Policy and Co-ordination Committee
Due to Scottish Government guidance relating to Covid-19, this meeting will be held remotely
Thursday, 18th February, 2021 - 10.00 a.m.
AGENDA
Page Nos.
1. APOLOGIES FOR ABSENCE
2. DECLARATIONS OF INTEREST – In terms of Section 5 of the Code of Conduct, members of the Committee are asked to declare any interest in particular items on the agenda and the nature of the interest(s) at this stage.
3. MINUTES
(i) Policy and Co-ordination Committee of 7th January, 2021. 3 - 7
(ii) The following Sub-Committee minutes are submitted for noting only:-
• Assets and Corporate Services of 14th January, 2021 8 - 9 • Community and Housing Services of 21st January, 2021 10 – 12 • Education and Children's Services of 26th January, 2021 13 – 17 • Environment and Protective Services of 28th January, 2021 18 – 20 • Economy, Tourism, Strategic Planning and Transportation of 21 - 23 4th February, 2021 4. SHORT-TERM FINANCIAL STRATEGY AND REVENUE BUDGET 24 – 39 MONITORING 2020-21 – Report by the Executive Director (Finance and Corporate Services). 5. CAPITAL INVESTMENT PLAN UPDATE - PROJECTED OUTTURN 40 – 47 2020-21 – Report by the Executive Director (Finance and Corporate Services).
6. CARE HOME REPROVISIONING PROGRAMME - NEW PROPOSAL FOR 48 – 81 REPLACEMENT OF NORTHEDEN HOUSE, CUPAR – Joint report by the Director of Health and Social Care and the Head of Housing Services.
7. HOUSES IN MULTIPLE OCCUPATION (HMO): REVIEW OF CHARGING 82 – 97 STRUCTURE AND FEES – Joint report by the Head of Housing Services and the Head of Protective Services. 8. SEVERE FIFE WIDE FLOOD EVENTS AUGUST 2020 – Joint report by the 98 – 103 Head of Assets, Transportation and Environment and the Head of Communities and Neighbourhoods Service.
9. TRANSFER OF THE CLIMATE CHANGE AND ZERO WASTE TEAM FROM 104 - 107 FIFE RESOURCE SOLUTIONS TO FIFE COUNCIL – Report by the Head of Assets, Transportation and Environment.
ITEM/
1 - 2 -
Page Nos.
ITEM LIKELY TO BE CONSIDERED IN PRIVATE
10. TAY CITIES REGION DEAL – EDEN CAMPUS – Report by the Head of 108 - 119 Business and Employability Services.
Members are reminded that should they have queries on the detail of a report they should, where possible, contact the report authors in advance of the meeting to seek clarification.
Morag Ferguson Head of Legal and Democratic Services Finance and Corporate Services Fife House North Street Glenrothes Fife, KY7 5LT
11th February, 2021.
If telephoning, please ask for: Michelle McDermott, Committee Officer, Fife House Telephone: 03451 555555, ext. 442238; email: [email protected]
Agendas and papers for all Committee meetings can be accessed on www.fife.gov.uk/committees
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THE FIFE COUNCIL - POLICY AND CO-ORDINATION COMMITTEE – REMOTE MEETING
7th January, 2021. 10.00 a.m. – 11.35 a.m.
PRESENT: Councillors David Ross (Convener), David Alexander, David Barratt, John Beare, Tim Brett, Altany Craik, Neil Crooks, Dave Dempsey, Linda Erskine, David Graham, Judy Hamilton, Andy Heer, Helen Law, Carol Lindsay, Donald Lothian, Mino Manekshaw, Karen Marjoram, Tony Miklinski, Fay Sinclair, Ross Vettraino and Craig Walker.
ATTENDING: Steve Grimmond, Chief Executive; Eileen Rowand, Executive Director (Finance and Corporate Services), Elaine Muir, Head of Finance, Morag Ferguson, Head of Legal and Democratic Services, Tracy Hogg, Business Partner, Helena Couperwhite, Manager (Committee Services) and Michelle McDermott, Committee Officer, Legal and Democratic Services, Finance and Corporate Services; Fiona Mckay, Divisional General Manager (Interim) and Vivienne McBride, Change Manager (East Division), Health and Social Care; Keith Winter, Executive Director (Enterprise and Environment), Ken Gourlay, Head of Assets, Transportation and Environment, Gordon Mole, Head of Business and Employability and Derek Crowe, Senior Manager (Roads and Transportation), Assets, Transportation and Environment; Paul Short, Service Manager, Housing Services; and Sharon Douglas, Community Investment Team Manager, Communities and Neighbourhoods Service.
Prior to commencement of formal business, the Convener, on behalf of the Committee, expressed their sadness at the news of the death of former Provost John Simpson and passed on their condolences to his family and friends.
The Convener advised that, in terms of Standing Order No. 3.8, a report relating to the suspension of parking charges would be considered as an urgent item as the decision had financial implications and could not wait until the next meeting of the Committee. The item would be taken after the Covid-19 Update.
253. DECLARATIONS OF INTEREST
Decision
No Declarations of Interest were submitted in terms of Standing Order No. 7.1.
254. MINUTES
(a) Policy and Co-ordination Committee of 19th November, 2020
Decision
The Committee approved the minute.
(b) The following minutes were submitted for noting:- • Community and Housing Services of 24th November, 2020 • Environment and Protective Services of 3rd December, 2020 • Economy/ 3 2021 PC 128
• Economy, Tourism, Strategic Planning and Transportation of 10th December, 2020
Decision
The minutes were noted.
255. COVID-19 UPDATE
Steve Grimmond, Chief Executive provided an update on the Covid-19 situation advising that two days ago Scotland had moved into a temporary lockdown until at least the end of January with Fife having only recently moved into Level 4 restrictions on 26th December. Over the last week, it had been reported that there had been a significant rise in the level of infections in Scotland with the current level in Fife at 212 weekly infections per 100,000 population and a positivity rate at 10.4%. The Scottish Government had advised that it was now a legal requirement to stay at home except for essential purposes including work that could not be done from home, exercise, caring and essential shopping.
The Chief Executive advised that he had recently re-convened the Council’s Incident Management Team to review the implications of the lockdown for the workforce and the services that the Council provided advising that the Council were re-enforcing its message that staff should work from home if possible. Directorates were also reviewing essential services and roles to ensure that everybody was clear on who should and should not be coming into the workplace.
The Chief Executive then gave a brief summary of services being provided including Education and Children’s Services where schools and early learning/childcare centres were only open to vulnerable young people and keyworkers’ children until 1st February, 2021. Schools would, however, provide online learning from Monday, 11th January until 1st February.
Community centres and community use schools were closed until 1st February, however, they would continue to operate to support some essential work including emergency food provision, essential childcare and were also being used as covid testing and vaccination centres. Customer service centres remained open for essential appointments and the customer contact centre and covid community helpline continued to support local people.
The provision of strategic framework grants to businesses continued but business support had been expanded to taxis, travel agents, mobile businesses and hospitality which was being finalised with the Scottish Government for local implementation.
The Health and Social Care Partnership continued to provide essential services to Fife’s most vulnerable people whilst balancing the demands of Covid-19 and the pressure of winter demands. The Covid Vaccination Programme, led by NHS Fife and the Health and Social Care Partnership, was underway with initial priority groups being vaccinated.
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256. URGENT ITEM – COVID-19: SUSPENSION OF PARKING CHARGES
The Committee considered a report by the Senior Manager (Roads and Transportation Services) seeking approval for the suspension of all public parking charges and time limited parking restrictions across Fife from Monday, 11th January, 2021 until such time as the full lockdown had been lifted by the Scottish Government.
Decision
The Committee approved the suspension of parking charges and time limited restrictions in all Fife Council public parking places from Monday, 11th January, 2021 until such time that the full lockdown had been lifted by the Scottish Government.
256. SHORT-TERM FINANCIAL STRATEGY AND REVENUE BUDGET MONITORING 2020/21
The Committee considered a report by the Executive Director (Finance and Corporate Services) providing members with a strategic overview of Fife Council's forecast financial position for 2020-21 noting that significant financial pressures had emerged as a result of the Covid-19 pandemic. The report provided an update detailing the changes to both the anticipated financial impact and the financial strategy.
Decision
The Committee:-
(1) noted the updated high-level financial position as detailed in the report;
(2) instructed all Services to continue to mitigate additional costs and to contain expenditure within the approved budget provision wherever possible; and
(3) noted that further monitoring reports would be submitted to the Policy and Co-ordination Committee and relevant Sub-Committees.
257. CAPITAL INVESTMENT PLAN UPDATE - PROJECTED OUTTURN 2020/21
The Committee considered a report by the Executive Director (Finance and Corporate Services) providing members with a strategic financial overview of the Capital Investment Plan and advised on the projected outturn for the 2020-21 financial year.
Decision
The Committee noted:-
(1) the projected outturn position, the risks and mitigating actions for the major projects within the Capital Investment Plan;
(2) the projected outturn position for the 2020-21 Capital Investment Plan;
(3)/ 5 2021 PC 130
(3) that more detailed capital outturn reports for 2020-21 would be submitted to relevant Sub-Committees of the Council, in accordance with agreed financial reporting arrangements; and
(4) that budget variances would be managed by the appropriate Directorate in conjunction with the Investment Strategy Group.
258. CARE HOME REPROVISIONING PROGRAMME - NEW PROPOSAL FOR REPLACEMENT OF NORTHEDEN HOUSE, CUPAR
Decision
It was agreed to withdrawn this item and defer it to a future meeting as further officer consultation was required.
259. CARE HOME REPROVISIONING PROGRAMME - REPLACEMENT OF LADYWALK HOUSE BUSINESS CASE
The Committee considered a joint report by the Director of Health and Social Care and Head of Housing Services presenting the Business Case for a new care home with day service provision to replace Ladywalk House in Anstruther on Housing Service's Mayview Court site. The new building would be an integrated building with Housing Services accommodating 24 residential care home beds, 12 extra care housing units and shared services with two specific needs housing bungalows also being constructed on the site.
Motion
Councillor David Graham, seconded by Councillor David Alexander, moved that the recommendations contained within the report be approved.
Amendment
Councillor Dave Dempsey, seconded by Councillor Tony Miklinski, moved as follows:-
“That the decision on this business case be delayed until the February meeting to allow the identified shortcomings to be addressed and to receive a report on the capacity and interest of the private care companies to deliver Option 3.”
Roll Call For the motion – 17 votes Councillors David Alexander, David Barratt, John Beare, Tim Brett, Altany Craik, Neil Crooks, Linda Erskine, David Graham, Judy Hamilton, Helen Law, Carol Lindsay, Donald Lothian, Karen Marjoram, David Ross, Fay Sinclair, Ross Vettraino and Craig Walker.
For the amendment – 4 votes Councillors Dave Dempsey, Andy Heer, Mino Manekshaw and Tony Miklinski.
The motion was accordingly carried.
Decision/ 6 2021 PC 131
Decision
The Committee:-
(1) noted the contents of the report;
(2) agreed to proceed to the Design Phase for the procurement, delivery and management of the proposed new care home/extra care housing facility on the Mayview Court site in Anstruther;
(3) agreed to the project drawing funds from the Capital Minor Works budget to meet an anticipated capital shortfall of £1,470,000;
(4) agreed to the development of 12 extra care housing flats within the Care Village; and
(5) agreed that further update reports be submitted back to this Committee at appropriate intervals.
260. CROWN ESTATE FUNDING
The Committee considered a report by the Head of Business and Employability Services providing an update on the allocation of Scottish Crown Estate funding and outlined a recommended approach for the future allocation of the funds.
Decision
The Committee:-
(1) noted the proposals supported from the allocation of Crown Estate funding throughout 2019/2020;
(2) noted the proposals supported from the allocation of Crown Estate funding throughout 2020/2021 to date; and
(3) approved the recommended approach for future allocation of Crown Estate funding received by Fife Council to support Climate Action Fife.
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THE FIFE COUNCIL - ASSETS AND CORPORATE SERVICES SUB-COMMITTEE – REMOTE MEETING
14th January, 2021 10.01 a.m. – 10.33 a.m.
PRESENT: Councillors David Barratt (Convener), David Alexander, Alistair Bain, Alex Campbell, Mick Green, Gary Guichan, Garry Haldane, Craig Walker, David MacDiarmid, John OBrien, Ross Paterson, Bill Porteous and Graham Ritchie.
ATTENDING: Keith Winter, Executive Director - Enterprise and Environment, Ken Gourlay, Head of Assets, Transportation and Environment, Assets, Transportation and Environment; Donna Grieve, Accountant, Caroline Ritchie, Accountant, Finance and Corporate Services; and Michelle Hyslop, Committee Officer, Legal and Democratic Services.
164. DECLARATIONS OF INTEREST
No declarations of interest were submitted in terms of Standing Order No. 7.1.
165. MINUTE OF ASSETS AND CORPORATE SERVICES SUB COMMITTEE OF 29TH OCTOBER, 2020
The Committee considered the minute of the meeting of the Assets and Corporate Services Committee of 29th October, 2020.
Decision
The Committee agreed to approve the minute.
166. CHANGE TO MEMBERSHIP
The Committee noted that Councillor David Barratt had replaced Councillor Karen Marjoram as a member of Assets and Corporate Services Sub-Committee.
The Convener extended his thanks to the Councillors on behalf of the Committee for the support and contribution to the Assets and Corporate Services Sub- Committee.
167. 2020/21 REVENUE MONITORING PROJECTED OUTTURN – FINANCE AND CORPORATE SERVICES
The Committee considered a report by the Executive Director, Finance and Corporate Services providing an update on the 2020/21 provisional outturn for the Finance and Corporate Services Directorate.
Decision
The Committee acknowledged the current financial performance and activity as detailed in the report.
168./
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168. 2020/21 CAPITAL MONITORING PROJECTED OUTTURN – FINANCE AND CORPORATE SERVICES DIRECTORATE
The Committee considered a report by the Executive Director, Finance and Corporate Services providing an update on the Capital Investment Plan and advising on the financial position for the 2020/21 financial year for the Finance and Corporate Services Directorate.
Decision
The Committee acknowledged the current performance and activity across the 2020/21 Financial Monitoring as detailed in the report.
169. 2020/21 REVENUE MONITORING PROJECTED OUTTURN – ENTERPRISE AND ENVIRONMENT DIRECTORATE
The Committee considered a joint report by the Executive Director, Finance and Corporate Services and the Executive Director, Enterprise and Environment providing an update on the provisional financial position for 2020/21 for the areas in scope of the Assets and Corporate Services Sub-Committee in relation to Assets only.
Decision
The Committee acknowledged the current financial performance and activity as detailed in the report.
170. 2020/21 CAPITAL MONITORING PROJECTED OUTTURN - ENTERPRISE AND ENVIRONMENT DIRECTORATE
The Committee considered a joint report by the Executive Director, Finance and Corporate Services and the Executive Director, Enterprise and Environment providing an update on the Capital Investment Plan and advising on the provisional financial position for the 2020/21 financial year for areas in scope of the Assets and Corporate Services Sub-Committee in relation to Assets only.
Decision
The Committee acknowledged the current performance and activity across the 2020/21 Financial Monitoring as detailed in the report.
171. ASSETS AND CORPORATE SERVICES SUB COMMITTEE FORWARD WORK PROGRAMME
Decision
The Committee noted the current work programme for the Assets and Corporate Services Sub-Committee.
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THE FIFE COUNCIL - COMMUNITYAND HOUSING SERVICES SUB-COMMITTEE – REMOTE MEETING
21st January, 2021 10.00 a.m. – 12.50 p.m.
PRESENT: Councillors Judy Hamilton (Convener), Lesley Backhouse, Ken Caldwell, Alistair Cameron, Rod Cavanagh (substituting for Councillor Julie Ford), Neil Crooks, Linda Erskine, Fiona Grant, Helen Law, Donald Lothian, Alice McGarry, Graham Ritchie, David J Ross and Darren Watt.
ATTENDING: Michael Enston, Executive Director – Communities and Paul Vaughan, Head of Communities and Neighbourhoods; Lesley Kenworthy, Business Partner, Finance; John Mills, Head of Housing and Mark Mccall, Service Manager (Safer Communities), Housing Services; and Wendy MacGregor, Committee Officer, Legal and Democratic Services.
ALSO IN Jeremy Harris, Chief Executive, Fife Coast and Countryside Trust (for ATTENDANCE: para. 201 only); Heather Stuart, Chief Executive and Michelle Sweeney, Director of Creative Development and Delivery, Fife Cultural Trust (ONFife) (for para. 201 only); Alistair MacGregor, Chief Executive, Fife Golf Trust (for para. 201 only).and Emma Walker, Fife Sports and Leisure Trust (for para. 201 only).
Prior to the start of formal Sub-Committee business, Councillor Judy Hamilton, Convener, acknowledged that Councillor Julie Ford was on maternity leave and, on behalf of the Sub-Committee, congratulated Julie and her husband Craig on the arrival of their daughter on 9th January, 2021.
During the Sub-Committee meeting, word was received that the funeral of Bill Taylor, member of Ravenscraig Tenants and Residents Association had taken place and, on behalf of the Sub-Committee, Councillor Judy Hamilton, Convener, offered her condolences to the colleagues, family and friends of Bill Taylor.
198. DECLARATIONS OF INTEREST
Councillor Backhouse declared an interest in Para. 198 - Trust - Annual Reports - as she was a Director on the Board for Fife Cultural Trust and Fife Golf Trust.
Councillor Caldwell declared an interest in Para. 198 - Trust Annual Reports - as he was a Fife Council appointee on the board for the Fife Coast and Countryside Trust and Fife Sports and Leisure Trust.
Councillor Neil Crooks declared an interest in Para. 198 - Trust Annual Reports - as he was a Fife Council appointee on the Board for the Fife Golf Trust.
Councillors Linda Erskine, Donald Lothian and Darren Watt declared an interest in Para. 198 - Trust Annual Reports - as they were Fife Council appointees on the Board for the Fife Sports and Leisure Trust.
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199. MINUTE
The Sub-Committee considered the minute of the Community and Housing Services Sub-Committee of 24th November, 2020.
Decision
The Sub-Committee agreed to approve the minute.
200. REVIEW OF HOUSING SERVICES ANTISOCIAL BEHAVIOUR POLICY
The Sub-Committee considered a report by the Head of Housing seeking approval for a revised housing policy on tackling antisocial behaviour and provided members with recommendations for a change in how Fife Council tackled antisocial behaviour, designed to improve the quality of service provided.
Decision
The Sub-Committee:-
1. approved the Housing Services Antisocial Behaviour policy for 2020-2022 in consultation with Tenants and Residents Groups;
2. acknowledged and supported the proposed changes to the first point of contact response to antisocial behaviour complaints and case management of more complex cases; and
3. agreed to the proposed increased resources required to implement the improved response to complaints of Antisocial Behaviour.
Councillor Fiona Grant joined the meeting during consideration of this item.
201. TRUST ANNUAL REPORTS
The Sub-Committee considered a report by the Head of Communities and Neighourhoods detailing the performance of the four Leisure, Culture and Sports Trusts in Fife - Fife Cultural Trust (OnFife), Fife Coast and Countryside Trust, Fife Golf Trust and Fife Sports and Leisure Trust - in their operations from 1st April, 2019 to 31st March, 2020.
Decision
The Sub-Committee:-
1. noted the performance of the four trusts during 2019/20;
2. acknowledged the work that was underway in responding to the impact of Covid-19 and as part of the reform for the agenda for the Council; and
3. congratulated the four Trusts on their performance under very challenging circumstances.
Councillor/
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Councillor Donald Lothian left the meeting during consideration of the above item.
The meeting adjourned at 11.35 a.m. and reconvened at 11.45 a.m.
202. 2020/21 CAPITAL MONITORING
The Sub-Committee considered a report by the Executive Director, Finance and Corporate Services and the Executive Director, Communities providing an update on the Capital Investment Plan and advising on the projected financial position for the 2020/21 financial year.
Decision
The Sub-Committee noted the current performance and activity across the 2020/21 Financial Monitoring as detailed in the report.
203. 2020/21 REVENUE MONITORING
The Sub-Committee considered a report by the Executive Director, Finance and Corporate Services and the Executive Director, Communities providing an update on the projected outturn position for the 2020/21 financial year for the areas in scope of the Community and Housing Services Sub-Committee.
Decision
The Sub-Committee noted the current financial performance and activity as detailed in the report.
204. COMMUNITY AND HOUSING SERVICES SUB-COMMITTEE FORWARD WORK PROGRAMME
The Sub-Committee considered the Community and Housing Services Sub- Committee Forward Work Programme.
Decision
The Sub-Committee noted the Forward Work Programme which would be updated as appropriate.
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THE FIFE COUNCIL - EDUCATION & CHILDREN'S SERVICES SUB-COMMITTEE – REMOTE MEETING
26th January, 2021 10.00 a.m. – 12.20 p.m.
PRESENT: Councillors Craig Walker (Convener), James Calder, Bobby Clelland, Dave Dempsey, Linda Erskine, Ian Ferguson, Gary Guichan, Helen Law, Kathleen Leslie, Rosemary Liewald, Rod Cavanagh (substituting for Councillor Julie Ford), Dominic Nolan, Ross Paterson, Fay Sinclair, Alistair Suttie and Mr. William Imlay.
ATTENDING: Kathy Henwood, Head of Education & Children's Services; Shelagh McLean, Head of Education & Children's Services (Early Years and Directorate Support); Lynn Gillies, Service Manager (Operations Glenrothes/Family Support); Jackie Funnell, Education Manager; Avril Graham, Sustainable Estate Officer; Alan Small, Independent Chair, Child Protection Committee; Education & Children’s Services; Christine Moir, Senior Manager, Children & Families and Criminal Justice Services; Deborah Davidson, Education Manager (GIRFEC); Chris Campbell, Team Manager, Social Work Resources Service; Alison Binnie, Business Partner, Finance; and Diane Barnet, Committee Officer, Legal & Democratic Services.
APOLOGIES FOR Mr. Alastair Crockett and Mr. George Haggarty. ABSENCE:
VALEDICTORY
Prior to consideration of formal Committee business, Councillor Craig Walker, incoming Convener, on behalf of the Committee, thanked Councillor Fay Sinclair for her contribution to the Committee as Convener for over 3 years and her hard work in support of Education and Children’s Services in Fife.
COVID-19 - UPDATE Also prior to consideration of formal Committee business, Carrie Lindsay, Executive Director, Education and Children's Services, provided a brief update relating to the impact on education provision due to changing circumstances around COVID-19 regulations, including:
• School attendance - keeping attendance numbers to a minimum to help prevent transmission of the virus/new variant (vulnerable children/children of key workers); • School bus/transport - number of buses now reduced, according to current demand; • Remote learning - supporting schools to deliver learning in a variety of creative and innovative ways, including but not limited to online learning; and • Qualifications – SQA to provide further guidance about the assessment process with coursework continuing meantime.
The Executive Director commended the dedication of teaching/support staff and expressed gratitude to all involved Council services for their continued support of the Education Service.
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190. DECLARATIONS OF INTEREST
Councillor Nolan declared an interest in Para. 192 - 'Support for Voluntary Organisations' - due to his involvement with Families First, a third sector organisation in receipt of funding from Fife Council.
