Agenda Document Pack - Economic Development and Infrastructure Services Committee - 06/09/2022
Moray Council · 6 September 2022
Back to Economic Development and Infrastructure Services Committee — 6 September 2022 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Economic Development and Infrastructure Services Committee Tuesday, 06 September 2022 NOTICE IS HEREBY GIVEN that a Meeting of the Economic Development and Infrastructure Services Committee is to be held at Council Chambers, Council Office, High Street, Elgin, IV30 1BX on Tuesday, 06 September 2022 at 09:30. BUSINESS 1 Sederunt 2 Declaration of Group Decisions and Members Interests * 3 Minutes 3a) Minute of Economic Development, Planning and Infrastructure Appointments Committee dated 9 June 2022 7 - 8 3b) Minute of Meeting of the Economic Development and Infrastructure Services Committee dated 21 June 2022 9 - 14 3c) Minute of Economic Development, Planning and Infrastructure Appointments Committee dated 1 July 2022 15 - 16 4 Written Questions ** 5 Notice of Motion - Councillors McBain and Dunbar 17 - 18 6 Cloddach Bridge Structural Assessment Report by Depute Chief Executive (Economy, Environment and Finance) 19 - 26 Page 1
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7 National Strategy for 20mph Report by Depute Chief Executive (Economy, Environment and Finance) 27 - 34 8 Nature Restoration Fund Report by Depute Chief Executive (Economy, Environment and Finance) 35 - 42 9 Marine Safety and Operational Update Q1 2022-2023 Report by Depute Chief Executive (Economy, Environment and Finance) 43 - 52 10 Capital and Revenue Budget Monitoring to 30 June 2022 Report by Depute Chief Executive (Economy, Environment and Finance) 53 - 74 11 Economic Recovery Key Performance Indicators Report by Depute Chief Executive (Economy, Environment and Finance) 75 - 88 12 Question Time *** Consider any oral question on matters delegated to the Committee in terms of the Council's Scheme of Administration. 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. Any person wishing to attend the meeting should contact customer services on 01343 563217 prior to the meeting as the number of attendees is restricted due to the recent Covid pandemic Page 2
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You can however watch the webcast of the meeting by going to : http://www.moray.gov.uk/moray_standard/page_43661.html Page 3
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GUIDANCE NOTES * Declaration of Group Decisions and Members Interests - The Chair of the meeting shall seek declarations from any individual or political group at the beginning of a meeting whether any prior decision has been reached on how the individual or members of the group will vote on any item(s) of business on the Agenda, and if so on which item(s). A prior decision shall be one that the individual or the group deems to be mandatory on the individual or the group members such that the individual or the group members will be subject to sanctions should they not vote in accordance with the prior decision. Any such prior decisions will be recorded in the Minute of the meeting. ** Written Questions - Any Member can put one written question about any relevant and competent business within the specified remits not already on the agenda, to the Chair provided it is received by the Proper Officer or Committee Services by 12 noon two working days prior to the day of the meeting. A copy of any written answer provided by the Chair will be tabled at the start of the relevant section of the meeting. The Member who has put the question may, after the answer has been given, ask one supplementary question directly related to the subject matter, but no discussion will be allowed. No supplementary question can be put or answered more than 10 minutes after the Council has started on the relevant item of business, except with the consent of the Chair. If a Member does not have the opportunity to put a supplementary question because no time remains, then he or she can submit it in writing to the Proper Officer who will arrange for a written answer to be provided within 7 working days. *** Question Time - At each ordinary meeting of the Committee ten minutes will be allowed for Members questions when any Member of the Committee can put a question to the Chair on any business within the remit of that Section of the Committee. The Member who has put the question may, after the answer has been given, ask one supplementary question directly related to the subject matter, but no discussion will be allowed. No supplementary question can be put or answered more than ten minutes after the Committee has started on the relevant item of business, except with the consent of the Chair. If a Member does not have the opportunity to put a supplementary question because no time remains, then he/she can submit it in writing to the proper officer who will arrange for a written answer to be provided within seven working days. Page 4
