Supplementary Agenda Document Pack - Economic Development and Infrastructure Services Committee - 30/04/2024

Moray Council · 30 April 2024
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Economic Development and Infrastructure Services
Committee 
Tuesday, 30 April 2024 
SUPPLEMENTARY AGENDA 
The undernoted reports have been added to the Agenda for the meeting of the
Economic Development and Infrastructure Services Committee to be held at
Council Chambers, Council Office, High Street, Elgin, IV30 1BX on Tuesday, 30
April 2024 at 09:30. 
BUSINESS 
13a) Zero Emission Fleet Replacement Strategy
Report by Depute Chief Executive (Economy, Environment and
Finance)  
3 - 40
13b) Flood Risk Management and Bridges Capital and
Revenue Budgets 2024-25
Report by Depute Chief Executive (Economy, Environment and
Finance)  
41 -
50
13c) Marine Safety and Operational Summary of 2023-24 and
Q3-4 2023-24 Updates
Report by Depute Chief Executive (Economy, Environment and
Finance)  
51 -
64
13d) Depot and Store Review
Report by Depute Chief Executive (Economy, Environment and
Finance)  
65 -
112
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Information Reports - Not for Discussion at this Meeting
Any member wishing to call in a noting or information report from one
meeting shall give notice to Committee Services at least 48 hours
before the meeting for which the report is published. The Notice shall
be countersigned by one other elected member and shall explain the
reason for call in including any action sought.   
Information Report - List of Property Transactions
Concluded Under Delegated Powers
Report by Depute Chief Executive (Economy, Environment and
Finance)  
113 -
124 
Summary of Economic Development and Infrastructure
Services Committee functions:
Roads Authority; Lighting Authority, Reservoirs Act 1975, Public
Passenger Transport; Flood Prevention; Twinning; Piers and
Harbours and Coast Protection; Industrial and Commercial
Development; Environmental Protection; Burial Grounds; Assistance
to Industry or Commerce; Public Conveniences; Council
Transportation; Catering & Cleaning; Land Reform (Scotland) Act
2003; Countryside Amenities; Tourism, monitoring funding from
European Programmes, youth training and employment creation
scheme and provide Architectural, Quantity Surveying, Maintenance
and Allied Property Services.     
Watching the Meeting
You can watch the webcast live by going to: 
http://www.moray.gov.uk/moray_standard/page_43661.html    
Webcasts are available to view for 1 year following the meeting.  
You can also attend the meeting in person, if you wish to do so,
please come to the High Street entrance door and a member of
staff will be let into the building. 
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REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE
SERVICES COMMITTEE ON 30 APRIL 2024 
SUBJECT: ZERO EMISSION FLEET REPLACEMENT STRATEGY 
BY:  DEPUTE CHIEF EXECUTIVE (ECONOMY, ENVIRONMENT AND
FINANCE) 
1. REASON FOR REPORT 
1.1 To provide Members with a strategic overview to decarbonise the Council’s
fleet and meet the agreed net zero targets. 
1.2 This report is submitted to the Economic Development and Infrastructure
Services Committee in terms of Section III (F) 15 of the Council's Scheme of
Administration relating to the function of the Council as Roads Authority. 
2. RECOMMENDATION 
2.1 It is recommended that Committee: 
(i) considers the EV strategy proposed by Fleet Services to ensure
the Council is well placed to meet its ambitious net zero targets; 
(ii) recognises the council’s progress made to date in reducing fleet
carbon emissions; 
(iii) notes that options put forward within the strategy will require
varying levels of capital investment, and endorses the preferred
option 2, which will be subject to consideration as part of the
standard financial planning process going forward; 
(iv) recognises that the transition to a zero-emission fleet cannot
progress at scale until suitable charging infrastructure is in place
following the depot review and smarter working projects; 
(v) agrees that proposals for Ashgrove depot are developed as the
council’s centralised green depot with alternative infrastructure in
place to allow development of net zero alternatives; 
(vi) agrees to the Council exploring external funding opportunities for
future hydrogen and biogas pilots. 
Item 13a)
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3. DEFINITIONS 
3.1  BEV – Battery electric vehicle
DNO – Distribution Network Operator (electricity transmission infrastructure
provider - currently SSEN)
EV – Electric Vehicle
FCEV – Hydrogen fuel cell vehicle
ZEV – Zero emissions vehicle
HDV – Heavy duty vehicles
ICE – Internal combustion engine vehicle (powered by diesel or petrol)
LCV – Light commercial vehicle (gross vehicle weight of up to 3.5 Tonne)
RCV – Refuse collector vehicle
HVO – Hydrotreated vegetable oil (Renewable diesel) 
4. BACKGROUND 
4.1 The Scottish Government (SG) has made the commitment to work with public
bodies to phase out petrol and diesel cars from the public sector fleet, and
phase out the need for any new petrol and diesel light commercial vehicles by
2025. They have set  a further target for these bodies not to purchase fossil
fuel light commercial vehicles under 3.5T after 2025 and have these vehicle
types phased out in Scotland by 2030. The SG target for phasing out Heavy
Duty Vehicles (HDV) is by 2040. The Scottish Government’s commitment to
public sector fleet decarbonisation was underlined by its signature of the
Climate Group ZEV Pledge for Public Fleets at COP26, however, these
targets are government targets as part of the statutory commitments in the
Climate Change (Scotland) Act 2009 as amended and are not binding on local
authorities.   
4.2 On 10 March 2021 the Council adopted a Climate Change Strategy for 2020-
2030 (para 13 of the minute refers).  The strategy set a goal of the Council
being carbon neutral by 2030 and that the Council, its officers and members
will work with others across Moray to deliver that goal. To be net-zero means
that the Council will reduce its carbon emissions as much as possible and
offset any remaining emissions. 
4.3 On 6 April 2022 the Council adopted a route map to start the process of
calculating how the Council would reach net zero emissions by 2030 (para 18
of the minute refers). This route map recognised the difficulty in converting
Council fleet vehicles and estimated that 75% of fleet vehicles would be
transferred to ultra-low emissions vehicles by 2030. The residual emissions
would have to be offset until the remaining fossil fuel vehicles were phased
out. 
4.4 On 7 February 2023 this Committee approved that in relation to vehicles, the
development of the council’s ZEV strategy and transition to net zero be
aligned with SG targets as detailed in paragraph 4.1 rather than tied to the
Council’s 2030 target (para 10 of the minute refers). This change in position
because between now and 2040, the market is expected to mature
significantly with greater choice and reduced costs. The approach was
intended to inform forward capital funding requests as part of the capital
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planning process. The strategy set out in Appendix 1 and summarised below
builds on this position. 
4.5 On Thursday 18 April 2024 there was media coverage about the inability of
SG to meet their high level climate change targets. At the time of writing it's
not clear what the wider consequences of this will be, although there are
some indications around carbon budgets, and retaining a commitment to net
zero. This report is based on information that is correct at the time of writing
and in recognition of the fact that there is still an acknowledged climate
emergency and 2030 target set by the Council itself, noting that this target and
the wider route map are currently under review and are due to be reported
before the recess. 
4.6 Work will continue to more closely align the separate strategies being
developed by the Council under its climate change aspirations. Currently
separate teams are responsible for the development of hydrogen strategies,
EV public infrastructure, Fleet decarbonisation and council owned
infrastructure.  
5. ZERO EMISSIONS FLEET REPLACEMENT STRATEGY 
5.1 The Council’s fleet services management team have developed a draft
strategy with key and separate themes to aid  transition to net zero. This draft
strategy is attached as Appendix 1. 
5.2 At present, the council’s existing fleet contains a total of 47 electric vehicles
which represents around 9% of the registered fleet. These vehicles have been
well received by Council staff and the wider community. A further 7 electric
vehicles are on order. In addition some plant, strimmers, blowers and
breakers have been replaced with battery powered alternatives. This early
and committed ambition to vehicle transition has put the Council in a strong
position in terms of a net zero transition. 
5.3 There are 525 registered vehicles in the main operational fleet, dominated by
light commercial vehicles with medium vans being the largest vehicle segment
(44%). The remainder of the fleet consists of pool cars (21%), heavy goods
vehicles dominated by 3 axle rigid trucks (17%), buses (7%) and the
remainder is tractors and heavy plant (11%). 
5.4 Given the wide range of vehicles in operation, at this moment in time there is
not one single technological solution to reduce the council’s carbon footprint
and some technologies are not yet considered mainstream solutions. All the
current available technology has been considered in the proposed strategy.
Currently the hardest task for fleet decarbonisation, relates to the larger/heavy
duty vehicles. 
5.5 The current annual Vehicle and Plant replacement capital budget is £3.53m.
Migration to a zero-emission fleet is going to be a complex process which will
take a number of years. Whilst good progress has been made it is evident that
issues such as supply chain pressures and price inflation are extending the
lead times for vehicles and infrastructure. Many manufacturers are still at the
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prototype stage, and this makes whole life costing, including estimating
residual value of vehicles, difficult to predict. 
5.6  In terms of investment to progress the journey to zero emission vehicles, the
strategy sets out three possible options The investment required will be
subject to consideration as part of the standard financial planning process
going forward. These options include: 
Option 1 - Enhanced capital spend which will meet the ambitious targets set 
by SG  
5.7 There is presently large cost disparity between Internal Combustion Engine
(ICE) powered and electric/hydrogen alternatives for the larger heavy goods
vehicles (HGV) and specialist vehicles. It is considered to meet in full the
ambitious SG and council targets to be net zero is not viable from a financial
and general risk perspective to purchase these as electric/hydrogen until the
market has matured, greater reliability can be ensured, and economies of
scale have led to a reduction in prices. 
5.8 It is suggested that there is significant financial risk with seeking full transition
by 2040. It is still very much emerging technology, with many of the larger
vehicle types not wholly available and tested. Analysis produced suggests
that, at current prices, capital investment of £6m per year would be required
and may not be the best use of investment taking into account that the
Council would be disposing of many of its fossil fuel vehicles before they have
reached their optimum life term and age profile. 
Option 2 - Steady state capital spend which will demonstrate the council’s 
clear commitment but not meet in full SG targets 
5.9 Continuing with the current levels of capital investment allows the Council to
continue with the current lifecycle planning approach as set out within the
Council’s 10 year capital planning process. It will allow the Council to continue
to operate vehicles to an optimum life which considers vehicle reliability with
age, the associated maintenance costs and predicted residual values to
maximise any depreciation costs. 
5.10 The Council will continue to replace fossil fuel type vehicle types at their
optimum life but will purchase appropriate ZEV equivalent on a phased
manageable approach linked to having the right amount of charging
infrastructure available. There are still risks associated with seeking a high
percentage of electric vehicles as it is still developing technology. However,
the Council has taken a strategic view to determine that it seeks electric
options where there is a clear and established market, for example in cars and
light commercial vans. 
Option 3 - Reduced capital investment which will significantly impact the 
transition to  a net zero fleet. 
5.11 The Council continues to face a very difficult financial situation with having to
find savings over 2024/25 and 2025/26 of approximately £13.5 million. It is
estimated that £10m of savings will need to be made in 2024/25 taking
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account of savings that have already been identified. This means that the
Council has no choice but to make significant changes to the services that are
delivered, and require to continue to reduce spend. 
5.12 If a capital cap was applied leading to significant reduction in current capital
investment, this would effectively halt the transition to EV and in addition will
extend the age profile of the fleet. Extending the age profile of the fleet will
have the following consequences, some of which are directly opposed to SG
targets; 
• Increased maintenance costs 
• Increased downtime 
• Increased labour time (- this is expensive and in short supply) 
• Potential for major component failure of assets leading to hire costs 
• Increased carbon emissions 
• Poor fuel economy 
• Poor public image 
5.13 Charging Infrastructure: The strategy sets out a 3 year approach to increasing 
charging infrastructure which facilitates the vehicle transition set out in Option 
2. It also sets out an approach to be delivered in tandem with the depot 
strategy (subject to a separate report to this committee) which would see the 
case for a green hub at Ashgrove depot being prepared to facilitate greater 
expansion of charging facilities at that site. This, along with other workstreams 
internally and with the DNO to develop charging infrastructure on a longer 
term basis form part of the future strategic actions described in the strategy. 
Summary 
5.14 The recommendation from Fleet Services management is to progress with
option 2, which is adopting a phased approach to replacing the current fleet
with ZEV equivalent. 
5.15 This option represents a blend of priorities which includes the initial ambition
tied to an affordable budget allocation in relation to ‘invest to save’ as well as
taking account of the Council’s commitment to climate change ambitions. A
range of different options have been appraised which included capturing the
level of capital investment against meeting climate targets. Firstly, the option
of increasing the total amount of electric vehicles to meet Scottish
Government targets completely was considered. However, this is not
achievable within the Council’s current financial resources and may not be the
best use of investment taking into account current emissions, charging
infrastructure required and the age of some of the current fleet. The result
would be the council effectively replacing vehicles before they are due for
replacement. The third option with reduced capital investment would halt our
transition to net zero. 
5.16 To meet the challenges of addressing the strategy, both the Energy Saving
Trust (EST) and Jacobs consultants have assisted in the development of the
strategy and acted as a sense check to the approaches being proposed. This
has involved considerations of current fleet and infrastructure and to offer
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technical advice on the broad timing and sequencing of the Council’s
continued move to a zero emissions fleet. 
5.17 Adopting a phased approach and continuing with the Council’s Fleet
Replacement Programme will result in the optimum operating age profile of a
maximum 7-year profile for LGV and cars and a 10 year profile for HDV. This
will minimise expensive repair costs and give an enhanced residual value of
the asset on replacement.   
5.18 In addition, this would also result in fuel savings, reduced maintenance costs
and an increase in carbon emissions being saved each year as more and
more vehicles are replaced with ZEV equivalent. 
6. FINANCIAL POSITION 
6.1 It is predicted that if the Council can continue with the £3.53m capital
investment (as highlighted by option 2 in EV strategy), which is currently
identified within the 10 year capital plan through to 2040 that the council
would be able to replace current fossil fuel vehicles at optimum life with EV
equivalent on a phased and managed approach.   
6.2 Over the life of the project this preferred option 2 would see the council’s
overall capital investment at £60m and allow the council  to have 353 vehicles
at zero emission. This would not meet the ambitious SG targets currently in
place but would demonstrate the Council’s commitment which, in the absence
of adequate external funding, would be affordable. 
6.3 To fully meet the SG targets and have all the Council’s fleet ZEV by 2040
would cost the Council over £107m. This is an additional £47m capital
investment and would result in replacing fossil vehicles well before their
optimum lifetime. There is also significant risk in not having the appropriate
charging infrastructure in place to cope with such wholesale vehicle
replacement. 
6.4 It is also recommended that where a ZEV specialist or large vehicle is
available that these are trialled in the short term between 2025 to 2028 and
purchased at small scale to robustly test suitability for service uses and
ensure value for money to the Council is achieved in its transition from
petrol/diesel vehicles to ZEVs. 
6.5 In the assumptions used, a switch from an ICE vehicle to an equivalent
electric vehicle comes with some cost savings. One saving noted within the
cost model is the saving on diesel. Even with increasing electricity prices,
charging an electric vehicle is noticeably less than the cost of diesel. 
6.6 An additional benefit of this transition to electric is the carbon emissions saved
from the day-to-day operations of the current ICE fleet. There are significant
savings (tCO2) per year that the proposal is forecast to provide.  
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6.7 The current technology and the council’s early installation of EV charging
infrastructure now makes the cost of smaller electric vehicles a viable
replacement proposition with range and whole life costs comparable to petrol
and diesel equivalents. 
6.8 The technology for larger/specialised vehicles is still very much developing,
making the whole life costs for these vehicles a riskier financial proposition for
the council. For this reason, the strategy is focused to start with small
vehicles, replace in phases and only replace large/specialist vehicles when
the technology is right and whole life costs have fallen. In addition, as set out
in the strategy, it is recommended that other fuel sources are also explored as
well as EV technology, especially for larger vehicles. 
7. SUMMARY OF IMPLICATIONS 
(a) Corporate Plan and 10 Year Plan (Local Outcomes Improvement
Plan (LOIP))
The Strategy for delivering the Council’s approach to ZEV and fleet
transition sits within the approach of the council in its Corporate Plan of
building a stronger greener vibrant economy and will see Moray being
recognised as an outward facing and ambitious Council delivering a
sustainable economy. 
(b) Policy and Legal
Scottish Government’s draft vision for Scotland’s Public Electric Vehicle
Charging Network sets out the future approach to funding to provide,
expand and operate the network.  The Councils strategy to delivering on
these objectives have been prepared taking the draft vision into account
and following the template and guidelines, and using the supporting data
provided by Scottish Government and Scottish Futures Trust. If the EV
strategy is not approved there is significant risk of non-compliance
leading to potential reputational damage for the Council. 
The targets set by Scottish Government do not impose a binding duty for
full compliance, but Scottish Government has made the commitment to
work with public bodies to phase out petrol and diesel cars from the
public sector fleet and phase out the need for any new petrol and diesel
light commercial vehicles by 2025. The recommended approach from the
strategy attempts to strike a balance between SG targets, the council’s
own net-zero aspirations and affordability. 
(c) Financial implications
The financial cost of decarbonising the LGV fleet is significant. The cost
of LGVs powered by electric and hydrogen remain prohibitively high.
Generally, EV costs are double to treble, and hydrogen costs are
quadruple the cost of diesel vehicles. There are financial implications
associated with the future decarbonisation of the fleet and building of
required infrastructure. 
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If option 2 is approved, which sees capital expenditure continuing at
current capital plan rates it may be that additional capital savings will be
required from elsewhere within the Council’s 10 year capital plan to fund
the additional investment required to transition to ZEV fleet. This would
be considered along with other strategic positions when reviewing the
capital plan for future years. Whilst the capital spend figures quoted in
the strategy and report are gross figures, for 24-25 this will be delivered
with the slippage factor in place. 
There will also be additional cost of infrastructure to be considered but
these costs are unknown at this time. This high-level approach is based
on the fact smaller vehicles are much cheaper to replace and do not
drastically increase the capital costs but as the council  does progress to
replacing the larger vehicles, costs will increase. 
The details in this report set out the costs associated in transitioning the
council fleet to ZEV. However, it must be highlighted that these
projections are at today’s prices and the current market is very fast
paced and rapidly evolving. It must also be pointed out that there will
likely be costs savings in running an EV fleet as a result of the difference
between cost of electricity and cost of diesel, but this can only be
assumed subject to external market changes. Another cost assumption
is the EV sector suggests a reduction in maintenance costs but this is
not proven at this time and difficult to quantify. Initial cost monitoring of
current EV’s is showing a 10% reduction in parts costs and a 10%
reduction in labour costs for smaller EVs with equal costs but increased
downtime for larger vehicles. It should be noted that these new vehicles
and is early monitoring data. It is however predicted over the long term
that revenue maintenance costs will reduce and these reductions could
be offset against the capital borrowing costs funding the vehicle
replacement programme. 
It is also assumed that the current ZEV replacement costs will become
less as the external market develops.  The council will require to utilise 
capital and revenue budgets alongside grants and bids to Scottish
funding streams. There will be pressure on the market to supply ZEVs
which will impact on pricing and availability as organisations move to
replace their fleet to meet internal and national targets. 
As reported there will be financial implications with regards to the
associated infrastructure required whether this be electrical
underground, electrical battery, solar, wind or hydrogen. It is crucial that
the on-going depot and buildings review is completed which will
influence the most suitable and appropriate charging infrastructure
required at key locations to transition all of the Council’s fleet. 
There is potential for significant financial cost to the Council to offset
carbon emissions in the future which could otherwise be avoided by
taking action now.  
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(d) Risk Implications
Budget Pressures – Officers will seek to maximise the funding available
from Scottish Government to assist with the transition to zero emission
vehicles and build the required infrastructure. There is also a risk that
avoidable financial costs could be incurred by the Council in the future if
actions are not taken to reduce carbon emissions. 
The current fleet vehicles are aging and becoming more costly and
unpredictable when it comes to general maintenance and repair. This
can have a critical impact on service delivery if vehicles remain out of
service for longer than services plan. 
ZEV availability – there is a risk that the council will not receive vehicles
in time to reach SG targets. 
There are some risks associated with seeking a high percentage of
electric vehicles as it is still developing technology however, the Council
has taken a strategic approach to determine it seeks electric options
where there is a clear and established market, for example in cars and
commercial vans. 
Workforce – Investment in Depots and Training will be provided to
ensure our teams and the right skills and working environment to
maintain a zero-emission fleet. 
Road to Net Zero Challenges – The actions from this report will support
the reduction of CO2. 
Infrastructure – It is challenging to receive advice, estimates on cost and
installation timescales from the council’s DNO operator within
reasonable timescales and this is widely the same across all regions,
simply due to the demand and capacity issues across the network. 
(e) Staffing Implications
To meet the council’s net zero aspirations is challenging within current
workforce. The market is rapidly changing and appropriate resourcing,
including project management support is crucial to manage infrastructure
installations, power sources and planning/building warrant issues. 
The change required to transition all the fleet will require on going
management and administration of the back-office infrastructure function
such as control of charging cards/Invoicing/repairs to infrastructure
responding to out of hours emergencies. 
Training will be required at all levels throughout the organisation.
Recruitment and retention of fleet staff remains an issue. 
(f) Property
The depot review is critical to allow for better understanding of what
depots and building assets are to remain in the Council’s long term plans
moving forwards. This will provide the strategic direction to assist with
planning of the infrastructure, carrying out reviews to identify capacity
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issues at depots/buildings which will then require planning and building
warrant control. 
(g) Equalities/Socio Economic Impact
The transition to a more environmentally friendly fleet will result in
improved air quality for local communities. 
(h) Climate Change and Biodiversity Impacts
There is a reputational risk of not meeting the statutory Scottish
Government and Moray Council objectives in relation to its climate
change aspirations and 2030 net zero target. 
The operation of fossil fuel powered vehicles contributes to local air
pollution as well as greenhouse gas emissions and the approach
proposed in this report will prolong release of air pollutants and
greenhouse gas emissions and resultant exposure to employees and the
wider public. However, it is noted that the proposed replacement
vehicles will emit lower levels of air pollutants and greenhouse gas
emissions than the current models in operation. 
(i) Consultations
The Depute Chief Executive (Economy, Environment and Finance),
Head of Environmental and Commercial Services, Legal Services
Manager, Chief Financial Officer, Climate Change Strategy Officer (G
Gunn), Committee Services Officer (L Rowan), and Equalities Officer
have all been consulted and their comments incorporated into this report. 
8. RECOMMENDATIONS 
8.1 Subject to approval of the EV strategy and option 2 proposed within the
strategy, it is proposed to transition the fleet aligned at a pace to show
significant commitment to meet SG targets in conjunction with the
council’s lifecycle planning approach. It is still anticipated that between
now and 2040 the market is expected to mature significantly with greater
choice and reduced costs. 
8.2 This paper and attached strategy appendix sets out the projected capital
funding that will be required to transition the council’s fleet to ZEV and
will be put forward for consideration as part of the capital planning
process. 
8.3 Work will continue to more closely align the separate strategies being
developed by the Council under its climate change agenda. Currently
separate teams are responsible for the development of hydrogen
strategies, EV public infrastructure, Fleet decarbonisation and council
owned infrastructure. 
Authors of Report: Mark Atherton, Roads Maintenance Manager 
John Pearson, Acting Fleet Manager 
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Background Papers: 
Ref:    SPMAN-524642768-1059
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Zero Emission Fleet Replacement Strategy DRAFT 1
Zero Emission 
Fleet Replacement
Strategy
April 2024
Draft
Item 13a)
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Zero Emission Fleet Replacement Strategy DRAFT2
Deﬁnitions 
BEV Battery electric vehicle
FCEV Hydrogen fuel cell vehicle
ZEV Zero emissions vehicle
HDV Heavy duty vehicles
ICE Internal combustion engine vehicle (powered by diesel or petrol)
LCV Light commercial vehicle (gross vehicle weight of up to 3.5 Tonne)
RCV Refuse collector vehicle
HVO Hydrotreated vegetable oil (Renewable diesel)
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Zero Emission Fleet Replacement Strategy DRAFT 1
Contents
Executive Summary 
1 Current Fleet Status 
2 Zero Emission Fleet Replacement Strategy 
3 Vehicles 
4 Charging Infrastructure 
5 Fuel 
6 Fleet Replacement Lifecycle Planning 
7 Capital Investment Projections 
8 Potential Savings
2
3
5
9
12 
15 
19 
20 
24 
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Zero Emission Fleet Replacement Strategy DRAFT2
Executive Summary 
As part of the climate change target of net zero emissions by 2045 the Scottish
Government (SG) have set a target to replace all public body operated fossil fuel passenger
cars by 2025 with a further target for these bodies not to purchase fossil fuel Light
Commercial Vehicles (LCV) under 3.5T after 2025 and have these vehicle types phased out
in Scotland by 2030. The SG target for phasing out Heavy Duty Vehicles (HDV) is by 2040. 
Moray Council have demonstrated a clear commitment to net zero targets through the
commencement of a vehicle transition programme. At present, the council’s existing
ﬂeet contains a total of 47 electric vehicles. This early and committed ambition to vehicle
transition has put the Council in a strong position to ensure continued compliance with
government regulations as net zero targets approach. This report will clearly outline a
continuation of the current replacement eﬀorts to enable Moray Council to remain on
target to ensuring the adoption of Zero Emission Vehicles (ZEV) meet current national
policy commitments. 
The delivery of the council’s ﬂeet replacement programme will be heavily dependent on
the availability of suitable electric vehicle replacements that will meet the wide spectrum
of operations and services that they support. Therefore, a phased replacement plan is
suggested, reﬂecting the uncertainties in the supply of vehicles, their operational
capability, and aﬀordability. 
The council has approved that in relation to vehicles, the development of the council’s ZEV
strategy and transition to net zero is aligned with SG targets. Between now and 2040, the
market is expected to mature signiﬁcantly with greater choice and reduced costs. Whilst
the SG targets are not binding on local authorities, they are a material policy consideration
and align with the council’s own Climate Change Strategy. 
This strategy sets out a routemap to demonstrate the councils commitment with options
identiﬁed setting out our transition plans within it. The strategy will set out clear objectives; 
Outline the earliest opportunity that its ﬂeet can be zero
emission for each vehicle class
Set out the approach to improve charging infrastructure and
identify possible renewable energy source options
Establish a proposed timeline for this transition whilst meeting
SG targets
Identify separate themes as part of this transition with focus on
vehicles, infrastructure and fuel 
Detail the capital investment projected to meet this ambitious
transition
1
2
3
4
5
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1. Current Fleet Status
1.1 At present, the council’s existing ﬂeet contains a total of 47 electric vehicles which
represents around 9% of the registered ﬂeet. These vehicles have been well
received by Council staﬀ and the wider community. A further 7 electric vehicles are
on order. In addition a number of our plant; strimmers, blowers and breakers have
been replaced with battery powered alternatives. This early and committed
ambition to vehicle transition has put the Council in a strong position to ensure
continued compliance with government targets on a net zero approach. It is
planned to continue with the current 10 year capital replacement programme to
enable the Council to remain on target, identify challenges and ensuring the
adoption of zero-emission ﬂeet vehicles meet current national policy
commitments.
1.2 The current annual Vehicle and Plant replacement capital budget is £3.53m.
Migration to a zero-emission ﬂeet is going to be a complex process which will take
a number of years. Whilst good progress has been made it is evident that issues
such as supply chain pressures and price inﬂation are extending the lead times for
vehicles and infrastructure. Many manufacturers are still at the prototype stage,
and this makes whole life costing, including estimating residual value of vehicles,
diﬃcult to predict.
1.3 There are 525 registered vehicles in our main operational ﬂeet, dominated by light
commercial vehicles with medium vans being the largest vehicle segment (44%).
The remainder of the ﬂeet consists of pool cars (21%), heavy goods vehicles
dominated by 3 axle rigid trucks (17%), buses (7%) and the remainder are tractors
and heavy plant (11%), which is highlighted in Table 1 below;
Table 1: Current ﬂeet distribution
Zero Emission Fleet Replacement Strategy DRAFT 3
Light/
Medium
Commercial
Vehicles
Buses3 Axle Rigid
Trucks
Pool Cars
44% 7%17%21%
Tractors
and Heavy
Plant
11%
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1.4 The council’s vehicle and plant ﬂeet are grouped into classes associated with the size
and type of vehicle. Table 2 below shows the classes and the emissions associated
with those classes based on fuel consumption averaged across each vehicle class. 
Table 2: Moray Council annual vehicle CO2 
emissions by vehicle type (class).  
Zero Emission Fleet Replacement Strategy DRAFT4
Standard 
Bus 
Max 17 (4)
1
Tractors 
over 20k (6)
5
Jetty 
& Gully
Emptier (1)
7
Library &
Community
(1)
8
Ground
Maintenance
over £20k (7)
12
Agrnd Maint
to £20k (12)
21
Bulk Loader
(6)
26
Large
Bus/Coach (5)
53
V, T & Tip
3,501kg -
7,500kg (14)
84
Articulated
Truck (3)
113
Sweepers
over 
12,000kg (6)
121
Tractors and
Shovels (43)
128
V, T & Tip 
7,501kg - 
18,000kg (19)
162
V, T & Tip over
18,000kg (20)
337
Trucks & Tip to
3,500kg (86)
308
RCV - 2 Axle (9)
188
RCV - 3 Axle 
with BL (21)
689
Med Bus and
Welfare (43)
253
Vans 1701 to
3,500kg (83)
276
Car & Van up to
1,700kg (180)
339
Heavy 
Plant (6)
4
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2. Zero Emissions Fleet Replacement Strategy 
2.1 Fleet Strategy is very much focussed on supporting front line Services as the
council transitions from petrol/diesel vehicles and plant machinery to a zero-
emission ﬂeet. The ﬂeet plays a vitally important role in providing frontline services
to the residents of Moray and this must be done in a cost eﬀective, eﬃcient, and
environmentally friendly way. 
2.2 Given the wide range of vehicles in operation, at this moment in time there is not
one single technological solution to reduce the council’s carbon footprint and
some technologies are not yet considered mainstream solutions. All the current
available technology has been considered in our proposed strategy. The hardest
task for ﬂeet decarbonisation relates to the larger/heavy duty vehicles. 
2.3 The Council’s ﬂeet services management team have developed a proposed
strategy with key and separate themes to aid our transition to net zero. This is
outlined in Table 3 below. 
Zero Emission Fleet Replacement Strategy DRAFT 5Page 21

