MAIDSTONE BOROUGH COUNCIL
COBTREE MANOR ESTATE COMMITTEE
11TH July 2012
REPORT OF THE COBTREE OFFICER
Report prepared by Joanna Joyce
1. ASSET MANAGEMENT PLAN – 2011/14
1.1 Issue for Decision
1.1.1 To approve the draft Asset Management Plan for the period 2011/14.
1.2 Recommendation of the Cobtree Officer
1.2.1 It is recommended that;
1.2.1.1 The Asset Management Plan attached as Appendix A to this report be endorsed
and
1.2.1.2 all future asset management reports are brought to the Committee in the autumn of the relevant report cycle.
1.3 Reasons for Recommendation
1.3.2
It
is recommended that the data from the 2012 review be brought before the
Committee in the autumn and that future asset management reports are scheduled
for the autumn to enable up to date data to be included.
1.3.3 Set out in the attached Appendix is the draft plan for the period 2011/14 (updated in 2012). The plan is presented for Members consideration.
1.4 Alternative Action and why not Recommended
1.4.1 The alternative course of action is to leave the Asset Management Plan within the Council’s overall plan, but this is not recommended as it does not sufficiently emphasise the distinct separation of consideration which must be given to charity matters relating to the Cobtree Manor Estate.
1.4.2
In
addition Asset Management reports could continue to be brought in the summer. This
is not recommended as the data will always be slightly out of date.
1.5 Impact on Charity Objects
1.5.1 The Asset Management Plan assists the Charity to focus on the appropriate use of its assets to achieve its stated objectives.
1.6 Risk Management
1.6.1 Inappropriate management of the Charity’s assets may risk a challenge from the Charity Commission.
1.7 Other Implications
1.7.1
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Financial |
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Staffing |
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Legal |
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Social Inclusion |
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Considerations for Disabled Persons |
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Environmental/Sustainable Development |
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Community Safety |
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Human Rights Act |
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Procurement |
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1.7.2 Cobtree Golf Course and Cobtree Manor Park both have property maintenance budgets and regular works are planned within these. Any works that are unusual or out of the jurisdiction of officers will be brought before the Cobtree Manor Estate Committee for prior approval.
Background Documents
Maidstone Borough Council Asset Management Plan.
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NO REPORT WILL BE ACCEPTED WITHOUT THIS BOX BEING COMPLETED
Is this a Key Decision? Yes No
If yes, when did it appear in the Forward Plan? _______________________
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Reason for Urgency
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Appendix A
THE CHARITY KNOWN AS COBTREE MANOR ESTATE
ASSET MANAGEMENT PLAN
2011 – 2014
(2012 update)
INTRODUCTION
1.1
The Charity
known as Cobtree Manor Estate (“the charity”) holds land and buildings under
the terms of its 1971 lease from the Cobtree Charity Trust Limited for the
benefit of local residents and other members of the general public, and
primarily for use as public open space.
1.2
The property
assets which it holds are defined for the purpose of this plan as the buildings
and other structures, and various parcels of land on the former Cobtree Estate;
these to include items of building related plant and equipment where
appropriate. The Asset management plan is reviewed every 3 years by the
Property section of Maidstone Borough Council.
1.3
The object of
this Asset Management Plan is to provide the Charity with:
(a) A clear definition of operational responsibility for the management of its assets in line with the policies and strategic direction of the Charity.
(b) An assurance that the assets are suitable for the purposes for which they are required.
(c)
A performance
measurement system which relates to the objects of the Charity.
2.
CONTEXT
2.1
The management
of the Cobtree Manor Estate (“the Estate”) is the essential reason for the
existence of the Charity. However, there are a number of properties on the
Estate which do not directly support the objects of the Charity, but which form
part of the portfolio of assets generating a level of revenue income.