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THE MORAY COUNCIL Economic Development and Infrastructure Services Committee SEDERUNT Councillor Marc Macrae (Chair) Councillor Amber Dunbar (Depute Chair) Councillor Peter Bloomfield (Member) Councillor John Cowe (Member) Councillor John Divers (Member) Councillor David Gordon (Member) Councillor Juli Harris (Member) Councillor Sandy Keith (Member) Councillor Graham Leadbitter (Member) Councillor Paul McBain (Member) Councillor Shona Morrison (Member) Councillor Draeyk Van Der Horn (Member) Councillor Sonya Warren (Member) Clerk Name: Lissa Rowan Clerk Telephone: 07765 741754 Clerk Email: committee.services@moray.gov.uk Page 5
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MORAY COUNCIL Minute of Meeting of the Economic Development, Infrastructure and Planning Services Appointments Committee Thursday, 09 June 2022 Remote Locations via Video-Conference PRESENT Councillor Peter Bloomfield, Councillor Neil Cameron, Councillor John Cowe, Councillor John Divers, Councillor Donald Gatt, Councillor David Gordon, Councillor Graham Leadbitter, Councillor Marc Macrae, Councillor Sonya Warren IN ATTENDANCE Depute Chief Executive (Economy, Environment and Finance), Head of Human Resources and ICT and Mrs L Rowan, Committee Services Officer. 1 Chair Councillor Macrae, being Chair of the Economic Development, Infrastructure and Planning Services Appointments Committee, chaired the Meeting. 2 Resolution The meeting resolved that in terms of Section 50A (4) and (5) of the Local Government (Scotland) Act 1973, as amended, the public and media representatives be excluded from the meeting during consideration of the items of business appearing at the relevant paragraphs of this minute as specified below, so as to avoid disclosure of exempt information of the class described in the appropriate paragraphs of Part 1 of Schedule 7A of the Act. Paragraph No. of Minute Paragraph No. of Schedule 7A 3 1 3 Shortleet for Appointment of Head of Environmental and Commercial Services [Para 1] The Committee noted that there were 5 applicants for the post of Head of Environmental and Commercial Services. During discussion surrounding the arrangements for the recruitment process, Councillor Divers raised concern that the meeting, which had originally been arranged to be held in person in the Committee Room, was changed to a virtual meeting. Item 3a) Page 7
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In response, the Depute Chief Executive (Economy, Environment and Finance) advised that, as the shortleeting process is a paper exercise, it was considered that a virtual meeting would be acceptable. Councillor Gatt stated that he would prefer future Appointments Committee meetings to be held in person as, in his opinion, it aided the selection process. The Head of Human Resources and ICT advised that the only part of the process which involved the Elected Members seeing the candidates either face to face or virtually was the presentation during the Assessment Centre day. The Depute Chief Executive (Economy, Environment and Finance) advised that the Candidate Pack, which was agreed in April to accommodate timing constraints, stated that the selection process would be carried out virtually therefore, while Candidates may be asked to attend in person, this could not be required. She further advised that for the Assessment Centre, if one Candidate did not wish to attend in person, then the process would have to proceed virtually so as not to discriminate. This was noted. The Chair noted the view of the Committee in terms of an in person selection process and asked that Candidates selected to attend the next stage of the recruitment process be invited to attend in person as opposed to virtually. In response, the Head of Human Resources and ICT agreed to progress this request. Following consideration, the Committee agreed that Candidates 1 and 4 be invited to attend the next stage of the selection process and that both Candidates be asked to attend in person. Page 8
