ASSET MANAGEMENT PLAN

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ASSET

MANAGEMENT

PLAN

To be a world class organisation www.mawwfire.gov.uk

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This Asset Management Plan (AMP) is a living document and will develop on a five-year planning cycle, being reviewed and updated annually. It defines the good practice aims, objectives and principles for the Fire Authority’s use of assets. The AMP does not exist in isolation but is set within the context provided by other strategic plans - the Medium-Term Financial Plan, Corporate 5 year Plan and individual Service Strategies are inextricably linked to the Asset Management Plan through the corporate objectives and priorities of the organization, culminating each year in the Annual Improvement Plan - the resulting annual actions agreed being budgeted for through the Revenue and Capital budgets. The AMP is designed to support and integrate with these other plans by reflecting how the portfolio and its management need to change over time to ensure the service’s priorities are delivered, and in line with the consultation that has taken place with stakeholders. In recent years there has been increasing pressure on Fire and Rescue Authorities, together with all public bodies to put in place proper asset management and capital planning decision making processes and for a full audit of such systems to be arranged. It is expected that the need for asset management plans will be rigorously pursued by auditors seeking evidence of good value from all investment decisions. An integrated asset management and capital planning framework will be a key

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principle in ensuring all investment decisions are considered within an overall systematic appraisal system that includes the use of business cases and option appraisal. Good asset management planning can assist in contributing to the achievement of sustainable development and continuous improvement, which are key themes in the Local Government Measure. A robust approach to asset management will therefore provide significant support in achieving the Fire Authority’s strategic aims.

This Asset Management Plan supports the delivery of high quality services and has a clear link to the priorities as outlined in the Fire Authority’s Corporate Plan 2010-15. The preparation of this plan involved senior professional managers from all departments, right across the organization. At its heart, Asset Management Planning seeks to continually assess and improve the Authority’s asset base as part of the delivery of improved services.

Objectives

The following are the objectives of the development of an Annual Asset Management Plan:

 To provide accurate information on the asset database, backed by benchmarking, which will identify where we fall short in respect of standards and which will also inform the Medium-Term Financial Plan.

 To develop and secure a corporate approach to the use, management, (including maintenance and improvements), procurement and ownership of assets and resources

 To develop a strong framework for corporate asset management

 To oversee and implement regular reviews of assets and resources and in turn, report back recommendations

 To identify and secure efficiency gains and savings through the strategic management and use of assets, and increase the cost effectiveness of the asset portfolio

 To ensure that asset management information is communicated to all relevant staff and stakeholders, including Members of the Fire Authority, Senior Managers and the Public

 To report on the performance of the asset base on a regular basis

 To form clear links between the Asset Management, Medium Term Financial Plan and the Corporate Plan 2010-15

 To determine where the Authority should make its investment decisions  To promote innovation and development in asset management

 To listen and respond to asset users

Asset Management Planning will assist the Service in targeting and utilising resources effectively and investing appropriately. Asset management is high on the Welsh Government’s Efficiencies and Innovations agenda and the better management of assets is a key element in the drive for efficiency gains.

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How assets will be managed

To achieve these objectives, it is proposed that the Fire Authority manages the use of assets in a manner that adheres to the following guiding principles:

To manage assets strategically:

 To provide effective solutions for service delivery using assets in a way that promotes not constrains service delivery

 Establish five year Service Asset Management Plans for Estates, Transport, Operations and ICT, which address the needs of the service

To release value and minimise cost:

 Challenge and review the manner of use of assets

 Periodically review all assets to identify appropriate assets for alternative use or disposal

To provide accurate data for informed decision-making:  Develop improved information databases

 Ensure data is actively managed to remain accurate  Establish protocols for the responsibility of updating data

 Ensure appropriate technical resources are available to carry out surveys to update data

This Corporate Asset Management Plan will lay out the planning process for the optimization of the deployment and utilisation of Land, Buildings, Transport, ICT and Operational assets. Much of the day-to-day information for the plan will be contained in asset registers, land terriers and inventories.

Future Development

Whilst the Asset Management Plan is complete in regards to the information we currently hold, there is the prospect of further development through the formulation of the Estates, Transport/Operations and ICT Strategies. The baseline for these will be delivered shortly, however these will continually be reviewed and updated, with changes reflected in the AMP. These Strategies will also have significant implications on the Medium Term Financial Plan and in this way the organization will ensure that a fully integrated approach to Asset Management will be adopted. A more detailed Asset Management Plan for each area will be a second stage development when the individual strategies are clear. These will take account of procurement profiling, budget planning, user requirements, functionality, risk planning, financial impact and sustainability. The organization will aim to be in a better position to plan budgets, determine acquisition and disposal strategies and make decisions about how we can improve our services. We will aim to develop our strategies together with other Fire and Rescue Services and other public bodies where applicable so that joint working, shared facilities and collaboration is the norm. Developing sustainable communities and improved resource efficiency through better or shared use of accommodation and improved integration of public sector agencies is a key theme for the future approach to service delivery. The Asset Management Plan is set specifically in the context of the Corporate Planning process to ensure that all of the extensive consultation carried out by Mid and West Wales FRS with the community is reflected within it.

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The AMP therefore will in future encompass the following:-

 A review of the existing assets – Condition/Suitability/Sufficiency  A review of the existing service need – Operational and Non

operational

 A review of the future service needs – Operational and Non operational

 The development of financial models to meet the needs of the Service with available asset stock, through the Capital Strategy  The evaluation of alternative funding options and the identification

of the preferred option

 The establishment of the economic and business case for the preferred option and the seeking of appropriate approval for funding

 Implementation programme

The implementation and revision of the Corporate Asset Management Plan will take place at the Strategic Improvement Implementation Group where all relevant departments are represented. Sharepoint will be the electronic information system that will bring the necessary information together and will be accessible by all staff. Individual Estates, Transport/Operational Equipment and ICT systems are being developed to ensure completeness. The Director of Resources will be responsible for the overall management of the Asset Management Plan

Each of the Plan areas will develop measurements for the levels of performance achieved in relation to the use and maintenance of Fire Authority assets. The objective is to optimise the whole life business impact of costs, performance and risk exposures (associated with the availability, efficiency, quality, longevity and regulatory/safety/environmental compliance) of the organisation’s physical assets and thus optimize performance in the delivery of services and objectives

We will ensure that asset management planning is fully linked to service planning, capital planning and ultimately financial planning in as seamless a way as possible. The resulting integration will lead to more effective use of resources, greater transparency in decisions taken and will support new and more efficient ways of providing services. This will ensure that scarce resources are directed at the areas of highest priority and greatest need.

