Agenda and minutes

The agenda and reports associated with this minute can be located at the following link:

http://committees.aberdeencity.gov.uk/ieListDocuments.aspx?CId=146&MId=1929&Ver=4

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

The Committee resolved:

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 8.1 of the agenda (article 25 of this minute) onwards so as to avoid disclosure of information of the class described in the following paragraphs of Schedule 7(A) to the Act: article 25 (paragraph 8), article 26 (paragraph 6), article 27 (paragraph 6), article 28 (paragraph 10), article 29 (paragraphs 6 and 9), article 30 (paragraphs 6 and 9), article 31 (paragraphs 6 and 9), article 32 (paragraph 6), and article 33 (paragraphs 6 and 9).

The Committee had before it the minute of its previous meeting of
29 September, 2011.

The Committee resolved:

(i)         in relation to the second resolution under article 4 of the minute, to request that the update on Granitehill be recirculated to members of the Committee; and

(ii)        to approve the minute as a correct record.

The Committee had before it the minute of meeting of the Lord Provost Sub Committee of 28 April, 2011.

The Committee resolved:

to note the minute.

The Committee had before it the minute of meeting of the Lord Provost Sub Committee of 7 July, 2011.

The Committee resolved:

to note the minute.

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

The Committee resolved:

(i)         to agree to combine items 11 (Joint Customer Contact Centre) and 22 (0845 Numbers);

(ii)        to delete items 14 (Conditions and Suitability Programme) and 18 (Estate Contracts Managements – Legionella Preventative Maintenance) from the business statement;

(iii)       to agree to combine items 17 (Funding Opportunities for Delivering  Projects) and 12 (General Fund Budget);

(iv)       to request that confirmation be provided to members in April, 2012 that all Legionella Preventative Services are being provided inhouse at this date;

(v)        to note that items 20 (Community Toilet Scheme) and 21 (Kaimhill Community Facilities) were now part of the budget process, and therefore to delete these items from the list;

(vi)       to note that a number of items had been removed from the list further to the decision taken at the previous meeting of 29 September, 2011 (ie to note that the property list managed by the Asset Management team detailed the status of all pending and ongoing property items, and therefore to agree to delete all items relating to property from the business statement on the proviso that the property list be reported each cycle), namely (1) Frederick Street Development Site;
(2) 8 Alford Place; (3) Status of Surplus Education and Other Properties;
(4) Granitehill Site; (5) Review of Shops; (6) Bon Accord Indoor Bowling Centre; (7) Former Cairnfield Community Centre – Future Use; (8) Causewayend School and Lodge; (9) Four Former Group Homes – Marketing; (10) Wallace Tower; (11) Former Victoria Road Primary School; (12) 26 Netherhills Avenue; (13) Area Offices at Bucksburn and Peterculter; (14) Pinewood/Hazledene;
(15) 30 Springfield Avenue; (16) 25 Westfield Terrace; and (17) Broadhill Bar; and

(vii)      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:

to note the updates as contained within the motions list.

‘Council is requested to task officers with carrying out a feasibility study into the economic viability of initiating a Corporate Bond Issue for the purpose of funding new Council houses in the city.

The current economic situation would appear to support interest bearing investments that are financed by non-risk rental proceeds from new build Council houses. As an indication of possible levels of investment, a total investment of £20 million could finance up to 150 new build houses. This would assist the Council in meeting some of its current obligation in respect of those persons on the Council housing waiting list.

Officers are asked to report back on their study findings no later than to the Council Budget meeting in February 2012’.

With reference to article 19 of the minute of meeting of Council of 6 October, 2011, the Committee had before it a motion in the following terms by Councillor Boulton:

“Council is requested to task officers with carrying out a feasibility study into the economic viability of initiating a Corporate Bond Issue for the purpose of funding new Council houses in the city.  The current economic situation would appear to support interest bearing investments that are financed by non risk rental proceeds from new build Council houses.  As an indication of possible levels of investment, a total investment of £20 million could finance up to 150 new build houses.  This would assist the Council in meeting some of its current obligation in respect of those persons on the Council housing waiting list.  Officers are asked to report back on their study findings no later than to the Council Budget meeting in February 2012”.

The Committee heard Councillor Boulton in support of her motion.

The Committee resolved:

that Councillor Boulton’s motion be considered at part of the budget process, with officers reporting back on Corporate Bonds and other options (by way of an option appraisal) at the budget meeting of Council.

