Corporate Asset Management Strategy and Plan
Argyll and Bute Council · 16 February 2023
Back to Budget Pack — 16 February 2023 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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ARGYLL AND BUTE COUNCIL STRATEGIC ASSET MANAGEMENT BOARD COUNCIL 23 FEBRUARY 2023 CORPORATE ASSET MANAGEMENT STRATEGY & PLAN 1. EXECUTIVE SUMMARY 1.1 Asset management is a structured and systematic approach to managing fixed assets on an ongoing basis. The Council has a large and varied collection of assets including buildings, vehicles, transport infrastructure (roads / bridges / piers), ferries, parks, cemeteries to information technology hardware and software. Assets are essential to the operation of the Council and ensuring they evolve and remain fit for their intended purpose is key to the function of the organisation and service delivery. Successful asset management addresses all phases of an asset's life cycle, from pre-acquisition through to retirement. Effective asset management planning means knowing what you own, where it's located, what it costs you, what it will cost you in the future, whether it will support current and future service delivery and who is responsible for it. 1.2 The Council adopts a systematic approach to asset management and this paper sets out the principles, polices and summary priorities for 2023/24. The Strategy and Plan are consistent with the Prudential Code for asset management and the outcomes of the Best Value 2 review. This report in conjunction with appendices and wider Budget Pack forms our Corporate Asset Management Strategy and Plan. Asset Management is delivered by all departments and teams of the Council and overseen by the Asset Management Board. A review of the Asset Management Board and development of new Capital Investment Strategy 2023 – 2028 is underway and will be shared with Members early in 2023/24 financial year for implementation. The underlying principles of the Council’s Asset Management Strategy and Plan are:- • The Council’s has a commitment to sound asset management; • All Council assets are required for operational, regeneration, economic and commercial development purposes; • There are clear links between asset management, the Corporate Plan, the Argyll and Bute Outcome Improvement Plan (ABOIP), Live Argyll and the Argyll and Bute Health and Social Care Partnership (HSCP); • Asset Management is linked to available resources and budgetary considerations; • There are sound Governance arrangements for asset management; and • Asset management requires to be forward looking to deliver the assets the Council requires for future service delivery.
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ARGYLL AND BUTE COUNCIL STRATEGIC ASSET MANAGEMENT BOARD COUNCIL 23 FEBRUARY 2023 CORPORATE ASSET MANAGEMENT STRATEGY & PLAN 2. INTRODUCTION 2.1 The Corporate Asset Management Strategy & Plan establishes the Council’s overall approach to management of its asset base. In particular it sets out: • The Council’s has a commitment to sound asset management; • All Council assets are required for operational, regeneration, economic and commercial development purposes; • There are clear links between asset management, the Corporate Plan, the Argyll and Bute Outcome Improvement Plan (ABOIP), Live Argyll and the Argyll and Bute Health and Social Care Partnership (HSCP); • Asset Management is linked to available resources and budgetary considerations; • There are sound Governance arrangements for asset management; and • Asset management requires to be forward looking to deliver the assets the Council requires for future service delivery. 3. DETAIL Core Values of Asset Management 3.1 Asset management is a structured and systematic approach to managing fixed assets on an ongoing basis. This approach addresses all phases of an asset's life cycle, from pre-acquisition through to retirement. Effective asset management planning means knowing what you own, where it's located, what it costs you, what it will cost you in the future, whether it will support current and future service delivery and who is responsible for it. 3.2 It is recognised that these general guiding principles can also be applied to the management of non-fixed, or less permanent, assets such as vehicles, plant and equipment. 3.3 The Council will ensure that the assets it provides are used in a fair, consistent, efficient and effective way, taking into account their social and environmental impact and the needs and aspirations of our people, communities, areas and organisation. 3.4 Asset management is the process of ensuring that the Council’s Assets are: • fit for purpose • used efficiently • maintained on a sustainable basis • matched in investment terms to service needs.
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Approach and Commitment to Sound Asset Management 3.5 The Local Government in Scotland Act 2003 provides the legal framework for both the Prudential Code and the Best Value arrangements. Under the Prudential Code local authorities are authorised to make capital investments where it can be demonstrated that these investments are affordable, prudent and sustainable. A local authority, which secures Best Value, is one, which promotes continuous improvement in the performance of its functions. 3.6 Asset management is a key element of achieving Best Value. Councils have a statutory duty to deliver Best Value. This has significant implications for asset management as Councils must: • ensure that management arrangements secure continuous improvement • balance quality and cost in relation to the procurement of assets • ensure asset management decisions contribute to sustainable development. 3.7 Asset management has potential to contribute to achievement of efficiency savings. 3.8 The Best Value 2 Asset Management templates published by Audit Scotland essentially set out the direction of travel for asset management within the Council. The desired outcomes of good practice contained within these templates have been fully adopted and are being actively promoted and progressed by the Strategic Asset Management Board. 3.9 In line with Best Value Guidance: “Sound Management of Resources” the Council will manage its assets to deliver the Council’s corporate and ABOIP objectives, by providing the basis for corporate challenge and a focus on the future asset requirements in respect of service delivery. Current Governance Arrangements for Asset Management 3.10 Council governance of asset management by elected members is on the basis of the Council directing the work of the Council through the Strategic Management Team. 3.11 3.12 Responsibility for Council assets is held by the two Departments: • Executive Director Douglas Hendry • Executive Director Kirsty Flanagan These Departments are headed by an executive director reporting to the Chief Executive and supported by heads of service who are responsible for day to day service provision and the effective and efficient use of assets. Assets owned by the Council but operated by the HSCP and Live Argyll continue to be the responsibility of the Council. 3.13 The Head of Commercial Services is the Chair of the Strategic Asset Management Board and is responsible for the development of the Corporate Asset Management
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Strategy, production of the Corporate Asset Management Plan, and preparation of the Capital Plan – referred to as Service Asset Management Plans (SAMP) or Group Asset Management Plans (B). More information about the Strategic Asset Management Board can be found at Appendix A. 3.14 It is noteworthy that a review of the Asset Management Board and development of new Capital Investment Strategy 2023 – 2028 is underway and will be shared with Members early in 2023/24 financial year for subsequent implementation this calendar year. Council Current Asset Base 3.15 The table below summarises the asset base of the Council. The Council has an asset base at 31 March 2022 with a Net Book Value of £706.465m (2021 - £647.312m) that includes: Description Number Description Number Shared Accommodation (Offices) 27 Roads (km) 2,286 Operational Depots 20 Public Road Bridges 901 Primary Schools (in use) 65 Car Parks 118 Secondary Schools 5 Marine Structures 41 2-18 Schools 4 Public Road Coastal Protection (km estimated) 200 Joint campuses 1 Public Road Retaining Wall (estimated) 1,000 Youth Centres 1 Public Conveniences 85 Adult Learning Centres 2 Waste Disposal facilities 12 Early Learning Centres 2 Ferries 6 School Houses 19 Airports 3 Learning Centre for pupils with complex additional support needs 1 Cemeteries 131 Homes for the Elderly 6 Children’s Homes 5 Hostel 3 Resource Centres 3 Leisure Centres 5 Crematoria 1 Community Centres 4 Lighting Units 14,642 Halls 5 Vehicles and Plant 634 Libraries 11 IT Systems and Devices (estimated) 16,955 The table includes the majority of the Council’s assets but is not exhaustive. 3.31 A range of policies in support of good asset management practice have been developed and are included in the appendices to this document. The asset management policies approved to date are outlined in Appendix B. In addition Services have been encouraged to develop policy statements in respect of each asset group. Corporate Asset Management Plan
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3.32 Each year this Corporate Asset Management Plan is prepared on the basis of the underlying principles of the Corporate Asset Management Strategy referred to above. The aim of the Corporate Asset Management Plan is to ensure that capital and revenue expenditure is directed efficiently and effectively for the coming year to further: • Strategic Change • Service Development • Asset Sustainability. 3.33 In preparing this Asset Management Plan services ensure that the opportunity cost of financial resources tied up in assets is minimised and that there is: • an integrated corporate approach towards asset management, capital planning and budgeting process for both capital and revenue • a process for changing the Council’s asset portfolio consistent with the Corporate Plan and ABOIP • a process for asset decision making which is consistent with services’ requirements • an identification of opportunities for innovation, asset investment or disposal • provision of a context for capital project evaluation helping to prioritise decisions on spending. 3.34 Each executive director is responsible for the completion of their SAMP, GAMP summary templates. Service asset managers prepares the SAMP, GAMP, and Asset Group Summary templates, which, when approved by the Departmental Executive Director, will be submitted to the Strategic Asset Management Board. The Strategic Asset Management Board will evaluate each SAMP / GAMP (including Asset Management Plans prepared by the HSCP and Live Argyll). 3.35 3.36 In preparing SAMPs / GAMPS, service asset managers must consider the following guiding criteria: • maximise the impact of all capital and revenue expenditure on assets • apply asset performance indicators and benchmarking (Condition, Suitability and Risk ) to ensure robust planning and decision making • maximise the utilisation of assets • reduce the unit costs of service delivery through smarter and more efficient asset management • dispose of underperforming, unsuitable assets and assets which are at risk and invest in “fit for purpose” assets • share assets with Community Partners and Third Sector to maximise public benefit. Asset Management Plan & Priorities for 2023/24 This Corporate Asset Management Plan for 2023/24 reflects the Council's strategic objectives contained in the Argyll and Bute Outcome Improvement Plan (ABOIP) and Corporate Plan, capital investment priorities and Service Plans to support Strategic Change, Service Development and Asset Sustainability projects in 2023-24 and beyond. These projects have been developed taking account of
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3.37 3.38 3.39 3.40 3.41 the future service delivery requirements of the Council, the Argyll and Bute Health and Social Care Partnership (HSCP) and Live Argyll. On an ongoing basis all services assess the risk arising from the condition and suitability of the assets they have responsibility for. This enables the prioritisation of projects for inclusion within the capital plan. The continued reduction in available capital budgets and revenue maintenance budgets has had an impact on planned maintenance programmes. This in turn increases the rate of deterioration in asset condition across the Council leading to increasing demand for capital investment in the asset base to maintain service delivery. The Service Asset Management Plans (SAMPS) & Group Asset Management Plans (GAMPS) that outline the proposed resource allocation, condition and prioritisation of capital expenditure are outlined at Appendix C. It is clear from the SAMPS / GAMPS that the real terms reduction of available capital resources year to year plus recent unprecedented increases in inflation and global events is resulting on the majority of investment towards Asset Sustainability – ie ensuring our current assets remain fit for purpose. There is minimal service development, transformation or strategic change mainly due the higher value of such projects. High Risk Assets Not Addressed within Capital Plan Proposals for 2023-24 The Capital Programme for 2023-24 has been structured to address the vast majority of the Council’s high risk assets and priorities. However, in 2023-24 there are 2x specific assets and project areas that are currently unfunded that are deemed to be high risk. The high risk assets not addressed within the SAMP / GAMPS for 2023-24 are:- Asset Name Description of Risk Estimated Value (£000) Comments Key Business Applications 23/24 Replacement of Civica Document Management and Workflow and Revenues and Benefits System 137 There is insufficient funding to replace the Revenues and Benefits System or the Electronic Document Management & Workflow System which are both approaching end of contract. These have been categorised as a red risk. Cemeteries Diminishing capacity of burial lairs across asset base and network 310 Burial lairs across cemeteries are a finite resource. Due to age and physical size some cemetery sites are nearing capacity and business
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case / planning needs to be developed to consider expansion or new sites if current choice for burials is to be continued. 4. CONCLUSION 4.1 The aim of this Corporate Asset Management Strategy & Plan including summarised service / group asset management plans is to ensure that asset management takes place in a systematic and well governed manner taking cognisance of corporate policies, plans, systems and processes. 5. IMPLICATIONS 5.1 Policy – The report sets out the Council’s policy and prioritisation in respect of Asset Management. 5.2 Financial - This strategy and plan follows Prudential Code and the Best Value arrangements in terms of Asset Management. Financial implications significant in terms of the planned delivery of capital / revenue and systematic approach to asset management. 5.3 Legal - Systematic approach to asset management complies with various statutory and legal duties such as ensuring compliance with Disposal of Land (Scotland) Regulations and ensuring best value / expenditure of public funds. 5.4 HR - Strategy and Plan supports prioritised approach to assets that are required for workforce to undertake their duties now and in future. 5.5 5.5.1 5.5.2 Fairer Scotland Duty - Equalities - Socio-Economic Duty - The Strategy and Plan sets out significant investment in asset base to sustain and improve operational delivery of Council services for all. The Strategy and Plan sets out significant investment in asset base to sustain and improve operational delivery of Council services for all. These policy and proposal sets a prioritised and systematic plan to invest in Argyll and Bute region stimulating or sustaining economic attractiveness of our area. Many local businesses also contracted in implementation of SAMP / GAMPS.
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5.5.3 Islands Duty - Island investment is prioritised throughout strategy and plan including several projects to improve connections and transport. Notably some of biggest potential investments is on Mull with LEIP bid and Pier Upgrades proposed. 5.6 Climate Change Asset Management Strategy & Plan plus all SAMPS/ GAMPS prioritise Climate Change at service level. Fleet move to more EVs, Building Design / Efficiency and waste all included as examples. 5.7 Risk - This strategy and plan follows Prudential Code and the Best Value arrangements in terms of Asset Management. Financial implications significant in terms of the planned delivery of capital / revenue and systematic approach to asset management. 5.8 Customer Service - Customers will be impacted by individual projects and investment to sustain or improve assets. Notable drop in real terms capital budget over 3-5 year period likely to lead to reduced customer satisfaction ie service cessation, remodelling or reduction such as less building, not as many roads improved. Douglas Hendry, Executive Director Kirsty Flanagan, Executive Director/Section 95 Officer Policy Lead for Finance and Commercial Services: Councillor Gary Mulvaney For further information please contact: Anne Blue, Head of Financial Services Tel: 01586-555269 E-mail anne.blue@argyll-bute.gov.uk Ross McLaughlin, Head of Commercial Services Tel: 01436 658914 E-mail ross.mclaughlin@argyll-bute.gov.uk 9 February 2023 APPENDICES:- Appendix A – Detail of current arrangements of Asset Management Board Appendix B – Asset Management Policies Appendix C – Service Asset Management Plans (SAMPS) / Group Asset Management Plans (GAMPS)
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Appendix A – Details of current Asset Management Board The Strategic Asset Management Board is responsible for the development of asset management policy, planning and specification. In addition, the Board is responsible for the development and delivery of the asset management improvement programme and to support the production of the Corporate Asset Management Plan, Capital Plan and for providing corporate challenge within the asset management process. The corporate requirements of asset management will be driven forward by the Strategic Asset Management Board; which is the link between senior officers and elected members and the Council’s service operations in respect of matters of policy related to asset management. In this way a corporate view will be applied to major proposals relating to assets. The Strategic Asset Management Board responsibilities are: 1. To oversee asset management within the Council by applying a corporate challenge which ensures that all assets held by the Council are required for operational and regeneration/economic development purposes linked to corporate, service and ABOIP objectives and the requirements of Live Argyll and the HSCP. 2. To develop, introduce and fully establish asset management performance, planning and governance systems. 3. To plan for economic, efficient and effective use of assets, ensuring compliance with statutory regulations. 4. To prepare the Council’s Corporate Asset Management Strategy and Corporate Asset Management Plan. 5. To manage the approval process for Service and Group Asset Management Plans. 6. To provide objective appraisal of Initial Business Cases, Outline Business Cases and Full Business Cases. 7. To provide objective appraisal of Service Asset Management Plans (SAMPs) and Group Asset Management Plans (GAMPs). 8. To provide objective appraisal of Asset Group Summary templates in relation to the Capital Plan. 9. To work with stakeholders, both internal and external, in managing its assets including community planning partners. 10. To review delivery of the Capital Programme. 11. To review the resourcing of the delivery of the Capital Programme. 12. To ensure the capital works undertaken are of a high standard the Board should ensure that feedback of projects is sought by the users of the building / school / IT system etc. The board should review this feedback and pick up on any lessons learnt.
