Item 12 - Appendix 1 CORPORATE ASSET MANAGEMENT FRAMEWORK
West Dunbartonshire Council · 1 February 2023
Back to Infrastructure, Regeneration & Economic Development Committee — 1 February 2023 and its agenda
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CORPORATE ASSET MANAGEMENT FRAMEWORK ITEITE ITEM 12 - APPENDIX 1
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CONTENTS Executive Summary 3 01 Context 5 02 Introduction 6 03 Background 7 04 Strategic Approach 8
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WEST DUNBARTONSHIRE COUNCIL CORPORATE ASSET FRAMEWORK 3 WEST DUNBARTONSHIRE COUNCIL CORPORATE ASSET FRAMEWORK EXECUTIVE SUMMARY The Strategic Vision shows our commitment to partnership and creating a modern estate that can attract, retain and empower our people as well as enabling the use of technology to improve operational effectiveness and meet WDC’s Net Zero ambitions by 2045. Our Framework needs to align with the ambition of our strategic outcomes. 3
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WEST DUNBARTONSHIRE COUNCIL CORPORATE ASSET FRAMEWORK 3 01 CONTEXT West Dunbartonshire West Dunbartonshire Council is a Local Authority in the West of Scotland, sitting between Glasgow and the Loch Lomond & Trossachs national park and often considered the gateway to the Scottish Highlands. With a population of just below 82,537 and an area of 68 sq. miles, West Dunbartonshire is a small Council both in terms of population and land coverage. However, despite its size, West Dunbartonshire boasts a diverse range of land uses, natural and built resources, and a mix of dense urban form, rugged moorland and spectacular watercourses. The Council is responsible for provision of a range of services to its residents and citizens, which includes the collection of waste and recycling, the provision of schools and education, the management of planning and building standards, the provision of libraries, street lighting, and the collection of Council taxes. In delivering these functions, the Council owns and operates a large built estate. Energy consumption from our buildings and operations are responsible for approximately 44% of our carbon footprint; 47% of our overall footprint results from the waste and recycling of West Dunbartonshire (Both operational and domestic household waste); and 9% of the remaining emissions results from both Council and staff vehicles and the operation of other equipment, such as grass cutters. The Council also has responsibility to ensure it is delivering on Climate Change targets in line with Climate Change strategy.
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6 WEST DUNBARTONSHIRE COUNCIL CORPORATE ASSET FRAMEWORK WEST DUNBARTONSHIRE COUNCIL CORP 02 INTRODUCTION The Asset Management framework demonstrates how our assets support the strategic priorities of the council, the delivery of key services, ensuring their efficiency and effectiveness in achieving best value and meeting the needs of communities within West Dunbartonshire. Sound and efficient management of our assets has a significant part to play in continuing to improve and develop our services to the Community and through service delivery planning, we will continue to clearly set out the service priorities and the asset implications. Effective Asset Management can, as well as improving efficiency and effectiveness, generate income by selling surplus assets, which will in turn generate long term revenue savings as those assets would no longer be a financial burden. 6
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CORPORATE ASSET FRAMEWORK 7 WEST DUNBARTONSHIRE COUNCIL 03 BACKGROUND Our Strategic Priorities The strategic priorities of the Council explain how the Council will work to improve the lives of residents, and support delivery of Community Planning West Dunbartonshire’s (CPWD) Local Outcomes and Improvement Plan, and the West Dunbartonshire Health and Social Care Partnership (HSCP) strategic plan. This will ensure the Council is able to deliver on its aspiration to reduce inequality for the people of West Dunbartonshire. Our priorities will be delivered through the Council’s Strategic Plan 2022-27 and this Corporate Asset Management Framework facilitates the delivery of these strategic priorities. Through the strategic management of Assets, we will demonstrate how we will deliver against the Council’s Climate Change Strategy, actions and targets This includes actions to reduce energy consumption and improve energy and water efficiency in our buildings and across our operations. We will drive the rationalisation and improved utilisation of our offices, depots and other buildings, ensuring that we respond adequately to the green recovery of the Covid19 pandemic and future proofing our assets for a net zero. Energy and Water currently make up 44% of the overall carbon footprint, so it is important that we continue to make efforts to reduce consumption and emissions from energy and water to have a greater chance of getting to net zero by 2045. We will therefore look to exceed the current energy reduction target of 2% The Framework has been developed taking recognition of the Chartered Institute of Public Finance and Accounting (CIPFA) guidance which suggests assets should be classified under 6 generic categories. Strategic management of these is evidenced through Asset Management Plans for each of these asset groups. Each plan can be accessed through the links below: Property Open Spaces Roads Structures & Lighting Housing Vehicle Fleet & Plant Information and Communication Technology (ICT) .
