Hampshire County Council

Executive Member for Policy and Resources Item

13 November 2003

Strategy for the Built Estate - Performance Review

Report by the Director of Property, Business and Regulatory Services

1

Summary

1.1

The following decisions are sought:

That approval be given *

2

Reason(s)

2.1

*

3

Other options considered and rejected

3.1

*

4

Conflicts of interest declared by the decision-maker or a member or officer consulted

4.1

Not applicable

5

Dispensation granted by the Standards Committee

5.1

Not applicable

6

Reason(s) for the matter being dealt with if urgent

6.1

Not applicable

Approved by:

..........................

Date of decision:

.........................

Councillor T K Thornber

Hampshire County Council

Buildings, Land and Contracts Panel Item

24 October 2003

Strategy for the Built Estate - Performance Review

Report by the Director of Property, Business and Regulatory Services

1

Summary

1.1

The strategy and key objectives for 2003/04 relating to the built estate were confirmed by the Panel at its meeting on 26 March 2003 and approved by the Executive Member for Policy and Resources on 12 April. The purpose of this report is to review performance against the strategy including a six month assessment against the performance indicators and targets which were established at the start of the financial year.

2

Introduction

2.1

The strategy is the principal means by which the County Council manages its priorities with regard to asset and maintenance liabilities. The objectives in the strategy provide the framework against which the revenue and capital repairs budgets are allocated:

· to direct resources to the highest and most significant liabilities in the permanent built estate;

· to maximise the opportunities for planned maintenance regimes as opposed to reactive `patch and mend';

· to ensure that the buildings are accessible and safe to occupy and a robust corporate Health and Safety Strategy exists;

· to maximise the value of particular levels of investment through effective procurement regimes;

· to establish effective management partnership arrangements with schools and to maximise the opportunity for government funding; and

· to ensure that sustainability is at the heart of property management policies.

2.2

Within the framework of the above strategic objectives a number of key activities for 2003/4 have been established relating to:

· Social Services - conclusion of reinvestment in Older Persons Home strategy and consideration of future strategic programmes

· Recreation and Heritage - review of maintenance liabilities and development of a programme of repairs

· Education

o consolidation of new Primary Schools team

o implementation of schools funded and devolved capital projects

o aggregation of local funding with landlord's budgets

o further enhancing customer services and support to schools with regard to property activities.

3

Review of Performance Objectives

3.1

The performance indicators (PIs) and targets established at the start of the year include both national and local measures and incorporate the measurement of outputs together with qualitative and quantative performance measures. Of particular note is the increase in compliments which now outnumber complaints. This is especially pleasing given the increase in workload over the last few years. High levels of customer satisfaction overall are confirmed by the feedback received at the completion of projects where the department is on target to meet its improvement target. A summary of progress is contained in the appendix 1.

3.2

To direct measures to the highest and most significant liabilities in the permanent built estate

To maximise the opportunities for planned maintenance regimes as opposed to reactive `patch and mend'.

3.2.1

The ratio of planned to reactive work is one measure that can be used to assess performance against the above objective. The target this year is to maintain the ratio at 77% planned to 23% unplanned. The budget distribution reflects this position and is reviewed in more detail in the report later on the agenda.

3.2.2

One of the challenges is to sustain the current position and to maximise the benefit of the NDS funding. Since 2001/2 over 240 schools have benefited from expenditure of over £39m. The work has included re-cladding, re-roofing and engineering systems replacement and is integral to the health and safety improvement programme, particularly that relating to the condition of buildings.

3.2.3

The benefit of sustaining capital investment over a number of years can be seen in the Ballard and re-cladding programmes in particular. Ten years' ago the Council had some 3,000 Ballard heaters, mostly in schools. The heaters were noisy, unreliable and inefficient. Today none of the Council's schools have to endure this unsatisfactory form of heating. As well as improving the teaching environment, modern forms of heating are also less costly to maintain and are more energy efficient. A similar picture is emerging with the early SCOLA mark 1 buildings, where around 70% have either been reclad or are programmed to be completed by August 2004.

3.2.4

Over 60% of the revenue maintenance budget is committed to the annual engineering servicing and maintenance contracts. The performance indicators associated with these arrangements confirm that servicing is being completed on programme, 90% of calls are responded to within 4 hours. Over 20,000 incidents annually are dealt with through these arrangements.

3.3

To ensure that the buildings are accessible and safe to occupy and that a robust corporate health and safety strategy exists

3.3.1

The report on the Risk Management Strategy for the built estate later on the agenda provides a detailed assessment of recent performance together with a commentary on the tasks required to make further improvements. Over the last 12 months there has been a significant improvement in management performance as indicated in the summary below:

Performance No. of risks

2002/03 2003/04

Red 2 0

Amber 15 11

Green 8 9

In addition to the overall annual review of performance, the fire policy has also been reviewed during the course of the last six months.

3.3.2

Access to public buildings is the only risk area to have increased following the recent management review noted above. This changed position does not reflect a worsened performance but is a reflection that expectations have risen, and that it will be possible to bring prosecutions under part III of the DDA from October 2004. Good progress has been made in implementing the Council's access auditing strategy and all public buildings will have been audited by the end of this year. Improvement projects are being implemented in parallel in order to demonstrate tangible evidence of improvements.

3.3.3

The Council has a national reputation for excellent practice in this area with Best Value Performance Indicator results placing us in the top quartile of authorities. The target for the immediate future is to maintain this position rather than to increase the percentage of buildings accessible to disabled people. Given rising expectations and standards this will prove to be a challenge.