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MORAY COUNCIL Minute of Meeting of the Economic Development and Infrastructure Services Committee Tuesday, 21 June 2022 Council Chambers, Council Office, High Street, Elgin, IV30 1BX PRESENT Councillor Peter Bloomfield, Councillor John Cowe, Councillor John Divers, Councillor Amber Dunbar, Councillor David Gordon, Councillor Juli Harris, Councillor Sandy Keith, Councillor Graham Leadbitter, Councillor Marc Macrae, Councillor Paul McBain, Councillor Shona Morrison, Councillor Kathleen Robertson, Councillor Sonya Warren Councillor Van Der Horn planned on joining the meeting remotely however due to technical difficulties this was not possible. He therefore took part by watching the live webcast and emailed questions and comments which were put to the Chair by the Legal Adviser via Committee Services. IN ATTENDANCE Depute Chief Executive (Economy, Environment and Finance), Acting Head of Environmental and Commercial Services, Head of Economic Growth and Development, Head of Housing and Property, Environmental Protection Manager, Consultancy Manager, Waste Manager, Legal Services Manager and Mrs Lissa Rowan, Committee Services Officer as Clerk to the Committee. 1 Chair Councillor Macrae, being Chair of the Economic Development and Infrastructure Services Committee, chaired the Meeting. 2 Declaration of Group Decisions and Members Interests In terms of Standing Order 20 and the Councillors’ Code of Conduct, there were no declarations from Group Leaders or Spokespersons in regard to any prior decisions taken on how Members will vote on any item on the agenda or any declarations of Member’s interests in respect of any item on the agenda. 3 Resolution The meeting resolved that in terms of Section 50A (4) and (5) of the Local Government (Scotland) Act 1973, as amended, the public and media representatives be excluded from the meeting during consideration of the items of business appearing at the relevant paragraphs of this minute as specified below, so as to avoid disclosure of exempt information of the class described in the appropriate paragraphs of Part 1 of Schedule 7A of the Act. Item 3b) Page 9
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Paragraph No. of Minute Paragraph No. of Schedule 7A 13 8 and 9 4 Minute of Meeting dated 22 March 2022 The Minute of the meeting of the Economic Development and Infrastructure Services Committee dated 22 March 2022 was submitted and approved. 5 Withdrawal of Cloddach Bridge Structural Assessment Report The Chair stated that Item 6 “Cloddach Bridge Structural Assessment” had been withdrawn as an electronic petition had been received outwith the statutory 3 day notice period. He stated that Officers will review the petition and update the report, if necessary, for submission to a future meeting of this Committee. This was noted. 6 Written Questions The Committee noted the following written question from Councillor Warren: Many constituents have been in contact regarding the process the Council use for weed control, many seeing it as a blanket, indiscriminate use of weed killer along many of our paths, parks and playing fields. I’ve been informed by officers that the weed killer that we use contains glyphosate, which can be harmful to wildlife, humans and our environment. It is also my understanding that some authorities have already stopped using Glyphosate for weed control. Can details be provided in regard to the process that is used to decide which areas are treated in this manner, if other alternative methods can be used for weed control in these areas; what best practice can be learned from other authorities, and whether this includes stopping the use of weed killers containing glyphosate? RESPONSE The Council does use weed-killer to manage vegetation growth on paths, verges and hard standing where the active ingredient used is glyphosate, a legally approved (UK and Europe) non-selective systemic weed killer. The effective use of this weed killer allows us to manage our open spaces (e.g. around obstacles such as lampposts, cemetery paths and Highway streets) in a cost effective manner. That said we do try to minimise usage and we also utilise other forms of weed/vegetation control such as strimming and mulching of shrubberies. Benchmarking has recently been carried out via APSE (Association for Public Service Excellence). Some authorities have used Foam Stream Systems. These systems do work on hard standing areas, but more frequent visits are required. Also, due to the restriction of the hoses, packing and unpacking when the vehicle needs to move means that they have limited use. They wouldn't be suitable for treating long linear areas along footpaths, highways and housing estates, although could well be a great alternative for play areas, game courts, public realm etc. We understand that they can’t be used on landscaped areas as they would have a detrimental effect on plants and soil structure. Page 10
