Agenda item

Report of the Strategic Director, Corporate Services and Governance

The Committee received a report to provide an update on the progress made against the Council’s Corporate Asset Strategy and Management Plan and the year on year performance of the property portfolio.

Following a review of how the Council manages its property portfolio in 2009, it was recognised that councillor engagement was essential in both the monitoring and scrutiny of the way in which the Council uses its property portfolio to deliver its services and priorities.

It was agreed that reporting would be in respect of two specific elements:

·         Approval of a Corporate Asset Strategy and Management Plan (CASMP); and

·         Monitoring and Performance of the property portfolio

The CASMP sets the strategic direction for the use of the Council’s land and buildings in support of its policy priorities.  It provides the focus for the efficient use of property assets to support service delivery and the strategic management of, and investment in, the Council’s property portfolio.

The performance of the assets is assessed against the provisions of the Council Plan, the CASMP and the Medium Term Financial Strategy.

Some of the following works were highlighted as part of the ongoing work:

The major works to the Civic Centre as part of the Workspace Strategy in 2015/16, attention is now focussed on the remaining areas on the ground floor and the public spaces and reception areas.  The work in the Registrars area and facilities available for wedding ceremonies has recently been upgraded.  Cemeteries and Crematories, IT Business Support and Occupational Health and Health and Safety will be the next phase to be upgraded.

The ongoing review has highlighted the opportunity for the Council to develop the Civic Centre as a public sector hub whereby vacant office accommodation can be offered to other public sector/partner organisations.  This will enable the Council to secure an income, reduce its running costs for the building and provide the opportunity for enhanced service delivery through partnership/cross-organisation working.

The Council has been supported with the Civic Centre project through the One Public Estate which has provided revenue funding to enable the Council to secure additional resources to bring pace to the project.

The Council has been pro-active in its approach to working with local communities and associations supporting the idea of community asset transfer.  To date 22 former community centres have been transferred to Charitable Incorporated Organisations or Sports Clubs with The Winlaton Centre and Emma Memorial Hall being completed in 2017/18.  There is now only one community centre remaining to be transferred (Barley Mow) and discussions are progressing with the community group, this will be reported in next year’s performance report.

The Council is committed to making continuing improvements in a reduction in its energy usage.  There have been continuing improvements, however, there has been an increase in gas usage, it is thought that this is a result of the beast from the east.  In terms of water consumption it is thought that the increase of 8.72% is due to the council changing suppliers of water and it is anticipated that there will be a reduction by the time next years figures are produced.

The Council’s aim to reduce carbon emissions by 35% by 2016.  As at March 2017 that target has been achieved, the total actual and weather corrected carbon emissions for property and street lighting have decreased by a further 8% and now stand at 44% since 2007.  This is due in part to the completion of the 5 year programme to retrofit all street lighting with efficient lanterns (either LEDor high efficiency dimmable lanterns).  The expansion of the Gateshead Energy Company private wire network to the Civic Centre and the two depots at Shearlegs Road and Park Road has further reduced carbon emissions.

Following a strategic review of the Council’s non-operational portfolio, a suite of local property performance indicators has been agreed.  The highlight for performance in 2017/18 is:

·         Nett income from the TNRP was £2,300,552.  A total of 26 new lettings, 15 lease renewals and 12 rent reviews were completed over the year.

During the course of 2017/18 discussions continued with the Public Sector Plc (PSP), following the establishment of a Limited Liability Partnership between the Council and PSP: ‘PSP Gateshead LLP’.  The Partnership and Operational Boards have been established and are meeting on a regular basis to identify projects that can be taken forward by the Partnership.

The Council continues to strive to secure the disposal of surplus assets as quickly and efficiently as possible, as this helps to avoid vandalism or antisocial behaviour associated with vacant property, both of which can pose a risk and cause problems for local residents.  It also reduces the holding costs and the amount of maintenance required to the property portfolio.

As at March 2018 there were 5 properties, (Gateshead Old Town Hall, former Hookergate School, The Courtyard, Low Fell (Former WING building) former Wrekenton multi-purpose building and former Dunston Hill School, valued at £3,580,000 on the Council’s surplus property register.

It was queried what the current position was with the potential sale of the central nursery site.  It was noted that planning permission was granted last week and officers are currently looking at options around tenure and the delivery route, whether it be joint venture, or the Council through the trading company.  It is anticipated that proposals will be brought to Cabinet over the next 2 or 3 months.

It was queried whether the services occupying the Civic were paying rent.  It was confirmed that occupiers of the Civic Centre pay rent and contributions towards heating and maintenance.  It was also noted that we have a number of police officers working in children and families, adult social care and trading standards.  They don’t pay rent but it is enhancing the services offered.

It was queried whether the carbon emissions figures took into account the reduction in the number of buildings.  It was noted that there is an element of less buildings in the portfolio than 10 years ago, however, the larger buildings remain, however, the street lighting can account for a 60% drop in electricity usage, it was noted that the baseline hasn’t been adjusted.

The position with Barley Mow Community Centre was queried.  It was noted that this had been completed in the 2018/19 year and would be reported in the next annual report.

It was queried what percentage of staff work from home.  It was noted that there is a relatively small number of employees who work from home on a regular basis.  There are some services who have employees working from home on permanent basis.  It was noted that there will be more of a push to include this in the workforce strategy.

It was queried what the position was with the Old Town Hall and buildings on Swinburne Street, given several voluntary organisations have been given notice but currently are still paying rent and maintenance is not being undertaken.  It was also queried whether alternative accommodation has been identified.  It was noted that officers are working with all of the organisations affected and some have already relocated.  It was also noted officers will look to get an update on the plans and timeframe from the organisation involved.

RESOLVED -      (i)     That the progress achieved over the period against the Corporate Asset Strategy and Management plan be noted.

                            (ii)    That the comments of the Committee in relation to the Plan be noted.