Se
condary department on Risley Field site
for St.Ann’s School, increasing capacity from 90
to 112 places in modern appropriate
accommodation. Total Budget £11.34m


1817


Children and Young People, improving
educational outcomes and delivering
sustainable co
mmunities.

LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN 2009
-
2012



38

Intergenerational
centre

Building London’s first inter
-
generational centre
to bridge the generation gap

3000
NB
Funded
by LDA

0

0

Children and Young People, improving
educational outcomes and delivering
sustainable communities.

6
th
Forms

Pro
vision of 6
th
forms at four Merton
Community/Voluntary Controlled schools.
Target to open September 2010

4600



Children and Young People, improving
educational outcomes and delivering
sustainable communities.




LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN 2009
-
2012



39

Service Specific actions approved for pr
ogress as an outcome of Property Review Process:



Service


Specific actions

Linkage to corporate/service
themes and objectives

Children, Schools and
Families



Purchase of Risley Field for Special
Educational Needs Centre of
Excellence

Capacity buildi
ng and ensuring value
for money

Corporate Services



Progress vacation of 41
-
43 Palestine
Grove for surplus property procedure



Provide budget for resources required
to enable disposals to be implemented
(Via OCPB)



Third floor of Athena House being
vacated a
nd lease surrendered

Provide capital receipts to enable
delivery of key priorities in Capital
programme. Capacity building and
ensuring value for money

Community and Housing



Progress stock transfer

o

Ballot May 2009

o

Transfer April 2010 (subject
to outcome o
f ballot)



Confirm disposal timetable for 98
Worple Road and 9
-
15 Haslemere
Avenue

Capacity building and ensuring value
for money. Meeting housing needs.



Environment and
Regeneration



Progress development of disposals
programme


Provide capital receipts
to enable
delivery of key priorities in Capital
programme. Capacity building and
ensuring value for money.




Strategies/reviews to be developed during the life of the AMP:


Project

Action to be taken

Update from last plan

Linkage to corporate/service
o
bjectives

Ensure the supply of
affordable housing
stock to meet needs

Target of 400 affordable homes to be met through
identification of further sites suitable for disposal for
affordable housing, and using the affordable housing
Housing on target in providing
affordable housing. New
targets set are as follows:

Delivering sustainable
communities

LONDON BOROUGH OF MERTON CORPORATE ASSET MANAGEMENT PLAN 2009
-
2012



40

s.106 fund effectively.
Delivery against target to be
reported annually.

2009/10: 105 units

2010/11: 105 units

Re
-
letting of the leisure
contract

Explore opport
unities to let joint contract in
Partnership with LB Sutton, Ensure terms deliver
value for money and help to secure service
improvements and reduction in maintenance backlog.
Explore redevelopment of Merton Park Pool.

Short term leisure contract re
-
let
to 30/11/2010. Long term
contract in partnership with
Sutton still ongoing.

Delivering sustainable
communities. Capacity building
and ensuring value for money.
Delivering healthier
communities

Feasibility study into
the future of the Civic
Centre, as par
t of
progressing of office
accommodation
strategy.

Detailed options assessment of future use and value of
Civic Centre, and alternative options for provision of
fit for purpose accommodation, and potential
contribution this could make to the delivery of
re
generation objectives. Cost benefit analysis, and
development of a medium term strategy for
recommendation.

Continue to roll out interim improvements to
utilisation of Civic Centre through application of