Agenda and minutes

The Convener (1) proposed that the Committee consider those reports identified on the agenda as being for determination in private, with the press and public excluded; and (2) further proposed that item 12.1 of the agenda (Business Plan – Workforce Reduction and Options) be referred simpliciter to Council. 

On hearing the Convener’s proposals, Councillor Graham intimated that he would like the Committee to consider items 10.1 (Future Funding and Development of AECC), 11.2 (Aberdeen International Football Festival) and 11.3 (London 2012) of the agenda in public on this day.  Councillor Young at this point asked a question relating to item 11.3 of the agenda (London 2012), and the Convener proposed that in order for it to be answered fully, the press and public would have to be excluded from the meeting.

With the press and public not in attendance, the Chief Executive advised the Committee as to why it was imperative that this particular report be considered with the press and public not in attendance. On hearing this advice, Councillor Graham withdrew his request for the Committee to consider this particular report in public.  

The Convener, seconded by the Vice Convener, moved as a procedural motion:

that the Committee considers those reports identified on the agenda as being for determination in private, with the press and public excluded.

On a division, there voted, for the procedural motion (11) the Convener; the Vice Convener; and Councillors Clark, Cormack, Dean, Dunbar, Farquharson, May, Leslie, McCaig and John West; against the procedural motion (4) Councillors Cooney, Crockett, Graham and Young.

The Committee resolved:-

(i)         in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973, to exclude the press and public from the meeting from item 10.1 of the agenda onwards (article 31 of this minute) so as to avoid disclosure of information of the class described in the following paragraphs of Schedule 7(A) to the Act:  article 31 (paragraphs 6 and 9), article 32 (paragraphs 4 and 6), article 33 (paragraph 8), article 34 (paragraph 6), article 35 (paragraph 6), article 36 (paragraph 9), article 37 (9), article 38 (paragraphs 6 and 9), article 39 (paragraph 6 and 9), article 40 (paragraph 9), article 41 (paragraph 6), article 42 (paragraph 9); and article 43 (paragraphs 6 and 9); and

(ii)        to refer item 12.1 of the agenda (Business Plan – Workforce Reduction and Options) simpliciter to the meeting of Council of 15 December, 2010. 

The Committee had before it a number of requests for deputation as follows:

·           Item 6.1 of the agenda (Business Plan 2011/12 to 2015/16 - Lavina Massie, Chair of the Community Planning Partnership and the Fairer Scotland Fund Board – specifically in relation to options CG_CS_FS03 and CG_CS_FS01 (Fairer Scotland Fund – page 169 of the agenda).

·           Item 6.1 of the agenda (Business Plan 2011/12 to 2015/16 - Hillari Hastings, Gilcomstoun ASN (additional support needs) base parent and member of ASN Parent Forum, specifically in relation to option ECS_E41 (ASN Services – page 151 of the agenda).

·           Item 13.2 – Land at Pitmedden Road, Dyce - Sue Lemon, Chairperson of Dyce Sports and Leisure Development Trust.

·           Item 13.6 – Bon Accord Indoor Bowling Club- Cameron Millar, Treasurer, Bon Accord Bowling Club.

In relation to the two requeststo speak to item 6.1 of the agenda (Business Plan 2011/12 to 2015/16), prior to the meeting, the Director of Corporate Governance had advised that it was his view that this report was part of the budget process of Council, and therefore, the Committee were advised by the clerk that in terms of Standing Order 10(1), the requests were incompetent. The requests in relation to items 13.2 (Land at Pitmedden Road, Dyce) and 13.6 (Bon Accord Indoor Bowling Centre) of the agenda had been received in terms of Standing Orders.

The Convener (1) advised that he was minded not to consider the two requests in relation to item 6.1 (Business Plan 2011/12 to 2015/16) of the agenda; (2) further advised that the request in relation to item 13.2 (Land at Pitmedden Road, Dyce) of the agenda had been withdrawn immediately prior to the meeting; and (3) proposed that the Committee agree to hear the deputation in relation to item 13.6 (Bon Accord Indoor Bowling Centre).

At this point, Councillor Young disputed the advice provided by officers, and suggested that as today’s meeting was not a budget meeting of Council, called in accordance with Standing Order 4 (ie for consideration of the annual budget), that the deputations in relation to item 6.1 of the agenda,  were competent. The clerk to the Committee advised that Standing Order 10(1) stated ‘that no application in respect of a request for deputation shall be accepted which relates to the annual budget’, and reiterated that this Standing Order did not make a reference to the annual budget meeting of Council, but merely to the ‘annual budget’; and therefore in his view, the requests were incompetent in view of the Director’s earlier comment that the Business Plan was part of the budget process. The final decision however, was for members to take.

Councillor Young did not accept this advice, and further, did not accept that Standing Orders required to be suspended in order for the requests for deputation to be considered. On hearing this, the Convener concluded the discussion.

The Committee resolved:-

(i)         to not consider the requests for deputation from (1) Lavina Massie, Chair of the  ...  view the full minutes text for item 2.

The Committee had before it the minute of its previous meeting of 28 September, 2010.

In relation to article 20 of the minute (Tax Increment Financing for the City Garden Project), Councillor Crockett intimated that he felt the final paragraph prior to the recommendations was inaccurate, and should have read ‘A number of members commented on the nature of these remarks, and Councillor Laing subsequently apologised if the remarks had been misconstrued’, rather than ‘A number of members commented on the nature of these remarks, and Councillor Laing subsequently apologised to any officer who may have taken offence in this regard’.

Councillor Young, seconded by Councillor Graham, moved as a procedural motion:

that article 20 of the minute be amended to read ‘A number of members commented on the nature of these remarks, and Councillor Laing subsequently apologised if the remarks had been misconstrued’.

On a division, there voted, for the procedural motion (4) Councillors Cooney, Crockett, Graham and Young; against the procedural motion (8) the Convener; the Vice Convener; and Councillors Clark, Cormack, Dean, Leslie, McCaig and John West; declined to vote(3) Councillors Dunbar, Farquharson and May.

The Committee resolved:-

to approve the minute as a correct record.

The Committee had before it the minute of meeting of the Lord Provost Sub Committee of 8 July, 2010.

The Committee resolved:-

to note the minute.

DECLARATIONS OF INTEREST

During discussion of item 32 of this Business Statement (Transfer of Sports Services to Sport Aberdeen), Councillors John West and Young declared an interest by virtue of their positions as Directors of Sport Aberdeen.  They did not feel it necessary to withdraw from the meeting.

The Committee had before it a statement of pending and outstanding Committee business, which had been prepared by the Head of Legal and Democratic Services.

The Director of Education, Culture and Sport provided an update in relation to item 32 of the list (Transfer of Sports Services to Sport Aberdeen – Northfield Swimming Pool), and advised that officers had circulated a questionnaire during October, in conjunction with Sport Aberdeen, which had been completed by 113 swimming pool users. The responses were compared with Sport Aberdeen's proposed pool programme, and the programme modified where appropriate to take account of the preferences of the swimming pool users. With regards to the timing of sessions, the top three responses indicated a preference for sessions to be held on Wednesday evenings, Monday evenings and Sunday mornings. The first two of these concurred with Sport Aberdeen's proposed programme. The request for a session on Sunday mornings was more difficult, as Sport Aberdeen were not proposing to have any staff cover on Sundays. It was hoped that the new programme could be introduced early in the New Year.