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6 CHAPTER 2.0 INTRODUCTION TO ASSET MANAGEMENT PLAN

2.1 ESTATES

The Property Asset Management Plan is a structured process that seeks to ensure that the land and building asset base of MAWWFRS is managed in the best corporate interests of the organisation. It seeks to align the asset base with the MAWWFRS corporate goals and objectives.

The Property Asset Management Plan embodies the MAWWFRS’s asset strategy, its structure and governance, roles and responsibilities, data and performance management arrangements and performance measurement information.

The Plan (PAMP) will provide more formal and effective management of the property portfolio which in turn will facilitate further improvements of

resources, deliver better value for money, and ultimately improved service delivery to the community.

Property assets have three features that place primacy on their proper management:-

 they are expensive – both in terms of their capital value and annual costs of upkeep;

 they need to be carefully managed over their lives to ensure best value;

 careful consideration and time are needed to determine property needs, procurement and construction.

In the context of MAWWFRS’s ambition of moving towards excellence, the PAMP will play a key role in terms of use of resources and other defined inter-agency performance indicators.

This Property Asset Management Plan has been prepared by the Estates Department and will be updated on an annual basis.

Ensuring that Corporate Property is used to fully support service needs in the most efficient way in embracing new technologies and innovative solutions to provide a sustainable property portfolio.

The PAMP does not exist in isolation but is part of a suite of plans that contribute to the MAWWFRS Strategic Asset Plan and its stated vision. The PAMP is influenced by these other plans and seeks to support and integrate with them to ensure that the Service is provided with the most appropriate solutions to meet the current and future community safety needs of the organisation.

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7 Key Development Activities from the Corporate Plan that apply to the Estates Management Department

Objective Estates Role

To save lives and protect communities

Managing the environmental impact of our properties within the community and ensuring our properties are fully compliant with relevant legislation

To be trusted and respected by our communities

By maintaining our buildings so that they are accessible to members of the community, promoting fire service provision in fit for purpose buildings

To be seen as more than an emergency service

Making sure buildings are accessible and providing additional services such as battery recycling and community safety activities

To match our resources to priorities

Adopting best practice indicators, prioritising repairs and maintenance of buildings and undertaking property and facilities management reviews

To manage within budget Ensuring that money is spent wisely on building priorities To seek out and utilise

alternative resources

In conjunction with the Sustainability Manager, seeking alternative funding for initiatives, such as renewable energy, waste management services and capital works To make efficiencies year

on year

In conjunction with the Sustainability Manager, setting benchmarks and targets for efficient properties

To manage people effectively

Monitoring the Estates management team’s performance and developing them to their full potential

To fully develop risk reduction planning

Identifying risks, effective control measures and identification of opportunities for property and facilities management services improvement in conjunction with the Fire Authority Risk Reduction Plan

To develop effective partnership working

Seeking out opportunities for collaborative working, sharing of resources and joint procurement initiatives To develop our workforce

into effective and empowered people

Ensuring that the Estates Department team have the right skills, receive adequate training and are responsible for their actions

2.2 ICT

The ICT Asset Management Plan is an element of the Organisation’s strategic approach to asset management which also embraces Estates, Transport and some Operational elements. The purpose of this ICT Asset Management Plan is to identify the approach to and the framework of ICT Asset Management within the Service.

ICT Asset Management is carried out by the ICT Department on behalf of the Service and is undertaken in line with ITIL (Information Technology

Infrastructure Library) recommendations.

ITIL is a set of government developed best practices and processes for the management of ICT services and support, including the whole lifecycle of ICT assets. There are four phases to the lifecycle of ICT assets namely planning, acquisition, operation and disposal.

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8 Additionally, ICT asset management has to follow five key principles:

 Effective governance to control and manage the ICT assets.

 Accountability toward ICT Asset condition, use and performance.

 ICT Asset planning decisions based upon formal evaluation of the full lifecycle costs, benefits, procurement options and risk of ownership.

 ICT Asset Management decision making that support the organisation’s strategic planning process.

 Disposal decisions that consider environment impact and sustainability initiatives such as refurbishment and reuse

The ICT function is committed to playing an important role within the organisation and supporting asset management activities within any limits imposed by the resources available to it. This document compliments a number of other ICT specific documents and asset data repositories which include the Service ICT Strategy (2012-17), Configuration Management Database (CMDB) and the ICT Service Catalogue.

2.3 TRANSPORT/ORM

This Asset Management Plan has been developed as a strategic tool to allow the management of Mid and West Wales Fire and Rescue Service

(MAWWFRS) Transport and Equipment assets. It is designed to provide an overview of the life cycle of each asset and identify the capital investment required for any given year.

The Transport Department’s main function is the supply and maintenance of vehicles and engine powered equipment to meet individual needs throughout the Service. The dedicated workshops provide servicing, repair and

maintenance. The workshops are located at Earlswood, Builth Wells,

Aberystwyth, Carmarthen and Haverfordwest, each has a dedicated team for the management of vehicles and appliances used within Mid & West Wales Fire and Rescue Service.

The Operational Risk Management Department (ORM) is based in Service Head Quarters, Carmarthen. ORM are responsible for managing the running of service contracts that have been awarded to outside businesses. The

department holds the lifting equipment register and schedules the testing of equipment by outside agencies. When the need for new equipment is identified ORM department will develop the specification for the procurement department to work from. They will coordinate the training of both maintenance staff and operational staff and provide an appliance, equipment and technical (AET) note for the new equipment.

Future Developments

MAWWFRS is progressing towards creating a comprehensive system for

marking and tracking all transport and equipment assets within the Service. The vision is to be able to link each asset to the test certificate and related

documentation electronically.