Page 22

Table 3: Fleet management strategy 
Zero Emission Fleet Replacement Strategy DRAFT6
Arrange in house training for
vehicle technicians
Continue to purchase suitable
small ZEV when due for
replacement
Allow for the ZEV market to
mature
Replace larger type vehicles with
low emission fossil fuel
Undertake trials of suitable
EV/hydrogen larger vehicles
when available 
Review infrastructure as part of
depot/buildings review
Engage with DNOs to map out
future needs
Continue with small scale
installation of EV charging
infrastructure 
Consider HVO as a short term
option
Monitor market for hydrogen
opportunities
Visit other LAs/Partners with
hydrogen in situ 
Development of ﬂeet
decarbonisation working group
to bring together the separate
alternative fuels and strategies
currently being developed by
separate teams
Identify capital investment
required to move to ZEV ﬂeet
Secure capital funding
commitment
Continued communications with
all stakeholders
Report to council on progress
Aim to have 100% ZEV
small cars/fewer diesel
vans on ﬂeet
Undertake trials of
suitable EV/hydrogen
vehicles when available
Review overall vehicle
ﬂeet with Services across
the Council with a view to
reduce vehicle numbers
subject to operational
needs
Monitor market for
specialist ﬂeet availability
such as JCBs, loaders 
Engage with DNOs to
map out future needs
Provide appropriate
charging infrastructure at
identiﬁed
depots/buildings to
suitably manage
transition 
Monitor market for
hydrogen opportunities
and work with strategic
fuel partners to develop
suitable infrastructure 
Consider partnership
opportunities
All ﬂeet technicians to
have appropriate
EV/alternative fuel
training
Report to council on
progress
100% ZEV for
small vehicles
Aim to replace
large fossil fuel
vehicles with ZEV
at closest life
cycle replacement
point leading up
to 2040 
Infrastructure in
place at identiﬁed
depots/buildings
to ensure
charging/refuel
capacity to run
our ZEV ﬂeet 
Hydrogen fuel
infrastructure in
place to
complement EV
infrastructure to
allow capability to
run ﬂeet from
diﬀerent types 
Report to council
on progress
Aim to have all
fossil fuel vehicles
to be phased out
and ZEV ﬂeet
equivalent
infrastructure in
place
Demonstrate our
commitment to
meet ambitious
SG targets
VEHICLES
INFRASTRUCTURE
FUEL
OTHER
2024 - 2027 - 3 Year Plan By 2030 Vision by 2040
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2.4 To meet the challenges of addressing our strategy, both the Energy Saving Trust
(EST) and Jacobs consultants have assisted in the development and acted as a
sense check to the approaches being proposed. This has involved considerations
of our current ﬂeet and infrastructure and to oﬀer technical advice on the broad
timing and sequencing of the Council’s continued move to a zero emissions ﬂeet. 
2.5 These independent reviews also identiﬁed that the Council continues to focus our
transition eﬀorts on smaller and medium size vehicles (Classes 1 & 2) which we
have already started to adopt. This provides a signiﬁcant impact in terms of
number of vehicles to be transitioned, as 220 vehicles are within these classes.
These can be replaced with limited impact on day-to-day operations. 
2.6 In summary, it will be very diﬃcult at this time to predict with certainty the exact
make up of our vehicle ﬂeet by 2040, due to the number of moving variables such
as fuel costs, availability of vehicles, maturity of markets, and technological
changes. 
2.7 Our immediate short-term actions are summarised in timeline chart overleaf which
are focused on developing the Ashgrove site, continuing to install additional EV
charging points at the outer district sites, engaging with suitable trials as and when
available and considering alternative fuels outlined in 
section 5 below for short term gains. This will
allow the Council to move forward the
decarbonisation of its ﬂeet while
constantly reviewing and
updating the strategy to
reﬂect growing certainty
and more obvious
paths forward.
Zero Emission Fleet Replacement Strategy DRAFT 7Page 23

Page 24

Zero Emission Fleet Replacement Strategy DRAFT8
Continue to purchase small ZEV Review as part
of depot review
Engage with
DNOs
Small scale
installation of
infrastructure
to continue
Alternative Green
Hub solutions
installed at
Ashgrove Depot
Hydrogen/Other
fuel types
considered
Green Hub
introduced at outer
satellite depots
Hydrogen refuelling
points in site
Trial suitable EV/Hydrogen larger type
vehicles when available
Aim to be 100% ZEV for
small vehicles and meet
SG targets
Aim to reduce large vehicle
ﬂeet by 5%
Aim to replace large fossil fuel
vehicles with ZEV replacement at
closest lifecycle replacement point 
100% ZEV for small vehicles
BY
2027
BY
2040
Scottish Government
Net Zero Targets
VEHICLES INFRASTRUCTURE
BY
2030
Page 24

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3. Vehicles 
3.1 The maturity of the ZEV market continues to be an issue, but whilst saying that, we
are aware the market is poised for signiﬁcant growth. At the time of writing this
report, there are still not suﬃcient numbers of vehicles on the market and certain
themes of vehicles are not yet available. Table 4 below outlines our short term 3
year plan against vehicles theme from our overall ﬂeet strategy 
Table 4: Vehicle - 3 year plan 
3.2 The electric vehicles that are on the market in some vehicle types have insuﬃcient
range and payload to undertake their daily duties within a normal working day and
would require recharging part way through which would impact on service
delivery. 
Zero Emission Fleet Replacement Strategy DRAFT 9
Continue to purchase suitable
ZEV for cars and light vehicles
when due for replacement
Continue to replace larger type
vehicles with low emission until
2028 & end replacement
lifespan of larger vehicles
Develop a replacement plan for
large vehicle replacements due
after 2028
Undertake trials of suitable
EV/hydrogen vehicles when
available
Continue to monitor ZEV
options for larger type
vehicles/specialist vehicles
Aim to have fewer diesel
cars/vans on ﬂeet
Review overall vehicle ﬂeet with
Services across the Council
Aim to reduce overall ﬂeet
Monitor market for specialist
ﬂeet availability
Q4
2025
Q3
2025
Q2
2025
Q1
2025
Q4
2024
Q3
2024
Q2
2024
Q1
2024
Q4
2023
Q3
2023
Year 1 Year 2 Year 3Task
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3.3 The high upfront cost of purchasing ZEVs and the additional cost of project
management for installing charging infrastructure and ongoing management of
the infrastructure needs to be addressed in more detail, and there will be an
associated capital cost required for any types of infrastructure required. At the
present time whilst oﬃcers can report that the cost of EV cars has signiﬁcantly
reduced over the last few years, the cost for large electric and hydrogen vehicles is
still in the region of 2 to 3 times more expensive than the current comparative
vehicle in our existing ﬂeet, such as buses, refuse lorries, gritting vehicles etc.
There are also widely reported concerns from the vehicle industry that many
vehicle suppliers have not begun to consider ZEV alternatives for specialist and
bespoke vehicles. 
3.4 Consideration will be made to migrate the council’s larger HDVs to hydrogen but
again this is not straightforward. Until hydrogen vehicles are available in more
commercial quantities the cost will remain high, likewise the production and
distribution of hydrogen is of equal concern. Industry experts such as EST predict
that it will be after 2025 and closer to 2030, before manufacturers are producing
vehicles in any reasonable quantity. Large hydrogen vehicles are in the region of 4
times the cost of diesel-powered alternatives. 
3.5 It is planned to continue with appropriate vehicle trials when they become
available, focused on EV and hydrogen for the larger vehicle type replacements.
The outcome of these trials will be shared with the climate change board and
regular updates will be provided from the decarbonisation working group that is
proposed to be established. Lessons learned will form the basis of any
changes/updates to our overall ZEV strategy. 
3.6 Table 5 below shows the proposed priority of vehicle types to replace based on
availability and suitability of vehicles. This proposal is in line with the SG target to
replace all ICE cars from council ﬂeets by 2025 and to replace all LCV up to 3.5t with
ZEV at their normal replacement age. However, this is subject to available
infrastructure, on-going depot review, available resources and capital funding. It
should be noted that the target will not be achievable without considerable
support in these areas.  
Zero Emission Fleet Replacement Strategy DRAFT10 Page 26

Page 27

Zero Emission Fleet Replacement Strategy DRAFT 11
Vehicle Class          
CAR &
VAN
UP TO
1700
VANS 1701 TO
3500
M
ED
BUS &
W
ELFARE
LARGE BUS/COACH
STANDARD
BUS M
AX 17
TRUCKS &
TIP TO
3500
V,T&TIP 3501 - 7500
LIBRARY &
COM
M
UNITY
V,T&TIP OVER 18000
RCV 3 AXLE W
ITH
BL
V,T&TIP 7501 - 18000
RCV - 2 AXLE
SW
EEPERS OVER 12000
ARTICULATED
TRUCK
JETTER &
GULLY EM
PTY
TRACTOR &
SHOVELS
GRND
M
AINT TO
£20K
HEAVY PLANT
GRND
M
AINT OVER £20K
TRACTORS OVER 20K
BULK LOADER
Vehicle
Class     
1 2 8 14 7 3 4 20 6 11 5 19 9 21 17 24 25A
25C
25B
24A
23 
Total 
178
74 30 5 4 73 14 1 18 15 15 9 5 2 1 32 13 8 6 6 4 
Annual Fuel
Consum
ption
(for Group)
Litres PA    
135,119
110,132
100,869
21,035
478
122,666
33,471
3,314
134,268
274,369
64,473
74,825
48,401
44,989
2,634
51,072
8,261
1,720
4,766
1,962
10,190
1,249,014 
Average
litres per
vehicle in
group PA 
759
1488
3362
4207
120
1680
2391
3314
7459
18291
4298
8314
9680
22495
2634
1596
635
215
794
327
2548 
Co2
Per
litre     
2.51
2.51
2.51
2.51
2.51
2.51
2.51
2.51
2.51
2.51
2.51
2.51
2.51
2.51
2.51
2.51
2.51
2.51
2.51
2.51
2.51
Total
class  
tonnes
CO2 PA    
339
276
253
53 1 308
84 8 337
689
162
188
121
113
7 128
21 4 12 5 26 3,135
kg CO2
average
per veh
PA     1905.33
3735.56
8439.37
10559.57
299.94
4217.69
6000.87
8318.14
18722.93
45911.08
10788.48
20867.86
24297.30
56461.19
6611.34
4005.96
1595.01
539.65
1993.78
820.77
6394.22  
Electric
Cost %
increase 
over Diesel
2020 
40 67 214
323
250
47 50 146
150
125
125
166
157
203
130
206
200
200
300
300
300 
Indicative
cost Diesel
version   
£22,500
£30,000
£75,000
£140,000
£30,000
£34,000
£60,000
£150,000
£160,000
£200,000
£85,000
£150,000
£175,000
£99,500
£195,000
£98,000
£18,000
£95,000
£25,000
£90,000
£150,000
W
hole Fleet
indicative
Diesel
replacem
ent
value / Cost   
£4,005,000
£2,220,000
£2,250,000
£700,000
£120,000
£2,482,000
£840,000
£150,000
£2,880,000
£3,000,000
£1,275,000
£1,350,000
£875,000
£199,000
£195,000
£3,136,000
£234,000
£760,000
£150,000
£540,000
£600,000
£27,961,000
Fleet Value
Indicative
cost
Electric
version   
£31,500
£50,000
£235,000
£452,000
£75,000
£50,000
£90,000
£370,000
£400,000
£450,000
£191,000
£400,000
£450,000
£300,000
£450,000
£300,000
£54,000
£285,000
£75,000
£270,000
£450,000
W
hole Fleet
indicative EV
purchase 
cost  
£5,607,000
£3,700,000
£7,050,000
£2,260,000
£300,000
£3,650,000
£1,260,000
£370,000
£7,200,000
£6,750,000
£2,865,000
£3,600,000
£2,250,000
£600,000
£450,000
£9,600,000
£702,000
£2,280,000
£450,000
£1,620,000
£1,800,000
£64,364,000
EV
Fleet Value
Available now     
Lim
ited Availability
Very Low
Availability
Rare / Trial phase
Not widely available / developm
ent phase
Table 5: Proposed priority of vehicle types to replace based on availability & suitability of vehicles
Page 27

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4. Charging Infrastructure 
4.1 Table 6 below outlines our short term 3 year plan for our infrastructure theme
from our overall ﬂeet strategy. 
Zero Emission Fleet Replacement Strategy DRAFT12
Lossiemouth
Grounds Depot, Shore Street
1 x Twin head post, 22kW
Buckie
Grounds Depot, 14 March
Road
6 x Twin head post, 22kW
1 x Single head 22kw 
Buckie Access Point
1 x Twin head post, 22kW
Elgin
Ashgrove
1 x Tethered 50kW CCS +
CHAdeMO Rapid + 43kW
Type 2
6 x Twin head post, 22kW
15 x Single head 22kw 
Moray Council Annexe
2 x Twin head post, 22kW 
Grounds Depot, Cooper Park
3 x Single head 22kw
Mosstodloch
Housing Depot
5 x Twin head post, 22kW
Keith
Roads Depot, Bridge Street
6 x Twin head post, 22kW 
Keith Resource Centre
12 x Dual head post 22KW
BALANCED
© Crown copyright [and database rights] 2023 OS AC0000806936 Moray Council
Page 28