Members enquired as to why there was a presumption that only three swimming sessions could take place each week, and were advised that three sessions were accounted for within the Sport Aberdeen Business Plan.

The Committee resolved:-

(i)        to remove items 5 (Evaluation of Contractors’ Performance), 12 (Essential Car Users Scheme), 14 (Former Carden School), 18 (Townscape Heritage Initiative), 19 (Landfill Tax Credit Funding), 20 (HR Service Centre), 27 (Cash Handling Arrangements), 29 (Staff/Tied Houses), 33 (Review of General Service Capital Programme 2010/11), 37 (Property Asset Management Plan – resolution C only), 38 (Staff Houses), 39 (Retail Rocks), 40 (Summerhill), and 42 (Housing and Environment Business Plan) from the Business Statement;

(ii)       to note the update provided by the Director of Education, Culture and Sport in relation to item 32 (Transfer of Sports Services to Sport Aberdeen – Northfield Pool), and to therefore remove this item from the Business Statement;

(iii)      to not remove item 34 (TIF for the City Garden Project) from the Business Statement; and

 (iv)                  to otherwise note the updates as contained within the Business Statement.

The Committee had before it the outstanding motions list as prepared by the Head of Legal and Democratic Services.

The Committee resolved:-

(i)        to instruct officers to contact Councillor Jennifer Stewart in order to ascertain as to whether she would agree to motion 1 (‘That this Council consults with occupiers in the terraced dwellings in Hazlehead Road, Hazlehead Gardens, Hazlehead Terrace, Hazlehead Crescent, Hazlehead Place and Provost Graham Avenue to find out if they can acquire or lease appropriate proportions of the adjacent Council owned land as individual defensible garden areas and that officers then report back on their findings’), being removed from the list; and

(ii)        to otherwise note the updates as contained within the list.

Reference was made to article 12 of the minute of meeting of the Housing and Environment Committee of 26 October, 2010 when that Committee had considered a request from Nether Loirston Growers Association, to lease a small parcel of Council owned land in Cove for the establishment of a community managed allotment facility. The Housing and Environment Committee had resolved (1) to declare the parcel of land referred to within the report surplus to the requirements of the Housing and Environment Service; and (2) to refer the matter to this Committee for its consideration.The Committee had before it on this day, the relevant minute extract from the aforementioned meeting of the Housing and Environment Committee, and a report by the Director of Enterprise, Planning and Infrastructure which advised that the Cove community had been requesting a local allotment facility for some time, and that in May, 2010, they had been successful in gaining funding of £37,500 from the Climate Challenge Fund in order to establish a sustainable allotment site in Cove.The report outlined the work that had been carried out to date including contracting a project management agent, Aberdeen Forward; setting up a local voluntary management organisation, the Nether Loirston Growers Association; and selecting an appropriate site, a small parcel of Council owned open space adjacent to a grounds depot and located between Altens Community Centre and Altens Industrial Estate.

The report concluded that officers in Legal Services and the Asset Management team believed that further investigations required to be undertaken prior to a lease being offered to the Nether Loirston Growers Association.

The Committee resolved:-

(i)         to note the approach from North Loirston Growers Association to establish a community facility on the site, and approve in principle, a lease of the site to them;

(ii)        to delegated powers (if required) to the Head of Asset Management and Operations and the Head of Legal and Democratic Services to negotiate lease terms with North Loirston Growers Association, in consultation with the local members and the Convener and Vice Convener of this Committee; and

(iii)       to instruct the Head of Asset Management and Operations (1) to carry out further investigations in relation to the transfer of assets to community groups, and the use of powers under ‘The Disposal of Land by Local Authorities (Scotland) Regulations 2010’; and (2) to include his findings in the 2011 Property Asset Management Plan Update.

Members: please note that officers are recommending that the Service Charge be raised by a lesser amount than agreed at the meeting of the Housing and Environment Committee.

Reference was made to article 19 of the minute of meeting of the Housing and Environment Committee of 26 October, 2010, whereby members considered the financial implications associated with the continued use of bed and breakfast accommodation. The report had proposed, amongst other things, (1) that the charge the Council pays to bed and breakfast proprietors be reduced; and (2) that the service charge for temporary accommodation be increased. Both of these proposals required the approval of this Committee.  The Committee had before it on this day, the relevant minute extract from the aforementioned meeting of the Housing and Environment Committee, and a report by the Director of Housing and Environment which provided further information on the proposals. The report (1) outlined the reasons for the cost pressures occurring; (2) detailed the current financial position in this regard; and (3) detailed the proposals that had been agreed at the Housing and Environment Committee (subject to the approval of this Committee), as follows:

• That the number of bed and breakfast establishments being used on a daily basis, be reduced to 100 (from 160) by (a) requiring applicants to stay in their current accommodation for one month in order for their situation to be properly assessed; (b) encouraging more use of hostel accommodation; and (c) working with intentionally homeless and non priority persons in temporary accommodation with a view to moving them on timeously.
• That the charge the Council pays to bed and breakfast proprietors be reduced, by negotiation, to an average of £37 per night.
• That the service charge levied per week to cover the management cost of temporary furnished properties, be increased from £152 per week, to £300 per week. This increase would need to properly managed to ensure that it was eligible for housing benefit, and adequate documentation would require to be produced in order to satisfy any future external audits. Further, the report advised that temporary accommodation properties attracted a full subsidy from the Department of Work and Pensions, so any additional revenue would supplement existing departmental budgets.

In relation to the proposal to increase the service charge for temporary furnished properties, the report suggested that an annual agreed uprating would ensure that charges remained consistent with costs.

The Committee noted that the Housing and Environment Committee had approved that the service charge levied per week to cover the management cost of temporary furnished properties be increased from £152 per week to £300 per week, but that officers had undertaken further work on this, and were now only proposing an increase to £250.33 per week.

Members raised concern at how this proposal may be a huge disadvantage to a person who is employed (due to the fact that the service charge would not be covered by benefits). The Homelessness Manager explained this would be dealt with on a case by case basis, and that there were ways of mitigating the strain on tenants.

The Committee resolved:-

(i)         to note the current position;

(ii)        to approve the proposed  ...  view the full minutes text for item 8.

Reference was made to article 12 of the minute of meeting of the Education, Culture and Sport Committee of 18 November, 2010, whereby a number of properties were declared surplus to the requirements of that Service. In addition to this, the Education, Culture and Sport Committee had recommended to this Committee that any capital receipts resulting from the report, and the disposal of any other educational establishments, be ring fenced in order to contribute to the implementation Learning Estate Strategy.

The Committee had before it on this day, (1) the report, as had been presented to the meeting of the Education, Culture and Sport Committee; (2) the corresponding minute extract; and (3) further information that had been provided by the Head of Asset Management and Operations. The information as provided by the Head of Asset Management and Operations suggested (a) that the ring fencing of capital receipts was not a universally agreed practice, and that officers would not advocate its adoption, as this would be contrary to the current practices and procedures of the Council; (b) that as a corporate body, the assets of the Council should be seen as being for the good of the whole organisation, and not favouring individual Services; (c) that by agreeing to the recommendations of the Education, Culture and Sport Committee, there was the potential for discrimination to arise against those Services that were not in a position to make any capital investment. 