Reference was made to article 25 of the minute of meeting of the Housing and Environment Committee of 1 November, 2011 at which time members noted the progress made in registering the six sites (namely Alan Douglas Park, Bucksburn Community Garden, Coronation Park (Peterculter), Kaimhill Residents’ Site, Eric Hendry Park, and Westerton Park (Northfield)) with Fields in Trust for inclusion in the national nominations.  It was noted that some sections of some of the sites did not sit on the Housing Revenue Account, and therefore the report had been referred to this Committee for final approval.

The Committee resolved:

to approve the report for its purpose.

Reference was made to article 26 of the minute of meeting of the Housing and Environment Committee of 1 November, 2011 at which time members approved charges in relation to Pets’ Corner and In Bloom sponsorship for 2012/13, subject to the ratification of this Committee.

The Committee resolved:

to concur with the recommendations of the Housing and Environment Committee, and to note the financial implications accordingly.

Reference was made to article 27 of the minute of meeting of the Housing and Environment Committee of 1 November, 2011 at which time members agreed (1) to instruct officers to apply the proposed charges set out in the appendices A and C to the report; (2) that the statutory maximum fees be applied for petroleum and explosives licensing when the Health and Safety (Fees) Regulations 2012 come into force in the new financial year; and (3) that fees for ships inspections are as suggested by the Association of Port Health Authorities (APHA), and that any changes in the fees recommended by the APHA be applied, all subject to the approval of this Committee.

The Committee resolved:

to concur with the recommendations of the Housing and Environment Committee, and to note the financial implications accordingly.

Members: Please note that the recommendations within this report were approved at the meeting of Enterprise, Planning and Infrastructure.

Reference was made to article 15 of the minute of meeting of the Enterprise, Planning and Infrastructure Committee of 15 November, 2011 at which time, amongst other things, members requested that this Committee give consideration to an increase in financial support from the Common Good Fund to ensure the continued success of Aberdeen’s existing annual events programme and additional activities that grow and develop the city’s events offering.

The Committee resolved:

to approve additional funding from the Common Good Fund as follows:

With reference to article 16 of the minute of its previous meeting of
29 September, 2011, the Committee had before it a report by the Head of Finance which provided information on the current year’s revenue budget to date for the Corporate Governance Service, and advised of any areas of risk and management action being taken in this regard.

The Committee resolved:

(i)         to note the information on management action and risks contained within the report; and

(ii)        to instruct that officers continue to review budget performance and report on Service strategies.

With reference to article 17 of the minute of its previous meeting of
29 September, 2011, the Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which provided an update on progress made in relation to various projects within the Non Housing Capital Programme, previously approved by Council, which were aligned to the Corporate Governance Service.

The Committee resolved:

to note the current position as detailed within the report.

The Committee had before it a report by the Director of Corporate Governance which presented information in relation to the setting of Council Tax levels for 2012/13, and provisional levels for 2013/14 to 2016/7; and detailed the priority based budgeting Service options.

The Convener advised that he had received a petition from Friends of Aberdeen Instrumental Music immediately prior to the meeting, requesting that members reject proposals which would see the withdrawal of music tuition in the city.

The report recommended –

that the Committee –

(a)       note the content of the report and refer the report to Council with any recommendations on Service options;

(b)       agree that the Service options are prioritised; and

(c)        agree that elected members provide officers with their full budget proposals by 8 February, 2012;

And that Council on 14 December, 2011 –

(1)       agree the service options to be implemented for 2012/13 and future years to achieve a balanced budget taking account of growth pressures and feedback obtained as part of the ongoing priority based budgeting (PBB) process (as detailed in appendix 1 to the report); and

(2)       agree the budget for each Service detailed in appendix 2 to this report; and

(3)       agree the level of Council Tax for the financial year 2012/13 and indicative level for 2016/17; and

(4)       agree the recommendation of the Head of Finance to retain working balances of 2.5% or approximately £11.5 million;

(5)       agree that the Capital programme be set such that no capital borrowing is undertaken and that the programme be set in line with the level of capital grant, capital receipts and contributions.

The Committee resolved:

(i)         to agree to forward the proposals as circulated (and as appended to this minute) as the Administration’s recommendations, to the meeting of Council of 14 December, 2011 with the following two amendments (1) to move option EPI_AMO29 (item 23 – introduction of charges to residents for Garthdee CPZ (Trading)) from the ‘recommended for rejection’ section to the ‘recommended for further information’ section; and (2) to move option ACC_S08 (item 94 – corporate bond issue) from the ‘recommended for rejection’ section to the ‘recommended for further information’ section; and

(ii)        to not approve recommendation (c) as above.

With reference to article 18 of the minute of its previous meeting of
29 September, 2011 the Committee had before it a report by the Head of Finance which presented the revenue position for the Council for 2011/12 and advised as to any areas of risk that had been highlighted by the Directors.