Such a system will provide Asset Managers with greater ability to scrutinise the day to day use and maintenance of any identified asset.

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9 CHAPTER 3.0 LEGISLATION

When planning for the provision of property the following legislative requirements will be met: -

 Health and Safety at Work etc Act 1974 (HASAW Act)

 Management of Health and Safety at Work Regulations 1999

 Workplace (Health, Safety and Welfare) Regulations 1992

 Personal Protective Equipment at Work Regulation 1992

 Provision and Use of Work Equipment Regulations 1998

 Manual Handling Operations Regulations 1992

 The Control of Asbestos at Work Regulations 2006

 The Fire and Rescue Services Act (2004)

 Water Resources Act (1991)

 Environmental Protection Act (1990)

 Clean Neighbourhoods and Environmental Act (2005)

 Hazardous Waste Regulations (2005)

 Landfill Regulations (2002)

 EU Directive on the Energy Performance of Buildings

 The Building Act (1984) and Building Regulations (2000)

 Fire Safety Law (2006)

 The Regulatory Reform (Fire Safety) Order 2005 (FSO)

 Legionnaires' disease: The control of Legionella bacteria in water systems (L8)

 Managing health and safety in construction (CDM 2007)

 All relevant procurement legislation

The above list of Acts and Regulations is not exhaustive, and by the very nature of the environment in which MAWWFRS operates, there are various legislative requirements that cut across other sections of the Authority. To adhere to legislation the MAWWFRS employs a variety of procedures to ensure that its property and equipment complies with regulations.

Adopted current procedures to satisfy the legal requirements and also provide a good practice methodology are: -

 Five-yearly condition surveys and yearly site inspections and visits

 Defect reporting system

 Preventative maintenance schedule

 Equipment inventory

 Property / Equipment repair and maintenance history

 Periodic testing regime for specific elements of a building

When planning for the provision of vehicles and equipment, the following legislative requirements will be met:

 The Road Assets (Construction and Use) Regulations 1986.  The Road Assets Lighting Regulations 1989.

 The Motor Assets (Driving Licences) Regulations 1999.  The Road Traffic Act 1991.

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10  The Road Assets (Registration & Licensing) Regulations 1971.

 The Health and Safety at Work Act.

 Provision and Use of Work Equipment Regulations 1998.

 The Management of Health and Safety at Work Regulations 1999.  The Control of Pollution (oil storage) (England) Regulations 2001.  The Fire and Rescue Services Act 2004.

 The European Procurement Regulations.  The CFOA Guidelines for Fleet Maintenance.  LOLER Compliance.

The list of Acts and Regulations is not exhaustive, and by the very nature of the environment in which MAWWFRS operates, there are various legislative requirements that cut across other sections of the Authority.

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11 CHAPTER 4.0 ESTATES ASSET MANAGEMENT PLAN

4.1 NATIONAL PROPERTY PERFORMANCE MANAGEMENT INITIATIVE The Department of Communities and Local Government supports best practice guidance on Property Asset Management Plans and it recommends public organisations adopt a series of property indicators as set out in the National Property Performance Management Initiative (NaPPMI).

In this context, the Service is currently arranging for the collating of data to enable the measuring and benchmarking of the Estates Department against these government indicators which broadly cover the following:-

 Condition and required maintenance

 Environmental issues and energy usage

 The suitability of buildings

 Accessibility to buildings

 The efficiency in utilising space

 Overall property costs

 Performance in delivering capital projects

The NaPPMI was not written with fire services in mind and at present there is a lack of benchmarking data available, but the situation is improving and we are working to improve the performance of the property portfolio against the indicators. The Welsh Government has shown initiative to assist Public Sector organisations in Wales develop in this area of benchmarking and organised a voluntary benchmarking study on behalf of public sector bodies in Wales during 2010. The study was based upon the value for money (VFM) indicators produced by the UK public sector Audit Agencies (including the Wales Audit Office).

The benchmarking study covered five areas: Estates, Finance, Human Resources, Information and Communications Technology and Procurement. This plan considers the value for money indicators for Estates and how

MAWWFRS can work towards developing data sets to enable comprehensive comparisons across the public sector property portfolio. The information collated and used in comparison will drive efficiencies and financial savings. The indicators that will form part of future action plans are listed below: -

PRIMARY INDICATORS

INDICATOR 1 Total property costs (management, occupancy and operational) per square metre.

INDICATOR 2 Total office accommodation (square metre) per staff full-time equivalents (FTE).

INDICATOR 3 Total property required maintenance as a percentage of average annual maintenance spend for the last three years

INDICATOR 4 Commissioner and user satisfaction index - a composite indicator compiled from the responses to a set of statements by commissioners and users

INDICATOR 5 Management practice indicator – the number of practices

that have been adopted by the organisation out of a possible total of 10.

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12 SECONDARY INDICATORS

INDICATOR 1 Cost of the organisation’s estates management function

a) per square metre.

b) as a percentage of organisational running costs.

INDICATOR 2 Total property occupancy/ownership costs (revenue) per square metre

INDICATOR 3 Total building operation (revenue) costs per square metre

INDICATOR 4 Percentage of property related capital projects within the last three years completed:

a) within time between design and construction

b) within time between construction and available for use c) the cost at (a) above is within +/- 5%

d) the cost at (b) above is within +/- 5%

INDICATOR 5 Space use efficiency:

a) Workstations per full-time equivalent staff (FTE) b) Area (square metres) per workstation

INDICATOR 6 Total annual energy consumption (kWh) per square metre

INDICATOR 7 Total annual water consumption (cubic metre) per square metre

INDICATOR 8 Total accommodation (square metre Net Internal Area) over total accommodation (square metre Gross Internal Area)

INDICATOR 9 The percentage of buildings which are used by the public in which all public areas are suitable for, and accessible to, disabled people.

Sustainability Reporting

In order to carry out its functions the Service has a comprehensive range of buildings and fleet of vehicles which present a potential impact on both our immediate and wider environment, on society and on the local economy. MAWWFRS Finance Department have for sometime supported the concept of embedding sustainability reporting into the annual statement of accounts and as a result of work carried out by “Accounting 4 Sustainability” and the

Treasury, the Head of Finance sought and received approval from the

Service’s Policy Board to develop this concept into practical reality, reporting progress to, and working with the Service’s Sustainability Manager.

