Agenda item

To consider a report of the Corporate Director for Property and Assets.  The committee have the opportunity to raise any comments which will be forwarded to Cabinet for their information.

The committee received and considered a report of the Corporate Director of Property and Assets which set out the approach and methodology to be used as the basis for the review of the council’s assets and the basis for determining the future shape and size of the estate.  In addition to the report, the committee received a presentation in order to provide further detail on the key issues which included the impact of the current situation with Covid-19 in this area.

The Chairman highlighted to the committee that this report was in relation to the methodology around the council’s asset management plan and did not go into detail of specific assets held by the council.

The committee considered the issues arising from the report and presentation and during discussion, the following points were raised:

·                In response to a question, the Corporate Director noted that local access was an important element in the service strategy and that this needed to be reflected in the council’s property portfolio.  The example of Children’s Services was provided where the service was looking for a more local presence

·                A recent review of leisure services and subsequent report to Cabinet included work with the service to understand the best way to utilise assets in this area

·                Reference was made to county farms which were a valuable, revenue generating asset for the council.  All assets would be reviewed but as a general rule there would be a wish to continue where assets were generating revenue

·                An example was provided of a third party lease where there would be a choice as to whether this was reviewed or exited and other elements which were driven by the ability to vacate a premise.  There was a need to prioritise where the council could achieve the greatest value

·                The council’s office estate would be included in the review

·                A point was made that there needed to be a clear timetable for this work with targets as to when reports would be made and decisions taken.  The Corporate Director confirmed that there needed to be a timeframe to be agreed by the appropriate portfolio holder and Cabinet to move the work forward

·                A discussion was held in respect of issues around school assets and academisation

·                The link between the sale of assets and the council’s role as a planning authority was considered.  The Corporate Director provided an overview of the number of ways that an asset could be disposed of ranging from no consideration of planning issues, some level of planning consideration through a pre-planning process through to a full planning process in respect of an asset

·                In response to a concern raised with regard to governance issues in this area, the Corporate Director (Legal and Democratic Services) assured councillors that the council had arrangements in place that were legally compliant and which maintained a clear separation between the executive and planning functions

·                A point was noted that reference to climate change/energy costs did not cover one off costs of things such as demolition and rebuilding or changes such as how people used accommodation, for example how far people travel to get to work.  In response, the Corporate Director of Property and Assets noted that agile working would form part of the work at looking at buildings.  Work would be undertaken to understand viability issues around how buildings were maintained

·                A point was made that it was essential to have timescales in place so that progress could be monitored.  In response it was noted that there was still work to do in order to have an overall plan and programme for the work

·                Options around disposal of assets needed to be considered to take into account financial issues such as revenue to the council but also wider council objectives such as the provision of affordable housing

·                The council needed to take a holistic approach when considering its estate and what it was able to achieve in terms of both social and economic aims

·                A question was raised in respect of the market for selling property and balancing achieving the best value for the sale of an asset.  In response, the Corporate Director noted that the market could determine the value of an asset.  The potential of each asset needed to be considered as to whether it should be sold in order to achieve a one off capital receipt or whether it should be repurposed in order to create greater value and ongoing revenue

·                A comment was made about the potential impact of the proposed planning white paper in this area

·                Reference was made to page 8 of the agenda and a comment that the council should be zero carbon by no earlier than 2035 and the point made that the wording should clarify that the council did not have to wait until this date in order to achieve this

·                It was noted that consideration of heritage assets would be subject to consultation and that there would be a sensitive approach to dealing with these assets.

The Portfolio Holder for Economic Growth, Assets and Property thanked the committee for their interesting comments on this subject.  He reflected on the position in bringing together a large estate into Dorset Council from the former councils and the work undertaken in order to restructure the officer resources in order to ensure that there was capacity to drive this work forward.

The Chairman summed up the discussion held by the committee which included the key points made in respect of county farms and the revenue generated by these, concerns expressed over the need for clear timescales for this work, issues around academy leases, associated planning issues, provision of affordable housing on sites and disposal of assets and market values.  Comments made by the committee would be reported to Cabinet when they considered the report on asset management at their meeting on 3 November 2020.

Decision

That the Place and Resources Scrutiny Committee support the approach and methodology to be used as the basis for the review of assets and the basis for determining the future shape and size of the estate.