191. MINUTES
(a) Minute of Meeting of Education and Children's Services Sub-Committee of 3rd November, 2020
The Committee considered the minute of the Education and Children's Services Sub-Committee of 3rd November, 2020.
Decision
The Committee:-
(1) arising from the minute, with reference to Para. 183 - 'Building Fife's Future' - acknowledged an update on the progress of St. Columbas, Inverkeithing and Woodmill High Schools and Dunfermline Learning Campus projects;
(2) noted that a report on progress with the Dunfermline Learning Campus was expected to be available for consideration at the next meeting of this Sub-Committee on 16th March, 2021; and
(3) Otherwise agreed to approve the minute.
(b) Minutes of Meeting of the Education Appointment Committee of 27th October, 17th November and 4th December, 2020
Decision
The Committee agreed to approve the minutes.
Councillor Nolan, having earlier declared an interest, left the meeting prior to consideration of the following item.
192. SUPPORT FOR VOLUNTARY ORGANISATIONS
The Committee considered a report by the Executive Director, Education and Children's Services detailing progress on the re-modelling of Children and Families Services and providing options for the new recommissioning model for 2021-22.
Decision
The Committee:-
(1) agreed to approve Option 3: recommissioning with a transition period - for implementation in 2021-22;
(2)/
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(2) noted the grant application process that had been undertaken and was completed; and
(3) agreed to receive 4-weekly update briefings on progress toward implementation.
Councillor Nolan re-entered the meeting following consideration of the above item.
193. PROPOSED MOTHBALLING OF MILTON OF BALGONIE PRIMARY SCHOOL
The Committee considered a report by the Executive Director, Education and Children's Services proposing the mothballing of Milton of Balgonie Primary School, with immediate effect, given the declining school roll at the School and the fact that no children enrolled for session 2019/20 or 2020/21.
Decision
The Committee agreed:-
(1) with the proposal to mothball Milton of Balgonie Primary School with immediate effect;
(2) that, during the mothballing period, any children wishing to enrol at Milton of Balgonie Primary School will be offered a place at Coaltown of Balgonie Primary School and provided with free transport if they met the distance criteria;
(3) that the resources and furniture within the school be offered to surrounding schools; and
(4) that a further report reviewing this decision be considered by this Sub- Committee in September 2021.
194. CHILDREN'S SERVICES INSPECTION UPDATE
The Committee considered a report by the Executive Director, Education and Children's Services providing an update on the Care Inspectorate Improvement Plan following the 2019 Children’s Services Inspection.
Decision
The Committee:-
(1) noted the outcome of the update report and the progress made;
(2) recognised that the work was progressing and was being reviewed within the Children in Fife group;
(3) agreed to consider a further update report in 12 months on progress made as well as the three responsible strategic groups reporting on their ongoing activity to Children in Fife group; and
(4)/
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(4) agreed that the update report at (3) above would include more detail on the 'Child Wellbeing Pathway' relating to early and effective intervention.
The meeting adjourned at 11.27 a.m. ______
The meeting reconvened at 11.39 a.m.
195. INSPECTION OUTCOMES
The Committee considered a report by the Executive Director, Education and Children's Services providing an overview of the outcomes and key messages from inspections of the following:-
• Early Learning and Childcare (ELC) settings, Primary, Secondary and Special Schools undertaken by Education Scotland; • Care Inspectorate within the Early Learning Centres; • Care Inspectorate within Family Placement Service; and • Care Inspectorate within Out of School/Creche Provision.
Decision
The Committee:-
(1) scrutinised the report in detail and thereafter acknowledged the outcomes of the overview; and
(2) noted areas of success and progress, as well as the actions being taken to ensure continued improvement.
Mr. William Imlay left the meeting during consideration of the above item and Councillor Leslie left the meeting following consideration of the above item.
196. EDUCATION & CHILDREN’S SERVICES DIRECTORATE - REVENUE BUDGET 2020-21, PROJECTED OUTTURN
The Committee considered a joint report by the Executive Director, Education and Children's Services and the Executive Director, Finance and Corporate Services providing an update on the forecast financial position for the 2020-21 financial year, for the areas in scope of the Education and Children’s Services Committee.
Decision
The Committee:-
(1) considered and noted the current financial performance and activity as detailed in the report;
(2) noted that officers would ensure that the risks associated with Looked After Children were appropriately managed whilst taking action to address the projected overspend in Children and Families Service; and
(3)/
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(3) noted that the Education and Children’s Services Directorate continued to implement the Children and Families Strategy to reduce the reliance on purchased care placements and increase the number of children who could be looked after safely at home or in kinship care.
197. EDUCATION AND CHILDREN’S SERVICES DIRECTORATE CAPITAL INVESTMENT PLAN 2020-2021: PROGRESS REPORT
The Committee considered a joint report by the Executive Director, Education and Children's Services and the Executive Director, Finance and Corporate Services providing information on the overall progress of the Education and Children’s Services Directorate’s capital programme for the current financial year 2020-21, as well as informing of progress on major projects.
Decision
The Committee:-
(1) noted the financial position as detailed in the report, and
(2) noted that the budget had been revised to reflect the outcome of the Capital Plan review undertaken in February, 2019 and the subsequent re- phasing exercise carried out in July, 2020.
198. EDUCATION & CHILDREN'S SERVICES SUB-COMMITTEE FORWARD WORK PROGRAMME 2021
The Committee considered the Education and Children's Services Sub- Committee Forward Work Programme 2021.
Decision
The Committee noted the Education and Children's Services Sub-Committee Forward Work Programme 2021, subject to amendment to include the following reports:-
• progress update on the 'Mothballing of Milton of Balgonie Primary School' (Para. 193 (4) refers) - September 2021;
• update on progress made in relation to 'Children's Services Inspection' (Para. 194 (3) refers) - January 2022; and
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THE FIFE COUNCIL - ENVIRONMENT & PROTECTIVE SERVICES SUB-COMMITTEE – REMOTE MEETING 28 January, 2021 10.00 a.m. - 11.20 a.m.
PRESENT: Councillors Ross Vettraino (Convener), David Barratt, Rod Cavanagh, Gavin Ellis, David Graham, Sharon Green-Wilson, Jean Hall Muir, Judy Hamilton, Andy Heer, Gordon Langlands, Alice McGarry, Derek Noble, Dominic Nolan, Jonny Tepp and Jan Wincott. ATTENDING: Ken Gourlay, Head of Service, Ross Speirs, Service Manager (Structural Services), Rick Haynes, Lead Consultant, Flooding, Shoreline & Harbours, Assets, Transportation & Environment; Barry Collie, Accountant, Finance and Elizabeth Mair, Committee Officer, Legal & Democratic Services, Finance & Corporate Services.
ALSO Local Senior Officer Mark Bryce and Group Commander Calum Bruce, ATTENDING: Scottish Fire & Rescue Service.
173. DECLARATIONS OF INTEREST
No declarations of interest were submitted in terms of Standing Order No. 7.1. 174. MINUTE
The Sub-Committee considered the minute of meeting of the Environment & Protective Services Sub-Committee of 3 December 2020. Decision
The Sub-Committee agreed to approve the minute. Councillor Tepp joined the meeting at this stage.
175. 2020/21 REVENUE MONITORING PROJECTED OUTTURN
The Sub-Committee considered a joint report by the Executive Director, Finance & Corporate Services and the Executive Director, Enterprise & Environment, providing an update on the projected outturn financial position as at October, 2020 for the 2020/21 financial year for the areas in scope of the Environment and Protective Services Sub-Committee.
Decision
The Sub-Committee noted the current financial performance and activity as detailed in the report.
176. 2020/21 CAPITAL MONITORING PROJECTED OUTTTURN The Sub-Committee considered a joint report by the Executive Director, Finance & Corporate Services and the Executive Director, Enterprise & Environment providing an update on the Capital Investment Plan and advising on the projected financial financial position as at October, 2020 for the 2020/21 financial year for areas in scope of the Environment and Protective Services Sub-Committee. The Sub-Committee was advised that the figure of £6.656m in paragraph 3.1 should read £4.656m.
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Decision
The Sub-Committee noted the current performance and activity across the 2020/21 Financial Monitoring as detailed in the report.
177. SEVERE FLOODING - AUGUST 2020 UPDATE
The Sub-Committee considered a report by the Head of Assets, Transportation & Environment providing an update on outcomes of the consultation exercise with Elected Members regarding the August flood events across Fife.
Decision
The Sub-Committee:-
(1) noted that, following a consultation exercise, a full register of August flood events was now in place;
(2) noted that a report would be submitted to the Policy and Co-ordination Committee seeking to address issues associated with flooding outwith the remit of the Environment and Protective Services Sub-Committee; and
(3) agreed that a further report be submitted to the next meeting of the Environment and Protective Services Sub-Committee providing an update on work being undertaken to assess sites affected by flooding.
Councillor Hamilton joined the meeting during consideration of the above item.
178. FLOOD RISK MANAGEMENT (SCOTLAND) ACT 2009 - CYCLE 1 UPDATE AND CYCLE 2 CONSULTATION
The Sub-Committee considered a report by the Head of Assets, Transportation & Environment providing an update on the status of ongoing Local Flood Risk Management Plan Actions (Cycle 1) and introducing a public consultation exercise by SEPA on the Flood Risk Management Strategies and Flood Risk Management Plans (Cycle 2).
Decision
The Sub-Committee:-
(1) noted that SEPA’s public consultation exercise commenced on 21 December 2020 and would end on 22 September 2021;
(2) noted the updates to Cycle 1 Actions for the 4 Local Plan Districts covering the Fife Council boundary; and
(3) agreed the Council’s continued input to the refinement of the Actions in conjunction with SEPA, with a view to gaining Scottish Minister sign-off by December 2021.
179./
19 2021 EPS 71
179. SCOTTISH FIRE & RESCUE SERVICE LOCAL PLAN 6 MONTHS PERFORMANCE REPORT
The Sub-Committee considered a report by the Local Senior Officer, Scottish Fire & Rescue Service providing incident information for the period 1 April to 30 September 2020 to enable the Sub-Committee to scrutinise the Fife Local Senior Officer Area against its key performance indicators (KPIs).
Decision
The Sub-Committee noted:-
(1) the progress across a range of KPI’s as contained within the report; and
(2) that Group Commander Calum Bruce was attending his last meeting of the Sub-Committee prior to retirement and expressed their appreciation of his work and contributions and wished him well for the future.
180. ENVIRONMENT & PROTECTIVE SERVICES SUB-COMMITTEE FORWARD WORK PROGRAMME
The Sub-Committee noted the current Environment and Protective Services Sub- Committee Forward Work Programme which would be further updated as appropriate.
______
20 2021 ETSPT 66
THE FIFE COUNCIL - ECONOMY TOURISM STRATEGIC PLANNING AND TRANSPORTATION SUB-COMMITTEE – REMOTE MEETING
4th February, 2021 10.00 am – 10.45 am
PRESENT: Councillors Altany Craik (Convener), John Beare, Ian Cameron, Bill Connor, Sharon Green-Wilson, Jean Hall-Muir, Jane Ann Liston, Mino Manekshaw, Ross Paterson, David J Ross, Alistair Suttie, Ann Verner and Jan Wincott.
ATTENDING: Keith Winter, Executive Director - Enterprise and Environment; Ken Gourlay, Head of Assets, Transportation and Environment; Pam Ewen, Head of Planning, Alastair Hamilton, Service Manager - Development Management, Gordon Mole, Head of Business and Employability, Economy, Planning & Employability Services; Jackie Johnstone, Accountant, Finance and Corporate Services; and Lesley Robb, Lead Officer (Committee Services), Legal & Democratic Services.
APOLOGY FOR Councillor Dave Coleman. ABSENCE:
URGENT BUSINESS BEING BROUGHT FORWARD BY THE CONVENER
The Convener advised of an additional item which he had agreed to take as urgent business in terms of Standing Order No. 3.8, relating to COVID-19 Response Activity, providing an update on the work of Officers in relation to the ongoing situation surrounding the pandemic.
153. DECLARATIONS OF INTEREST
Decision
No declarations were made in terms of Standing Order No. 7.1.
154. MINUTE
The Sub-Committee considered the minute of the meeting of the Economy, Tourism, Strategic Planning and Transportation Sub-Committee meeting of 10th December 2020.
Decision
The Sub-Committee approved the minute.
155./
21 2021 ETSPT 67
155. URGENT ITEM – COVID-19 RESPONSE ACTIVITY
The Head of Business and Employability provided the Sub-Committee with a verbal update on recent activity by officers in relation to the response to the COVID-19 pandemic.
The update included an overview on the support provided to local businesses including the administering of various grants and support payments to businesses, as a result of the recent Scottish Government restrictions imposed due to the current pandemic.
The Sub-Committee Members was also provided with up to date figures on the unemployment rate for Fife and those claiming out of work benefits, with a brief outline of the work being undertaken to support jobseekers.
Decision
The Sub-Committee noted:
(1) the update provided; and
(2) that Members would shortly be provided with a briefing note including up to date statistics on the recent work carried out by officers.
156. PLANNING PERFORMANCE FRAMEWORK 9 (2019-2020): MINISTER'S FEEDBACK
The Sub-Committee considered a report by the Head of Planning briefing members on the performance of the Planning Authority, as set out in the Planning Performance Framework (PPF9) over the period 2019-20 and the feedback received from the Scottish Government.
Decision
The Sub-Committee:-
(1) scrutinised the performance of the Planning Authority as set out in the Planning Performance Framework 9; and
(2) acknowledged progress on that performance.
157. 2020/21 REVENUE MONITORING PROJECTED OUTTURN
The Sub-Committee considered a joint report by the Executive Director, Finance and Corporate Services and the Executive Director, Enterprise and Environment providing members with an update on the projected outturn financial position, as at October for the 2020/21 financial year, for the areas in scope of the Economy, Tourism, Strategic Planning and Transportation Sub-Committee.
Decision/
22 2021 ETSPT 68
Decision
The Sub-Committee considered and noted the current financial performance and activity as detailed in the report.
158. 2020/21 CAPITAL MONITORING PROJECTED OUTTURN - ENTERPRISE AND ENVIRONMENT DIRECTORATE
The Sub-Committee considered a joint report by the Executive Director, Finance and Corporate Services and the Executive Director, Enterprise and Environment providing an update on the Capital Investment Plan and advising on the projected financial position, as at October, for the 2020/21 financial year for areas in scope of the Economy, Tourism, Strategic Planning and Transportation Sub-Committee.
Decision
The Sub-Committee considered and noted the current performance and activity across the 2020/21 financial monitoring, as detailed in the report.
159. ECONOMY TOURISM STRATEGIC PLANNING AND TRANSPORTATION SUB-COMMITTEE FORWARD WORK PROGRAMME
Decision
The Sub-Committee:-
(1) noted the forward work programme for the Economy, Tourism, Strategic Planning and Transportation Sub-Committee; and
(2) agreed to contact the Convener to discuss any items of business they would like added to the forward work programme.
23 Policy and Co-ordination Committee
18th February, 2021. Agenda Item No. 4
Short Term Financial Strategy and Revenue Budget Monitoring 2020-21
Report by: Eileen Rowand, Executive Director (Finance and Corporate Services)
Wards Affected: All
Purpose The purpose of this report is to provide members with a strategic overview of Fife Council’s forecast financial position for 2020-21. Significant financial pressures have emerged as a result of the COVID-19 pandemic as outlined in previous reports. This report provides an update detailing the changes to both the anticipated financial impact and the financial strategy.
Recommendations Members are asked to:-
(i) note the updated high-level financial position as detailed in this report; (ii) instruct all Services to continue to mitigate additional costs and to contain expenditure within the approved budget provision wherever possible; and (iii) note that further monitoring reports will be submitted to the Policy and Co-ordination Committee and relevant Sub-Committees. Resource Implications
Dealing with the emergency and critical responses resulting from COVID-19 continues to have significant impact on the Council’s finances and resources. Previous reports identified the financial consequences as the Council continues to comply with updated Government guidance associated with COVID-19. The response to the pandemic continues to impact on costs and loss of income and the financial consequences are likely to continue in the medium-term. The financial consequences are continually being evaluated and are now estimated to be in the region of £66m for the financial year.
An update on the funding options available to offset these costs is set out in a table in Section 3 of this report. At present it is anticipated that there will be a shortfall of £3.7m which is within the agreed strategy of using up to £10m of funding from general fund balances. The recent Scottish Budget announcement and Local Government settlement indicated that an additional £110m would be made available for the Loss of Income Scheme. At the time of writing, the distribution of these funds had still to be agreed. The table at paragraph 3.5 sets out the most recent quantifiable changes to the funding options. The aim of the financial strategy is to ensure continued financial sustainability for the Council in the medium term, recognising some of the financial challenges are likely to reach beyond the end of the current financial year. This is recognised in the Local Government settlement for 2020-21 with funding of £259m being made available across Scotland, again the distribution is yet to be agreed. 24 Fife remains in COVID-19 protection Level 4 meaning that the current restrictions and associated financial consequences are continuing. There is a risk that the financial impact of any further restrictions relating to COVID-19 may place further pressure on the financial strategy. The Executive Director (Finance and Corporate Services) has a statutory duty as Section 95 Officer to ensure that the Council operates within available resources and remains financially sound over the short, medium and long term. The current crisis is challenging the ability of the Council to operate within available resources and action continues to be taken at both a local and a national level to ensure that this duty can be fulfilled. The report provides an update on the current position and outlines that work continues to be advanced to secure the financial stability of the Council. The COVID-19 pandemic has resulted in significant additional costs and loss of income to the Council and the short-term financial strategy has been developed to mitigate against these. The projected outturn position now includes both the expected costs, loss of income and the proposed mitigations being adopted.
Legal & Risk Implications
There are no direct legal implications arising from this report.
Impact Assessment
An EqIA is not required because the report does not propose a change or revision to existing policies and practices.
Consultation None.
1.0 Background
1.1 This report provides a further update and builds upon earlier financial reports provided throughout the financial year as the events of the COVID-19 pandemic unfolded. Section 2 provides a high-level update detailing what financial assumptions have changed since the previous report.
1.2 Section 3 of the report outlines that the agreed financial strategy for 2020-21 will maintain a balanced financial position for the year and that financial pressures are being minimised where possible.
1.3 In order to demonstrate where the pressures are impacting across the Council the current forecast for all Council services has also been provided. Section 4 summarises the projected position for 2020-21 based on the most recent forecast and reflects up to date estimated costs associated with the COVID-19 pandemic and the associated funding solutions identified to date. It also provides a summary of the main budget variances across Services and Directorates.
1.4 Progress on agreed savings is reported in Section 5 and an update on the anticipated level of balances is contained in Section 6.
25 1.5 Appendix 1 details the overall projected variance for the Council. Section 4 of this report provides detailed narrative explaining the variances and identifies where these relate to COVID-19.
1.6 More detailed financial reports will be presented to the relevant Sub-Committees as part of the Council’s wider scrutiny and performance management reporting arrangements. These arrangements departed from normal practice this year given the challenging circumstances the Council has been faced with, but these detailed reports are now being produced and discussed with Sub-committees in line with the process agreed earlier this year.
2.0 Financial Pressures Update
2.1 The previous report to this Committee set out financial pressures facing the Council in 2020-21 and at that time pressures, including the impact of COVID-19, were estimated to be in the region of £73m. As the COVID-19 restrictions have been in place for ten months the financial consequences and estimates have become more stable. However, they continue to be reviewed and updated where new guidance is assumed to impact on costs or income.
2.2 The latest estimate of pressures facing the Council is in the region of £66m. This represents a reduction in estimated general fund revenue pressures of around £7m. The overall reduction is resulting from general reductions in forecasts across a number of services of £5m, and the estimated costs of COVID-19 have decreased by some £2m. As restrictions continue, the level of costs avoided has increased along with a decrease in the costs associated with the recovery in terms of buildings reconfiguration and heating in schools. This is offset by an increase in the level of lost income. Full details of the movement in terms of forecasts are explained in more detail in the narrative outlined below.
2.3 Services continue to adopt cost control measures and mitigate costs wherever possible, including maximising the use of grant funding.
3.0 2020-21 Financial Strategy
3.1 Since the last report there has been no change in the available funding options which remains at £62m. There is still insufficient additional resources available to mitigate all pressures within the financial year and there may be a requirement to utilise balances. The gap is within the agreed financial strategy to use £10m from balances in the current year.
3.2 Details of the overall funding identified to date to cover the Council’s additional cost pressures is summarised in the following table. It identifies that there is insufficient funding available to mitigate against the estimated financial pressures. However, additional funding is expected which would reduce the call on balances.
26 £m £m
Net Additional Costs Previously Reported 72.636
Forecast Reduction (6.944)
Revised Estimated Additional Costs 65.692
Less: Options to fund identified to date 61.998
Total available options to fund 61.998
REVISED FUNDING GAP/(ALSO SEE APPENDIX 1) 3.694
SG Funding yet to be distributed:
Additional Loss of Income (£110m) TBC
3.3 The table above outlines the current funding gap before applying Fife’s allocation from the additional loss in oncome funding which is still to be distributed. It is intended to prioritise the use of funding to protect the financial sustainability of the Council moving forward. For example, by maximising the use of available grant funding as a priority and by reviewing the technical accounting solutions for cost sharing with the HRA towards the end of the financial year once there is more certainty for the Council.
3.4 The Council will also incur expenditure for specific items in respect of COVID-19 response and recovery, that will be fully funded by grant from the Scottish Government which means this does not create a cost pressure for the Council which requires to be addressed by the funding strategy.
4.0 Revenue forecast – Main Variances
4.1 General Fund Services
All the above pressures and funding sources are incorporated into the forecasts for all services. This section provides detailed narrative explaining the variances detailed in Appendix 1 and identifies where these relate to COVID-19. As Services respond to the pandemic and take corrective action to mitigate costs and recover services, it may become more difficult over time to distinguish between “normal” variances and those directly associated with COVID-19.
Overall there is a forecast overspend of £3.694m across all General Fund Services, which equates to 0.43% of budgeted expenditure.
Appendix 1 details the forecast and variances against budget broken down across all General Fund Services. The following paragraphs provide a brief explanation of the main areas where there are variances of +/-£0.250m or 0.25%, whichever is the greater, between the budget and forecast expenditure and income.
27
4.1.1 Education and Children’s Services
Directorate position:- Variance £1.753m overspend, movement (£2.102m)
Devolved School Management:- Variance £0.168m overspend, movement (£0.270m) Under the DSM Scheme, schools’ budgets are calculated and allocated with reference to a range of formulae based on appropriate data, for example school roll. The variance above is mainly due to a projected overspend of £0.341m across schools due to increased staffing levels. This projected overspend is reduced by a projected underspend within Special Education of £0.180m due to vacancies within the Pupil Support Service. The movement since the last report is due to a reduction in the projected overspend across schools of £0.212m, and within Special Education of £0.067m.
Some additional costs due to COVID-19 are included in the projected outturn, for example costs in relation to the appointment of additional newly qualified teachers of £3.636m, however these costs will be funded by additional funding announced by the Scottish Government. Further additional costs relate to delays in implementing approved savings within the DSM due to the impact of COVID-19 of £1.700m, and potential costs in relation to refunds to parents for school trips of £0.403m. However it is assumed that these will be accommodated from flexibilities allowed by the Scottish Government to meet additional costs arising from the pandemic. Use of flexibilities to fund of £2.103m has been assumed in the DSM to meet projected COVID-19 costs.