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13. To resolve issues in respect of project risks for individual projects that have impacted (reached a level above tolerance). 14. To ensure life cycle costs in terms of building, maintain and decommissioning are considered in procurement and prior to committing to the project. 15. To oversee the standardisation and future development of asset specification and procurement. 16. To undertake a full review of Asset Management IT systems held by the Council and the development of a strategic approach towards future system integration. 17. Seek to ensure that adequate provision is made for planned programme maintenance. It is noteworthy that a review of the Asset Management Board and development of new Capital Investment Strategy 2023 – 2028 is underway and will be shared with Members early in 2023/24 financial year for implementation.
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APPENDIX B – ASSET MANAGEMENT POLICIES 1.0 INTRODUCTION 2.0 OPERATIONAL PROPERTY ASSET POLICY STATEMENT 3.0 NON-OPERATIONAL PROPERTY ASSET POLICY STATEMENT 4.0 ASSET DISPOSALS POLICY STATEMENT 5.0 ASSET ACQUISITIONS POLICY STATEMENT 6.0 FLEET ASSET POLICY STATEMENT 7.0 INFRASTRUCTURE ASSET POLICY STATEMENT 8.0 ICT ASSET POLICY STATEMENT 9.0 BUILDING ELEMENT RISK CATEGORY POLICY STATEMENT
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1.0 INTRODUCTION Argyll and Bute Council holds each of its assets as a resource to be used in the delivery of services and to support and contribute to its corporate objectives. This is the fundamental premise that underpins all the Council’s actions in managing its assets. From the acquisition of new assets, their operation throughout their lifetime, right the way through to their eventual disposal, the overall way in which the Council deploys and accounts for its assets can be tested against the contribution they make to the overall corporate vision. It is recognised that all assets can make particular contributions in terms of:- • Optimising asset portfolios to meet changing service needs. • Reaping financial benefits from savings in running costs and enhancing capital receipts. • Implementing corporate plans and strategies in areas such as carbon reduction and sustainability. • Acting as a catalyst for partnership working with other public service providers. • Supporting the development and role of the Third Sector to provide key services within communities under the Community Empowerment Act. Improved service delivery through effective asset management will be achieved when key assets are in the right location, suitable and fit for purpose and in good condition. In particular all property assets will also need to be accessible and energy efficient. In terms of de-carbonisation, all assets should be used in a sustainable manner and contribute to a low carbon economy. The current financial climate has created particular problems for many public bodies. For example property assets cannot be so readily acquired, sold and, in some cases altered. The challenge for the Strategic Asset Management Board and the Council will be to consider the changes taking place in the external environment, such as new workplace practices, the increasing influence of information and communications technology and the growing importance of sustainability issues and to respond to these changes by implementing more innovative, aggressive and robust asset management policies. The purpose of this document is to set out a high level Asset Policy framework for Argyll and Bute Council. These Policies will, in turn, support the Council’s Asset Management Strategy and Corporate Asset Management Plan. The Policies set out in this document are in respect of:- • Operational Property • Non-Operational Property • Disposals • Acquisitions • Fleet • Infrastructure • ICT • Building Element Risk These Policies are a dynamic statement of how Argyll and Bute Council expects to better use and manage its assets. The Policies will be reviewed annually and updated, where appropriate, to reflect emerging best practice, altered priorities and any new statutory obligations.
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2.0 OPERATIONAL PROPERTY ASSET POLICY STATEMENT The Strategic Asset Management Board will oversee the management of all operational property assets to ensure that these resources are operated in an effective and efficient manner and contribute to an improved provision of services to the community. To do this the Board will:- • Ensure property is regarded and managed as a corporate resource as part of the ‘One Council’ property approach. • Ensure best value and best practice in the delivery of property and asset management services. • Review and challenge the need for retaining properties with services. • Ensure our property portfolio is suitable for its current use, and supports effective service delivery, and where practical, provides flexibility for easy adaptation to meet emerging and future service requirements. Ensure properties are compliant with relevant legislation. • Ensure properties are in an appropriate condition and maintained effectively. • Ensure office space is used efficiently. • Regularly measure and report the sufficiency of the school estate. • Review options for rationalising or consolidating property assets. • Regularly monitor and report on the performance of property and put in place measures for securing continuous improvement. • Ensure property running costs, environmental credentials and the consumption of resources are minimised. • Consider the needs of stakeholders. • Ensure that comprehensive asset management information to support decision making is collected, maintained and stored efficiently. • Key properties are held for economic development purposes and are managed by the Estates and Property Development team within Commercial Services to support local employment, regeneration and business growth. 3.0 NON-OPERATIONAL PROPERTY ASSET POLICY STATEMENT The Strategic Asset Management Board will review and challenge the non- operational property assets held by Services. It will ensure that:- • The investment portfolio is managed effectively to maximise income. • Rental voids are kept to a minimum. • Regular reviews of investment portfolio are carried out to assess purpose of retention and alternative development options. • Underperforming assets are declared surplus to requirements and sold, leased or transferred to community partners. • The cost of managing the non-operational portfolio remains competitive through review.
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4.0 ASSET DISPOSALS POLICY STATEMENT The Council has a statutory responsibility under the Local Government (Scotland) Act 1973, not to dispose of land at less than the best consideration. In order to comply with this obligation it will, in the majority of instances, seek to obtain “market value” for all surplus assets by:- • Enhancing value wherever practicable and appropriate. • Advertising on the open market to encourage competition from likely purchasers. • Setting a closing date for offers. • Supporting the transfer of certain assets, where appropriate, to the Third Sector in return for wider community benefits. • Generally recommending acceptance of the highest offer submitted in accordance with the above. • Reporting disposals to the Departmental Management Team or appropriate Committee of the Council seeking approval to proceed in line with Council Constitution. Audit Scotland recommend that consideration should be given to using ”legislation which allows councils to sell assets at below market value if it is for public benefit, where this is consistent with a published policy objective, and would achieve Best Value for the public sector overall”. Therefore in advance of any move to dispose of an asset, the Council will consider benefits from retaining an asset which may accrue to the public sector overall. The Strategic Asset Management Board, as part of the ‘One Council’ property approach, will challenge service departments to review their future property requirements and this will ultimately lead to a net reduction of property assets. The Board will ensure arrangements are in place to:- • Eliminate as far as possible the number of properties that are poorly used, unfit for purpose and in poor condition. • Pursue disposal options that will maximise the return to the Council where possible. • Become more commercial. For example to examine the possibility of setting up joint venture Special Purpose Vehicles (SPV’s), where appropriate, with the private sector to unlock the latent value of our assets. • Fast-track disposal options where possible where unique or significant beneficial opportunities may exist, or can be created. • Deliver capital receipts and revenue savings to the Council through the prompt and successful disposal of property. • Ensure the cost of managing the disposal process portfolio remains competitive through benchmarking, market testing and regular review. In addition to the foregoing, Part 5 of the Community Empowerment (Scotland) Act 2015 has introduced a right for community bodies to make asset transfer requests to specified public bodies for the transfer of an interest in land or buildings for a specified purpose. The act requires public bodies to assess requests against a list of criteria and to agree the request unless there are reasonable grounds for refusal. The Council has developed a set of enhanced procedures to provide a clear and transparent asset transfer request process to ensure compliance with the act. Web pages have also been developed to provide an interactive tool with advice and guidance, a list of the Council’s assets, contact details, the relevant forms and documents required to make a request, an “expression of interest form” (to facilitate
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early informal discussions between organisations and officers). A single point of contact for enquiries is also provided. 5.0 ASSET ACQUISITIONS POLICY STATEMENT The Strategic Asset Management Board’s objective is to ensure that the necessary professional and technical services are in place to deliver the Council’s capital and revenue programmes of new build, refurbishment and maintenance works in respect of developing, consolidating and protecting property assets. The Board will ensure that the Property, Design, Estates, Major Projects Client Management and Asset Management Teams will provide the Council with construction, procurement, valuation and consultancy services including project management, project monitoring and budget management. On this basis the Board will be in a position to review and determine whether due process has revealed that acquisition is the only or most favourable option available. In the event that the acquisition of an asset is the optimum solution the Strategic Asset Management Board will ensure efficient procurement of assets and construction projects by:- • Reviewing the integrated and multi-disciplined approach within Commercial Services. • Requiring services to follow the methodical and efficient processes contained within the Council’s approved Capital Planning and Management Guide. • Overseeing and reviewing the Business Case Development Process. o Undertaking a rigorous options appraisal process, including consideration of procurement options available through the Council’s membership of the Northern Territory hub Co and other frameworks. o Requiring the demonstration of comprehensive value for money approach. • Participating and leading, where appropriate, post project reviews. 6.0 FLEET ASSET POLICY STATEMENT The Council operates a wide range of fleet and plant to support the delivery of services. The Strategic Asset Management Board requires the services to provide an efficient and effective Fleet management and vehicle maintenance service. Fleet Management ensure that services have:- • Appropriate vehicles in place to carry out their responsibilities and duties. • Vehicles which are maintained to DVSA (Driver and Vehicle Standards Agency) standard. • Appropriate data available to measure performance and use of fleet and plant and to enable targets to be established. • Proportionate information to enable optimum use to be made of the fleet. • An appropriate training programme in place to support relevant staff and operators. • Robust business cases developed to underpin vehicle retention and best value procurement solutions. • Plans in place where appropriate to develop a “Green Fleet” policy, including
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infrastructure for public charging. • Plans are developed to manage a single council fleet with vehicle brokerage to ensure best value through vehicle utilisation and whole life costing. 7.0 INFRASTRUCTURE ASSET POLICY STATEMENT The infrastructure portfolio is a complicated collection of diverse asset groups such as roads, bridges, piers, airports, amenity (e.g. cemeteries, memorials and parks), street lighting, landfill sites and flood prevention schemes. The overarching aim of the Strategic Asset Management Board is to ensure that the service with responsibility for these asset groups strives for a good quality, well maintained and sustainable infrastructure network that is not only safe but also contributes to the needs of the community together with the everyday requirements of the businesses operating within Argyll and Bute. The Annual Status and Options Report has been developed for the road, lighting and bridge/structures assets. This document includes deterioration modelling and investment scenarios that model likely future conditions. The aim of the Strategic Asset Management Board is to make sure that:- • The infrastructure assets perform well in terms of suitability and condition. • Appropriate asset management information is gathered, maintained and used to underpin decision making. • Infrastructure meets the needs of users’ requirements and compliance with relevant legislation and regulations is achieved. • Data continues to be gathered and held on appropriate systems. • Benchmarking activities continue to inform business improvement actions. • All of the above within the confines of the available budgets. • All assets maximise income generation through the charging regime, where applicable, and that all fees are collected efficiently and expeditiously 8.0 ICT ASSET POLICY STATEMENT It is the aim of the Strategic Asset Management Board to ensure that the Council’s ICT assets are utilised in the most effective, efficient and economical manner in support of the Council’s plans, strategies and service delivery. The following approach will be undertaken to achieve this:- • Business, corporate and strategic requirements will be identified. • Procurement options will be tailored and developed to suit continuing needs, taking into account ongoing maintenance and sustainability issues throughout the whole life of the asset. • Regular reviews will be conducted to assess fitness for purpose and performance of the asset in question. • Full compliance with legislative and operational requirements during the withdrawal and subsequent disposal of ICT assets. • Comprehensive ICT and asset management information in support of all of the above will be collected, maintained, stored efficiently and be readily available.
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9.0 BUILDING ELEMENT RISK CATEGORY POLICY STATEMENT The risk category for building elements is used as part of the condition surveys undertaken by Property Services. The classification for fabric related elements and building services are as follows: Fabric – The condition of an element is based on a combination of factors including site visual appearance, manufacturer’s guidance on the lifecycle of the element and frequency of repeated maintenance based on historical knowledge and recorded data. In taking cognisance of all factors an assessment is made and a score (out of ten) is applied resulting in a condition percentage being allocated to the element. A score of less than 40% is classified as bad and categorised as a red risk. A score between 40% and 60% is classified as poor and categorised as an amber risk. A score between 60% and 85% is classified as satisfactory and categorised as a yellow risk. A score greater than 85% is classified as good and categorised as a green risk. In addition to overall condition and therefore the risk associated with elements, the Property Officers also identify "Hot Spots". These are generally small areas of an element whose condition is such that they do not significantly influence the overall score but require attention as their failure is likely to result in a significant disruption to the building functioning as intended. An example of this would be a bad condition flat roof over a boiler house where the failure of the roof element would potentially result in the heating failing. As a result, a capital programme is established that deals with high risk elements including “Hot Spots”. It is also prudent to include a Health and Safety budget to deal with any emergent issues throughout the financial year. Services - Mechanical & Electrical – this assessment is based on the elemental lifecycle of the specific mechanical or electrical element or sub element. The assessment is coupled with the support of statutory cyclical service reports and industry standard recommendations. In taking cognisance of all factors an assessment is made and a score (out of ten) is applied resulting in a condition percentage being allocated to the element. A score of less than 40% is classified as bad and categorised as a red risk. A score between 40% and 60% is classified as poor and categorised as an amber risk. A score between 60% and 85% is classified as satisfactory and categorised as a yellow risk. A score greater than 85% is classified as good and categorised as a green risk. In addition to the overall elemental condition and therefore the risk associated with elements, the Property Maintenance and Technical Officers also identify "Hot Spots". These are generally parts of an element where condition is such that they do not significantly influence the overall score but require attention as their failure is likely to result in a significant disruption to the building functioning as intended. As a result, a capital programme is established that deals with high risk elements including “Hot Spots”. It is also prudent to include a Health and Safety budget to deal with any emergent issues throughout the financial year.