The Committee resolved:

(i)         to note the content of the report; and

(ii)        to instruct Directors to continue to take cost reduction opportunities during the remainder of the year to achieve a balanced budget position.

With reference to article 19 of the minute of its previous meeting of
29 September, 2011, the Committee had before it a report by the Director of Enterprise, Planning and Infrastructure whichprovided an update on the progress across all Services on projects within the 2010/11 Non Housing Capital Programme and advised as to the ongoing work in relation to future years’ programmes.

The Committee resolved:

(i)         to request that an explanatory note be circulated to members of the Committee in relation to the funding mechanism for the 50m Pool; and

(ii)        to note the current position as detailed within the report.

With reference to article 20 of the minute of its previous meeting of
29 September, 2011, 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 the period to 30 September, 2011, and outlined the forecast position of the cash balances.

The Committee resolved:

(i)         to note the near actual income and expenditure position as at 30 September, 2011 and the forecast outturn for the year; and

(ii)        to note the forecast cash balances as at 31 March, 2012 of £6,100,000 based on current estimates, which was within the recommended levels indicated by the Head of Finance.

With reference to article 20 of the minute of its meeting of 21 April, 2011, the Committee had before it a report by the Head of Finance which provided members with an update on treasury management activities undertaken in 2011/12.

The Committee resolved:

to recommend to Council –

(i)         that it notes the treasury management activities undertaken in 2011/12 as detailed within the report; and

(ii)        that it approves the revised counterparty list as detailed at appendix 1 to the report.

With reference to article 18 of the minute of its meeting of 2 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 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.

The Committee had before it a report by the Head of Finance which presented an application for financial assistance from the Royal National Lifeboat Institution (RNLI).

The Committee resolved:

to approve the request for £500 towards the cost of hiring the Beach Ballroom for a fundraising ball, in support of the RNLI.

With reference to article 26 of the minute of its previous meeting of
29 September, 2011, the Committee had before it a report by the Director of Education, Culture and Sport which presented the decisions of the Youth Activities Grant Funding Group for the latest round of funding for the financial year 2011/12, which had a closing date of 28 September, 2011.

The Committee resolved:

to note the grants awarded as detailed in the appendix to the report.

DECLARATION OF INTEREST

The Vice Convener declared an interest in the subject matter of the following article by virtue of his position as Chairperson of Aberdeen Heat and Power, but chose to remain in the meeting as Aberdeen Heat and Power was established wholly or mainly for the purpose of providing services to the local authority and has a contractual agreement with the Council in this regard (as per paragraph 5.18(2)(i)(d) of the Councillors’ Code of Conduct).

The Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which sought authorisation for the connection of three Council owned properties to the extended Combined Heat and Power (CHP) district heating network; and informed members of other connections to network.

The Committee resolved:

(i)         to agree to enter into Installation Agreements with Aberdeen Heat and Power covering the capital costs and specifications of three new connections at Constitution Court sheltered housing, Hanover Street community centre, and the Town House;

(ii)        to agree to enter into a Heat Supply and Maintenance Agreement for each of the three properties referred to at (i) above covering the running costs; and

(iii)       to agree to the standard agreements between the Council and Aberdeen Heat and Power being used in respect of these three new connections.

The Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which advised members of emerging supplementary guidance to the Aberdeen City and Shire Structure Plan which proposed a mechanism for securing developer contributions to a Strategic Transport Fund which would enable the delivery of major strategic transport infrastructure, and services required to support the growth of Aberdeen City and Shire.

The Committee resolved:

(i)         to approve the proposed mechanism for the Strategic Transport Fund as detailed in the draft supplementary guidance titled ‘Delivering Identified Projects through a Strategic Transport Fund’, subject to the approval of this guidance by the Strategic Development Planning Authority at its meeting of 15 December, 2011; and

(ii)        to instruct the appropriate officers to report back to the meeting of the Enterprise, Planning and Infrastructure Committee of 31 January, 2012 on the decision of the Strategic Development Planning Authority.

The Committee had before it a report by the Director of Corporate Governance which sought approval to invite tenders for the provision of fruit and vegetables to the Council’s education and social care establishments.

The Committee resolved:

(i)         to instruct the Central Procurement Unit to conduct a competitive tendering exercise for the provision of fruit and vegetables in line with the Council’s Standing Orders, Financial Regulations and European Union legislation; and

(ii)        to delegate authority to the Head of Procurement, in consultation with the Head of Legal and Democratic Services and the Head of Finance, to award contracts/places on frameworks to the highest scoring compliant bidder, on the basis of the most economically advantageous offer, as set out at Standing Order 7(6) (Contracts and Procurement).