The Committee resolved:-

(i)         to ratify the recommendations of the Education, Culture and Sport Committee (ie to agree to ring fence any capital receipts resulting from the report, and the disposal of any other educational establishments in order to contribute to the implementation of the Learning Estate Strategy);

(ii)        to instruct officers to market the former Mile End School as a residential conversion/development opportunity;

(iii)       to instruct officers to market the former Craighill School as a residential development opportunity;

(iv)       to agree that officers continue discussions with the Housing and Environment Service in relation to the former Balgownie School, prior to proceeding to marketing the property as a residential development;

(v)        to agree that officers continue discussions with the Housing and Environment Service in relation to the former Smithfield School, prior to proceeding to marketing the property as a residential development;

(vi)       to instruct officers to market the former Hilton Nursery and Community Centre as a residential development opportunity further to progressing negotiations with the NHS and District Valuer to surrender the NHS lease interest in part of this building; and

(vii)      in relation to Airyhall House, to instruct officers to enter into discussions with the adjoining  land owner to promote the potential residential scheme as a whole.

Reference was made to article 5 of the minute of meeting of the Special meeting of the Education, Culture and Sport Committee of 28 October, 2010, at which time members recommended that any receipts generated from any Education, Culture and Sport property resulting from any resolutions at that meeting, be invested back to the Education, Culture and Sport estate.

The Committee resolved:-

to ratify the recommendations of the Education, Culture and Sport Committee, and to therefore agree that any receipts generated from any Education, Culture and Sport property resulting from any resolutions at the Special meeting of the Education, Culture and Sport Committee of 28 October, 2010, be invested back to the Education, Culture and Sport estate.

Members: please note that the recommendations contained in the report to the Social Care and Wellbeing Committee were approved.

Reference was made to article 8 of the minute of meeting of the Social Care and Wellbeing Committee of 4 November, 2010, at which time a number of properties were declared surplus to the requirements of the Service. The Committee had before it on this day, the report as presented to the Social Care and Wellbeing Committee, and further advice from the Asset Management and Operations team with regard to the future use of the properties in question.

The Committee resolved:-

to instruct officers to market the following properties as residential redevelopment opportunities:

• former Glamis Cottage
• former Burnside Centre
• former Dominies Road Hostel; and
• former Seaview Children’s Home.

Reference was made to article 7 of the minute of meeting of the Enterprise, Planning and Infrastructure Committee of 9 November, 2010, whereby members had, amongst other things, agreed to modify the annual road permit administration fee from £150 to £100 for up to 24 chairs, subject to the approval of this Committee. The Committee had before it on this day, the report, as presented to the Enterprise, Planning and Infrastructure Committee, and the corresponding minute extract.

The Committee resolved:-

(i)         to ratify the decision of the Enterprise, Planning and Infrastructure Committee to modify the annual road permit administration fee, from £150 to £100 for up to 24 chairs; and

(ii)        for clarity, to confirm the removal of the £25 charge per chair that was currently in place.

With reference to article 13 of the minute of its previous meeting, the Committee had before it a report by the Head of Finance which
(a)  provided information on the current year’s revenue budget performance to date for the Corporate Governance Service, including a high level summary as at September, 2010; and  (b)  provided an overview of the current capital budget for the Service.

With regard to the position of the revenue budget for the Service, the report advised that there was a net reduction in costs of £800,000 (3.1%) across the overall current net budget of £26 million. Appended to the report was the Service report and associated notes.

In respect of the capital position of the Service, the report advised that the spend as at September, 2010 was £2.1 million, against a budget of £13.4 million (including a £1.4 million budget for Grampian Police, and taking account of a carry forward figure of £850,000 from 2009/10).

The Committee resolved:-

(i)         to note the content of the report in respect of the revenue position, and the information on management action and risks that was contained therein;

(ii)        to note the information included in relation to the Capital Programme; and

(iii)       to instruct officers to continue to review budget performance, and report on Service strategies as appropriate.

Prior to any discussion taking place on this item, Councillor Crockett, seconded by Councillor Young, moved as a procedural motion:

that the report be referred simpliciter to the meeting of Council of
15 December, 2010.

On a division, there voted:-  for the procedural motion  (5)  Councillors Cooney, Crockett, Farquharson, Graham and Young; against the procedural motion  (10)  the Convener, the Vice Convener; and Councillors Clark, Cormack, Dean, Dunbar, Leslie, May, McCaig and John West.

The Committee resolved:-

to consider the report on this day.

The Committee had before it a report by the Director of Corporate Governance which outlined proposals for a Five Year Business Plan for the Council, for the period 2011/12 to 2015/16.

The report advised that this was a break from the traditional annual approach usually adopted in budget setting, but it was felt that this approach had allowed officers the opportunity to think radically about how to deliver key services from a reduced cost base.  The report highlighted a total of £150 million of potential savings, with £48 million of these having a high risk to the Council should they be implemented.  The options were presented by Service, and in terms of the following categories (1) transformation options; (2) efficiency options; and (3) stop/reduce options (where an option was given a number, which referred to its Council wide priority as determined by the Corporate Management Team). It was noted that where a proposed saving figure was a negative, what was indicated was either an investment or a reduction in income.

The report recommended:-

that the Committee –

(a)       consider the content of the report;

(b)       make recommendation to the meeting of Council of 15 December, 2010 in relation to the Business Plan, and specifically the transformation, efficiency and stop/reduce options outlined therein to achieve a balanced budget, taking account of any feedback from consultation; and

(c)        provide guidance to the Directors on further changes or service options to be explored over the coming weeks.

The Convener circulated an amended version of the report which had highlighted the options in green, amber, red or grey.  Where an option was green, it was recommended that it be taken; where it was amber, it was recommended that a further report be submitted through the priority based budget process with additional information on the impact of making the saving or alternative means of achieving it; where it was red, it was recommended that it should not be accepted at this time but that it may be revisited prior to budget setting day; where it was grey, it was recommended that it be noted that the option had yet to be considered. 

Appended to this circulation was a further note that listed a number of exceptions, which proposed that the Council  (i)  permit the Chief Executive to decide on management structure savings (ACC_S018);  (ii)  review the alignment of Committees to the statutory minimum in 2012 (CG_LDS_07b);  (iii)  reduce by 5% the remuneration for Senior Councillors, the Council Leader and the  ...  view the full minutes text for item 14.

With reference to article 19 of the minute of its previous meeting of 28 September, 2010, the Committee had before it a report by the Head of Finance which provided an update on the progress across all Services on projects within the 2010/11 Non Housing Capital Programme, as at 31 October, 2010; and detailed progress to date on reviewing and developing the programme for 2011/12 and beyond.

Appendix 1 to the report outlined the Non Housing Capital Programme projects which related to this Committee, and provided for each (1)  the total approved budget;  (2) adjustments and carry forward from 2009/10;  (3)  the total budget for 2009/10;  (4)  the minimum amount of spend required for 2010/11 (as determined by the Service);  (5)  actual spend as at October, 2010; and  (6)  the estimated budget.