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Appendix C – Service Asset Management Plans (SAMPS) / Group Asset Management Plans (GAMPS)
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STRATEGIC ASSET MANAGEMENT PLAN – ASSET GROUP SUMMARY NOTE: Highlighted text require a further update which can be provided in due course Asset Group Education 3rd Tier Manager Morag Brown / Wendy Brownlie Description of Asset Group and Condition Assessment ABC Learning Estates Strategy – Learning Environments in all schools should have a suitability grading A or B A=good; B=satisfactory; C=poor; D=bad Asset Group No and /or val ue. Condition Suitability A B C D A B C D Primary Schools (in use) 65 15 50 0 0 15 50 1 0 2-18 schools 4 2 2 0 0 1 2 1 0 Joint Campus 1 1 0 0 1 0 0 Secondary Schools 5 4 1 0 0 4 1 0 0 Complex addition needs schools 1 1 0 0 1 0 0 Adult learning centres, and a Youth Centre 2 1 1 0 1 1 0 Early Learning and Childcare Centres 2 0 0 0 0 School Houses 19 0 0 0 0 Investment (current and planned) Funding source Current Year Anticipated Investment (£m) 2022-23 (£m) 2023-24 2024-25 2025-26 Block Allocation Scottish Government 2.770 2.243 2.226 2.232 Block Allocation Carried Forward* Scottish Government 1.515 2.011 1140 Hours Scottish Government 1.036 0.019 CO2 Grant Scottish Government 0.116 Gaelic Grant Scottish Government 0.038 New Schools Scottish Government 0.615 0.570 Revenue Council 0.246 6.336 4.843 2.226 2.232 * Previous years commitments / carry forward due to combination of COVID19, labour / contractor shortages / holiday period has contributed to carry forward to future years. May be future carried forward to future years 2022-23 Overview Investment Strategy • The current strategy is to focus on high and medium Asset Sustainability priority projects - no funding is allocated to ‘service development’ or ‘strategic change projects’ • The aim is to maintain the current condition scores and improve suitability scores • £1.036M reserved for 1140 hours ELC expansion • £2.92M reserved for Asset Sustainability along with £1.515M carry forward was used to undertake major maintenance and keeping assets that we have wind, watertight & safe) ensuring schools remain in a minimum B category and avoid slippage into C • Within the block allocation a contingency budget was allocated to address emerging issues.
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• Projects identified via Condition + Suitability Assessment and Learning Estate Strategy Risks Asset sustainability • Significant backlog of maintenance work includes roof repairs, rewiring, damp repairs, heating upgrades and suitability works. Failure to invest in planned capital maintenance in a timeous manner will see a reduction in the scores and could result in component failure and building closure. • Diminishing level of investment coupled with increased costs (inflation and construction costs) mean many buildings and building elements are deteriorating at a rate which may not be able to be addressed and revenue (maintenance / reactive) expenditure. This is beginning to impact on the use of buildings, capacity of the school, flexibility to deliver the curriculum, support for pupils with complex needs and our inspection ratings. This will continue unless the number of properties are reduced or the capital and revenue budget is increased Summary of Planned 2023-24 investment Investment Strategy at funding levels indicated above • At current funding levels the focus will remain focused on high and medium Asset Sustainability priority projects - no funding is allocated to ‘service development’ or ‘strategic change projects’ • The aim is to maintain the current condition scores and improve suitability scores • £2.243M reserved for Asset Sustainability will be used to undertake major maintenance and keeping assets that we have wind, watertight & safe) ensuring schools remain in a minimum B category and avoid slippage into C • Within the block allocation a contingency budget was allocated to address emerging issues. Top three service/asset group priorities Service Priority Cost (£) Are costs indicative or calculated) Estimated funding shortfall Asset category (asset sustainability, service development, strategic change) 1. Progress LEIP Bid for new Campus on Mull ~£35m over 5 years (Council pay up front but 50% recouped over 25 years) Calculated Political and financial backing given at Council Sept 2022 Strategic Change 2.Deliver Learning Estate Strategy Aims – condition B or better plus outdoor enhancements Block Indicative NA Service Development 3. Asset Sustainability Block Indicative NA Asset Sustainability Match funding Opportunities/External Funding Achieved 2022-23 Opportunities 2023-24 Asset Sustainability Nil Climate Change - See below Gaelic Medium Service Development Climate Change - See below Climate Change - See below
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Strategic Change Bid for Learning Estate Investment Programme (LEIP) Funding Climate Change - See below Major opportunity to access Government flagship investment programme Learning Estate Investment Programme (LEIP) for new campus on Mull. In relation to climate change, opportunities for external funding will continue to be explored to allow delivery of projects similar to the Non-Domestic Energy Efficiency Framework (NDEEF). These opportunities could offer low carbon solutions throughout the wider Argyll and Bute area, which would not only assist the Council in its journey to Net Zero Carbon (NZC) but would also result in financial benefit through revenue savings or additional income. The delivery of these types of project which fall into a spend-to-save category will also consider Prudential Borrowing as a funding source i.e. where simple payback breaks even in relatively short timeframes. Links to relevant strategies Corporate Asset Management Strategy Learning Estates Strategy CO6: We have an infrastructure that supports sustainable growth
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STRATEGIC ASSET MANAGEMENT PLAN – ASSET GROUP SUMMARY Asset Group Shared Accommodation 3rd Tier Manager Craig Houston Description of Asset Group and Condition Assessment The condition/suitability information for the assets in the group has been extracted from the Council’s Property Management System (Concerto) and have been assessed using the Scottish Government Core Facts methodology. Asset Group No and/or value. Condition Suitability A B C D A B C D Shared Offices (Owned) 26 2 24 0 0 8 14 4 0 Shared Offices (Leased) 1 0 1 0 0 0 1 0 0 Investment (current and planned) Funding Funding source Current Year (£m) Anticipated Investment (£m) 2022-23 2023-24 2024-25 2025-26 Block Allocation in Year Allocation Scottish Government 0.561 0.431 0.428 0.429 Block Allocation carried forward Scottish Government 1.688 2.061 Place Demonstrator Fund Scottish Government 0.664 TOTAL 2.913 2.492 0.428 0.429 2022-23 Overview Investment Strategy • The investment strategy for Shared Office Accommodation in2022-23 was to focus on improving building elements throughout the asset group, whose condition was assessed as being either poor (C rating), bad (D rating) or is becoming life-expired, by delivering Asset Sustainability projects on a prioritised basis - no funding was allocated to ‘Service Development’ or ‘Strategic Change’ projects. • The aim was primarily to maintain buildings such that their condition is assessed as being satisfactory (B rating) or good (A rating). On a secondary basis the investment strategy looks to improve the suitability of buildings to function more efficiently and effectively as offices. • During 2022-23 the Our Modern Workspace programme commenced to rationalise the council’s office estate and support agile working. Existing budgets were reviewed for affected buildings and circa £660k was reallocated for use by the project. Match funding of £664k was obtained from the Place Demonstrator Fund (part of the Scottish Government’s Place Investment Fund) Risks 1. Significant backlog of maintenance work includes roof repairs, rewiring, heating upgrades and suitability works. Failure to invest in planned capital maintenance in a timeous manner will see a reduction in the condition scores and could result in component failure and building closure. 2. Diminishing level of investment coupled with increasing works costs (inflation, material/labour costs) mean many buildings and building elements are deteriorating at a rate which may mean that there improvement is not be able to be addressed. This will continue unless the capital allocation and/or revenue budget is increased 3. Under investment increases the risk of both reputational damage to the Council from poor appearance of buildings and third party insurance claims from building users (both staff and visitors) Summary of Planned 2023-24 investment Investment Strategy at funding levels indicated above • At proposed funding levels, the investment strategy for Shared Office Accommodation will continue to focus on improving building elements throughout the asset group whose condition is assessed as being poor, bad or is becoming life-expired by delivering Asset Sustainability projects on a prioritised basis. Funding including match funding is also allocated to Our Modern Workspace which is considered to be a ‘Strategic Change’ project of low cost. No funding was allocated to ‘Service Development’
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• The ongoing aim is primarily to maintain buildings such that there condition is assessed as being satisfactory (B rating) or good (A rating). On a secondary basis the strategy looks to improve the suitability of buildings to function more efficiently and effectively as offices. • The proposed block allocation will be used to deliver asset sustainability projects on a prioritised/value for money basis to upgrade: roofs; windows; office related car parks, electrical installations (re-wires), heating plant etc. to ensure ongoing compliance with health and safety legislation. • During 2023-24, the proposed funding will continue to be used, in conjunction with match funding, to deliver the Our Modern Workspace programme to rationalise the office estate and support the Council’s move to agile working. Top three service/asset group priorities Service Priority Cost (£) Are costs indicative or calculated Estimated funding shortfall Asset category (asset sustainability, service development, strategic change) 1. Conclude OMW Programme £1.2m indicative £0 Strategic Change 2. Property Upgrade of Municipal Buildings, Oban £260k indicative £0 Asset Sustainability 3. Re-Wire Kilmory aligned to OMW Programme £1.4m indicative £0 Asset Sustainability The Council has already made a significant reduction to its carbon footprint and is arranging to achieve net zero by 2045. This will require an appropriate carbon related audit of the Shared Accommodation properties, to allow a Strategy to be developed that results in the production of an Action Plan. Following on from that the Council will need to set aside funding to allow projects, from the Action Plan, to be delivered. The extent of the funding requirements is currently unknown. Match funding Opportunities/External Funding Achieved 2022-23 Opportunities 2023-24 Asset Sustainability Nil No external/match funded opportunities Service Development No Service Development projects No Service Development projects planned Strategic Change No Strategic Change projects Climate Change - See below In relation to climate change, opportunities for external funding will continue to be explored to allow delivery of projects similar to the Non-Domestic Energy Efficiency Framework (NDEEF). These opportunities could offer low carbon solutions throughout the wider Argyll and Bute area, which would not only assist the Council in its journey to Net Zero Carbon (NZC) but would also result in financial benefit through revenue savings or additional income. The delivery of these types of project which fall into a spend-to-save category will also consider Prudential Borrowing as a funding source i.e. where simple payback breaks even in relatively short timeframes. Links to relevant strategies Corporate Asset Management Strategy Decarbonisation Plan 2021 CO6: We have an infrastructure that supports sustainable growth
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STRATEGIC ASSET MANAGEMENT PLAN – ASSET GROUP SUMMARY Asset Group HSCP 3rd Tier Manager James Gow Description of Asset Group and Condition Assessment In addition to the above, an independent report on the condition and suitability of the 6 care homes was commissioned by the HSCP which identified a large number of backlog maintenance issues. A project group has been established to prioritise remedial works within the resources available and taking into account that it is likely that some of the estate will not be operational in the longer term. Health & Safety risks have also been identified in respect of sprinkler systems and emergency power generators. Given the review and delivery of the new care home replacement project (which is at early stages) some of these health and safety or priority works may be required to maintain facilities in safe and operational condition. The HSCP operates services from 31 Council owned properties, many of which have significant backlog maintenance and health safety related maintenance and improvement requirements. A project is on-going to purchase the Kintyre Care Home (Campbeltown) which will expand the portfolio in 2023. A review of customer needs and future demographic demands is underway which will inform a routemap for new CareHomes and supported living throughout our region. This will inform future investment in our estate. Example 1 Asset Group No. Condition Suitability A B C D A B C D Elderly Persons Homes 6 6 5 1 Children’s Homes 5 3 2 3 2 Hostels 3 3 3 Resource Centres 3 3 1 1 1 Offices 8 3 5 1 6 1 Other 6 6 2 3 1 Investment (current and planned) Funding Funding source Current Year Anticipated Investment (£m) 2022-23 (£m) 2023-24 2024-25 2025-26 Block Allocation Scottish Government 0.550 0.442 0.428 0.429 Block Allocation Carried Forward Scottish Government 0.078 1.478 0.628 1.920 0.428 0.429 2022-23 Overview Investment Strategy Backlog maintenance and suitability requirements are being prioritised within the budget available which is not sufficient to bring all of the properties operated by the HSCP up to a good standard. Investment is being targeted at essential maintenance, weather proofing and health and safety related priorities. The care home estate in particular requires internal redecoration. The work plan also takes into account priorities highlighted by the care inspectorate. It is anticipated that a strategic transformational project to consider new care models and care home replacement will be taken forward in 2022/23 and 2023/24. The first phase will be business case development and will be progressed in partnership between the HSCP and A&B Council. The HSCP has also recognised that it does not have sufficient management capacity at present and is in the process of appointing a new senior manager with Estates and Facilities management expertise. Risks 1. Reputational damage as living conditions for residents is not always of a high standard or reflective of fees charged 2. Poor quality property contributing to difficulties in staff recruitment 3. Health and safety risks have been identified
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Mostly these relate to the care home Estate. Addressing these is being quantified at present. There is a requirement to address issues in care homes which are unlikely to be in use in the longer term and further consideration of this balance between short term essential maintenance and longer term transformation is required. Summary of Planned 2023-24 investment Total investment available will contribute to: Addressing severe backlog maintenance issues within the Care Home Estate Address Fire Safety priorities arising from recent review Minor redecoration and improvement of Children’s Home Estate The works will include: essential roof/partial roof replacement and upgrades to manage water ingress; works to address deficiencies with building services (e.g. re-wires/boiler plant upgrades); works to assist with compliance with current care home standards and safe access/egress (e.g. lift upgrade). As a result of the investment, the condition of individual elements will improve but the impact on the overall condition of the assets is anticipated to remain static, or decline, given that the condition of other building elements is deteriorating. An independent detailed review of the care home estate has been completed and identified a significant investment need which far exceeds available resources. Top three service/asset group priorities Service Priority Cost (£) Are costs indicative or calculated) Estimated funding shortfall Asset category (asset sustainability, service development, strategic change) 1. Care Home refurbishments and Health & Safety improvements (sprinklers, back up generators etc) 3.7m plus fees Indicative per Hypostyle report 2.2m Asset sustainability 2.Maintenance of Children’s Homes 100k Indicative - Asset Sustainability 3. Strategic Business Case 100k 2023/24 Indicative Transformation Match funding Opportunities/External Funding Achieved 2022-23 Opportunities 2023-24 Asset Sustainability Pre-Capital support funding from Scottish Government Service Development £50k from HSCP resources to fund Hypostyle review of Care Homes. Strategic Change £40k invested in staffing to support older adult review work. £340k allocated by the HSCP to fund direct cost to progress the purchase of KCC during 2022/23 £40k approx. support from Scottish Government / Shelter applied for to support key worker accommodation project. Will be funded by the HSCP and Scottish Government and supported by A&B Council. HSCP match funding will be circa £40k over 2 years.