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

With reference to article 27 of the minute of its meeting of 28 September, 2010, the Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which provided members with an update regarding the external provision of valuation and other property services.

The Committee resolved:

(i)         to note the intention to retender this service, with Aberdeenshire Council’s requirements being included within the tendering process;

(ii)        to approve the interim process for instructing valuation and other property professional services following the termination of the current contract and the commencement of the new contract;

(iii)       to note the position which has prevailed since 30 March, 2011; and

(iv)       to approve the appropriate tendering of asbestos surveys and associated works.

With reference to article 25 of the minute of its meeting of 28 September, 2010, the Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which presented a strategy for managing and maximising potential income from the Council’s industrial properties in future.

The Committee resolved:

(i)         to note that officers would report back on SCARF (Save Cash and Reduce Fuel) in due course, as per the instruction at item 16 of the Committee Business Statement;

(ii)        to approve the retention of the larger industrial properties detailed within the report due to the good location of the properties, strong covenant strength of the tenants, and the good income yields being achieved, subject to the overall ongoing option appraisal of all industrial property;

(iii)       with the exception of site 64 Howe Moss Avenue and Poynernook Road, to approve the retention of the remaining industrial properties detailed within the report due to good income yields and the future development potential of some of the sites, subject to the overall ongoing option appraisal of all industrial property; and

(iv)       to instruct officers to investigate options to extricate the Council from the position as tenant under the lease of site 64 Howe Moss Avenue, Kirkhill Industrial Estate.

With reference to article 25 of the minute of its meeting of 28 September, 2010, the Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which discussed the Council’s industrial ground lease investment portfolio (excluding ground leases held under Common Good), and presented a way forward in this regard.

The Committee resolved:

that the Council retains ownership of the industrial ground lease investment portfolio with a view to maximising rental income and premium receipts given that the ground lease investment portfolio has an attractive income yield of 5.51% against low income risk, coupled with the potential for increased rental income and possible development and premium receipts going forward.

The Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which, further to a procurement exercise having been undertaken, sought approval to appoint a car club operator.

The Committee resolved:

(i)         to note the content of the report;

(ii)        to authorise officers to award the car club operator contract to Commonwheels; and

(iii)       to instruct officers to further investigate and implement the most cost effective financial options to utilise existing pool cars in conjunction with Commonwheels, as highlighted in appendix 1 to the report.

With reference to article 42 of the minute of its meeting of 21 April, 2011, the Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which presented the outcome of a marketing exercise in relation to the property at 30 Springfield Avenue.

The Committee resolved:

(i)         that the highest offer, submitted by Anderson Bain on behalf of Mr Chris McGhee, be accepted; and

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

The Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which provided members with an update on activities in relation to properties which had been declared surplus to the Council’s requirements or were currently vacant awaiting a decision on future use.

The Committee resolved:

(i)         to note the position in relation to all vacant and surplus assets as detailed at appendices A, B and C to the report;

(ii)        to note the status of the Pittodrie Community Centre, which had been declared surplus to the requirements of the Education, Culture and Sport Service, and was now being circulated to internal Services and external partners, and if no interest was identified, would be marketed for sale;

(iii)       to note the current position of the Hillylands Centre in relation to a use by the Education, Culture and Sport Service, the interest in the property by the Social Care and Wellbeing Service, and the impact this would have on the marketing of the adjacent Burnside complex;

(iv)       to note that a planning application had been submitted for supermarket use at the former Summerhill Academy site and that demolition works would commence at the earliest opportunityfollowing full service disconnection;

(v)        to note that following unacceptable offers having been received at the closing date of 15 November, 2011, the property at 26 Netherhills Avenue was being remarketed; and similarly, offers received for St Peter’s Nursery, The Spittal, were not acceptable and that officers were reviewing the position in relation to this property and would report back next cycle;

(vi)       to note that the following sales had been concluded since the previous meeting of 29 September, 2011:

·        136G Walker Road (Housing Revenue Account - £50,000)

·        Ashley Road School Lodge (General Services Account - £205,000)

·        Aberdeen Grammar Gate Lodge (General Services Account - £310,000)

·        Johnston Gardens Depot (General Services Account - £42,000)

·        46 Kings Crescent (General Services Account - £33,000); and

(vii)      to note that the following leases had been concluded since the previous meeting of 29 September, 2011 on properties held on the tenanted non residential portfolio:

·        Unit 6 Granitehill Enterprise Centre

·        3 Kincorth Shopping Centre

·        398 George Street

·        7/8 Woodlands Road

·        10/11 Kirkhill Place

·        8 Kirkton Avenue

With reference to article 40 of the minute of its meeting of 2 December, 2010, the Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which brought members up to date with the efforts of officers to negotiate a new model lease with affected tenants of former staff houses.