2.2
Under the terms
of its 1971 Lease the Charity exists essentially to provide public open space
as defined by the Open Spaces Act 1906. A proportion of the Estate was
appropriated in 1975 for use as a public Pay and Play Golf Course. However,
both elements of the Estate fall under the auspices of the Charity and are
managed as a single entity.
2.3
The Maidstone
Borough Council, acting in its capacity as a local authority, contributed
towards the development of the golf course through the purchase of additional
land and additional funding; it thus retains a direct interest in the operation
of the golf course proportionate to the amount of land it owns (identified as a
ratio of 2/9’s:7/9’s).
2.4
The Charity has
completed a review of options for the future development of the Estate designed
to increase the number of visitors to the site consistent with the basic
objects of the Charity; this will result in the management of some assets
changing over the period of this plan when the necessary financial resources
become available and the facilities are developed.
3.
STRATEGIC
OBJECTIVES
3.1
The Strategic
Objectives of the Charity are those defined in the lease of the Cobtree Estate
dated 13th July 1971 from the Cobtree Charity Trust Limited; namely:
(a)
“To hold Cobtree
Manor and Cobtree Manor Estate for the benefit of the inhabitants of Maidstone
and other members of the general public in one or other or all of the following
ways:
(a)
By maintaining
the Cobtree Manor Estate as an open space as defined by the Open Spaces Act
1906 and if the lessees think fit providing thereat facilities for organised
games and other sports”.
(b)
With the consent
of …[Cobtree Charity Trust Limited and Kent County Council]… in such other way
for the benefit of the inhabitants of Maidstone and other members of the
general public as the Council shall from time to time think appropriate.”
3.2
The strategic
objective of this Asset Management Plan is to ensure that:
(a)
Where
appropriate, the asset portfolio supports the objects of the charity; and
(b)
The assets are
demonstrably managed in the most economic, efficient and effective manner.
3.3
The asset
management plan seeks to put into place procedures and monitoring arrangements
to ensure that the available assets are:
(a)
In good
condition to provide an appropriate experience for the visitor and user, and
bearing in mind general obligations under health and safety legislation;
(b)
Suitable for the
purpose for which they are being retained;
(c)
Maintained to
minimise reactive maintenance through the implementation of judicious planned
maintenance arrangements; and
(d)
Managed to
mitigate the impact on climate change.
3.4
All
non-operational assets are viewed in the context of:
(a)
Making the
maximum contribution to the revenue budget through rental income; and/or
(b)
Making a
positive contribution to the social wellbeing of the community through its use
by voluntary groups, charitable organisations or small businesses.
3.5
Should the
situation arise where assets are considered for acquisition they should
contribute to the achievement of the Charity’s objects.
4.
ORGANISATIONAL
AND FINANCIAL ARRANGEMENTS
4.1
All decisions
relating to the management of the Charity’s assets must be considered by the
Cobtree Manor Estate Charity Committee acting for the Maidstone Borough Council
in its capacity as Corporate Trustee.
4.2
The appointed
Cobtree Officer is responsible to the Committee for:
(a)
Developing the
Asset Management Plan in consultation with appropriate property professionals
within the Maidstone Borough Council;
(b)
Ensuring that
the plan and its implementation adhere to the objects and clearly stated
policies of the Charity;
(c)
Ensuring that
the plan is co-ordinated with the medium term financial strategy of the
Charity; and
(d)
Reporting to the
Committee at least annually on the performance of the property portfolio
measured against the agreed indicators.
4.3
The Corporate
Property Officer of the Maidstone Borough Council will be responsible for
providing appropriate advice and guidance to the Committee on the development
and implementation of the Asset Management Plan.
4.4
The Corporate
Property Officer of the Maidstone Borough Council is responsible for:
(a)
Implementing the
agreed works identified within the Asset Management Plan, and for which
financial provision is made within the Charity estimates; and
(b)
Providing
estimates for future works and budgetary control to ensure that works are
completed within the allocated budget.