Appendix 2 to the report detailed projects funded from the capital fund, and provided for each  (1)  the budget;  (2)  the total spend to date;  (3)  the underspend or overspend associated with the project;  (4)  the funding required for the project; and  (5)  comments from officers where appropriate.

The Committee resolved:-

(i)         to note the current position on the Non Housing Capital Programme for 2010/11 and future years; and

(ii)        to instruct the Head of Finance and the Head of Asset Management and Operations to continue to update the Committee, in consultation  with the Directors, on the overall position and projected outturn of the Non Housing Capital Programme.

With reference to article 14 of the minute of its previous meeting of 28 September, 2010, the Committee had before it a report by the Head of Finance which advised on the projected outturn and financial position for the Council for the financial year 2010/11.

Appendix A to the report provided a financial statement which highlighted that the Council was managing a risk of £3.8 million in relation to the current outturn position varying from budget. Further to the decision taken at the meeting of Council of 2 November, 2010 (article 2 refers), the report explained that the additional costs associated with the payment of the increment from 1 April, 2010, were to be met this financial year. The 0.65% national pay award was also included within the projections, which was estimated to be a cost of £1 million across the Council.

The Social Care and Wellbeing Service were still reporting an underspend (of £2.3 million), due mostly to an under commitment of demand led budgets, which was offset in part by a reduction in grant income. It was noted that the demand and needs led nature of the Service posed a constant risk for cost pressures to arise.

Due to the previously reported problems regarding the homelessness situation and the impact on the Corporate Governance budget (due to the difference in housing benefit against subsidy received), it was felt that this strain should be shown against the Housing and Environment budget. There was also a pressure on the generation of £0.7 million of income from the repairs fund and Housing Revenue Account, which is based on the experience of last year’s budget, whereby there were reduced recoveries.

The Education, Culture and Sport Service reported that there was now a shortfall in the value of budget that was available to pay for the school catering service, and at present it was forecast to be a £1.5 million cost, mainly due to the full implementation of equal pay and modernisation. A corporate approach was being taken to mitigate this position. The Service was also experiencing problems due to teachers’ long term absence and the costs arising from the out of authority placement of children.

The report concluded that an estimate for an additional sum had been included to cover further capital financing costs in the current year, based on the fact that the funding available for capital expenditure is less than the full capital programme, and there were continuing risks that the necessary slippage could not be achieved.  

In response to questions from members, the Head of Asset Management and Operations advised that the Council was currently spending approximately £30,000 per day on salt and a further £10,000 per day on staff costs, throughout this extended period of adverse weather.

The Committee resolved:-

(i)         to note that should the projected outturn be reflected by the accounts at the end of the year, there would be a reduction in the General Fund balance of £0.2 million;

(ii)        to recognise that the  ...  view the full minutes text for item 16.

With reference to article 16 of the minute of its previous meeting of 28 September, 2010, the Committee had before it a report by the Head of Finance which presented information on the income and expenditure of the Common Good budget for six months to 30 September, 2010, and the estimated outturn for the year.

By way of background the report advised that the approved budget for the Common Good for 2010/11 was £450,000; and the estimated outturn for the year to 31 March, 2011 was £430,000, which was a favourable movement of £20,000 when compared to the budget. A financial statement in this regard was appended to the report.

The report concluded that this gave projected cash balances of £5.3 million as at 31 March, 2010, and explained that the Council had previously adopted an underlying principle that the cash balance should be no less than £4.8 million after adjusting for the Greenfern Development Site, as at 31 March, 2011, utilising the consumer price index as a basis for calculating indicative cash balances.

The Committee resolved:-

(i)         to note the income and expenditure position as at 30 September, 2010 and the estimated outturn for the year; and

(ii)        to note the estimated cash balances as at 31 March, 2011 of £5.3 million, based on current forecasts.

With reference to article 16 of the minute of its meeting of 10 December, 2010, the Committee had before it a report by the Head of Finance which presented financial information and the trustees’ annual report relating to the charitable trusts administered by the Council, both of which had to be submitted to the Office of Scottish Charity Register.

The report reminded members that steps were being taken to amalgamate all the trusts with assets below £20,000, and explained that limited progress had been made on this due to other corporate priorities taking precedence.

Appendix A to the report comprised the trustees’ report and basic receipt and payments accounts in respect of those trusts with income under £100,000 per annum; and appendix B to the report contained the trustees’ report and fully accrued accounts in respect of the Lands of Torry.

The Committee resolved:-

(i)         to approve the submission of the trustees’ report and basic receipt and payments accounts in respect of those trusts with income under £100,000 per annum (as per appendix A), to the Office of Scottish Charity Register;

(ii)        to approve the submission of the trustees’ report and fully accrued accounts in respect of the Lands of Torry (as per appendix B), to the Office of Scottish Charity Register; and

(iii)       to note the position in relation to the reorganisation of the trusts.

With reference to article 17 of the minute of its meeting of 17 June, 2010, the Committee had before it a report by the Head of Finance which provided an update on Treasury Management activities undertaken so far this year, and advised of the challenges going forward. In particular the report advised on (1) long term borrowing (including information on changes made to the Public Works Loans Board); (2) short term borrowing; and (3) investments.

Appended to the report was the revised counterparty list. 

The Committee resolved:-

(i)         to note the Treasury Management activities undertaken in 2010/11;

(ii)        to refer this report to the meeting of Council of 15 December, 2010, for its consideration; and

(iii)       to recommend to Council that it approves the revised counterparty list (as appended to the report).

            DECLARATION OF INTEREST

            During discussion of the following item of business, Councillor             John West declared an interest by virtue of his position as a          Director of Sport Aberdeen, but did not feel it was necessary to            withdraw from the meeting.

With reference to article 15 of the minute of its meeting of 17 June, 2010 the Committee had before it a report by the Director of Corporate Governance which provided an update on progress being made in relation to the roll out of the Accord scheme. 

The report provided an update on (1) smart card migration; (2) the launch of sQuid; (3) using the internet for making payments via the sQuid; (4) free schools meals revalidation; (5) operational performance; (6) ACE club membership and golf passes; (7) access control for Council staff, using the Accord Card; (8) sQuid as a payment method at the Town House restaurant; (9) the possibility of pre ordering lunch at the Town House restaurant; and (10) time and attendance recording utilising a smart card staff ID badge at Crown House and the AECC.

The Committee resolved:-

(i)         to note the progress and developments being made in the advancement of the Accord scheme;

(ii)        to approve the change of one site for sQuid payment, from a Sport Aberdeen site, to the Town House restaurant, subject to the outcome of the Five Year Business Plan of Council; 

(iii)       to approve the trial of an online preordering facility for the Town House restaurant utilising a sQuid purse on the Accord Card and/or smart staff ID badge, subject to the outcome of the Five Year Business Plan of Council; and

(iv)       to instruct officers to report back on a rapid roll out of the Accord Card to all citizens of Aberdeen city, with the fees and charges for the facilities of this Council to be discounted for Accord Card holders; and further, to investigate the possibility of including any partner organisations in this rapid roll out.

The Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which requested that members endorse the promotion of external funding for supporting the delivery of the South Aberdeen Coastal Regeneration Project.

The report presented detailed information on the East Grampian Coast Partnership, specifically around its budget and priorities. The report explained that although the Council had assisted with funding in the past, but it was no longer in a position to provide funding.