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In conclusion there are some alternatives to glyphosate however they all come with their own factors or environmental factors that must be considered when making a decision on what control measures are being used, this would also include additional treatments due to weed control being less effective. • Additional or increased costs for alternative products, • Increased resources and costs for additional labour and vehicles including fuel. • Environmental factors, additional significant water usage, CO2 emissions. • Public disruption, application in busy areas, hoses, foam, hot steam. ( hoses, pipes trailer, generators are not suitable for many areas tangled / a trip point) • Effectiveness of treatment/need for additional treatments and site visits (resources and costs) Officers are keeping an open mind regarding alternatives and continue to use all chemicals intelligently. Councillor Warren noted the response from Officers and stated that the use of glyphosate will be been banned in Europe from December 2022 therefore asked that a report be brought to a future meeting of this Committee in this regard due to public concern. In response, the Acting Head of Environmental and Commercial Services agreed to this request. 7 Forres Town Centre Improvement Plan - Funding Opportunity Under reference to paragraph 10 of the Minute of the meeting of the Planning and Regulatory Services Committee on 18 January 2022, a report by the Depute Chief Executive (Economy, Environment and Finance) informed the Committee of funding opportunities that could help to deliver the Forres Town Centre Improvement Plan and sought the authorisation to submit Expressions of Interest to the funders by no later than 31 July 2022. During discussion surrounding the Town Centre Improvement Plans, the previous success of the 4 Towns Partnership was highlighted in relation to sharing funding and ideas, and it was queried whether consideration could be given to re- establishing the 4 Towns Partnership. In response, the Depute Chief Executive (Economy, Environment and Finance) advised that if Members would like to see the 4 Towns Partnership reinstated, this would need to be the subject of a report where resource implications could be outlined and offered to circulate information amongst members in the first instance so that a Notice of Motion could be brought for consideration to the Committee if this was to be considered further. This was agreed. Thereafter, the Committee agreed: (i) to approve the submission of Expression of Interests to the National Lottery Heritage Fund and Historic Environment Scotland to support delivery of the Forres Town Centre Improvement Plan, with no financial or contractual obligations to Council; Page 11
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(ii) if successful, to consider a further report in November / December 2022 concerning submission of applications for the development phase; and (iii) that information including resource implications in relation to the possible reinstatement of the 4 Towns Partnership be circulated to members following the meeting. 8 Marine Safety and Operational Summary of 2021-2022 and Update for Q4 2021-2022 Under reference to paragraph 6 of the Minute of the meeting of the Economic Development and Infrastructure Services Committee dated 20 March 2018, a report by the Depute Chief Executive (Economy, Environment and Finance) informed the Committee on matters of Marine Safety and compliance with the Port Marine Safety Code for the year 2021/22 and details of Q4 2021/22. Following discussion where officers answered Members' questions in relation to pilot training, maintenance costs and activity of the dredger, safety related works at Buckie Harbour, CCTV at Buckie Harbour, monitoring of life saving equipment and green harbour plans, the Committee joined the Chair in commending the Buckie Harbour Master who had successfully promoted the use of Buckie Harbour at the recent Skipper Expo 2022 in Aberdeen and thereafter agreed to note the safety performance, fulfilling its function as Duty Holder under the Port Marine Safety Code. 9 Scottish Local Authorities Economic Development Indicator Framework Report 2020-21 A report by the Depute Chief Executive (Economy, Environment and Finance) informed the Committee of the performance of Moray Council in the Scottish Local Authorities Economic Development, Indicators Framework Report 2020-21. Following consideration, the Committee noted that the Council had paid out Covid 19 Business Support Funds of £33 million and joined the Chair in commending the staff in the effective administration of this large amount of money to support local businesses and thereafter agreed to note the performance of the Council’s economic development activity and benchmarking against other local authorities through the Scottish Local Authorities Economic Development Group Indicator Framework Report. 10 Performance Report (Economic Growth and Development Services) - Period to March 2022 Under reference to paragraph 5 of the Minute of the meeting of Moray Council dated 7 August 2019, a report by the Depute Chief Executive (Economy, Environment and Finance) informed the Committee of the performance of the service for the period to 31 March 2022. Following consideration, the Committee agreed to note: (i) performance in the areas of Service Planning, Service Performance and other related data to the end of March 2022; and Page 12