4.4.2
Land and
buildings will be re-valued on a five-yearly cycle. No depreciation will be
provided on the buildings as this is considered immaterial due to the estimated
useful life and level of residual value. Impairment will be provided as
necessary, and impairment reviews will be carried out when there are any
indicators of impairment. The valuation will use an assessed market value;
meaning that the valuation will be arrived at by reference to the rental income
where appropriate; as in the case of the golf course clubhouse, for example.
The regular reviews will be conducted by the Council’s Corporate Property Officer
using the CIPFA/RICS method of valuation.
5.
THE CURRENT
PORTFOLIO
5.1
A summary of the
value of the Charity’s property assets as at 31st March 2012
(excluding fixtures and fittings, plant and machinery) is shown at Appendix
I.
5.2
The Charity’s
portfolio of Assets was acquired under the July 1971 lease from the Cobtree
Charity Trust Limited. Although unregistered at the time of acquisition all
land and property on the Estate is now registered with the Land Registry.
5.3
The schedule of
assets is shown in Appendix II.
5.4
The Maidstone
Borough Council, primarily acting in its capacity as the local authority,
undertook a condition survey of all its assets in 1999, including those of the
Charity, and this was updated in 2002. This condition survey is updated
annually by reference to the property maintenance programme and this helps to
determine the planned maintenance requirements for future years. A full review
of the condition survey for each property is carried out every 5 years on a
rolling programme. The Charity’s assets are included in the Council’s overall
portfolio but are shown separately.
5.5
Similarly,
Maidstone Borough Council’s Property Management System is used to maintain a
register of its assets, including those of the Charity. The monitoring system
allows condition surveys to be recorded, direct expenditure to be monitored,
plant and equipment to be listed; in this way progress on contracted works can
be monitored more accurately. The system includes supplemental information
regarding plant and equipment renewal dates, survey results for asbestos and
legionella and, as appropriate, entries from the contaminated land register.
The objective is to ensure that a more co-ordinated approach is given to the
management of the Council’s assets and, more importantly in this context, to
those of the Charity.
6.
SERVICE DELIVERY
& ACCOMMODATION NEEDS
6.1
The Charity is
committed to making the best use of its available resources within the context
of its charitable objects. A key to achieving this is a more strategic
approach to the identification of priorities and the associated deployment of
resources.
6.2
A review
programme is used to challenge the use of each asset and to focus on improving
the facilities provided.
6.3
This approach
includes an assessment of the suitability of each asset for its agreed purpose,
a condition survey and a review of expenditure on maintenance and running
costs. Where appropriate there is an assessment of the potential cost of
bringing each asset up to an appropriate standard for its intended use.
6.4
The assessment helps identify
investment priorities by comparing each asset’s suitability for its current use
against the amount of investment needed to bring the building to an appropriate
standard:
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S U I T A B I L I T Y
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High
Low |
Low priority for investment.
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Target for investment + programme of energy reduction measures. |
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Consider for re-use or possible disposal.
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Consider for disposal |
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Low High |
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INVESTMENT NEED |
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6.5
In assessing the
suitability of each asset for its current use it is suggested that, where
appropriate, the views of the public or specific user groups be taken into
consideration.
6.6
It is important
that when considering any investment proposals the whole life-cycle of the
asset be taken into consideration.
6.7
The future use
of assets and the long term planning of capital expenditure will need to be
considered in association with, and thus modified by, the development proposals
which the Charity as now considered for the Estate.
7.
NON-OPERATIONAL
AND INVESTMENT PROPERTY
7.1
No property
assets are currently held for purely investment purposes. However, a number of
dwellings which are found on the Estate are leased on a medium term basis, with
further consideration required on their long term use when the existing leases
expire.
8.
GOVERNMENT
POLICY AND STATUTORY RESPONSIBILITIES
8.1
There are a
number of governmental policies and other statutory responsibilities placed on
the management of the Charity’s assets; these are set out below:
8.2
The Disability
Discrimination Act 1995 places an obligation on service providers to adjust
service delivery and the physical condition of their premises to overcome
access barriers. Although adjustments have been made, the situation will be
monitored to determine whether further works are required.