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Zero Emission Fleet Replacement Strategy DRAFT 13
4.2 Many of our current depots and buildings are likely to have reached their electrical
capacity. Recent infrastructure works to provide additional EV charging at Ashgrove
Depot have now taken up most of the available electrical capacity. 
4.3 Electricity infrastructure to support charging of a large number of vehicles needs to
be thoroughly assessed in order to support future phases of ﬂeet replacement. A
partial transition is recommended to minimise any risks associated with day-to-day
operations of electric ﬂeet and allow the Council to develop its understanding of
the implications. 
4.4 It is proposed that Ashgrove Depot is developed as a ‘Green hub/depot’, with
solar/green energy production. On site we have extensive south facing roofs which
could generate income as the EV transition progresses, facilitate battery storage &
future vehicle charging. This would also include options for hydrogen storage &
workshop facilities to be appraised for suitability. Following initial site
investigations undertaken it has been suggested that the Ashgrove green hub
proposal presents an opportunity for signiﬁcant lifetime energy savings in the
order of £500k. It is proposed that this will be considered alongside our
infrastructure options as part of the on-going wider depot review. 
4.5 Once completed and reviewed, this model is proposed to be rolled out to other
larger depots such as Keith and Buckie. Concurrently small-scale pool car
infrastructure can be developed where feasible such as more isolated oﬃces. 
4.6 The advantages of transition by depot are that it allows for learning from the
Ashgrove upgrade to be built in to the remaining depot upgrades which will allow a
cost appraisal and a more focussed approach, Upgrading Ashgrove Depot to a
‘Green hub/Depot’ would be a ‘ﬂagship’ project and there is opportunity to
generate income through green energy production in the interim & make savings
in the future. This approach will also oﬀset potential DNO upgrade costs at
Ashgrove and potentially at other depots. The disadvantages are that not all
vehicle types will be available at present although as the project develops, they will
become available, and the depot improvements will allow these vehicles to be
serviced and maintained as they come on stream. 
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4.7 It is widely known within the industry that the lead time for the installation of
appropriate charging infrastructure is a major factor and a certain level of
contingency needs to be allowed for. Applications for electricity grid connections
have quadrupled in the last 4 years and requesting estimates for proposed
upgrades/new infrastructure from the council’s electrical DNO is proving diﬃcult
due to the challenges and demand they are facing on their network. These issues
therefore make a good case to further explore potential levels of battery storage as
suggested above and support the alternative green hub proposals for Ashgrove
depot. 
4.8 It is suggested as a general principle that electric vehicles will have 1 charge socket
each and operate on a ‘Back-to-Base’ system so that vehicles charge overnight and,
in most scenarios, can achieve their duty cycle on one charge. Load balancing will
be adopted to reduce the load on a charge point that has two or more sockets, this
is where the charge point manages the load across the sockets or site overnight to
reduce peak power draw and allows all vehicle’s to be charged. 
4.9 The installation project for infrastructure is fundamental to the transition to
electric vehicles and net zero, the transition to ZEVs cannot progress at each phase
until the infrastructure is in place. It is proposed to create a working group with
oﬃcers from Fleet Services, Corporate Property and Climate Change team to
collaboratively deliver infrastructure across our buildings and depots, in line with
the Council’s depot strategy. 
4.10 Resources may also be required to facilitate growth in managing the electric
charging infrastructure and associated back oﬃce systems. 
Zero Emission Fleet Replacement Strategy DRAFT14 Page 30

Page 31

5. Fuel 
5.1 There are currently a number of diﬀerent alternative fuels outwith electricity. In the
short term it is proposed to explore in more detail the beneﬁts and risks in
considering other fuel types. 
5.2 Oﬃcers within the Fleet team have participated in a number of working groups
and have developed good relationships with other local authorities who are
currently progressing with ZEV alternative vehicle trials. 
5.3 It is proposed that a report will be taken through the climate change board to seek
any agreement in pursuing trials with alternative fuels and type before any wider
implementation. 
5.4 A brief overview of the alternative fuel types are detailed overleaf.
Zero Emission Fleet Replacement Strategy DRAFT 15Page 31

Page 32

Hydrogen               
At present, hydrogen fuel cell vehicles albeit fully zero emission, are more expensive in
terms of capital and fuel cost than both their diesel and battery electric counterparts,
there are also few hydrogen vehicles commercially available on the market across the
UK. As such, the business case for purchasing hydrogen vehicles currently remains weak.
Although there are commercial hydrogen cars and light vans available, the market for
electric cars is more developed and oﬀers a more cost-eﬀective way to reduce
emissions. 
For heavy goods vehicles and large vehicles, it is likely that the technology will allow for a
combination of electric and either hydrogen or biogas vehicles to be most suitable to the
needs of a ﬂeet which covers both rural and urban areas and both longer distance and
shorter back-to-base operations. 
It is likely that it will be after 2025 before hydrogen is produced in large enough
quantities to become a reliable large-scale alternative to diesel and possibly closer to
2030 before large hydrogen vehicles are produced in commercial numbers for the cost
of these reduce. 
However, in order to get to the stage where hydrogen would be a viable alternative for
the ﬂeet it would be necessary to put in place small scale pilot projects to support the
development of refuelling infrastructure and training of vehicle technicians. Pilots could
include retroﬁtting hydrogen onto diesel vehicles to allow dual fuel hydrogen/diesel
vehicles as a bridging technology until the market for full hydrogen fuel cell vehicles
becomes more developed. 
The Council is looking at external funding opportunities that would be required for such
a pilot to progress. Partnership opportunities with Aberdeen City Council and
Aberdeenshire Council are being explored. 
In addition, both the Ministry of Defence (MOD) and National Health Service (NHS) are
also interested in exploring hydrogen for their respective ﬂeet vehicles and there may be
partnership opportunities for future development.
Zero Emission Fleet Replacement Strategy DRAFT16 Page 32

Page 33

Biogas 
Biogas is created from distillery waste and is already used as a low carbon fuel for
delivery vehicles within the distillery industry. The anaerobic digestion technology to
convert such waste into fuel is already operating in Moray. Trialling biogas in partnership
with the whisky industry is an opportunity for the Council to support the expansion of
biogas as a vehicle fuel. As these technologies are scaled up and biogas is more
available, this would be a reliable source of local low carbon fuel. 
Using biogas as a vehicle fuel is not a new technology and the cost of biogas vehicles
compare favourably with electric vehicles. As with hydrogen, it would be necessary to
put in place small scale pilot projects to support the development of refuelling
infrastructure and associated technical expertise. Such a pilot should be centred round
developing training opportunities for mechanics and drivers, and developing expertise
and conﬁdence on rolling out biogas vehicles as and when appropriate. 
Zero Emission Fleet Replacement Strategy DRAFT 17Page 33

Page 34

HVO
Hydrotreated Vegetable Oil (HVO) is produced from a plant based, renewable source
which produces up to 90% less CO2 at the tailpipe and less (or possibly equal) Nitrogen
Oxide (NOx). It is a direct replacement for the current fossil fuel diesel which we are all
familiar with so no changes are required on any part of the infrastructure or vehicle.
The engine’s combustion is slightly hotter and the fuel gives a very small increase in
power due to the higher cetane levels, however, other than a change in fuel eﬃciency
(plus or minus) the engine is not aﬀected by the fuel in any way, and the cooling system
can handle the slight increase in combustion temperature without concern.
HVO has received a lot of attention due to the way in which it is produced. The
production process information is ambiguous at best, with many sources both for and
against the use of HVO pitching their ideas of how and where the raw material is
sourced. The main issue comes from the use of virgin palm oil and how this oil is
produced to supply the reﬁnement companies.
Currently Indonesia and Malaysia supply 34% and 11% (respectively) of oil to the HVO
industry, of which a portion is palm oil. HVO is usually 80% ‘other products’ such as fatty
distillates and waste organic material with only 20% virgin oil, of which palm oil is one
virgin oil product. Other oils are rape seed, sunﬂower oil, vegetable oil or soy bean oil,
etc. The growing of oil palm trees in Malaysia and Indonesia is adding to the
deforestation of ancient forests, threatening the habitats of many endangered species.
This poses the question of carbon outsourcing; the moving of the carbon issue to other
countries.
The use of this fuel may also be the interim solution until such time as alternate fuels
such as Electric or Hydrogen are able and available to be introduced.
Apart from cost there looks to be no major risks in adopting
the fuel. It is proposed to undertake further monitoring
of fuel price and availability, to enable further
research and cost beneﬁt analysis to be carried
out.
Fuels such as HVO have advantages as a
bridging technology in the short term but
do have a number of disadvantages. A
detailed report will be taken through
climate change board before any trials
of considering the use of alternative
fuels are undertaken.
Zero Emission Fleet Replacement Strategy DRAFT18 Page 34

Page 35

Zero Emission Fleet Replacement Strategy DRAFT 19
6. Fleet replacement lifecycle planning 
6.1 It is critical that the Council aims to operate vehicles to an optimum life which
considers vehicle reliability with age, the associated maintenance costs and
predicted residual values, with the aim of replacing vehicles before they increase
ﬁnancial liability through age, mileage, and depreciation. A modern ﬂeet also has
beneﬁts for employees, safety, and the Council’s image. 
6.2 By planning ﬂeet replacement, procurement requirements can be addressed early,
with opportunities to engage with the local market and secure manufacturers
‘build slots’ well in advance of when delivery is required. This also brings value in
large scale procurement exercises, to bring economies of scale and add social
value. 
6.3 Fleet management have taken time to review the current ﬂeet establishment to
ensure that the Council’s ﬂeet continues to be ﬁt for purpose, is aligned to the
Councils obligations to meet the SG targets and become net zero by 2040. It is
crucial that a long term and sustainable ﬁnancial plan is in place to ensure
successful delivery of the transition programme. 
6.4 it is therefore proposed that the Council’s Fleet Replacement Programme is
maintained to ensure an optimum operating age proﬁle of a maximum 7-year
proﬁle for LGV and cars and a 10 year proﬁle for HDV, mobile plant, and small
hand-held plant will continue to be assessed for replacement based on their
condition. This will minimise expensive repair costs and give an enhanced residual
value of the asset on replacement.   
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7. Capital Investment projections 
OPTION 1 – Enhanced Capital Spend
To meet ambitious SG targets and all fossil fuel vehicle types phased out by
2040 
7.1 As outlined earlier within this strategy, there is presently large cost disparity
between Internal Combustion Engine (ICE) powered and electric/hydrogen
alternatives for the larger heavy goods vehicles (HGV) and specialist vehicles. It is
suggested to meet in full the ambitious SG and council targets to be net zero is not
viable from a ﬁnancial and general risk perspective to purchase these as
electric/hydrogen until the market has matured, greater reliability can be ensured,
and economies of scale have led to a reduction in prices. 
7.2 The chart below highlights the capital investment and required number of ZEV
vehicles to be purchased each year between now and 2040 to achieve full
compliance with the SG target on phasing out fossil fuel vehicles by 2040. 
7.3 It is suggested that there is signiﬁcant ﬁnancial risk with seeking full transition by
2040. It is still very much emerging technology, with many of the larger vehicle
types not wholly available and tested. The chart above suggests that at current
prices that a capital investment of £6m per year would be required and may not be
the best use of investment taking into account that the Council would be disposing
of many of its fossil fuel vehicles before they have reached their optimum life term
and age proﬁle.
Zero Emission Fleet Replacement Strategy DRAFT20 Page 36

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7.4 The provision of suitable charging infrastructure, especially in the immediate short
term, will be challenging to have in place and fully operational. Charging
Infrastructure is very much reliant on grid capacity and engagement should be
undertaken with DNOs soon to establish a way forward.
7.5 It must be clear that projections are made at today’s vehicle replacement prices
and it is highly likely that these projections will change as the market matures and
is subject to the future availability of vehicle types.
OPTION 2 – Steady State Capital Spend
Phased Fleet replacement lifecycle planning approach
7.6 Option 2, would see the council’s overall capital investment at £60m over the next
17 years and allow us to have 353 vehicles at zero emission. This would not meet
the ambitious SG targets currently in place but would demonstrate the Council’s
commitment which would be aﬀordable in line with current capital spend on ﬂeet.
7.7 There are still risks associated with seeking a high percentage of electric vehicles as
it is still developing technology. However, the Council has taken a strategic
approach to determine it seeks electric options where there is a clear and
established market, for example in cars and commercial vans.
7.8 This proposal allows the Council to continue with his current lifecycle planning
approach as set out within the Council’s 10 year capital planning process. It will
allow the Council to continue to operate vehicles to an optimum life which
considers vehicle reliability with age, the associated maintenance costs and
predicted residual values, with the aim of replacing vehicles before they increase
ﬁnancial liability through age, mileage, and depreciation.
7.9 During this transitional approach the Council will continue with the development of
internal staﬀ to be fully trained to maintain these alternative fuelled vehicles from
our existing workshop. This will mean that there is suﬃcient resilience within our
operations to adapt to new technology and reduced need to rely on third parties
for support.
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7.10 The Council will continue to trial new alternative technology to ensure knowledge
and facilities are developed appropriately. 
7.11 The chart below sets out our current capital ﬂeet replacement budget to continue
to replace fossil fuel type vehicles. In addition, the capital investment required to
achieve a blend of suitable ZEV equivalents on an achievable phased approach is
identiﬁed which considers all of the external and internal challenges faced with
ZEV transition. 
7.12 This option above represents a blend of priorities which meets the initial
transitional ambition tied to continuing with the optimum lifecycle planning capital
budget allocation. The capital investment is relatively ﬁxed each year during the
ﬁxed period and allows for a manageable smoother transition than the wholesale
replacement as outlined in option 1 above. 
7.13 It should be noted that EV infrastructure will still be a barrier to this transition and
must be urgently addressed in line with the depot review and hybrid workstyles if
transition to EV is to succeed. Further considerations need to be made in relation
to home charging for housing and other vehicles that are currently taken home
overnight.
Zero Emission Fleet Replacement Strategy DRAFT22 Page 38

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OPTION 3 – Reduced Capital Spend
Phased Fleet replacement lifecycle planning approach with reduced capital
investment 
7.14 The Council continues to face a very diﬃcult ﬁnancial situation with having to ﬁnd
savings over 2024/25 and 2025/26 of approximately £13.5 million.  It is estimated
that £10m of savings will need to be made in 2024/25 taking account of savings that
have already been identiﬁed. This means that the Council has no choice but to make
signiﬁcant changes to the services that are delivered, and require to continue to
reduce spend. 
7.15 One proposal put forward is to introduce a capital cap within the current 10 year
capital plan. The chart below highlights with a reduced capital investment the
number of ZEV vehicles that would be purchased and how this would impact the
transition in becoming net zero and meeting the SG targets currently in place. 
7.16 Adoption of this proposal will eﬀectively halt the transition to EV and in addition will
extend the age proﬁle of the ﬂeet. Extending the age proﬁle of the ﬂeet will have the
following consequences, some of which are directly opposed to SG targets; 
Increased maintenance costs
Increased downtime
Increased labour time (- this is expensive  and in short supply)
Potential for major component failure of assets leading to hire costs
Increased carbon emissions
Poor fuel economy
Poor public image 
7.17 To summarise the above options; In order to fully meet the SG targets and have all
the Councils ﬂeet ZEV by 2040 would cost the Council over £107m. This is a £47m
additional capital investment and would result in replacing fossil vehicles well
before their optimum lifetime. There is also signiﬁcant risk in not having the
appropriate charging infrastructure in place to cope with such wholesale vehicle
replacement.
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8. Potential Savings 
8.1 The basis of our proposed ZEV strategy is to comply with the government’s aims.
Given more optimistic expectations of when larger vehicles are available as
outlined in this report, our approach fully complies with SG ambitions. 
8.2 The chart below outlines the general downward trend of the operational costs
associated with this replacement scheme. In our assumptions, a switch from an ICE
vehicle to an equivalent electric vehicle comes with some cost savings. One saving
noted within the cost model is the saving on diesel. Even with increasing electricity
prices charging an electric vehicle is noticeably less than the cost of diesel. 
8.3 An additional beneﬁt of this transition to electric is the carbon emissions saved
from the day-to-day operations of the current ICE ﬂeet. The chart below outlines
the approximate savings (tCO2) per year that our proposal is forecast to provide.
Zero Emission Fleet Replacement Strategy DRAFT24 Page 40