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(ii) the actions being taken to improve performance where required. 11 Performance Report (Environmental and Commercial Services) - Period to March 2022 Under reference to paragraph 5 of the Minute of the meeting of Moray Council dated 7 August 2019, a report by the Depute Chief Executive (Economy, Environment and Finance) informed the Committee of the performance of the service for the period to 31 March 2022. During discussion surrounding the performance of the Catering Team, it was noted that they had received the Soil Association "Food for Life Served Here" bronze award in recognition that a minimum of 75% of dishes are freshly prepared and free from undesirable trans fats, sweeteners, additives and all genetically modified ingredients, which was commended by the Committee. During further discussion in relation to the Rothes Play Park Programme, it was noted that positive feedback towards the Open Space Team had been received at the Rothes Community Council and it was asked that this be passed on to the Team. In response, the Environmental Protection Manager thanked the Committee for the commendation which he would ensure was passed on to the Team. In relation to the cost of providing commercial services, it was noted that these costs had remained consistently low and the Service were commended in this regard. Thereafter, the Committee: (i) agreed to note performance in the areas of Service Planning, Service Performance and other related data to the end of March 2022; (ii) agreed to note the actions being taken to improve performance where required (iii) joined the Chair in commending the performance staff in the following Services: • the Catering Team in achieving the “Food for Life Served Here” bronze award in recognition that a minimum of 75% of dishes are freshly prepared and free from undesirable trans fats, sweeteners, additives and all genetically modified ingredients; • the Open Space Team in providing the Rothes Play Park Programme; and • Commercial Services in relation to maintaining low costs for the provision of the service. 12 Question Time Under reference to paragraph 9 of the Minute of the meeting of this Committee dated 22 March 2022, Councillor Warren stated that some people are not aware of the Dial M Service, in particular those who may not use social media and asked that consideration be given to advertising the service in other ways over and above social media platforms. Page 13
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In response, the Acting Head of Environmental and Commercial Services advised that she would explore other ways to advertise the Dial M Service. Under reference to paragraph 14 of the Minute of the meeting of this Committee dated 22 March 2022, Councillor Warren again highlighted the struggles Small and Medium-sized Enterprises (SMEs) are having with rising energy costs and asked if the Chair would consider writing to the UK Government highlighting this issue and ask for support for SMEs in this regard. In response, the Chair agreed to write to the UK Government highlighting the struggles of SMEs in relation to rising energy costs and ask for support for SMEs in this regard. Under reference to paragraph 14 of the Minute of the meeting of this Committee dated 22 March 2022, Councillor Warren sought an update in relation to the success of the Scottish Workplace Challenge. In response, the Consultancy Manager advised that 39 organisations had taken part and Moray Council had been 8th overall achieving 338 sustainable journeys equalling 1912 miles saving £348. With regard to the overall carbon reduction, the Consultancy Manager did not have this information available however agreed to circulate this to the Committee following the meeting. Councillor Warren thanked the Consultancy Manager for the update and stated that she hoped the Council would take part again next year. Councillor Divers made reference to pedestrian crossings and queried whether there was a change in the contract which had resulted in delays to the crossings at Forres, Elgin and New Elgin and sought an update as to when this would take place. In response, the Acting Head of Environmental and Commercial Services agreed to provide this information to the Committee following the meeting. 13 Dallachy Gate Fee [Para 8 and 9] As Councillor Van Der Horn was taking part in the meeting by watching the live webcast, he could not take part in this item as it is confidential and not webcast live. A report by the Depute Chief Executive (Economy, Environment and Finance) asked the Committee to note a revision to the gate fee at Dallachy Landfill site. Following consideration, the Committee agreed to approve the Chief Executive’s use of delegated authority as per the briefing presented at Corporate Management Team (CMT) on 28 April 2022 as set out in paragraph 4.17 of the report. Page 14