8.3
The Control of
Asbestos at Work Act 2000 places an obligation on responsible bodies to plan
for the management of asbestos in its premises.
A survey was carried out with only very minor instances of asbestos found; no
immediate works were required.
8.4
The
Environmental Protection Act 1990 requires local authorities to inspect its
area for contaminated land and to have a strategy for identifying, classifying
and remediation of such land.
No concerns have been raised by either Maidstone Borough Council or Tonbridge
and Malling Borough Council; although some former quarrying and industrial
activities took place on adjoining land.
8.5
The Control of
Substances Hazardous to Health Regulations 2002 requires service operators to
adopt policies for the control and management of legionella in water systems.
The Golf Course clubhouse remains the only area of concern. Remediation works
were carried out in the financial year 2006-07 and the situation continues to
be monitored.
8.6
The Regulatory
Reform (Fire Safety) Order 2005 came into effect in October 2006 and replaced
over 70 pieces of fire safety law. The Order applies to all non-domestic
premises in England and Wales. Under the Order, the Council is responsible for
carrying out a fire safety risk assessment of its premises and implementing and
maintaining a fire management plan. These were last carried out in 2010 and are
reviewed annually.
9.
PERFORMANCE
MANAGEMENT
9.1
The Council as
local authority collects property performance data for comparative purposes.
Although not entirely appropriate for the Charity’s purpose, the data is useful
in giving comparison over time.
10.
THE ENVIRONMENT
10.1
The Council
acting as local authority is pursuing a Climate Change Plan. Although it is
not necessary for the Charity to do so, specific aspects may be worthy of
consideration which relate to the better management of the Charity’s assets and
contribute to a wider environmental benefit.
10.2
In adopting the
intent of a Climate Change Plan the Charity seeks to reduce the environmental
impact of activities through pursuing energy efficiency in the design,
maintenance and management of its buildings, pursuing energy conservation
measures and the use of renewal energy. For example, energy from a renewable
source is currently used at the Cobtree Manor Park Golf Course Clubhouse.
10.3
The Golf Course
clubhouse at Cobtree is also included in the Council’s energy audit programme.
Improvements, such as water conservation and improved lighting, have been
identified and will be addressed through the future planned maintenance
programmes.
APPENDICES
(i)
Summary of Asset
Values
(ii)
Schedule of
Assets
APPENDIX I
SUMMARY OF ASSET VALUES
Net book Values as at 31 – 03 – 2012
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Operational |
Non- operational |
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Code |
Property |
Land & Buildings |
Infrastructure |
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B32 |
Cobtree Golf Course |
1,044,836 |
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- |
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B33 |
Cobtree Rural Park - |
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- Garden Cottage |
97,273 |
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- 2 Stream Cottages |
98,980 |
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- 3 Stream Cottages |
100,872 |
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- 4 Stream Cottages |
94,180 |
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Total: |
1,436,141 |
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APPENDIX II
Schedule of Assets
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Description: |
Current Use:
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1 |
Westfield Wood (part) |
13.3 acres of woodland sub-leased to the Kent Wildlife Trust to be used for woodland management and associated educational purposes. Lease dated 18 January 1977 for 5 years and year to year thereafter.
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2 |
Tyland Farm |
2.6 acres of land subleased to the Kent Wildlife Trust for use as a headquarters building and study/visitor centre. Leased dated 6 July 1992 for 125 years.
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3 |
Cobtree Manor Park Golf Course |
88.31 acres of land Appropriated under Section 120 of the Local Government Act 1972 for the purpose of providing a municipal pay and play golf course and associated facilities.
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4 |
Cobtree Manor Park |
50.82 acres of land used as a public open space with extensive and varied planting of trees and shrubs; includes a picnic area, car parking and toilet facilities.