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Joint project to develop a business case for transforming older adult care services to be developed with A&B Council Links to relevant strategies Older Adults / Care Home and Housing Strategy work underway HSCP Strategic Workforce Plan
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STRATEGIC ASSET MANAGEMENT PLAN – ASSET GROUP SUMMARY Asset Group liveArgyll 3rd Tier Manager Marius Huysamer Description of Asset Group and Condition Assessment Overall condition/suitability category More than 85% A: Compliant (Good) Between 60% and <85% B: Requires Improvement (Satisfactory) Between 40% and <60% C: Considerable Improvement Required (Poor) Less than 40% D: Not Compliant (Bad) Building condition and suitability is measured in accordance with the Local Government Benchmarking Framework (LGBF). The condition rating of buildings is measured through an assessment of the main elements of the building (roof, walls, windows, doors, services etc.) via a weighted scoring matrix. Suitability is measured in a similar manner but instead of building elements, assesses themes including: location; accessibility; building facilities; the working environment; and ICT infrastructure etc. These assessment methodologies have recently changed and in moving forward will require more input/assessment for each property. All information is recorded within the Council’s property management system, Concerto, and LGBF returns are made on an annual basis. Asset Group No. Condition Suitability A B C D A B C D Community Centres 4 0 2 2 0 0 3 1 0 Leisure Centres 4 1 3 0 0 0 3 1 0 Halls 5 1 4 0 0 1 3 1 0 Libraries 11 4 7 0 0 2 7 2 0 Museums 1 0 0 0 0 0 1 0 0 Archives 1 0 1 0 0 0 1 0 0 Sandbank HQ 1 0 1 0 0 0 1 0 0 Sport Centre 1 1 0 0 0 0 1 0 0 Campbeltown Pavilion 1 1 0 0 0 0 1 0 0 Investment (current and planned) Funding Funding source Current Year Anticipated Investment (£m) 2022-23 (£m) 2023-24 2024-25 2025-26 Block allocation A&B Council 0.561 0.431 0.428 0.429 Block allocation Carried forward -0.001 *0.675 Totals 0.560 1.106 0.428 0.429 *Previous years’ commitments/carry forward due to a combination of COVID19, contractor/labour shortages and Brexit, has contributed to carry forward to future years. 2022-23 Overview Investment Strategy Asset Sustainability Property condition and suitability assessments are reviewed annually along with input from Property Officers on burdensome maintenance issues to inform elements of buildings that need attention/investment. Business Development The asset group managed by liveArgyll is ageing and requires more capital investment to ensure it remains in an operable state. Year-on-year the Capital Investment is becoming less which in turns places greater strain on an already insufficient central repairs budgets. Underinvestment of Capital funds will lead to facilities that will further deteriorate in condition and suitability and inevitably reach a stage where they are deemed not fit for purpose.
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Failure to maintain assets and ensure they are fit for purpose will adversely impact on liveArgyll’s ability to deliver agreed service specification requirements and fulfil charitable objectives. Strategic Change From a business strategy perspective the failure or long term unavailability of an asset, particularly a leisure centre or venue may have a significant impact the Company’s ability to generate income, thus reducing the likelihood of the Company achieving a primary objective of becoming less reliant on management fee funding. There is great potential to increase recurring income streams and generate new streams however amongst other things, this requires the Asset base to be fit for purpose and of a suitable standard and quality which ensure customers choose to use and pay for services. The council is contractually bound through the licence agreement with liveArgyll Leisure Trust to invest in and maintain assets. Risks Risks are generic to buildings of age and character in this sector but can include:- 1. The block funding allocation is insufficient to address identified work (particularly in context of current rising prices). 2. Planning/Building Control Issues. 3. Technical Challenges as further work is done to detail the necessary improvements at each location. 4. Known presence of asbestos in certain buildings Summary of Planned 2023-24 investment Investment Strategy at funding levels indicated above Asset Sustainability All proposed work is to sustain the current asset portfolio occupied and managed by liveArgyll Leisure Trust. Work is required to maintain the facilities in a wind and water tight condition and to ensure compliance to legislative and regulatory requirements. Significant project slippage have occurred over the past two year so projects have been carried over to future years. Work will include, roof refurbishment, boiler replacement, re-wire of aging buildings, window replacement, re-tiling of swimming pool, remedial work to stem water ingress, remedial work to DHW systems and pool plant, refurbishment of health suites, replacement of a heating system and replacing a spa pool. Strategic change Further investment will be required to assist with the council’s Asset Rationalisation programme. Works identified will address issues under the Equalities Act 2010 and Health and Safety regulations. Top three service/asset group priorities Service Priority Cost (£m) Are costs indicative or calculated) Estimated funding shortfall Asset category (asset sustainability, service development, strategic change) Implementation and planning of a range of facility development projects aimed at increasing capacity, improving services and offering, as well as adapting to changing customer behaviour. 0.35 Indicative 0.35 Service Development In support of liveArgyll’s business contingency planning, liveArgyll need to replace and refurbish 0.87 Indicative 0.87 Asset sustainability
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assets that are deemed not fit for purpose. Launching our new Leisure Management System and customer booking app. 0.2 Indicative 0.2 Service Development/Strategic change Match funding Opportunities/External Funding Achieved 2022-23 Opportunities 2023-24 Asset Sustainability Although not directly linked to the council’s asset management plan, LiveArgyll was successful to secure match funding from East Kintyre Windfarm Trust. These funds will be used to procure new gym equipment for the Aqualibrium. A match fund application will be made to the Loch Fyne Windfarms via Foundation Scotland. This self-fund project is for the repurposing of the squash court at MASC Service Development liveArgyll continues to explore external / match funding opportunities. Discussions are on-going in respect of specific projects. Strategic Change The Council has agreed to look at any licence revisions required to secure funding on a case by case basis Links to relevant strategies
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STRATEGIC ASSET MANAGEMENT PLAN – ASSET GROUP SUMMARY Asset Group ICT 3rd Tier Manager Gerry Wilson Description of Asset Group and Condition Assessment Asset Group No and/or value. Condition Suitability A B C D A B C D Server Infrastructure Overall 1,850k 182k 8k 1,308k 352k 182k 8k 1,308k 352k PC, Laptops and Tablet Devices - Corporate £829k 207k 174k 253k 195k 207k 174k 253k 195k PC, Laptops and Tablet Devices - Education 2,150k 858k 442k 515k 335k 858k 442k 515k 335k Communicatio ns Equipment incl network devices and Broadband 2,157k 1,740k 55k 106k 256k 1,740k 55k 106k 256k Supported Business Software Applications(N umber) 80 59 11 8 2 59 12 9 0 Investment (current and planned) Funding Funding source Current Year Anticipated Investment (£m) 2022-23 (£m) 2023-24 2024-25 2025-26 Block Allocation Scottish Government 1.011 0.777 0.771 0.768 Block Allocation Carried Forward Scottish Government 0.232 0.481 External Income NHS 0.046 Total 1.289 1.258 0.771 0.768 *Previous years commitments/ carry forward due to combination of covid, contractor/labour shortages and Brexit, has contributed to any carry forward to future years 2022-23 Overview Investment Strategy Asset Sustainability – All of the Council’s ICT assets are replaced on a rolling cycle. PCs and Laptops are replaced on a 4 year (corporate) or 5 year (education) cycle. Major infrastructure assets such as servers, firewalls, and network routers and switches are replaced every 6 years. This is an industry standard approach to the maintenance of critical infrastructure designed to minimise the risk of service failure which would otherwise result in poor system reliability, the unavailability of major systems, and a consequential failure to deliver front line services. The expected lifespan of ICT infrastructure assets is determined by manufacturer support availability, age, or fitness for purpose. The ICT Service normally apportions part of the ICT Block Allocation each year to cover the annual PC Replacement and network infrastructure asset costs. Every six years we also have to prioritise our spend on our two data centres (the heart of the ICT environment) which normally means we have to allocate the majority or all of the block allocation for that year to servers and network equipment. The data centres continue to host several hundred council applications as
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the true cost of migrating to the cloud remains unaffordable for many systems. The data centres are due for major upgrades from 23/24 onwards. We face enormous inflationary pressures on the ICT Capital Programme as the post pandemic global supply crisis impacts on technology equipment pricing. 2023/24 and 2024/25 are two years where the need to prioritise investment in critical server and network assets for the data centres means there would be little or no funding available for PC replacement or other service development projects without additional drawdowns from the Capital Contract Increases Earmarking fund to cover some of the inflationary and exceptional cost increases. Our strategy is therefore based on the proposed drawdowns from that fund being approved and allocated to the affected asset replacement projects before the block allocation is then distributed across the remaining sustainability projects – IT Network and Server infrastructure and PC Replacement. Service Development and Strategic Change - The ICT Development framework establishes a consistent and transparent method for the evaluation of ICT business case based proposals being presented to the Strategic Asset Management Board. The framework allows competing demands for Council resources to be compared like for like with the purpose of establishing an ICT Development Plan that includes a mix of small and significant ICT developments that are both affordable and deliverable. The ICT Development Plan determines the ICT Asset service development priorities and the levels of funding required to meet them. This year two business cases have been approved at the Asset Management Board for the replacement of the Civica Document Management and Workflow System, and of the Revenues and Benefits System. Both have been included in the capital work programme for 2023/24. Risks 1. All ICT Assets - Failure of key infrastructure supporting technology components that are critical for day to day service delivery across all services of the Council. The severity and the reach of the impact will very much depend on which components fail and consequences for individual services but could also be cross Council affecting. As technology components age and move out of support, the Council risks non- compliance with PSN, Cybersecurity and PCI DSS obligations. 2. PCs and laptops are currently replaced on a 4 year Corporate and 5 year Education cycle with no warranty or maintenance on PCs after the first 3 years. This has consequences for the reliability of desktop equipment. On warranty expiry, the Council is required to effectively self-insure against failure. 3. Service Development - In addition to impacting our ability to comply with our security obligations, the risk of underinvestment for key business application systems will result in missed opportunities for greater efficiencies and service improvements across council services. Summary of Planned 2023-24 investment Investment Strategy at funding levels indicated above Server Sustainability Replacement of Server equipment in Kilmory and GWITC so that our infrastructure is robust, supported and fit for purpose for at least 6 years. This includes replacing our critical firewalls at Kilmory and GWITC datacentres, as well as the replacement of end of life Windows Security Update Servers at every school and main offices. Further major investment on the data centre servers will be required in 2024/25 and then the servers will require minimum investment over the following 5 years. The funding requirement for servers has been met from a combination of the block allocation and drawdown from the Capital Contract Increases Earmarking fund. PC Replacement • Replacement of Corporate PCs due to become red risk assets (> 4 years old) in 2023/24, with 3 years of warranty. • Replacement of Education PCs that either are already red risk assets or due to become red risk assets (> 5 years old) in 2023/24, with 3 years of warranty. Note – the PC replacement programme is based on a continuous cycle of investment. One quarter of all corporate PCs were expected to be replaced each year alongside one fifth of Education PCs each year. The funding requirement for PCs has been met from the ICT block allocation.
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IT Network Replacement of IT Network Infrastructure technologies which are either due to become or are already end of life assets in 2022/23, resulting in fitness for purpose for potentially 6 years. This includes replacing end of life network switches at our Kilmory and GWITC datacentres, as well as replacement of network routers at our schools. The funding requirement for IT network equipment for 2023/24 has been met from a combination of the block allocation and drawdown from the Capital Contract Increases Earmarking fund. Key Business Applications Replacement of Civica Document Management and Workflow System, and replacement of Revenues and Benefits System. This funding requirement has been partially met from the ICT Block Allocation, but a shortfall remains of £137k Top three service / asset group The ICT Management team follows an industry best practice approach for the replacement of key technology assets based around the age and condition of each asset type. This is required as part of our statutory membership of the PSN where we are obligated by the Cabinet Office to maintain our network of servers and devices at current supported levels. The PSN in turn allows us access to their private network to collaborate and share data with other public sector partners such as the National Registrars for Scotland, HMRC, and DWP in a safe, secure, and trusted manner. Our investment priorities are therefore based on sustaining our complex network of circuits, routers, servers, pcs, and applications and this is reflected in our three priorities for 2023/24. Funding from the block allocation, coupled with contributions from the Capital Contract Increases Earmarking fund will allow us to replace red risk critical IT network and server infrastructure assets (£608k) and red risk PCs and laptops (£531k) for 2023/24. It should be noted that a further and greater pressure will apply to both areas in 2024/25. Our block allocation will also contribute £173k towards the cost of the two big Service Development application replacements scheduled for 23/24 (Revenues and Benefits and EDMS) but a shortfall in funding remains of £137k. This is illustrated in the following table for 2023/24: Service Priority Cost Budget available Capital Contract Increases Earmarkings Are costs indicative or calculated) Estimated funding shortfall Asset category (asset sustainability, service development, strategic change) 1. IT Network and server infrastructure 608k 277k 331k (95k from 22/23 and 236k from 23/24) calculated 0 Asset Sustainability 2. PC replacement programme 531k 531k 0 calculated 0 Asset Sustainability 3. Business Application Systems (service dev) 310k 173k 0 estimated 137k Service Development
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Match funding Opportunities/External Funding Achieved 2022-23 Opportunities 2024-25(should this be 2023-24?) Asset Sustainability Service Development 49 Strategic Change Links to relevant strategies ICT and Digital Strategy 2021 -24
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STRATEGIC ASSET MANAGEMENT PLAN – ASSET GROUP SUMMARY Asset Group Road Infrastructure (Carriageways and Footways) 3rd tier Manager Hugh O’Neill (RIS Network and Standards Manager) Description of Asset Group and Condition Assessment Asset Group No and or/Value* CONDITION (percentages based on total asset value) Green/ Purple Yellow Amber Red Roads *See below comments £2.09Billio n 50.24% N/A 36% 13.76% Footways £78.3Milli on * * * * This can be further broken down to road classification as per below table: *Footway Asset condition surveys are not currently undertaken due to limited resources and cost implications. Generally footways are considered safe and fit for purpose with maintenance works undertaken in response to identified defects or public complaints as investment and resources permit. The below graph highlights the latest road condition survey results which show a marked improvement in condition from the last normal survey 54.4% to current 49.8%. This is directly attributed to the sustained investment from Council recognising the significance of our road network, which has allowed over 50% of our Network to be in the ‘Green’ condition for the first time over the last 8 years of reporting.