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REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRCUTURE
SERVICES COMMITTEE ON 30 APRIL 2024 
SUBJECT: FLOOD RISK MANAGEMENT AND BRIDGES CAPITAL AND
REVENUE BUDGETS 2024/25 
BY:  DEPUTE CHIEF EXECUTIVE (ECONOMY, ENVIRONMENT AND
FINANCE) 
1. REASON FOR REPORT 
1.1 To inform Committee of the Flood Risk Management Schedule of Clearance
and Repair for 2024/25. 
1.2 To inform Committee of the Bridge Maintenance Schedule of Works and the
programme of Capital works for Bridges for 2024/25. 
1.3 This report is submitted to Committee in terms of Section III (A) (2) of the
Council’s Scheme of Administration relating to the consideration of Capital
and Revenue Budgets and long term financial plans. 
2. RECOMMENDATION 
2.1 It is recommended that Committee agree: 
(i) the Flood Risk Management Schedule of Clearance and Repair for
2024/25; 
(ii) the proposed Schedules of Road Bridge Revenue and Capital
Maintenance Works and Non-network Bridge Capital Maintenance
Works to be undertaken for 2024/25; and 
(iii) to delegate authority to the Head of Environmental and Commercial
Services to apply for grant funding as set out in paragraph 3.23 of
this report. 
3. BACKGROUND 
Flood Risk Management (FRM)
3.1 The Flood Risk Management (Scotland) Act 2009 (the Act) requires the
Council to deliver the Actions within the Local Flood Risk Management Plans
for Findhorn, Nairn and Speyside, and North East Local Plan Districts. 
Item 13b)
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3.2 The Act places upon the Council a duty to assess relevant bodies of water
(other than canals) in its area, for the purpose of ascertaining whether the
condition of any such body of water gives rise to a risk of flooding. Where a
water body gives rise to flood risk and the Council considers clearance and
repair works would substantially reduce that risk, the Council must prepare a
schedule of those works and carry them out. 
3.3 During 2023/2024 work has been on going to complete the 2023/2024
Clearance and Repair Schedule. There was no under or over spend on the
FRM Revenue budget for 2023/24. The continued high cost of construction
and flooding events at Aberlour have impacted on delivery of the Clearance
and Repair Schedule. Tyock Culvert repairs and purchase of specialist
machinery to clear the Tyock Burn will now be undertaken in 2024/2025. 
3.4 General maintenance of the Council flood schemes has continued throughout
the year.  Work has also been undertaken to improve access to the Tyock
Burn at the confluence with the Linkwood Burn and review flood scheme
models to assess the impact climate change has on the flood schemes at
Elgin. Assessment of the Elgin model is ongoing and will be completed in
2023/2024. To understand the significant surface water flooding in Aberlour, a
hydraulic model has been completed, which will allow future events to be
modelled and possible mitigation designed. 
3.5 The 2024/2025 Flood Risk Management Annual revenue Budget is £310,000.
The budget does not include for damage to assets or any clearance and
repairs following a flood event. If an event occurs this will be considered as a
budget pressure. 
3.6 The proposed Schedule for Clearance and Repair for 2024/2025 is provided
in Appendix 1. The Schedule contains recurrent works, reactive works as well
as planned works, together with routine survey and monitoring works.  The
Council’s Asset Management System provides a risk based system to identify
potential flooding issues. Reports from other sources continue to inform the
production of the Schedule. The Schedule will be published on the Council’s
website, subject to agreement by this Committee. 
3.7 The Schedule includes the maintenance of the flood schemes in accordance
with their Operation and Maintenance Manuals. This covers schemes in
Aberlour, Rothes, Elgin, Forres, Dallas, Newmill and Lhanbryde. 
3.8 Key projects for the 2024/2025 year will be: - 
• Update of the Flood Models for schemes at Arradoul, Longmorn and
Newmill, which will include the impact of changes in Climate Change
predictions.
• Tyock Burn culvert repair.
• Trash screen review, clearance and repair.
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Flood Risk Management Capital
3.9 Significant maintenance work to replace life expired elements and remove
trees from flood plains at the Elgin, Forres Burn of Mosset and Forres
Findhorn Flood Schemes at a total cost of £348,000 was programmed for
2023/2024. Works have been completed at Lhanbryde, Newmill, Chapelton
and Tyock Burn.  Works at Elgin and Longmorn have been delayed due to
weather conditions and emergency works to alleviate flooding at Whistlestop
Woods (Garmouth).  A carry forward of £130,000 will be requested on 28
June 2024, to undertake the delayed works.   
3.10 Capital works for 24/25 will focus on coastal protection.  This work will include
assessment of coastal defences at Findhorn, Cullen and Lossiemouth, which
will identify any remedial works required. The total cost of this work is
estimated at £74,266, which is the allocation Moray Council has received from
the Coastal Change Adaptation Capital Grant. 
Road Bridges Revenue
3.11 Under the Roads Scotland Act 1984, Moray Council has a duty to manage
and maintain the safety of the road network in Moray.  Moray Council’s road
network includes 376 bridges and 160 retaining walls. 
3.12 In 2023/2024 repairs were carried out at Aultahuish Bridge, C13E/20,
Knockach Bridge, A940/40 Reiket Lane Railway Bridge, C40E/10 and the
Hopeman to Burghead Old Railway Line 2, NN121 along with emergency
repairs to Sanquhar Footbridge At a total cost of £41,145. Principal
Inspections using an underbridge unit were undertaken at a cost of £10,288. 
Site investigation for Poolflasgan and Lee bridges has been undertaken at a
cost of £25,268, to inform structural assessments in 24/25.  Topographical
surveys at Sanquhar Footbridge and Blackhills Culvert, U129E/20 have been
undertaken at a cost of £3,300. There is no under or overspend predicted for
the bridges revenue budget. 
3.13 The bridges revenue budget for 2024/2025 is £130,000. £34.000 will be spent
on structural assessments at Lee Bridge, U173E/10 in Forres and Poolflasgan
Bridge, B9102/60 in Knockando.  £50,000 will be allocated for unplanned
repairs such as non-recoverable traffic collision damage. The remaining
revenue budget allows for Principal Inspections and masonry repairs to be
undertaken. 
3.14 Drumin Bridge C60H/10 was closed this year due to scour under the pier.
When the watercourse is safe to enter, further investigation will be carried out
to determine the extent of the scour and the potential for repair.  Any
significant works required to reopen this bridge will be prioritised in line with
the council’s Bridge Maintenance Prioritisation Policy. 
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Road Bridges Capital
3.15 Capital bridge refurbishment schemes were completed during 2023-24 at
Bridge of Slateford and Kirkhill Drive.  A new bearing greaser system has
been installed at Boat O’Brig.  Planned works for New Bishopmill Bridge have
been deferred to allow repairs to Viewmill Bridge to be progressed.  Design
work for Viewmill Bridge is complete, the contract has been awarded and
construction is programmed to begin in April 2024.   
3.16 In May 2023 members agreed the Bridge Maintenance Prioritisation Policy,
which sets out the criteria on which all future bridge maintenance works will be
prioritised (paragraph 12 of the minute refers).   
3.17 The bridges Capital Programme for 2024/25 includes delivery of Cloddach
Bridge replacement (Subject to approval of the business case by UK
Government), Auchriachan Bridge refurbishment and Blackhills Culvert
refurbishment at a total estimated cost of £4,762,145 (gross). New Bishopmill
Bridge, deferred to 2024/25 to progress works at Viewmill Bridge, will now be
deferred to 2025/26 to allow work on the replacement of Cloddach Bridge to
progress. 
3.18 The bridges Capital Programme for 2025/26 includes funding to replace the
deck on Arthurs Bridge.  This work will be subject to a feasibility study, which
is currently being developed and is programmed for completion end of April
2024.   
Non-Network Bridges Capital
3.19 Maintenance of the Council’s non network bridges, which consist of
footbridges and some small vehicular bridges, is funded through a capital
allocation of £50,000 per year.   
3.20 The budget for 2024/25 will be spent on repairs to the Marywell Bridge at a
cost of £50,000 (gross).   
3.21 A breakdown of the Capital projects for Road Bridges and Non-Network
Bridges is provided in Appendix 2. 
3.22 All Capital works will be monitored for slippage throughout 2024/25 through
the budget monitoring process with a view that the out-turn is within the net
capital budget of £4,647,000. 
3.23 In line with the Consultancy Team’s remit to promote Flood Risk Management
and maintain bridges to provide a safe road network there can be mid-year
opportunities to benefit from grant funding to deliver these priorities. The
deadlines often preclude submission of a report to the service committee. It is
requested that delegated authority is granted to the Head of Environmental
and Commercial Services to approve grant funding applications, where these
fit with clear ‘business as usual’ work priorities, and do not require any other
unbudgeted expenditure by the council.
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Harbours Infrastructure Capital
3.24 The works in the 2024/25 Harbour Works (net of slippage £183k)  are to carry
out repairs to Burghead Harbour, Cullen Harbour and Findochty Harbour. The
capital plan for harbours is based on inspections of the condition of the
Council’s six harbours and the first three years in the plan are based on
planned asset management arising from the most recent inspections. 
4. SUMMARY OF IMPLICATIONS 
(a) Corporate Plan and 10 Year Plan (Local Outcomes Improvement
Plan (LOIP))
”We leave a better environment for future generations.” 
“Our businesses and communities prosper.”. 
(b) Policy and Legal
Under the Flood Risk Management (Scotland) Act 2009, the Council has
a statutory duty to implement the Actions from the Local Flood Risk
Management Plans. The Council can do works not included in the Plans
that will manage flood risk, provided it does not affect the delivery of
those actions in the Plan. 
Bridge maintenance work is undertaken in accordance with the Council’s
duty to maintain a safe road network, under the Roads (Scotland) Act
1984 and in line with the Council’s Bridge Maintenance Prioritisation
Policy. 
(c) Financial implications
The proposed Capital and Revenue works as estimated are contained
within the Council’s budget for 2024/25. The net capital total for council
funded work (inclusive of slippage) is £4,830k plus £74k grant funding for
coastal adaptation (flood risk management budget area). 
No allowance has been made in the Flood Risk Management budget for
dealing with the consequence of exceptional rainfall/flood events. This
will be considered as a budget pressure, if such events arise. 
(d) Risk Implications
There are no risk implications as a result of this report other than to
recognise that flooding and coastal issues are unpredictable and the
items in the Schedule will be carried out in recognising this uncertainty. 
(e) Staffing Implications
There are no staffing implications associated with the recommendations
in this report. 
(f) Property
There are no property implications associated with the recommendations
in this report.
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(g) Equalities/Socio Economic Impact
There are no equalities/socio economic implications associated with the
recommendations in this report. 
(h) Climate Change and Biodiversity Impacts
During the design and implementation of Flood Risk Management works
we aim to increase biodiversity wherever practicable. 
Where a negative impact on climate change occurs as a result of the
work, we do we endeavour to mitigate this where possible.  This includes
sourcing materials from a sustainable source and re-using materials. 
(i) Consultations
Depute Chief Executive (Economy Environment and Finance), Head of
Environmental and Commercial Services, Chief Financial Officer, Legal
Services Manager, Equal Opportunities Officer and Committee Services
Officer (L Rowan) have been consulted and their comments incorporated
into the report. 
5. CONCLUSION 
5.1 The Council has a duty under the Act to implement Flood Risk
Management Plans, including clearance and repair of water bodies. The
proposed allocations in the 2024/25 Flood Risk Management Revenue
Budget take account of this duty. 
5.2 The Council has a duty under the Roads (Scotland) Act to maintain a 
safe road network.  The proposed allocations for 2024/25 Bridges 
Revenue and Capital Budget takes account of this duty, based as far as 
practicable, on a risk-based plan-led approach. 
Author of Report:  Debbie Halliday, Consultancy Manager 
Background Papers: 
Ref:    SPMAN-524642768-1058
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Appendix 1 
Flood Risk Management Revenue
Schedule of Clearance and Repair Works 2024/25
Location Improvement Works Description
Estimated Cost
(£)
Tyock Burn Tyock Burn - Culvert Maintenance £55,000
Newmill FAs Newmill FAS - Scheme Review and Model Update £7,500
Longmorn FAS Arradoul FAS - Scheme Review and Model Update £1,000
Arradoul FAS Longmorn FAS - Scheme Review and Model Update £1,000
Various Various - Surveys £5,000.00
Various Various - Upgrade Life Expired Equipment £10,000.00
Garmouth Garmouth - Instal Telemetry Equipment £7,500.00
Coastal Defence Portgordon - Seaweed Removal £3,000.00
Moray Wide Various - Trash Screen Review and Repair £20,000.00
Longmorn FAS Longmorn - Fence and Embankment Repairs £8,000.00
Coastal Defence Lossiemouth Sewall Repair £28,000.00 
Total £146,000   
Location Annual Maintenance Works Description
Estimated Cost
(£)
Various Reactive Works £13,000
Telemetry Telemetry Maintenance £5,000
Kingston Shingle Bank Survey Kingston £5,500
Forres FAS Shingle Bank Survey Findhorn £10,000
Longmorn FAS Longmorn FAS - Operation and Maintenance £400
Dallas FAS Dallas FAS - Operation and Maintenance £3,000
Forres FAS Findhorn and Pilmuir FAS - Operation and Maintenance £43,250
Aberlour FAS Aberlour FAS - Operation and Maintenance £1,500
Millbuies Reservoir Asset Maintenance, Operation and Maintenance £500
Rothes FAS Rothes FAS - Operation and Maintenance £4,900 
Tyock Burn - Inspection and Clearance £12,500
Elgin FAS Elgin FAS - Operation and Maintenance £34,500
Forres FAS Burn of Mosset FAS - Operation and Maintenance £10,000
Aerial Photos 6 Monthly aerial Photos £4,450
Newmill FAS Newmill FAS - Operation and Maintenance £7,500
Lhanbryde FAS Lhanbryde FAS - Operation and Maintenance £3,000
Community
Engagement  Community Engagement £5,000 
Total £164,000 
Revenue Total £310,000 
Item 13b)
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Appendix 2 
Bridges Capital
Schedule of Works 2024/25
Location Improvement Works Description
Capital
Plan Value
U129E/20 Blackhills Culvert  £175,000
B9008/10 Auchriachan Bridge  £350,000
Various Non Network £50,000
C2E/20 Cloddach £4,237,000
Running total £4,812,000
Slippage factor £165,000
Total £4,647,000 
Item 13b)
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REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE
SERVICES COMMITTEE ON 30 APRIL 2024 
SUBJECT: MARINE SAFETY AND OPERATIONAL SUMMARY OF 2023/24
AND Q3/4 2023/24 UPDATES 
BY:  DEPUTE CHIEF EXECUTIVE (ECONOMY, ENVIRONMENT AND
FINANCE) 
1. REASON FOR REPORT 
1.1 To inform the Committee on matters of Marine Safety and compliance with the
Port Marine Safety Code (PMSC) for the year 2023/24 and details of Q3 and
Q4 2023/24. 
1.2 This report is submitted to Committee in terms of Section III (F) (25) of the
Council's Scheme of Administration relating to the functions of Council as
Statutory Harbour Authority (SHA). 
2. RECOMMENDATION 
2.1 Committee is asked to consider and note the safety performance,
fulfilling their function as Duty Holder under the Port Marine Safety Code
(PMSC) and approve a 3 yearly statement of compliance to PMSC letter
to be written and signed on behalf of duty holders by depute chief
executive (Economy, Environment and Finance). Upon signing, Letter
will be sent to Maritime and Coastguard Agency (MCA). 
3. BACKGROUND 
3.1 Under the statutory requirements of the Port Marine Safety Code (PMSC) the
organisation (Moray Council) must appoint a duty holder to ensure
compliance with the PMSC is achieved. The organisation must provide a
report on PMSC performance annually as a minimum. 
3.2 The role of Duty Holders is held by members of Economic Development and
Infrastructure Services Committee (ED&I). The role requires accountability for
ensuring the organisation’s compliance with the PMSC. 
Item 13c)
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3.3 Moray Council, in its capacity as a Statutory Harbour Authority, is committed
to undertaking and regulating marine operations to safeguard all its harbour
areas, the users, the public and the environment through its Safety
Management System (SMS). 
4. ANNUAL REVIEW 2023/24 
4.1 The following sections of the report set out an overview of marine safety
performance in 2023/24 and an update on Q3 and Q4 of 2023/24. 
PMSC Audit 
4.2 A full annual audit of Moray Council compliance with PMSC was carried out
by Marex Marine within their capacity as Designated Person. The Audit was
conducted at Buckie Harbour Office on 27 March 2023 and concluded that the
Moray Council harbours are compliant with the Port Marine Safety Code. The
next audit is currently in the process of being scheduled for Q1 2024/25 with
Marex marine who act as Designated Person as per PMSC guidance. The
Audit process made observations, mainly clerical in nature, which are
provided in the table below with progress towards close out included. 
4.3 It should be noted that duty holders are required to be conversant with PMSC
and its relevant content. It is advised that training for Duty Holders is provided
through the Designated Person Marex Marine which has been done. 
4.4 Observations from PMSC Audit: 
Observation Progression
Review Harbour Bye-laws with
particular regard to continued
relevancy
Harbours team have carried out an
initial review and have some
proposed changes. Currently on
hold due to capacity issues within
legal services. This position will be
reviewed in 24/25 to determine
conclusive plan including
resourcing issues. Low risk,
current byelaws are acceptable at
present.. 
Consider cyber security protocols Cyber security requirements being
included and updated as part of
ICT works during move to new
harbour office May 24.
Risk assessment review required Annual Risk assessment review 
carried out in February/ March 24
Consideration of adding extra
safety signs around harbour
In conjunction with ongoing water
safety group meetings and
workstream considerations for
signs required to be discussed.
Increasing drills carried out with
external institutions suggested
Large multi-party oil spill drill
scheduled for 23-25 April 2024 
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Statement of compliance letter 
4.5 As part of regular auditing process, MCA requires a declaration of compliance
with PMSC. The statement of compliance takes the form of a letter written and
signed by Depute Chief executive (Economy, Environment, Finance) stating
that Moray Council is compliant with PMSC. Duty holders are asked to
approve this letter and permit it to be signed on behalf of EDIS committee and
sent to MCA. 
Key Performance Indicators
4.6 The paragraphs below detail the main statistics from the major areas of 
concern for review of compliance with PMSC. 
Annual Accident, Incident and Near Miss Statistics
4.7 The table below summarises the incidents that occurred throughout 2023/24.  
Quarter Injuries Incidents Near Misses
1 0 0 1
2 2 0 0
3 0 1 0
4 1 4 0
Total 3 5 1 
4.8 The following details the injuries incidents and near misses for the year
2023/24 as a whole. All information below was reported on in previous
quarterly reports to Economic Development and Infrastructure Committee. 
Date location Brief summary outcome
Injuries     
09/07/23 Portknockie Member of public fall from
paddleboard requiring
hospital admission.
Injured party
recovered.
Increased patrolling
and monitoring of
harbours. Fee
introduced for 3rd
party companies
engaging in training/
activities in leisure
harbours 
15/09/23 Buckie Moray Council employee
fall from height
Health and safety
department
contacted.
Reporting made 
22/02/24 Buckie Harbour employee struck
by rope
Pier Lighting
upgraded.
Incidents     
13/12/23 Findochty Sinking Vessel Removal of vessel 
09/02/24 Buckie Cargo vessel grounding Notice to mariners
produced. Area of
channel dredged 
29/02/24 Buckie Cargo Vessel collision
with pier
Vessel repaired in
Harbour. Vessel
insurance payment
for damages to pier
railings 
29/02/24 Buckie Oil pollution recovery Pollution cleared
and disposed of
appropriately
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18/03/24 Buckie Potential unexploded
ordnance
External
Unexploded
Ordnance report
carried out.
Outcome of report
low risk area.
Relevant authorities
contacted.
Appropriate
measures taken.
Near Misses     
14/04/23 Buckie Diver stop job due to
vessel movements.
Increased visual
confirmations in
place. 
4.9 The number of injuries and incidents at Moray Council harbours during
2023/24 is low but has increased since 2022/23. Whether there is an
underlying factor, such as increased activity, is unclear given the low
numbers, but this is being monitored. It must be noted that strict risk
assessments and permit to work procedures are implemented by harbour staff
when carrying out jobs and encouragingly incidents and accidents involving
Harbour staff are extremely low. Third party incidents and accidents are
harder to control but work within Moray Water Safety group and a drive to
lead by example in the harbour area will hopefully press a safety culture within
the harbours environment. With this in place the target for Accidents,
Incidents and near misses is 0. All accidents, incidents and near misses will
continue to be investigated thoroughly and reported accordingly at quarterly
and annual meetings. Lessons learned and actions arising from the events
will also be detailed. 
Aids to Navigation
4.10 As a Local Lighthouse Authority, Moray Council is required to report the
availability of all of its navigational lights to the Northern Lighthouse Board in
March of each year. Currently the Port Closed light on the North Pier in Buckie
is unavailable resulting in availability figures being decreased. This has been
discussed with the Northern Lighthouse Board and they have noted it is not an
urgent requirement as the light is not mandatory and other provisions to
communicate any port closures are available. Mucks Light structure is at end
of life and has been through the Asset Management Working Group (AMWG)
gateway a procurement of new structure to be installed is underway. Target
date for completion is by end of June 2024. Cost of £175,000 has been
estimated. 
4.11 New solar powered lights have been installed in Burghead and Buckie. The
new solar powered lighting will decrease the number of faults observed and
as a result over time lead to an increase in the availability figures for all
navigational aids. This work has been funded by Scottish Government Marine
Fund Scotland Scheme. 
4.12 A risk assessment for changing the lighting system was prepared and
approved by the Northern Lighthouse Board. A Notice to Mariners has been
produced and sent to all harbour users and the UKHO so visiting vessels can
be informed of this change. 
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4.13 The table below summarises the availability of Navigational lights under
Moray Council’s responsibility. 
4.14 The ‘Availability Objective’ is calculated over a rolling 3-year period. This
means that over this period a Cat 1 Aid to Navigation needs to be functional
for 99.8% of the time. Currently Moray Council meeting this target. The
availability of Cat 2 and 3 lights is below the target availability. 
4.15 The target for the year 2024/25 is to increase the availability figures of Cat 2
lights to 95% and cat 3 lights to 97%. This will be achieved by utilisation of
new solar powered lights that have been installed during 2023/24. One sector
light remains to be installed in Buckie due to be installed during Q1. Once
installation is completed of the final light efficiency will increase back to target
due to less reliance on unsuitable cabling prone to faults. 
Pilotage and Cargo works
4.16 Pilotage is not compulsory at Buckie harbour, and therefore not all cargo
movements require the services of a pilot. The number of pilotage acts carried
out in the year 2023/24 was 30, in relation to 106 vessel movements in and
out of the harbour. 
4.17 During financial year 2023/24 there has been a continuation of regular and
frequent cargo loading and discharging in Buckie harbour. 
The table below summarises cargo handled this year compared to previous
years: 
2023/24 2022/23 2021/22 2020/21 2019/20
Import
tonnage
82143.79 86446.02 70488.72 64019.24  74242.20
Export
tonnage
21622.97 17954.10 8931.55 31846.33  13330.50
Total 103766.75 104400.12 79420.27 95865.570  87572.70 
4.18 Cargo operations within Buckie harbour are and continue to be extremely
busy with vessels on average in harbour every week. Tonnages handled have
been increasing steadily over a period of years with imports of Malt/ Barley in
particular handled regularly. This service is a vital part of the supply chain to
Moray local economy. 
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Training 
4.19 Training has been completed in a number of areas including: 
• First aid training completed by 4 Harbour assistants. 
• Port Security training for 2 assistant harbourmasters carried out May
2023. Security refresher training for Harbourmaster carried out
September 2023. 
• STCW fire/sea survival and rescue boat course completed by 1
assistant harbourmaster June 2023. 
• RYA basic sea survival completed by 1 harbour assistant October
2023. 
• MCA oil spill level 1 training completed by 1 harbour assistant
September 2023. 
• RYA Day skipper theory and engine maintenance course completed by
1 Assistant harbourmaster. 
• RYA powerboat level 2 course completed by 1 harbour assistant March
2024. 
• Powerboat courses for 2 harbour assistants. 
4.20 Pilotage training for hours of darkness continues for 2 members of staff with 2
new members of harbour staff planned to commence pilotage training during
Q2 2024/25. 
4.21 Training requirements for all harbour staff is currently being reviewed and 
training matrix updated and agreed upon by OD for 2024/2025. 
Staffing 
4.22 Recent recruitment within the harbours team includes the appointment of 1
new permanent harbour assistant.   
4.23 Recruitment for MV Selkie staff has been paused whilst a change
management process is being undertaken within the harbours team. The
process is aiming to clarify contractual queries and provide structure and
resilience throughout the team enabling full time Moray council employees to
crew vessel with all harbour staff providing back up resilience.  
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Conservancy
Capital dredging Projects 
4.24 A capital dredging programme was agreed at a Full Council meeting on 29
June 2022 (paragraph 22 of the minute refers,) All relevant Marine Directorate
licences were completed and are held within Buckie Harbour Office with
copies held on Board all dredging vessels engaged in operations within Moray
Council harbours. 
4.25 The recent agreed external dredging project  carried out between 5 October
and 10 November 2023 has extensively dredged basin 2 to a depth of 2.7
metres except in small areas where bedrock was reached. 
4.26 In total 6,010 m3 of spoil was removed from basins 1-3 and navigational
channel during the works and discharged at designated spoil ground. 
4.27 A secondary capital dredging programme was commissioned after a decision
of full council on 12 December 2023 (para 9 of the minute refers). 
4.28 Under delegated authority afforded to Head of Environmental and Commercial
Services a tendering process identified a suitable marine contractor to carry
out the required works for specialist rock dredging in Buckie. 
4.29 The works are underway and began on 8 March 2024 with a contract to bring
the area of the channel and basin 2 to a level of 3.2 metres below chart datum
in entirety. 
Maintenance Dredging
4.30 There is a target Depth of 3.0 metres to be reached in all areas of the channel
and basins 1-3 in Buckie Harbour by the end of May 2024/25. Progress
toward this has been and will continue to be monitored and reported as a KPI. 
A recent Bathymetric survey carried out in February 2024 has identified a
shallow area to the immediate west of west pier. The area is approximately
5m2 in area and is being worked upon. The depth of this area was 1.2m
below chart datum and appropriate Notice to Mariners has been issued to all
mariners warning of the shallow area. The shallow area has developed
quickly after prolonged periods of adverse weather forcing sediment toward
the harbour entrance. 
4.31 The recent external dredging campaign alongside work from Selkie
throughout the year has provided a controlling depth of 2.5m in the channel
outside of above-mentioned shallow area and basins 1 and 2. Areas of rock
outcropping discovered in basin 2 are being dredged to ensure the channel
and basin 2 are at least 3.0 metres below chart datum by end of May 2024. 
4.32 Immediate dredging plans are to prioritise the channel entrance with Selkie
and to aid in the dredging of basin 2 when required. The dredging plan
includes provision to continue to dredge at Buckie regularly as the main
priority of the dredging programme with work in Burghead identified as next
priority. 
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4.33  Burghead will be attended any time there is a suitable weather window during
manned periods and when tidal conditions suit once the shallow area at
Buckie harbour entrance is rectified. Currently the depth below chart datum at
the entrance of Burghead harbour is 0 metres. 
4.34 There is a Notice to Mariners published warning vessels of the fluctuating
depths within the entrance channel of Burghead advising all mariners to
contact Harbourmaster for accurate information and tidal information. 
4.35  The priority areas for dredging at Burghead remain the sand bank which is
located adjacent to the north breakwater and an area of sand build up
adjacent to the groyne, which has been repaired during 2023/2024. Other
dredging requirements include:   
• Hopeman: New licence received. Develop land based plans for
dredging utilising Selkie alongside land based excavators. The inner
basin and channel will both be included in dredging plans.
• Portknockie: there is no specific need for dredging plans at Portknockie
at this time however the entrance and pontoon basin will be closely
monitored and dredged accordingly.
• Findochty: Dredging is required at the entrance channel and areas
around the middle jetty. 
4.36 Maintenance dredging will continue throughout 2024/2025 with Portknockie
and Findochty works planned to take place during Q2/3 with expected
favourable weather. It should be noted that commercially and operationally
works in Buckie and then secondly Burghead will be prioritised before any
additional work is undertaken. 
Selkie
4.37 MV Selkie has completed works within Buckie and Burghead during the
financial year of 2023/2024. The below table summarises the work carried out
during the year: 
Days worked and total tonnage removed 2023/2024 vs 2020/2021-2022/2023
Year Days
working
Weather
days
Maintenance Working
days %
Tonnage
Removed
2023/24 62 58 28 42 8,472
2022/23  94 68 46 46 12,880
2021/22 77 62 59 39 14,120
2020/21 38 14 46 39 11,240   
Tonnage removed per harbour during 2023/2024
Harbour Total Tonnage removed 
Buckie 7,092
Burghead 1,380 
4.38 During 2023/2024 there has been a marked decrease in the total tonnage
removed to spoil by MV Selkie compared to the previous year. Although this
on the face of it appears to denote less work has been completed by the
vessel it is important to note that Selkie has been deployed to work in targeted
