Agenda item

The Council had before it a report by the Director of Resources which provided information to allow the setting of the rent level for the financial year 2019/20 as well as provisional rent levels for the financial years 2020/21 to 2023/24, which would allow a capital programme to be set for 2019/20 as well as a provisional programme for 2020/21 to 2023/24.

 

The report recommended:-

that the Council -

(a)         approve the budget as attached in Appendix 1 (pages 5 to 6) of the report;

(b)         approve the setting of the weekly unrebated rents for municipal houses as detailed in Appendix 1 (pages 5 to 6) of the report, to take effect from Monday 29 April 2019;

(c)          approve the level of revenue contribution to the Housing Capital budget for 2019/20 as well as a provisional contribution for the subsequent four financial years as detailed in Appendix 1 (pages 19 to 20) of the report;

(d)         approve the proposal to maintain the working balances at 10% to meet future contingencies as detailed in Appendix 1 (pages 5 to 6) of the report;

(e)         approve the level of miscellaneous rents and service charges, including Heat with Rent as detailed in Appendix 1 (pages 11 to 12) of the report;

(f)           approve, based on the rent strategy adopted, the Base Capital Programme for the financial year 2019/20 as detailed in Appendix 1 (pages 17 to 19) of the report;

(g)         note the indicative level of the Base Capital Programme for the financial years 2020/21 to 2023/24 as detailed in Appendix 1 (pages 17 to 19) of the report;

(h)         approve as estimated expenditure in terms of Procurement Regulation 4.1.1, in order for work to commence on the ongoing Capital Programme, the sums shown against each heading of the Housing Capital Expenditure budget for the financial year 2019/20 set out in Appendix 1 (pages 17 to 19) of the report without the need for separate committee approval of each;

(i)           delegate authority to the Director of Resources, following consultation with the Head of Commercial and Procurement Services, to undertake or instruct appropriate procedures in accordance with the ACC Procurement Regulations to procure the works referred to in Appendix 1 (pages 17 to 19) for the Capital Programme for the financial year 2019/20 and award contracts relating thereto;

(j)           approve the principle of a long term fixed rent policy and instruct the Chief Officer - Early Intervention and Community Empowerment to undertake a consultation exercise with tenants, elected members and appropriate staff on potential options;

(k)          approve that the Chief Officer - Capital award the contract for the Summerhill procurement to develop the site as detailed in Appendix 1 (pages 24 to 25) of the report;

(l)           approve the transfer of land at open market value to the HRA and tendering of the site at Craighill;

(m)        approve the transfer of land at open market value to the HRA and tendering of the site at Kincorth;

(n)         approve the transfer of land at open market value to the HRA and tendering of the site at Tillydrone/St Machar;

(o)         approve the transfer of land at open market value to the HRA and tendering of the site at Greenferns/Greenferns Landward;

(p)         approve that the Director of Resources market test the feasibility of raising financing from alternative sources;

(q)         approve that the Chief Officer - Capital award the contract for the Dyce/Wellheads site procurement to develop the site as detailed in Appendix 1 (pages 26 to 27) of the report subject to due diligence/financial model/affordability;

(r)           approve that the Director of Resources market the Craighill, Kincorth and Tillydrone/St Machar sites on the open market following the model used for Summerhill;

(s)          approve that the Chief Officer - Capital, following consultation with the Chief Officer - Finance, enter into procurement contracts for the remaining three private sites subject to them receiving the necessary planning permissions and subject to them being financially sustainable;

(t)           instruct the Director of Resources to enter into “without prejudice” discussions in relation to the old AECC site; and

(u)         note the content of Appendix 2 to the report and instruct the Chief Officer - Corporate Landlord to take no further action to install stair lifts in sheltered housing properties.