The Committee resolved:-

to endorse the promotion of external funding from Aberdeen Greenspace, in order to support the delivery of the South Aberdeen Coastal Regeneration Project.

With reference to article 22 of the minute of meeting of its previous meeting of 28 September, 2010 the Committee had before it a report by the Director of Education, Culture and Sport which advised of the recommendations of the Youth Activities Grant Funding Group for the third round of funding for the financial year 2010/11, which had a closing date of 28 September, 2010.

The report advised that thirteen new applications had been received this round; ten recommendations for funding had been made by the Youth Activities Grant Funding Group; that the total sum recommended for approval was £11,658.68, and that if the recommendations outlined were approved there would be an uncommitted budget of £1,586.72 remaining.

Appended to the report were details of the applications received and the recommendations made by the Youth Activities Grant Funding Group.

The Committee resolved:-

(i)         to ratify the recommendations of the Youth Activities Grant Funding Group and to therefore approve funding to the following organisations:

            and

(ii)        to instruct the Director of Education, Culture and Sport to arrange for the funds to be distributed accordingly.

Reference was made to article 33 of the minute of meeting of this Committee of 17 June, 2010, whereby it was agreed to cease cash handling facilities at the Bucksburn and Peterculter Area Offices from 1 April, 2011. The Committee now had before it, a progress report by the Director of Corporate Governance.

The report (1) outlined the concerns of staff surrounding the proposal to cease cash handling at the Podium; (2) advised that other Councils (namely Fife Council and Moray Council) had closed their cash offices in 2008; (3) suggested that there were no alternative premises in the city centre that could be used for cash handling purposes, in terms of timescale and costs; and (4) highlighted that a survey had been issued to both private and Council households which questioned if customers would consider paying by other methods if cash offices were to close, with 85% of respondents confirming that they would continue to pay by cash if this were possible.

The report also alluded to the fact that a petition had been received in relation to Peterculter Area Office. At this point, the Convener reminded members that a decision to cease the cash handling facilities at this office had already been taken.

The report recommended:-

that the Committee –

(a)       agrees that the cash facilities at Tillydrone office will cease; and

(b)       agrees that there will be no replacement city centre cash office for the Podium.

The Convener, seconded by the Vice Convener, moved:

            that the report’s recommendations be approved.

Councillor Graham, seconded by Councillor Crockett, moved as an amendment:

that the Committee approves recommendation (a); and that officers be instructed to prepare a further report detailing the money taken at the Podium and including an Equality and Human Rights Impact Assessment on the proposal to close the Podium, in order to ensure that those most in need of a city centre cash point are not deprived of this.

On a division, there voted, for the motion (10) – the Convener; the Vice Convener; and Councillors Clark, Cormack, Dean, Dunbar, Leslie, May, McCaig and John West; for the amendment (5) – Councillors Cooney, Crockett, Farquharson, Graham and Young.

The Committee resolved:-

(i)         to adopt the successful motion; and

(ii)        to instruct officers to provide Councillor Graham with details of the money taken at the Podium.

Reference was made to article 39 of the minute of meeting of this Committee of 11 March, 2010whereby Aberdeen Greenspace Trust’s application for third party contributions under the Landfill Communities Funding was rejected as it did not provide an expenditure plan for all unused funds.  The Committee had before it on this day a report by the Director of Enterprise, Planning and Infrastructure which presented Aberdeen Greenspace Trust’s five year business plan (2010/11 – 2014/15), which showed a reserve of £640,535 in March, 2012.

The report advised that the five year business plan highlighted that the Trust aimed to increase external funding resources; employ a project funding officer; and improve partnership working with businesses, community and the Council. Through these aims, the Trust intended to broaden its scope of projects and increase its range of work, working in partnership with Council and other bodies to source, or lever in additional funding and reduce the dependency on Landfill Community Funding.

The report continued to explain that the Trust had set a target of raising a minimum of £100,000 per year external funding, for specific projects. These projects were identified in the business plan. The recruitment of a Project Development Officer would be investigated as a volunteer, secondment or through a short term contract. This would entail working closely with the Council and partner organisations to identify potential projects and to ensure that the projects are delivered on time and that external grant conditions are met.

The Trust recognises that Landfill Communities Funding is still an important funding stream, and at its meeting on 13 February, 2007 the Trust’s Board decided that it would seek new environmental projects that would make a significant contribution to the charitable objectives of the Trust, on which to spend the reserve, while at the same time seeking other income streams to support its work.  It was agreed at this meeting to spend £145,000 on projects annually over and above the routine costs of the organisation, which would reduce the reserve over the next 10 years.

The Committee resolved:-

(i)         to note the content of the five year business plan of Aberdeen Greenspace Trust; and

(ii)        to approve the allocation of third party contribution of Landfill Communities Funding to Aberdeen Greenspace Trust.

With reference to article 43 of the minute of its previous meeting of 28 September, 2010, the Committee had before it the latest in a series of reports by the Director of Enterprise, Planning and Infrastructure which provided an update on progress with the implementation of the Corporate Asset Management System (CAMS).  The report advised on progress to date on (1) the non housing property module; (2) the Confirm / efinancials link; (3) the grounds module implementation; (4) invoices; and (5) the Confirm upgrade.

The Committee resolved:-

(i)         to note the progress made to date in replacing the existing stand alone systems with the Corporate Asset Management System;

(ii)        to approve the proposal to complete the original project and establish future contract management; and

(iii)       to request that the Director of Enterprise, Planning and Infrastructure report back on progress at the next meeting of 1 February, 2011.

With reference to article 28 of the minute of meeting of the former Resources Management Committee of 10 March, 2009, and article 10 of the minute of meeting of Council of 18 August, 2010, the Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which provided an asset management perspective on the recently published ‘Aberdeen Local Development Plan: Proposed Plan: September 2010’.

At its meeting of 10 March, 2010, the Committee had instructed the then Head of Resources Development and Delivery to make representations to have sites included in the Aberdeen Local Development Plan. The report advised as to the outcome of each property in this regard.

Appended to the report was further information in relation to all other Council owned sites and commentary on the current status and plans for each site.

The report recommended:-

that the Committee –

(a)       note the status of the proposed Local Development Plan in relation to Council owned land;

(b)       to authorise the Head of Asset Management and Operations, in consultation with the Convener and Vice Convener of this Committee, to make appropriate further representations in relation to land in which the Council has an interest; and

(c)        to note that a further report will be presented at the next meeting to identify future actions required to further promote and advance Council sites, including initial budget requirements.

Clarity was sought in relation to recommendation (b), and the Head of Asset Management and Operations advised that this would only happen if officers did not have an opportunity to report back to Committee due to the timescales involved.

Further to a question from members, the clerk to the Committee confirmed that by approving recommendation (a), this was in no way supporting, or suggesting support for, the Local Plan. 

The Committee resolved:-

to approve the recommendations as contained within the report.

The Committee had before it a report by the Director of Housing and Environment which requested that authority be granted to officers to invite tenders for the provision of forestry consultancy services.

By way of background, the report advised that the Council owned approximately 400 hectares of woodland across the city; provided details of the projects currently being progressed; and detailed the skills and expertise that would be required of any consultant.