Non-DSM/Childcare:- Variance £1.778m overspend, movement (£0.774m)
The projected overspend mainly relates to maternity pay and long-term absence, and overspends of £2.755m and £0.616m, respectively, are included within the projection. These costs are in relation to teachers, but are borne by the non-devolved central Education budget and not the DSM. These overspends are reduced by a projected underspend in Early Years, of £0.371m, mainly due to the timing of recruiting of Early Years Officer Modern Apprentices and also an underspend on non- domestic rates within nursery education of £0.231m. Additionally there are underspends in Special Education of £0.840m due mainly to projected underspends on employee costs. The movement since the last report is mainly due to an increase in the underspend in Special Education of £0.523m.
In relation to COVID-19, costs are included within Non Devolved Education in relation to heating cost of £2.000m, estimated additional costs for school transport of £0.227m, reconfiguration costs and additional cleaning for school buildings of £0.876m, supply teacher/temporary teacher and additional activity centre pay costs of £0.760m, additional IT costs of £0.501m, PPE costs of £3.803m, emergency childcare for key workers of £0.208m and projected loss of income in relation to Childcare Services of £1.513m and Music Service of £0.326m. It should be noted that some of these costs are estimates which will require to be refined as more information becomes available. Some of these costs will be offset by additional funding from the Scottish Government, however some will require to be met from the flexibilities in ELC and PEF funding available to the Council this financial year, and £6.839m of this funding has been assumed to meet these costs in the non- devolved Education budget within this forecast. 28
Children and Families / Criminal Justice Service: Variance £0.193m underspend, movement (£1.058m) The position for the service reflects a projected underspend for Children and Families and Criminal Justice Services, mainly due to underspends in staffing costs of £0.630m, purchased placements of £1.054m, other care costs and additional income of £0.399m, mileage and transport costs of £0.581m and an underspend across Criminal Justice services of £0.192m due to reduced transport and third party costs. The underspend is offset by projected overspends on Family Placements (mainly Kinship Care) of £1.527m, Continuing Care of £0.967m, and Grants to Voluntary Organisations of £0.361m. The movement since the last report is mainly due to reductions in purchased placements of £0.806m and in other care costs such as respite care of £0.246m.
In relation to COVID-19, the projected costs include additional overtime costs of £0.107m to cover staff absences within our residential houses. Also included are additional costs for our in-house foster carers, additional maintenance costs for young people and additional IT equipment of £0.208m. These additional estimated costs have been partially offset by the application of additional income from the Scottish Government of £0.315m.
4.1.2 Health and Social Care
Social Care: - Variance £1.362m overspend, movement (£0.567m)
The Health & Social Care Partnership (H&SCP) is managed by the Integration Joint Board (IJB). The 2020-21 IJB budget was approved based on a balanced budget across the Partnership after savings and investment had been approved. The agreed integration scheme provides for circumstances where an overspend within the partnership arises. Based on the current agreement, any overspends which arise across the Partnership during the year will be funded 72% by NHS Fife and 28% Fife Council. The integration scheme is currently undergoing the planned five-year review and in the future the percentage shares may change once the review is complete.
The projected outturn position for Fife Council Social Care is an overspend of £2.939m. The forecast includes income to be received from NHS of £4.100m for transfer of resource as incorporated in the approved partnership budget. The Council overspend will reduce to an estimated £1.362m after receiving estimated income of £1.578m from NHS Fife in line with the agreed approach for dealing with a partnership overspend within the current integration scheme.
The main variances are projected overspends on adult placements of £3.690m which includes £0.851m following transition of 3 packages from Children and Families to Adult Services, a further £0.203m for further transitions for December school leavers and additional packages of £0.318m. These are offset by underspends of £1.526m in Adults Supported Living as staffing vacancies are being held here in order to fund a proposed re-design of the service. Staff from the Community Support Service have also been used to provide cover for holidays and sickness within other areas of Supported Living while their own service has been closed, reducing the need to pay for overtime or additional hours. There are also projected overspends on Homecare of £1.939m due to increased number of both internal and external hours of care delivered.
29 There has been an overall reduction in the forecast of (£1.712m). External nursing and residential placements reduced by (£0.394m) because many of the beds currently in use relate to COVID-19 illness and are therefore being claimed for through the H&SCP Mobilisation Plan. The other significant reductions are a reduction in staffing costs of (£0.567m) where filling vacancies has been delayed due to the pandemic; additional Housing Benefit of (£0.300m), and reductions in staff travel, taxi provision and vehicle hire of (£0.358m).
In addition, the impact of COVID-19 has meant that there is likely to be unachieved savings of £3.705m (81% of the approved savings target) due to the demands on staff time during the pandemic. These are currently contained within the H&SCP mobilisation plan and confirmation has recently been received from the Scottish Government that the unachieved savings will be funded. The impact of the additional funding on the Partnership’s finances is currently being reviewed. £1.1bn has been made available by the Cabinet Secretary and from this, funding has been provided in full to cover costs within the mobilisation plan up to June with the rest of the year being partially funded based on forecasts. Another iteration of the mobilisation plan was submitted in December to the Scottish Government and funding reviews will continue to take place. If full funding is not provided, discussions between partners will be required.
A Finance Recovery Plan was submitted to the Integration Joint Board in September, an update will be provided to a future Board. The initial recovery plan has measures of £1.1m to be taken to reduce the level of projected overspend, £0.850m relates to actions for Fife Council to progress. These include recovery of high reserves and income from financial assessments.
There is also potential risk of a shortfall in funding of £0.962m resulting from the 3.3% uplift in payments to external care at home providers. This uplift was given to providers based on guidance from the Scottish Government and was above the increase agreed in the IJB approved budget for 2020-21. The total cost was £1.642m and, to date, H&SCP has only been guaranteed £0.680m income to cover this cost, the balance is included in the mobilisation plan.
The H&SCP mobilisation plan has forecasted additional costs of £26m to deal with the effects of COVID-19, of which £20.0m relate to costs incurred by Fife Council. The current forecast assumes that all of this expenditure will be funded in full by the Scottish Government, with the exception of unachieved savings. Notification of additional funding from the Scottish Government has now been received and the impact of this is currently being reviewed.
4.1.3 Enterprise and Environment Directorate position: - Variance £21.553m overspend, movement (£2.318m)
Assets, Transportation and Environment: - Variance £21.440m overspend, movement (£1.729m)
There is a projected loss of income of £18.700m within Building Services. This is due to the estimated impact of the COVID-19 pandemic on trading account income as the service was unable to progress work during the lockdown period, as well as the implementation of additional health and safety measures post lockdown. The forecast position has reduced by (£1.729m) due to increased expenditure mitigation being identified. In line with the previous report, the intention is still to review the cost sharing with the HRA towards the end of the financial year.
30
There is an estimated overspend of £1.266m on sustainability. This is associated with Fife Resource Solutions potential loss of income as a result of COVID-19.
There is a projected net under recovery of income of £2.001m within Car Parking. This is due to the impact of the national lockdown, the resultant suspension of car parking charges and general reduction in demand as a result of the COVID-19 pandemic. Subsequent suspension of car parking charges on 11th January 2021, has resulted in a movement of £0.209m since the previous report.
Economy, Planning and Employability:- Variance £0.113m overspend, movement (£0.483m)
The overspend is mainly due to shortfall in Planning statutory fee income, which has been delayed due to lockdown and continues at a reduced level compared to last financial year. Delay in implementation of national fee increase planned for this financial year has also contributed to the shortfall.
Movement of £0.483m is mainly due to revised projection of the statutory income based on recent income levels, which reflects recovery in the housing market.
4.1.4 Communities
Directorate position: - Variance £6.535m overspend, movement (£1.688m)
Communities & Neighbourhood:- Variance £5.400m overspend, movement (£1.671m)
The majority of the overspend relates to the impact of COVID-19. Each of the Council’s Trusts are suffering loss of income, each to varying degrees and this is estimated to be in the region of £3.520m as they have been unable to operate and generate income. Close partnership working is continuing with these organisations in order to support them. Community Use is forecasting a reduction in income of £1.567m and Halls and Centres are anticipating a reduction of £0.743m in income due to closures as a result of COVID-19. Delivery of in year savings of £0.306m have been further delayed as a result of COVID-19.
In addition, there are non-COVID-19 related overspends of £0.360m relating to savings which have not been achieved in previous years and given the current circumstances it is unlikely that they will be achieved in 2020-21.
The movement of £1.671m is due to an improved projection mainly as a result of reduced expenditure and the extension of the job retention scheme funding offsetting loss of income within the Councils Trusts. In additional, as a result of the governments Coronavirus rate relief scheme, we have an exemption for Non- Domestic rates in 2020-21 across our halls and centres, creating an underspend of £0.800m.
Customer & Online Services:- Variance £1.080m overspend, movement £0.056m
Of the total overspend, £0.419m relates to the impact of COVID-19. Income generated through the booking of weddings has improved slightly but is still low and is now projected to underachieve by £0.208m in year. An increased spend on
31 overtime has also continued due to contact centre staff working additional hours to maintain service levels and welfare fund staff working additional hours to process an increased number of claims. The projection for additional overtime across the service is £0.211m.
There are unachieved savings of £0.473m included within the projected overspend. This is due to a delay in Customer Service Delivery savings of £0.273m in the current year and £0.200m from previous years. Work is continuing with the Customer Programme to deliver these savings.
There is also an estimated overspend of £0.407m across Revenue Services, movement £0.045m. The majority of this relates to reduced income. The introduction of Universal Credit has reduced the level of work being carried out for the DWP and has in turn reduced the level of funding received. This could have a significant impact on future years outturn so will require a review to determine the impact on future years.
4.1.5 Finance & Corporate Services
Directorate position:- Variance £1.616m overspend, movement (£0.233m)
Of the total overspend, £1.494m relates to the impact of COVID-19. This includes BTS costs of £0.605m for remote working and IT equipment to enable home working. There is also a projected increase of £0.180m for greater use of Employee Counselling and Occupational Health services.
Lost income from liquor licencing is expected to be £0.085m for bars, restaurants and events, £0.050m for costs of flu vaccinations, a reduction in demand for childcare vouchers £0.066m, and there is a likely delay in savings from projects that were delayed resulting in a projected overspend of £0.408m.
COVID-19 pressures are partially mitigated by £0.414m from reduced staff travel due to home working.
Non-COVID-19 overspends of £0.637m are due to underlying pressures linked to the delivery of savings, mitigated by reduced costs related to pay and training.
4.1.6 Other Variances
Loan Charges:– Variance £1.000m underspend, no movement
The 2016 loans fund regulations allowed for the reprofiling of debt repayments to be commensurate with the life of the asset life. Although the revised loans fund repayment policy was implemented in 2019/20 and subsequent budget savings were delivered in 2020/21, further work to reprofile older debt has been carried out.
Contingencies:- Variance underspend £2.000m, no movement
COVID-19 Non-specific Funding:- Variance (£28.790m) underspend, no movement
The funding sources in response to COVID-19 financial consequences include Scottish Government funding such as the Hardship Fund and Barnett Consequentials and some underspends, are currently held centrally and are offsetting the overspends across services. 32
The COVID-19 non-specific funding will be allocated to Services at the end of the financial year once costs and funding are more certain. The timing of this is due to the fluid nature of both the costs and funding streams. This avoids unnecessary budget adjustments and increased complexity during the year. The overall position will continue to be monitored and reported routinely throughout the year.
4.1.7 Financing
Council Tax Income – Variance overspend £2.500m, no movement
As a result of the COVID-19 pandemic recovery arrangements had initially been suspended. It is expected that the level of council tax collection is likely to reduce for 2020-21 and the level of under recovery represents a potential adjustment to the bad debt provision which may be required to reflect reduced collection levels and people’s ability to pay.
4.2 Housing Revenue Account
4.2.1 Housing Revenue Account, Breakeven position, no movement
The outturn for the Housing Revenue Account (HRA) is shown on Appendix 2 and indicates a breakeven position. There is an intention to review the cost sharing between Building Services and the HRA towards the end of the financial year when both the pressures and all available funding options are clear and a fair and equitable arrangement can be agreed.
Repairs & Maintenance is projected to underspend by (£8.883m) which is due to a reduced number of repairs being carried out during the lockdown period at the beginning of the financial year. The movement of (£3.525m) is based on revised projections based on reduced productivity in the final months of the financial year as a result of the current lockdown period which is currently ongoing. Essential work such as Gas Servicing has been maintained throughout the year.
It is anticipated that Voids will overspend by £0.650m, movement £0.125m which is a result of properties remaining empty for longer periods of time due to social distancing measures put in place as a result of COVID-19. The HRA is expected to overachieve on their income target for the year by £0.930m which is mainly due to a number of additional new Affordable Housing properties and properties purchased through the acquisition policy becoming available to rent at the end of 2019-20.
Supervision is projected to underspend in year by £0.374m, and there is a movement of (£0.277m) as a result of vacancies which have not been filled in year or only filled for part of the year. The cost of borrowing is also projected to be £0.683m underspent which will mitigate against overspends elsewhere across the HRA. The movement of (£0.458m) against COVID Expenditure relates to removing projections which are part of the cost sharing agreement.
The planned Revenue Contribution to Capital (incl CFCR) is projected to overachieve by £10.416m, a movement £3.570m. The movement is mainly due to the increased underspend projected for Repairs & Maintenance. The overachievement of CFCR is likely to change once the level of cost sharing between the general fund and the HRA is agreed toward the end of the financial year.
33 5.0 2020-21 Revenue Budget Savings Progress
5.1 Appendix 3 provides details of the achievements against the approved revenue budget savings for 2020-21 by Directorate.
5.2 The table demonstrates that overall the Council will achieve 59% of 2020-21 budget savings. This is lower than in previous years as the ability of services to deliver savings has been significantly impacted in several areas. However, services continue to deliver savings where possible in year but there is potential risk that delays could impact into the next financial year.
5.3 More detailed reports on the progress of savings will be presented to the relevant Sub-Committees as part of the Council’s wider scrutiny and performance management reporting arrangements.
6.0 Balances 6.1 General Fund Services
6.1.1 Appendix 4 shows a forecast of the balances’ position for General Fund Services over a three-year period. The figures are based on the level of approved commitments.
6.1.2 The opening General Fund balance brought forward at 1 April 2020, including earmarked balances, was £32.689m.
6.1.3 Earmarked balances and other commitments against the General Fund balance include Council Tax Second Homes, Energy Management Revolving Fund (EMRF), and temporary investments.
6.1.4 Estimated uncommitted balances as at 31st March 2021 are estimated to be £18.452m , which is above the policy minimum.
6.1.5 There will likely be a positive contribution to balances in the near future. This is due to Audit Scotland identifying an unadjusted error during the audit of the 2019/20 Annual Accounts in respect of the bad debt provision for Housing Benefit Overpayments. Owing to the timing of the issue being raised, the Finance team did not have sufficient time to investigate and conclude the appropriate accounting treatment to rectify this prior to the approval process. Work in this area is ongoing which will finalise the values involved.
6.1.6 Further work and investigation are being advanced in relation to accounting for Council Tax and Non-Domestic Rates statutory penalties. Again, the conclusion may result in a positive outcome for general fund balances.
6.1.7 Work is also ongoing in respect of the application of the Loans Fund 2016 regulations and the application of these regulations for specific types of capital expenditure could result in a further positive contribution to balances.
7.0 Governance and Scrutiny 7.1 As outlined in the previous report, the necessary focus over the first half of the year was to identify and assess the financial consequences of COVID-19 across the organisation. The next priority was to identify an organisation wide financial strategy to make sure that all the additional pressures can be funded within the year. Income and expenditure forecasts and funding estimates are now stabilising and becoming much clearer and a process is now being developed to allocate the various funding streams to Services where the pressures have emerged. 34
7.2 The sub-committee reports are now in production and previous reporting processes have been reinstated.
8.0 Conclusions
8.1 The Council is facing financial pressures amounting to £66m in 2020-21. However, a financial strategy is in place to deal with this in the current year. Funding solutions currently amount to £62m, which result in a projected overspend of £3.694m. It is anticipated that once the distribution of further funding relating to loss of income is agreed, there will be no need to use Council balances in the current financial year to offset the overspend.
8.2 Services will continue to tightly manage expenditure and contain and minimise costs wherever possible.
8.3 Taking earmarked funds and other potential commitments into account, the uncommitted General Fund balance at 31 March 2021 is forecast to be £18.452m However, one off adjustments that have still to be quantified will rectify this position and an update will be provided in due course.
8.4 The forecast outturn for the Council's Housing Revenue Account in 2020-21 is a breakeven position.
List of Appendices 1. General Fund Revenue Summary 2020-21 2. Housing Revenue Account Summary 2020-21 3. Approved Savings 2020-21 4. Summary of Balances
Background Papers None.
Report Contacts Elaine Muir Head of Finance Finance & Corporate Services Fife House North Street Glenrothes Email: [email protected]
Laura Robertson Finance Operations Manager Finance & Corporate Services Fife House North Street Glenrothes Email: [email protected]
35 Appendix 1 FIFE COUNCIL GENERAL FUND REVENUE SUMMARY 2020-2021
Annual Annual Previous Committee Budget Forecast Variance Annual Variance Movement £m £m £m £m £m EDUCATION & CHILDREN'S SERVICES Education (Devolved) 205.478 205.645 0.168 0.438 (0.270) Education (Non Devolved) 107.308 109.086 1.778 2.552 (0.774) Children and Families/CJS 63.178 62.985 (0.193) 0.865 (1.058) 375.964 377.717 1.753 3.855 (2.102) HEALTH & SOCIAL CARE Health & Social Care 161.988 164.927 2.939 4.652 (1.713) H&SC Payment from Health per Risk Share 0.000 (1.578) (1.578) (2.723) 1.145 161.988 163.350 1.362 1.929 (0.567) ENTERPRISE & ENVIRONMENT Assets, Transportation and Environment 75.179 96.619 21.440 23.169 (1.729) Economy, Planning and Employability 9.375 9.488 0.113 0.596 (0.483) Property Repairs and Maintenance 15.081 15.081 0.000 0.106 (0.106) 99.634 121.188 21.553 23.872 (2.318) COMMUNITIES Housing & Neighbourhood Services 9.913 9.969 0.055 0.129 (0.073) Communities & Neighbourhood 40.996 46.396 5.400 7.071 (1.671) Customer & Online Services 12.619 13.699 1.080 1.024 0.056 63.529 70.064 6.535 8.223 (1.688) FINANCE & CORPORATE SERVICES Assessors 1.156 1.236 0.080 0.062 0.018 Finance 4.795 5.400 0.605 0.621 (0.016) Revenue & Commercial Services 14.225 14.065 (0.160) (0.165) 0.005 Human Resources 5.672 5.807 0.135 0.162 (0.027) Business Technology Solutions 12.920 13.975 1.055 1.249 (0.194) Legal & Democratic Services 3.731 3.732 0.001 0.021 (0.020) 42.499 44.216 1.716 1.950 (0.233) Miscellaneous (1.182) (1.182) 0.000 (0.000) 0.000 Housing Benefits 2.402 2.302 (0.100) (0.100) 0.000 43.720 45.336 1.616 1.849 (0.233) CHIEF EXECUTIVE Chief Executive 0.291 0.250 (0.041) 0.000 (0.041) Corporate and Democratic Core 2.204 2.410 0.206 0.200 0.006 2.495 2.660 0.165 0.200 (0.035) SERVICE TOTALS 747.330 780.315 32.984 39.928 (6.943) ADDITIONAL ITEMS Loan Charges (including interest on revenue 63.792 62.792 (1.000) (1.000) 0.000 balances) Capital Expenditure Financed from Current 1.321 1.321 0.000 Revenue 0.000 0.000 Contingencies 12.601 10.601 (2.000) (2.000) 0.000 COVID Funding Solution 28.790 0.000 (28.790) (28.790) 0.000 106.504 74.714 (31.790) (31.790) 0.000 TOTAL EXPENDITURE 853.834 855.029 1.194 8.138 (6.943) FINANCED BY: General Revenue Grant (570.512) (570.512) 0.000 0.000 0.000 Non Domestic Rates (111.709) (111.709) 0.000 0.000 0.000 Council Tax Income (172.818) (170.318) 2.500 2.500 0.000 Budgets Funded from Balances (previous 1.205 1.205 0.000 years carry forwards etc) 0.000 0.000 TOTAL INCOME (853.834) (851.334) 2.500 2.500 0.000 CONTRIBUTION (TO)/FROM BALANCES 0.000 3.694 3.694 10.638 (6.943)
36 Appendix 2 FIFE COUNCIL HOUSING REVENUE ACCOUNT SUMMARY 2020-2021
Previous Committee Annual Annual Annual Budget Forecast Variance Variance Movement £m £m £m £m £m BUDGETED EXPENDITURE Repairs and Maintenance 34.866 25.983 (8.883) (5.358) (3.525) Supervision and Management 15.970 15.597 (0.374) (0.096) (0.277) Funding Investment Cost of Borrowing 27.067 26.384 (0.683) (0.683) 0.000 Revenue Contribution (incl CFCR) 32.419 42.835 10.416 6.846 3.570 110.323 110.798 0.476 0.709 (0.233)
Voids 2.102 2.752 0.650 0.525 0.125 Housing Support costs (0.362) (0.411) (0.049) (0.045) (0.004) Bad or Doubtful Debts 2.984 2.984 0.000 (0.800) 0.800 Garden Care Scheme 0.376 0.376 0.000 0.000 0.000 Other Expenditure 9.668 9.495 (0.173) 0.373 (0.546) Covid Expenditure 0.000 0.019 0.019 0.000 0.019 125.090 126.013 0.923 0.762 0.161 FINANCED BY Dwelling Rents (Gross) (117.973) (118.902) (0.930) (0.760) (0.170) Non Dwelling Rents (Gross) (3.458) (3.489) (0.031) (0.026) (0.005) Hostels - Accommodation charges (2.266) (2.269) (0.003) (0.003) 0.000 Other Income (1.393) (1.352) 0.041 0.027 0.014 (125.090) (126.013) (0.923) (0.762) (0.161)
CONTRIBUTION (TO)/FROM BALANCES 0.000 0.000 0.000 0.000 (0.000)
37 Appendix 3 FIFE COUNCIL APPROVED SAVINGS FOR 2020-21
(Under) / Savings Forecast Directorate Over Achieved % Target £m £m £m
Education & Childrens Services 4.208 1.908 (2.300) 45% Enterprise & Enviroment 3.388 2.598 (0.790) 77% Communities 1.998 1.293 (0.705) 65% Finance & Corporate Services 1.608 0.901 (0.707) 56% Health & Social Care 1.736 0.875 (0.861) 50% 12.938 7.575 (5.363) 59%
63
38 Appendix 4 BALANCE - GENERAL FUND SERVICES
Future 2020-21 2021-22 2022-23 Years £m £m £m £m Balance at 1 April 2020 (32.689) (18.452) (17.008) (17.008)
Budgets funded from balance (1.205)
Add Overall budget variance 2020-21 (Appendix 1) 3.694
Estimated Balance at 31 March (30.199) (18.452) (17.008) (17.008)
Earmarked Balance Devolved School Management (0.167) Energy Management Fund 1.695 Council Tax - Second Homes 7.892 9.421 0.000 0.000 0.000
(20.778) (18.452) (17.008) (17.008) Commitments against balance Budget Carry Forward Scheme 0.000 Change Fund 0.549 0.821 0.000 Fife Job Contract 0.535 0.563 0.000 Mid-Fife Economic Development 0.190 Change to Deliver - BTS Investment 0.539 Dunfermline Flood Prevention Scheme 0.392 Other Commitments 0.122 0.060 0.000 2.327 1.444 0.000 0.000
Estimated uncommitted balance at 31 March (18.452) (17.008) (17.008) (17.008)
BALANCE - HOUSING REVENUE ACCOUNT
Future 2020-21 2021-22 2022-23 Years £M £M £M £M Balance at 1 April 2020 (3.005) 0.000 0.000 0.000
Add Overall budget variance 2020-21 (Appendix 2) 0.000
Estimated uncommitted balance at 31 March 0.000 0.000 0.000 0.000
39 Policy and Co-ordination Committee
18th February, 2021. Agenda Item No. 5
Capital Investment Plan Update – Projected Outturn 2020-21
Report by: Eileen Rowand, Executive Director (Finance and Corporate Services)
Wards Affected: All
Purpose
The purpose of this report is to provide a strategic financial overview of the Capital Investment Plan and to advise on the projected outturn for the 2020-21 financial year.
