Agenda item

With reference to Article 8 of the minute of its meeting of 3 July 2024, the Council had before it a report by the Chief Officer - Capital which presented the completed options appraisal, an overview of feedback from the recent engagement with Council tenants, homeowners, private tenants and the wider community and associated survey work, and wider contextual information used to help formulate a recommendation for consideration.

 

The report recommended:-

that the Council -

(a)           note the engagement undertaken over the summer period and thank the community for their participation and contributions to the online engagement and drop-in sessions. In addition, note the planned follow-on engagement with RAAC impacted owners and residents;

(b)           agree that the optimum option is the demolition and rebuild of homes on site and instruct the Chief Officer - Capital to proceed with the demolition aspect of this (Option 4a), and report back to the next appropriate meeting of the Communities, Housing and Public Protection Committee  on the initial phasing of demolition and landscape details;

(c)           instruct the Chief Officer - Corporate Landlord in consultation with the Chief Officer - Capital,  Chief Officer - Housing, and the Chief Officer - Finance, to assess the ‘building new homes’ option as alluded to in Option 4b with consideration towards  undertaking a detailed masterplanning exercise assuming the site is vacant to determine future redevelopment proposals. For the wider site give consideration to creation of appropriate greenspace, preferred housing mix, opportunities to extend tenure mix and provision for housing for varying need and report this to a future meeting of the Communities, Housing and Public Protection Committee in 2025 (as early as possible);

(d)           approve the funding noted within the Financial Implications section of the recommendations and  instruct the Chief Officer - Capital, following consultation with the Convener of the Finance and Resources Committee, and the Chief Officer - Procurement, to procure appropriate works and services, and enter into any contracts necessary for the delivery of the demolition, masterplanning and landscaping works  without the need for further approval from any other Committee of the Council subject to due diligence, consistency with the financial model and affordability and regular update on progress of project delivery to the Communities, Housing and Public Protection Committee;

(e)           instruct the Chief Officer - Corporate Landlord to look at a range of delivery options for new housing on the site including opportunities to work with partners to meet the masterplan aspirations, and the requirement of the Housing Revenue Accounts 30 year business plan; reporting this in as part (ii) above;

(f)            instruct the Chief Officer - Corporate Landlord in consultation with the Chief Officer - Finance to take forward negotiations with private owners to acquire their properties voluntarily at Market Value, noting that this would be a valuation of the property at the current date and be on the same basis as the CPO process. In addition to Market Value the Council would be willing to meet reasonable legal and professional costs along with home loss and disturbance payments;

(g)           instruct the Chief Officer - Corporate Landlord in consultation with the Chief Officer - Housing as part of the negotiations with private owners to assess the housing options available for each individual owner to identify any support that can be offered in rehoming;

(h)           instruct the Chief Officer - Corporate Landlord in consultation with the Chief Officer - Governance to bring back a report to Council in late 2024/early 2025 on options available to the Council to compulsorily acquire private properties to assist the delivery of the agreed option where required;

(i)             instruct the Chief Officer - Housing to continue the re-homing process and report progress to the Communities, Housing and Public Protection Committee on a regular basis, noting that there may be requirements to commence legal proceedings under the Scottish Tenancy Agreements, where tenants refused to move to alternative accommodation having received reasonable offers of alternative accommodation to ensure that tenant safety remains the Council’s primary objective;

(j)             note that the Chief Officer - Housing ensured a continued offering of support to impacted individuals and families as they go through the rehoming process, and settle into their new homes and communities;

(k)           note that the Chief Officer - Housing and Chief Officer - Corporate Landlord would continue to engage with the Scottish Housing Regulator regarding progress with the delivery of the preferred option to ensure that any impact on our wider housing performance standards was taken into account, during regulation and consideration of the Council’s performance;

(l)             note that any private tenants (as well as private owners) can be added to the RAAC Impact housing  list as per the decision of the Urgent Business Committee held on 29 February 2024;

(m)         note the approved £3m budget as reported at the Urgent Business Committee on 29 February 2024  including but not limited to, additional staffing costs, specialist consultant fees, contractors costs for access and works, rehoming costs, temporary accommodation, school transport, utilities connections and security costs for the wider site. To note the spend to date in relation to the re-homing programme as identified within paragraph 4.2;