The Accounting 4 Sustainability Model (illustrated below) aims to provide organisations with a simple approach to making the connection between strategic direction, financial performance and environmental, social, and governance considerations.

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13 Current work focuses on looking at the established sustainability and

environmental related data that is available and comparing this with the data required to influence the current strategy and to meet recommended reporting standards. This will potentially lead to a data gap which will have to be filled. When data sets are reasonably complete, realistic targets can be set and reported against in the annual accounts. The Estates team will continue to work closely with Finance and the Sustainability Manager to progress towards capturing the required data.

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14 4.2 PROPERTY PORTFOLIO

Property Description

MAWWFRS has an extensive and diverse property estate spread throughout Mid and West Wales.

In broad terms the portfolio is made up of:-

 81 buildings and drill towers containing over 28,987 m sq. of floor space

 These have a book value of £43.2M as at 1st April 2011 and land a value in the order of £5.6M as of that date

 An approved revenue Maintenance Budget in 2011-2012 of £1,886,186

 An approved minor works capital budgetin 2011 – 2012 of £400,000. Further capital funding has been agreed for major projects - £800K for Pontardawe, £1.5M for Llandrindod Wells, £400K for Amman Valley plus £600K for works associated with the Service Review (as detailed within the Current Projects section)

 Following a review a rental income of £102K is expected from lettings and licences this year against 2010/11 income of £56K managed by the Estates Department

 Improvement works backlog based on condition surveys undertaken in 2008/09 of approximately £2.2M, however substantial investment has been made at certain sites such as Earlswood, Llandrindod Wells, Tenby, Port Talbot, Hay on Wye, Cymmer and others since the condition surveys were undertaken

Distribution of Properties

The distribution of properties is shown on the map overleaf and the portfolio can be broadly categorized according to property types as shown in

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15 Asset Types

Most of our property assets, particularly fire stations, are ‘location critical’ with historical response standards being the key determinant of location. These response standards may not always support the current risk profiles and their location is in part a legacy of circumstances rather than a current assessment of need. Others, such as administrative and training facilities are not response location critical.

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16 The list below illustrates the diverse nature of the building types within

MAWWFRS: -

Wholetime 24hr Crewing with RDS Support Fire Stations 6 Wholetime Day Crewing with RDS Support Fire Stations 6

Retained Duty System 44

Self Rostered Crewing 1

Volunteer Fire Stations 2

Service HQ 1

Command HQ 6

Vehicle Workshops 5

Training Delivery Facilities 10 Conference and Administrative Facilities 7

Training Structures 54

USAR Facilities 4

Fire Stations

The locations, types and sizes of fire stations are determined by the risk to the community and the ability to respond, in general terms the pattern of fire station provision is for whole time stations to be in urban centres and retained fire stations in rural areas. MAWWFRS station details are included within Appendix A.

The status of the station has a considerable influence on the facilities that are provided. Wholetime 24 hour stations are in use around the clock and require some staff to spend extended periods in them; wholetime day–crewed fire stations are in use for large parts of the day, whilst retained stations have far less staff activity on site and therefore require fewer facilities.

The volunteer stations, one at Borth and the other on Caldy Island are as the name implies, crewed by local volunteers, trained and kitted out by

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17 Administration Buildings

MAWWFRS Area Command Administration centres are mainly based at whole time or day-crewed fire station sites, e.g. at Neath, Carmarthen,

Haverfordwest, Aberystwyth, and Morriston. The Northern Command is based at Builth Wells retained fire station but is due to relocate to the new shared development at Llandrindod Wells in 2012. Options for collaboration with other services are now being explored.

Carmarthenacts as the main administration centre for the Service with conference, training and other ancillary facilities, with support departments such as Estates, Finance, ICT and HR. The campus comprises a mix of new and existing buildings and a new purpose built facility was completed in 2006. Overall the site provides some 3874 sq m of office and ancillary space. A review of occupancy has been undertaken to ensure optimised use of the facilities on site and works have commenced within Cartref-y-Gelli to incorporate the relocation of staff from the Morriston site. Administration properties are listed in Appendix B.

Control Centre

The Service Control Centre was relocated in 2006 to a shared facility with Powys Police and the Welsh Ambulance Services Trust within Dyfed-Powys Police HQ at Llangunnor, Carmarthen.

Training Delivery Facilities

Training facilities are provided at Haverfordwest and Newtown, and the majority of core training is provided at Earlswood and Morriston. Smaller facilities such as the smoke house in Llanelli are under review. Training facilities are listed within Appendix C.

Training Structures

The training structures asset portfolio covers the Realistic Fire Training Unit, temporary cabins, USAR training module, and the Service’s training towers. The majority of the towers are constructed of steel or concrete and are classed as short life assets, due to the specialist nature of their construction and use they tend to require regular safety inspections and more frequent routine maintenance.

A strategic review of training facilities and structures is currently being undertaken by Carmarthenshire Command.

Urban Search and Rescue

Fire and Rescue Services are part of the Government’s Critical National Infrastructure, which has developed a network of strategic facilities across the country to respond to natural disasters, acts of terrorism, etc. These are known as Urban Search and Rescue centres and one such centre is sited at our Earlswood campus where a number of specialist vehicles and training facilities have been constructed due to funding from the Welsh Government.

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18 Vehicle Workshops

These are sited principally at fire station sites, namely Carmarthen, Builth Wells, Aberystwyth and Haverfordwest. The exception is our central workshop facility at Earlswood. The workshops at Earlswood are housed in a recently refurbished and improved industrial building extensively fitted out with workshop equipment. A review of the Transport provision is currently being undertaken and will inform the 2012/13 Property Asset Management Plan. Workshop details are listed in Appendix C.

Houses

MAWWFRS has two residential units which are sited at the Carmarthen HQ campus and are currently being reviewed for future development, two former semi-detached houses have been recently converted and refurbished to accommodate a Hydra Minerva and ICT training suite.