Recommendations
The Policy and Co-ordination Committee is asked to note: -
i) the projected outturn position, the risks and mitigating actions for the major projects within the Capital Investment Plan; ii) the projected outturn position for the 2020-21 Capital Investment Plan;
iii) that more detailed capital outturn reports for 2020-21 will be submitted to relevant Committees of the Council, in accordance with agreed financial reporting arrangements; and
iv) that budget variances will be managed by the appropriate Directorate in conjunction with the Investment Strategy Group.
Resource Implications
None.
Legal & Risk Implications
Potential risks include the impact of COVID-19 on the costs of construction projects, availability of funding streams for larger capital projects and the capacity to complete some projects on time, again as a result of COVID-19. Further explanation of the current risks is contained in section 2.2.
Impact Assessment
An EqIA is not required because the report does not propose a change or revision to existing policies and practices.
Consultation
Financial projections are agreed in consultation with each Directorate and are based around the expected progress of individual projects. 40 1.0 Background
1.1 The purpose of this report is to advise members of the projected outturn position for the Council’s Capital Investment Plan (the Plan) for the financial year 2020-21. The report also highlights the projected outturn position for major projects over £5.000m along with any potential risks associated with these projects. Explanation is provided at Section 2.1 where there is deemed to be a greater level of financial risk linked to major projects. The Plan covers capital expenditure on all Council Services including Housing, which is managed as a separate programme. 2.0 Issues
2.1 Major Projects 2.1.1 Appendix 1 provides a summary of the projected outturn for major projects within the Plan. There are 22 projects in this category with an overall budget of £793.005m at this stage, it is anticipated that there will be an overspend of £0.111m which is due to Depot Rationalisation. There continues to be a risk that the cost of projects across the plan may be adversely affected going forward as a result of current restrictions associated with COVID-19 and possibly as a result of BREXIT. However, this is difficult to predict with any level of certainty.
2.2 Potential Risks and Issues 2.2.1 Due to the impact of COVID-19, on site construction work was put on hold on 23rd March, 2020, with the exception of some critical projects. The ongoing government restrictions and lockdown arrangements means there continues to be potential that COVID-19 will impact on project costs and will extend many project delivery dates as contractors continue to make adjustments to working arrangements to accommodate new requirements, such as social distancing. Some claims from contractors were received in relation to closing down, maintaining and re-opening sites and also in relation to preparation for work on site recommencing, for example, in relation to Madras College. Monitoring of the impact of these additional costs and timescales is ongoing and is being assessed as part of the Capital Plan Review.
2.2.2 The Capital Plan includes £120m investment in respect of Secondary Schools in West Fife. This investment required is likely to be substantially higher than the approved funding to meet the infrastructure requirements for all secondary schools in the area. It is intended to address both school condition and the need for additional school places arising from housing development. However, as previously reported, the Scottish Government funding model has changed since the Capital Plan was approved, moving from a capital grant model to a revenue funded model. Discussions around the funding of the Council element are progressing with the Scottish Government and the Scottish Futures Trust and work is continuing with Fife College to develop the business case for the Dunfermline Learning Campus which will be the first building to be financed in this new way. Recognition of the change will need to be addressed in the next review of the Capital Investment Plan to ensure that financial planning is reflective of the new model and to ensure affordability across west Fife schools. Monitoring of the impact of these additional costs and timescales forms part of the Capital Plan Review.
2.2.3 Within Early Learning and Childcare (ELC) the delivery date of August 2020 has been removed by the Scottish Government in light of COVID-19. The new implementation date has been confirmed as August 2021. There is a risk that contingency arrangements may be required in the short term to provide places should these projects be delayed. Currently, only 2 projects are anticipated to 41 complete beyond August 2021. These are Methilhaven and Templehall and temporary alternative arrangements would be put in place until these facilities were completed.
2.2.4 Previous reports highlighted that the general capital grant provided by the Scottish Government is applied to finance local authority capital programmes before the application of any other capital or revenue resources such as capital receipts or borrowing. All local authorities must make full use of the grant in the applicable financial year and any unused grant is repaid to the Scottish Government unless otherwise agreed in writing by Scottish Ministers. Expenditure in Fife is now such that repayment of grant is no longer a risk in the current financial year.
2.3 Financial Performance – 2020-21 Total Expenditure - Projected Outturn 2.3.1 Appendix 2 provides a summary by capital theme of projected expenditure and income for 2020-21 showing the total expenditure budget of £150.174m and projected spend of £131.635m in the 2020-21 financial year, £18.540m slippage across the plan. Comparable expenditure for the previous 3 years was £175.104m (2019-20), £144.083m (2018-19) and £140.253m (2017-18). The impact of COVID-19 restrictions will mean that capital investment will be at its lowest in a number of years. 3.0 Budgets and Funding
3.1 Budget The Capital Investment Plan 2019-29 was approved by Fife Council in February 2019. At the end of each financial year, any budget which has not been spent is rolled forward into the next financial year as slippage. Services are asked to re- profile their project budgets in light of this slippage and the result of this can be seen in the movement from the approved budget to the current budget as detailed in Appendix 2.
There have been no changes to the budget since the previous report.
3.2 Expenditure Expenditure variances are projected across all Directorates, the most significant being: -
3.2.1 Opportunities for All Education & Children’s Services (£1.626m) The new children’s home at Raith Grove is the only project within the Looked After Children Homes Reprovision line. This project has a variance of £0.331m which will be managed by moving budget from the Looked After Children theme under Maintaining Our Assets.
An opportunity has also arisen to purchase two residential houses for children from an external care provider in Fife, allowing the council to expand the in-house provision and reduce the number of external purchased residential placements, making an annual saving in the process. A report was approved by the Investment Strategy Group to progress the purchase and the intention is to fund the purchase price of around £0.400m from CFCR. It is anticipated the purchase will be concluded during February 2021.
42 The Early Learning and Childcare programme has slippage of £1.719m which is the result of delays on site due to COVID-19 restrictions. All projects will be complete for August 2021 with the exception of the new nursery at Templehall and the nursery within Methilhaven Care Home. Both of these projects will have decant plans which will enable 1140 hrs to be delivered for August 2021.
Primary School Development theme has a slippage of £0.335m of which £0.250m is attributed to a delay in the installation of a temporary modular classroom unit at McLean Primary School from December 2020 to Summer 2021. The school was able to accommodate all pupils within the existing school capacity until the end of the current session. Guardbridge Primary School has slippage of £0.085m due to current COVID-19 restrictions, this will be recovered within next financial year, the project is still on programme for July 2021 completion and within budget.
3.2.2 Thriving Places Area Community & Corporate Development (£2.042m) Slippage mainly attributable to current restrictions surrounding COVID-19. Several projects have been delayed due to a number of factors such as restricted access, contractor working arrangements on site and issues around delivery of materials. For example, £0.140m staging work at Rothes Halls scheduled to take place in 2020-21 is now being deferred until 2021-22.
Phasing of the wider Lynburn corridor project has led to £0.266m expenditure now being reprofiled into 2021-22. Delays and further changes to the Adam Smith Hub design has resulted in slippage of £0.455m. Multiple smaller projects within Improving Health through Leisure & Sport are reliant on external funders and third party community groups collaborating with the Service, the inability to do so in the current circumstances had led to expenditure of £0.416m being delayed until 2021-22. Rockgelly and Lochgelly town hall have combined slippage of £0.417m.
Across the service there are a number of large scale projects that have progressed slower than anticipated, delays in re-lining the pool at Carnegie Leisure Centre, £0.200m, Glenwood regeneration project is slowly progressing, plans are in place to demolish the library but there is still slippage of £0.091m. Multiple smaller projects have been delayed across the service totalling £0.323m.
3.2.3 Inclusive Growth and Jobs Economy, Planning & Employability £0.689m This variance is mainly due to advancement on projects funded by Edinburgh and South East Scotland City Region Deal. Progress has been made on construction of business units at Flemington Road, Glenrothes and Dunnikier Industrial Site, Kirkcaldy, despite COVID19 restrictions. Acquisition of a site at Fife Interchange Dunfermline is also expected to take place in this financial year.
3.2.4 Maintaining Our Assets – Rolling Programme Asset & Transportation & Environment (£2.142m) The slippage within Roads and Transportation Capital Programme of (£1.544m) is across various projects. This is mainly due to the COVID-19 Pandemic resulting in the need to re-prioritise resources at short notice towards COVID-19 related projects such as the externally funded Spaces for People programme and to complete projects to maximise spend on the £1.600m Grant for Cycling Walking and Safer Streets.
43 There is also projected slippage against the Fleet – Purchase of Vehicles And Equipment (£0.400m). This is due to Brexit creating a delay in receiving an order of mini-buses from Mercedes Benz, initially expected March this financial year but now delayed to early next financial year.
3.2.5 Maintaining Our Assets – Specific Programmes Asset & Transportation & Environment £1.367m As reported previously, there has been a requirement to advance work across both landfill sites, which is now estimated at £1.500m, to ensure the highest possible environmental standards are maintained. As part of this work, capping has taken place at Lower Melville Wood while gas capture infrastructure has been advanced at Lochhead to combat intermittent issues which have been experienced. There has also been a requirement to re-profile and re-engineer the current landfill cell at Lochhead to accommodate the installation of the landfill gas capture infrastructure, which has also given the opportunity to generate additional void space. This work was profiled to take place in 12 - 18 months’ time, after a period of settlement, but has been brought forward into 2020-21. Finance & Corporate (£2.489m) The underspend of (£2.489m) within the Finance & Corporate Services Directorate relates to projects in the IT Capital Programme. The main areas of slippage (delay) are Servers/Storage £0.370m, Telephony £0.220m and Local Area Network (LAN) £1.6m. In respect of Servers/Storage there is a change in the technology available and BTS are reviewing the options. Due to COVID-19 the current Telephony contract has been extended. In light of this and the current circumstances the timescales for a replacement system have changed. The new LAN contract is currently being procured, but the contract will not be in place until April 2021.
3.2.6 Housing Revenue Account (£11.667m) The projected slippage of (£11.667m) relates to projects across several areas of the HRA capital programme. Due to the periods of lockdown as a result of COVID-19 and on-going social distancing measures, a number of projects planned to begin in this financial year have been delayed. These include regeneration projects in a number of estates, work on Travellers’ sites and in Hostels and non-essential Component Replacement works. The Housing service have carried out a review of all delayed projects in conjunction with Property and Building Services to reschedule these projects across 2021-22 and 2022-23, as well as working in partnership throughout the year to ensure that essential works have been delivered. Despite delays due to COVID-19, the Affordable Housing programme is projecting an in-year advancement of £6.369m which is mainly due to an opportunity which became available in year to purchase an additional 28 properties in Ladybank. This has allowed the HRA to continue to deliver plans to meet their Phase 3 Housing Target and deliver homes in an area of high demand.
3.3 Total Income Capital expenditure is funded from several income sources, some of which contribute specifically to individual projects in the plan. These income sources are Capital Financed from Current Revenue (CFCR), Scottish Government Specific Capital Grant and other grants and contributions (e.g. lottery funding). Appendix 2 shows that there is a total income budget of £55.171m against a forecast of £65.939m giving a projected variance of £10.767m.
44 Following the change in assumption relating to the cost sharing agreement as detailed in the Short Term Financial Strategy and Revenue Budget monitoring 2021-21 considered at the Policy and Co-ordination Committee on 7th January, 2021, the Housing Revenue Account CFCR contribution has increased compared to the planned level. The result of doing so results in an estimated higher level of CFCR of £9.939m higher than planned.
As a result of the increased level of income from CFCR and the projected slippage detailed in para 3.2.6, the level of borrowing expected to be undertaken is significantly less the current budgeted level of £25m. It should be noted that the level of CFCR contribution is subject to change once the cost sharing arrangements between General Fund and HRA are agreed towards the end of the financial year and will likely have an impact on the level of borrowing.
3.4 Total Funding Within the total funding section of Appendix 2, the other income such as General Capital Grant and Capital Receipts are not specifically related to any capital project but is funding for the plan overall. The balance of required funding in the year is met from borrowing through the Council’s Loans Fund. 4.0 Conclusions
4.1 Against the current total expenditure budget of £150.174m, the Council is showing projected spend of £131.635m in the financial year and slippage of £18.540m.
4.2 This level of expenditure demonstrates continued progress on the delivery of a wide range of capital projects. Major capital investment by Fife Council continues, despite the COVID-19 restrictions, however there is still a level of uncertainty associated with speed of delivery and future costs.
4.3 There are 22 projects within the Plan which have a value of £5.000m or greater. The overall budget for these projects is £793.005m, the Council is showing projected spend of £793.116m and an overspend variance of £0.111m.
4.4 If significant variances arise, these will be reviewed by the Investment Strategy Group in conjunction with the appropriate Directorate and reflected in any future capital plan reports.
List of Appendices 1. Major Capital Projects Total Cost Monitor 2. Monitoring Report by Capital Theme
Report Contact Laura Robertson Finance Operations Manager Finance & Corporate Services Fife House, North Street, Glenrothes Telephone: 03451 55 55 55 (Ext. 450552) - Email:[email protected]
45 FIFE COUNCIL Appendix 1 CAPITAL INVESTMENT PLAN 2020-29 TOTAL COST MONITOR - MAJOR CAPITAL PROJECTS
Original Current Total Expected Approved Project Projected Project Budget Budget Outturn Variance Variance Current Project Completion Service £m £m £m £m % Status Date Opportunities for All Madras College - Langlands E&CS 50.170 58.270 58.270 0.000 0.00% Current Project 2021-22 Early Learning and Childcare E&CS 28.376 31.965 31.965 0.000 0.00% Current Project 2020-21 Primary School Development E&CS 90.953 88.042 88.042 0.000 0.00% Current Project 2028-29 Secondary Schools West Fife E&CS 117.572 120.483 120.483 0.000 0.00% Future Project 2028-29 Extension Secondary School - Auchmuty E&CS 9.620 9.620 9.620 0.000 0.00% Future Project 2022-23 Extension Secondary School - Viewforth E&CS 5.989 5.989 5.989 0.000 0.00% Future Project 2025-26 New Secondary School - Glenrothes /Glenwood E&CS 27.532 27.532 27.532 0.000 0.00% Future Project 2028-29 Methil Care Home H&SC 6.620 7.155 7.155 0.000 0.00% Current Project 2021-22 Cupar Care Home H&SC 5.580 5.580 5.580 0.000 0.00% Current Project 2022-23 Anstruther Care Home H&SC 6.145 6.145 6.145 0.000 0.00% Feasability 2023-24 348.557 360.781 360.781 0.000 0.00% Thriving Places Dunfermline Strategic Transportation Intervention Measures ATE 39.323 39.317 39.317 0.000 0.00% Current Project 2028-29 Glenrothes District Heat ATE 10.320 10.449 10.449 0.000 0.00% Current Project 2020-21 Improving Health Through Sport and Leisure Communities 10.000 5.510 5.510 0.000 0.00% Current Project 2021-22 Area Community Facilities Communities 6.000 5.350 5.350 0.000 0.00% Current Project 2021-22 65.643 60.625 60.625 0.000 0.00% Inclusive Growth and Jobs Edinburgh City Deal EPES 47.861 48.936 48.936 0.000 0.00% Feasability 2028-29 47.861 48.936 48.936 0.000 0.00% Housing Revenue Account Affordable Housing Housing 281.869 280.344 280.344 0.000 0.00% Current Project 2022-23 281.869 280.344 280.344 0.000 0.00% Maintaing Our Assets - Specific Projects West Fife Depot ATE 4.525 8.308 8.419 0.111 1.34% Current Project 2019-20 Mobile and Flexible Working BTS 6.700 6.211 6.211 0.000 0.00% Current Project 2027-28 Local Area Network BTS 7.800 7.800 7.800 0.000 0.00% Future Project 2027-28 Burial Provision ATE 6.700 6.700 6.700 0.000 0.00% Future Project 2027-28 Reception Hall for Anaerobic Digestion Plant ATE 5.000 5.000 5.000 0.000 0.00% Future Project 2026-27 Balwearie High School E&CS 8.300 8.300 8.300 0.000 0.00% Future Project 2024-25 39.025 42.319 42.430 0.111 0.26%
Grand Total 782.955 793.005 793.116 0.111 0.01% 46 FIFE COUNCIL Appendix 2 CAPITAL INVESTMENT PLAN 2020-21 MONITORING REPORT
Approved Current Actual Projected Projected Projected Budget Budget to Date Outturn Variance Outturn as Capital Theme £m £m £m £m £m % of Plan
Opportunities for All 49.618 39.404 15.111 37.804 (1.601) 96% Thriving Places 14.352 8.193 2.164 6.195 (1.998) 76% Inclusive Growth and Jobs 7.189 3.867 1.762 4.556 0.689 118% Maintaining Our Assets - Rolling Programmes 26.623 24.728 8.990 21.887 (2.841) 89% Maintaining Our Assets - Specific Programmes 9.198 7.905 5.222 6.782 (1.122) 86% Housing Revenue Account 69.523 66.078 17.795 54.411 (11.667) 82% Corporate Items 0.000 0.000 0.000 0.000 0.000 0%
TOTAL EXPENDITURE 176.503 150.174 51.044 131.635 (18.540) 88%
Scottish Government Specific Capital Grants (7.403) (9.337) (9.257) (10.296) (0.959) 110% Other Grants and Contributions (6.029) (13.581) (4.526) (13.451) 0.130 99% Capital Financed from Current Revenue (CFCR) (33.923) (32.253) 0.015 (42.192) (9.939) 131%
TOTAL INCOME (47.355) (55.171) (13.768) (65.939) (10.767) 120% TOTAL NET EXPENDITURE 129.148 95.003 37.276 65.696 (29.307) 69% Scottish Government General Capital Grant (25.033) (25.033) (16.523) (25.033) 0.000 100% Capital Receipts (5.240) (2.380) (2.121) (2.393) (0.013) 101% NHT Loan Repayments 0.000 (0.093) (0.093) (0.093) 0.000 100% Borrowing from Loans Fund - General Fund (61.939) (42.366) 0.000 (35.694) 6.672 84% Borrowing from Loans Fund - HRA (36.936) (25.130) 0.000 (2.482) 22.647 10%
TOTAL FUNDING (129.148) (95.003) (18.737) (65.696) 29.307 69%
47 Policy and Co-ordination Committee
18th February, 2021. Agenda Item No. 6 Care Home Reprovisioning Programme – New Proposal for Replacement of Northeden House, Cupar Report by: Nicky Connor, Director of Health and Social Care and John Mills, Head of Housing Services Wards Affected: Ward 20 Purpose
To present a revised proposal and business case for the replacement of Northeden House in Cupar. Since approval of the original proposal and business case for a 36-bed care home on the site of Dalgairn Centre in Bank Street Cupar, on 24th January, 2019, and further development of the design with constraints due to the size and topographical nature of the site, it was evident it would not be possible to construct a 36-bed care home on the site. We now present a revised proposal for a 24-bed care home and 12 supported flats on the site of the Dalgairn Centre in Bank Street, Cupar. The new building will also accommodate a Day Service facility and an Adult Community Support Service that previously operated from the Dalgairn Centre.
Recommendation(s)
It is recommended that the Committee:
i) notes the content of this report, and ii) agrees to the revised Business Case and continue the Detailed Design Phase for the procurement, delivery and management of the new care home and supported housing at Bank Street, Cupar, Resource Implications
The cost for the Cupar care home was originally estimated to be £5,580,000. The revised estimate based on this revised model is £6,600,000 an increase of £1.020m, with the reasons outlined in this report. There is remaining funding within the care home programme that is available to meet this cost.
Scottish Government Funding for the new supported flats will be allocated through the Strategic Housing Investment Plan 2018/19 - 2022/23 which was agreed by the Community and Housing Services Committee in November 2017. The remainder of the capital investment for the supported flats will be met through the HRA Capital Investment Programme. The Stage Two Cost Report indicates an estimated total cost of £3.2m.
Legal & Risk Implications
Key risks and legal implications are summarised in the attached paper.
48 Impact Assessment
A full Impact Assessment for the care home has been carried out as part of the consultation process.
Consultation
The indicative design of the care home with unit living for residents has been based on the exemplar used in Kirkcaldy, Glenrothes and Lumphinnans new build care homes and extensive consultation around the design.
Updated briefing sessions have been provided for elected members and the Community Council and continued dialogue with North East Fife elected members and the Cupar Community Council has taken place at the end of January 2021. A Q&A has been produced to answer questions raised (Appendix C)
Consultation has also taken place with the Care Inspectorate in respect of the new design.
Staff, residents and families at Northeden House have been briefed with regular Newsletters providing an update on the Replacement Care Homes Programme. A specific newsletter was issued which allowed families and residents to give feedback on the new care home proposal. Initial feedback has indicated a strong liking for the balconies in the design and the opportunity to have a dedicated garden space.
A meeting has been held with families of service users in the Adult Services Community Support Service, and they are kept updated with regular Newsletters.
1.0 Introduction
1.1 This document is the revised business case report for a new proposal for a 24-bed care home with 12 supported housing flats in Cupar and should be read in conjunction with the following Appendix:
• Appendix A: Project Business Case
1.2 The site proposed for the new care home and supported housing remains the Dalgairn Centre, Bank Street, Cupar. Adult Services Community Support Service has now temporarily relocated to Eden House in Cupar and will be accommodated in the new building. The Meals on Wheels Service has now relocated permanently to alternative accommodation.
1.3 The development of the care home will comprise of four major components:
• A 24-bed care home replacing Northeden House incorporating a hairdressing salon for use by residents and day service users as with our other care home facilities. • 12 supported housing flats for people who may require additional support. • A Day Service facility for older people with complex care and support needs who require a building-based service. • Accommodation for Adult Services Community Support Service to operate the services from. 49 2.0 Options for Delivery of Residential Care
2.1 The Policy and Co-ordination Committee on 24th January, 2019 approved the investment in Cupar Care Village.
2.2 The Dalgairn site is the only available site for the project as there were no other sites identified that were large enough to accommodate a 24-bed care home.
2.3 The site is tight and there is no option to build to three storeys without impacting the housing to the north and south of the site and this would generate community objections. This would also have created need for additional car parking that is already at the minimum permitted level.