 

Councillor Laing moved, seconded by Councillor Macdonald:-

            That the Council -

(1)      approve the budget as attached in Appendix 1 (pages 5 to 6) of the report;

(2)      approve the setting of the weekly unrebated rents for municipal houses at 4.3% to take effect from Monday 29 April 2019;

(3)      approve a revenue contribution to the Housing Capital budget of £26.173million for 2019/20 as well as a provisional contribution for the subsequent four financial years as detailed in Appendix 1 of the report;

(4)      approve the proposal to maintain the working balances at 10% to meet future contingencies as detailed in Appendix 1 of the report;

(5)      approve the level of miscellaneous rents and service charges, including Heat with Rent as detailed in the appendix to this motion;

(6)      approve, based on the rent strategy adopted, the Base Capital Programme for the financial year 2019/20 as detailed in Appendix 1 of the report;

(7)      note the indicative level of the Base Capital Programme for the financial years 2020/21 to 2023/24 as detailed in Appendix 1 of the report;

(8)      approve as estimated expenditure in terms of Procurement Regulation 4.1.1, in order for work to commence on the ongoing Capital Programme, the sums shown against each heading of the Housing Capital Expenditure budget for the financial year 2019/20 set out in Appendix 1 of the report without the need for separate committee approval of each;

(9)      delegate authority to the Director of Resources, following consultation with the Head of Commercial and Procurement Services, to procure the works referred to in Appendix 1 of the report (pages 17 to 19) and associated services for the Capital Programme for the financial year 2019/20 and award contracts relating thereto without the need for further approval from any other committee of the Council subject to due diligence, consistency with the financial model and affordability;

(10)   approve the principle of a long term fixed rent policy and instruct the Chief Officer - Early Intervention and Community Empowerment to undertake a consultation exercise with tenants, elected members and appropriate staff on potential options;

(11)   delegate authority to the Chief Officer - Capital, following consultation with the Head of Commercial and Procurement Services, to award the contract for the Summerhill procurement to develop the site as detailed in the report (Appendix 1 pages 24 to 25);

(12)   approve the transfer of land at open market value to the HRA of the site at the former Craighill school;

(13)   approve the transfer of land at open market value to the HRA of the site at the former Kincorth Academy;

(14)   approve the transfer of land at open market value to the HRA at Tillydrone;

(15)   approve funding for the delivery of the works and associated services in respect of the former Craighill school, former Kincorth Academy and Tillydrone/St Machar sites for the capital programme for the financial year 2019/20 and delegate authority to the Director of Resources, following consultation with the Convener of the City Growth and Resources Committee and the Head of Commercial and Procurement Services, to consider and approve business cases (including estimated expenditures) for the purposes of Procurement Regulation 4.1.1; thereafter to procure appropriate works and associated services, and enter into any contracts necessary for the delivery of the projects without the need for further approval from any other committee of the Council subject to due diligence, consistency with the financial model and affordability;

(16)   approve the transfer of land at open market value from the Common Good Fund to the HRA for the sites at Greenferns/Greenferns Landward and approve funding for the delivery of the works and associated services in respect of the sites for the capital programme for the financial year 2019/20 and delegate authority to the Director of Resources, following consultation with the Head of Commercial and Procurement Services, to consider and approve business cases (including estimated expenditures) for the purposes of Procurement Regulation 4.1.1; thereafter to procure appropriate works and services, and enter into any contracts necessary for the delivery of the projects without the need for further approval from any other committee of the Council subject to due diligence, consistency with the financial model and affordability;

(17)   instruct the Director of Resources to market test the feasibility of raising financing for council housing from alternative sources;

(18)   note the tender exercise currently being undertaken with land led developer opportunities as detailed in Appendix 1 and  approve funding for the delivery of the works and associated services for the capital programme for the financial year 2019/20 for the Dyce/Wellheads site, (Appendix 1 pages 26 to 27) and delegate authority to the Director of Resources, following consultation with the Convener of the City Growth and Resources Committee and the Head of Commercial and Procurement Services, to consider and approve business cases (including estimated expenditures) for the purposes of Procurement Regulation 4.1.1; thereafter to procure appropriate works and services, and enter into any contracts necessary for the delivery of the projects without the need for further approval from any other committee of the Council subject to due diligence, consistency with the financial model and affordability;

(19)   instruct the Director of Resources to enter into “without prejudice” discussions with the Council’s development partner to discuss the potential of affordable housing being accommodated in relation to the old Aberdeen Exhibition and Conference Centre site;

(20)   note the content of Appendix 2 to the report and instruct the Chief Officer - Corporate Landlord to take no further action to install stair lifts in sheltered housing properties; and

(21)   instruct the Chief Officer - Corporate Landlord to progress and conclude the buyback of ex-council houses and that a sum of £15million be set aside to fund any suitable purchases that meet the financial sustainability of any purchase.