4.3 COMMUNITY USE OF MAWWFRS BUILDINGS

Prompted by “Making the Connections” and “One Wales” which highlighted the benefits of community use/ownership of public buildings, the Service has embarked on a programme linked to the modernisation and improvement works, to bring its buildings up to a standard suitable for community use where ever practicable, bearing in mind cost and benefit.

There is as yet no evaluation of the investment into community rooms to ensure value for money. It is recommended by this Plan that post project review and assessment of completed projects be carried out to evaluate performance of Estates, contractors and architects as well as usage of the facilities.

Combining an emergency service with public use presents a number of

challenges such as security, effective splitting of the two uses and compliance with additional legislation such as the Disability Discrimination Act.

There are 29 locations now suitable for community use with more planned. Involving the community in this way helps to spread the message of fire safety through educating, advising and mentoring of various community groups, whilst also providing local communities with a meeting facility.

Conference and catering facilities at Service HQ and others were also

designed with community use in mind and have been used extensively by the Fire Service and external bodies. However, a number of stations will not be suitable for such use due to their age or configuration.

Appendices A to C identify those locations that are currently suitable for community use and should include those where the business case supports further investment and this will be work in progress that is informed by future suitability surveys.

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19 4.4 KEY ISSUES IN THE PORTFOLIO

Age

A large percentage of our fire stations - 39% were originally constructed over 50 years ago with a further 40% over 40 years old. Only 9% of our stations are less than 30 years old. Age alone is not necessarily a guide for replacement, other factors to included are location, condition, cost of running and suitability for use. The pie chart below illustrates the age group split. Appendix A details the original construction dates of individual fire station properties.

Station Age

39%

40% 12%

9%

over 50 years old over 40 years old over 30 years old under 30 years old

The age profile of our fire stations presents a number of problems particularly related to the available budget for repairs and improvements, and suitability of accommodation with regard to issues such as dignity at work and compliance with the Disability Discrimination Act for a modern fire and rescue service. Improvement Works Backlog

Despite a concerted effort over the last 5 – 6 years, coupled with some

improvement in external funding allocated to the portfolio, the ever increasing demand and expectation for improvements in terms of repair and

modernisation has resulted in our ageing portfolio accumulating a maintenance backlog estimated at £2.2M calculated from the condition surveys undertaken in 2008/09. Although, as previously stated substantial work has been undertaken since the condition surveys, it has been difficult to establish a value against the current maintenance backlog based on existing data collection routines.

The Estates Department has completed condition surveys of all properties and these surveys are used as the basis for programmed works relating to Equality and Diversity as well as disabled access and facilities, to encourage

community usage. Data has been evaluated on an elemental basis. Condition and priority codes have been used together with an overall property rating to help develop programmes of work either within the elements that have been considered or to buildings as a whole.

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20 This methodology has served to prioritise those premises in greatest need of attention and to ensure that programmes of work are targeted in a balanced and structured way. Legislative requirements for premises are also

considered and specific programmes for improvements to stations to comply with health and safety issues as well as improving the sustainability of the buildings are also considered at feasibility stage.

Lack of Flexibility

Buildings tend to have longer physical than functional lives (assume 60 year physical life for valuation purpose) and also by their nature are static whilst urban form, demographics and thus risks change around them.

Sustainability

The age profile of the portfolio outlined above does limit our ability to make our buildings environmentally friendly and sustainable over the long term.

However, building methods and services will be selected to meet the

requirements of the Building Regulations and to minimise the use of energy and water, therefore making a positive contribution to a sustainable

environment wherever possible. Corporate Image

The portfolio represents a physical manifestation of MAWWFRS in the

community. Poorly maintained and ‘tired’ buildings will present a poor image of the Service rather than one that is striving for excellence. Much attention to detail in this area in the past has maintained a positive image. Financial constraint can erode this position very quickly if buildings do not receive the appropriate attention and financial investment.

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21 4.5 ESTATES BUDGET EXPENDITURE 2010-11

Breakdown

Within the overall Revenue Budget spend of £1,956,561 a total of £529,655 was allocated to the maintenance and improvement of the buildings.

It is worth noting that the last three years of revenue expenditure has benefitted from external funding that has assisted to improve properties highlighted as requiring investment through the condition survey process. Primary areas of property expenditure managed by the Estates Department within the Revenue budget included the following:-

 Service contracts £274,894

 Utility costs £564,075

 Maintenance and improvement (general maintenance, mechanical and electrical) £529,655

Through improved data capture of costs and maintenance categorisation the 12/13 PAMP will capture the planned expenditure versus reactive expenditure ratio to establish best practice in evaluating the effectiveness of the Estates management.

Projected Revenue Budget Expenditure 2011-12

Within the overall approved Revenue Budget of £1,886,168 a total of

£518,687 is projected to the maintenance and improvement of the buildings. The following expenditure is anticipated this year :-

 Service contracts £298,495

 Utility costs £665,100

 Maintenance and improvement (general maintenance, mechanical and electrical) £518,687

Revenue budget pressures will continue to centre on utilities as we are governed by the market place which has fluctuated significantly over the past 3 years. Additionally the maintenance budget should be monitored as this has not been kept in line with inflation for a number of years, especially when the estates value has increased and the size of the estate has also increased as a result of various improvements and developments.

Capital Budget Expenditure 2010-11

The last twelve months have been particularly challenging on the Capital budget as the table overleaf illustrates.

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22 Project Spend 10/11 Projected Final cost (£) Within Budget Comment

Llandrindod Wells 350,000 5,031,000 Yes Due for completion April 2012

Pontardawe 30,000 758,000 Yes Due for completion Nov 2011

Earlswood Accommodation

755,000 755,000 Yes Completed April 2011 Minor Works 1 (North) 120,000 346,000 No Due for completion in

April 2012

Minor Works 2 (South) 70,000 155,000 No Due for completion in April 2012

Tenby Equality and Diversity Works

210,000 182,000 No Completed June 2011 Earlswood Security

Improvements

30,000 30,000 Yes Completed April 2011 Earlswood

Training/USAR improvements

67,000 67,000 Yes Completed April 2011

Minerva Suite, HQ 122,000 122,000 Yes Completed April 2011

For 12/13 the Estates capital budget will consist of completing the major

capital works, namely Llandrindod Wells and Amman Valley which will result in approximately £550K capital expenditure, further monies may be available depending on budget constraints and priorities.