The report recommended:

that the Committee –

(a)       approve in principle, the new model standard house lease, as per appendix 2 of the report;

(b)       authorise the Head of Asset Management and Operations to seek to terminate all existing leases of these properties at the earliest opportunity and offer each tenant the new model standard house lease; and

(c)        in the event that any affected tenant is not prepared to agree to the offer of the new model standard house lease, to authorise the Head of Legal and Democratic Services to take all appropriate legal action to end that tenancy and recover possession of the property.

The Committee resolved:

(i)         to request that officers confirm whether the Housing and Environment Committee removed item 2.5 (d) (the pet’s diet does not include live animals, insects or other creatures) from the Pets in Council Houses Policy;

(ii)        to approve in principle the model standard house lease, as detailed in appendix 1, with the proviso that equivalent succession rights be granted in the event of the death of a tenant;

(iii)       to instruct officers to seek agreement from the trades unions on the above, in consultation with the Convener and Vice Convener of this Committee, and to thereafter authorise the Head of Asset Management and Operations to seek to terminate all existing leases of these properties at the earliest opportunity and offer each tenant the new model standard house lease, to be implemented from 1 April, 2012 where practicable or at the earliest possible date in terms of when the existing lease can be terminated;

(iv)       in the event that any affected tenant is not prepared to agree to the offer of the new model standard house lease, to authorise the Head of Legal and Democratic Services to take all appropriate legal action to end that tenancy and recover possession of the property; and

(v)        that it be noted that it was the will of the Committee that should any of the current tenants refuse to sign the new lease and their tenancy is ended (in terms of (iv) above) that they should be treated as homeless and not intentionally homeless.

With reference to article 42 of the minute of its meeting of 10 December, 2010, the Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which updated members on developments concerning the property at
8 Alford Place, and presented an officer recommendation as to the way forward.

The Committee resolved:

(i)         to authorise the Head of Asset Management and Operations to provisionally negotiate a ‘surrender’ payment with the landlord’s agents, where in return for a single payment to them, all the Council’s legal and financial liabilities in connection with the lease are ended and the lease is renounced;

(ii)        to delegate power to the Director of Social Care and Wellbeing, the Head of Legal and Democratic Services and the Head of Finance, in consultation with the Convener of the Social Care and Wellbeing Committee and the Convener of this Committee, to consider the approval of any such provisionally agreed ‘surrender’ payment reached at the end of the negotiation process; and

(iii)       in the event that (ii) above comes to pass, to instruct the Head of Legal and Democratic Services to formally conclude a Minute of Renunciation of the lease with the landlord’s legal agents, on terms or conditions as are necessary to protect the Council’s interests.

DECLARATION OF INTEREST

Councillor Dean declared an interest in the subject matter of the following article by virtue of her position as a Board member of NHS Grampian, but chose to remain in the meeting as NHS Grampian was a devolved public body (as set out in paragraph 5.18(2)(i)(a) of the Councillors’ Code of Conduct). 

Reference was made to article 28 of the minute of meeting of Council of
15 December, 2010, at which time officers had been instructed to investigate appropriate alternative uses for the Bon Accord Bowling Centre and Skyline Restaurant, and to report back thereafter.  The Committee had before it on this day, a report by the Director of Enterprise, Planning and Infrastructure as instructed at the aforementioned meeting of Council.

The report recommended:

that the Committee –

(a)       note the interest expressed by NHS Grampian in sub leasing or assigning the Council’s lease of the Bon Accord Indoor Bowling Centre (with the exception of the part of the Skyline Restaurant to be sub leased to Shopmobility), to facilitate a comprehensive redevelopment of the building;

(b)       approve the grant of a further period of sub lease of the Bowling Hall to the Bon Accord 2000 Indoor Bowling Club, from 1 May, 2012 until 30 April, 2013, on the same terms and conditions of sub lease as at present; and

(c)        remit it to the Head of Legal and Democratic Services to formally conclude such a sub lease, on terms and conditions as are necessary to protect the Council’s interests.

The Committee resolved:

(i)         to approve the recommendations with the exception of the reference to Shopmobility in recommendation (a), and to note the update provided by the General Manager – Asset Management in this regard; and

(ii)        to request that a briefing on the current position in relation to Shopmobility be circulated to members.

- COUNCILLOR JOHN STEWART, Convener.

APPENDIX TO ARTICLE 14

Service Options recommended for accepting