area of Basin 4 in Buckie which is a more detailed and slower process of work
compared to general dredging in the channel area. Selkie has also been
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involved in working in Basin 2 during October and November time this year to
aid the capital dredging programme. This work involved scraping of extremely
dense materials and rock which by its nature was extremely difficult and
resulted in lower volumes of material deposited to spoil ground. There has
also been a decrease in downtime due to maintenance (19% vs 22%). This
has decreased steadily since 2020/2021 from 47% (see table in paragraph
4.42) However, there has been an increase in the number of days the vessel
has not been able to work due to availability of crew and adverse weather
resulting in a working percentage which has decreased from 46% to 42% over
the financial year. 
4.39 The plan for increased efficiency moving forward continues to be to maximise
the number of days crewed on vessel further and continue to work effectively
with maintenance to lower the number of maintenance days. 
4.40 It must however be noted that the maintenance delays of the vessel are
invariably the result of excavator issues. The excavator on board Selkie has
reached an age where regular issues with components such as valves are
likely to remain high despite good maintenance. This is a direct result of age
of the excavator and the harsh environment the excavator works in on a
constant basis. The implications and options relating to this are currently
being explored and will be progressed with fleet services as part of the asset
management planning process. 
4.41 A review is underway in general within the harbour service which ultimately
aims to maximise crewing of the vessel by using in house crew working to
simpler contractual understandings. The crew will also be more agile in ability
to work at shorter notice periods allowing maximum advantage to be taken of
periods of good weather. The training of all staff within the harbours team will
also allow maximum resilience with multiple members of staff being able to
work on the vessel if required. 
4.42 KPIs measuring the percentage of days working and days of maintenance will
continue to be included in quarterly reports moving forward. This is a measure
of the vessels working efficiency with a target of 50% working days and 20%
maintenance days set. A copy of KPI table is included in paragraph 4.44.
Below shows in table and graph form Selkie working percentage vs
Maintenance and Weather days. 
% Comparison of working days compared to weather and maintenance per year.
Year Days working % Weather days % Maintenance %
2023/24 42 39 19
2022/23 46  32 22
2021/22 39 31 30
2020/21 39 14 47 
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Graph of Selkie Working day % trends. 
4.43 Although Q4 has shown a trend upwards, the general pattern of Selkie
maintenance unavailability compared across quarters in 2023/24 vs 2022/23
shows a slight decrease in days. There has been a decrease in working days
over Q3/4 which has correlated with a dramatic decrease in tonnage removed
to spoil however, it must be noted that this coincides with a sustained period
of consistent poor weather which has limited work and less crew availability
and manned days. There is still continued improvement required to reach the
desired KPIs highlighted in the table in paragraph 4.44 (below) during 2024/25
financial year. The target of 20% or less of maintenance days has been
reached however targets for working days and tonnages removed have not
been reached despite significant progress during Q1/2. A trend graph will
continue to be added in future reports to highlight progress toward KPIs
identified for working day and maintenance day targets. 
4.44  KPI Summary Table  
KPI Progress at the end of Q4 Completion Target Date 
Conservancy 
Buckie Channel Depth 3.0M Current official depth
improved to 2.5M confirmed
by bathymetric survey.
External dredging
programme continuing work
31/05/24
Buckie Basin 1/2/3 depth
3.0M
Current depth 2.5M Review of progress
continuously.
Fully achieved basin 2 by
31/05/24 Basin 1/3 achieved
by 31/03/25
Provide 0.3M channel
Burghead
Current depth 0.0M Review of progress
31/03/24
Fully achieved by 31/08/24 
0
10
20
30
40
50
60
70
2021/22 2022/23 Q12022/23 Q22022/23 Q32022/23 Q42023/24 Q12023/24 Q22023/24 Q32023/24 Q4
Chart Title
Working Days Maintenance Days Weather days
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Productivity 
Maintenance days less than
20%
19% for 2023/24 Continuous review
Working days greater than
50%
42% for 2023/24 Continuous review
Total minimum tonnage
removed above 14,120
Tonnes (aspirational target
18,000 Tonnes)
Mid Q4  8,472  31/03/25
Total working days above
77 (target 100)
62 Mid Q4  31/03/25 
Staffing 
Full Time master recruitment campaign (long
term skilled agency worker
currently)
30/09/22 postponed.
Change management
process underway to review
and implement changes to
crewing structure, 30/06/24 
Safety management/
Maintenance 
SMS review and Update Reviewed and awaiting
audit review by designated
person to be carried out Q1
24/25
30/06/24
Full Risk assessment
update
annual review completed
Feb 24
31/03/24 
Financial 
Lower Running costs to
within Budget
To be reviewed 31/03/24 
Green Harbours
4.45 There has been continuing work carried out with the focus on lowering carbon
emissions and promoting overall environmentally sound practices within the
harbours. Electrical upgrades to allow greater connectivity for vessels with
less reliance on fossil fuel generators is nearing completion with an expected
completion date of mid-May 2024. 
5. Operational Updates 
5.1 Multiple works are currently ongoing and nearing completion in Buckie
harbour. 
5.2 Weighbridge has now been completed and is available for use with an interim
reduced fee of £0.29 per tonne for a period of 3 months agreed to encourage
return to normal operational practices. Further smaller works to improve
fencing in line with additional security and increased data automation of the
weighbridge and new harbour office will be completed by end of Q2 2024/25. 
5.3 Offshore windfarm Operations and maintenance (O/M) base and quayside
works are progressing with expected completion May 2024. 
5.4 Delivery of new Harbour office at site of Fishmarket progressing with expected
delivery date of May 2024. 
5.5 New lighting installed on Piers 2 and 4 providing ability for increased focussed
lighting for works being carried out during hours of darkness.
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5.6 Electrical upgrade works nearing completion. Distribution boxes on Piers
energised. Pier 3 cable pulling and completion civil works covering trenches
outstanding. 
6. FUTURE OBJECTIVES AND PLANS 
6.1 Objectives identified for 2024/25 include the following: 
• Completion of PMSC audit during Q1. 
• Procure and replace Buckie Mucks navigational Light structure by end
of Q2 2024/25. 
• Progress procurement and installation of CCTV equipment in Buckie
harbour. 
• Completion of multi organisation oil spill drill 25-27 April 2024 
• Review and report existing and identify new KPIs. 
• Undertake further reviews of Berthing Policy and Harbour Bye-laws. 
• Progression of Water safety policy draft framework. 
• Review training requirements and request necessary training. 
• Increase momentum of Pilot training and accreditation leading to an                                                                                            
additional 2 fully competent Pilots within the Harbour team by end of
financial year. 
• Carry out change management process to address long term staffing
queries and dredging crewing requirements. 
7.  SUMMARY OF IMPLICATIONS 
(a) Corporate Plan and 10 Year Plan (Local Outcomes Improvement
Plan (LOIP)
Sustainable harbours maintained to operate safely and efficiently
contribute to the economic development of Moray. 
(b) Policy and Legal
Non-compliance with the Code will have legal implications. 
(c) Financial implications
Non-compliance of the Code may have financial implications. 
(d) Risk Implications
Failure to comply with the Port Marine Safety Code could result in
prosecution of the authority. 
(e) Staffing Implications
No staffing implications arise from this report.
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(f) Property
There are no property implications arising from this report. 
(g) Equalities/Socio Economic Impact
There are no specific equalities matters, however, the Equalities Officer
has been consulted and comments incorporated into this report. 
(h) Climate Change and Biodiversity Impacts
There are no climate change and biodiversity implications arising from
this report. 
(i) Consultations
The Depute Chief Executive (Economy, Environment and Finance),
Head of Environmental & Commercial Services, Legal Services
Manager, Chief Financial Officer, Committee Services Officer (L Rowan),
Acting Principal Climate Change Strategy Officer, and Equalities Officer
have all been consulted and their comments incorporated into this report. 
8.      CONCLUSION 
8.1 The Council is currently deemed to be compliant with the PMSC, 
however, work to maintain a safe environment remains an ongoing 
matter in a dynamic environment. Diligent staffing and constant 
monitoring and risk assessing will be utilised to maintain compliance as 
demands evolve. 
Author of Report: Stuart Akass, Harbours Development and Operations
Manager
Background Papers: 
Ref:    SPMAN-524642768-1055
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REPORT TO:   ECONOMIC DEVELOPMENT AND INFRASTRUCTURE
SERVICES COMMITTEE ON 30 APRIL 2024 
SUBJECT:  DEPOT AND STORE REVIEW 
BY:  DEPUTE CHIEF EXECUTIVE (ECONOMY, ENVIRONMENT
AND FINANCE) 
1. REASON FOR REPORT 
1.1 The purpose of this report is to provide an update on progress in relation to
the Depot and Store review and seek Committee approval of the outline
business case and the request for resource. 
1.2 This report is submitted to Committee in terms of Section III (F) (3) of the
Council's Scheme of Administration relating to industrial and commercial
development. 
2. RECOMMENDATION 
2.1 It is recommended that Committee:- 
(i) approves the Outline Business Case for the Depot and Store
Review; 
(ii) agrees to fund a project resource of a temporary Senior Project
Officer at grade 11 for an initial period of 1 year from the initial
savings generated (£64,700) and the balance from reserves
(£11,300); and 
(iii) notes that a further update on progress will be provided once the
full business case is developed. 
3. BACKGROUND 
3.1 On 12 December 2018, the Council approved a report which detailed
recommendations aimed at improving how the Council manages and
maintains its property assets (paragraph 6 of the Minute refers). On 29
October 2019, the Policy and Resources Committee approved a report
detailing the Property Asset Management Appraisal (PAMA) Improvement
Plan with the status of actions (paragraph 13 of the Minute refers). On 30
June 2021, the Council approved a report which outlined progress and
indicated that delays to progress had been sustained due to the Covid-19
Item 13d)
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pandemic and changes of senior lead officers (paragraph 14 of the Minute
refers). 
3.2 On 30 August 2022, the Corporate Committee approved a report which
provided an update on the PAMA which contained the decision to merge the
Depot and Store reviews to ensure maximum benefits to the Council
(paragraph 7 of the Minute refers). On 6 September 2022, this Committee
received an update on the now combined review (paragraph 12 of the Minute
refers). Finally, on 20 June 2023, this Committee approved a report which
provided a further update on progress of the review and included some early
actions to provide some financial savings (paragraph 13 of the Minute refers). 
3.3 The report on 20 June 2023 indicated that the outline business case for the
depot and store review would be reported before 31 December 2023.
Unfortunately, this target was not met primarily due to resources being
diverted to review and develop budget options and also the actions required
to respond to the Reinforced Aerated Autoclaved Concrete (RAAC)
investigations required.    
4. PROGRESS AND NEXT STEPS 
4.1 The report to this Committee on 20 June 2023 outlined 5 properties which
could potentially be removed from the Council’s portfolio. Since then, actions
have been taken to progress this rationalisation and the table below details
the outcome. 
Property User Outcome
Unit H Isla Bank Mills,
Keith
DLO Property vacated and
relet to private company.
Operating cost saving of
£33,500 per annum plus
unit let to new tenant at
£26,200 per annum. 
Dava garage Roads Agreement reached with
landlord to terminate
lease. Currently
progressing demolition
as required by lease
terms prior to property
being handed back.
Dufftown depot Roads Services relocated to
Keith depot however still
required for salt store.
Full saving not possible
until replacement salt
facility available. Design
work progressing on new
facility likely to be
completed in next
financial year. Expected
operational cost saving
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initially of £5,000 plus
reduction in back log
maintenance cost.
Household Waste
Recycling Centre
(HWRC), Conglass
Lane, Tomintoul
Roads Service recommended to
be relocated to Roads
Depot in Tomintoul,
however due to potential
conflicts between public
traffic and Council
operations decision
made to retain separate
facility. 
Auchinhove salt store Roads Only used to store salt
cannot be made
available until alternative
salt facility completed in
Keith Depot. 
4.2 Since the report in June further engagement with services has been
undertaken and an outline business case for the rationalisation of the
Council’s depots and stores has been developed, a copy is attached in
APPENDIX I. 
4.3 The OBC outlines the need for investment within the Council’s depots and
stores in order that they can be brought up to a B standard for condition and
suitability. The current do-nothing situation would require capital investment in
the region of £3.72M to ensure the existing properties meet this standard.
This capital investment would cost the Council circa £260,000 per annum in
currently unbudgeted revenue costs. This additional cost is not sustainable
and therefore a reduction in the operating costs for the properties is required
to support investment. Therefore a review of the depots and stores is required
to identify the savings opportunities to permit capital investment without
placing additional pressure on the Council’s revenue budget. 
4.4 Through the engagement with services and information gathering stages of
the development of the OBC it is clear that there are opportunities to
rationalise the estate and generate revenue savings. The OBC has
considered 4 options. The options identified are: 
• Option 1 As Is – Retain Existing Depots & Stores – Business as usual.
• Option 2 Do the Minimum – Progress a phase of property
rationalisation and consolidation targeting ‘low hanging fruit’ sites.
• Option 3 Intermediate – Phased approach of property rationalisation
and service footprint reduction.
• Option 4 Maximum – Property rationalisation and service
transformation in a big bang. 
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4.5 The principle as we move from option 1 to option 4 was to consider a
centralised model, with option 4 being a single site likely to be in the central
area of Moray and options 2 and 3 looking at varying degrees of
rationalisation of services into single sites within the larger settlements of
Moray. Section 4.3 of the OBC provides details of each option. 
4.6 In addition to cost avoidance/revenue savings, the OBC sets out the following
benefits that are anticipated to be generated from the rationalisation of the
depot and store estate along with initial targets: 
Benefit Target 
Cash Releasing 
Reduced operating costs 10-20% reduction in operating costs.
Increased external revenue income Generate £200,000 of additional
external rental income per annum.
Capital receipts Generate £50,000 in capital receipts
from surplus assets.
Non Cash releasing 
Reduction in Operational Estate
carbon footprint
Reduce carbon emissions from
depot and store estate by 20%.
Quantitative 
Reduction in the number of industrial
units being internally leased
Reduce units within investment
portfolio leased internally by 5 units.
Qualitative 
Increase in team working Increase number of multi service
buildings/sites by 3 to 4 in total. 
4.7 An appraisal of the options was undertaken and is detailed within the OBC 
with each option considered against the objectives of the project and the 
critical success factors outlined in the OBC. 
4.8 The OBC recommends that the Council undertake a phased approach of
property rationalisation and service footprint reduction as defined in option 3
with the target of rationalising 14 depots and stores to primarily 4 multi use
facilities at Ashgrove Elgin, Buckie, Forres and Keith and a single DLO facility
in Mosstodloch. At this stage in the development of the project, this option is
likely to have a phased capital expenditure requirement in the region of
£7.32M, however the option could release annual operating revenue cost
savings of £310,000 and additional new annual revenue income from surplus
leased properties of £192,000. The revenue elements combined provides a
potential revenue saving (before capital borrowing costs) of circa £500,000
per annum on completion. The OBC provides details on these savings and
indicates the point when the project will break even which is within the first 15
years. Further the cost of financing the capital required is estimated to be in
the region of £500,000 therefore it is not expected that selecting the preferred
option would place any extra pressure on the Council’s capital plan as the
cost of borrowing should be offset by savings generated. As the OBC matures
to FBC, the financial and economic cases will be further developed and a
focus applied to generating net savings where possible. Pending that process
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and based on current OBC projections, the project will avoid further capital
expenditure on an unsustainable asset group and will instead apply this to
developing modern and efficient depots and stores which will not only
materially improve working conditions for our workforce but also potentially
bring additional benefits. 
4.9 In particular, it should be noted that option 3 best links with the draft ZERO
EMISSION FLEET REPLACEMENT STRATEGY which is also being
considered at this committee where there is a desire to increase charging
infrastructure at the  Ashgrove Depot to develop a green hub. If approved, the
intention would be for the teams working on both projects to work
collaboratively to ensure both projects deliver for the Council. In addition to
linking with the Zero Emission Fleet Replacement Strategy, it is expected that
the work to be undertaken to rationalise the depots and stores will help open
up opportunities for wider public and third sector property sharing. It is
expected that as the project progresses these opportunities will be
forthcoming and will bring additional cost savings. This type of approach is
mirroring progress made within the office estate where with the work
undertaken to date this has permitted the opportunity to engage with partners
to investigate additional income opportunities to the Council. 
4.10 It is therefore recommended that the OBC is approved, and officers instructed
to progress the development of the Full Business Case in relation to the
project. 
4.11 If Committee is minded to approve the OBC it is recommended, as set out in
the OBC, that a dedicated staffing project resource is established to drive this
project forward. Within the financial assessments in the OBC an allowance of
£100,000 per annum has been built into the model. At this stage it is
anticipated this would be to provide a Senior Project Officer (SPO) post to
lead the project at a grade 11. This project is complex with multiple properties
and services involved along with important links to other Council strategies.
Experience has shown that there is a need for a dedicated project resource
with appropriate project management skills to ensure the project progresses
at an appropriate rate to deliver savings to the Council. There are no
immediately identifiable alternatives to resource the project other than the
proposed additional resource as several other projects are underway which
are impacting on the same teams that would support this project. It is
proposed that Committee approve an initial 1 year of SPO resource at
£76,000 including on-costs to permit the development of the FBC with the
intention that this would be completed by 31 December 2024 and reported to
Committee before 31 March 2025. The FBC would then outline future project
resource requirements and funding and would aim to identify cashable
savings over and above the cost avoidance within Option 3. 
5. SUMMARY OF IMPLICATIONS 
(a) Corporate Plan and 10 Year Plan (Local Outcomes Improvement
Plan (LOIP))
This project forms part of the Improvement and Modernisation
Programme of Work that supports the Council priorities of building a
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stronger, greener, vibrant economy and building thriving, resilient and
empowered communities by providing modern and sustainable services
and infrastructure. 
(b) Policy and Legal
None. 
(c) Financial Implications
The Financial implications are outlined within the OBC. If approved
there would be a requirement to fund the additional staff resource in
advance of savings to fully offset this cost being generated from the
project. It is estimated that the cost of the SPO for 1 year would be
£76,000 (including on-costs). Currently savings of circa £64,700 has
been generated from early actions resulting in a gap of funding of
£11,300. 
Corporate Management Team Additional Expenditure Warning 
When the Council approved the budget for 2024/25 on 28 February
2024 it balanced only by using reserves. The indicative 3 year budget
shows a likely requirement to continue to make savings in the order of
£13 million in the next two years. All financial decisions must be made
in this context and only essential additional expenditure should be
agreed in the course of the year. In making this determination the
committee should consider whether the financial risk to the Council of
incurring additional expenditure outweighs the risk to the Council of not
incurring that expenditure, as set out in the risk section below and
whether a decision on funding could reasonably be deferred until the
budget for future years is approved. 
As the budget has been balanced using reserves and reduced free
general reserves to the policy minimum, this would use further
earmarked reserves of £11,300 in 2024/25. There would be no future
year increase in costs as this is a proposed temporary post. 
(d) Risk Implications
The main risks with the project will be timescale for delivery and cost
increases. The request for additional staff resource is to mitigate the
risk of this project continuing to be hampered by competing Council
priorities. 
The risk of not progressing the depot and stores review is that increase
spend would be required on the existing properties which would place
an unbudgeted financial burden on the Council. 
(e) Staffing Implications
As stated above, in order to progress this project timeously, there
should be a staff resource brought in to lead the development of the
FBC. It is proposed that a Senior Project Officer at Grade 11 for an
initial period of 1 year is brought in. Additional staff resource to support
the project will come from the Housing and Property Service however
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support will be required from the services who occupy the depots and
stores along with Finance support.   
(f) Property
The property implications are as detailed in this report and the attached
OBC. 
(g) Equalities/Socio Economic Impact
There are no equalities or socio-economic issues arising from this
report. However, these will be appraised within the full business case. 
(h) Climate Change and Biodiversity Impacts
No climate change or biodiversity implications have been identified
relating to the recommendations of this report. However, any decisions
on the future of property assets will be heavily influenced by the
Council’s strategy. 
The Depot and Store review will help to decarbonise the Council’s
property portfolio and will support the decarbonisation strategy for the
Council’s fleet. 
(i) Consultations
The Head of Housing and Property Services, Head of HR, ICT and
Organisational Development, Chief Financial Officer, Legal Services
Manager, the Head of Environmental and Commercial Services,
Building Services Manager, Design and Construction Manager, the
Equal Opportunities Officer and Lissa Rowan, Committee Services
Officer have been consulted and their comments incorporated in this
report as appropriate. 
6. CONCLUSIONS 
6.1 Committee note the progress on the rationalisation of the previously
identified assets for rationalisation. 
6.2 Committee note and approve the contents of the Outline Business Case. 
6.3 Committee approve the use of savings and also reserves to provide the
resources to appoint a Senior Project Officer to lead this project for an
initial period of 1 year to develop the Full Business Case. 
Author of Report:  Neil Strachan, Property Asset Manager
Background Papers:  
Ref:  SPMAN-1285234812-1531 
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Business Case  
For Depot & Stores Review 
Version Number: 0.14 (Draft) Created: 09/01/23 Saved: 15.04.2024
c:\program files (x86)\neevia.com\docconverterpro\temp\nvdc\b540256b-05ab-4377-9610-0468aa3dfe69\0f5da548-068e-45cb-88a6-
9abedebb5883.docx   Page 1 of 39 
Contents
1. Version History ......................................................................................... 2
2. Executive Summary .................................................................................. 3
3 The Strategic Case ................................................................................... 4
3.1 Vision Statement .................................................................................... 4
3.2 Case for Change ................................................................................... 5
3.3 Investment Objectives and Aims ............................................................ 8
3.4 Benefits to be realised ....................................................................... 11
3.5 Scope of the Project ........................................................................... 14
3.6 Out of Scope ....................................................................................... 17
4 Economic Case ........................................................................................... 19
4.1 Critical Success Factors ....................................................................... 19
4.2 Engagement Undertaken...................................................................... 20
4.3 Options Appraisals ............................................................................... 20
4.4 The Preferred Option ............................................................................ 30
5 Commercial Case ....................................................................................... 31
5.1 The Procurement Process .................................................................... 32
5.2 Procurement Support and Oversight .................................................... 32
5.3 Anticipated Procurement Pipeline ........................................................ 32
5.4 Roles and Responsibilities ................................................................... 32
6 The Financial Case ..................................................................................... 32
6.1 Overall Affordability .............................................................................. 32
6.2 Assumptions ......................................................................................... 33
6.3 Financial Model .................................................................................... 34
6.4 Financial Risks ..................................................................................... 35
6.5 Financial Management ......................................................................... 35
7 The Management Case .............................................................................. 36
7.1 Resource Requirements ....................................................................... 36
Name of Document: Outline Business Case
Author: Kevin Black/Neil Strachan
Description of Content: Outline Business Case -
Depot & Stores Review
Status: Final Draft
Approved by: 
Date of Approval: 
Item 13d)
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7.2 Programme Management Arrangements ............................................. 36
7.3 Governance and oversight ................................................................... 37
7.4 Arrangements for Change Management .............................................. 38
7.5 Arrangement for Benefits Realisation ................................................... 38
7.6 Arrangements for Risk Management .................................................... 39
7.7 Gateway Review Arrangements ........................................................... 39 
1. Version History
Version Date Details
0.1 09.01.23 Initial draft created by - Kevin Black
0.2 19.01.23 Formatting and data update - Kevin Black
0.3 01.02.23 Wording and layout update – Neil Strachan / Kevin
Black
0.4 07.02.23 Wording and layout update – Neil Strachan / Kevin
Black
0.5 10.02.23 Overall review tidy up – Neil Strachan
0.6 15.02.23 Review,  update and include staff resource request –
Neil Strachan
0.7 10.08.23 04.08 Workshop update – Kevin Black
0.8 19.09.23 30.08 Workshop Update – Neil Strachan, Kevin
Black, James Campbell
0.9 03.10.23 Various updates prior to circulation – Neil Strachan,
Kevin Black and James Campbell
0.10 11.12.23 Updated Strategic Case – Neil Strachan
0.11 14.02.24 Updated following workshops with MK, KB and JC –
Neil Strachan
0.12 22.02.24 Updated following comments from MK – Neil
Strachan
0.13 11.04.24 Updated following comments from RG and formatting
undertaken – Neil Strachan
0.14 15.04.24 Updated following initial comments from LP – Neil
Strachan 
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2. Executive Summary
This document sets out the outline business case for the review of operational
Depots & Stores across the Moray Council area.  The document sets out the
strategic case for the review with the project originating from the Property
Asset Management Appraisal (PAMA) Improvement Plan which was reported
to Committee in October 2019 and linking the project to the Council’s
Corporate Plan and other strategies. 
The benefits that will be realised from the project are outlined along with the
scope of the project and specifically which properties are out with the scope.
There is a clear strategic case to undertake the review with a focus on
delivering savings from rationalising the portfolio. Within the Economic Case
four broad options are appraised from a do minimum option to a big bang
major single site development. From the appraisal the preferred option 3 is a
staged rationalisation looking to amalgamate existing sites to create single
multi use sites in the main settlements in Moray. This option will require
investment in the portfolio however with the rationalisation it is expected that
the revenue cost of this capital will be offset by revenue savings and income
from leased surplus assets. 
Finally, the document sets out the resource need for the project along with the
expected project management arrangements including the creating of a
project board to manage the project moving forward. 
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3 The Strategic Case 
3.1 Vision Statement
This document sets out the high-level business case for the review of
operational Depots and Stores and Electric Vehicle Charging strategy across
Moray Council. This will encompass a review of the existing Depot & Stores
portfolio, along with identifying the future requirement for provision of
appropriate, functional spaces and facilities required to deliver services,