2.4 The Project Team consulted with Housing Services and concluded that a joint residential care home and supported housing building enabling shared costs would be a solution to meet people’s supported housing need in the Cupar area. 3.0 Funding the Project
3.1 In line with the decision to proceed with the Care Home Replacement Programme, the project will be funded as follows:
CAPITAL COSTS – The indicative estimated costs for the Care Home element of the project are £6,600,000 for the 24 bed care home including construction costs, risk and inflation allowances, utilities, IT/CCTV and alarms, demolition works of the Dalgairn site including fees, demolition works of the Northeden site including fees, furniture, fittings and equipment, planning and warrant fees, all necessary surveys and reports, professional fees and property indices increase for Brexit/Covid-19. It has not been possible to bring the costs down to the original estimate of £5,580,000. Therefore, it is estimated an additional £1.020m is required to cover the additional construction costs, demolition costs of the existing Northeden site and property indices increase to mitigate risk factors.
3.1.1 The Capital costing allows for provision of accommodation within the care home/supported housing building for the existing Adult Services Community Support Service.
3.1.2 In comparison to Northeden House care home, maintenance costs in the early years of the new care home will be low. A planned programme for maintenance and refurbishment of the new care home in future years will be required to ensure that the living environment continues to deliver high quality care whilst meeting legislative requirements and the needs of older people. The revised design allows for future changes to the fabric of the building, i.e. if less supported housing was required, the supported housing element could be converted to care home rooms and vice versa.
3.1.3 All Fife Council properties have a planned maintenance programme and costs will be lower for this new care home due to new-build warranties that will be in place and design of the building. Budget for the planned maintenance programme is outwith the scope of this project.
3.1.4 H&SCP Revenue Budget is available to fund on-going running costs on a like for like basis and costs will be contained within existing revenue budget. 50 3.1.5 Housing Capital costs of £3,200,000 will be met by HRA Capital Investment Programme.
3.1.6 Housing Services revenue costs will be in relation to staff to support tenants in the 12 flats (1.5 posts). There will be on-going running costs, e.g. cleaning etc. which will need to be built into budgets. Housing Services have identified budget to fund these costs.
3.1.7 Non-domestic rates are not applicable for residential care homes which are in receipt of 100% rating relief. 4.0 Scope
4.1 The Business Case outlines the proposal for delivery of a replacement care home for Northeden House and supported housing accommodation on the site of the Dalgairn Centre in Bank Street, Cupar to include the following:
• A 24-bed care home • 12 supported housing flats • A day service facility with the potential to provide up to 10 places daily • Accommodation for Adult Services Community Support service 5.0 Business Need
5.1 The existing Northeden care home was built in 1983 and the original Business Case for construction of the new care home reflected the condition and suitability of the existing asset in January 2019. 5.2 Appendix B gives an overview of the current bed capacity across residential and nursing care homes in North East Fife. 5.3 Demand for supported housing in this area is high from people seeking accommodation in the Cupar area. 5.4 The new proposal for the replacement for Northeden House would provide opportunity for a shared facility with Housing Services and Adult Services which is in line with Fife Council administration approach. 6.0 Constraints
6.1 The size and topography of the Dalgairn site means that it is tight with no scope to build up to three storeys due to the proximity to residential housing above and below the site, which would generate community objections. There would also be an additional car parking requirement that would not be possible to create with the size of the site.
6.2 However, these constraints have created an opportunity to design a joint building with Housing Services.
6.3 Costs will be closely monitored, reviewed and reported to Programme Board throughout the design and construction phases in order to contain spend within the budget for Phase Two.
51 7.0 Programme
7.1 The current programme indicates that construction of the care home and supported housing facility could commence in April 2022 with completion by September 2023.
7.2 Prior to the relocation of services from Northeden House care home, the Assets, Transportation and Environment (ATE) Service will consult with other Services on any potential use of the existing building and Housing Services have confirmed they are interested in acquiring the site for specific needs housing.
7.3 There is a commitment from health and Social Care Partnership to demolish and clear the existing Northeden site prior to transfer to Housing Services for affordable housing. 8.0 Designs
8.1 The Design Team have now progressed to Stage Three, developing the detailed design, following acceptance of a Stage Two Report and Cost Plan for the revised proposal.
8.2 The existing care home exemplar layout used in the Phase One programme was used as the initial template and has been developed further, in conjunction with Care Inspectorate guidance to meet specific requirements.
8.3 The Housing Services’ design is based on our Extra Care flats model comprising accessible one bedroom flats with communal meeting spaces in the building. 9.0 Project Board
9.1 A Project Board is in operation with key officers representing the Health and Social Care Partnership, Assets, Transportation and Environment and Finance and Corporate Services, to project manage and deliver the projects within timescale and cost. The Project Board will also ensure that the required expertise is called upon and utilised at the appropriate times throughout the project’s life. 10.0 Risk Management
10.1 A Risk Strategy has been developed that captures all of the risks before starting, during the project and following completion.
10.2 Initial risks associated with the project have been identified and considered as part of the Business Case. These will be transferred to the Risk Log and maintained throughout and beyond the life of the project by the Project Team. The Risk Log will be a standing item on the monthly agenda as assurance for the Project Board. 11.0 Benefits
11.1 Benefits of the project have been identified and measures created which will demonstrate their realisation. Details of all benefits can be found in the Business Case (Appendix A). Some of the key benefits are:
52 • Significant measurable benefits in relation to the wellbeing of service users, staff and relatives/ carers as a result of the quality of the environment which promotes independence for service users. 12.0 Update on Care Homes Replacement Programme
12.1 If the revised proposal is approved, the replacement of Northeden House with a new modern purpose-built care home in Cupar will be the second home in Phase Two of the wider Care Homes Replacement Programme, following the replacement for Methilhaven home.
12.2 The new proposal represents a first partnership project with Housing Services that will comprise a joint building for care home residents and people with additional support needs.
12.3 Currently, Northeden House comprises 40 beds and the replacement care home would provide 24 beds to meet the design model of 12-bedroom units in the other new build care homes.
12.4 Work in Cupar will commence immediately following completion of Methil Care Village. Work on a replacement for Ladywalk House in Anstruther using the same model as Cupar may commence shortly after Cupar dependent upon Committee approval.
12.5 Planning approval for Methil Care Village was granted in December 2019 and construction was due to commence on site in March 2020. Work finally started on Methil Care Village on 5th October 2020 and is now well underway.
12.6 The current timeline for the programme anticipates completion of Methil Care Village by March/April 2022 and commencement in Cupar by April 2022. 13.0 Conclusion
13.1 The Business Case confirms that the necessary resources can be identified within the existing Re-provision of Care for Older People Capital Plan. This development will represent a significant capital investment in the infrastructure of Fife and will contribute towards the strategic objectives of Fife Council and its role within the Health and Social Care Partnership.
List of Appendices: Appendix A: Revised Project Business Case
Background Papers
53 The following papers were relied on in the preparation of this report in terms of the Local Government (Scotland) Act, 1973: • Executive Committee Report - Options for Future Care Provision for Older People – dated 23rd October 2012 • Capital Investment Plan 2017/2027 – Fife Council Budget Meeting 16/02/17 • Policy & Coordination Committee of 24th January 2019 – Replacement for Northeden Care Home
Report Contacts: John Cooper Service Manager, Older People’s Services Social Work Service Rothesay House Glenrothes Telephone: 03451 555555 + Ext. 402008 Email – [email protected]
Paul Short Service Manager – Housing, Health & Social Care & Older Persons Housing Services Rothesay House Glenrothes Telephone: 03451 555555 + Ext 480413 Email – [email protected]
54 Appendix A
Project ref & title Revised Business Case for Replacement of Northeden House, Cupar Programme or eVision Phase Two - Care Home Replacement Programme (if applicable) Project Sponsor Fiona McKay, Divisional General Manager (Interim) Project Manager Vivienne McBride, Change Manager – East Division Approval board(s) Policy & Coordination Committee Date & version 29.01.21 V. 3.0
As part of the proposal stage, you are only required to complete Section 1 of this document.
Document history Date Version Last revised by Details of revision 13.01.21 V. 1.0 V McBride Initial Draft. 27.01.21 V. 2.0 F. McKay Revision following consultation. 29.01.21 V. 3.0 Finance Finance Revisions
Section 1: Proposal
1.1 What is the project going to do? The revised project will deliver a replacement care home for Northeden House in Cupar and supported housing flats. The project will consist of a 24-bed care home, 12 supported housing flats for adults with support needs, a 10-place day service facility and a day facility for Adult Services Community Support Service. The Meals on Wheels facility allowed for in the original Northeden Business Case has now relocated permanently and is no longer required.
1.2 Why should we do it and what will happen if we do not?
1.2.1 Project background
Policy & Coordination Committee approved the original Business Case for the replacement of Northeden House care home on 24th January 2019. However, during the planning process there proved to be constraints due to the size and topographical nature of the site. Investigations revealed that there are no other available sites in Cupar. The site is tight with no scope to build up to three storeys due to the proximity to residential housing above and below the site, which would generate community objections.
Officers consulted with colleagues in Housing Services and agreed to consider the feasibility of a partnership project to build a joint care home and supported housing building on the site. Housing Services confirmed they would require a minimum of 12 supported housing flats on site.
A 36-bed care home and 12 supported flats would increase the car parking requirement for the care village and there is no scope to do this due to the size of the site. Therefore, the only way to achieve the care village model in partnership with housing is to have a 24-bed care home and 12 supported housing flats.
1.2.2 Project justification The Business Case approved on 24th January 2019 outlined the age and condition of Northeden House as well as changing needs, aspirations and dependency levels of our older people and the changing landscape of national care standards and Care Inspectorate requirements.
1
55 Appendix A
Residential care home places, permanent and short-stay, will continue to be required and the supported housing element of the building provides complementary alternative community care options for adults. The inclusion of day services and an Adult Resources facility within the care home/supported housing building will enhance the building and contribute to the prevention of hospital admissions and premature admission into residential care.
Adult Services Community Support Service has already relocated to Eden House in Cupar (located next to Northeden House) for the period of demolition of the Dalgairn site and construction of the new care home facility.
Prior to completion of the new care home and the relocation of services from Northeden House, Assets, Transportation and Environment (ATE) Service will consult with other Services on any potential use of the existing building and Housing Services has confirmed they are interested in acquiring the site for specific needs housing. H&SCP will demolish and clear the Northeden site prior to transfer to Housing for affordable housing.
1.2.3 Urgency and consequences There is a requirement for construction work of the care home to start as soon as is reasonably practicable due to significant works that require to be undertaken at Northeden House. It is projected that construction could commence in April 2022 following completion of the Methil project.
Failure to deliver the new care home in Cupar within this timescale will result in further deterioration of Northeden House and increasing energy costs. This will mean increasing capital and revenue requirements to maintain the status quo. The current layout of Northeden House, whilst meeting current needs, will not meet the needs of future generations as dependency levels increase.
1.2.4 Lessons learned The three care village projects undertaken in Phase One have highlighted the importance of working up a very tight and detailed specification and design brief.
The site constraints at Dalgairn required a re-evaluation in terms of what was achievable on the site and partnership working between the H&SCP and Housing Services provides an opportunity to enable provision of a new build care home and supported housing for adults.
The provision of day services accommodation and the inclusion of Adult Services Community Support Service within the building ensures an integrated range of service provision.
A balance requires to be struck between energy efficiency aspirations (lower running costs) and delivering the project within a constrained capital budget.
An effective operational model for the ongoing running of the facility will be developed in the year prior to the building opening. Running costs will be shared with Housing.
1.3 What are the key deliverables/outputs of the project? This project will deliver a new residential care home consisting of a 24-bed care home, 12 supported housing flats for adults, day service facility and Adult Services Community Support Service facility. This is in line with Fife Council’s Plan4Fife approach and using assets more resourcefully. 2
56 Appendix A
The outside space will provide opportunities for innovative landscaping that will benefit the residents, tenants and day service users in a safe environment.
Aside from the ‘physical’ deliverables of the new care home, supported flats, day service facility, and Adult Services Community Support Service, the following will also be required of the project:
• Agreement between services on the operation of shared facilities. • New staffing model and associated rotas for the care home. • New staffing model for the supported housing. • New revenue budget to be set for the care home. • Registration with the Care Inspectorate for care home and supported housing. • Transitional arrangements for care home residents and staff. • Transitional arrangements for supported adults to move from current setting • Transitional arrangements for Adult Services service users and staff.
1.4 What are the desired outcomes and benefits? Outcome Benefit Health & Social Care Partnership Building design allows for more efficient Increased staff satisfaction in working staffing model. environment.
Health & Social Care Partnership There will be a reduction of recurring revenue Reduction in revenue expenditure. expenditure of circa £88,000 per annum.
Health & Social Care Partnership Residents are living in an environment that Care Home residents are happy with their has an appropriate mix of private and living environment that has been designed for communal areas, including accessible outdoor the provision of high-quality care and support space, because premises have been to meet their needs and expectations. designed for high-quality care and support.
Health & Social Care Partnership Day Service Users are able to participate in a Day Service User satisfaction with day service range of activities that are enabling and provision. promote independence.
Housing Services Allows for a move on from settings which may New properties developed for Adults with no longer be appropriate for the individual. support needs.
Housing Services Housing tenants are happy with their living Tenants living in an environment which environment that has been designed for provides a secure tenancy, with support and independent living and support to meet their the provision of communal areas. needs
1.5 What are the known costs and timescale? How will this be funded?
1.5.1 Costs
Total expected one-off capital cost Total expected recurring revenue cost
3
57 Appendix A
Capital expenditure of £6,600,000 for the Future Northeden House Revenue delivery of 24-bed care home and expenditure will be £1,193,000 associated services as per item 1.1. The above is a reduction of recurring Capital budget of £3,200,000 for the expenditure of £88,000 per annum. delivery of 12 supported housing flats (inclusive of Scottish Government Grant) Revenue costs for 1.5 Housing staff and other miscellaneous costs - £60,000. The above estimated figures include: • Construction costs £50,000 for repairs, maintenance and • Risk and inflation allowances cyclical costs for the Supported Housing. • Utilities, IT/ CCTV & alarms • Demolition of Dalgairn works incl. fees • Furniture Fittings and Equipment • Planning and Warrant fees • All necessary Surveys & Reports • Professional fees • Demolition of existing Northeden House works incl. fees • Uplift in client direct costs to mitigate risk
1.5.2 Resource requirement The Project Board has been formed and consists of the individuals named below. All individuals named will carry out their responsibilities in relation to the Project as part of their operational post.
1. Project Sponsor/ Fiona McKay, Divisional General Manager Chairperson 2. Senior Users John Cooper, Service Manager, Older People’s Services Paul Short, Service Manager, Housing, Health & Social Care & Older Persons Ian Wilson, Service Manager, Adult Services (Resources) 3. Senior Supplier Alan Paul, Senior Manager (Property Services) Stephen Anderson, Service Manager – Major Works, Environment & Building Services 4. Project Manager Vivienne McBride, Change Manager – East Division
Representatives from Older People’s Services, Housing Services, Adult Services (Resources), Property Services, Assets, Transportation & Environment, and Finance & Corporate Services have been identified to support the delivery of the Project.
A design and build solution by Assets, Transportation & Environment is the preferred route of delivery for the care home and associated services, as this brings many advantages in terms of shared costs and the construction process. This would be subject to Value for Money Assessment as the design stage of the project progresses.
1.5.3 Project timeline The Design Brief is being developed and it is anticipated that construction could start on site in April 2022 and conclude by September 2023.
4
58 Appendix A
1.5.4 Funding availability Fife Council approved £18,300,000 in its capital programme in February 2017 for commencement of Phase Two of the replacement care home programme, to replace three care homes. However, latest costing reviews indicate a budgetary requirement of £6,600,000 for the care home element due to increased construction costs in relation to Brexit and Covid-19 for example, the need to demolish and clear the Dalgairn and Northeden sites and to accommodate the existing Adult Services Community Support Service. This estimated indicative cost includes direct client costs, such as furnishings and fittings, ITcosts and demolition costs.
The opportunity for joint working with Housing Services to address site constraints also had the benefit of bringing the care home costs closer to budget.
The remaining available capital budget within the care home investment programme for Cupar is £6,600,000. The Partnership has requested to bring forward £1.020m from the Capital Plan for the Cupar budget.
Scottish Government Funding for the new housing will be allocated through the Strategic Housing Investment Plan 2018/19 - 2022/23 which was agreed by the Community and Housing Services Committee in November 2017. The remainder of the capital will be met through the Housing Revenue Account.
H&SCP Revenue Budget is available to fund on-going running costs and costs will be contained within existing revenue budget.
Housing Capital costs of £3,200,000 will be met by HRA Capital Investment Programme.
1.5.5 Resource availability Yes.
1.6 What are the known pre start-up risks?
Risk description Probability Impact Overall score score (1-5) score (probability x (1-5) impact) Social Work Service and Housing Services
Financial Risk: The risk that actual cost of 4 5 20 construction of the care home and supported housing exceeds estimates.
Risk relating to Land: There is limited risk with the land which is in FC ownership. Any risk may be in 3 3 9 relation to timescales.
Registration Risks: Risks which there may be around registering the new care home and 3 3 9 supported housing building with the Care Inspectorate.
Operational Risks: Risks which may occur as a result of new staffing structure for the joint building. 3 3 9 There are financial implications if the structure needs to be reviewed in line with requirements. 5
59 Appendix A
Redundancy Risk: Risk of redundancy as a result of new staffing structure for the care home element 2 5 10 of the building. Social Work Service will work with Human Resources and Trade Unions in any Managing Change process to minimise impact.
Risks to Service Users: There are known risks associated with change for service users, e.g. the 2 4 8 transition from current residence to a new home. This needs to be carefully managed to a level that will not put service users at significant risk.
Specific Design / Construction Risks:
1. Change in requirements of the Council, that is, Council requiring changes (a 2 5 10
‘Council Change’) to the design leading to
additional design and construction costs.
2. Changes required to the design required due to legislative or regulatory change specific to 3 5 15 the Local Government Social Services environment leading to additional design and construction costs.
3. Failure to design brief in accordance with Council’s requirements. That is, failure to translate the requirements of the Council into 2 3 6 the Design Drawings/ Data.
4. Continuing development of design. That is, failure to develop the detail of the design within an agreed timetable leading to 3 4 12 additional design and construction costs.
5. Statutory approvals including Planning permission. Any delay in receiving Planning Consent or other stautory approval resulting in 2 5 10 broader cost implications for the Project.
6. Legislative or regulatory policy changes
specific to UK/ Scottish Government’s 2 5 10 targets - leading to additional costs e.g. Building Standards/ Fire safety regulations / sustainability targets & net zero greenhouse gas emissions targets etc.
7. Time & cost risks related to COVID-19, Brexit effect, including labour shortages, 2 5 10 reduced productivity and possible supply chain fragility issues leading to increased material premiums and delays. 6
60 Appendix A
Risk/Issues Logs will be maintained and updated throughout the Project.
Note: Once the project enters the Plan stage, the project’s pre start-up risks should be copied into the project’s Risk Log. The Risk Log will supersede the items detailed in the above table.
1.7 Proposal sign-off
Approved by Role Date approved Fiona McKay, Divisional General Manager (East) Project Sponsor Vivienne McBride, Change Manager – East Division Project Manager
BTS Approval (for IT related projects only) Role Date approved Directorate Solutions Manager or Competency Centre Manager
Note: For IT related projects, approval must be sought from the Directorate Solutions Manager or Competency Centre Manager within Business Technology Solutions (BTS).
7
61 Appendix A
Section 2: Business Case
2.1 What is the scope of the project?
2.1.1 Output Project outputs are defined in Section 1.3 of this document and relate to Option 4. Any updates to project outputs will be made in Section 1.3.
2.1.2 Resources Project resources are defined in Section 1.5.2 of this document and relate to Option 4. Any updates to project resources will be made in Section 1.5.2.
2.1.3 Customers The care home will provide 24-hour residential care for 24 residents. All residents will have been assessed by the Social Work Service and meet the eligibility criteria. The care home will also offer day services, Monday to Friday, each week, and existing day service users of the Northeden House service will have the opportunity to transfer to the new service.
The supported housing flats will be allocated via the Fife Housing Register. All tenants will require accessible housing and the support provided.
The Adult Services Community Support Service will be able to operate as it does currently within the new facility.
2.1.4 Staff Social Work Service: The staff directly affected will be those currently working in Northeden House in various roles.
Discussions will take place with Human Resources and the Trade Unions before the transition to the new home occurs, and all casual/relief and temporary posts will be scrutinised and all staff members’ status in relation to permanency will be ascertained. Fife Council’s Managing Change Process will then be followed in relation to the transition into the new care home and staffing structure. If there is an inadequate number of posts in the new care home to place all Northeden staff on their existing grades, then they may be offered equivalent posts elsewhere in the service or be at risk of potential redundancy.
Housing Services: There are no staff providing this type of service presently within Housing – this post will need to be developed and staff recruited.
2.1.5 Service delivery Social Work Service: All services currently provided at Northeden House, including the residential care service and day services.
All services currently provided at Dalgairn by Adult Services Community Support Service.
Housing Services: This is a newly developed service – it will provide Housing and support for 12 tenants.
8
62 Appendix A
2.1.6 Business process Modify existing service business processes.
2.2 How will ‘business as usual’ be maintained whilst change is implemented? Social Work Service: In terms of resources, it will be ‘business as usual’. The Health & Social Care Partnership has a dedicated Change Manager to take forward the project.
Input required from staff in Northeden House will be planned at times that are operationally less difficult to manage, and the home will continue to operate in the normal way until the move to the new home. This also applies to admissions, discharges, recruitment and maintenance.
There will be a planned transitional period for relocating residents, service users, staff and equipment to the new care home from Northeden House.
Adult Services Community Support Service have already relocated to Eden House in Cupar for the period of demolition of the Dalgairn site and construction of the new care home facility.
Housing Services: There will be minimal impact on day to day business. The development will be overseen by the Affordable Housing Team and management of the housing when complete will be undertaken by the Older Persons Housing Team and the NE Fife Area Housing Team.
2.3 Who are the key stakeholders? Key stakeholders are: • Current residents of the care home, day service users and respite users. • All Northeden House Care Home staff. • All family/carers of residents and day service users of Northeden House. • Housing list applicants for supported housing. • Housing staff on site • Local Area Housing Team. • Adult Services Community Support Service staff. • Adult Services Community Support Service service users and family/carers. • Local Councillors. • Integration Joint Board members. • All members of the Project Board and Project Team. • Potential future service users are also stakeholders and the Project Team has engaged with various forums and user groups to gather their views.
2.4 What are the options to deliver the project? • Policy & Coordination Committee of 24th January 2019 considered an options appraisal and approved the Northeden Business Case and Option 4 to deliver the project in line with the Fife Council Executive Committee decision. Option 4 was to deliver the project in-house through Asset and Facilities Management Service.
• This business case provides a revision to the project based on the detail outlined above.
In-house delivery through Asset and Facilities Management Service (Assets, Transportation & Environment) Cost Total One-Off Cost: £9,800,000. Recurring Revenue Cost: £1,303,000. Time 20 months from approval.