(n)           approve the virement of £4m within the HRA Capital Programme Budget as described in section 4 to set aside the initial funds needed to progress the approved works;

(o)           instruct the Chief Officer - Finance to include the financial consequences of the report within the 30 year business plan for the HRA, which was due to be reported in September 2024;

(p)           note that ongoing dialogue with Scottish Government officials and Housing Minister regarding financial implications, including financial flexibilities, and future housing need, meant the Council may request that the Scottish Government consider a statutory dispensation to permit the Council certain flexibilities, and instruct the Chief Officer - Finance to request that dispensation, where required; and

(q)           note the Chief Officer - Finance would determine the accounting treatment for any expenditure incurred to address the RAAC situation, taking account of legislation, proper accounting practice, statutory guidance issued by Scottish Ministers, flexibilities approved by Scottish Ministers and, in the event of funding being made available to the Council, how that would be treated. Note that early engagement with external audit would take place as part of determining the accounting treatment to be applied.

 

Councillor Radley moved, seconded by Councillor Henrickson:-

          That the Council -

(1)       approve the recommendations contained within the report; and

(2)       instruct the Chief Executive to formally advise both the UK and Scottish Government of the Council’s decision on the preferred option, the financial impact for the Council and private owners, and request a joint meeting with both the relevant UK and Scottish Government Ministers to discuss funding support for the short-term costs and longer-term housing development requirements.

 

Councillor Watson moved, seconded by Councillor Malik:-

          That the Council -

(1)       note the contents of the report;

(2)       note the Labour amendment supported by the Conservatives but opposed by the SNP and Lib Dems at the Urgent Business meeting on 29^th February 2024, where the administration rushed into a decision that now has serious consequences for the Council, tenants and owner occupiers of the affected properties;

(3)       note Councillor Radley’s comments in the Press and Journal regarding increasing Council rents to pay for RAAC to all tenants and agrees if this is proposed in the budget the Council should call this increase the Radley tax. Believes that it is a duty of the administration to be accountable for their decisions, and if the handling of the RAAC issue leads to eviction of Council tenants, then the Council co-leaders should be personally present at each one;

(4)       agree members should be under no illusions that officers are recommending an option without members being in full possession of the financial burden as set out on page 20 under Risk which states the following “The current financial burden to mitigate the RAAC impact is currently unknown and still to be quantified.” Therefore, agrees that Council should not make a definitive decision today until it is in possession of the financial burden;

(5)       given the community and local economic benefit of retaining and refurbishing the existing properties, officers are instructed to prepare a report for the next Council meeting on the whole cost to the HRA of each option and the economic and community benefits of each;

(6)       agree Audit Scotland Following the public pound states “The main tenet of 'following the public pound' is that the principles of good governance apply in decisions concerning public money, agreeing to a decision today without knowing the full financial burden on the Council is folly and irresponsible;

(7)       agree to obtain a legal opinion from Kings Counsel on the likelihood of the Council being in a position to use CPO legislation, given it forced the issue by taking forward an Urgent Business Committee meeting in February - when this matter would have been better dealt with at Council 6 days later - but has not used any of the powers it possesses under the Building (Scotland) Act 2003;

(8)       instruct the Chief Executive to write to members to explain why this matter was treated as urgent given the Council’s inability or unwillingness to use the powers outlined within the exempt report;

(9)       agree that minutes of all meetings and correspondence with the Scottish Government on this issue should be shared with elected members; and

(10)    agree that a meeting should be set up with all Group leaders, the First Minister and Housing minister to discuss the seriousness of this matter and the effect it will have on the tenants of Aberdeen City Council. 

 

Councillor Kusznir moved as a further amendment, seconded by Councillor Brooks:-

          That the Council -

(1)        raises concern and condemns the actions of the Convener of Communities, Housing and Public Protection and her ill-considered comments to The Press & Journal on 16 August 2024, which suggested that tenants will face rent increases to pay for RAAC repairs;

(2)        considers that not only is this an unrealistic way of funding the repairs but that the Convener (Councillor Radley) and the Administration would be better spending their time properly representing the City of Aberdeen to ensure we secure Scottish Government funding support rather than further frightening Council tenants with unwise media comment;

(3)        therefore, instructs the Chief Executive to write to the Minister for Housing, Paul McLennan MSP, updating him on the decision of Council and reiterating the request for financial support in handling RAAC.