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Investment (current and planned) Funding Funding source Current Year Anticipated Investment (£m) 2022-23 (£m) 2023-24 2024-25 2025-26 Block Allocation Scottish Government 4.378 3.449 3.412 4.292 Block Allocation Carried Forward Scottish Government 0.959 0.754 Additional Council Allocation Scottish Government 3.023 0.130 Chord Budget Scottish Government 0.003 0.057 Electric Vehicle Charges Scottish Government 0.093 STTS Scottish Government 0.958 9.414 4.390 3.412 4.292 2022-23 Overview Investment Strategy Prioritisation of Asset Sustainability: Road condition is measured by the Scottish Road Maintenance Condition Survey (SRMCS) which assesses parameters such as surface texture and cracking, smoothness and rutting. This provides an indication of the residual life of the road structure. As previously highlighted, Footway Asset Condition Surveys are not currently undertaken due to limited resources and cost implications. Generally footways are considered safe and fit for purpose with
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maintenance works undertaken in response to identified defects or public complaints as investment and resources permit. CAPITAL RESURFACING INVESTMENT OPTIONS The below lists 4 options where direct comparison can be made with investment against a 20 year profile for road condition. OPTION 1— £3M An annual investment of £3m would lead to a substantial deterioration on overall RCI with 69% of our roads requiring attention after 20 years including 38% of roads considered in the red category, this would significantly increase risk to road users safety. The volume of reactive temporary repairs would steadily rise, year on year as would public liability claims. Customer satisfaction levels can be expected to steadily decrease. OPTION 2— £5M An annual investment of £5m would lead to a slower deterioration on overall RCI with 59% of our roads requiring attention after 20 years including 30% of roads considered as red category. This is almost double the latest result (16.34%) for red category roads. The volume of reactive temporary repairs would steadily rise, year on year as would public liability claims. Customer satisfaction levels can be expected to steadily decrease.
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OPTION 3 — £8M An annual investment of £8m would lead to steady state in overall RCI with 41% of our roads requiring attention after 20 years including 18% of roads considered as red category which is on par with current red condition (16.34%). The volume of reactive temporary repairs would likely remain similar to current levels over initial period and would be expected to remain similar over time as road condition remains constant. Public liability claims would also be expected to remain similar. Customer satisfaction levels would also remain in steady state. OPTION 4 — £11M An annual investment of £11m for the next 20 years should lead to a substantial improvement in overall RCI with only 27% of roads requiring attention including only 8% of roads in red category, half the current red condition (16.34%). This differs slightly from the projected value from the SCOTS Backlog and Steady State model, due to a different method of predicting future carriageway condition. This would potentially make Argyll and Bute council the leading Scottish authority in terms of RCI. A substantial reduction in reactive repairs and public liability claims can be expected. Demands on limited resources would be lessened and customer satisfaction levels will also be greatly improved through this investment. Prioritisation of Service Development: The annual Capital Reconstruction Programme aims to deliver investment on a range of surfacing projects targeted at improving network condition across Argyll. The bulk of investment (77%) is attributed to Surface Dressing (SD) and thin surfacing works to maximise network coverage. The aim being to seal and extend surface life with a SD treatment and tackle as much deteriorated surface as possible with thin surfacing works so as to help reduce demand for costly reactive treatment works
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Prioritisation of Strategic Change: The value of undertaking adequate preventative maintenance works cannot be over stated. It is the most vital and fundamental function required to extend infrastructure service life, strengthen network resilience and minimise demand for capital investment. To maintain a steady state road condition, investment of at least £8M is required annually. As has been demonstrated in the below table, over the last 10 years, where we have seen average investment of at least £8 Million on Roads Reconstruction, RIS have been able to improve our road condition which in turn improves visitor numbers/local businesses as well as supporting our communities daily commute. This year for the first time since we have been recording road conditions we have been able to improve our roads to have over 50% in the good condition category. This is purely down to investment and the support provided by members allowing RIS officers to manage the network effectively. To ensure we sustain this level of improvement over the next five years and do not regress in our road condition which is reported through Scottish Government, a minimum budget of £8 million per annum is required. To improve on this condition then further investment in excess of £8M is required. Risks 1. Increase in third party insurance claims. This would be due to an increase in pot holes and road defects as funding was not sufficient to treat roads properly. 2. Restricted traffic and the possibility of some roads having to be closed on safety grounds. Failure to maintain roads is a duty for Roads Authorities and a lack of funding will require prioritisation of routes which may well restrict vehicular sizes on certain roads to prevent further decline/damage. This would include consideration of weight, width and length limits on our roads as well as restricted speed limits and ultimately road closures if roads were to become unsafe due to damage. The practicality to deliver on road closures or restrictions also imposes a cost on the council funds to provide traffic management and Temporary Traffic Regulation Orders. 3. Detriment to business and tourism should the road network deteriorate to a point that its condition is not convenient for the travelling public. Year Capital & Revenue Survey year RCI 2013-14 £9,826,466 2013-15 55.6 2014-15 £8,896,996 2014-16 54.4 2015-16 £6,799,499 2015-17 55.3 2016-17 £5,821,104 2016-18 55.5 2017-18 £5,233,219 2017-19 54.4 2018-19 £11,502,343 2018-20 54.17 2019-20 £9,472,398 2019-21 N/A (covid) 2020-21 £8,426,346 2020-22 49.8 Average Spend £8,247,296 Average 54.2 Summary of Planned 2023-24 investment Investment Strategy at funding levels indicated above
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Asset Sustainability: Carry out a drastically reduced mix of surface dressing, edge strengthening, resurfacing works. The surfacing works will include proportionate drainage works. Works will be identified from condition surveys, collision data, and known development activity and reports from the public. Final programmes may be adjusted to take account of any winter deterioration. Service Development: £3.449M capital budget with the current level of revenue funding would not be sufficient to enable officers to keep the network from deteriorating, dependent on the severity of winter weather which could further deteriorate the network. Strategic Change: An annual investment of just over £3m would lead to a substantial deterioration on overall RCI with 69% of our roads requiring attention after 20 years including 38% of roads considered in the red category, this would significantly increase risk to road users safety. The volume of reactive temporary repairs would steadily rise, year on year as would public liability claims. Customer satisfaction levels can be expected to steadily decrease Top three service/asset group priorities Service Priority Cost (£) Are costs indicative or calculate d) Estimated funding shortfall Asset category (asset sustainability, service development, strategic change) 1. Road Maintenance Minimum of £8M Calculate d as per agreed methods £4.5M to £5M Asset Sustainability 2. Footway Maintenance £950k Estimatio n of condition calculated as three percent of gross replacem ent cost of the asset. £450k Asset Sustainability 3. Street Furniture £3M Estimated £3M Asset Sustainability No funding is allocated to this asset as such it is incorporated in the Road Maintenance Budget. Match funding Opportunities/External Funding Achieved 2022-23 Opportunities 2023-24
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Asset Sustainability • STTS £1.025M • Active Travel Funding £500k for footways • STTS • Coastal Community Funding • RTIF Service Development • Coastal Community Funding of £400k for Tobermory Car Park (now being asked to be moved to Tobermory Cemetery) • Levelling Up Funding – potential rebid Strategic Change Links to relevant strategies Local priorities based on output from machine surveys, SCRIM, STATS 19, engineering judgement, service demands. Roads assessed as amber and those with the greatest impact on the economy. Maintaining Scotland’s Roads – Audit Scotland, February 2011 “Transport Scotland and Councils should review their road maintenance strategies and plans to confirm that adequate prioritisation is given to those routes which are likely to contribute greatest to economic growth and improved quality of life.” The road infrastructure is also covered by the Roads Asset Management Plan (RAMP) which has been carried out as part of a national project steered by SCOTS. This means that the roads asset infrastructure’s condition can be compared not only across Argyll and Bute, but across the whole of Scotland.
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STRATEGIC ASSET MANAGEMENT PLAN – ASSET GROUP SUMMARY NOTE: Some sections require more information to be inputted which will be provided in due course Asset Group Street lighting 3rd Tier Manager Tom Murphy Description of Asset Group and Condition Assessment We do not have an accurate conditions index for Street Lights and illuminated signs, however they were inspected in our LED replacement programme which is still ongoing. Service Standards: To ensure that our asset is maintained properly, electrical certification / testing is required every 6 years with column condition and ranking carried out every 4 years as part of scheduled planned maintenance. This has not been done properly since 2015. Gross street lighting stock replacement cost (new replacement) from the current Asset Register is £47m We have 13,616 Lighting Columns (9920 Galvanised Steel, 2266 Un-galvanised Steel, 1278 Aluminium Columns, 42 Concrete Columns, 110 Lights on Wooden Poles) It is estimated that 35-45% of these columns have exceeded their expected service life of 25-30 years, with some in the region of 70 years. Asset Group No and/or value. Condition Suitability A B C D A B C D Street Lights (Luminaires) 14,642 Illuminated Signs 434 Traffic Lights/signals 27 Investment (current and planned) Funding Funding source Current Year Anticipated Investment (£m) 2022-23 (£m) 2023-24 2024-25 2025-26 Block Allocation Scottish Government 0.250 0.150 0.150 Block Allocation Carried Forward Scottish Government -0.110 0.300 Additional Council Allocation Council 0.300 Prudential Borrowing Council 0.791 0.931 0.750 0.150 0.000 2022-23 Overview Investment Strategy £740k budget is made up of £250k annual allocation + £190k unspent from 2021/22 due to COVID and £300k from the Feb 2022 Budget Motion: Allocates £300k to deliver a programme of street lighting column replacement and improvement across Argyll and Bute, prioritised based on condition, with funding for at least 260 lighting columns. The current financial years funding will allow the LED upgrade replacement programme to be finalised. This will use the remaining prudential borrowing of £3.9m to replace sox and son fittings with LED energy efficient cost saving luminaires to be complete prior to April 2023. Risks 1. Failure to properly invest in lighting will see an increase in third party insurance claims 2. Health and safety consideration if columns are old and rusted with the potential to fall down in adverse weather.
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3. Detriment to business and tourism should the network deteriorate to a point that its condition is not convenient or safe for the travelling public / pedestrians and motorists. Summary of Planned 2023-24 investment Investment Strategy at funding levels indicated above With limited investment of £150k. We will only be able to react to a very minor portion of street lighting issues. We prioritise funding through a study of planned maintenance findings, analysis of fault records and reliability, Light level meter checks for inadequacies, column condition scores – All will be considered to compile and prioritise programs of work. Top three service/asset group priorities Service Priority Cost (£) Are costs indicative or calculated) Estimated funding shortfall Asset category (asset sustainability, service development, strategic change) 1. Completion of LED installation programme LED Business Case Calculated 0 2. Column replacement and cabling works £700k Calculated 0 3. Continue asset sustainability works tbc Indicative – value tbc tbc Match funding Opportunities/External Funding Achieved 2022-23 Opportunities 2023-24 Asset Sustainability Underground cablng to be repkaced in key locations to reduce ongoing outages Service Development Completion of LED rollout anticipated Roll out of column replacement Strategic Change Links to relevant strategies
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STRATEGIC ASSET MANAGEMENT PLAN – ASSET GROUP SUMMARY NOTE: Some sections require more information to be inputted which will be provided in due course Asset Group Amenity 3rd Tier Manager Hugh O’Neill and Tom Murphy with input from Mark Calder re toilets. Description of Asset Group and Condition Assessment Argyll and Bute Council has 131 Cemeteries with 66 Closed for the sale of lairs. They are however still being opened for interments as well as the Council being responsible for the upkeep of the Cemetery. They have been listed as Suitability D in the above Table. 65 Cemeteries are open for the sale of lairs, however they have been broken down in the condition table to whether they have 0-5 years capacity Condition D/5-10 years Condition C/10-20 years Condition B and 20+ years Condition A. Argyll and Bute Council have 30 Play parks which are listed as A in urgent need of repair, B in need of repair, C minor repairs needed and D in good order. - Sports Fields - We have 26 Sport Fields which cater for a mix of football/shinty and rugby. We have listed them as A=Good condition/B=Reasonable Condition/C=Poor Condition. Most require drainage work as well as work to improve the playing surfaces of the pitches and update/replace fencing. - Stadiums – We have 3 stadiums which are listed as 2 in good condition and 1 in poor condition - Toilets – 16 high footfall public conveniences will shortly have charging infrastructure installed through a £300,000 scheme [£100,000 Council capital; £200,000 Coastal Communities]. Income received can be used to meet previously unachieved income targets. Asset Group No and/or value. Condition Suitability A B C D A B C D Cemetery 131 44 8 8 5 0 0 0 66 Parks and Open Spaces 30 Play Parks 6 4 18 2 Parks and Open Spaces Sports Fields 5 6 14 0 Parks and Open Spaces Stadium 3 0 1 0 Toilet facilities 0 0 0 Investment (current and planned) Funding Funding source Current Year Anticipated Investment (£m) 2022-23 (£m) 2023-24 2024-25 2025-26 Block Allocation Scottish Government 0.000 0.100 0.100 0.000 Block Allocation Carried Forward Scottish Government 0.816 Capital Grant Scottish Government 0.000 0.312 0.235 0.391 Council Additional Allocation Council 0.100 0.916 0.412 0.335 0.391 2022-23 Overview Investment Strategy Cemeteries Officers are reviewing the capacity of cemeteries, those with less than 5 years capacity are prioritised in line with budget availability. Cemeteries are either extended or when this is not possible then nearby land is identified where possible within Council ownership and if not then land owners are approached to purchase land. To support
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cemeteries with less than 5-10 years capacity, officers have suggested a change in policy in regards to lair availability, whereby the pre-sale of lairs is stopped when capacity is less than 5-10 years. This has still to be presented to the relevant committee for a change in policy. Play Parks Play Parks have been reviewed by trained officers to identify defective equipment and surfaces. Previously no funding has been available and defective equipment has either been removed or fenced off. On occasion funding sources have been identified to locally refurbish equipment and play parks such as Atlantis in Oban. The details of the review have now been collated to identify an overview document highlighting the priority play parks in need of refurbishment with the Scottish Govt Funding. Play park funding will be covered by the Scottish Govt budget for another three years. There are no further plans to develop play parks further than this. Pitches Most pitches are in need of drainage work as well as work to improve the playing surfaces of the pitches and update/replace fencing. Several pitches have previously had drainage works carried out and now at least 6 need urgent drainage works to enable sports to be played on the pitches. In regards to Rothesay Stadium, this requires extensive drainage works as well as building works to ensure health and safety is not compromised. Work is also required to continue to improve the mobile stand. Public Conveniences Various public conveniences are undergoing turnstile improvements and general upgrades. At the P&R Committee meeting on 13/10/22 additional funding was approved subject to SG confirming the anticipated level of Coastal Communities funding being received. R&IS will work with property colleagues with a view to putting in place an asset management system for Public Conveniences which helps to identify long term programmes of works removing the more reactive approach to none statutory property maintenance for the R&IS property estate. Risks 1. Failure to provide sufficient funding for Cemetery expansion and development will Risk the Council as a Burial Authority being in breach of Legislation in not being able to bury the dead. Further this will damage the council’s reputation should mere cemeteries close and cause negative feedback from deceased relatives etc. 2. Sports pitches would become unfit for purpose which would be detrimental to the council’s objective of a healthy community. This would also see clubs using all weather facilities at the council’s High schools, this has recently been raised as an issue with clubs being unable to book the pitches due to over subscription. Officers have also experienced sports clubs taking their bookings to neighbouring authorities. 3. Breach of Health and Safety legislation if toilets are not maintained in a good condition Summary of Planned 2023-24 investment Investment Strategy at funding levels indicated above 1. Challenges in being able to carry out the statutory duty of where people want to be buried without investment and cemetery extensions/new sites. 2. Lack of sports areas will cause issues for youths and children as well as fail to deliver on our Improvement Plan Outcomes 4 and 5. Plus now evidence of sports clubs moving outwith the area to train and play sports. 3. Reputational damage, less likely to attract new families into our area and sports clubs having to use facilities in neighbouring Councils. 4. Underinvestment may lead to the closure of our facilities which cause reputational damage. 5. Currently ongoing partnership discussions with sports clubs in Oban around attracting local investment to improve Mossfield Stadium and other sports fields in the Oban and Lorn area. Top three service/asset group priorities
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Service Priority Cost (£) Are costs indicative or calculated) Estimated funding shortfall Asset category (asset sustainability, service development, strategic change) 1. Burials/Cemetery Expansion and or Development £310k Indicative £310k Asset sustainability 2. Play Parks/Sports areas £938k Indicative Asset Sustainability 3. Toilets – turnstiles £300k Calculated Asset Sustainability The highest priority for R&IS is Cemeteries at this time, the below table highlights 5 locations where there is less than 5 years available capacity for lair space as well as high level indicative costs for each location amounting to £310k. Experience of previous expansion and land purchase timescales highlights that at least 5 years are required in some cases to identify, source, purchase and prepare the land for use as a cemetery. Match funding Opportunities/External Funding Achieved 2022-23 Opportunities 2023-24 Asset Sustainability £157k from Scottish Govt Play Park Fund £235k from Scottish Govt Play Park Fund Service Development Currently ongoing partnership discussions with sports clubs in Oban around attracting local investment to improve Mossfield Stadium and other sports fields in the Oban and Lorn area. Strategic Change Links to relevant strategies: Play Park and Cemeteries: December EDI (Items 5 and 7).