 

Appendix - Miscellaneous Rents

 

ABERDEEN CITY COUNCIL HOUSING REVENUE ACCOUNT
Proposed Increase to be included in the HRA budget – Miscellaneous Rents
			2019/20
			Current		Proposed		Increase		Percentage
			Rental		Rental		Per Week		Increase
Note	Miscellaneous Increases		£		£		£		%
	Garages		11.30		11.80		0.50		4.42
	Denburn and West North Street Spaces		5.15		5.40		0.25		4.85
1	Denburn and West North Street Spaces - Non Resident		20.00		20.00		0		0
	Garages Sites		4.40		4.60		0.20		4.55
	Car Ports		4.85		5.05		0.20		4.12
	Car Parking Spaces - Local Residents		4.00		4.20		0.20		5.00
1	Parking Spaces Non Local Residents		20.00		20.00		0		0.00
2	Meals at Denmore & Kingswood		35.00		40.00		5.00		14.29
3	Guest Rooms		10 &15		10 &15		0		0
4	House Garden Scheme (annual)		75.60		77.50		1.9		2.5

 

 

Councillor Jackie Dunbar moved as an amendment, seconded by Catriona Mackenzie:-

            That the Council -

(1)      approve the budget as attached in Appendix 1 (pages 5 to 6) of the report;

(2)      approve the setting of the weekly unrebated rents for municipal houses at 4.3% to take effect from Monday 29 April 2019;

(3)      instruct the Chief Officer - Early Intervention and Community Empowerment to ensure that the letters regarding the rent increase also informs people in receipt of Universal Credit that it is their responsibility to inform the DWP;

(4)      approve a revenue contribution to the Housing Capital budget of £26.173million for 2019/20 as well as a provisional contribution for the subsequent four financial years as detailed in Appendix 1 of the report;

(5)      approve the proposal to maintain the working balances at 10% to meet future contingencies as detailed in Appendix 1 of the report;

(6)      approve the transfer of £1.6million from the working balance to fund the Solid Wall Insulation programme in 2019/20;

(7)      approve the level of miscellaneous rents and service charges, excluding meals at Denmore and Kingswood as detailed in the Appendix to this amendment;

(8)      approve an increase of £2.50 per week for Denmore and Kingswood and instruct the Chief Officer - Early Intervention and Community Empowerment to report to a relevant future committee to review the policy to ensure the costs of meals are reflective of the cost of services;

(9)      instruct the Chief Officer - Early Intervention and Community Empowerment to report to the Operational Delivery Committee regarding the increase in void properties, detailing the actions to be taken to reduce the number of void properties;

(10)   approve, based on the rent strategy adopted, the Base Capital Programme for the financial year 2019/20 as detailed in Appendix 1 of the report with the addition of £200,000 for 6.2 Community Initiatives;

(11)   note the indicative level of the Base Capital Programme for the financial years 2020/21 to 2023/24 as detailed in Appendix 1 of the report with the addition of £200,000 each year for 6.2 Community Initiatives;

(12)   approve as estimated expenditure in terms of Procurement Regulation 4.1.1, in order for work to commence on the ongoing Capital Programme, the sums shown against each heading of the Housing Capital Expenditure budget for the financial year 2019/20 set out in Appendix 1 of the report without the need for separate committee approval of each, unless the costs go above the threshold;

(13)   remove the delegated power that enables the Chief Officer - Governance to dispose of individual Council owned properties, with the instruction that no further Council owned homes will be available for sale wherever they may be located;

(14)   delegate authority to the Director of Resources, following consultation with the Head of Commercial and Procurement Services, to procure the works referred to in Appendix 1 of the report (pages 17 to 19) and associated services for the capital programme for the financial year 2019/20 and award contracts relating thereto without the need for further approval from any other committee of the Council subject to due diligence, consistency with the financial model and affordability;