4.6 FINANCIAL CONSTRAINTS

The consequences of the current recession and likely impact upon public finances will in turn affect the organisation’s approach to managing its assets. In such a climate there will be a need to ensure that the property portfolio is optimised.

Couple the current financial settlements with the increase in energy costs and the challenges of delivering services will multiply. This, against the backdrop of the disproportionate cost of a large number of stations due to their age profile, and set in a large and sparsely populated rural area. It is clear that existing procedures and practices associated with the management and development of the property portfolio will need to be improved and kept under constant review. This plan will form the vehicle for that review process.

The Authority’s three year capital strategy, capital programme and medium term financial plan will link together with the PAMP in the following way:

 The capital strategy is a key corporate document that will describe how the Authority’s capital investment plans support the achievement of its objectives and priorities. It will set out the overall framework on how capital needs are properly identified, evaluated, prioritised and financed. It will be updated each year and submitted for approval by Members as part of the budget process. The Property Asset

Management Plan provides a key input to inform the Capital Strategy.

 The capital programme will be derived from the capital strategy, set out in detail the anticipated expenditure for the current year and following

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23 three years. Included are all committed capital schemes and those

which have been agreed to be of a high priority to proceed. It is also formally approved by Members on an annual basis as part of the budget process following consideration of available capital resources and affordability.

 The medium term financial plan sets out the projected revenue spending and resources over a three year forward period. This therefore includes any financial implications arising from capital investment as well as revenue spending on asset maintenance.

One purpose of the Property Asset Management Plan is to give focus on how property assets should be managed to support the objectives and priorities of the Authority and therefore is an essential tool in prioritising capital and

revenue expenditure on assets that feed into capital and revenue plans. In the absence of a formal property plan there would be difficulty in accurately

targeting limited resources.

The assessment of property spending requirements is based on a variety of data including condition surveys, suitability assessments and service delivery requirements to ensure that limited existing resources are targeted in the most effective and efficient way. Where additional resources are needed, Capital and Revenue bids are submitted as part of the budget making process each year, although there is some flexibility to introduce additional spending bids as and when required to take account of unplanned emerging needs. Capital bids need to be evaluated and prioritised using business case methodology and a full scheme feasibility appraisal conducted where appropriate, including a Whole Life Costing appraisal on completion of this process. Executive sign-off would be sought to progress design and tender processes, upon completion of the tender process further sign-off will be sought for an investment decision to proceed with the project.

Priority spending bids will then be submitted to the Authority for consideration of affordability as part of the budget and financial planning process.

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24 4.7 CURRENT PROJECTS 11/12

Llandrindod Wells Project – Contract Value £5.031M

The project commenced in January 2011 with a target completion date of April 2012. This project includes the provision of an operational fire station,

Command Headquarters with shared facilities for Dyfed-Powys Police and the provision of Her Majesty’s Court Service facility.

Pontardawe Refurbishment And Extension Project – Contract Value £758K

Construction works commenced in March 2011 with a 12 month construction contract, however the anticipated completion of the main building is December 2011. Works include the upgrading of the existing facility at Pontardawe to accommodate a self rostered crewing arrangement including first floor living and dormitory areas and refurbishment to ground floor accommodation that includes the introduction of a community room.

Minor Works 11/12 – Contract Value £501K

Minor Works 1 North (Hay-on-Wye, Talgarth and Cymmer) construction works commenced in January 2011 and are due for completion in January 2012. Minor Works 2 South (Pembroke Dock, Milford Haven, Narberth,

Haverfordwest, Fishguard, Crymych and St. Davids) construction works commenced February 2011 and are due for completion by March 2012. Improvement works at Pontardulais are yet to commence. The majority of these adaptations involve improvements to washroom facilities, heating systems, community room access upgrades, sustainable technology and the upgrading of fire alarm systems.

Drill Towers and Training Structures – Contract Value to be confirmed Anticipated guidance to inform planning will be received from GM Quin as an outcome of his current review.

Fire Suppression To The Server Room, HQ – Contract Value £30K This requirement was identified as a business risk as part of the IT audit in 2010. Costs have been identified but works require tendering and

programming.

Gas/Oil Heating And Hot Water Systems And Gas Fired Appliances – OJEU Tender

One of the department’s main servicing and maintenance contract. A collaborative OJEU electronic tender commenced in September 2011 with SWFRS who are the lead. The contract award is programmed for January 2012.

Appliance Bay Door Servicing, Maintenance And New Provision – OJEU Tender

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25 MAWWFRS is lead. Tender work commenced in October 2011 with an

anticipated contract award in May 2012.

Security Servicing And Maintenance Contract – Anticipated Contract Value TBC

The existing contract for intruder alarms and CCTV systems is out of

compliance and has not been market tested for several years. Furthermore, additional investment is required at several sites, namely Earlswood, HQ and Morriston, and existing systems require review and integration. Work has yet to be programmed and assigned to departmental staff.

Fire Risk Assessment Remedial Works – Anticipated Contract Value TBC As part of the assessment process undertaken by each Command, many sites have been identified as requiring new or upgrades to existing fire alarm and emergency lighting systems. A tender process is required, together with the consideration of funding, although several sites have already been included within the minor works packages. This work could form part of the

maintenance contract detailed below but is yet to commence.

Fire Alarm And Emergency Lighting Servicing And Maintenance Contract – Anticipated Contract Value TBC

This contract has been extended to cover testing in the early part of 2011 but continues to be non-compliant. A tender process is required before December 2011, together with a review of the current specification to secure a contractor over a period of 3 to 5 years. Work is yet to be assigned to prepare a robust specification, contract documentation and to undertake the tender process. The department is awaiting the outcome of a recent Welsh Purchasing Consortium framework tender before progressing.

Legionella Contract Renewal – Anticipated Contract Value £20K

Risk assessment reviews are required on a 2-yearly basis and monitoring of systems to include monthly temperature reading, weekly flushing and shower head de-scaling needs to be further explored with building owners. The Estates Manager is currently preparing documentation, reviewing processes and identifying training needs throughout the organisation.