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STRATEGIC ASSET MANAGEMENT PLAN – ASSET GROUP SUMMARY Asset Group Depots Manager Tom Murphy/John Blake Description of Asset Group and Condition Assessment In terms of a description of the asset group, apart from the two new single depots in Helensburgh and Oban the remainder are increasingly unsuitable. A table with comments and future uses in terms of the proposed programme should capital funding be available is provided below. There is an ongoing review of the proposed programme and how it is resourced and funded: Area Site Retain and Repurpos e Dispose Retain Comments Mid Argyll Bishopton Rd x Compelling operational need/risk due to condition of fleet workshop Moneydrain x Kilmory x Site clearance and enablement progressing. Two phase project – full design; construct Fleet workshop Ph1; remainder Ph2 Islay Bowmore Roads Depot x Housing Bowmore Amenity Depot x Housing Springbank salt yard x Leased from Luss Estates Dunoon Hamilton St x Suitable for single depot site, limited groundworks required unlike Kilmory and JQ Victoria Rd X Punitive lease arrangement and ongoing maintenance costs are v high Broxwood X Storage area in Sandbank Millhouse X Important for winter service Kintyre Roading Garage x The two Roading sites are nearby, with the Renewi site inbetween. The former KRL building is to the rear of the Garage. There could be possibilities for a single depot on or around parts of these sites Roading amenity depot x As above MACC roads depot x Leased
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Oban Jackson Quarry x This is complete Mill Park x Appin x Dalmally x Important for winter gritting – adjacent to A819 which is the most turned out route in AB Investment (current and planned) Funding Funding source Current Year Anticipated Investment (£m) 2022-23 (£m) 2023-24 2024-25 2025-26 External Income Revenue 0.024 0.000 0.000 0.000 0.024 0.000 0.000 0.000 2021-22 and 2022-23 Overview Investment Strategy Asset sustainability in terms of general day to day maintenance is undertaken by Property colleagues through the Central Repairs Account within revenue. There is no identified funding for investment in service development/strategic change projects, however; were funding to be identified we would look to develop a programme considering such factors as operational need, asset condition, ongoing maintenance cost avoidance and commercial opportunities for sites to be vacated. Ultimately the programme should be driven by operational need as opposed to possible savings. A scheme in Lochgilphead would be the first priority due to the condition of the Bishopton Road fleet workshop; followed by Islay due to housing demand then Dunoon due to high lease and maintenance costs Risks Apart from the new depots in Oban and Helensburgh the condition of the remainder of the asset group is increasingly unsuitable. Capital investment is required both to provide fit for purpose facilities for the workforce as well as to reduce the over number of assets, releasing sites for other economic opportunities. Summary of Planned 2023-24 investment Investment Strategy at funding levels indicated above There is no identified capital funding. Top three service priorities (please list the top three service priorities and whether or not funding is currently available or potential sources of funding, as well as timelines. This provides Elected Members with an insight into what will or could be funded to maintain/improve service delivery. This section will help to inform thinking on future priorities, lobbying activity and external funding bids and to develop a pipeline of projects)
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Service Priority Cost (£) Are costs indicative or calculated) Estimated funding shortfall Asset category (asset sustainability, service development, strategic change) 1. Lochgilphead depot rationalisation £3million Indicative based on cost of Jackson’s Quarry depot Oban, completed 2021 £3million [note some of these costs could be offset by borrowing against income derived from vacated sites. At the last valuations this could raise c. £1million borrowed over 30yrs] Service development 2. Islay depot rationalisation £1million Indicative £1million Strategic change [enabling new housing opportunities] 3. Dunoon £1-2million Indicative £1-2million Service development Match funding Opportunities/External Funding Achieved 2022-23 Opportunities 2024-35 Asset Sustainability Capital receipts / revenue generated from surplus depots Service Development £68,000 for EV chargers at Jackson’s Quarry from Switched on Fleets Expected to be at least at 22/23 levels Strategic Change Links to relevant strategies
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STRATEGIC ASSET MANAGEMENT PLAN – ASSET GROUP SUMMARY Asset Group Parking 3rd Tier Manager Hugh O’Neill Description of Asset Group and Condition Assessment Argyll and Bute Council has 29 Pay and display car parks. We have no details in regards to suitability, therefore have gauged the asset on Condition alone as per above. There is no capital funding for car parks – car park maintenance budget money is funded from the generated revenue money raised from fees and charges. Initially funding bids were created for Tobermory car park which resulted in: • £375k from Rural Tourism Infrastructure Funding • £400k Coastal Community Funding. Argyll and Bute have 118 off street car parks ranging from formally laid out urban car parks to less formal more rural car parks. There is no fixed scoring mechanism for our car parks, although safety inspections are carried out to a standard similar to those carried out on the road network. Wardens and local roads inspectors report issues as and when necessary. We recently updated our car park inventory on our Asset Management System and facilitate regular condition inspections in all ABC car parks to ensure best value. Asset Group No. Condition Suitability A B C D A B C D Car Parks 118 42 53 21 1 N/A N/A N/A N/A Investment (current and planned) Funding Funding source Current Year Anticipated Investment (£m) 2022-23 (£m) 2023-24 2024-25 2025-26 Coastal Communities Fund Scottish Government 0.400 0.000 0.000 0.000 COVID funding Scottish Government 0.176 0.000 0.000 0.000 TOTAL 0.576 0.000 0.000 0.000 Tobermory has been experiencing traffic management issues with parking in and around the Ledaig area of Tobermory Mull. To alleviate this it was proposed that a car and coach park would be situated just outside of Tobermory next to the current cemetery which was nearing capacity. Currently parking is at a premium and local residents and businesses are being affected by inappropriate and at times dangerous parking in and around Ledaig. To facilitate economies of scale it was agreed to build an extension to the cemetery at the same time as the car park. The car park was being partly funded by a grant of £400k from the Coastal Community Fund. The funding was agreed for the 2021/22 period, however due to COVID this was delayed into financial year 2022/23. It has now also become apparent that the cost for the Cemetery Extension will be well in excess of what was envisaged. Two tender quotes of £896k and £760k were received for work to extend the Cemetery. Therefore the building of the car park has been held in abeyance and officers are looking to now vire the Coastal Community Funding Grant for the car park to fund Tobermory Cemetery. It is proposed that this will go to Members for approval in a report to P&R in February. 2022-23 Overview
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Investment Strategy £270k Revenue Funding for Improvements to lining, car park surfaces and associated maintenance of grounds and parking machines. Improve current condition of sites with the most deterioration in line with finances available. Risks 1. Failure to invest in proper surfaces will incur liability claims with an increase in 3rd party insurance claims 2. Loss of revenue if parking meters are not fixed timeously 3. Failure to future proof car parks with Traffic Regulation Orders to allow proper management and enforcement may make Argyll and Bute less popular as a tourist destination and reduce tourist numbers affecting the local economy/tourism and businesses. 4. Improving current site conditions will improve tourist numbers and better manage traffic around towns and villages as well as possibly allow event space. Summary of Planned 2023-24 investment Investment Strategy at funding levels indicated above A further Funding bid for Glen loin 2 Car Park was successful for £30k towards Designing a new car park area. This is expected to allow future funding bids to re-design the car park and possibly install toilets, EV Charging bays and camper van bays. Predictions on funding will be no sooner than 2024/25 and will not be evaluated until next year (2023). Top three service/asset group priorities Service Priority Cost (£) Are costs indicative or calculated) Estimated funding shortfall Asset category (asset sustainability, service development, strategic change) 1. Glen Loin 2 Unknown Asset Sustainability 2. Tobermory Car Park Approx £1M Previously calculated £1M (no funding identified at this time) Service Development 3. Revenue Improvements £270k Calculated £0 Asset Sustainability During Covid Loch Lomond experienced large volumes of staycation visitors. A partnership group including The National Park, Forestry & Land Scotland, Transport Scotland, Police Scotland, Luss Estates and Argyll and Bute Council worked together to support local communities in and around Luss, Arrochar and Duck Bay areas. Part of this included a Traffic Management plan which sought to improve and increase the car park at Glen Loin 2. Funding was successfully bid to redesign the car park with support from Rural Tourism Scotland; the plan to re-design the car park is fully supported by the other partners. The finalised re-design has not yet been fully costed. The Tobermory Car Park is currently held in abeyance due to the increase in costs experienced for the joint Cemetery and Car Park project. The island community of Mull are keen to improve the parking infrastructure particularly around Ledaig, Tobermory and further discussions have taken place to look at other potential nearby sites. Consideration will be given to a bid from the Island Infrastructure Fund to support building the car park. Match funding Opportunities/External Funding Achieved 2022-23 Opportunities 2023-24
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Asset Sustainability RTIF Funding of £30k for Re-Design of Glen Loin 2 Car park RTIF Funding for improvement to Glen Loin 2 car park Service Development Possible Islands Infrastructure Fund Strategic Change Links to relevant strategies: N/A at this time as Design is still being carried out for Glen loin 2 in Arrochar.
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STRATEGIC ASSET MANAGEMENT PLAN – ASSET GROUP SUMMARY Asset Group Bridges & Retaining Walls 3rd Tier Manager Elsa Simoes Description of Asset Group and Condition Assessment Number Condition Indicator* Bridges (over 1.5m span)** 902 (increase from March 2021 due to new structures identified not previously listed on the asset register) BCi 89.01*** Recorded retaining walls (over 1m retained height) – estimated that 80% of total number are recorded** 677 * Very good >=90 & <=100; Good >=80 & <=90; Fair >=65 & <=80; Poor >=40 & <=65; Very Poor >=0 & <=40 **Culverts under 1.5m span are managed by Operations and are excluded from the above – however, if a culvert is replaced and its span is increased above 1.5m due to flood risk mitigation, it would be reclassified as a bridge. **Retaining walls under 1m retained height are managed by Operations *** This demonstrates a continued deterioration from 89.06 in 2020/21, 89.27 in 2019/20 and 90.72 in 2012/13. It should be noted that structural assets deteriorate slowly. In future, it is expected the weight average BCi will be recorded. Currently it is 89.33 – a deterioration compared to 89.47 in 2020/21 and 89.92 in 2019/20. Bridge Condition is calculated through Structural Inspections carried out by in-house Bridge Inspectors through the Asset Management Software used by a number of Councils. Structural condition is measured though the in-house inspection of assets which considers each element of a structure. National guidance documents are utilised as well as a standardised Asset Management system. There is a backlog of maintenance due to a number of structures that have been identified below (currently) totalling £24.4m. Bridge No. & Name Area Restriction (MGW) A846-239 LAGGAN OLD (Weak Bridge) Islay 10T B8025-020 ISLAND ADD (Weak Bridge) Mid Argyll 3T B866-020 GLACHAVOIL (Weak Bridge) Cowal 7.5T C012-050 MILINDRY SCHOOL (Weak Bridge) Islay 13T C038-010 BRIDGEND (Weak Bridge) Mid Argyll 18T C038-050 BARMOLLOCH (Weak Bridge) Mid Argyll 18T C057-010 OLD BALLIEBEG (Weak Bridge) Cowal 18T U010-090 LEACAINN (BRENACHOILLE) (Weak Bridge) Mid Argyll 7.5T U010-100 BRANDON STREET (Weak Bridge) Cowal 7.5T U021-020 IRON (Weak Bridge) Islay 3T U022-050 GLENDARUEL (Weak Bridge) Cowal 7.5T U027-010 MILLHOUSE (Weak Bridge) Cowal 18T U031-010 NEWTON BURN (Weak Bridge) Cowal 10T U042-100 AIRDS HOTEL (Weak Bridge) Lorn 10T U046-010 KILBRIDE (Weak Bridge) Cowal 10T
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Investment (current and planned) Funding Funding source Current Year Anticipated Investment (£m) 2022-23 (£m) 2023-24 2024-25 2025-26 Block Allocation Scottish Government 0.500 0.450 0.450 Block Allocation Carried Forward Scottish Government -0.270 1.119 Additional Council Allocation Council 0.148 0.602 Coastal Change Adaptation Scottish Government 0.159 Local Bridge Maintenance Fund Scottish Government 0.475 4.972 0.853 7.302 0.45 0.000 2022-23 Overview Investment Strategy Bridge Inspections are carried every 24 months in accordance with DMRB Standards. Principal Inspections / Structural Reviews / Bridge Assessments are undertaken to determine priority of strengthening/improvement works. Capital Bridge Strengthening and Replacement Programme is prioritised using an in-house risk-based methodology which considers overall condition and risk of structure, extent and severity of defects, usage of structure and engineering judgement. This methodology has been modified in recent years to take account of new SCOTS guidance. Revenue Structural Maintenance is currently prioritised using an in-house risk-based methodology which considers overall condition of structure, extent and severity of defects, usage of structure and engineering judgement. Bridge Parapets (including vehicular barriers associated with bridge structures) have been ranked using an in-house system of factors. Structures: Capital Bridge Strengthening and Replacement Programme (including LBMF) - Strengthening & Replacement of Bridges & Retaining Walls Bridges in need of additional funding: o Auchengaich Bridge, A817 Haul Road £200k for strengthening works following work identified in Principal Inspection o Clachan (Atlantic) Bridge, Lorn £100k for strengthening works following work identified in Principal Inspection o Finlas Water Bridge, A817 Haul Road £200k for strengthening works following work identified in Principal Inspection o Middle Brae Retaining Wall, Tobermory, Mull £250k for reconstruction works following structural failure o Whistlefield South Bridge, Lomond
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£50k to install restrictions for road and rail safety on Council owned bridge over Network Rail line o Lindowan Culvert, Kilcreggan £1.2m for bridge strengthening or replacement scheme o Eachaig Footbridge, Cothouse, Dunoon – historic iron footbridge. £300k estimated budget required to allow structure to be retained as footbridge and to be renovated (rather than be demolished) o Victoria Footbridge, Dunoon - historic iron footbridge. £350k estimated budget required to allow structure to be retained as footbridge and to be renovated (rather than be demolished) Revenue Structural Maintenance - Bridge & Wall Inspections - Bridge & Wall Maintenance Repairs - Management of Abnormal Load Notifications - Technical Approval - Asset Management Revenue Structural Assessment - Assessment of Bridges and Retaining Walls The current level of total capital & revenue funding is expected to result in an increase in the number of restricted bridges in the longer term as well as a reduction in the overall Bridge Condition indicator (BCi). Coastal: Capital Coastal Protection - Coastal Protection Strengthening Repairs Revenue Coastal Protection: - Coastal Protection Inspections - Coastal Protection Maintenance Repairs Asset Management Risks 1. Increase in risk of bridge/road weight restrictions or closures. 2. Communities being left isolated should any single access areas have closures or restrictions imposed. For example Seil, Easdale and Luing communities will be severely affected if Kilninver bridge had to have a restriction. 3. Inspections, assessments and works are prioritised to best manage the risks versus available funding and the Council’s responsibilities for its assets. Summary of Planned 2023-24 investment Investment Strategy at funding levels indicated above
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Top three service/asset group priorities Service Priority Cost (£) Are costs indicative or calculated) Estimated funding shortfall Asset category (asset sustainability, service development, strategic change) 1. Bridge Strengthening and Replacement Programme £5.45m Calculated £0 Asset sustainability Match funding Opportunities/External Funding Achieved 2022-23 Opportunities 2023-24 Asset Sustainability Scottish Government’s Local Bridge Maintenance Fund - £5.45m Coastal Change Adaptation - £160k Dynamic Coast Project funding (coastal change) Service Development None. Strategic Change None. Links to relevant strategies • Maintain safe network of structures in accordance with Roads (Scotland) Act 1984 • Argyll and Bute Council - Roads Asset Management Plan (RAMP) - June 2017 • Argyll and Bute Council - Coast Protection Policy and Strategy - March 2015 • Ensure value for money for Council (through provision of cost efficient in-house design team). Maintain stock of Qualified Engineers.