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8 WEST DUNBARTONSHIRE COUNCIL CORPORATE ASSET FRAMEWORK 04 STRATEGIC APPROACH Elected Members, employees and partners have a key role to play in continuing to contribute to and inform the strategic management and operational provision of Assets. The Council’s corporate and collaborative approach to Asset Management will ensure that our assets are fit for purpose and through each Service Asset Plan provides the actions to be achieved which continues to support this Corporate Asset Management Framework. Asset Plans, Property Disposal Strategy together with other relevant plans such as Climate Change actions, will be monitored, reviewed and reported to various strategic forums and Council Committees in line with appropriate timescales. The strategic responsibilities below outline the key areas to deliver tangible benefits contributing to the delivery of the Council’s Priorities and Objectives: The Strategic Asset Management Group oversees the Corporate Asset Management for the Council. The Strategic Asset Management Group chaired by the Chief Officer Supply, Distribution and Property, with membership from all service areas, facilitates a corporate approach to the management and prioritisation of all assets. • The Strategic Asset Management Group will continue to consider the capital and asset plans, opportunities and activities such as disposals, energy and water management etc. in line with best value and continued optimisation of efficiencies. • We will generate additional income through an active disposal of redundant assets programme. The disposal strategy and plan can be found here. • We will carry out a further review of new proposals which could lever additional investment into West Dunbartonshire linked to utilising our existing assets. This work should be reviewed annually. Asset Management Performance Indicators are monitored on a quarterly basis and reported to Committee in line with the delivery plans. The Supply Distribution and Property Delivery plan can be found here. • All Asset Plans will be reviewed and approved by the Strategic Asset Management Group and Committee as required.
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CORPORATE ASSET FRAMEWORK 9 WEST DUNBARTONSHIRE COUNCIL Asset Management Plans All Asset Management Plans will support the delivery of the strategic plan these take account of six key drivers which are promoted by CIPFA as being critical to effective Asset Management. The six drivers and a description of each are illustrated below: Driver Description Condition It is essential to understand the condition of the asset and it is essential that regular surveys of condition are undertaken Suitability This is also known as the “fit for purpose” test. It seeks to establish how well an asset is suited to its current purpose Sufficiency This relates to the demand and sustainability of the asset. Sufficiency is concerned about how an asset is used now and in the future. It helps to identify underused assets and is concerned with asset capacity Revenue Costs The costs of operating assets are important and need to be a feature in any asset management plan in order both to monitor against predicted costs but also to establish the economic asset use Accessibility This has two aspects, the first linked to the Equality Act 2010and how accessible the property is to disabled people, this is reported under SPI CM4. The second how accessible is it generally, is it in the right location Value Knowing the value of assets is essential for decision making. While valuations are required for accounting purposes it is also essential to know the market value of the asset when considering asset management plans
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10 WEST DUNBARTONSHIRE COUNCIL CORPORATE ASSET FRAMEWORK Capital Project and Planning The Council utilises option appraisal techniques (where appropriate) for capital plan assessment. The full option appraisal process comprises five stages as follows. 1. Determine the strategic objectives of the organisation. This involves the examination of each option to identify the strategic contribution of each while considering any other objectives that may have to be considered and any wider social or economic benefits. This examination results in options being ranked according to how they meet the specified objective. 2. Assessment of the whole life costs of the preferred option under different Procurement options which may include lease versus buy, new build versus refurbishment or self- finance versus PFI. 3. Adjusting the whole life costs taking account of risk and optimism bias and confirmation that the preferred demonstrates value for money and that it is affordable. 4. Implementation and monitoring of the preferred option at each stage in the project upon commencement. 5. Post project evaluation and feedback of lessons learned - i.e. what did we do right and what did we do wrong?
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