(15)   approve the principle of a long term fixed rent policy and instruct the Chief Officer - Early Intervention and Community Empowerment to undertake a consultation exercise with tenants, elected members and appropriate staff on potential options;

(16)   delegate authority to the Chief Officer - Capital, following consultation with the Head of Commercial and Procurement Services, to award the contract for the Summerhill procurement to develop the site as detailed in Appendix 1 (pages 24 to 25) of the report;

(17)   approve the transfer of land at open market value to the HRA and tendering of the site at Craighill School;

(18)   approve the transfer of land at open market value to the HRA and tendering of the site at Kincorth Academy;

(19)   approve the transfer of land at open market value to the HRA and tendering of the site at Tillydrone;

(20)   approve funding for the delivery of the works and associated services in respect of the former Craighill school, former Kincorth Academy and Tillydrone/St Machar sites for the capital programme for the financial year 2019/20 and report back to the relevant committee with a detailed business case;

(21)   approve the transfer of land at open market value from the Common Good Fund to the HRA for the sites at Greenferns/Greenferns Landward and approve funding for the delivery of the works and associated services in respect of the sites for the capital programme for the financial year 2019/20 and report back to the relevant committee with a detailed business case;

(22)   instruct the Director of Resources to market test the feasibility of raising financing for Council housing from alternative sources and report back with the findings;

(23)   note the tender exercise currently being undertaken with land led developer opportunities as detailed in Appendix 1 and approve funding for the delivery of the works and associated services for the capital programme for the financial year 2019/20 for the Dyce/Wellheads site and report back to the relevant committee with a detailed business case;

(24)   instruct the Director of Resources to enter into “without prejudice” discussions with the Council’s development partner to discuss the potential of affordable housing being accommodated in relation to the old Aberdeen Exhibition and Conference Centre site; and

(25)   note the content of Appendix 2 of the report and instruct the Chief Officer - Corporate Landlord to take no further action to install stair lifts in sheltered housing properties.

 

Appendix - Miscellaneous Rents

 

ABERDEEN CITY COUNCIL HOUSING REVENUE ACCOUNT
Proposed Increase to be included in the HRA budget – Miscellaneous Rents
			2019/20
			Current		Proposed		Increase		Percentage
			Rental		Rental		Per Week		Increase
Note	Miscellaneous Increases		£		£		£		%
	Garages		11.30		11.80		0.50		4.42
	Denburn and West North Street Spaces		5.15		5.40		0.25		4.85
1	Denburn and West North Street Spaces - Non Resident		20.00		20.00		0		0
	Garages Sites		4.40		4.60		0.20		4.55
	Car Ports		4.85		5.05		0.20		4.12
	Car Parking Spaces - Local Residents		4.00		4.20		0.20		5.00
1	Parking Spaces Non Local Residents		20.00		20.00		0		0.00
2	Meals at Denmore & Kingswood		35.00		37.50		2.50		7.14
3	Guest Rooms		10 &15		10 &15		0		0
4	House Garden Scheme (annual)		75.60		77.50		1.9		2.5

 

 

Councillor Delaney moved as a further amendment, seconded by Councillor Greig:-

            That the Council -

(1)      approve the budget as attached in Appendix 1 (pages 5 to 6) of the report;

(2)      approve the setting of the weekly unrebated rents for municipal houses at 4.3% to take effect from Monday 29 April 2019;

(3)      instruct the Chief Officer - Early Intervention and Community Empowerment to ensure that the letters regarding the rent increase also informs people in receipt of Universal Credit that it is their responsibility to inform the DWP;

(4)      approve a revenue contribution to the Housing Capital budget of £26.073million for 2019/20 as well as a provisional contribution for the subsequent four financial years as detailed in Appendix 1 of the report;

(5)      approve the proposal to maintain the working balances at 10% to meet future contingencies as detailed in Appendix 1 of the report;

(6)      approve the transfer of £1.6million from the working balance to fund the Solid Wall Insulation programme in 2019/20;

(7)      approve the level of miscellaneous rents and service charges, excluding meals at Denmore and Kingswood as detailed in the Appendix to this amendment;