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STRATEGIC ASSET MANAGEMENT PLAN – ASSET GROUP SUMMARY Asset Group Flood Protection Infrastructure 3rd Tier Manager Elsa Simoes Description of Asset Group and Condition Assessment Designed flood protection schemes in Rothesay (coastal), Dunoon (two no. fluvial alleviation schemes; Milton Burn and Kilbride Road). No formal condition rating. Concerns about Rothesay FPS are known. Investigations and studies are ongoing to determine future maintenance requirements. Kilcreggan SWMP identified Tigh Dearg Road and foul drainage issues – design ongoing in conjunction with Scottish Water. Helensburgh surface water drainage has also been identified and designs are ongoing. Other informal structures which provide flood protection to population centres would require to be documented in order to quantify the asset, owner, and condition. This is in part the purpose of the Local Flood Risk Management Plan 2022-2028, to assess risk in those areas affected by flooding. Watercourse assessments to be carried out and a schedule of clearance and repair works to be programmed. A Surface Water Management Plan has been incorporated into the Campbeltown Flood Protection Scheme and the Council aims to prioritise other areas respectively. Shoreline Management Plans are a requirement from the Flood Risk Management Plans. Whilst there is no allocated budget, the Council is preparing a specimen along the Bute shoreline. The current focus of delivery are the two Local Flood Risk Management Plans which relate to Argyll and Bute as described in this document (Highland and Argyll, Clyde and Loch Lomond). The maintenance backlog on designed flood protection assets is minimal currently (Rothesay and Dunoon) as these assets are relatively new. Current flood alleviation assets are maintained under a combination of flood, coastal, and roads budgets depending upon the context. On a wider scale there are under and un-designed flood protection assets throughout Argyll and Bute which are not formally recognised as such and may not be owned by the Council but serve this purpose e.g. the banks of the Black Lynn through Oban. There is an unknown backlog on such assets but would certainly run to tens of millions of pounds of investment to bring to an ideal condition. Investment (current and planned) Funding (eg block grant, Crown Estates, Sustrans etc) Funding source (eg Council, Scot Govt etc) Current Year Anticipated Investment (£m) 2022-23 (£m) 2023-24 2024-25 2025-26 Block Allocation Scottish Government 0.155 0.305 0.305 Block Allocation Carried Forward Scottish Government -0.086 0.464 Chord Budget Council 0.004 0.128 Coastal Communities Fund Crown Estate 0.300
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Council - Campbeltown Flood Council -0.647 3.248 0.266 Scottish Government - Campbeltown Flood Scottish Government 4.605 5.800 1.065 4.031 10.245 1.636 0.000 2022-23 Overview Investment Strategy On a strategic scale this is through the Local Flood Risk Management Plan(s) and the SEPA led National Flood Risk Assessment process to consider local history and impact of flooding as well as national flood risk based on climate change predictions – all in accordance with Flood Risk Management (Scotland) Act 2009. The cost of implementing flood protection schemes has to be less than the damages avoided i.e. a benefit cost ratio of greater than one. Non-economic benefits are also being considered by SEPA. However, the weighting this has on its prioritisation is being considered by the Scottish Government and COSLA. Risks 1. A key risk is loss of investment from Scottish Government. There is a defined process currently for assessing flood risk and prioritising investment across Scotland. If ABC do not participate in this process then the potential for 80% funding of flood schemes is lost. 2. Road closures and loss of assets – Several population centres in Argyll and Bute will be at significant risk of more frequent flooding in the future with climate change. Communities living along lifeline roads may be cut off temporarily. This will lead to considerable financial impact to properties and businesses. Ultimately, significant flooding events can lead to loss of life. Summary of Planned 2023-24 investment Investment Strategy at funding levels indicated above Top three service/asset group priorities Service Priority Cost (£) Are costs indicative or calculated) Estimated funding shortfall Asset category (asset sustainability, service development, strategic change) 1. Completion of Campbeltown Flood Protection Scheme 15.215m Calculated 0 Strategic Change 2. Carrying out works as identified under section 18 scheduled of clearance and repair. TBC TBC TBC. Asset Sustainability 3. Carry out emergency and urgent reactive works punctually Unknown N/A Unknown Asset Sustainability Delivery of identified Cycle 2 schemes as per the Local Flood Risk Management Plan cycle one flood studies are considered as possible future schemes should Scottish Government Funding be identified and made available. Scottish Government funding would be expected to cover 80% of each scheme. Match funding Opportunities/External Funding
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Achieved 2022-23 Opportunities 2023-24 Asset Sustainability None Not Yet Known Service Development None Not Yet Known Strategic Change 80% contribution for Campbeltown Flood Protection Scheme from Scottish Government. Possible Scottish Government identification of funding for 80% contribution to Cycle 2 Schemes identified from Cycle 1 Studies. Links to relevant strategies • Argyll and Bute Council - Flood Risk Management Policy – March 2015 • Flood Risk Management Plans (Cycle 2): o Highland and Argyll - Local Flood Risk Management Plan (2022-2028) o Clyde and Loch Lomond - Local Flood Risk Management Plan (2022-2028) • Campbeltown Flood Protection Scheme (argyll-bute.gov.uk)
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STRATEGIC ASSET MANAGEMENT PLAN – ASSET GROUP SUMMARY Asset Group Fleet Services 3rd Tier Manager John Blake Description of Asset Group and Condition Assessment Condition information relating to fleet lifecycle will be forthcoming due to time required to extract this information from systems and work currently underway. Vehicles and plant equipment will be maintained in line with current legislation. Asset Group No and or/Value* CONDITION (percentages based on total asset value) Green / Purple Yellow Amber Red Changes to legislation which will come into force in 2025 requiring smaller vehicles to move away from petrol and diesel fuelled types Capital £9,558,369 Revenue £1,533,232 per annum 0% 0% 0% 100.00% Fleet replacement (remainder of the Fleet) Capital £1.5m 0% 0% 0% 100.00% Fleet Services No. Condition Suitability A B C D A B C D Fleet vehicles & plant equipment 504 TOTAL 504 Investment (current and planned) Funding Funding source Current Year Anticipated Investment (£m) 2022-23 (£m) 2023-24 2024-25 2025-26 A&B Council Prudential Borrowing 1.187 1.000 0.000 0.000 A&B Council Earmarked Reserves 0.499 0.000 0.000 0.000 Total 1.686 1.000 0.000 0.000 2022-23 Overview Investment Strategy There are insufficient funds to have a full vehicle replacement cycle in 2025 due to Programme for Government Commitment to phase out Public Sector operating or leasing of petrol and diesel cars and vans by this year. There is currently no legislation or clarification of an exact implementation date as discussions ongoing with sector. The authority operates 504 Fleet vehicles. Vehicles are replaced dependant on funding and the focus replaces vehicles which cost a significant amount of revenue to maintain. The number of vehicles replaced within financial year 2022/23 is 7, orders remain outstanding due to a delay in build. The Scottish Government are making changes to the legislation that relates to vehicle use in the public sector – which could be enforceable at earliest on 1st January 2025. All cars and small vans under 3.5 tonnes in weight are required to be replaced to battery electric vehicles. The number of vehicles required to be replaced within A&BC Fleet is 124. Investment is required now to ensure a programme is implemented for changing the current petrol and diesel vehicles to battery electric vehicles. Capital costs for replacing all vehicles under 3.5 tonnes (small cars & vans) is £9,558,369 capital, revenue costs for leasing the replacement vehicles are £1,533,232 per annum, the lease term is 3 years and includes maintenance. Charging infrastructure is required to support the transition to comply with the Scottish Government requirements on public sector bodies to move to electric vehicles. The infrastructure requirements will be a challenge to the authority due to the power supply required and the geographical area of
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Argyll and Bute inclusive of island settings. A&BC must invest in charging infrastructure throughout Argyll & Bute to support compliance. Currently A&BC are not on course to achieve compliance with replacing smaller vehicles or having suitable infrastructure in place due to lack of funding. The current underspend/ slippage is due to the build time for replacement vehicles. Timeframes vary from 6 months to 24 months to procure suitable vehicles and plant equipment. Capital funds with an element of prudential borrowing has allowed for essential vehicles to be replaced through capital purchase. It is noteworthy that all replacements are essential and purchases have been made on the basis of increased maintenance costs with particular vehicle types. High maintenance costs remain prevalent, this is due to the absence of sufficient funding to replace the Fleet on a cyclical basis. Risks 1. The inability to provide reliable, safe fleet vehicles and plant to service users to fulfil statutory requirements relating to work plans. There is a significant risk with the current ageing Fleet and having insufficient funds, the only option to mitigate against this risk is to invest in a full fleet replacement cycle. Capital funding has been made available with an element of prudential borrowing to purchase essential vehicles. This balance is difficult as all vehicles are essential. 2. Increased revenue expenditure for repairs and maintenance as well as service disruption due to vehicles being off the road, this risk can be related to current maintenance costs which are attributable due to the older vehicles that the authority continues to operate. 3. Currently the council isn’t on course to achieve compliance with changes in legislation in 2025 for smaller vehicles to move away from petrol and diesel fuelled types. There is a risk of legal non-compliance once this comes into force, the scale of the risk is significant if capital or revenue funds are not made available. In addition, EV infrastructure requires investment to allow the introduction of the vehicles into the service should funding be made available. To comply with legislative changes the capital costs for replacements would be: Table 1. Purchase - Best value Vehicle Class Vehicle Class 2 Purchase Price - Best Value 02 Car Derived Van/P- up 224,900 03 Cars/Estates 998,712 04 Panel Van < = 3000Kg 574,000 06 Car 4x4 61,800 07 Electric Vehicles 524,960 08 Hybrid - PHEV - Car 512,160 09 Hybrid - PHEV - Van 346,000 10 Van4x4/Dual Purpose 157,500 20 Accessable Car 471,000 21 MPV 848,250 22 Bus 12-17 Seater 4,312,000 35 Tipper 300>3500Kg 527,087 Grand Total 9,558,369 There are no PHEV or EV 4X4 available Table 2. Leasing – Best value per annum Vehicle Class Vehicle Class 2 Lease Price - Best Value 02 Car Derived Van/P- up 50,297
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03 Cars/Estates 196,989 04 Panel Van < = 3000Kg 119,434 06 Car 4x4 14,790 07 Electric Vehicles 91,760 08 Hybrid - PHEV - Car 104,620 09 Hybrid - PHEV - Van 77,380 10 Van4x4/Dual Purpose 26,406 20 Accessable Car 97,920 21 MPV 162,400 22 Bus 12-17 Seater 473,536 35 Tipper 300>3500Kg 117,700 Grand Total 1,533,232 Lease costs above are per annum There are no leases available on PHEV or EV 4X4 or Mini buses available Summary of Planned 2023-24 investment Investment Strategy at funding levels indicated above Asset sustainability - The Council has a duty to ensure vehicles are fit for purpose and comply with current legislation. Due to increasing repair and maintenance costs, a replacement programme is underway. Capital and revenue savings have been identified in the procurement of new vehicles. With smaller vehicles having to be replaced with electric vehicles by 2025, there is an anticipated increase in replacement costs associated with vehicle replacements. The cost of complying with legislative changes requires either £9,558,369 capital expenditure or revenue expenditure of £1,533,232 per annum over a 3 year period. Vehicle replacement will be programmed ensuring that suitable, reliable fleet vehicles and plant equipment are available for service users, and with limited capital investment this will possibly be achieved through prudential borrowing. This will also contribute to climate change with more modern vehicles purchased and reduced CO2 emissions contributing to the wider council net zero ambitions. A&BC require additional funds to be allocated to enable the purchase of 4 essential larger vehicles to enter service within the Fleet. Funding is required for 3 x 26 tonne Refuse Carrying Vehicles (£600K) and 1 x 18 tonne Refuse Carrying Vehicle (£180K). The total cost for the 4 essential replacements is £780k. The purchase of these vehicles will reduce maintenance costs and remove older RCV’s from the Fleet offering reliability and continuity of service. These funds are required as soon as possible as procuring vehicles can take between 6 and 24 months dependant on availability of parts to enable the build. A full replacement cycle would be at a cost of £18m. Purchases have already been made with a significant level of capital funding spent on roads vehicles. Top three service/asset group priorities Service Priority Cost (£) Are costs indicative or calculated) Estimated funding shortfall Asset category (asset sustainability, service development, strategic change) 1. Changes to legislation which will come into force in 2025 requiring smaller vehicles to move away from petrol and diesel fuelled types Indicative costs are being refreshed and will be available in January (Calculated) Capital Revenue £9,558,369 £1,533,232* per annum Asset sustainability (like for like service will be the outcome)
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(over 3 years) 2. Replacement (remainder of the Fleet) £1.5m Indicative £1.5m Fleet vehicles and plant 3. Essential replacements, investment is required £780k (this figure is included within the £1.5m investment noted above in point 2) Calculated £780k Essential vehicles and plant 3 x 26 tonne RCV’s 1 x 18 tonne RCV’s Match funding Opportunities/External Funding Achieved 2022-23 Opportunities 2023-24 Asset Sustainability None identified None identified Service Development None identified Funding sources relating to roll out of petrol / diesel phase out by 2025 Strategic Change None identified None identified Links to relevant strategies