9
63 Appendix A
Quality Now experienced in care home and housing requirements: Social Work Service and Housing Services has built effective working relationships with Assets, Transportation & Environment across previous 3 care village builds. Additional benefits realised by utilising previous exemplar care home designs – use of BIM/3D models. Resource Assets, Transportation & Environment, Property Services 5.0 FTE, and Assets, Transportation & Environment, Building Services 10 FTE over the Cupar site. (Opportunity to maximise corporate capacity/efficiency through Assets, Environment & Transportation, Building Services, carrying out work packages where appropriate). Scope Baseline construction scope now established through work on the first three care villages in Kirkcaldy, Glenrothes and Lumphinnans. Risk Market prices exceeding available budgets; absence of “claims” culture; lower relative risk due to partnering approach. Static Assets, Transportation & Environment fees and absence of claims for additional design team fees if programme delayed. Covid-19 costs if further lockdowns are required. Benefits Service benefits as defined at 1.4 above would be met.
2.5 What is the recommended option from Section 2.4 to deliver the project? The recommended route was approved in the original business case by Policy and Co- ordination Committee decision on 24th January 2019. This revised business case outlines the revisions to the project since that time.
2.6 What is the outline plan and cost break-down?
2.6.1 Outline Plan Stage Outputs/deliverables Timescale
CARE HOME / SUPPORTED HOUSING TARGET CONSTRUCTION TIMESCALES PLAN Site investigations PLAN Design Brief formulation / Room Data Sheets / Facility Ongoing to April 2022 Requirements / Accommodation Schedules / Housing Requirements PLAN Early Scheme Design Stages PLAN Stakeholder Engagement Scheme design and cost proposals submitted / PLAN reviewed / assessed / accepted PLAN Planning submission PLAN Detailed design/ Production information PLAN Target Planning approval PLAN Building Warrant stages PLAN Production Information/Tender Documentation PLAN Agree Project Costs DO Construction period April 2022 to September 2023 C & R Target Handover September 2023 OPERATIONAL OUTPUTS PLAN Review Staffing Model/Rotas PLAN Recruit/Allocate Staff April 2022 to PLAN Transition Work with Staff September 2023 PLAN Transition Work with Service Users/ Tenants DO Managing Change Process for care home staff DO Transfer of service users/staff and housing tenants and resources to new care home/ supported housing DO building. DO Set up all ICT provision 10
64 Appendix A
Environmental Heath and Care Inspectorate C&R approvals Review. September 2023
2.6.2 Budgets Total capital budget Total revenue budget Capital budget of £6,600,00 for the Revenue Budget of £1,280,913 for the delivery of 24-bed care home new home.
Housing capital of £3,200,000 for 12 Revenue Budget of £60,000 for 1.5 supported housing flats (inclusive of Housing Staff. Scottish Government Grant) £50,000 for repairs, maintenance and The above estimated figure includes: cyclical costs for the Supported Housing. • Construction costs • Risk and inflation allowances £88,000 saving from reduction in number • Utilities, IT/ CCTV & alarms of Care Home beds replaced with external • Demolition Works incl. fees provision. • Furniture Fittings and Equipment • Planning and Warrant fees • All necessary Surveys & Reports • Professional fees
2.6.3 Cost break-down Item description One-off cost Recurring Funding Funding cost source available Capital Costs Construction of 24-bed Care £6,600,000 Capital Capital: Home, day service and Adult Yes Service facilities.
Construction of 12 supported £3,200,000 HRA Capital: housing flats. Capital & Yes SG The above estimated figure Grant includes: Construction costs Risk and inflation allowances Utilities, IT/ CCTV & alarms Demolition of Dalgairn works incl. fees Furniture Fittings and Equipment Planning and Warrant fees All necessary Surveys & Reports Professional fees Demolition of Northeden House works incl. fees Uplift in client direct costs to mitigate risk
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65 Appendix A
Total Capital Costs £9,800,000 Revenue Costs Total revenue costs relating to £36,000 Revenue Revenue: Cupar Care Home Yes Cupar Care Home Revenue £1,193,000 Revenue Revenue: Budget Yes Supported Housing Staffing £60,000 Revenue Revenue: Budget Yes Housing Maintenance & £50,000 Revenue Revenue: Repairs Yes Total Revenue Costs £36,000 £1,303,000 Totals £9,836,000 £1,303,000
2.6.4 How realistic is the approach? The capital costs are considered fair and reasonable and have been calculated having regard to analysed data from previous projects. Costs will be monitored throughout the project by the Project Manager and the Project Board.
2.7 What are the benefits of the project and what measures will be used to show their realisation? Benefit name Health & Social Care Partnership - Staff Satisfaction Measure A questionnaire will be developed to measure staff satisfaction. Baseline(s) per This will use measurable criteria and baseline figures will be developed six measure months before the move to the new care home. Target per Target will be set once criteria have been developed. measure Benefit Owner Unit Manager – Cupar Care Home. Timescale Questionnaire will be completed by staff six months after move to new environment and results will be compiled at that time. Programme Modern environment that is attractive to care home staff. end benefit(s)
Benefit name Health & Social Care Partnership – Care Home Resident Satisfaction with Living Environment Measure Health & Social Care Standards, 5.1, 5.7, 5.20, 5.23 Baseline(s) per Compliance with current Care Inspectorate guidance ‘Building Better Care measure Homes for Adults’ 2017. Target per • Ensuite facilities measure • Small group living • Provision of hairdressers • Appropriate mix of private and communal areas • Accessible outdoor space • Dementia Design principles Benefit Owner Health & Social Care Partnership Timescale By completion of new care home. Programme Care Home residents are happy with their living environment that has been end benefit(s) designed for the provision of high-quality care and support to meet their needs and expectations.
Benefit name Health & Social Care Partnership – Day Service User Satisfaction with Day Service Measure Health & Social Care Standards, 5.22, 5.23
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66 Appendix A
Baseline(s) per Compliance with current Care Inspectorate guidance ‘Building Better Care measure Homes for Adults’ 2017. Target per • Provision of domestic facilities that enable service users. measure • Access to outdoor activities. Benefit Owner Health & Social Care Partnership Timescale By completion of new care home. Programme Day Service Users are able to participate in a range of activities that are end benefit(s) enabling and promote independence.
Benefit name Health & Social Care Partnership – Saving in Revenue Costs Measure Reduction in revenue costs against previous years. Baseline(s) per This will use measurable data from previous years. measure Target per This is a one-off reduction in revenue costs. measure Benefit Owner H&SCP Timescale On operation of new care home. Programme Ongoing reduction in revenue costs. end benefit(s)
Benefit name Housing Services – Increased Tenant Satisfaction with Living Environment Measure Surveys of tenants in the accommodation Baseline(s) per Tenant satisfaction figures reported to the Social Housing Regulator measure Target per • Self-contained accommodation measure • Access to communal areas • Access to shared facilities • Housing for Varying Needs principles • Accessible outdoor space • Dementia Design principles Benefit Owner Housing Services Timescale 6 months following tenant entry. Programme Tenants are happy with their living environment that has been designed to meet end benefit(s) their needs.
Benefit name Housing Services - Contributing to meeting the affordable housing shortfall in NE Fife area Measure Number of units completed Baseline(s) per Number of social rented properties in NE Fife. Baseline figure will be set within measure 6 months prior to site start. Target per Increase no of social rented properties by 12. measure Benefit Owner Helen Wilkie, Service Manager Timescale At project closure. Programme Not applicable. end benefit(s)
Benefit name Housing Services - More efficient use of Housing Officer role Measure Number of tenants receiving support within development and surrounding community 13
67 Appendix A
Baseline(s) per 12 tenants receiving support in Supported Housing in Year 1 measure Target per Housing Support Plans completed. measure Benefit Owner Paul Short, Service Manager Timescale 3 years Programme Not applicable. end benefit(s)
2.8 What are the key assumptions and dependencies?
2.8.1 Assumptions It is assumed that the new care home/supported housing project can be delivered within budget and within the desired timescale.
It is assumed that the ground conditions are favourable for a project of this size given the existing use of the site by Adult Services.
It is assumed that stakeholders will be engaging and supportive of the proposals for the site.
2.8.2 Dependencies A period will be required for planning permission to be sought for the care home and supported housing.
2.9 What are the known pre start-up risks?
Project pre start-up risks have already been identified in Section 1.6 of this document. Any updates to project pre start-up risks will be made in Section 1.6.
2.10 What are the permitted tolerances set for this project?
Tolerance table Amber status Red status (triggers exception report to Project Sponsor/Project Board) Cost Health & Social Care Partnership Health & Social Care Partnership
Up to 5% over capital budgets, compared Any percentage over either budget that to the original expected project costs and exceeds the amber cost threshold. budgetary requirements.
Revenue – Expenditure will be managed within the revenue budget as per the Financial Regulations.
Housing Services Housing Services
Up to 5% over either capital or revenue Any percentage over either budget that budgets, compared to the original exceeds the amber cost threshold expected project costs and budgetary requirements.
Time Health & Social Care Partnership and Health & Social Care Partnership and Housing Services Housing Services 14
68 Appendix A
Up to 4 weeks late against the original Any schedule delay that exceeds the project schedule. amber time threshold.
Quality Health & Social Care Partnership and Health & Social Care Partnership and Housing Services Housing Services
Elements of acceptance criteria which Elements of acceptance criteria that have have no particular impact on the slipped beyond what is defined within the Business Case. These will be limited to amber quality threshold. These will have minor adaptations to accommodation an impact on the Business Case and schedule / room data information or would include such things as changes to facility requirements that would have little size of rooms, significant deviation in or no impact on service users, staff or Specification, fixtures and fittings or other stakeholders. Examples may deviation from agreed contract. include minor changes to fixtures and fittings provided. Resource Health & Social Care Partnership and Health & Social Care Partnership and Housing Services Housing Services
Resources available, but minor delay in Resources cannot be secured within a obtaining them, or up to 10% more reasonable timescale, threatening other resource required than originally tolerances, or any additional resource anticipated. required above the amber resource threshold.
Scope Health & Social Care Partnership and Health & Social Care Partnership and Housing Services Housing Services
Scope of the care home element will be Any element of project scope slippage determined through accommodation out with, or over and above, what is schedule and facility requirement defined under amber for scope. documents created by Assets, Transportation & Environment and Social Work Service. Minor changes in scope only would move project scope status to amber. Given the interdependent nature of the different components of the project, any significant deviation in scope would move status to red. Risk Health & Social Care Partnership and Health & Social Care Partnership and Housing Services Housing Services
All risks can be managed within the Any risk exceeding the amber threshold project with an overall score of up to 15. sees the entire Risk element of the . project slip to red.
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69 Document ref Proposal & Business Case PF01
Benefits Health & Social Care Partnership Health & Social Care Partnership
1. Staff satisfaction – tolerance will Red status would occur with non- be set when criteria agreed for this compliance of Care Inspectorate benefit. guidance. 2. Care Home resident satisfaction with their living environment. 3. Day Service User satisfaction with day service provision.
Housing Services Housing Services
1. Increased Tenant Satisfaction. Red status will occur when any permitted 2. Contribution to Affordable deviations are exceeded as defined Housing shortfall. under amber. This should be slippage 3. More efficient use of Housing that has significant impacts to the Officer Role. Business Case and could threaten overall project viability.
Red status would occur where there was lack of demand and scope to deliver services in the community.
Project Approach Page 16 of 19 PF01 – V.3.0
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Section 3: Project Structure
3.1 What is the governance arrangement?
This Project has a formal Project Board with a Project Sponsor, Senior User(s) and Senior Supplier(s).
3.2 What skills, knowledge and experience are required for successful project delivery?
Skills, knowledge & experience description Essential Desirable Project Management Skills Yes Leadership Skills Yes Expertise in Architecture / Care Home Design Yes Expertise in Social Care / Social Work Yes Experience of other organisations, i.e. benchmarking, lessons Yes learned. Excellent knowledge of the needs of Older People to inform design Yes Financial expertise and skills Yes Legal expertise in relation to all aspects of the project Yes Education skills, knowledge and experience Yes Expertise in Housing Yes HR expertise Yes Procurement expertise Yes Construction skills, knowledge and experience as required by the Yes Council Specific expertise and knowledge in relation to all of the following: Yes • Catering & Cleaning requirements • Moving & Handling requirements • Telecare and ‘nurse-call’ requirements • Health & Safety • Occupational Therapy • Management of change and transition
3.2.1 Is the required mix of ‘essential’ skills, knowledge and experience available to the Project Manager? Yes.
Project Approach Page 17 of 19 PF01 – V.3.0
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3.3 Project structure chart and project roles
Project Board Senior User(s) Project Sponsor Senior Supplier(s) John Cooper, Service Fiona McKay, Divisional Alan Paul, Service Manager Manager, Older People’s Services, General Manager (East) (Property Services) Social Work Stephen Anderson, Service Paul Short, Service Manager, Manager – Major Works, Environment Housing Services & Building Services Ian Wilson, Service Manager, Adult Services (Resources), Social Work
Project Team Project Assurance Hazel Hastie, Audit Technician, Audit & Risk Management
Project Manager Project Support Vivienne McBride, Change Lesley Burnie, Accountant, Manager – East Division Health & Social Care Partnership
Delivery Team Lead(s) Elaine Siggers, Team Manager, Older People’s Services, Social Work Jim Mitchell, Lead Officer – Affordable Housing & Regeneration Chris Lockhart, Lead Officer (Architecture), AFMS Stella Stewart, Team Manager – Social Care, Facilities Management Service Paula Birks, Community Support Manager, Social Work
Delivery Team Members Ann Bell, Unit Manager, Northeden House, Social Work Zoe Burns, Lead Officer, Older Persons Housing
3.4 Business Case sign-off
Approved by Role Date approved Fiona McKay, Divisional General Manager (East) Project Sponsor Vivienne McBride, Change Manager – East Division Project Manager Lesley Burnie, Accountant Finance Representative/ Service Accountant
Project Approach Page 18 of 19 PF01 – V.3.0
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Section 4: Project Delivery Resources
4.1 Who are the key resources the project may need to engage with at an early stage?
CPMO Click here for a minisite link with more information and guidance.
BTS (formerly known as IT) / Information Policy & Standards
Capital Programme
Property Services
Procurement
Climate Change, Carbon & Energy
HR Business Partners
Finance
Equalities Unit
Project Approach Page 19 of 19 PF01 – V.3.0
73 Cupar – Appendix B
74 Cupar – Appendix C
Cupar Care Village
Health and Social Care - Keeping You Informed January 2021
Introduction: Following the meeting held on 4th January 2021 with Elected Members the following table summarises responses to questions asked in relation to the replacement care home/ supported housing and day services proposed for the care village site at Dalgairn, Bank Street, Cupar. Question Answer Health & Social Care Detail the changes in design from initial design to The changes from the initial 36-bed care home design with older now? people day services and adult day services facility are: 24-bed care home with 12 supported housing flats and no Meals on Wheels facility. Detail the changes in allocated budget since £18.3m was the total Phase Two allocation and notional split of inception. I recall, maybe?... we started with an £6.1m for each of the three homes. The Methil budget is now £7.2m; equal split of the £18.3m Cupar - £6.6m and Anstruther £6.6m, reflecting the difference in size and design between the three homes. Methil is a larger 36-bed home compared to the other two 24-bed homes, and its budget now includes Covid-19 contingency costs. Additional funds are being drawn from Capital Minor Works budget to meet the overrun against £18.3m. Explain the rationale that drove the above design Care home design is based on 12-bed units as with our other new and budget changes at each decision point? homes. The Dalgairn site is the only available site in Cupar and it is tight with no scope to build up to three storeys due to proximity to housing above and below the site which would generate community objections; the site is also on a slope. A 36-bed home and 12 flats would also increase the car parking requirement and further reduce limited garden space and there is no scope to do this on site. Therefore, only way to achieve the care village model in partnership with housing was to have 24-bed care home and 12 supported housing flats. Budget changes have been required with receipt of Cost Plans that are produced at the end of Stages 2 and 3 in the design. There are no other sites available and negotiation with Dalgairn was positive for this development. Detail the impact, positive and negative, of the The design change provides a positive opportunity to create an proposed design changes on the care services innovative mix of care and support services to residents of Cupar offered to NE Fife residents and the key risks? and surrounding area. The opportunity to develop a model which will be designed in conjunction with residents and families and the wider community for future planning is a priority. The negative impact will be the time factor in moving people over to the new home and therefore we would not wish a delay. Summarise issues affecting the private sector The Covid-19 situation affects all care home sectors. There were
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Cupar – Appendix C now and in near future and their ability to absorb between 6% and 16% vacancies of registered beds across NE Fife in excess care bed requirements given demographic 2020. Detailed information on all the care homes in North East Fife trends? will be made available along with projected care bed vacancies. There is a 40% reduction in beds for Cupar. There will be a reduction of 8 registered care home beds in Cupar What evaluation has been undertaken of the and analysis has shown this will have minimal impact on the number impact of this on the provision of care home of places available for those that will need them. Further to this there places? are plans with Housing Services to consider models of care in the surrounding housing development. Was there a reduction of beds in the other new Yes, with the new care homes built in Phase One, there was a Council care homes? reduction of 4 beds in Kirkcaldy, 12 beds in Glenrothes and 4 beds in Cowdenbeath/Lochgelly. What is the waiting list for Northeden at the We do not hold a waiting list. All referrals for long term care present time and historically? placements across NE Fife are considered for any vacancies in terms of their circumstances, i.e. urgency, hospital discharge, etc. Service Users and families are required to make three choices as per Government guidance and we therefore ensure that when people enter into care they have a choice. How many beds are currently provided for respite There are currently 8 beds provided for respite and provision will care? continue to be provided in the Cupar area based on the needs of those requesting respite. We are currently exploring different options for respite as more people are now opting for respite at home and we are in discussion with Housing colleagues around the possibility of using supported housing for respite provision. What would the cost have been of building a 36- A 36-bed care home in Cupar would cost an additional £1.3m. bed care home as had previously been agreed? Although we would need to consider a different site which might bring further additional costs. What is the current day service provision in It is currently 50 places per week – 10 places each day, Monday to Northeden House and what is the new provision? Friday, and this provision is allowed for in the new care home design. Will the new home continue to be used as a Day Yes, there is an Adult Services day service provision within the Centre for individuals with a learning disability? building separate from the body of the care home. The Meals on Wheels service has now been The MOW service relocation to Kirkcaldy and Levenmouth was cost- relocated. Has this meant extra costs have been neutral. incurred with transporting meals to North East Fife? The revised design allows for future changes to This would be dependent upon future need and demand and be made to the fabric of the building. Can further assessed at the relevant time. information be provided on the likelihood of this occurring? The project is described as having a ten-place The older persons’ day service and adult services day service will be day service facility as well as a day facility for separate areas within the integrated building. There will be joint Adults Services Community Support Service. Will staffing facilities, multi-purpose rooms and access to day service these be separate areas or joined up? How will areas when not used for their specific purpose, as well as safe, the Care Home and other services be integrated? outdoor space. What types of service are provided by the Adult The Community Support Service supports adults who need support Services Community Support Service? How to access a range of activities during the day, evenings and many individuals are supported by them and how weekends. There are 15 staff in total within the service and they many staff are involved? support around 10-12 service users per day. Rating relief for residential care homes – would Tenants would pay Council Tax as in other social rented properties. this also apply to the housing? Can more information be provided on Fair 4 Fife This approach was about using assets more resourcefully to deliver Approach and using assets more resourcefully? joined-up services and the new building will incorporate four different services with the care home, supported housing, older persons and adult day services. What contingency costs have been included in The Project Team draw on advice from the Royal Institution of the project against Covid-19 measures? Chartered Surveyors and their Building Cost Information Service (BCIS). BCIS provide advice on projected cost increases on what is likely to happen over the next five years to construction tender prices
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due to difficulty in obtaining materials, material increases or labour shortages during the Covid-19 crisis. In line with guidance, the current cost plans have been updated up to Q1/22 – aligning with the current programme. An uplift of 7% on client direct costs are also included. Why is there a commitment from H&SCP to The Northeden site requires to be demolished to minimise running demolish and clear the Northeden House site costs: rates, maintenance, insurance, etc. Currently, our insurers are prior to transfer to Housing Services for affordable looking for increased security at vacant properties so if it is vacated housing? What is the current value of the and not to be reused or sold quickly it is expected that projects Northeden site? arrange this. Part of the agreement with Housing Services to deliver joint projects is that they will gain a cleared site to be developed for affordable housing. Housing Services may not build on this site immediately but ‘bank’ the land until required. We do not currently have a Market Value for the Northeden site. Would it not be better to know how the building Development of the operating model will take place in the year prior will operate now rather than leave this till the to the facility opening through consultation with all services. building is ready for occupation. Can more information be provided on the value A fully coordinated approach is adopted by the project team by for money assessment as the design stage of the involving/working with key suppliers/ partners from the outset. project progresses? Sensible suggestions are brought forward and assessed throughout the design stages and cost plans. Additionally, lessons learned assessments are carried out following delivery of each care home and continued improvements incorporated within future project proposals. Can more information be provided on additional Previous care home knowledge/exemplar designs can be reutilised benefits – use of BIM/3D models? and developed using existing 3D modelling assets and BIM software (building information modelling) BIM allows possible design solutions to be fully modelled, analysed and compared at an early stage and is beneficial as it allows the design team to consider construction costs alongside longer term operational expenditure – especially regarding the building services/ running costs etc. Risk – market prices exceeding available There is a risk that market prices of specific construction items could budgets; absence of claims culture – what does increase when compared to cost plans prepared pre-construction this mean? stages, i.e. steelwork, plasterboard etc. By utilising an in-house delivery model (Partnering by Property Services and Building Services) there is an absence of a “claims” culture as they are within the same directorate AT&E – e.g. no additional design team fees if a redesign required or programme delayed etc. Will there be a fixed price contract for the new No, typically a Lump Sum Contract with re-measurable elements is build. adopted while administered under SBCC Contract with Quantities for Use on Scotland (2016) Housing Services Can you advise on the difference in service for Extra Care flats are fully accessible, have access to a full 7 day a extra care housing/ supported housing compared week Housing Support Service. The key difference with Extra Care is to sheltered and very sheltered housing? What that we often provide meals services and there is access to Care will the additional support that is mentioned related services. actually provide? In the Cupar report it states that there will be As part of our work with Health & Social Care we have established a twelve supported housing flats for adults with Housing Priorities Group to identify service users who Health & additional support needs. Can you define what Social Care have identified as having an immediate priority to move this means in this context are adults under 65 due to their current home living situation being unsuitable. We also years? In paragraph 6.3 it states that housing work to establish longer terms lists. Currently 30+ people have been demand for supported housing in the Cupar area identified as needing accommodation in North East Fife area. For is high and there is a demand for housing in North any properties in Care Village situations the key thing we will be East Fife due to people who have been in looking for to let these flats is people over the age of 60 who have Stratheden requesting accommodation in the on-going care & support needs who have the potential for Cupar area. How many people with a history of independent living. We allocate these via a panel approach working
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Cupar – Appendix C mental illness may be accommodated in the new with a range of professionals who know the individuals concerned. Home? In addition, in appendix A, 1.2.3, it states We will continue to work with Health & Social care to get the that Housing Services have been working with optimum mix and benefit from this accommodation. Health and Social Care to establish the need for accommodation for adults with ongoing learning disabilities. The need for this type of accommodation relates to needing to move people out of hospital and Group Homes. How many people are in this situation and can you clarify how different categories of patient might use the extra care housing. It was noted that Ian Wilson expressed the view that individuals with a learning disability would not be accommodated in this type of accommodation - can this be clarified? Will tenants be able to claim housing benefit? Yes, tenants will be able to claim housing benefit as they would with any other social housing. The following questions were raised at further meeting with Councillors on 22nd January 2021, and meeting with Cupar Community Council on 26th January 2021:
Question Answer Health & Social Care and Housing Services Why can we not have the building over 3 flights to There are restrictions at the site that originally we were not aware make the 36 beds that were originally planned? of including: retaining wall; car parking facilities; garden capacity; Scottish Water availability already at a maximum; residential amenities; privacy to housing for overlooking gardens, and views of occupants to houses North and South of the site. The site is right across from Adamson Hospital, part Discussion was held with the hospital in regard to use of parking of the H&SCP – was consideration given to the use on their site however, there was no additional capacity. We will of this site? be working closely with the hospital considering new ways of working, i.e. hospital staff being able to come into the care home. Are the vacancies across Cupar or the whole of They are across the whole of North East Fife, and people have a North East Fife? Can we look at the residents of choice in regard to their residential care. Northeden and find out where these people come from? There are currently 28 long term care residents in Northeden – 10 people lived in Cupar before admission others lived in other areas of North East Fife and Central Fife.