(8)      approve an increase of £2.50 per week for Denmore and Kingswood and instruct the Chief Officer - Early Intervention and Community Empowerment to report to a relevant future committee to review the policy to ensure the costs of meals are reflective of the cost of services;

(9)      instruct the Chief Officer - Early Intervention and Community Empowerment to report to the Operational Delivery Committee regarding the increase in void properties, detailing the actions to be taken to reduce the number of void properties;

(10)   approve, based on the rent strategy adopted, the Base Capital Programme for the financial year 2019/20 as detailed in Appendix 1 of the report;

(11)   note the indicative level of the Base Capital Programme for the financial years 2020/21 to 2023/24 as detailed in Appendix 1 of the report;

(12)   approve as estimated expenditure in terms of Procurement Regulation 4.1.1, in order for work to commence on the ongoing Capital Programme, the sums shown against each heading of the Housing Capital Expenditure budget for the financial year 2019/20 set out in Appendix 1 of the report without the need for separate committee approval of each;

(13)   remove the delegated power that enables the Chief Officer - Governance to dispose of individual Council owned properties, with the instruction that no further Council owned homes will be available for sale wherever they may be located;

(14)   delegate authority to the Director of Resources, following consultation with the Head of Commercial and Procurement Services, to procure the works referred to in Appendix 1 of the report (pages 17 to 19) and associated services for the capital programme for the financial year 2019/20 and award contracts relating thereto without the need for further approval from any other Committee of the Council subject to due diligence, consistency with the financial model and affordability;

(15)   approve the principle of a long term fixed rent policy and instruct the Chief Officer - Early Intervention and Community Empowerment to undertake a consultation exercise with tenants, elected members and appropriate staff on potential options;

(16)   delegate authority to the Chief Officer - Capital, following consultation with the Head of Commercial and Procurement Services, to award the contract for the Summerhill procurement to develop the site as detailed in Appendix 1 of the report (pages 24 to 25);

(17)   approve the transfer of land at open market value to the HRA of the site at the former Craighill school;

(18)   approve the transfer of land at open market value to the HRA of the site at the former Kincorth Academy;

(19)   approve the transfer of land at open market value to the HRA at Tillydrone;

(20)   approve funding for the delivery of the works and associated services in respect of the former Craighill school, former Kincorth Academy and Tillydrone/St Machar sites for the capital programme for the financial year 2019/20 and delegate authority to the Director of Resources, following consultation with the Convener of the City Growth and Resources Committee and the Head of Commercial and Procurement Services, to consider and approve business cases (including estimated expenditure) for the purposes of Procurement Regulation 4.1.1; and thereafter to procure appropriate works and associated services, and enter into any contracts necessary for the delivery of the projects without the need for further approval from any other committee of the Council subject to due diligence, consistency with the financial model and affordability;

(21)   approve the transfer of land at open market value from the Common Good Fund to the HRA for the sites at Greenferns/Greenferns Landward and approve funding for the delivery of the works and associated services in respect of the sites for the capital programme for the financial year 2019/20, and delegate authority to the Director of Resources, following consultation with the Head of Commercial and Procurement Services, to consider and approve business cases (including estimated expenditures) for the purposes of Procurement Regulation 4.1.1; and thereafter to procure appropriate works and services, and enter into any contracts necessary for the delivery of the projects without the need for further approval from any other committee of the Council subject to due diligence, consistency with the financial model and affordability;

(22)   instruct the Director of Resources to market test the feasibility of raising financing for Council housing from alternative sources;

(23)   note the tender exercise currently being undertaken with land led developer opportunities as detailed in Appendix 1 and approve funding for the delivery of the works and associated services for the capital programme for the financial year 2019/20 for the Dyce/Wellheads site (Appendix 1 pages 26 to 27), and delegate authority to the Director of Resources, following consultation with the Convener of the City Growth and Resources Committee and the Head of Commercial and Procurement Services, to consider and approve business cases (including estimated expenditures) for the purposes of Procurement Regulation 4.1.1; and thereafter to procure appropriate works and services, and enter into any contracts necessary for the delivery of the projects without the need for further approval from any other committee of the Council subject to due diligence, consistency with the financial model and affordability;