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STRATEGIC ASSET MANAGEMENT PLAN – ASSET GROUP SUMMARY Asset Group Waste Services 3rd Tier Manager John Blake Description of Asset Group and Condition Assessment SEPA condition surveys and site monitoring to ensure compliance with environmental legislation. The sites are permitted by SEPA to operate the sites. Renewi through a Waste PPP contract manage sites on behalf of the Council. The sites include civic amenity and landfill sites at the one locus, mixed waste, recycling etc. is managed on site. Renewi manage Moliegh, Dalinlongart, Lingerton, Westlands and Bogleha. The Council manage sites on Islay, Mull, Tiree and small civic amenity site on Coll and Colonsay. Officers monitor the requirements for each site. Renewi have the responsibility for infrastructure within the Waste PPP sites. Investment is required in Helensburgh for a Waste Transfer Station (£3.0m) and infrastructure changes to the current MBT plants in Moleigh, Dalinlongart and Lingerton would require conversion to Waste Transfer Stations, the cost would be £500k to comply with the BMW ban. The introduction of a Waste Transfer Station will create opportunities for waste disposal through Energy from Waste (EfW) in the central belt and has the potential for joint procurement with other neighbouring authorities creating economies of scale through combined tonnage to EfW. Furthermore, the risk to the authority would be reduced and the authority would not continue to be reliant upon local private sector contractors for material treatment/ disposal within the Helensburgh and Lomond area and Waste PPP area. Asset Group No and or/Value* CONDITION (percentages based on total asset value) Green/ Purple Yellow Amber Red Waste Transfer Station build in Helensburgh and conversion of existing MBT plants at Moleigh, Dalinlongart and Lingerton. £3.5million 0% 0% 0% 100.00% Ref: EDI report, December 2022. Investment (current and planned) Funding Funding source Current Year Anticipated Investment (£m) 2022-23 (£m) 2023-24 2024-25 2025-26 Block Allocation Carried Forward Council 0.082 0.000 0.000 0.000 Prudential Borrowing Council 1.200 0.000 0.000 0.000 1.282 0.000 0.000 0.000 2022-23 Overview Investment Strategy Assessment and review is conducted by officers. Property have the responsibility for assessing any requirements or maintenance to the sites. Asset Sustainability the primary driver for investment, however, there is a lack of investment made at sites. Risks
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1. £3.5m required to achieve Biodegradable Municipal Waste (BMW) compatible infrastructure on 4 sites. Funding to achieve compliance has not been identified. 2. None compliance with statutory requirement and likely prosecution via SEPA if compliance is not met. Summary of Planned 2023-24 investment Investment Strategy at funding levels indicated above The SG BMW ban will require investment for WTS of approximately £3.5M [indicative funding is currently zero. Should funding become available, £3.5m will be required to invest in WTS to comply the SG BMW ban. The authority had submitted an application to Zero Waste Scotland (ZWS) for grant funding through the Recycling Infrastructure Fund (RIF) which was released by the Scottish Government and administered by ZWS for infrastructure improvements/ changes to the council operated waste sites to improve recycling figures. The RIF application was unsuccessful, however, Officers are engaging with ZWS to refresh the application with a view to resubmission in April 2023. The RIF funding totalled £610k for site improvements. Top three service/asset group priorities Service Priority Cost (£) Are costs indicative or calculated) Estimated funding shortfall Asset category (asset sustainability, service development, strategic change) 1. Waste Transfer Stations £3.5m Indicative £3.5m Asset sustainability, service development, strategic change 2. 3. Match funding Opportunities/External Funding Achieved 2022-23 Opportunities 2023-24 Asset Sustainability Prudential Borrowing (Glengorm Capping) £1.200m Block Allocation (Glengorm Capping)£0.082m Service Development Compliance with SEPA requirements and site management Recycling Infrastructure Fund (RIF) Bid – Island + Helenburgh – approx. £500k Strategic Change N/A Links to relevant strategies
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STRATEGIC ASSET MANAGEMENT PLAN – ASSET GROUP SUMMARY Asset Group Piers & Harbours 3rd Tier Manager Scott Reid Description of Asset Group and Condition Assessment Asset Group No and or/Value* CONDITION (percentages based on total asset value) Green/ Purple Yellow Amber Red Marine Asset Management Plan: 39 piers and harbours 10 year rolling Capital investment. Support of infrastructure upgrades generally for CFL ferry service upgrades. Also includes Argyll & Bute Council ferry infrastructure upgrades and required modifications. £6,176,000 50% 0% 50% 0%** Investment (current and planned) Funding Funding source Current Year Anticipated Investment (£m) 2022-23 (£m) 2023-24 2024-25 2025-26 Prudential Borrowing Council 5.626 22.235 27.025 29.700 There may be some opportunities for support from CMAL on joint projects. Will be assessed on each aspect of the works involving CMAL upgrades for CFL services 2022-23 Overview Investment Strategy Detailed technical condition surveys and user demand determine the priorities. Regular reports are made to the Council’s Harbour Board. Priority is given for lifeline ferry services and required modifications or upgrades to support new vessels deployments. Inspections and repair / defect reports from Argyll & Bute Council staff and customers. Risks 1. Impact to Island Community Connectivity. 2. Potential increase in claims for vessel damage and reputational risk to the Council. 3. Potential increase in funds required to repair infrastructures following underinvestment. Summary of Planned 2023-24 investment Investment Strategy at funding levels indicated above Progress on the 10 year Capital rolling asset management plan Top three service priorities
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Service Priority Cost (£) Are costs indicative or calculated) Estimated funding shortfall Asset category (asset sustainability, service development, strategic change) 1. Capital Investment Projects. (Estimates for next 5 years) 22-23 £15,550K 23-24 £23,025K 24-25 £28,200K 25-26 £17,811K 26-27 £182K Indicative Nil Fees and charges repay Prudential Borrowing Asset sustainability and development of service upgrades 2. Electrical charging power and Cat 5 supply for Hybrid / all-electric vessels Included in above Indicative Nil Asset sustainability and development of service upgrades 3. Infrastructure for Argyll & Bute Council ferry services Included in above Indicative Nil Asset sustainability and development of service upgrades Match funding Opportunities/External Funding Achieved 2022-23 Opportunities 2023-24 Asset Sustainability N/A Shared costs to be negotiated with CMAL on joint upgrade projects. TBC. Service Development Strategic Change Links to relevant strategies
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STRATEGIC ASSET MANAGEMENT PLAN – ASSET GROUP SUMMARY Asset Group Ferries 3rd Tier Manager Scott Reid Description of Asset Group and Condition Assessment Asset Group No and or/Value* CONDITION (percentages based on total asset value) Green/ Purple Yellow Amber Red Completion of transaction for Lismore ferry replacement £0.015 50% 0% 50% 0% Investment (current and planned) Funding Funding source Current Year Anticipated Investment (£m) 2022-23 (£m) 2023-24 2024-25 2025-26 Block Allocation Scottish Government 0.000 0.015 0.020 0.000 Lismore Ferry Replacement Transport Scotland 0.013 0.00 0.000 0.000 Total 0.013 0.015 0.020 0.000 2022-23 Overview Investment Strategy Completion of transaction for Lismore ferry replacement. MV Eilean Dhiura: 22 years old Capacity issues results in c.30% ~ 40% extra sailings required to meet demand. Due to the capacity and age combination and that it may also potentially replace the Cuan Ferry for some years to come, this vessel has been prioritised for replacement first. Cuan Service MV Belnahua: 50 years old Carries cars and passengers, operating from Cuan to Luing. Continued regulatory restrictions on the vessel. Highlighted for replacement for 20+ years. Restricted load carrying capability impacts refuse collection on Luing. Long term plan to replace MV Belnahua with larger carrying capacity roro vessel. Option to move MV Eilean Dhiura to Cuan once Jura ferry replacement is in place. Infrastructure changes (slips) would be required to accommodate roro type vessel. Proposed replacement slip plans are available or consider other fixed link alternative. Overnight berthing facility for MV Belnahua to remove the risk of crew transit (especially during hours of darkness) on work boat ML Torsa to swinging mooring located approx. 1km from Cuan slip. Due to uncertainty of time frame for replacement vessel for MV Belnahua consideration must be given to life extension by replacing engines. Current engines are now 14 years old and have recently been overhauled however issues are now appearing requiring replacement parts (for example fuel pumps) which are no longer available ‘off the shelf’ and, if unavailable, parts have long lead times – certain critical parts now being quoted up to 12 months. This is a potential exposure to reliability of the service and similar to that experienced on MV Eilean Dhiura prior to new engine replacement. ML Fladda: 20+ years old ML Torsa: 20+ years old Torsa: Passenger only service (winter) and daily crew transfer to and from vessel (Belnahua) swinging mooring. Easdale Service Easdale: 20+ years old
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Operates from Ellenabeich to Easdale Island. Passenger only work boat operating out with Equalities Act access for passengers. Priority for renewal The largest of our vessels is the Eilean Dhiura which was built in 1998 and operates a daily service of 15 return sailings per day Monday to Saturday and 7 return sailings per day on Sundays between Islay and Jura. The vessel has an ‘LSA capacity’ for a total 50 passengers (this represents the amount of Life Saving Apparatus required to be on board and therefore a maximum number of persons – both crew and passengers) and approximately 6 cars (depending on size and type). Due to significant increased demand, the crew facilitate extra sailings between the timetabled departures in order to clear any queues and currently this equates to c.30% ~ 40% more runs per working day. Summary of Planned 2023-24 investment Investment Strategy at funding levels indicated above Completion of transaction for Lismore ferry replacement. Vessel age and discontinuation of grandfather rights. Top three service/asset group priorities Service Priority Cost (£) Are costs indicative or calculated) Estimated funding shortfall Asset category (asset sustainability, service development, strategic change) 1. Completion of transaction for Lismore ferry replacement 0.020m Calculated Nil – This represents Transport Scotland funding for original shortfall Service development 2. New Jura Ferry £8,871,600 Estimate of total cost. £8,871,660 Service development funded through LUF rejected. Funding to be explored. 3. Match funding Opportunities/External Funding Achieved 2022-23 Opportunities 2023-24 Asset Sustainability N/A Recovery of shortfall in Transport Scotland funding for Lismore replacement. LUF rejected for Jura replacement so opportunities to be explored Service Development Possible rebid to LUF Strategic Change Links to relevant strategies
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STRATEGIC ASSET MANAGEMENT PLAN – ASSET GROUP SUMMARY Asset Group Airports 3rd Tier Manager Moya Ingram Description of Asset Group and Condition Assessment Asset Group No and or/Value* CONDITION (percentages based on total asset value) Green/ Purple Yellow Amber Red Airports 3 75% 10% 10% 5% Oban, Coll and Colonsay airports – Oban runway length 1200m, Coll and Colonsay runway lengths 500m. Both Coll and Colonsay have a small terminal facility comprising of office/waiting area/integral garage. Oban airport has a larger terminal building comprising of office/crew commander room/meeting room/waiting area/drying area/integral double garage. Oban airport also has a tower from which a Flight Information Service is offered. The current overall condition of the asset group is good, however note that the facilities and runways are now circa 15 years old. Investment (current and planned) Funding Funding source Current Year Anticipated Investment (£m) 2022-23 (£m) 2023-24 2024-25 2025-26 2022-23 Overview Investment Strategy Runway Inspections are held daily with any defects noted. Annually the Civil Aviation Authority will undertake aerodrome audits at all three airports. Risks 1. Risk for unknown maintenance failure due to inclement weather eg fence damage/sign damage/flooding 2. CAA audit inspections findings are unknown and will require to be addressed Argyll and Bute Council operate three licensed aerodromes at Oban, Coll and Colonsay. These aerodromes are licensed by the Civil Aviation Authority as required by law to allow scheduled passenger flight services (for use by paying members of the public) to land and take off. The licence stipulates the required safety standards and fire cover required for each aircraft movement. Operations at the licensed aerodromes are audited on a regular basis by the CAA and require the appropriate level of resource.
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Summary of Planned 2023-24 investment Investment Strategy at funding levels indicated above Top three service priorities (please list the top three service priorities and whether or not funding is currently available or potential sources of funding, as well as timelines. This provides Elected Members with an insight into what will or could be funded to maintain/improve service delivery. This section will help to inform thinking on future priorities, lobbying activity and external funding bids and to develop a pipeline of projects) Service Priority Cost (£) Are costs indicative or calculated) Estimated funding shortfall Asset category (asset sustainability, service development, strategic change) 1. Application of fuel resistant coating on Aprons and Helipad 1 and 2 £20k Indicative £20k 2. Acquisition of Paint Sprayer for Island Airfield markings £20k Indicative £20k 3. Acquisition of Shipping Containers for Island airports to house equipment. £30k Indicative £30k Match funding Opportunities/External Funding Achieved 2022-23 Opportunities 2024-25 Asset Sustainability Service Development Strategic Change UK Levelling Up Fund Links to relevant strategies Islands Connectivity Plan