The reduction from 40 beds to 24 beds, does this H&SCP is currently looking at the respite provision cross the not include respite availability? whole of Fife. Within the planned Cupar Care Village there will be 4 respite beds available in the care home and we are also looking at the possibility of using one of the flats as a respite provision. We have found that people are reluctant to go into care homes for respite now and would prefer to have a facility that is more of a home from home. This is a practice that is in place for adults who access respite provision and we will be looking at this for older people. Will the 4 beds be for respite and not used for long Yes, these beds will be safeguarded for respite. term residents? Can we get the number of people who use Ladywalk Respite 2019 – 142 Northeden and Ladywalk for respite? Ladywalk Respite 2020 – 17
Northeden Respite 2019 – 129 Northeden Respite 2020 - 31 Have additional costs been incurred with Meals on The restructure of Meals on Wheels service was brought about by Wheels moving from the Dalgairn site and now the impending closure of the Dalgairn Centre MOW distribution
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Cupar – Appendix C delivering to North East Fife from elsewhere. centre. Despite research, no alternative sites were identified as appropriate and the feasibility of rationalising the existing production into three sites rather than four was undertaken. It was recognised that a three-production site option was acceptable. A 'Managing Change' process was adopted and existing staff were redeployed to the other centres or facilities within the Council's catering service. There was no increase in personnel costs as a result of this with an overall a reduction of one full time supervisor and weekend supervisor post. The savings helped to fund an additional coordinator post with social care/MOW. With no increase in vehicle requirement, or additional fuel and no capital cost for equipment, the exercise was cost neutral. Since the changes we have had no negative feedback from customers and have been able to deal with a significant increase in business due to the Covid-19 pandemic. Within the report for Policy & Coordination There is clarity on what can be funded through the HRA and that Committee there is reference to changing the design is not care homes. The option to change the design in the future in future – would this be used for the extra care is around the possibility of the extra care housing being successful housing? and the need for care home spaces reducing, then Housing could convert the care beds into extra care flats to fully utilise the property. Why is the cost of demolishing Northeden included Yes, the cost of demolishing Methilhaven Home was included in in the project cost and was this the case with the the project costs. This cost is included in the projects as it keeps Methil project? the overall cost down, through prevention of damage to the vacant properties. Who will be offered the extra care housing The extra care housing is available to any older adult who meet properties? There was mention that these the requirements. That does include anyone with a learning properties would be given to adults with learning disability, mental health disability, etc. The mix is considered disabilities, mental health or other disabilities. Will when people are being considered. There is a panel who assess these people be able to mix within the care village. the applications and a full assessment of the individual as well as the other tenants is considered at the panel meeting. The other provisions within the area are also considered by the panel. There is also support from local geriatricians, Care Inspectorate and social work staff. Have local GPs been asked to comment on the Yes, the proposal will also be taken forward through the Locality proposal? Plan. Is the proposal constraint-led or budget-led? We have been looking to establish and develop the care home models within Fife and we have also had to look at the impact that Covid-19 had had on the views of people towards care homes. Yes, we have had to look at the budget envelope and work to come within the budget that is available but the feedback we have been receiving is that people want to stay at home as long as possible and not have to go into care homes if at all possible. Were the private sector asked to provide the entirety Going back a number of years the private sector were asked to of the care home projects? take on our in-house care homes but they were not willing to do this, therefore, the only other option we had was to rebuild to ensure our care homes are fit for purpose. On the paper that was issued to Policy & From feedback received more and more people are looking to Coordination Committee, can you advise around the receive respite into their home or another homely setting rather model of care? than going into a care home. How confident are we that the requirement of need There have been no pin points to indicate that the need could not will be accommodated in the proposed care village? be accommodated. Is the lump sum contract a fixed-price contract? A lump sum contract (with remeasurement elements) is actually a fixed price contract for a clearly defined scope of works at the onset of a project between FC Clients and Building Services – however, in this case there are mechanisms within the contract for remeasurement and cost reimbursement for adjusting this agreed
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Cupar – Appendix C
fixed price. This could include re-measurement for ground works /foundations that are affected by unforeseen factors (e.g. soft ground encountered during foundations requiring more concrete or discovering unrecorded services requiring additional work etc). Additionally, the lump sum/fixed price can also change or be remeasured for other provisional works or works with approximate quantities in instances where these can’t be firmly quantified in tender stage. Ultimately, it allows Building Services/ Sub- Contractors to fairly reclaim for any loss and expense for work not originally allowed for in the tender. Permeability – don’t see an East to West path on the This was not raised as a planning requirement for the project site plan? therefore is not included. Reduction from 36 to 24 beds? This was due to consideration of size of the site, opportunity to create a care village and people wanting to stay at home longer. There is also interest from private providers to build in North East Fife. Will this mixed economy be managed satisfactorily. We are in regular contact with all care homes and providers to monitor vacancies and demand. H&SCP links with Adamson Hospital? There will be a joined up approach with the Adamson Hospital and we will be looking for example at hospital staff being able to come into the care home. Could we keep Northeden House as well? This would not be possible as staff will transfer to the new home. Significant investment would be required in Northeden House to bring it up to Care Inspectorate standards, for example, the provision of en-suite rooms. How many respite beds will there be in total? There will be 4 in the new care home and 1 flat in the housing, therefore 5 in total.
Consultation:
• 19/01/21 – Information was sent out to Northeden House residents, families, day service users and staff seeking comments on the proposed design. Very positive response to date. • 19/01/21 - Information was sent out to Community Support Service’ service users and staff seeking comments on the proposed design. • 20/01/21 - Q&A Information was sent out to Councillors. • 22/01/21 - Presentation to Councillors. • 26/01/21 - Presentation to Cupar Community Council. • Housing Services meeting with East Fife Tenants & Residents Association on Friday 29th January 2021. • Revised Report and Business Case to Policy & Coordination Committee on 18th February 2021. • Spring 2021 - Information event planned for local community, subject to Covid-19 restrictions being relaxed.
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Cupar – Appendix C
Fiona McKay, Divisional General Manager (Interim), Fife Health & Social Care Partnership
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Policy and Co-ordination Committee 18th February, 2021. Agenda Item No. 7 Houses in Multiple Occupation (HMO): Review of Charging Structure and Fees
Report by: John Mills, Head of Housing Services and Nigel Kerr, Head of Protective Services
Wards Affected: Fife
Purpose
The report updates Committee on the decision to amend the charging structure and fees for Houses in Multiple Occupation (HMO), a decision taken by the Policy and Co-ordination Committee on 28th March, 2019. At that time, it was agreed to reconsider the position after 18 months of implementation.
Recommendations
The Policy and Co-ordination Committee is recommended to:
(i) consider the outcomes of the independent financial review of the costs of operating the HMO licensing service in Fife, which is showing service costs as £969k per annum versus income of £725k per annum and an under-recovery position of £244k per annum based on current HMO numbers and excluding discounts;
(ii) agree to hold HMO fees at current levels in 2021-22 due to the Covid-19 impact on the inspection process and to allow further work during 2021 to identify any potential efficiencies in the processes of HMO licensing, particularly in relation to purpose-built student housing; and
(iii) agree to further proposals being brought forward in advance of April 2022 to ensure the costs of the HMO licensing are fully recovered by HMO fee income, as expected through HMO legislation and guidance.
Resource Implications
The income and expenditure for HMO licensing is set within a ring-fenced account. The cost of providing HMO licences is expected to be fully funded from fee income.
Legal & Risk Implications
Statutory requirements under Part 5 of the Housing (Scotland) Act 2006 allow local authorities to apply reasonable and proportionate charges for HMO licensing. Risks to health, safety and service performance arise through under-funding of these services.
82 Impact Assessment
An EqIA has not been completed and is not necessary as the report does not propose a change to existing housing policy at this time. Consultation
The University of St. Andrews has been consulted around the outcomes of the independent review of HMO charges, having consistently expressed concerns around the HMO charging framework and fees set by the Policy and Co-ordination Committee on 28th March, 2019. 1.0 Background
1.1 HMOs are licensed under Part 5 of the Housing (Scotland) Act 2006. A licence is required for accommodation that is occupied by three or more persons from three or more families; used as a sole or main residence; and its occupants share basic amenities. 1.2 The number of HMOs in Fife varies throughout the year depending on the timing of application submissions, each licence operating over a three-year term. In December 2020, there were 1,190 HMOs with existing/pending licences, with capacity to accommodate 7,753 people. On average, HMOs accommodate 6.5 persons, 97.6% contain 3-10 persons and 2.4% contain between 11-500+ persons. Around 34.5% of licensed HMOs are student halls and the remaining 65.5% are other flats, houses, hostels, sheltered housing, lodgings and tied accommodation. 1.3 When the Policy and Co-ordination Committee considered the HMO charging structure in March 2019, it was reported that fees had not been reviewed since at least 2006. The need to update fees became critical to the Council as the number of HMOs had significantly increased, yet the charges and staff resources had not been adjusted to reflect this growth. A significant element of the service was being funded by the Council, while statutory guidance issued under Section 163 of the 2006 Housing (Scotland) Act provides that HMO licensing should not be subsidised by any other public income streams.
1.4 The HMO fee structure agreed by the Policy and Co-ordination Committee in 2019 was: No. of Occupants Proposed Fee
3-5 £1,480 6-10 £1,730 11-20 £2,080 21-50 £2,330 51-100 £2,580 101-200 £3,220 201-300 £4,440 301-400 £5,680 401-500 £6,320 500+ £7,540 Pre-application inspection £190 Missed appointment £100 Reissuing a HMO licence £24 83 1.5 The new HMO charges were expected to impact on HMO owners, particularly those with larger portfolios. However, scenarios within the first Committee report showed that based on very modest rents, the revised HMO fees represented a maximum outlay of 5.48% to HMO owners against gross rental income received over three years. The impact reduces if rents are charged at a higher rate or if there is an increase in the number of people living in a HMO. Large scale HMO providers benefit from economies of scale through the revised charging framework with a maximum fee charge of £7,540. A discretionary 10% discount is also applied to institutional HMOs occupied by 3-10 persons.
1.6 The Committee viewed the proposal to increase HMO licensing fees as reasonable and proportionate to the procedures required to carry out the Council’s HMO licensing function. The approach continued to meet Scottish legislation and statutory guidance, offering the opportunity to deliver a more comprehensive HMO licensing service. Committee requested an update of progress after 18 months to monitor the level of income versus the cost of services.
1.7 Implementation of the new structure from 1st June, 2019 led to criticism from the University of St. Andrews (UoSA), student representatives and parents, through media channels and directly to the Council. The principal concern was that the scale of increase would indirectly impact on charges to students, although the scenario prepared for Committee in 2019 did not substantiate this claim. Criticism has continued to be expressed through meetings with the UoSA around the impacts of the charging framework on purpose-built student housing.
1.8 In response to these criticisms, the Council commissioned independent housing and financial consultants to review the approach to HMO charging in Fife, the results of which would inform the report to Committee. The UoSA was consulted around the research proposal and presented with the draft findings. Further clarification has been requested by the UoSA around HMO processes and costs and work will continue during early 2021 to fully address these enquiries. 2.0 HMO Review 2020
2.1 The HMO review undertaken by the external consultant was based on:
• Benchmarking costs with other local authorities with significant numbers of HMOs • Developing HMO process maps with associated activities • Proportioning staff time and cost for each stage of HMO licensing and adjusting to reflect a percentage ‘likelihood’ of each stage of the HMO process occurring across all applications • Comparing income to the total cost of HMO licensing • Providing a financial projections tool for the ring-fenced HMO account for future fee setting
2.2 The findings of the HMO review show that:
• Benchmarking indicates that a sliding scale by property size continues to be the most common charging mechanism • The Council’s charge is below that of Dundee and Glasgow for all occupants and below Edinburgh and Aberdeen for 11+ occupants 84 • The impact of increasing HMO fees continues to be most significant for HMO owners with the fewest occupants and reduces for larger properties • Large scale HMO providers benefit from economies of scale through the revised charging framework with a maximum fee charge of £7,540 • The process costing exercise shows that there is an under-recovery of costs based on the revised charging framework.
2.3 In terms of the latter point, the current under-recovery of fees is estimated to be £244k per annum or £174 per HMO licence. Any discounts offered to HMO institutional providers for properties occupied by 3-10 persons will further increase the under-recovery total.
2.4 Both the Committee report of 2019, and this latest research, indicate that the Council’s HMO licensing service is not recovering costs, with different approaches taken to reach the same conclusion. As noted previously, statutory guidance provides that HMO licensing should not be subsidised by other public income streams, which means that the HMO fees will require to be adjusted.
2.5 However, Covid-19 has impacted on HMO processes during 2020, particularly in delaying inspections during lockdown, meaning that full service has not been possible. Housing and Protective Services have developed workarounds to risk- assess HMO applications and provide HMO licences to ensure properties continue to meet the required standards of safety and condition.
2.6 The UoSA continues to take the view that the charges are not proportionate and are impacting most on purpose-built student housing. However, student halls represent only one-third of licences, charges for larger HMO blocks are capped and institutional properties containing 3-10 people benefit from a 10% discount which is not available to non-institutional landlords. Irrespective of this, Housing Services and Protective Services have agreed to work with the UoSA to explore the potential for further ‘leaning’ HMO processes to streamline service costs.
2.7 In considering the Covid-19 impacts on services and the on-going discussions with the UoSA, it is proposed to delay any decision on increasing the charges until early 2022, allowing for any changes to be implemented from April 2022. It is anticipated that annual increments will thereafter be applied based on annual cost analysis through the HMO financial model provided by the consultant. 3.0 Conclusion
3.1 In 2019, Committee amended the structure and charges for Houses in HMO licensing aligned to the requirements of Scottish legislation and statutory guidance and requested a report on progress after 18 months. Independent research has been conducted which shows a continuing under-recovery of HMO service costs. Due to the impacts of Covid-19, it is proposed that any further adjustment to fees is delayed for a year, also allowing any further efficiencies in HMO processes to be identified.
85 List of Appendices 1. Fife Council / Arneil Johnston (Jan 2021) External Evaluation Briefing Paper
Background Papers The following papers were relied on in the preparation of this report in terms of the Local Government (Scotland) Act, 1973:
• Housing (Scotland) Act 2006 Part 5 https://www.legislation.gov.uk/asp/2006/1/part/5 • Licensing of Houses in Multiple Occupation: Statutory Guidance for Scottish Local Authorities (updated January 2012) https://www.gov.scot/publications/licensing- multiple-occupied-housing-statutory-guidance-for-scottish-local-authorities/
Report Contact Vania Kennedy Service Manager (Income, Poverty & Private Housing) Housing Services, Rothesay House Glenrothes email: [email protected] (currently working from home and available by email)
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1. HMO External Evaluation and Review: Background & Context
In 2019, Arnell Johnston were commissioned by Fife Council to conduct an external review of the HMO Fee structure. The review process was designed to:
• Benchmark Fife Council HMO fees with other Local Authorities in Scotland • Develop HMO Process maps which detail the activities in each stage of the application process • Establish staff time and cost for each of these activities • Audit and review the current approach to settling on a basic licensing fee for HMOs. • Provide a Financial projections tool for the ring-fenced HMO account.
The number of HMOs in Fife varies throughout the year as new applications are submitted and licenses are renewed through a three-yearly cycle. There are around 1,200 licensed HMOs with capacity to accommodate around 7,300 people. On average, HMOs accommodate 6 persons per property, however, most HMOs (95%) contain 3-10 persons with a small percentage (5%) containing between 11-500+ persons. Around 60% of licensed HMOs are let as flats or houses; 30% as student halls; and the remaining 10% as employee housing, hostels, sheltered housing, lodgings and B&B accommodation. This external evaluation review was commissioned following the implementation of a new sliding scale charging structure and revised fees for HMO licensing from 1st June 2019. The aim of the revised fee structure was to maintain income and expenditure within a ring-fenced account and ensure appropriate charging to owners for HMO service and the basis for increased fees for HMO licenses was to ensure that the service is fully funded to balance existing expenditure on this function through Housing Services. 1.1. Background & Context : The 2019 Revised HMO Fife Fee Structure In 2019 North Star Consulting & Research (North Star) carried out a survey on the operation of HMOs in Scotland, it was found that charges vary widely for both new HMO applications and renewals. The research showed that 71% of authorities have a sliding scale for fees whilst 29% have a flat fee structure. Of those authorities with the largest number of HMOs (Glasgow, Dundee, Aberdeen, Fife and Stirling), four have a sliding scale (ranging from a 6, 7, 8- and 10-point scale). It was identified that Fife was the only authority with a flat fee covering all levels of occupancy and most local authorities offer a discount for a renewal of an existing HMO licence. North Star recommended that the Council should take steps to revise the HMO charging framework and the conclusion was that the existing flat fee does not consider the number of occupants in an HMO, nor the amount of resources spent on each application and that a sliding scale should be introduced. It was recommended that the revised fee structure could more closely align charges to actual costs and allow a more proactive approach to HMO Licensing. The diagram opposite summarizes the requirement for the review of HMO fees in 2019:
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The revised fee structure implemented is as follows: Proposed No of Occs Fee 3-5 £ 1,480.00 6-10 £ 1,730.00 11-20 £ 2,080.00 21-50 £ 2,330.00 51-100 £ 2,580.00 101-200 £ 3,220.00 201-300 £ 4,440.00 301-400 £ 5,680.00 401-500 £ 6,320.00 501+ £ 7,540.00 Table 1: Fife Council HMO Fee Structure In addition to the change in fee structure it was also agreed that appropriate discounts should be applied to institutional providers of HMOs with capacity for 3-10 persons 1.2. Background and Context: HMO Legislation How it Works. The diagram below presents how HMO Fee legislation works in Scotland :
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1.3. Benchmarking the Fee Structure with other Local Authorities The table below presents the revised Fife Council HMO Fee structure compared to other Local Authorities in Scotland.
Table 2: Fife Council HMO Fee Structure Benchmarked to other Scottish LA’s Previously, because of the flat rate applied by Fife Council, Fife were one of the least affordable Local Authorities with smaller HMOs, however, as the property size got bigger, Fife did get more and more affordable. This, however, resulted in a reduction to revenues and the revised fee structure is now more reflective of property size.
The table below presents total income that would be generated if the fee charge (by number of occupants) for each of the local authorities shown in the table below was to be applied to the number of licenses in Fife. In addition to this its worth noting that a 10% discount is also applied in Fife were the number of occupants is between 3-10.
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Table 3: Fife Council HMO License Numbers applied to other LA HMO fees The impact of the revised fee structure in Fife is most significant to HMO owners with the fewest occupants. In all cases, the impact reduces if rents are charged either at a higher rate or if there is an increase in the number of people living in an HMO. Large scale HMO providers are shown to benefit from economies of scale through the revised charging framework with a maximum fee charge of £7,540. The current statutory guidance allows discounts to be applied in HMO licensing although there is no requirement to offer such flexibility. As described above, Fife implement a 10% discount on the licence fee for institutional, charitable and public sector HMOs with capacity for 3-10 persons, where the property layout follows a common ‘footprint’. The discount reflects a reduced input from the Council to the HMO licensing process.
The granting of such discounts will be entirely at the discretion of the Council and it is proposed that responsibility for applying such discounts is delegated to the Head of Housing Services.
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2. Establishing the true cost of the HMO Licensing process in Fife : HMO Process Mapping
To understand the true cost of HMO licencing in Fife, an in-depth review of each stage in the HMO licensing process was undertaking. Process Maps were developed which documented each stage of the application process.
The diagram below provides an example of a process map developed for one stage in the licencing process. Once the process maps were developed, staff time was then allocated to each of the individual tasks (where applicable). The annual salary cost for each member of staff in the process was provided by Fife Council, the salary cost information was then applied to the time recorded to cost each stage in the process.
The complexity of the HMO Licencing process means that not every licence will require the same staff resource, there will be some licences that will be satisfactory first time and will not require an appeal or the administrative costs associated with this.
On auditing the process maps, Arnell Johnston firstly established the cost of a licence if every stage in the process was to be applied. The table below illustrates the average cost of HMO Licencing (per licence) under this scenario.
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Time Taken Charge Pre-Application 01:50:00 £ 34.04 Application Check 03:30:00 £ 96.00 Notices, Objections and Consult 04:43:53 £ 97.72
Notice of Decision 01:30:00 £ 38.28 Admin 01:15:00 £ 23.21
Appeal 36:13:00 £ 1,274.68
Committee Process 05:31:40 £ 299.00
Hearing Process 05:00:00 £ 243.56
Enforcement 09:37:00 £ 29.39
Pre-Inspection Visit 05:22:00 £ 127.15
Pre-Inspection Work 06:15:00 £ 160.63 Inspection Visits & Reports 10:07:30 £ 250.76 Sum 99:49:00 £ 2,674.42
Table 4: Fife Council HMO Total Annual Cost of HMO License
The table above illustrates that based on the time recorded for each stage in the process and the average salary costs of each officer involved in each stage of the process, the total cost of HMO Licensing on an annual basis is £2,674 per application.
However, as mentioned above, not every application will require the same level of staff resource for each stage in the process. To establish a more realistic average cost per annum/ per licence, officers were asked to review historical data and apply a probability/likelihood percentage of each stage being required across all HMO licences in Fife.
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Stage Outcome Liklihood Cost Cost % Pre Application Pre Application 100% 34 £34.04 5% Valid First Time 20% 54 £10.86 2% Returned Once 40% 76 £30.38 4% Returned Twice 10% 152 £15.19 2% Application Check Deal with apps through email/phone calls to correct missing info 30% 100 £30.00 4% Satisfactory Application 30% 13 £3.90 1% Notices, Objections and Unsatisfactory EPES Memo 80% 26 £20.55 3% Consult Objection from Police/Fire 2% 173 £3.46 0% Objection from Public 10% 173 £17.29 2% Granted Application 98% 62 £60.83 8% Granted Application with Notice of Decision missing information 0% 41 £0.00 0% Refused Application 2% 12 £0.23 0% Admin Admin 98% 23 £22.75 3% Appeal Appeal 2% 1,275 £25.49 4% Committee Committee 3% 299 £8.98 1% Hearing Hearing 13% 244 £32.47 4% Enforcement Enforcement 80% 29 £23.51 3% Pre Inspection Visit Pre Inspection Visit 3% 127 £3.24 0% Pre Inspection Work Pre Inspection Work 98% 161 £157.42 22% Satisfactory First Time 3% 245 £7.34 1% Inspection Visits and Reports Unsatisfactory First Time 97% 257 £248.98 34% Total £722.88 100% Table 5: Fife Council HMO Total Annual Cost of HMO License (adjusted by likelihood)
The table above illustrates the likelihood percentages, based on a review of historical data held by Fife Council on the overall probability that the overall volume of HMO licences in Fife would require time against each stage of the process.