(24)   instruct the Director of Resources to enter into “without prejudice” discussions with the Council’s development partner to discuss the potential of affordable housing being accommodated in relation to the old Aberdeen and Exhibition and Conference Centre site;

(25)   note the content of the Appendix 2 to the report and set aside a sum of £100,000 for the Chief Officer - Corporate Landlord to bring forward a feasibility study to the appropriate committee on the costs and viability of using removable, temporary stair lifts, mobility stair climbers or other suitable devices; and

(26)   instruct the Chief Officer - Corporate Landlord to progress and conclude the buyback of ex-Council houses and that a sum of £15million be set aside to fund any suitable purchases that meet the financial sustainability of any purchase.

 

Appendix - Miscellaneous Rents

 

ABERDEEN CITY COUNCIL HOUSING REVENUE ACCOUNT
Proposed Increase to be included in the HRA budget – Miscellaneous Rents
			2019/20
			Current		Proposed		Increase		Percentage
			Rental		Rental		Per Week		Increase
Note	Miscellaneous Increases		£		£		£		%
	Garages		11.30		11.80		0.50		4.42
	Denburn and West North Street Spaces		5.15		5.40		0.25		4.85
1	Denburn and West North Street Spaces - Non Resident		20.00		20.00		0		0
	Garages Sites		4.40		4.60		0.20		4.55
	Car Ports		4.85		5.05		0.20		4.12
	Car Parking Spaces - Local Residents		4.00		4.20		0.20		5.00
1	Parking Spaces Non Local Residents		20.00		20.00		0		0.00
2	Meals at Denmore & Kingswood		35.00		37.50		2.50		7.14
3	Guest Rooms		10 &15		10 &15		0		0
4	House Garden Scheme (annual)		75.60		77.50		1.9		2.5

 

 

During the course of summing up, Councillor Jackie Dunbar intimated that she was willing to incorporate part (21) of Councillor Laing’s motion within her amendment as well as part (25) of Councillor Delaney’s amendment in place of part (25) of her own amendment; and this was accepted by the Lord Provost in terms of Standing Order 28.14.

 

Councillor Laing intimated that she was willing to incorporate part (3) of Councillor Jackie Dunbar’s amendment within her motion; and this was accepted by the Lord Provost in terms of Standing Order 28.14.

 

There being a motion and two amendments, the Council first divided between the amendment by Councillor Jackie Dunbar and the amendment by Councillor Delaney.

 

On a division, there voted:-

 

For the amendment by Councillor Jackie Dunbar  (19)  -  Councillors Al-Samarai, Allard, Alphonse, Cameron, Cooke, Copland, Cormie, Jackie Dunbar, Flynn, Henrickson, Hutchison, MacGregor, Catriona Mackenzie, McLellan, McRae, Nicoll, Noble, Sandy Stuart and Townson.

 

For the amendment by Councillor Delaney  (3)  -  Councillors Delaney, Greig and Yuill.

 

Declined to vote  (23)  -  Lord Provost; Depute Provost; and Councillors Allan, Bell, Boulton, Donnelly, Lesley Dunbar, Duncan, Graham, Grant, Houghton, Hunt, Imrie, John, Laing, Lumsden, Macdonald, Avril MacKenzie, Malik, Mason MSP, Reynolds, Sellar and Wheeler.

 

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

 

On a division, there voted:-

 

For the motion  (23)  -  Lord Provost; Depute Provost; and Councillors Allan, Bell, Boulton, Donnelly, Lesley Dunbar, Duncan, Graham, Grant, Houghton, Hunt, Imrie, John, Laing, Lumsden, Macdonald, Avril MacKenzie, Malik, Mason MSP, Reynolds, Sellar and Wheeler.

 

For the amendment by Councillor Jackie Dunbar  (22)  -  Councillors Al-Samarai, Allard, Alphonse, Cameron, Cooke, Copland, Cormie, Delaney, Jackie Dunbar, Flynn, Greig, Henrickson, Hutchison, MacGregor, Catriona Mackenzie, McLellan, McRae, Nicoll, Noble, Sandy Stuart, Townson and Yuill.

 

The Council resolved:-

to adopt the motion with part (3) of the amendment by Councillor Jackie Dunbar.