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5 |
Cobtree Manor House |
House and associated buildings on 2.775 acres of land sold leasehold as private dwelling on 31 July 2000. Enfranchisement of the freehold completed August 2004. Garage and stables owned separately and redeveloped as cottages restricted for holiday lets use only.
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6 |
Forstal Villa |
Property and garden on 0.2459 acres of land sold leasehold on 16 February 1987 for a period of 125 years from 1 April 1986 under assumed application of the “Right to Buy” legislation. Lease subsequently extended to remainder of Council’s term minus 5 days.
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7 |
Water Bore Hole |
0.5 acres of land sub-leased to the Mid Kent Water company for water extraction purposes. Leased dated 6 January 1995 for 125 years.
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8 |
Travis Perkins Land |
1.35 acres of land sub-leased to Travis Perkins Limited as an extension to an area used for the storage of materials. Lease dated 14 July 1993 till 9 July 2970.
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9 |
Museum of Kent Life |
23.35 acres of land sub-leased to the Kent County Council and further leased to the Cobtree Museum Trust for Museum purposes. Leased dated 1 April 1992 for 125 years. Further sub-lease agreed to Continuum for period of 25 years from 1 February 2008.
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10 |
Museum of Kent Life – North Paddock |
23.44 acres of land sub-leased in part to the Kent County Council and further leased to the Cobtree Museum Trust for 125 years from 31 March 1994 for the future development of Museum exhibits. Included in further sub-lease to Continuum
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11 |
Land North of Forstal Road |
4.819 acres of unused land substantially affected by the M20 road widening scheme. Let under a two-year grazing tenancy agreement, the current agreement expires 3/6/2013.
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12 |
Chatham Lodge |
Property in derelict condition on 2.889 acres of land badly affected by the M20 road widening scheme. Sold freehold to adjoining land owner on 27 November 2008.
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13 |
1 Stream Cottages |
0.2616 acres of land and house sold leasehold remainder of Council’s term minus 5 days from 27 August 2003.
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14 |
2 Stream Cottages |
0.1423 acres of land and house subleased to occupant for 22 years from 1 April 1995.
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15 |
3 Stream Cottages |
0.1435 acres of land and house subleased to occupant for 22 years from 8 December 1998.
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16 |
4 Stream Cottages |
0.3437 acres of land and house subleased to occupant for 22 years from 12 December 1998. (the tenant is due to surrender the lease as of July 2012).
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17 |
1 White Cottage |
0.2184 acres of land and house sold leasehold for remainder of Council’s term minus 5 days from 9 December 2002.
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18 |
2 White Cottages |
0.32 acres of land and house sold leasehold at auction for remainder of Council’s term minus 5 days from 14 March 2002.
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19 |
Gate Lodge, Forstal Road |
0.147 acres of land and house sold at auction on 21 September 2007.
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20 |
Garden Lodge |
0.2723 acres of land and cottage sublease for residential purposes from 6 February 1998 for 22 years.
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21 |
Sandling Farm |
House and land subleased to the Kent County Council and further lease to the Cobtree Museum of Kent Life Trust. Included in further sub-lease to Continuum.
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22 |
Tyland Farm House |
0.2905 acres of land and house subleased to Kent Wildlife Trust co-terminus with lease on Tyland Barn.
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23 |
Keepers Cottage |
Property demolished in 1995 to facilitate the restructuring of the 18-hole golf course following amendments resulting from the M20 road-widening scheme.
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24 |
Catering Kiosk |
Current lease to Marion Wyatt, lease expires 31/5/2014.
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25 |
Elephant House |
Currently un-used.
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26
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Llama House |
Currently available as informal picnic shelter for park users.
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27 |
Golf Course Clubhouse |
Use of premises included in Golf management contract.
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28 |
Golf Course Grounds Maintenance Building |
Occupation of premises included in Golf management contract.
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29 |
Golf Course Clubhouse Flat |
Included in Golf Management Contract to facilitate on-site presence. |