The application of these percentages to the total cost calculated for each stage in the process results in an average annual cost per licence of £722 as opposed to the £2,674 cost per licence figure as illustrated in table 4 above.
The average cost per licence was then applied to the total number of licences and as shown in table 6 below. It is evident from this calculation, that there is an under-recovery of income of £244k, based on the assumption that the average cost per licence is £722. To break-even on the current fee structure efficiencies in delivering the HMO licensing process would require to achieved to reduce the annual cost of the process to circa £520 per licence. It’s worth highlighting that the highest cost in the HMO process is inspection visits and reports, as 97% of licences are recorded as unsatisfactory first time, this results in a total cost of £248 per licence (35% of the overall cost).
An alternative solution to delivering a break-even position on the total cost of delivering the HMO licencing service in Fife Council, would be to increase the fee structure. However, this would result in a requirement to uplift fees by circa 30% to deliver the outcome. As the cost of delivering the service is predicated on assumptions around likelihood/probability adjustments, it is recommended that Fife Council seek to perform a more in-depth analysis and undertake further recording on the levels of probability of the volume of licences that require each stage in the process prior to making any changes to the current fee structure.
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Cost of Process Per Annum (3 Total Proposed Based off Per No of Occs Income Year Total Difference Licenses Fee Average License Average) Charge (Annually) 3-5 1195 £ 1,480.00 £ 1,768,600.00 £ 589,533.33 £ 863,846.27 -£ 274,312.94 -£ 229.55 6-10 149 £ 1,730.00 £ 257,770.00 £ 85,923.33 £ 74,212.71 £ 11,710.63 £ 78.59 11-20 45 £ 2,080.00 £ 93,600.00 £ 31,200.00 £ 22,413.23 £ 8,786.77 £ 195.26 21-50 5 £ 2,330.00 £ 11,650.00 £ 3,883.33 £ 2,490.36 £ 1,392.97 £ 278.59 51-100 5 £ 2,580.00 £ 12,900.00 £ 4,300.00 £ 2,490.36 £ 1,809.64 £ 361.93 101-200 4 £ 3,220.00 £ 12,880.00 £ 4,293.33 £ 1,992.29 £ 2,301.05 £ 575.26 201-300 2 £ 4,440.00 £ 8,880.00 £ 2,960.00 £ 996.14 £ 1,963.86 £ 981.93 301-400 0 £ 5,680.00 £ - £ - £ - £ - 401-500 0 £ 6,320.00 £ - £ - £ - £ - 501+ 1 £ 7,540.00 £ 7,540.00 £ 2,513.33 £ 498.07 £ 2,015.26 £ 2,015.26 Total 1406 £ 2,173,820.00 £ 724,606.67 £ 968,939.43 -£ 244,332.76 -£ 173.78 Table 6: Net Surplus/Deficit of delivering HMO licensing in Fife
2.1. Key Conclusions
The following key conclusions can be reached from the review of HMO Licencing in Fife:
• Benchmarking evidences sliding scale is most common charging mechanism.
• Fife Council charge is below Dundee and Glasgow for all occupants and below Edinburgh and Aberdeen for 11+ occupants
• The impact of increasing HMO fees is most significant to HMO owners with the fewest occupants.
• In all cases, the impact reduces if rents are charged either at a higher rate or if there is an increase in the number of people living in an HMO.
• Large scale HMO providers are shown to benefit from economies of scale through the revised charging framework with a maximum fee charge of £7,540.
• The process costing exercise shows that the average annual cost of delivering an HMO license is £722 and that this results in an under-recovery of costs based on the revised charging framework.
• If a break-even position is to be achieved, prior to making any changes to the charging structure it is recommended that Fife Council seek to perform a more in- depth analysis on the levels of probability of the volume of licences that require each stage in the process.
• It is also recommended that Fife Council use the process mapping exercise to establish where efficiencies could be achieved in the licensing process
It can be concluded that the process costing work provides a clear and transparent process for justifying the level of charges currently being applied by Fife Council for HMO licencing.
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In addition to the above, Arneil Johnston developed a 30-year financial projection tool for the HMO licencing process the picture below presents the principles of this tool. It is recommended that Fife Council implement this tool and aim to use this tool is used to regularly test the impact of any proposed changes to the HMO income or cost structure applied in Fife.
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Briefing Paper January 2021 11 97 Policy and Co-ordination Committee
18th February, 2021. Agenda Item No. 8 Severe Fife Wide Flood Events August 2020
Report by: Ken Gourlay, Head of Assets, Transportation and Environment, Paul Vaughan, Head of Communities and Neighbourhoods and John Mills, Head of Housing Services
Wards Affected: Fife Wide
Purpose
Severe weather in August resulted in several areas of Fife being impacted by flooding. The report provides an update on the work carried out to improve the Council’s immediate and long-term response to such events.
Recommendation(s)
It is recommended that Committee members:
(i) note the improvements made to existing resilience plans and arrangements to reduce impacts on communities in any future incident; (ii) support the Council in raising awareness in communities of roles and responsibilities in preparation for and during incidents, including how communities can be better prepared; (iii) agree that an additional £5m (£0.5m per annum over the 10 years of the plan) be included for Flooding Prevention within the Capital Plan for 2021-30; and (iv) agree that a one off £0.450m additional revenue budget will be provided to Roads and Transportation for Flooding prevention measures in 2021-22.
Resource Implications
The community response actions and improvements identified in this report will be met from existing resources. Emergency responses will be met from balances. Additional funding of £0.450m revenue funding will be provided to allow prevention measures to take place during 2021-22. This will be funded from £0.1m former quality of life monies and an anticipated underspend in Loan charges budget during 2021-22. In addition, funding of £5m (£0.5m per annum over 10 years) will be included in the capital plan review for 2021-30.
Legal & Risk Implications
Although this type of weather event and the resultant scale of the flooding is rare, there is the risk that it could happen again. Delivering the actions identified in the report through more effective co-ordinated responses and recovery to incidents of this scale will mitigate negative impacts on communities and on the Council’s reputation.
Impact Assessment
An EqIA is not required as this report does not propose a change or revision to existing policies and practices. 98 Consultation
Consultation has been undertaken with Assets, Transportation and Environment Services, Housing Service, Communities and Neighbourhoods, Contact Centre and Finance and Corporate Services.
1.0 Background
1.1. Fife was subject to severe disruption from extreme rainfall events on 11th and 12th August, 2020 which caused severe flooding to many locations across Fife. There was damage to roads, structures, private properties, council buildings as well as service disruption.
1.2. A Council debrief of the incident was held on 20th August, 2020 to identify lessons to be learned and areas of good practice relating to the Council’s response and recovery.
1.3. A report considered by Policy and Co-ordination Committee on 19th November, 2020 detailed the specific actions carried out by the Assets, Transportation and Environment Service in response to the flooding.
1.4. This report provides details on the wider findings from the Council debrief and the work which has been implemented to improve the Council’s response to future incidents. Section 2 identifies the improvements and actions taken to improve the Council’s response to incidents and section 3 concludes.
2.0 Improvements and Actions
2.1 Following the debrief, improvements and actions were identified for:
• Notification of Severe Weather • Resilience Plans and arrangements • Co-ordination • Available support • Community Resilience • Warning and Informing • Emergency Budgets • Role of elected members
Notification of Severe Weather
2.2 The Council receives notifications from both the Met Office and SEPA on potential severe weather. These are circulated to all Services advising the potential impacts. All Services take appropriate action in preparation, e.g. pre-checks being carried out by Assets, Transportation and Environment at known flooding hotspots to ensure culverts, grills, etc. were clear.
2.3 Communications have been issued to remind all Services that it is the impact of the weather warnings and not the colour of the warning that is important. Where warnings forecast medium impacts, key services will pro-actively liaise to get an increased understanding of the forecasted impacts and that appropriate steps are taken in preparation.
99 Resilience Plans and Arrangements
2.4 The Council’s Incident Management Plan is activated in response to emergency events including flooding. This generic plan details how the Council will co-ordinate its response to any incident in Fife. A specific chapter for the plan has now been created detailing the specific responses to severe weather-related incidents. This change now more readily complements Service-specific operational procedures. Co-ordination
2.5 The Incident Management Plan details that a Local Authority Liaison Officer (LALO) can be deployed to the scene of an incident by the Emergency Resilience Team to act as the Council’s point of contact at the scene reporting to the Incident Manager/Emergency Resilience Team, taking part in multi-agency meetings with the emergency services and requesting resources to support the initial incident response. An improvement being made is that, during the initial response phase to any flooding incident where it is ascertained that residents have been impacted, a LALO/Council officer will be requested by the Emergency Resilience Team to attend the scene and provide an assessment of the situation, regardless of a formal multi-agency request.
2.6 As detailed in the Council’s Incident Management Plan, an Incident Management Team (IMT) is formed to co-ordinate the Council’s response to flooding. Major incidents also activate the multi-agency Fife Local Resilience Partnership (LRP).
2.7 It was recognised in the debrief that improvements can be made to local incident co-ordination and, therefore, in addition to the LALO improvements identified at para. 2.5, the LALO/Emergency Resilience Team will be able to request the establishment of a local community support team to support those impacted by the incident.
2.8 The local community support teams will be led by the local Community Manager with membership from key Services such as Housing, HSCP, Education, AT&E and others as required. These Teams will co-ordinate locally the support for residents and businesses impacted by an incident including providing links to third sector organisations who could offer additional support. Available Support
2.9 The debrief report highlighted the important role that the Contact Centre plays in allowing access for individuals and communities to access support and to notify the council of flooding incidents and local requirements. The Contact Centre’s ‘out of hours’ line primarily deals with emergency housing repairs, homeless enquiries, social work, transportation and community alarms. The Contact Centre is reviewing its approach to staffing in line with Severe Weather Warnings.
2.10 The level of support provided will be assessed on a case-by-case basis and can include but not limited to: • All residents: o Offer of temporary accommodation such as furnished property or hotel when required as part of the 24-hour homeless service. The Council will endeavour to place households locally in the first instance but accommodation offered can be located anywhere in Fife as it is dependent on availability at the time and, if needed, a taxi service to the accommodation will be provided. This offer applies to anyone where they have no insurance and cannot find alternative accommodation through their own arrangements with family or friends as they are homeless due to flooding 100 o Provide support to complete welfare support applications for emergency funds o Provide, as required, equipment to assist with clear-up o Emergency welfare and food support
• In addition, for Council tenants:
o Assessment of damage to local authority property and instruct any repairs needed. Tenants will be kept up-to-date with any developments and be offered further advice and assistance o Offer a package of furnishing that would be rechargeable with the rent charge o Housing Services are considering how they can assist tenants prone to repeat flooding events with practical measures to mitigate damage to council houses
2.11 Private owners and Council tenants have their own responsibilities regarding their residence which includes:
• Private owners should have their own insurance and should contact their insurers to make a claim following an incident. The insurance company should offer alternative accommodation and assess the damage to the property. Most companies have a 24 hour help line and Housing staff can provide support when making a claim. It is recognised that private owners may not have purchased buildings and/or contents insurance. • Council Tenants - The Council is responsible for taking out building’s insurance for the structure and fabric of the property, however, contents insurance to cover any damage to belongings still needs to be purchased by tenants. It is recognised that not all tenants will have purchased contents insurance and that in some areas prone to flooding the premium will be higher. The Housing Service is in negotiation with the current insurance provider to ensure that adequate cover and cost is provided to tenants on a value for money basis.
2.12 However, if no insurance, both private and council tenants will be supported by the relevant Council Services and/or third sector organisations such as the Scottish Flood Forum.
Community Resilience
2.13 Over several years, the Council has promoted community resilience across Fife. There has been sporadic interest in this at a community level and only six official groups are in place across Fife.
2.14 The Emergency Resilience Team is actively engaging with those resilience groups we are aware of. The Emergency Resilience Team is also working with the South West Fife Local Area Team to build on existing cross-service links and to enhance existing Council support for community resilience groups. If successful, this process will be adopted across all seven local areas. 2.15 Elected Members have a key role in promoting this community-based initiative and in raising awareness in communities on the steps that they could take in preparation for not only flooding but other incidents that may impact their community.
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2.16 During the response to an incident, communications are shared externally mostly via social media channels, alerting the public to affected areas and advising of Fife Council's response actions.
2.17 Following each IMT, an Elected Members Briefing is issued to update on the impacts and actions being taken by the Council. The Communications Officers joined the Fife LRP meetings and supported the resilience partnership public messaging to the media.
2.18 The debrief recognised that improvements are needed in the communications and that more information can be provided to affected communities and elected members on actions being taken and access to support.
Warning and Informing
2.19 Fife.gov.uk has been updated to include more detailed information around flooding including:
• advice for tenants and home owners and their roles and responsibilities as well as the different organisations involved; • flood risk management; and • what to do in an emergency.
2.20 In addition, a campaign is being planned to increase awareness of this information.
Emergency Budget
2.21 The debrief highlighted that Fife Council has no allocated budget for emergency response expenditure. Any funding for Emergencies and Disasters is met from Balances, as it is unforeseen expenditure.
Role of Elected Members 2.22 Included in the Elected Member Induction Packs (issued in 2017) is Guidance on Emergency Resilience which includes the role of the Elected Member during incidents. The debrief recognised that this guidance required review. This updated guidance is available and the Emergency Resilience Team are available to support any elected member who wishes to learn more or support local resilience work in their communities.
3.0 Funding Availability
3.1 As detailed in the flooding report to this Committee in November, funding has been made available in financial year 2020-21 to carry out flooding investigations and follow-up works. Additional one off budget of £0.450m is needed for future years to complete this programme of work. This will be provided for within the budget for 2021/22. 3.2 Funding for any Flood Protection Schemes requires capital funding that is subject to the Prioritisation Process governed by Scottish Government Guidance and implemented across all 32 local authorities and is only accessible if a formalised Scheme is agreed, as required by Fife Council, and meets the criteria of the Scottish Government Prioritisation Process. At present within Fife Council, the Kinness Burn Scheme is the only such funded item (current figure £3.2m). 102 3.3 The Programme for Government 2020-2021 notes an extra £150m for flood risk management, in addition to the £42m per annum. However, at this time, Scottish Government have not provided clarity on the conditions associated with this fund. Once clarity is provided, Fife Council officers will seek to secure funding as appropriate.
3.4 To enable smaller schemes to progress where they do not meet the Scottish Government Prioritisation Process, additional capital budget of £0.5m per annum is required and will be incorporated into the upcoming Capital Plan review.
4.0 Conclusion
4.1 The Council has reviewed its resilience plans and arrangements following the August flooding and taken steps to improve the Council’s response.
Background Papers The following papers were relied on in the preparation of this report in terms of the Local Government (Scotland) Act, 1973:
• Severe Flooding – August 2020 – Policy and Co-ordination Committee of 19 November 2020 • Flooding - Debrief and Lessons Learned Report – dated 7 September 2020
Report Contact
Shona Robertson Emergency Resilience Manager Fife House, North Street Glenrothes
Telephone: 03451 55 55 55, Ext No 442315 Email :[email protected]
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Policy and Co-ordination Committee
18th February, 2021. Agenda Item No. 9 Transfer of the Climate Change & Zero Waste Team from Fife Resource Solutions to Fife Council
Report by: Ken Gourlay, Head of Assets, Transportation and Environment
Wards Affected: All
Purpose
The purpose of this report is to outline the proposal to transfer 8 members of the Climate Change and Zero Waste (CCZW) team from Fife Resource Solutions (FRS) to Fife Council. This is required following the previous declaration of a climate emergency by Fife Council which will increase the need for support to meet their climate ambitions.
Recommendation(s)
The Committee is invited to:
(i) note the contents of the report; (ii) approve the proposal to transfer 8 members of the CCZW team, along with associated budget implications, from FRS to Fife Council with effect from the start of financial year 2021/22. This will allow the Council to continue to meet the objective of the “Climate Fife” Action Plan; and (iii) delegate the changes to the Operating Agreement between Fife Council and Fife Resource Solutions to the Head of Assets, Transportation and Environment and the Head of Legal and Democratic Services.
Resource Implications
There are no resource implications associated with this report.
Legal & Risk Implications
There are no legal or risk implications associated with this report.
Impact Assessment
An EqIA has not been completed and is not necessary as the report does not propose a change or revision to existing policies and practices. There are not considered to be any implications under the Fairer Scotland Duty.
Consultation
The Board of Fife Resource Solutions approved this proposal prior to consultation with Finance Services and Human Resources.
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1.0 Background
1.1. When FRS was established in April 2014, it included the Climate Change & Zero Waste Team (CCZW). The role of the team currently includes both providing services to Fife Council (in relation to Climate Change and Zero Waste), to FRS through project management and communications support and generating income from third parties through Resource Efficient Solutions (RES).
1.2. The team currently comprises 11 staff (1 Service Manager, 2 Lead Officers, 4 Environmental Strategy Officers and 4 Technical Officers). Although 1 Environmental Strategy Officer post will become vacant from mid-January 2021.
1.3. Since 2018, CCZW have had a proportion of their total time assigned to Fife Council services. This allocation has been reducing year on year, in line with annual reduction of Management Fee reductions to FRS, resulting in an increased requirement for external income to be generated, with a proposed 50/50 split in 2021/22. This has been accompanied by an associated income target which currently stands at £0.277m in 2020/21 with a proposed increase to £0.305m in 2021/22.
1.4. Whilst CCZW have consistently brought income in each year of operation, it has not met the budget income target over the last two years and unlikely to meet the target this year, partly due to COVID-19 restrictions and the increased requirement of Fife Council. The average income achieved over the last 2 full financial years is circa £0.160m.
1.5. Based on the increased need of Fife Council, following its climate emergency declaration, coupled with the requirement for FRS to continue to grow external income opportunities, this means a need to review the relationship currently in place between FRS and Fife Council. This is required to ensure the Council priorities, under its sustainability commitments, can be delivered to the expected levels.
1.6. As such, FRS and Council officers have been discussing how best to deliver the actions from the “Climate Fife” Action Plan. 2.0 Fife Council Requirement
2.1 During the last year, the expectation from Fife Council has increased. In late 2019, Fife Council declared a climate emergency which emphasised their need for support to meet their climate ambitions. This was followed up by the production of “Climate Fife” Action Plan (by the CCZW Team) which has since been followed up with the climate emergency being adopted as one of the four areas in the Fife Council “Reform Agenda”, the Council’s priorities for recovering from lockdown. As such, Fife Council requested a review of the service and examine options for returning the team to Fife Council.
2.2 Given tackling the climate emergency is a priority for Fife Council, it is highly likely that there will be further demands made of the CCZW team. Any additional requirements, if met, strongly limits the ability of the CCZW team to achieve its external income target of FRS, through limiting time, and, equally important, limiting its flexibility to work for external clients.
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2.3 In addition to stretching resources and focus, it will lead to a persistent conflict between the needs of Fife Council and FRS, negatively impacting the current positive relationship and this will not be sustainable for either side.
2.4 As such, a more permanent and sustainable solution is required that benefits both organisations. 3.0 Proposal
3.1 It was considered that the most viable option for both Fife Council and FRS is the proposed transfer of some staff and budget to Fife Council, with an element of retention for FRS. It is considered that this option would strike the balance of managing the financial impact across both organisations, maintaining both services and the positive relationship between Fife Council and FRS.
3.2 The proposal is for the transfer of 8 CCZW staff to Fife Council, with 3 staff remaining with FRS. At present, there is 1 vacant post amongst these numbers which will be transferred to Fife Council. This will provide Fife Council with the option to either recruit based on work needs or remove the post to partially offset their share of the budgeted income target. The proposal is that the team will sit within the Planning Service.
3.3 Volunteers will be sought to ensure the proposed split of staff is met. If there are too few or too many volunteers, then a decision on who is allocated where will be taken which will be based on the individual’s preference, personal circumstances and any other criteria agreed with HR and the Trade Unions.
3.4 The transfer of staff will be via an ongoing managing change process, which will be finalised for the start of financial year 2021/22, subject to Committee approval. The transfer of staff to Fife Council will be undertaken in accordance with the Transfer of Undertakings Protection of Employment (TUPE) Regulations 2006, as amended on 31 January 2014.
3.5 The staff to be transferred to Fife Council will remain as a team continuing to provide the services they currently carry out for Fife Council. It is envisaged that their designated base will continue to be Bankhead/Fife House, Glenrothes, although, at this point, it is not known what future impact Coronavirus will have on office resources and staffing ratios. In the meantime, homeworking will continue to be the norm, where possible.
3.6 The work to be transferred to the Council will be the provision of strategic support through:
• supporting the Council in meeting the aims of the “Climate Fife” Action Plan; • the production of strategies and plans relating to climate Change and Zero Waste; • the development and management of projects and programmes to deliver financial, waste and energy savings; • undertaking reviews and audits to identify opportunities for improvement and ensure environmental legal requirements are being met; and • generating income through:
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o provision of environmental and consultancy services commercially to external clients; and o working in partnership with other environmental organisations, non- governmental organisations and community groups to access grants and other funding sources to deliver environmental projects.
3.7 In addition to the staff transfer, the income target would be distributed between both FRS and Fife Council, based on an average income of £0.160m achieved over the last 2 full financial years. This would be pro-rated on staff movements as £0.041m for FRS and £0.119m for Fife Council.
3.8 There are several existing external contracts in place for 2021/22 which will transfer to Fife Council with the staff. These will contribute greatly towards the income target in place.
3.9 The balance of the income target, which is £0.145m in 2021/22, will be absorbed by FRS.
3.10 The main benefits of this proposal are as follows:
• this offers a permanent solution to Fife Council meeting their additional resource requirements, while there will be flexibility in deploying the staff to areas of priority; • although FRS will be forced to realign the budget in 2021/22 to offset the budgeted income shortfall, this will become a permanent solution and remove any financial uncertainty in future years; and • this option protects the jobs of all employees currently in the CCZW team. 4.0 Conclusions
4.1 It is recommended that the Committee agree to the proposed transfer of 8 posts of the CCZW team to Fife Council from FRS, along with the transfer of an annual external income target of £0.119m.
4.2 Subject to Committee approval, this arrangement will be in place for the commencement of financial year 2021/22.
4.3 This proposal ensures no redundancies for staff, while ensuring Fife Council have enough staff to support their climate ambitions.
Background Papers The following papers were relied on in the preparation of this report in terms of the Local Government (Scotland) Act, 1973: • “Climate Fife” Sustainable Energy and Climate Action Plan (2020-2030) • Minutes of Environment and Protective Services Committee on 6th February 2020, which approved the above plan
Report Contact Ken Gourlay Head of Assets, Transportation and Environment Telephone: 03451 555555 ext 440473 - Email - [email protected] 107