intended to optimise utilisation of resources and working to minimise our carbon
footprint by way of a decarbonisation strategy. Further, consideration on the
location and provision of Electric Vehicle (EV) charging stations will be reviewed
and incorporated within recommended options in line with the emerging EV
Charging Strategy. 
This review integrates the overall requirement to utilise our property estate as
efficiently as possible linking with other ongoing property reviews. 
Vision 
“Moray Council will create progressive, dynamic and sustainable working
environments that empower our workforce to succeed and deliver excellent
services, using technologies and workstyles that enhance communication,
collaboration, improve wellbeing and operational efficiency, increase
productivity optimising efficiency to ensure that the Council’s Route Map to Net
Zero is included in decision making.” This is very close to the vision of the
Council’s Smarter Working project. 
The outline business case builds on work undertaken previously including
updates which have been provided to Committee on the Property Asset
Management Appraisal. In particular, it details the logical basis for the need for
rationalisation of the Council’s depot and store assets and the need for change
to working practices.  Changes to working practices will be required to drive
efficiency within services and increase productivity to provide savings
opportunities. 
These savings will help to support the capital spend required to improve our
asset base and to ensure that we develop an optimised portfolio which is
appropriate for smart working, efficient service delivery and the challenges of
climate change. 
The Outline Business Case details the preferred option to progress by
rationalising the depot and store portfolio recommending a carefully managed
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and controlled staged process for implementation of change within the depot
and store estate.  In order to take the overall project forward a Full Business
Case will be developed recognising this staged process. This is likely to take
the form of initial quick win rationalisation, followed by a fixed percentage
reduction in occupational footprint which would be aligned with service
transformation. 
3.2 Case for Change
The Council on 12 December 2018 approved a report which detailed
recommendations aimed at improving how the Council manages and maintains
its property assets. The Policy and Resources Committee on 29 October 2019
approved a report detailing the Property Asset Management Appraisal (PAMA)
Improvement Plan. Within the PAMA report, there were two recommendations
to undertake a review of Council Depots and Council Stores. Work commenced
on both reviews prior to the onset of the Covid 19 pandemic. The Corporate
Committee on 30 August 2022 approved an update to the PAMA which
combined the Depot and Store review into a widened review looking at the
commercial properties that the Council uses to support its delivery of services. 
As identified in the PAMA the review of the Depot and Stores requirement
across Moray has been necessitated due to the deteriorating condition of the
properties and sites with conservative estimates indicating presently that
£3.7million is required to bring the Council’s depot and store properties up to a
basic standard. In addition to the financial challenge, there have been changes
in the way Services are delivered to the people of Moray particularly, post Covid
19 pandemic, with opportunities to continue to change service delivery by
driving efficiency and increasing productivity that should be a focus of this
review. 
At present, there is at least one Moray Council commercial site (not an office
specific site) in nearly every town of substantial size in Moray. Buckie has three
sites plus temporary Closed Records Store, Keith four sites, and Elgin five plus
some smaller stores. The geographical spread of Moray from the Cairngorms
to the Moray coast dictates the requirement for varied levels of service
provision, resource, equipment and material location, particularly for road
maintenance and winter treatment activities. Therefore, some strategically
located sites are required, such as Dufftown and Tomintoul where the winter
conditions and distance from larger settlements dictate that winter maintenance
supplies be in these locations. Most Council services are historical with several
located from different sites within the same settlement.
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Following consultation with the main Service providers that use our current
depots and stores, it is apparent that there is a need for both operational
manned depots/stores and unmanned support locations. Currently, services
tend to occupy similar building facilities in similar areas therefore, consolidation
of Service providers onto one site or one site per key location enables Moray
Council to realise economies of scale across the operational estate along with
other management, operational, equipment, procurement and financial
benefits. 
Financial Case
Moray Council, along with all other Local Authorities in Scotland, has significant
pressure on its annual revenue budget.  Ensuring efficient and effective use of
all property is an integral aspect of the PAMA and general property asset
management. The rationalisation of the Depot and Stores properties will
contribute by reducing revenue spend year on year on operating costs and
maintenance, and by providing capital receipts where properties can be
disposed of or form additional annual revenue income where surplus properties
are leased out to non-Council occupants. This could amount to circa £245,000
as a potential annual operating expenditure saving and potentially new annual
income of circa £240,000. Further opportunities to share occupation with other
public sector partners will be considered to ensure all potential revenue saving
opportunities are captured.   
In addition, as detailed later in the OBC, there is in the order of £3.7m capital
investment required within the depot and store estate now which is currently
unbudgeted and unplanned. Therefore, there is a need to ensure that any
investment is correctly targeted on assets that have a long-term Service
delivery potential. 
Staff Case 
Attracting and retaining a quality, creative, motivated and productive workforce
is key to the successful delivery of the Corporate Strategic plan.  In order to
compete with other prospective employers there is a need to ensure that Moray
Council has:- 
• adopted a modern efficient, effective way of working, 
• has appropriately equipped functional spaces available for service 
needs, 
• supports the health and wellbeing of our staff through effective 
application of policies, strategies, action plans and support mechanisms. 
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Staff welfare facilities vary greatly across the many locations in Moray. The
review of our current sites show that overall welfare facilities are below the
required and expected standards at our operational bases. Significant
improvement to all welfare locations, therefore, is required to ensure staff have
appropriate work accommodation. With the budgetary pressures, the ability to
focus spend on a smaller number of buildings will ensure that all properties
welfare facilities meet expected standards. 
During the period of the pandemic there have been changes to the structure of
teams across the Council.  As a consequence, there is a need now to take stock
and review the priorities, function and needs of services and individuals.
Further, to provide the right type of space in the best location possible to meet
service delivery requirements ensuring that Services are able to be as efficient
and productive as possible.  It is recognised that through the Smarter Working
Project significant changes to how office-based staff work have been rolled out.
Services will need to assess how any office-based elements of the depot and
store estate will be impacted in light of this. It is the intention to extend the
Smarter Working Project principles to any offices within the depot and store
estate. 
Policy Case 
Moray Council Corporate Plan 
The adopted Corporate Plan sets out the vision and priorities for Moray Council.
One priority is to “Build thriving, resilient, empowered communities” and within
the plan the focus for the Council is to “Provide modern and sustainable
services, housing and infrastructure that meet the needs of our communities
and this project seeks to support this focus. 
This project aligns with the Council priorities of “Our People, Our Place and Our
Future” through the design of modern workspaces that will support our
workforce as they strive to deliver quality services for our communities across
Moray in a productive and efficient way. 
Complementing the work that is progressing under the Smarter Working
Project, this project looks to rationalise the Council’s property holdings
specifically in relation to our operational depot and store properties and to
consider the requirement for appropriate infrastructure in support of a plan of
decarbonisation of both our buildings and vehicle fleet. It also seeks to ensure
that Moray Council has the correct property in the correct location to support
the delivery of services to the citizens of Moray. 
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Climate Change Strategy
Climate change is a key corporate priority and through rationalisation and
combining of sites, there are significant opportunities for reduction in energy
consumption and consequential reduction in environmental impact. Targets for
these reductions in energy and carbon usage will be clearly identified in the full
Business Case. Further the Council’s Climate Change Strategy and Route Map
to Net Zero details the desire for the Council to be a carbon neutral Council by
2030. Via a comprehensive review of these assets the ability to reduce carbon
usage will be a key decision-making factor in assessing the assets that require
to be retained, refurbished, altered, extended and built. Along with Transport
Management the project will ensure appropriate infrastructure is in place for
charging the Council’s EV fleet. 
Corporate Workforce Strategy
The Council aims to develop a skilled, motivated and flexible workforce. The
creation of combined locations offering improved facilities for operational staff
in the key locations across Moray aims to maximise flexibility and minimise
constraints for optimal performance, staff welfare and customer service. 
Combined with the recruitment challenges that are being experienced within
Moray, Moray Council will need to provide improved working and welfare
facilities for employees at work, while also promoting its attractive scenery,
natural outdoor facilities and being a great place to bring up a family.     
In addition to the above, Moray also has an aging population, and the Council
has an ageing workforce. Attracting young people into the workforce is linked
with having the requisite standard of facilities. 
3.3 Investment Objectives and Aims
The Depot and Stores Review complements the EV Strategy and is designed
to deliver health and safety compliant accommodation in the appropriate
location to ensure services can be delivered as efficiently and effectively as
possible. The approach will focus on the functions required to deliver the service
needs, how and where they do this from, optimising workforce by integration
and or amalgamation. In addition, supporting services to consider where it may
be feasible to free up capacity through automation to enable efficiency, using
the right processes, connectivity, time and place to get work done effectively
and efficiently. This approach should reduce waste, energy and environmental
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impact, future proofing for sustainability with other operational benefits
achieved from the Depot and Stores consolidation. 
Strategic Aims 
Process
• Provide modern working environments which support delivery of
high quality, efficient and productive services. 
•  Enable improved working practices for enhanced productivity and
sustainability. 
• Successful decarbonisation by reducing the environmental
footprint of our depot and store estate portfolio and operational
activities by a Target of 20% year on year to Net Zero. 
• Evaluate and determine whether to transition to one centrally
located stock keeping system across the Council standardising for
economy of scale and procurement by optimised Depots and
Stores use through amalgamation, smarter inventory management,
streamlined order fulfilment and by sharing facilities and
opportunities that bring other benefits of improvements in service
performance through new ways of working and management. 
Learning and Growth
• Support the development of an organisational culture, skills and
environment that embraces and embeds flexible and cooperative
working practices. 
• Improve organisational resilience by sound investment and
appropriate training. 
Workforce
▪ Provide a depots and stores estate that enables services to:
▪ Improve employee motivation, morale and wellbeing.
▪ Attract and retain quality, creative, motivated and
productive staff.
Climate
• Facilitate Moray Council’s journey towards Net Zero on the
Operational Estate.   
• Improve Energy and environmental efficiency through best
practice methods of operation and quality improved
performances of facilities. 
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• Employ Climate improvement targets and monitoring as a
central part of the project from the initial stages reviewed
regularly to meet key identified Key Performance Indicators
and deliverables. 
• Review existing performance, energy use and environmental
practices regularly checking trends and benchmarking.
Examine alternative power generation and on tap sources that
may assist in reducing or eliminating consumption of fossil
fuels. 
• Facilitate a reduction in fleet sizes, leading to a reduction in
costs and environmental impact. 
Financial
• Provide infrastructure that enables services through
transformation to increase efficiency and effectiveness of
utilisation of Moray Council properties, their condition and site
functions in order to reduce operational and maintenance cost
by better use of assets and property improvements. 
• Organise integrated financial reporting and reference for
management and monitoring, by way of programming,
trackers and setting milestones with key deliverables. 
Data Management
• Improve document referencing, collaboration, accessibility
and management. 
Strategic Performance Reporting 
• Where appropriate and feasible being service dependant,
incorporate Key Performance Indicators (KPIs) for monitoring
delivery of priorities set out in clearly defined categories
including Revenue and Budget Forecasts reporting quarterly
being part of a Benefits Profile, RAID Log and Opportunities
with Risk Management including graphic (RAG) ratings
identifying areas for escalation that have not met targets in
order to identify opportunities for early intervention,   
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Investment Objectives 
The key investment objectives for this project are as follows: 
1. Investment objective 1 – to provide an optimised working environment
with the correct operational equipment and facilities in strategically
located Depots and Stores to support efficient service delivery. 
2. Investment objective 2 – to streamline and increase sustainability of the
operational estate through rationalisation of the property portfolio and by
seeking opportunities for income generation from any spare capacity
identified. 
3. Investment objective 3 – to increase staff satisfaction and morale by
providing an improved working environment. 
4. Investment objective 4 – provide improved infrastructure that is capable
of ensuring the Council can meet future service needs with focus on
achieving and maintaining net zero targets. 
3.4 Benefits to be realised 
This section describes the aim and targeted outcomes and benefits associated
with the implementation of the scope in relation to business needs to be
delivered by those most directly affected (stakeholders): 
• Moving forward to a sustainable future. 
• Operational space provided to our front-line services is
sustainable.
• Operational space is future proofed. 
• Property assets meet the requirements of our staff. 
The main benefits categorised in terms of type:- 
A) Cash Releasing 
Within Asset Management Control
• Review of the property portfolio and condition, working practices and
building performance with rationalisation of energy use, including no
cost/ low-cost measures.
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• Reduced operating costs as the number of occupied sites reduces.
• Reduction in Lease costs for sites leased internally.
• Potential reductions in maintenance costs by review of Building
Conditions and Operations if buildings/sites can be disposed of. Savings
are in both backlog and future maintenance costs.
• Capital receipts if surplus property sold and as appropriate exploiting
property development potential.
• Increased external revenue income via leasing surplus assets if
identified as most cost-effective route. 
Within Service Control
• Future opportunities to generate our own power through renewable
resources and EV charging so reducing external supplier charges,
reducing carbon emissions facilitating the route to net zero.
• Review Waste Management Practices to minimise, reduce, recover,
reuse, recycle, re purpose, transform and as appropriate compost
together with residual management (i.e. minimise disposal or waste to
landfill) assisted by environmentally sound procurement (smarter
purchases).
• Reduction in fleet sizes, therefore reduction in costs and environmental
impact - due to co-location, fleet amalgamations and streamline
Transport Management. 
B) Non-Cash releasing 
Within Asset Management Control
• Reduction in Operational Estate carbon and environmental footprint due
to less sites, improved premises building condition and less buildings
overall.
• Improvement in work environment for our operational staff with efficiency
savings through integration and or amalgamation.
• Improved Health and Safety and security benefits with modern well
designed and laid out facilities. 
Within Service Control
• Reduction in overall fleet carbon emissions due to reduced vehicle 
movements due to improved operating practices and reduced fleet size. 
C) Quantitative 
Within Asset Management Control
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• Increased number of staff utilising the remaining operational depot
spaces.
• Reducing unutilised storage capacity.
• Reduction in the number of industrial units being internally leased by the
council, and by association, an increasing number available for private
lease. 
Within Service Control
• Reduced inventory value in held stock through consolidated stock
control and where feasible standardised procurement.
• Improved ability to recruit due to improved welfare facilities and working
conditions (reduction in need for re-advertising, increase in candidate
attraction) with more advanced and higher operational standards. 
D) Qualitative 
Within Asset Management Control
• Improve staff wellbeing and feeling of satisfaction working from better
workspaces which are maintained to higher standards. 
Within Service Control
• Increase in team working via integration and or amalgamation, co
located services and smarter working arrangements. 
There are some potential dis-benefits which are: - 
• Potential separation of service management teams from operational staff
due to office staff being relocated to surplus office space within the
existing portfolio that will be mitigated by excellent communication
channels. 
• Some surplus sites may have limited and or no alternative use which
may require them to be held although maintenance and running costs
would be reduced. Any surplus sites that fall into this category will be
declared surplus and offered for community uses where possible. 
Mitigation measures of these and any other dis-benefits identified during the
process will be developed and logged appropriately in a Risks, Assumptions
Issues and Dependencies (RAID) log. 
A benefits realisation process will be developed to ensure that monitoring of the
benefits can be achieved. A SMART monitoring plan to track and manage the
collective benefits associated with the programme / project delivery plan will be
appended to the full business case however, at this time the following initial
target ranges have been identified for the key benefits:
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Benefit Target 
Cash Releasing 
Reduced operating costs 10-20% reduction in operating costs
Increased external revenue income Generate £200,000 of additional
external rental income per annum.
Capital receipts Generate £50,000 in capital receipts
from surplus assets.
Non Cash releasing 
Reduction in Operational Estate carbon
footprint
Reduce carbon emissions from depot
and store estate by 20%
Quantitative 
Reduction in the number of industrial
units being internally leased
Reduce units within investment
portfolio leased internally by 5 units.
Qualitative 
Increase in team working Increase number of multi service
buildings/sites by 3 to 4 in total. 
3.5 Scope of the Project 
The majority of the Council’s depots and stores are occupied by either Roads,
Waste, Open Spaces, Direct Services and Closed Records Store, Archives and
Museum stores. In Diagram 1 below, the current depots and stores are shown
according to the following colour coding; Black = Roads, Brown = Waste, Green
= Open Spaces, Yellow = Direct Services, and Pink = CRS, Archives and
Museum stores. 
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Elgin is shown as a larger red circle as it is the location with a far greater
requirement for Stores and Operational Depot provision than elsewhere across
Moray and as such, review of this area is a substantial exercise in itself. The
larger blue circle on Elgin also signifies a number of potential site closures due
to amalgamation to a central location. 
Of all our sites, currently only Ashgrove in Elgin is a true multidiscipline depot
serving, Fleet, Roads, and Open Spaces. This site has real potential for
accommodating additional disciplines and stores.
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The table below provides a list of the sites shown on the plan above indicating
the address of the site and the service which uses the site. They are arranged
in settlements, and colour coded as per Diagram 1 above. 
Sites In Scope
No. Area Site Group Site
1 Aberlour Depots Aberlour Garage - Speyside Way
2 Archiestown Depots Skateneuk - Roads
3 Buckie Depots Freuchny - Roads
4 Buckie Depots 14 March Road East - Outside
Spaces
5 Buckie Store Buckie Drifter - CRS
6 Buckie Depots Gollachy Transfer Station &
Recycling Centre - Waste 
7 Dufftown Depots Richmond Quarry - Roads
8 Dufftown Depots Recycling Centre - Waste
9 Elgin Depots Ashgrove - Central Depot -
Multiple Services
10 Elgin Depots Cooper Park - Open Spaces
11 Elgin Depots Kirkhill Gully Waste Water
Treatment - Roads
12 Elgin Depots Moycroft Transfer Station - Waste
13 Elgin Store Ind Unit - Pinefield Store -
Occupational Therapy
14 Elgin Depots Council Workshop - 6 Chanonry
Spur - Criminal Justice
15 Elgin Store Ind Unit - 9 Chanonry Spur -
H&SCM
16 Elgin Store Ind Unit - 10 Tyock Ind Est - Direct
Services
17 Elgin Store Ind Unit - 4 Linkwood Lane -
Catering Services
18 Elgin Depots Ind Unit - 6 Chanonry Rd North -
Plus site Across Road - PTU
19 Elgin Depots Recycling Centre - Waste
20 Forres Depots Waterford Rd - Outside Spaces
21 Forres Depots Dava Garage - Roads
22 Forres Depots Wester New Forres - Roads
23 Forres Store Ind Unit - 9 West Rd - Archives
24 Forres Store Store - Museum
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25 Forres Depots Transfer Station & Recycling
Centre - Waste
26 Keith Depots Bridge St - Roads
27 Keith Depots Unit H Isla Bank Mills - Direct
Services
28 Keith Depots Balloch Rd Depot & Recycling
Centre - Waste
29 Keith Store Auchinhove Salt Store - Roads
30 Lossiemouth Depots Shore St - Open Spaces
31 Mosstodloch Depots Mosstodloch Industrial Estate -
Direct Services
32 Tomintoul Depots Conglass Lane - Roads
33 Tomintoul Depots Conglass Lane Recycling Centre -
Waste 
3.6 Out of Scope 
Some sites are currently classified for retention due to their specialist service
provision although, there may be opportunity to combine other uses at these
sites, which will require separate consideration at a later stage. These sites are
as follows:- 
Sites to Retain 
No. Area Site Group Site
8 Dufftown Depots (HWRC) Recycling Centre - Waste
32 Tomintoul Depots Conglass Lane - Roads
33 Tomintoul Depots Conglass Lane (HWRC) Recycling
Centre - Waste
5 Buckie Store Buckie Drifter - CRS
23 Forres Store Ind Unit - 9 West Rd - Archives
24 Forres Store Store - Museum 
Household Waste Recycling Centres (HWRC) in Tomintoul cannot be
amalgamated with the Roads depot due to lack of space at the depot resulting
in conflicts with pedestrian and vehicular movements. The Roads Depot in
Tomintoul must be retained to provide a strategic location for winter
maintenance due to the remote location of Tomintoul. The Household Waste
Recycling Centre will be retained in Dufftown to ensure service provision is
retained locally for this service. 
Following consideration of the similarity of building construction, use and
function it is considered that the Council’s CRS, Archives and Museum stores
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should be excluded from the scope of this review due to the specialist nature of
their storage and internal environmental condition requirements. A separate
project looking only at this Service area will be undertaken and buildings
released by this project will be considered where appropriate. 
In addition to the physical buildings and their condition that are in scope,
modernisation of the Services that occupy the buildings that are also in scope
is required to maximise the opportunities of property rationalisation which
requires an integrated collective approach by the affected services in order to
achieve the most optimised efficient solution. 
The project must therefore look at the way Services are delivered from each
property asset and consider any opportunities to optimise by driving efficiency
and increasing productivity in these Service areas. 
Initial discussions with appropriate service managers and staff have identified
the opportunity for colocation of Services and collaborative working across
Moray as opportunities to deliver efficiencies. Service operation reviews will be
required to determine exactly what is required and in which location to deliver
Services. Summary of the current initial collaboration and consultancy status is
identified in Item 4.2 Engagement Undertaken below. 
Challenge to current working practices will be required and opportunities to
maximise the use of technology, harnessing automation and digital working to
transform the working methods should be explored to ensure maximum
operational and financial benefits can be derived from the project. 
These functional reviews will require to be service specific with standardised
guidance and direction, some of which, is not a function of Asset Management. 
It is therefore recommended that to maximise the benefit of this review that the
opportunity is taken to undertake process reviews in order to establish where
service system sharing may be possible. It is recommended that some of the
savings generated by this project could be used to support services in doing
this, potentially by employing appropriate consultant support. Services should
identify what their support need will be, where it is anticipated that external
expert knowledge resource out with the organisation would be beneficial
focusing on relevant issues to ensure timely outcomes. 
To optimise site and building footprint, the priority must be to rationalise inter-
departmental operations including resources, transport, plant, equipment and
storage of goods and materials. 
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In addition to the property use and service delivery methods and systems being
in scope, further factors which might influence the recommended actions
require consideration. The specific matters that should be considered are: 
• Technology and working practices including standardisation.
• Need for decarbonisation by various means and to meet future net zero
targets.
• Future IT/digitisation strategy
• Transition to carbon zero vehicles. 
4 Economic Case 
4.1 Critical Success Factors 
CSF1 Strategic Fit How well the option provides a holistic fit and synergy
with other key elements of Moray Council strategies
including but not exclusive to the Route Map to Net Zero,
EV Strategy, PAMA. Further the option must assist the
services in maintaining or improving upon their level of
service provision in each area with flexibility for future
service developments.
CSF2 Potential VFM How well the option reduces spend by each service
relative to any investment required - the return on the
required spend (benefits optimisation). Further how well
the options provide a reduction in value of working capital
tied up as stock holding in stores, and in equipment in
depots.
CSF3 Potential Achievability How well the option is likely to be delivered effectively
and timeously in view of the complexity of the option, the
experience, capability and capacity of the partners
involved.
CSF4 Potential Affordability How well the option meets the likely availability of funding
and matches other funding constraints, including the
capital and revenue consequences associated with the
proposed investment. 
The Critical Success Factors are all intrinsically linked to management and
personnel co-operation and commitment, clearly defined programmes of works,
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financial budgets, action plans, targets, and milestones with prioritised timeous
key deliverables. 
4.2 Engagement Undertaken
Engagement with Departmental Management has been undertaken at several
stages in the development of this outline business case. Inspection of depots
has been undertaken to establish baseline for occupation. On site meetings
have been undertaken with relevant stakeholders to collect usage information
and establish what current and future changes to service delivery are planned.
Further workshops were undertaken with key strategic staff members from
operational services, Finance and Housing and Property to develop the outline
business case. 
Outcome of engagement
The following outcomes were determined by the engagement: 
• The Depots and Stores are operationally interlinked and must be treated
as one for the purpose of this review.
• The EV Strategy and future views on what will power our vehicles and
estate are an integral part of managing our operational estate and
therefore must be wholly incorporated into the review.
• Identified existing arrangements.
• Identified the key requirements for the project, related benefits and risks,
constraints and inter-dependencies.
• Consideration of option appraisals to underpin the business case.
• Agreed from all that there required to be a general reduction of
operational footprint and that this would be possible.
4.3 Options Appraisals
Option 1 As Is - Retain Existing Depots & Stores – Business as usual
This being the minimum level of capital investment to ensure the portfolio
remains compliant with all necessary legislation and regulation, with no
proposed changes to the way services operate from the sites that are in scope
of this project. 
The back log maintenance cost for the existing properties is circa £3,720k for
the Roads, Building Services, Waste, and Open Spaces sites. 
Finance –  Capital requirement minimum spend of £3,720k in order for sites
to reach a minimum B rating for condition, and a B rating for
suitability – Capital BB.  
Revenue savings nil
Benefits –  none
Risks -  Continued use of multiple sites with no reduction in running costs.
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Significant expenditure required to make all sites meet minimum
standard without any revenue savings through site reductions. 
Retains underutilised assets.   