The report author estimated that the consultant would be required for eight calendar days per month, at around £350 per day, and would generate around £750,000 (for example, through grant income and timber sales).  It was made clear in the report that the tender documentation would state that any consultancy fees and expenses would have to be absorbed by external and grant funding, ensuring that all woodland related projects and activities would be delivered at no cost to the Council.

The report recommended:-

that the Committee –

(a)       instructs officers to invite tenders for the provision of forestry consultancy services for the period 2010 – 2013; and

(b)       instructs officers to report back to Committee in April, 2011 on progress made.

The Head of Legal and Democratic Services at this point suggested that it would be more appropriate for the tender documentation to state the period 2011 – 2014.

The Committee resolved:-

(i)         to instruct officers to invite tenders for the provision of forestry consultancy services for the period 2011 – 2014; and

(ii)        to instruct officers to report back at the meeting of this Committee of 21 April, 2011 on progress made.

The Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which advised of the security measures that had been put in place at the site of the old International School of Aberdeen at Fairgirth, Milltimber, Aberdeen.

The report provided detail as to how the situation had come to pass, with the International School being situated on the preferred Aberdeen Western Peripheral Route; and explained that the school had now transferred its facilities to a new site, with the Fairgirth site now in the ownership and control of Transport Scotland.  The report continued to explain that since there had been three legal challenges served on Scottish Ministers, the building could not be demolished until the challenges had been resolved, which resulted in the building having to be made secure for a much longer period of time than first envisaged.

The report advised that the security of the site had been carried out under a temporary arrangement, whereby the International School’s contractors were carrying out their contracted security and fire alarm monitoring duties, but that it had been agreed that this agreement would end on 30 November, 2010.  The contractors would at this date be replaced by contractors working directly for the Council.

As arrangements had to be put in place to continue the existing security and fire alarm monitoring arrangements, the Chief Executive, the Head of Legal and Democratic Services and the Head of Finance had agreed to the implementation of Standing Order 1(6)(b) (Contract and Procurement) to allow for an exemption from the provisions of these Standing Orders in relation to the issuing and acceptance of quotes for work.  A contractor had subsequently been appointed to maintain the existing intruder and fire alarm systems at an estimated cost of £10,000.  A further contract had been let to provide security services at the site including carrying out twice daily inspections on campus, and some key holder duties, the cost of which was estimated at £16,000.

The Committee resolved:-

to note the fire alarm monitoring and site security measures that had been put in place at the Fairgirth site.

The Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which advised members that officers had received a verbal offer of a grant of £1 million from the Scottish Government, for the extension of the Combined Heat and Power (CHP) district heating network in the city.

The report provided a background of the scheme, and further outlined the Scottish Government’s commitment to CHP district schemes.

The report detailed the verbal offer made by the Scottish Government, as follows:

• The funding would be transferred in full in the current financial year.
• It could not be used to displace any of the funding already committed for the extension to the eight multi storey blocks at Seaton, ie, the Council would have to demonstrate additionality.
• The Council would have to achieve expenditure, on the already committed extension to the eight multi storey blocks in Seaton, of at least £1million by 31 March 2011.
• The £1million slippage on the Council’s Housing expenditure in 2010/11 is to be spent on the extension of the district heating network as soon as practically possible in 2011/12. This recognises the time required to determine the most cost effective route(s), carry out design, secure planning permissions, wayleaves, formal agreement with Aberdeen Heat and Power etc, and this expenditure would be in addition to what the Council has already committed in 2011/12.

Appended to the report were (1) extracts from the Energy Efficiency Action Plan for Scotland relating to district heating; (2) location plans as submitted to the Scottish Government; and (3) costings and carbon savings as submitted to the Scottish Government.

The Committee resolved:-

(i)         to authorise the acceptance of the grant from the Scottish Government, as long as the conditions of the formal grant offer create no financial risk for the Council;

(ii)        to instruct officers to identify the most economically beneficial routes for the district heating extension, including extensions in Seaton, and from the Beach Ballroom towards the city centre;

(iii)       to agree in principle to enter into an Installation Agreement with Aberdeen Heat and Power covering the capital costs of them installing the district heating extension;

(iv)       to agree in principle to provide a licence and wayleaves to Aberdeen Heat and Power for the use of Council owned land through which the mains distribution pipes will run; and

(v)        to thanks Janice Lyon (Energy Manager) for all of her efforts in securing this agreement.  

            DECLARATIONS OF INTEREST

The Convener, Councillor Dunbar and Councillor Farquharson declared an interest in the subject matter of the following article by virtue of their positions as Grampian Police Board Members. Councillors McCaig and John West also declared interests due to their positions on the same Board as substitute members. None of the Councillors felt it was necessary to withdraw from the meeting during discussion of this item.

With reference to article 24 of the minute of its meeting of 10 December, 2009, the Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which provided an update on the development of a combined business case for a joint contact centre at Frederick Street, between the Council and Grampian Police.

The report detailed the background of the project, and advised that the business case scope would consider the integration of a joint contact centre, including
(1) interlinked telephony;  (2)  maintaining and expanding customer service provision for Council Services;  (3)  Grampian Police non emergency contacts;
(4) combined alarms monitoring services;  (5)  increased resilience for combined Grampian Emergency Planning to prepare for, respond to, and recover from emergencies; and  (6)  services currently provided on behalf of other organisations.

The report advised that consideration was being to the service delivery options available for a joint contact centre, and outlined the options as follows:

·        Maintain the status quo with the Council continuing to progress its customer contact centre at Frederick Street, whilst Grampian Police maintains its contact centre at Bucksburn, or makes alternative arrangements independently;

·        The Council and Grampian Police co-locate their customer contact centres within the same premises at Frederick Street, but continue to operate separately; or

·        The Council and Grampian Police combine operations at Frederick Street to provide a joint contact centre that optimises resources and delivers an enhanced customer service.

The Committee resolved:-

to note the progress on the development of a business case in conjunction with Grampian Police for a joint contact centre at Frederick Street between the Council and Grampian Police.

            In accordance with the decision recorded under article 1 of this minute, the following items were considered with the press and public excluded.

            DECLARATION OF INTEREST

Councillor Leslie declared an interest in the subject matter of the following article due to the fact that he was a member of a bowling club in Aberdeen. He did not feel it was necessary to withdraw from the meeting.

The Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which described the present sub lease of the Bon Accord Indoor Bowling Centre by the Bon Accord 2000 Indoor Bowling Club and advised that the Bowling Club had requested that the Council grant them a new lease, on revised terms and conditions, as outlined within the report.

Having already agreed to hear a deputation on this matter at an earlier point in the meeting (article 2 of this minute refers), the Committee heard from Mr Cameron Millar, Treasurer of the Bowling Club, who outlined a number of concerns he had in relation to the content of the report, and disputed a number of points in this regard.  Mr Millar further queried a number of figures mentioned throughout the report, and claimed that he had no knowledge of how the report author had determined these figures; he challenged the way in which officers had presented information relating to outstanding debt and intimated that the Bowling Club had experienced problems in obtaining invoices from the Council over a long period of time.

Members asked a number of questions of Mr Millar and of relevant officers.