Display Energy Certificates – Annual Contract Value £5K

The third year of data collection is required in November 2011. Once completed, this contract will require renewal for a further 3 years. Currently the data collection is undertaken by the Facilities Manager.

Facilities Management Software Tender And Implementation – Contract Value TB

The tender process commenced in September 2011 with an anticipated contract award in December 2011. It is envisaged that the main

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26 Morriston Site – Anticipated Construction Value £250K

Refurbishment works have been completed within the former Training annex, provision of the community room within the fire station and decommissioning of the former Fire Safety Headquarters works associated with the site are due to commence. This will require substantial logistical input to manage the relocation of staff, services and equipment, and supporting managers, as well the long term commitment of managing the mothballing of the former Fire Safety HQ building. Several maintenance contracts are also affected (e.g. cleaning, grounds maintenance, security, waste) and require review.

Improvements to Cartref-y-Gelli – Anticipated Construction Value £175K Refurbishment project to maximise the use of the former Estates office area and first floor training areas and refurbishment of Cartref-y-Gelli annex which was the former Civil Contingencies and Resilience office accommodation. Works commenced on site in May 2011. There will be a considerable requirement to manage the relocation of personnel from the Morriston site, from engaging with the stakeholders, managing the budget, ensuring

adequate IT facilities and furniture are available, managing health and safety on site, planning the move and managing the reuse and disposal of equipment at Morriston and HQ.

Increased Car Parking at Service HQ – Anticipated Contract Value £60K As a consequence of the migration of staff from Morriston to Service HQ and the increased staffing numbers additional car parking facilities are required. Coupled with innovative working practices the numbers catered for are a best fit at present. Also considered in the increase in pool cars and the potential of an increased use of private vehicles may require further assessment in the future. Works are due to commence in November 2011.

Amman Valley New Build Project – Anticipated Construction Value £782K

To satisfy the requirements of the Safer Valleys Project the provision of a new RDS station in the Amman Valley was agreed and contract commencement is due late October 2011, with an anticipated completion date of late July 2012. Earlswood Site – Estimated Further Works Value TBC

Further works are anticipated on site, to include the formation of a secure waste compound, possible additional catering facilities, further storage requirements and maximising space within the transport area and additional workshop.

Reception Desk HQ – Anticipated Costs for Redesign £8K

A proposal has been developed and agreed to redesign the layout of the Reception desk to better facilitate the management of visitors to the building. Conference Facility Redecoration – Estimated Contract Value £10K In conjunction with the planned audio-visual works redecoration to several

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27 areas within the conference facility have been planned and will commence when completion of the audio-visual tender is agreed.

Grounds Maintenance Tender – 11/12 Contract Value £32K

Although not viewed as a strategic contract, this contract will be non-compliant by the end of March and the tender process will need to commence in

December 2011 due to value and timescales of work.

Review Of Cleaning Provision And Tender Of Contract – Total Spend 10/11 £163K

The total spend on contract cleaning in 2010/11 was £163K and has never been market tested. Two local authorities undertake the majority of cleaning provision with two other private contractors providing services at HQ,

Swansea and Neath/Port Talbot. We also have employed cleaners at several sites. Over £6K has been saved this year through reviewing the contract with Powys CC and it is anticipated that further savings could be achieved if all cleaning provision is reviewed and tendered. However, due to the value and complexity of the contract it is envisaged that consultancy assistance will be required and staff resources allocated for this work to be undertaken.

4.8 PLANNED WORKS AND PROJECTS 12/13

Decommissioning of Catering Areas And Equipment

A programme will be developed to facilitate the decommissioning of catering facilities as aligned to the vacation of catering posts. An on-going maintenance and renewal programme of existing equipment is also required, and work is required to establish a framework for the supply of standard efficient white goods. Several sites have been identified as ready for decommissioning and could form part of the minor works schemes planned for 2012. This work is being managed as part of SIIG but timescales have yet to be agreed.

Potential Service Improvement Projects

For example the long term plan for the Pembrokeshire County Command building, space utilisation of Carmarthen Fire Station, the vehicle workshops review and change of shift pattern at Llanelli Fire Station.

Aberystwyth Fire Station

An architectural consultant is working on our behalf to present a potential planning application for change of use of the existing site. Regular updates and discussions are on-going with the appointed consultant.

Minor Works Planned 12/13

Improvement works have been identified as a result of site surveys carried out in 2011. Three to four sites have been identified to as requiring an investment to be made to improve washroom facilities and upgrades of fire alarm

systems. Preliminary plans have been developed but no further work has been undertaken, e.g. consultation, tendering process and statutory

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28 applications.

Reconfiguration Of HQ Kitchen and Dining Area

Full upgrade of the heating system within Cartref-y-Gelli will allow a better use of the ground floor dining/café area. Dialogue between users of the catering facility has commenced and sketch plans have been devised. Further evaluation of numbers and food types and associated preparation areas is required.

Sustainability

Anticipated works to satisfy the sustainability element of the Strategic Plan will require significant input from department staff to ensure that the objectives are met. The Estates portfolio will be required to adapt and align with requirements of any formal sustainability action plan. Outputs have yet to be discussed but it is anticipated that schemes will be proposed during the latter part of 2011 which may form part of a Service wide Carbon Management Plan. Review Of Heating And Air Conditioning Systems

In addition to any works identified as part of a sustainability programme, detailed condition surveys are required of Service heating and air conditioning systems due to their age, on-going deterioration and inefficiency. Consultancy services will be required to assist departmental staff, or the temporary

recruitment of an M&E specialist which would provide much needed experience and resilience within the Estates team.

4.9 ACTION PLAN FOR THE FUTURE

MAWWFRS recently conducted a major service review on how best to meet its future commitments to service delivery and community safety. The

outcomes from this review will have a considerable influence on the future direction of this Property Asset Management Plan, as will the uncertainty of future financial settlements.

In order to accommodate these factors a degree of flexibility will be required. A range of actions have been identified for years 2012 – 2015 in order to progress a property asset management policy in line with annual focus areas. These actions are largely in addition to, or will complement the broad range of activities undertaken by the Estates Department as part of the normal day to day business process and include:-

1. In conjunction with the Medium Term Financial planning process the completion of the schedules of condition and suitability on all

MAWWFRS properties will be undertaken. From the information gathered produce a 10 year plan which categorises premises as

suitable for retention, refurbishment or replacement. This may illustrate core property, core flexible property and flexible property.