3.4

To maximise the value of particular levels of investment through effective procurement regimes

3.4.1

Cabinet approved the establishment of framework agreements for major schemes/programmes in May together with agreement to develop similar arrangements for small and medium size companies. So far the major framework has been applied to the Nursing Care Investment Programme and 16 other projects. Performance indicators will form part of the evaluation criteria including those relating to the number of projects completed on time and cost. Following the establishment of frameworks the next major task is to start to create key supply chains with the priority being given to mechanical and electrical contractors.

3.4.2

The report on procurement, elsewhere on the agenda, identifies:

· £20.6 m procured through frameworks

· £12.6 m partnership and negotiated work

· £2.5 m best value tender selection

· £10.8 m negotiated work

3.5

To establish management partnership arrangements with schools and to maximise the opportunity for Government funding

3.5.1

Since 2000/01 schools have received over £35m by way of devolved capital to address priorities identified in their individual Asset Management Plans (AMP). Through its regular management partnership meetings with schools the opportunity is taken to plan future work to address AMP priorities. There is evidence to suggest that significant amounts of money are being retained by schools, some as contributions to future capital projects but with much of the devolved capital still to be committed. The department continues to work with schools in order to ensure that opportunities to jointly fund condition related improvements are identified and that the necessary resources to support schools are available. The amount of devolved capital that remains uncommitted suggests that the department will need to plan its resources over the next few years to match demand from schools.

3.5.2

As noted earlier in the report, customer feedback remains very positive. The most frequent complaints relate to the performance of building contractors rather than service delivery. Complaints about engineering services have reduced significantly since the new term contracts were established. Further research with schools is planned in order to ensure the service continues to develop.

3.6

To ensure that sustainability is at the heart of property management policies

3.6.1

A report elsewhere on the agenda refers to issues associated with Green Roof Technology following a Notice of Motion by Councillor Bill Wheeler.

3.6.2

Following approval by the Executive Member for Policy and Resources in November 2002 to an annual allocation of capital repairs funding towards a number of initiatives to reduce energy and water consumption a rolling programme to address the following has begun:

· installation of modern heating controls

· conversion of oil fired plant to gas

· replacement of leaking mains water supplies

· installation of new taps and water supplies

3.6.3

Energy consumption is a BVPI and the first return was completed for 2002/3. A report is due to be considered by Cabinet on 28 October which confirms that the overall target to reduce energy consumption by 10% against the base year of 1999/2000 and set by the Corporate Sustainable Development Strategy has been achieved.

3.6.4

Property services is positively embracing sustainability and a multi-discipline management group has been established. This group will be responsible for identifying, managing and evaluating sustainability initiatives across the built estate, identifying ways of reducing carbon emissions and researching alternative energy forms. Capital projects will continue to be identified as pilot projects and initiatives evaluated and incorporated as appropriate into future projects.

4

Conclusion

The interim review of our performance objectives and indicators, suggests that real progress is being made. The effectiveness of the County Council's approach across its estate is challenging. The key issue is to sustain current (or improved) levels of investment over several years. The improved performance related to Health and Safety Management is also significant.

Recommendation(s)

That:

The Panel advises to the Executive Member for Policy and Resources

1

That progress against the key objectives of the strategy be endorsed.

2

That performance against the strategy and performance indicators be reviewed at the end of the financial year.

Performance Indicator

Performance for

2002/03

Current performance

2003/04

Target performance

2003/04

% of total work Planned

Reactive

79

21

Planned 75

Reactive 25

Planned 77%

Reactive 23%

Risk Management performance for the built estate

Red 8%

Amber 60%

Green 32%

Red 0%

Amber 50%

Green 50%

Red 4%

Amber 42%

Green 54%

Customer complaints

145

19

Reduce by 10%

Customer compliments

158

76

Increase by 10%

Management Partnership meetings held

534

80%

575

Response times to letters and e-mails (based on sample exercise)

7 days

7-10 days

Less than 10 days

Creditor payments made within 30 days

80%

90%

Access for Disabled (BVPI)

70%

70%

70%

Departmental performance for

customer feedback

Excellent 49%

Good 41%

Excellent 54%

Good 36%

Excellent

92%

Good

Annual Management cost per sq meter (Operational Property)

£3.55 m²

£3.55 m²

£3.40 m²

Cost predictability - percentage of projects completed within +/- 5% of approved cost

100%

100%

100%

Time predictability - percentage of projects completed within +/- 5% of approved programme

56%

33%

80%

Contractor performance -

customer feedback

Excellent 33%

Good 47%

Excellent 35%

Good 47%

Excellent

82%

Good

Total number of safety incidents reported relating to contractors

68

25

Reduce by 5%

Engineering Term Contract

Performance - % of response times within 4 hours

88%

N/a

90%

Engineering Term Contract

Performance - % of total

servicing programme achieved

91%

N/a

95%

Maintenance costs per m²

£10.26 m²

N/a

£10.26 m²

Performance Indicator

Performance for

2002/03

Current performance

2003/04

Target performance

2003/04

Energy Consumption

£3.94per sm

N/a

Being developed as part of the Sustainable Development Corporate Action Plan

Water Consumption

£0.34 per cm

N/a

Ditto

Carbon Dioxide Emissions

0.045 tonnes per cm

N/a

Ditto