The report recommended:-

that the Committee -

(a)       refuse the request of the Bon Accord 2000 Indoor Bowling Club to be granted a new five year sub lease from 1 May, 2011;

(b)       recover possession of the property on 30 April, 2011 and take appropriate action to recover any monies due to the Council, in terms of the present sub lease provisions;

(c)        authorise the Head of Asset Management and Operations to investigate appropriate alternative uses for the property and report to an appropriate meeting of this Committee before the summer recess in 2011; and

(d)       authorise the Head of Communities, Culture and Sport to offer the assistance of her staff to facilitate dialogue between the Bon Accord Indoor Bowling Club and the Aberdeen Indoor Bowling Centre at Summerhill on a more sustainable future for indoor bowling in Aberdeen.

The Committee resolved:-

(i)         to refer the report to the meeting of Council of 15 December, 2010; and

(ii)        to instruct officers to provide further information and clarity on the points raised during the discussion, particularly on the cost of each option for the Council.

With reference to article 25 of the minute of meeting of the Enterprise, Planning and Infrastructure Committee of 9 November, 2010, the Committee had before it recommendations from that Committee to support proposals in a report by the Director of Enterprise, Planning and Infrastructure which summarised progress on the future funding and development of the Aberdeen Exhibition and Conference Centre Ltd (AECC). The Enterprise, Planning and Infrastructure Committee had been invited to make recommendations to today’s meeting on proposals for future activities which were designed to place AECC on a more sustainable financial footing.

The report reminded members of the previous decisions taken by the Council on 18 August, 2010 (article 17 of the minute of meeting refers).  Officers now sought to address outstanding issues by separating the operations of AECC from the management of the land and property assets within and around the AECC site, in order to focus the company’s attention on the need to manage, run and maintain an efficient and sustainable exhibition and conference venue; transferring all property and land assets currently owned or leased by AECC Ltd to the Council, so that the Council assumed full responsibility for the future development of these assets; and suggesting a possible way forward for developing the land and property assets, through the creation of a joint venture development company charged with developing the assets according to an agreed plan, possibly using funding raised through the creation of a Local Asset Backed Vehicle (LABV).

The report advised that, were this Committee to approve the recommendations contained within the report, it was anticipated that a clearer focus on the operation, management and maintenance of an exhibition and conference centre, without the distractions caused by the need to develop property and land assets, would enable AECC Ltd to have an even greater focus on generating profits from events, conferences and ancillary services.

The report also suggested how these assets might be better developed, and the Council’s debt reduced in the process, by creating a joint venture development company with private sector developers/investors and by potentially attracting private funds into a Local Asset Backed Vehicle.  The exact nature of any proposed joint venture development company or LABV would need to be further investigated and appropriate reports submitted to Committee before any decisions were taken as to whether this provided the best means for developing the property and assets within and around the AECC.

The current operating situation of the AECC was described in appendix 1 to the report.

The report recommended:-

that the Enterprise, Planning and Infrastructure Committee –

(a)       note the recent decision of the Finance and Resources Committee (article 40 of the minute of meeting of 28 September, 2010, refers) to invest £1.068 million, as part of the Council’s capital programme (£368k from this year’s budget and £700K from next year’s budget), in new hard standing to accommodate the erection of temporary expansion facilities for future Offshore Europe exhibitions (subject to planning approval being received) and to instruct officers  ...  view the full minutes text for item 32.

With reference to article 37 of the minute of its previous meeting, the Committee had before it a report by the Head of Finance which advised on the current positions and updated forecast outturns for the financial year 2010/11, for the Council’s trading activities.

Appended to the report were figures that advised on the anticipated full year income and expenditure for each of the services identified by the Council as a significant trading activity under the Local Government (Scotland) Act 2003, with similar information also provided for non significant activities.

The Committee resolved:-

(i)         to note that the forecast outturn to 31 March, 2011 showed a projected overall surplus for the significant trading activities in the order of £7.5 million, compared with a budgeted surplus of £7.7 million;

(ii)        to note that the provisional full year results indicated that the financial objective for each significant trading activity would be achieved, before allowing for the effects of pension adjustments required under the provisions of  Financial Reporting Standard number 17 (FRS17), the value of which was unknown at this time;

(iii)       to note that following a previous decision by Committee (article 32 of the minute of meeting of this Committee of 12 November, 2009 refers), a review of the Council’s trading activities had been undertaken earlier in 2010 and as a result of this review, the building cleaning and catering services were found to no longer meet the criteria for inclusion as non significant trading activities (article 20 of the minute of meeting of this Committee of 11 May, 2010 refers); and accordingly, that both of these services had been moved to the General Fund for 2010/11; and

(iv)       to note that, whilst there was no statutory requirement for fleet services, as the Council’s sole non significant trading activity, to meet the best value financial objective, an overall surplus of £114,000 was currently forecast for the year for this activity.

DECLARATIONS OF INTEREST

Councillors Clark and Dean declared an interest in the subject matter of the following article by virtue of their positions as Trustees of Aberdeen International Football Festival Trust, and withdrew from the meeting prior to consideration of the report.

The Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which advised as to the current position of the finances of Aberdeen International Football Festival.

The Committee resolved:-

(i)         to agree to pay the Council’s share of the deficit identified in the report from the Corporate Governance underspend;

(ii)       to further agree that the Council does not provide funding to Aberdeen International Football Festival for one year, in order to give the Trustees time to take a view as on the future direction of the Festival; and

(iii)       to instruct officers to report back after the Trustees have met to discuss the way forward.

The Committee had before it a report by the Director of Enterprise, Planning and Infrastructure.

At this juncture the Convener reminded members as to why it was imperative that no details of this report be made public at this point.

It had been intimated to officers that a particular document required to be signed before the year’s end. The Head of Legal and Democratic Services advised that by signing this agreement, the Council would be legally committing to financial expenditure.

Members were of the view that the final costs of the matters discussed in the report would require to be approved at Committee, and the Convener reminded officers that an Urgent Business Committee could be called if necessary.

The Committee resolved:-

(i)         to approve recommendations 1 and 3 as contained within the report;

(ii)        to not approve recommendation 2 as contained within the report; and

(iii)       to confirm that any costs require to be agreed by a committee of Council.

Reference was made to article 42 of the minute of the previous meeting of the Committee of 28 September, 2010, at which time there was under consideration the latest verbal update provided by the Head of Planning and Sustainable Development regarding the progress of the works being carried out to The Green area of the city centre under the Townscape Heritage Initiative Project, with particular reference to the concerns expressed about access to the area and disruption to local businesses, as a result of the works.   The resolution of the Committee at that time was to instruct the Head of Planning and Sustainable Development to seek to recover any additional costs that were incurred by the Council as a result of the works being undertaken at Carmelite Lane.

The Committee now heard the Head of Planning and Sustainable Development who advised as regards progress since the aforementioned meeting.  Dr Bochel indicated that the work in Carmelite Lane should be completed at an early date, and continued that there was a burst sewer that the Council had offered to repair, but Scottish Water had advised that they wished to undertake this work themselves. On the subject of compensation, Dr Bochel highlighted that there was no mechanism in place for the Council to claim this.

The Committee resolved:-

(i)         to request that the outcome of the ‘lessons learned’ meeting be shared with the local members, the Convener and Vice Convener of this Committee, and the Leader of the Council; and

(ii)        to note that this would be the last verbal update provided on this matter.

The Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which advised that an approach had been made to the Council from Trustees of Dyce Sports and Leisure Development Trust in relation to 16 acres of Council owned land at Pitmedden Road, Dyce, which they currently lease.

The Committee resolved:-

(i)         to defer consideration of this report until the next meeting of this Committee of 1 February, 2011; and

(ii)        to instruct officers to organise a meeting between Dyce Sports and Leisure Development Trust, officers and local members prior to the next meeting of this Committee.

Reference was made to article 34 of the minute of meeting of this Committee of 12 November, 2009, at which time officers were instructed to conclude the missives for the sale of the property 17 Affleck Street, Ferryhill. The Committee had before it on this day, a report by the Director of Enterprise, Planning and Infrastructure which advised that this had not been possible, and that the property had subsequently been remarketed, with a closing date of 9 November, 2010. 

Appended to the report were details of the offers received.

The Committee resolved:-

(i)         to instruct officers to accept the highest offer, submitted by Andersonbain,  on behalf of Mr Steven Harry; and

(ii)        to instruct the Head of Legal and Democratic Services to conclude missives for the sale of the property 17 Affleck Street, incorporating various qualifications as are necessary to protect the Council’s interests.

Reference was made to article 25 of the minute of the previous meeting of this Committee of 28 September, 2010, whereby, amongst other things, members instructed the Head of Asset Management and Operations to report to the next meeting on the potential disposal of Shops and Ground Lease (Shops). The Committee had before it on this day, a report by the Director of Enterprise, Planning and Infrastructure in accordance with the previous instruction.  

By way of background, the report advised that the Council owned 131 shops that were, or had been, leased to third parties. The report suggested that the shops be split into three groupings as follows: (1) properties not suitable for sale; (2) properties considered suitable for retention, in order for further investigations to be undertaken; and (3) properties considered suitable for sale. The report further detailed a list of properties with repair issues, which required to be rectified in order to mitigate the possibility of exposing the Council to a potential repairs dispute with a new owner.

The Committee resolved:-

(i)         that the shops and shop ground leases contained within appendix A be retained in the ownership of the Council;

(ii)        that the shops and shop ground leases contained within appendix B be held for further investigation, with a report on the proposed future of these property leases to be submitted for the consideration of this Committee in due course; and

(iii)       that the shops and shop ground leases contained within appendix C be advertised for sale, in a phased programme over the next few years, the timing of which has to be determined by the Head of Asset Management and Operations, to reflect property market conditions and to avoid over supply.

Reference was made to article 51 of the minute of meeting of this Committee of 17 June, 2010 and article 33 of the minute of the previous meeting of this Committee of 28 September, 2010, whereby a number of decisions on the subject of staff houses were taken. The Committee had before it on this day a report by the Director of Enterprise, Planning and Infrastructure which addressed a number of the resolutions from the aforementioned meetings.

The report (1) advised of the vacant houses not required for future use as staff houses, and provided further information in this regard; (2) detailed the outcome of the consultation that had been undertaken with tenants of staff houses affected by the 3Rs project, or the closure of adjoining Council properties; (3) provided information on the situation in relation to the houses that were currently occupied by retired non janitorial staff and/or staff who had transferred to the 3Rs operating company; and (4) advised of the legal advice officers had received from the Head of Legal and Democratic Services in relation to tenancy rights in circumstances where staff were occupying former tied houses.

Members asked a number of questions in this regard, and the Head of Legal and Democratic Services confirmed that if a property was under a Scottish Secure Tenancy, that a tenant would have the right to buy their property from the date they commenced paying full rent.

The Committee resolved:-

(i)         to have regard to the views expressed by each tenant consulted on whether they would wish to purchase on the appropriate basis and at the appropriate valuation the lodge currently let to them, or whether (subject to the matter being referred to the Housing and Environment Committee at the appropriate time for its consideration) they would wish the lodge and the tenancy to be transferred to the Housing Revenue Account;

(ii)        to declare the five lodges as follows as surplus to requirements:

·        Skene Square

·        Harlaw Academy

·        Grammar, Skene Street

·        Ashley Road

·        Cornhill, Beechwood Road; and

(iii)       to instruct the Head of Asset Management and Operations to take, or arrange for the taking of, any such action as may be necessary in order to implement the above recommendations.

The Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which advised of the situation surrounding the lease of a particular Council property in the beach area. The report advised that the lease conditions had been breached, and requested that the lease be formally irritated. 

The Committee resolved:-

(i)         to instruct the Head of Legal and Democratic Services to take appropriate legal action to formally irritate the lease; and

(ii)        to instruct that in future when lease conditions are breached for a period of one year, that the cases be reported to Committee for consideration.   

Reference was made to article 50 of the minute of the previous meeting of this Committee of 28 September, 2010, at which time members requested that officers re-examine the costs required to relocate the Mastrick Young People’s Project to the former Hillylands Centre. The Committee had before it on this day a report by the Director of Enterprise, Planning and Infrastructure which presented two options for the refurbishment of the former Hillylands Centre, and further suggested that the £379,993.04 outstanding capital repayments on the building be written off in order to reduce to a reasonable level, the ongoing revenue costs associated with running the centre.

The Committee resolved:-

(i)         that £160,000 from the Non Housing Capital Programme be utilised for the building works at the former Hillylands Centre in order to accommodate the Mastrick Young People’s Project;

(ii)        given the circumstances on this specific occasion, to approve the writing off of the outstanding debt on the former Hillylands Centre, with this being funded from the capital receipt from Summerhill; and

(iii)       to instruct officers to attempt to reduce the overall whole life costs of the project where possible.

Reference was made to article 25 of the minute of the previous meeting of this Committee of 28 September, 2010 whereby officers were instructed to report back on whether the business centres in the city were fulfilling functions for which they were originally developed. The Committee now had before it a report by the Director of Enterprise, Planning and Infrastructure which explored the instruction of the aforementioned meeting.

By way of background, the report advised that the Council owned and managed two business centres (Granitehill Enterprise Centre and Aberdeen Business Centre), which were acquired and developed in the 1980s by the then City of Aberdeen District Council with the aim of providing accommodation that was not available in the local property market, and to foster economic development. The report specified the capacity, lease conditions and occupation of each of the business centres, and concluded by presenting options for the Committee to consider in relation to their futures.

The Committee resolved:-

(i)         to agree that Granitehill Enterprise Centre be retained as an operational business centre for as long as the adjacent industrial site is held vacant, pending potential redevelopment; at the point when the adjacent site is advertised for sale or lease on the open market, to agree that Granitehill business centre should close, with the building being offered for sale or lease;

(ii)        that in the meantime, to authorise the Head of Asset Management and Operations to consult the tenants of Granitehill Enterprise Centre, and consider and implement any strategy that at least covers the Council’s costs, and maximises net revenue income from the property;

(iii)      to instruct officers to investigate local demand for a business centre, and identify an alternative site in the event of Granitehill closing; and

(iv)       to agree that Aberdeen Business Centre be retained as either a business centre or managed offices, and to authorise the Head of Asset Management and Operations to consult the tenants, and consider and implement any strategy that maximises the Council’s net revenue income from the property. 

- COUNCILLOR KEVIN STEWART, Convener.