 

Amendment (italics) to Recommendations

 

2.1 unchanged

 

2.2  Correction: Agrees that the optimum option is the demolition and rebuild of homes on site and instructs the Chief Officer - Capital to proceed with the demolition aspect of this (Option 4b), and to report back to the next appropriate meeting of Communities, Housing and Public Protection Committee on the initial phasing of demolition and landscape details.

 

2.3  unchanged

 

2.4  Instruct the Chief Officer - Capital, following consultation with the Convener of the Finance and Resources Committee, and the Chief Officer - Procurement, to present-for-approval a masterplan option to the Communities, Housing and Public Protection Committee.

 

2.4  2.5 unchanged

 

2.52.6 unchanged

 

2.6 2.7 Instruct the Chief Officer - Corporate Landlord in consultation with the Chief Officer - Finance and Chief Officer - Governance to report to the next full Council meeting on the implications of acquiring  the properties of private owners, voluntarily at a Value  reflecting the historic  Market Value of the properties at (say) 1^st April 2023. In addition to this agreed Value  the council will consider meeting the reasonable legal and professional costs properly incurred by homeowners together with home loss and disturbance payments.

 

2.7  2.8 Unchanged

 

2.8  2.9 Instruct the Chief Officer - Corporate Landlord not to proceed with CPO at any stage of this process without prior agreement from Council; and in consultation with the Chief Officer - Governance to bring back a report to Council in late 2024/early 2025 on options available to the Council to compulsorily acquire private properties to assist the delivery of the recommended option where required.

 

2.9  2.10 Instruct the Chief Officer - Housing to continue the re-homing process and report progress to the Communities, Housing and Public Protection Committee on a regular basis. noting that there may be requirements to commence legal proceedings under the Scottish Tenancy Agreements, where tenants have refused to move to alternative accommodation having received reasonable offers of alternative accommodation to ensure that tenant safety remains the Council’s primary objective.Where tenants have refused to move to alternative accommodation, a confidential report summarising  each case will be presented to the Communities, Housing and Public Protection Committee to confirm that all “reasonable and practicable measures” have been taken prior to any legal proceedings being advanced.

 

2.10 -2.17    2.11-2.18 Unchanged

 

 

At this juncture, the Council agreed to suspend Standing Order 40.2 to allow the meeting to continue beyond six hours.

 

 

There being a motion and two amendments, the Council first divided between the two amendments.

 

On a division, there voted:-

 

For the amendment by Councillor Watson  (12)  -  Councillors Ali, Blake, Bonsell, Crockett, Graham, Grant, Lawrence, Macdonald, Malik, Thomson, Tissera and Watson.

 

For the amendment by Councillor Kusznir  (6)  -  Councillors Boulton, Brooks, Farquhar, Kusznir, McLeod and Massey.

 

Declined to vote  (24)  -  Lord Provost; Depute Provost; and Councillors Al-Samarai, Allard, Alphonse, Bouse, Hazel Cameron, Clark, Cooke, Copland, Cormie, Davidson, Fairfull, Greig, Henrickson, Hutchison, MacGregor, McLellan, McRae, Mennie, Nicoll, Radley, van Sweeden and Yuill.

 

The Council then divided between the motion and the amendment by Councillor Watson.

 

On a division, there voted:-

 

For the motion  (24)  -  Lord Provost; Depute Provost; and Councillors Al-Samarai, Allard, Alphonse, Bouse, Hazel Cameron, Clark, Cooke, Copland, Cormie, Davidson, Fairfull, Greig, Henrickson, Hutchison, MacGregor, McLellan, McRae, Mennie, Nicoll, Radley, van Sweeden and Yuill.

 

For the amendment by Councillor Watson  (12)  -  Councillors Ali, Blake, Bonsell, Crockett, Graham, Grant, Lawrence, Macdonald, Malik, Thomson, Tissera and Watson.

 

Declined to vote  (5)  -  Councillors Brooks, Farquhar, Kusznir, McLeod and Massey.

 

Absent from the division  (1)  -  Councillor Boulton.

 

The Council resolved:-

(i)             to adopt the motion; and

(ii)           to request that future reports include correspondence from the Scottish and UK Governments by way of background information.