2. Enhance existing plans for dealing with the maintenance and

improvement of the premises to be retained including projected costs in future years for inclusion within the Revenue Budget process and to reduce the maintenance backlog.

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29 3. Revisit the projects identified and prioritised in the Capital improvement

programme, examining the current criteria used to establish priorities. Post project reviews need to be introduced to monitor what went well and what did not go so well.

4. Identify and prioritise those locations which are or could be impacted upon by local development plans and seek to maximise any outcome to the advantage of MAWWFRS.

5. In conjunction with other departments, identify any buildings that are surplus to current requirements that could be put to better use or disposed of in the most advantageous way.

6. Look to enhance the existing internal benchmarking data covering energy use and repair and maintenance costs.

7. Seek greater involvement in regional and national benchmarking initiatives where appropriate to FRS’s and to the Welsh public sector. 8. Institute regular reporting to the Policy Board and the Service

Improvement Forum on progress against the PAMP and other estates related activities.

9. Update the Property Asset Management Plan on an annual basis and fully integrate the National Property Performance Management

Indicators (NaPPMI) as defined in the Welsh Government’s benchmarking report (SOCITM).

10. Further explore the potential for partnership agreements with the other emergency services or other suitable agencies. Currently this is carried out on a case by case basis with no overarching Service Policy in place.

11. Continue the programme of improved facilities and security at stations both for our own personnel but also to further community use at our premises. A Service Policy is required setting out the criteria for Community Use.

12. Linked with the facilities management software project is the

enhancement of the existing electronic premises defect system, and following the enhancement ensure that duplicated tasks are eliminated, improve the efficiency of managing defect data, collect performance management data, improve and prioritise defects and reduce delays in defects being repaired in a timely manner.

13. Communicate effectively and on a regular basis at all levels within MAWWFRS to ensure all view points are taken account of and acted on as appropriate.

14. Develop a ‘fire station design brief’ directed at SRC stations. The brief will need to take account changing policies, working practices,

operational changes and changes in legislation, and will cover both new build and extension/refurbishment projects.

15. Reduce the risk of Legionnaires Disease within our buildings by the continuation of temperature monitoring, monitoring and reporting on weekly flushing responsibilities per site and reducing the risk by identifying and upgrading plant.

16. A full review of training assets is required to complement the Property Asset Management Plan.

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30 4.10 RECENT ASSET MANAGEMENT REVIEW

KPMG

Making the Connections (MtC) encourages greater partnership working across the Welsh public sector – reshaping services can also involve public service providers working across boundaries and entering into joint arrangements when commissioning and delivering services.

The Welsh public sector has a substantial asset base - circa £30 billion. Across Wales, information on assets remains of inconsistent quality including areas such as property condition, suitability, and sufficiency of assets. Their use and better asset management can lead to significant and measurable efficiency savings, as well as improved service delivery and sustainability. As part of the Wales Programme for Improvement grant and central funding the Welsh Government is examining Asset Management across the Welsh public sector over four phases. Buildings Management was undertaken in 2009 with the aim of identifying areas for improvement and good practice around this area, focusing on: -

 developing and adopting the buildings strategy;

 delivering the strategy through performance management;

 delivering value for money through strategic management; and,

 delivering value for money through operational management.

The overall outcome of the audit aimed to address the following question: -

‘Is the Mid and West Wales Fire and Rescue Authority ensuring that its land and buildings management arrangements support improvements in efficiency and service delivery to meet the needs and expectations of users for the 21st century?’

Meetings between MAWWFRS representation and the audit consultant resulted in a set of recommendations which have been included in Appendix D, together with the actions undertaken to date.

MAWWFRS Service Review Programme

The Service review process and the resulting elements to be adopted and implemented has created demands within the Estates team which has proved to be challenging to manage, however the team is striving to deal with all works that relate to the Estates function as well as assisting others to undertake reviews and improvements identified, such as catering facilities, relocation of staff and training facilities / structures.

Unfortunately the review process has not identified the need for additional resources to deliver the work packages identified as a priority; this has caused disruption and delay to the business planning process of the Estates function which has necessitated the need to manage expectations of stations included within the initial business plan for 2011/12.

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31 4.11 CONCLUSION

The Property Asset Management Plan (PAMP) is fundamental to the strategic asset management plan of MAWWFRS. The PAMP is part of, and aligned to, a suite of strategic plans that will set the direction for the Service to meet its strategic priorities, operational and Service needs.

These plans will seek to: -

 Maintain and utilise current assets.

 Reduce current and long term costs, both financial and environmental.

 Realise the benefits of holding assets, such as making efficiency savings, increase income where possible through site sharing, partnerships and community use.

 Disposing of or transferring surplus assets and acquiring assets to meet current and projected needs and demands for the Service.

 Ensure that the assets are fit for purpose.

 Improve value for money and mitigate the impact on the environment. This PAMP has been developed to highlight the type, number and current value of existing assets whilst also producing information on the management of assets relating to the various statutory obligations an employer has to its employees and the public.

This plan should be read in conjunction with the Service’s Medium Term Financial plan, the objectives of which are currently being developed for the improvement of services for the benefit of the communities it serves. The recent Service review programme examined all aspects of working practices including staffing and services provided, and the findings have been wide reaching. The implementation process of key elements is currently being driven by a group of senior and middle managers.

The PAMP is a first attempt to provide clarity of the management of assets and will be continually developed and improved as back office processes are made more efficient through management systems and the assistance of building users.

By producing a PAMP and a medium term financial plan the recent rush of work associated with receiving additional funding from the former Welsh Assembly Government will hopefully be less frantic, although having sufficient resource allocation will always be vital to the success of completing projects successfully within usually very tight time frames.

As previously stated, this plan should be read in conjunction with the Strategic Asset Plan of the Service as well as the medium term financial plan, both of which will not have been developed in isolation.

ASSET MANAGEMENT PLAN

ASSET

MANAGEMENT

PLAN

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