Strengths Weaknesses
▪ Within the full control of the Property
Services Team 
▪ Does not generate savings or wider efficiency
improvements for the authority
Opportunities Threats
• None • Financial viability a concern as no
savings generated risk on Council
finances.
• Without savings required investment
may not be undertaken placing risk
that properties would full further into
disrepair and become unable to comply
with legislation. 
Option 2 Do the Minimum  
Progress a phase of property rationalisation and consolidation targeting ‘low
hanging fruit’ sites.  Specifically, sites in scope would be where teams working
from them will not require significant service transformation support.  This
option does not seek to realise additional efficiency from the wider estate or
progress the modernisation of services that operate from them. 
Potential Properties released sites:
Sites to Release Quickly
No. Area Site Group Site
7 Dufftown Depots Richmond Depot – Roads – incorporate
into Keith Depot.
16 Elgin Store 10 Tyock Ind Est
17 Elgin Store 4 Linkwood Lane
20 Forres Depots Waterford Road – Outside Spaces
21 Forres Depots Dava Garage – Roads – Surplus to
requirements
27 Keith Depots Unit H Isla Bank Mills - Direct Services –
Vacated June 2023
29 Keith Store Auchinhove Salt Store - Roads
30 Lossiemouth Depot Shore St - Open Spaces 
The above in total equates to release of 2,995 sqm of building area and
19,508sqm of site area being an initial reduction in property asset and liability. 
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Finance –  Capital Project requirement minimum of circa £500k. 
Capital BB savings circa £938k. 
Revenue savings from all depots released above circa £83k. 
Benefits –  Potential relocation of units into Elgin Ashgrove depot and closure
of other sites could generate an operating cost saving of £83k per
annum, and potential new rental income of £116k per annum.
A reduction in required works for the depots removed from the
asset base of circa £938k.
Reduction in depot and store sites requiring future maintenance
spend. 
Risks - Significant expenditure required at Waterford to remove the
current D rated properties and construct a new structure at the
Waste depot for Open Spaces. Likely cost of, circa £400k.
Expenditure also required at Ashgrove to remove the older office
portacabins. Likely cost of circa £100k.
Significant spend on remaining depots required to meet BB
standard, circa £2,780k.
Does not consider other sites like Buckie and Keith.  
Does not address issues with multiple store systems.  
Does not allow for significant reduction in floor space via 
changes in working practices. 
Strengths Weaknesses
▪ Has the ability to realise ‘low hanging fruit’
savings
▪ Within the full control of the Property
Services Team 
▪ Leaves potential inefficiency in how services
operate unchanged
Opportunities Threats
▪ Small changes to the estate could enable
conversations with services operating from
the wider estate to understand how they
would support transformation in the future
The arrangement does not consider future
proofing or optimisation of services and
accommodation for sustainability 
Option 3 Intermediate – Phased approach of property rationalisation and
service footprint reduction 
This option would anticipate significant Ashgrove, Buckie, and Forres
redevelopment to permit services to rationalise and come together in multi-
disciplined bases. Potential to develop an additional building at Ashgrove with
potential substantial reorganisation of site to maximise usage of the site.
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• Improve the operational efficiency of 4 number multi sites to deliver fit-
for-purpose facilities for the longer term. 
• Upgrade facilities to improve operation of depots and ensure continued
compliance with regulation. 
• Consider as appropriate: Refurbishment, Alter and or Extend or Design
new facilities to optimise commercial property use including reduce the
carbon impact of operating the sites. 
It is intended this would be undertaken potentially in 4 stages:
• Stage 1 – initial quick wins.
• Stage 2 – as in option 2 above with limited development required.
• Stage 3 – upgrade/development of 4 multi use sites to maximise
reduction in overall depot and store numbers.
• Stage 4 - service transformation that will enable the new property
infrastructure to be fully utilised. 
Potential properties released:
No. Area Site Group Site
4 Buckie Depot 14 March Road
6 Buckie Depot Gollachy
7 Dufftown Depots Richmond Depot – Roads – incorporate
into Keith Depot.
10 Elgin Depot Cooper Park
13 Elgin Store Pinefield Store
15 Elgin Store Unit 9&10 Chanonry Spur
16 Elgin Store 10 Tyock Ind Est
17 Elgin Store 4 Linkwood Lane
18 Elgin Store Unit 6 Chanonry Road North
20 Forres Depots Waterford Road – Outside Spaces
21 Forres Depots Dava Garage – Roads – Surplus to
requirements
27 Keith Depots Unit H Isla Bank Mills - Direct Services –
Vacated June 2023
29 Keith Store Auchinhove Salt Store - Roads
30 Lossiemouth Depot Shore St - Open Spaces 
The above in total equates to release 4,987sqm of building area and 39,584sqm
of site area being a significant reduction in property asset and burden. 
Finance –  Capital Project requirement minimum of circa £5.5m (£500k
Project Costs Option 2 + £5,000k Project costs Option 3.) 
Capital BB savings circa £1,900k.
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Revenue savings from all depots released above circa £310k in
operating costs. 
Benefits - Relocation of Services from units in Elgin to Ashgrove depot and
closure of other sites identified above could generate an operating
cost saving of £310K per annum and potential new rental income
of £192K. 
The removal of these depots would save circa £1.9m on backlog
maintenance. 
A further reduction in depot and store sites assist in driving down
future maintenance spend. 
In addition, optimising depots and stores use, enable a more
streamlined operation, smarter inventory management and
procurement, sharing facilities, services and management,
enhancing the economies of scale and can potentially improve
and create a new, unique culture in order to lower operational
costs. 
Opportunities for greater decarbonisation and to partially further
deliver a net zero depot site to help meet Council objective for
2030 and remove multiple small buildings from the estate.
Increased space utilisation at Ashgrove. 
Opportunity to move to one Stores stock holding system thus
delivering financial benefits of having one central stores system
operating across the Council. 
Expected reduction in floor space requirement delivering further
ability to combine services to existing main sites.
Ensures all areas of Moray are addressed. 
Risks  Significant expenditure required at Waterford to remove the
current D rated properties and construct a new structure at the
Waste depot for Open Spaces. Expenditure also required at
Ashgrove to remove the older office portacabins potentially
provide additional space. Financial risk due to cost price
increases for development. 
All of the above options require varying degrees of integrated
Programme and Project Management where supplemental focus
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should be on Planned Preventative action for efficiency in order
to mitigate as far as possible current reactive maintenance of the
property portfolio thus improving management of the portfolio and
better strategically targeted financial focus. 
Strengths Weaknesses
▪ Generates quick financial wins whilst phase 2
is planned
▪ Ability to move into phase 2 with evidence
that underpins service transformation
▪ Whilst the estate rationalisation is within the
control of the Property Services Team, wider
transformation activity will require
specialised resources.
Opportunities Threats
▪ Phase 1 provides an opportunity to work with
other public sector organisations to
understand how their requirements could be
integrated into phase 2 planning
▪ Services may currently and historically
operate in a way that means it is not easy to
obtain data on performance that can be used
to redesign services 
Option 4 Maximum – Property rationalisation and service transformation
in a big bang 
Plan developed to move to future state models for both the estate portfolio and
service ways of working. Likely to include a new site in or around Elgin that
would incorporate every available element of service provision that could be
delivered from such a location. This would include the moves laid out in the
previous options but also the incorporation of the Mosstodloch depot, as well
as further elements from Forres, Keith and Buckie depots. This option would
require significant service transformation. 
Initial costing for a new build single depot and store are significant and would
not appear to be feasible at this time without significant transformation, re-
organisation and investment. 
Potential properties released: 
No. Area Site Group Site
2 Archiestown Depots Skateneuk - Roads
3 Buckie Depots Freuchny - Roads
4 Buckie Depots March Road
7 Dufftown Depots Richmond Quarry - Roads
10 Elgin Depots Cooper Park - Open Spaces
13 Elgin Store Ind Unit - Pinefield Store -
Occupational Therapy
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14 Elgin Depots Council Workshop - 6 Chanonry
Spur - Criminal Justice
15 Elgin Store Ind Unit - 9 Chanonry Spur -
H&SCM
16 Elgin Store Ind Unit - 10 Tyock Ind Est - Direct
Services
17 Elgin Store Ind Unit - 4 Linkwood Lane -
Catering Services
18 Elgin Depots Ind Unit - 6 Chanonry Rd North -
Plus site Across Road - PTU
20 Forres Depots Waterford Rd - Outside Spaces
21 Forres Depots Dava Garage - Roads
22 Forres Depots Wester New Forres - Roads
27 Keith Depots Unit H Isla Bank Mills - Direct
Services
28 Keith Depots Balloch Rd Depot & Recycling
Centre - Waste
29 Keith Store Auchinhove Salt Store - Roads
30 Lossiemouth Depots Shore St - Open Spaces
31 Mosstodloch Depots Mosstodloch Industrial Estate -
Direct Services 
The above in total equates to release of 7,538sqm of building area and
52,485sqm of site area being a considerable reduction in property asset and
burden. 
Finance –  Capital Project requirement minimum of circa £20,000k. 
Capital BB savings circa £2,400k.  
Revenue savings on operating costs from all depots released
above circa £342k. 
New rental income of circa £243k. 
Benefits –  A single main site within Elgin which could maximise efficiency  
savings. 
Relocation of all units into Elgin Ashgrove depot and closure of
other sites could generate operating cost saving of £342k, and
potential new rental income of £243k. 
Reduction in required works for the depots relocated from of circa
£2.4m.
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A reduction in depot and store sites requiring future maintenance
spend. 
Opportunity to deliver a net zero site to meet Council  objective
for 2030 and  remove multiple buildings from the estate. 
Ability to deliver on the potential current and future options in fleet
and building power supply options.   
Likely to reduce overall annual running and maintenance costs for
the depots and stores. 
Purpose designed to meet services current and future operational
needs. 
Risks -  Significant financial risk due to current and ever increasing 
construction cost challenges.   
Site limitations either due to services or access may restrict 
maximum opportunity.   
Based on high level review likely that savings generated will not
support capital expenditure alone therefore significant Council
capital funds required.   
Increased fleet costs due to travel from one central depot out and
across Moray. 
Less opportunity to support locally operating services such as
Care @ Home. 
Significant move away from the Scottish Governments target of
20 Minute Neighbourhoods. 
Strengths Weaknesses
▪ Quickly offers a road map for realising
significant savings from the estate
▪ Lack of data and time to engage services
could considerably lengthen the period  for
transformational activity to be successful,
potentially reducing more speedier benefits
to be realised
▪ Whilst the estate rationalisation is within the
control of the Property Services Team, wider
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transformation activity will require specialised
resources. 
Opportunities Threats
▪ A more aggressive timescale could build a
mindset of ‘this is going to happen’ and
motivate affected services to support
planning activity
▪ Services may currently and historically
operate in a way that means it is not easy to
obtain valuable data on performance that can
be used to redesign services 
Financial Summary of the options 1 to 4 above. No inflationary figure has
been incorporated. 
Option 
Total
Annual
Operating
Cost Savings
(Revenue) 
Total
Potential
Annual New
Private
Rental
Income
(Revenue) 
Costs to
BB to
Spend
(Capital) 
Potential
Project
Costs
(Capital)
Straight 15
Year
Cumulative
Financial
Effect
Revenue cost
per annum of
capital
requirement
1 £                             
-
£                          
-
-£           
3,720,000
£                          
-
-£                          
3,720,000
£260,000
2 £                 
83,000
£              
116,000
-£           
2,782,000
-£              
500,000
-£       
297,000             
£30,000
(£230,000 off
set by £199,000
of
savings/income)
3 £              
310,000
£              
192,000
-£           
1,820,000
-£ 
5,500,000
£        
210,000             
£10,000
(£512,000 off
set by £502,000
of
savings/income)
4 £              
342,000
£              
243,000
-£           
1,320,000
-£ 
20,000,000
-£ 
12,545,000             
Too expensive 
Note – detailed updated costs are to be produced as part of the full business
case. Noting that construction costs are predicted to rise by 17% within the next
five years according to (BCIS) Building Construction Information Service. 
Service transformation savings are envisaged to be significant and additional
to the project savings noted above. These are as yet unquantified given they
are in the control of the Services and not Asset Management, but will be
delivered as a result of this projects outcomes. 
Options 1 to 4 versus the Objectives and Critical Success factors. 
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Red – Does not meet the Objective / Success factor.
Amber – Partly meets the Objective / Success factor.
Green – Fully meets the Objective / Success factor. 
Reference to: Option 1 Option 2 Option 3 Option 4
Description of
Option:
As is
Retain existing
Depots &
Stores. 
Minimum
Relocate Forres
Waterford
depot to Forres
Waste depot.
Move what can
be to Ashgrove
in Elgin with
minimal
changes to the
site after the 5S
exercise.
Intermediate
As option 2 plus
significant
Ashgrove,
Buckie, and
Keith
redevelopment
after Services
have been
challenged in
methods and
processes of
service delivery.
Maximum
As Option 3 but
a blank page
redevelopment
of Ashgrove or
development of
a new
replacement
site.
Objectives    
Objective 1:  to
provide operational
equipment and
facilities in
strategically located
Depots & Stores to
support efficient
service delivery. 
Objective 2:  to
increase
sustainability of the
operational estate
through
rationalisation and
seeking
opportunities for
income generation
from any spare
capacity identified 
Objective 3: to
increase staff
satisfaction in work
life balance through
provision of suitable
facilities. 
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Objective 4: to
provide facilities and
equipment that are
powered by carbon
neutral or carbon
zero power sources
but do not have a
negative impact on
service delivery
levels.    
CSF’S    
Strategic Fit    
Potential VFM    
Potential
Achievability    
Potential
Affordability    
Costs    
Risks    
Summary Discounted Possible Preferred Discounted 
4.4 The Preferred Option
The preferred option selected from the Options Appraisal is: 
Option 3 – Intermediate, phased approach of property rationalisation and
service footprint reduction. 
This option will involve the rationalisation of 14 depots and stores to primarily
focus on 4 multi-use facilities at Ashgrove, Buckie, Forres and Keith. This option
would be split into 3 phases with the option that phase 3 could be extended if
during the process Service development shows further opportunities for
rationalisation and consolidation. 
Option 3 was selected as the preferred option as it will provide the additional
functionality and space required at the main Moray locations while challenging
existing behaviours and processes permitting greater optimisation and
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efficiency together with significant asset reduction.  These challenges will
reduce the demand for operational Depot and Stores space so reducing the
financial demand on the Council as a whole. 
The intention will be to progress with the release of the quick release/low
hanging fruit properties first and then, develop detailed full appraisals of the
development options for Ashgrove, Buckie and Forres and develop the full
business case. For Ashgrove the business case would consider a ‘do minimum
option’ of demolition of offices and tidy up, an intermediate option of ‘some
limited reorganisation including potential single new build extension,’ and a
maximum option looking at ‘potential substantial reorganisation of Ashgrove,
including looking at potential new access points all of which could be phased
with key stage completions. Notwithstanding the options for Ashgrove all future
plans for the site will be developed with full integration with the Council’s future
plans for a zero emission fleet, where there is a desire for a green hub, which
would fit with the strategy of maximising the use of the depot. Further smaller
simpler option appraisals will be undertaken at Buckie and Forres to provide
recommendation for consolidation of assets at the site locations into one site at
each location. 
Rationalising stock keeping across the operational services will facilitate the
release of working capital through the resulting reduction in stock value. This
financial release will be further enhanced by the cultural changes required as
services amalgamate and share plant and equipment. There will be less
duplication in these critical and expensive areas. 
Carbon reduction will be achieved through having less sites that are inefficient
in their use of Carbon-based fuels, and an expected overall fleet size and
mileage reduction. There will also be an increase in Net Zero fuel utilisation for
the reduced depot estate and from our mobile fleets. 
In planning for the future, there is the potential for development towards Option
4 in relation to Ashgrove over time as demonstrated by the potential for overall
reduction in assets with greater integration if and when funds are available, and
the business case is sufficiently strong. Therefore, proposals would look at
options that permit significant staged development in the future.
5 Commercial Case 
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5.1 The Procurement Process
Procurement of any equipment or services will be undertaken using existing
contracts. 
5.2 Procurement Support and Oversight
The project will seek support from the Council procurement team at the
appropriate time to ensure all procurement within the project is progressed in
line with council guidance. Procurement support is anticipated in two areas: 
• Depot reconfiguration
• Equipment and ways of working that support service transformation. 
5.3 Anticipated Procurement Pipeline
It is considered that procurement assistance will not be required in the initial
stages of phase 1. If any minor reconfiguration is required, works will be
progressed via the Council’s repairs framework using existing procurement
processes. Any proposals to undertaken significant building works will require
to be scoped out and appropriate procurement processes included within the
full business case.   
5.4 Roles and Responsibilities
Initial procurement activities will be undertaken within Housing and Property
however, as the project progresses procurement support will be required to
support construction and service specific equipment procurement. 
6 The Financial Case
6.1 Overall Affordability
The Depots have not had the required level of maintenance spend for a number
of years as the reviews have been undertaken, and their results awaited. There
has also been further interruption by the Covid-19 pandemic. Certain works will
be required whether the Depot & Stores review is implemented as a whole or
not.  In particular, Forres Waterford depot is in a severe state of disrepair. 
The recommended option will require to be fully costed via the full business
case. It is recommended that stage 3 as outlined in the option above should be
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split into three areas being:  Elgin Area, Buckie Area and Forres Area which will
allow each to progress at the appropriate rate. 
At this stage the potential capital spend for the recommended option is circa
£7.32m which will release operational costs savings and income generation as
set out in the financial model below. The revenue cost of borrowing the £7.32m
is currently estimated at £512k per annum. The savings outlined indicate circa
£502k of annual savings or additional income. Currently there is a gap between
annual savings and the cost of borrowing of £10,000. The development of the
FBC will focus on ensuring net savings are generated to ensure no extra
pressure is placed on the Council’s capital plan with the intention that at FBC
stage the cost of borrowing should be offset by savings generated. 
6.2 Assumptions
In order to develop the financial model a number of assumptions have been
used and are outlined below. 
• Capital costs of improving the properties are based on the best
information available at this time and include current cost information or
information from previous cost assessments appropriately index linked. 
• Operating costs have been collated for all properties based on 2021/22
financial year. This will be updated throughout the development of the
business case, but the decision was made to baseline on these figures.
It is likely that these costs will have only increased in the passage of
time. 
• Where future rental income has been identified it is based on the current
estimated market rent and uplifted for future years on a compound
interest rate. 
• For the model 3, annual inflation rates have been used with 5% for
2024/25, 3% for 2025/26 and 2026/27 and then 2.5% thereafter. All costs
and incomes have had the same inflation rate applied. 
• Limited information is currently available on potential operational service
savings from the rationalisation therefore, only operational savings in
relation to the use of salt barns in Keith and Tomintoul have been
included in the model. Where other service savings can be identified,
they will be included in future versions of the model. 
• It has been assumed that all vacant surplus properties will be leased out.
The model does permit for inclusion of capital receipts instead of rental
income, and it can be adapted as required.  
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• The model sets out a basic programme of works rationalisation and if
this changes with time, the model can be updated, with associated
adjustment to future savings. 
• There has been no interest applied to the capital required for
improvements to the properties, so the payback period is simply the
accumulative revenue savings and new income covering the capital
expended. 
• The financial model assumes there is additional project staffing resource
for the first 4 years of the project at £100,000 per annum. 
6.3 Financial Model
The financial model below has been developed to illustrate the potential savings
this project will deliver. As stated previously the project’s primary focus is to
delivery financial savings to the Council and has focused on the property
savings feasible by the project. Operational financial savings could be built into
the model in future versions if it was deemed appropriate. Full details of the
model are included in Appendix ii. 
The table below provides a summary of the capital expenditure, revenue
expenditure, revenue savings and revenue income that will be provided by the
project for the first 15 years. Where a property has been removed from the
portfolio there will be a recurring saving to the Council however, the table below
shows the point at which the revenue savings have paid off the capital spend. 
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The table above shows that, following the development and implementation of
the project, significant annual savings will be generated from the rationalisation
of the properties and that new income will also be generated from the leasing
of these surplus assets. The table shows that on a simple basis, the project will
cover its costs within the first 15 years. 
Further considering the cost of the capital required to undertake the project it is
expected that the revenue savings and income generated from the project will
off set the revenue cost of the capital required. 
6.4 Financial Risks
Within a multi-year project like this, there are many potential financial risks. The
main financial risks are in  capital cost increases or where potential new income
decreases: 
• Cost price uncertainty – the capital expenditure is currently based on the
best available data until the work packages are fully designed and
costed. There is significant risk that the capital expenditure could
increase. 
• The new revenue income is based on the surplus properties being
leased. The expectation based on current demand for industrial space
that leasing the surplus units will be possible. Should there be a
downturn in the economy, this might not be the case, thus limiting the
income generated. 
Mitigation measures of these and any other dis-benefits identified during the
process will be developed and logged appropriately in a Risks, Assumptions
Issues and Dependencies (RAID) log. 
Within the financial model no allowance for income generated from sharing
space with public sector partners has been included and this is an opportunity
that should be considered as the project develops. 
6.5 Financial Management
The project will have multiple and diverse financial flows between revenue
savings, income generation and capital spend. It will be a priority that all these
flows are managed closely. It is expected that the financial support will be
required on the project. Section 7.3 of the OBC sets out the governance and
oversight of the project detailing the need for a Project Board and Delivery
Group. It is expected that financial representation will be on both of these critical
decision-making forums. 
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Decisions relating to finance will have to follow the corporate financial reporting
processes however in addition to this it is expected that following approval of
capital spend monthly updates on spend would be provided to the Project
Board. Further, as the income and operational saving targets are fully set out
and programmed, the monitoring of this will be undertaken by the Project Board. 
7 The Management Case
7.1 Resource Requirements
This programme of work is currently being managed and progressed by the
Corporate Asset Management Team within existing staffing structure. 
This project will require the expert advice and support from the following
services:- 
• Roads
• Outside Spaces
• Building Services
• Waste
• Finance
• Planning
• Asset Management- Commercial Properties
• Property
• Potentially change management support. 
It is recognised that progressing this project without project specific resource
will increase the time it will take to complete and will negatively impact on the
delivery of savings. Taking this into account, it is recommended that a budget
of circa £100,000 per annum is set aside from savings created by the
rationalisation to provide additional resource within the Team to ensure the
project progresses favourably in line with the timeframe identified below. 
7.2 Programme Management Arrangements
This programme is an integral part of good Asset Management practices and is
a direct recommendation from the Property Asset Management Appraisal
approved at Committee on 29 October 2019. Information on the progress of the
programme will be included in updates to the IMP and Housing and Property
Service Plan. 
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KPIs will be identified, agreed and appropriate reporting established in the full
business cases. 
7.3 Governance and oversight
Currently there is no project management support or resource. However, it is
recognised the project should be managed in accordance with Moray Council
project management procedures. 
7.3.1 Project reporting structure
The proposed project reporting structure is set out below: 
7.3.2 Project roles and responsibilities 
Project Board
Lead officers; Head of Housing and Property, Head of Environmental &
Commercial Services and Chief Financial Officer. 
The Project Sponsor for the Depot Review will be Head of Housing and Property
– Edward Thomas. 
The Senior Responsible Owner for the project will be the Property Asset
Manager – Neil Strachan 
Strategic Committees
Depot and Store
Review Project Board
Depot and Store
Review Delivery Group
Separate Project
Delivery Groups
(e.g. Elgin area, Buckie
area)
Asset Management
Working Group
Responsible &
Accountable
Consulted &
Informed
Transforming the
Economy Board
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The Project Manager - to be established. 
Service specific reps, along with support like legal, finance etc. 
Delivery Group
Lead by project manger
Service specific reps, along with support from finance, legal, Asset
Management. 
A full Project RACI matrix will be developed to align with the agreed project
procurement strategy as part of the development of the Full Business Case. 
It is anticipated that the Project Board and Delivery Group would meet monthly. 
7.3.3 Project plan 
The high-level indicative project plan is set out below: 
7.4 Arrangements for Change Management 
Existing Council process will be followed for any changes required and a formal
change management process will be developed prior to completion of FBC. 
7.5 Arrangement for Benefits Realisation 
The projects benefits are set out in section 3.5 of the OBC. Prior to completion
of the FBC, a detailed plan on how and when each benefit will be monitored,
Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
OBC prepare and reported to Committee
Prepare and report FBC.
Complete rationalisation of early options
Undertake Buckie project
Release Buckie properties for lease or sale
Undertake Forres design solutions
Agree design for Forres and secure approvals
Implement procurement
On site with works
Release Forres property for lease or sale
Develop design for Ashgrove
Develop programme for Ashgrove
Procure delviery method
Secure statutory consents and contractor
Commence on site works
Release rationalised properties when avaliable from Elgin
2024 2025 2026 2027
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measured and reported initially to the Project Board and Committee as
necessary. 
7.6 Arrangements for Risk Management
Risks to the overall project will be identified and recorded. They will be owned
by the Asset Management Team and reported to the Project Board. 
The strategy for the active and effective management of risk will involve: 
• identifying possible risk in advance and putting mechanisms in place to 
minimise the likelihood of them materialising with adverse effects; 
• having processes in place to monitor risks, and access to reliable, up- 
to-date information about risks;
• the right balance of control to mitigate against the adverse 
consequences of the risks, should they materialise; 
• decision making processes supported by a framework for risk analysis 
and evaluation. 
A risk register will be developed and included in the FBC.
7.7 Gateway Review Arrangements 
The council’s Project Governance Policy sets out project gateway review
arrangements. It is based on the Prince2 Project management methodology,
aligned with the Scottish Government Construction Procurement Manual and
the Office of Government Commerce (OGC) Gateway framework. A copy of
this document can be found here:  PMG – Moray Gateway Process 
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Page 113

REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE
SERVICES COMMITTEE ON 30 APRIL 2024 
SUBJECT: INFORMATION REPORT:  LIST OF PROPERTY
TRANSACTIONS CONCLUDED UNDER DELEGATED
POWERS 
BY: DEPUTE CHIEF EXECUTIVE (ECONOMY, ENVIRONMENT &
FINANCE) 
1. REASON FOR REPORT 
1.1 To inform the Committee of property transactions which have been dealt with
under delegated powers. 
1.2 This report is submitted to the Economic Development and Infrastructure
Services Committee in terms of Section III F (5) of the Council's Scheme of
Administration relating to industrial and commercial development. 
2. BACKGROUND 
2.1 In terms of the Council’s Scheme of Delegation, the Head of Housing and
Property has delegated authority to grant leases, licenses or other occupation
agreements of land and buildings for 25 years or less duration where the
initial rent does not exceed £35,000 per annum and sites on long term
building leases of up to 125 years duration where the initial rent does not
exceed £35,000 per annum. 
2.2 In terms of the Council’s Scheme of Delegation, the Head of Housing and
Property has delegated authority to conduct rent reviews and fix new rents. 
2.3 In terms of the Council’s Scheme of Delegation, the Head of Housing and
Property has delegated authority to approve acquisitions of heritable property
up to a value of £250,000 where appropriate provisions have been made in
the Capital or Revenue Plan.  For acquisitions by lease, this delegation covers
property with a rental value of up to £5,000 per annum where appropriate
provision has been made in the Capital or Revenue Plan. 
3. SUMMARY OF IMPLICATIONS 
(a) Corporate Plan and 10 Year Plan (Local Outcomes Improvement
Plan (LOIP))
The proposals support the aim of delivering financial stability. 
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(b) Policy and Legal
None.
(c) Financial Implications
The transactions detailed in APPENDICES I and II will generate
monies to the Council. 
Funds for the acquisition of the property detailed in APPENDIX III were
made from existing provision in the Housing Revenue Account. 
(d) Risk Implications
None. 
(e) Staffing Implications
None. 
(f) Property
None. 
(g) Equalities/Socio Economic Impact
None. 
(h) Climate Change and Biodiversity Impacts  
None. 
(i) Consultations
None. 
4. CONCLUSION 
4.1 It is recommended that the Committee notes the 10 leases, 17 rent
reviews and 1 acquisition of property as set out in APPENDICES I, II and
III. 
Author of Report: Stuart Beveridge, Asset Manager (Commercial Buildings)
Background Papers: 
Ref:   SB/JB 
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APPENDIX I
REPORT TO THE ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 30 APRIL 2024 
LIST OF LEASES OF BUILDINGS AND SITES – SUBMITTED FOR NOTING 
1. Reference No. 
2. Officer’s Ints
1. Address 
2. Tenant
1. Building (m²) 
2. Site (Ha) 
1. Date of Entry 
2. Review Period
Rent
(per annum)
Remarks
1. EL/645/38 
2. STBE
1. 2 High Street, Elgin 
2. Social Security Scotland
1. - 
2. -
1. 1/12/22 
2. Annually
£7,000 Permitted Use:  Licence to
use 3 desks in the Annexe.
1. BK/1/222 
2. IAWA
1. 18 March Road East,
Buckie 
2. Sarah Addison
1. 70sqm 
2. 0.03Ha
1. 20/11/23 
2. 3 years
£6,100 Permitted Use:  Storage of
automotive products.
1. EL/1/208 
2. IAWA
1. 8 Chanonry Road South,
Elgin 
2. Olleco (Company
Number 05878742)
1. 550sqm 
2. 0.13Ha
1. 1/8/23 
2. 3 years
£35,000 Permitted Use:  Storage &
distribution depot for fresh
& used cooking oils.
1. BK/482/2 
2. STBE
1. Electricity Sub-Station at
Millbank Primary School,
Buckie 
2. Scottish Hydro Electric
Power Distribution Ltd
1. 25sqm 
2. -
1. 19/1/24 
2. None
£0 Permitted Use:  Licence for
creation of replacement
sub-station.
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1. LO/1/221 
2. ALBU
1. Unit 1 Coulardbank
Business Centre,
Lossiemouth 
2. Nina Lian Lucas
1. 25sqm 
2. 0.0025Ha
1. 18/3/24 
2. 3 years
£3,960 Permitted Use:  Clothing
manufacture, ancillary
storage & training.
1. EL/555/15 
2. STBE
1. Car Park Deanshaugh
Fields, Lesmurdie Road,
Elgin 
2. Johnstons of Elgin
1. 
2. 0.37Ha
1. 12/2/24 
2. 3 years
£16,800 Permitted Use:  Staff car
parking.
1. KE/4/252 
2. ALBU
1. Unit B Balloch Road,
Keith 
2. Enercon Services UK Ltd
1. 246sqm 
2. 0.53Ha
1. 1/4/24 
2. 3 years
£12,000 Permitted Use:  Store,
workshop & ancillary
offices for wind turbine
maintenance.
1. FR/840/1 
2. STBE
1. 5/6 Culbin Road, Forres 
2. Moray Council – Housing
Revenue Account
1. 193sqm 
2. 0.03Ha
1. 1/4/24 
2. 3 years
£4,035 Permitted Use: 
Residential - Internal lease
from General Services to
Housing Revenue
Account.
1. EL/660/7 
2. SOAND
1. East Lodge, Cooper
Park, King Street, Elgin 
2. Dianne Jackson
1. 27sqm 
2. 0.03Ha
1. 1/4/24 
2. 3 years
£2,184 Permitted Use: 
Hypnotherapy practice. 
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1. EL/1/305 
2. SOAND
1. Yard A Chanonry Road
South, Elgin 
2. Sam Jarockyj
1. - 
2. 0.04Ha
1. 1/4/24 
2. 3 years
£2,700 p.a. Permitted Use:  
Storage yard for tenant’s
garden maintenance
business. 
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APPENDIX II
REPORT TO THE ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 30 APRIL 2024 
LIST OF RENT REVIEWS OF BUILDINGS AND SITES - SUBMITTED FOR NOTING 
1. Ref No.
2. Valuer’s Ints.
1. Address
2. Tenant
1. Building (m²) 
2. Site (Ha)
1. Date of Entry
2. Review Period
Interval
1. Previous Rent
2. New Rent
Remarks
1. EL/8/125 
2. ALBU
1. Unit 25 Tyock Industrial Estate,
Elgin 
2. JNK Kitchen Studios Ltd
1. - 
2. 0.12Ha
1. 1/4/79 
2. 5 years
1. £2,700 p.a. 
2. £3,150 p.a.
Permitted Use:
Manufacture & sale of
furniture &
bathroom/kitchen
fittings.
1. KE/1/107 
2. ALBU
1. 3 Westerton Road North, Keith 
2. Clark & Sutherland Ltd
1. - 
2. 0.27Ha
1. 1/1/14 
2. 5 years
1. £5,640 p.a. 
2. £8,800 p.a.
Permitted Use:
Fabrication workshop
& ancillary offices.
1. EL/1/224 
2. ALBU
1. Unit 4, 2 Chanonry Road North,
Elgin 
2. Mr Neil Ross & Mrs Mary Ross,
T/A The Blind Spot
1. 25sqm 
2. 0.003Ha
1. 1/3/15 
2. 3 years
1. £3,950 p.a. 
2. £4,160 p.a.
Permitted Use:
Office in connection
with tenant’s business
as a blinds company.
1. EL/8/232 
2. STBE
1. Unit 32 Tyock Industrial Estate,
Elgin 
2. H & M Hydraulics (Elgin) Ltd
1. 132sqm 
2. 0.04Ha
1. 9/5/03 
2. 3 years
1. £11,400 p.a. 
2. £13,300 p.a.
Permitted Use:
Manufacture & trading
of hydraulic hoses.
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1. FR/1/207 
2. IAWA
1. Unit 10 Greshop Road, Forres 
2. Stephen Andrew Duncan
1. 85sqm 
2. 0.01Ha
1. 1/11/14 
2. 3 years
1. £6,800 p.a. 
2. £7,350 p.a.
Permitted Use:
Storage of materials in
connection with a
flooring business.
1. EL/1/213 
2. IAWA
1. 4 Chanonry Road North, Elgin 
2. Michael & Nathan Clayton, T/A
Clayton Brothers
1. 70sqm 
2. -
1. 11/11/14 
2. 3 years
1. £7,400 p.a. 
2. £8,550 p.a.
Permitted Use:
Workshop & store with
yard for use in
connection with
tenant’s groundworks
& ground maintenance
business.
1. EL/5/264 
2. ALBU
1. 12 Pinefield Parade, Elgin 
2. Terry Webster & Michael Booth
1. - 
2. 0.1Ha
1. 30/11/07 
2. 5 years
1. £3,000 p.a. 
2. £4,975 p.a.
Permitted Use:
Plant hire & sales – but
amended to
engineering works for
sub-lease.
1. EL/8/223 
2. STBE
1. Unit 23 Tyock Industrial Estate,
Elgin 
2. City Electrical Factors Ltd
1. 282.2sqm 
2. 0.04Ha
1. 11/11/09 
2. 3 years
1. £19,680 p.a. 
2. £20,500 p.a.
Permitted Use:
Storage, distribution &
incidental sales of
electrical goods &
components (with
ancillary office & trade
counter) in connection
with tenant’s business. 
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1. EL/1/203 
2. IAWA
1. 5 Chanonry Spur, Elgin 
2. Callum Foster
1. 96sqm 
2. 0.01Ha
1. 19/3/12 
2. 3 years
1. £7,090 p.a. 
2. £8,450 p.a.
Permitted Use:
Car valeting & detailing
with ancillary sale of
car valeting products.
1. EL/5/274 
2. IAWA
1. Unit H Pinefield Business
Centre, Elgin 
2. Oakwood Bathrooms Ltd
(SC503493)
1. 76sqm 
2. -
1. 13/3/18 
2. 3 years
1. £5,400 p.a. 
2. £5,900 p.a.
Permitted Use:
Storage in connection
with tenant’s bathroom
installation business.
1. EL/5/127 
2. IAWA
1. Site at rear of Pinefield
Business Centre, Elgin 
2. David McKenzie
1. - 
2. 0.02Ha
1. 1/2/18 
2. 3 years
1. £1,500 p.a. 
2. £1,700 p.a.
Permitted Use:
Storage yard in
connection with
tenant’s home &
garden maintenance
business.
1. BK/1/202 
2. IAWA
1. 7, 8 & 9 March Lane, Buckie 
2. Moray Reach Out
1. 324sqm 
2. 0.08Ha
1. 18/3/03 
2. 3 years
1. £21,550 p.a. 
2. £23,200 p.a.
Permitted Use:
Can recycling
workshop & ancillary
offices.
1. EL/1/229 
2. IAWA
1. 18 Chanonry Road North, Elgin 
2. Go North Camper Conversions
Ltd (SC593845)
1. 200sqm 
2. 0.02Ha
1. 1/2/18 
2. 3 years
1. £15,800 p.a. 
2. £17,400 p.a.
Permitted Use:
Storage &
maintenance of
vehicles in connection
with tenant’s camper
van & car hire
business.
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1. HN/750/4 
2. SOAND
1. Store 4 Hopeman Harbour,
Hopeman 
2. Elizabeth Grey
1. 74sqm 
2. -
1. 13/12/05 
2. 3 years
1. £980 p.a. 
2. £1,450 p.a.
Permitted Use:
Manufacture of arts &
crafts.
1. EL/3/201 
2. STBE
1. 1 Linkwood Lane, Elgin 
2. Fiona Stokes
1. 99.9sqm 
2. 0.02Ha
1. 17/8/09 
2. 3 years
1. £8,300 p.a. 
2. £9,250 p.a.
Permitted Use:
Use as a canine
hydrotherapy centre.
1. EL/645/38 
2. STBE
1. 2 High Street, Elgin 
2. Social Security Scotland
1. 3 desks 
2. -
1. 30/12/19 
2. Annually
1. £7,000 p.a. 
2. £9,065 p.a.
Permitted Use:
Office & admin.
1. FR/2/203 
2. IAWA
1. 2 Greshop Road, Forres 
2. Maclean’s Highland Bakery
1. 122sqm 
2. 0.06Ha
1. 1/4/21 
2. 3 years
1. £10,750 p.a. 
2. £12,450 p.a.
Permitted Use:
Production of gluten
free food products. 
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APPENDIX III 
REPORT TO THE ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 30 APRIL 2024 
LIST OF ACQUISITION OF FEU - SUBMITTED FOR NOTING 
Officer
Intls
Address Description Land Owner Purchase Price Declared
Surplus
Comments
STBE  67 Balvenie Street
Dufftown
AB55 4AS
Ground floor residential
flat
Alison Richard £75,000 N/a Purchased for Housing
Revenue Account. 
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