Agenda item

With reference to article 13 of the minute of meeting of Council of 16 December, 2009 and article 4 of the minute of its previous meeting, the Committee had before it a report by the Director of Housing and Environment which outlined four sets of savings proposals for the Committee to consider, namely:-  (1) sheltered placement staff (which would replace the previous proposal ENV31); (2) income generation proposals for pets’ corner (which would replace the previous proposal ENV22); (3) a reduction in the use of water across the Council; and (4) options to address the revenue cost pressures created by the removal of the Private Sector Housing Grant (PSHG) ring fence on 1April, 2010.

With regard to the sheltered placement scheme savings proposals, the report advised that there were six members of staff working within Environment establishments on a full time basis under the “Work Step” (or Sheltered Placement) scheme, and the Department of Work and Pensions provided to the Council, an annual grant of £4,800 for each person, providing a total of £28,800. The report explained that the Social Care and Wellbeing Service paid the staff costs in full, then recharged the Environment Service 65% of the total, whilst retaining the £28,800 grant. The Environment Service had a budget allocation within the Sheltered Placement cost centre D21002 to pay this internal recharge, however, during the current financial year, agency code budget D20102 12411 had been cut to £8,635 as part of the Service's contribution to the purchase of the corporate purchasing system, PECOS. The report further advised that the Work Step scheme was to conclude at the end of October, 2010, after which the Council would be expected to bear the full costs of employment of the persons involved. Officers felt there was a strong case for retaining the staff within the Council, despite the fact that the scheme presented a significant net cost pressure of £62,565.

The report reminded members that the Grounds Maintenance Service was carrying a number of vacancies, and has also embarked on further major efficiency savings using the lessons learned during the 2009 tendering process for the grounds maintenance of sports grounds and playing fields.   It was proposed that some of these vacancies could be used towards achieving the proposed savings for 2010/11 and beyond, but it would also be possible to transfer the sheltered placement staff into six of these vacancies.   The Environment Service would therefore work to a budget which would absorb the cost pressure by filling six vacancies.   Part of this cost pressure for the financial year 2010/11 could be offset by having the grant for 2010/11 also transferred to the Environment budget.   The report outlined that the staff would then have to be considered on an equal footing with the rest of the overall workforce in the work to achieve the savings proposed in the budget paper ENV26 – the market testing of grounds maintenance services, which would have to be achieved with six less vacancies than there would have been should this proposal not have been considered.

With regard to the Pets’ Corner savings proposals, the report advised by way of background that this was a popular attraction and was held in high regard by the public, both as a leisure and an educational facility, and that since the recent upgrading with £30,000 of capital money in the last financial year, 44,111 people had visited Pets’ Corner since 1 April, 2009, with the result that £45,645 income had been recorded by the end of the period.   The report further advised that the total projected spend on the budget for 2009/10 was £97,000, therefore the largest gap, even assuming there was no further income, would be £52,000.   There would be some further income, but that could be expected to reduce during winter and early spring.   A modest projection of £65,000 was believed to be realistic.

The report proposed that income generation be increased by £33,600 through various methods such as sponsorship of individual animals, donation boxes, fundraising and savings in food purchasing by reviewing existing tenders.

Details of the proposals and the various charging options were provided in appendices to the report.

With regard to the water budget savings, the report advised that the Council’s Energy Manager had identified potential savings in the Council’s water budgets of £50,700 a year, without detriment to the operation of the Council.   Background papers were provided in this regard on pages 9 – 16 of the additional circulation.

With regard to the saving proposals to meet the cost pressures within the Private Sector Housing Grant (PSHG) service, the report advised that the Scottish Government had removed the ring fence protection around the PSHG funding, and that this was now within the General Fund.  Officers had recently been advised that the Scottish Government were going to provide this as 40% revenue and 60% capital funding, which would enable the Council to fund the previous PSHG revenue funded services.   The 40:60 split was only for a three year period, so accordingly officers were now beginning work to redesign service provision to take account of this proposal.

The report concluded that if the recommendation associated with the PSHG was not approved, then the revenue costs of the PSHG could only be met by the permanent cessation of funding for some or all of the following:-  (1) Care and Repair (which provides advice and assistance regarding repairs and improvements to the homes of older and/or disabled homeowners);  (2) the Home Energy Conservation Association (HECA) (which enables leverage funding of up to £1m for energy efficiency solutions in the private housing sector);  (3) Aberdeen Affordable Warmth (which provides advice and assistance and affordable loans to tackle fuel poverty);  (4) SCARF (Save Cash and reduce Fuel) (which offers free advice and assistance regarding energy efficiency to homeowners across the City);  (5) Torry Project (Property Management);  (6) Research/Consultation;  (7) Development Of Property Gazetteer;  and (8) Maintenance Orders and Work Notices.

The Committee resolved:-

(i)         to approve the proposal to move the five persons currently employed by the Social Care and Wellbeing Service, and working within the Environment Service, to mainstream employment within the Environment Service, while still achieving the savings outlined in the previous savings proposal (budget line ENV31 in the minute of meeting of Council of 16 December, 2009 refers);

(ii)        to approve the proposals to generate income of £34,000 by Pets’ Corner, replacing the previous savings proposal ENV22; and achieving an extra £4,000 of  savings;

(iii)       to approve the reduction in the Housing and Environment Service water budget by £50,700, thereby contributing to corporate efforts to reduce water consumption;  and

(iv)       to approve proposals to utilise the proposed revenue funding from the PSHG to fund the following:-  Aberdeen Care & Repair; Aberdeen Affordable Warmth; SCARF; HECA; Torry Project (postpone funding for 2010/11 and 2011/12, and reintroduce funding into the revenue budget in 2012/13);  and Research/Consultation (reduce funding from £30,000 to £10,000 for 2010/11); and

(v)        to thank all frontline staff for their input with regard to the savings suggested within the report, and to suggest that they be nominated for a Corporate Recognition Award in this regard.