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MORAY COUNCIL Minute of Meeting of the Economic Development, Infrastructure and Planning Services Appointments Committee Friday, 01 July 2022 Council Chambers, Council Office, High Street, Elgin, IV30 1BX PRESENT Councillor Peter Bloomfield, Councillor Neil Cameron, Councillor John Cowe, Councillor John Divers, Councillor Donald Gatt, Councillor David Gordon, Councillor Graham Leadbitter, Councillor Sonya Warren APOLOGIES Councillor Marc Macrae IN ATTENDANCE Also in attendance were the Depute Chief Executive (Economy, Environment and Finance), Head of HR, ICT and Organisational Development and Tracey Sutherland, Committee Services Officer. 1. Chair of Meeting The meeting was chaired by Councillor Donald Gatt. 2. Declaration of Group Decisions and Members Interests * In terms of Standing Order 20 and the Councillors’ Code of Conduct, there were no declarations from Group Leaders or Spokespersons in regard to any prior decisions taken on how Members will vote on any item on the agenda or any declarations of Member’s interests in respect of any item on the agenda. 3. Resolution The meeting resolved that in terms of Section 50A (4) and (5) of the Local Government (Scotland) Act 1973, as amended, the public and media representatives be excluded from the meeting for Item 4 of business on the grounds that it involves the likely disclosure of exempt information of the class described in the relevant Paragraphs of Part 1 of Schedule 7A of the Act. Para number of Minute Para Number of Schedule 7a 4 1 Information relating to staffing matters. Item 3c) Page 15
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4. Recruitment of Head of Environmental and Commercial Services A report by the Depute Chief Executive (Economy, Environment and Finance) asked the Committee to consider the candidate reports and overarching summary report in terms of the agreed Recruitment and Selection of Senior Policy Staff. Following consideration the Committee agreed to: i) note the summary candidate reports; and ii) accept the recommendation to make a permanent appointment. Page 16
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Notice of Motion to Economic Development and Infrastructure Committee 6th September 2022 The current Scottish Government promised to ‘ensure that 100 per cent of premises across Scotland have access to super-fast broadband by 2021’ but even before the pandemic, this was not on track to be met. Work will now run until at least 2027. The continued delays on delivering broadband have been unacceptably slow. Superfast and reliable broadband is vital for Moray, particularly as we emerge from the pandemic and see working from home continuing for many. Yet, we continue to have slow speeds particularly in our more rural communities. As a result, we ask the committee to consider the following motion: The committee recognises the lack of progress by the Scottish Government on rolling out super-fast broadband across Moray and the impact this is having on individuals and businesses. The committee asks the chair to write to the Deputy First Minister for an update on plans for roll out and detail as to what action is being taken to speed up timescales to achieve 100% super-fast broadband coverage. Proposer: Cllr Paul McBain Seconder: Cllr Amber Dunbar Item 5 Page 17
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REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 6 SEPTEMBER 2022 SUBJECT: CLODDACH BRIDGE STRUCTURAL ASSESSMENT BY: DEPUTE CHIEF EXECUTIVE (ECONOMY, ENVIRONMENT AND FINANCE) 1. REASON FOR REPORT 1.1 To inform the Committee of the structural condition of Cloddach Bridge which is currently closed in the interest of public safety and advise on the options available for the future operation of this bridge. 1.2 This report is submitted to Committee in terms of Section III (F) (15) of the Council's Scheme of Administration relating to management and implementation of the requirements of the Roads (Scotland) Act 1984. 2. RECOMMENDATION 2.1 It is recommended that Committee agree: (i) Cloddach Bridge remains closed to vehicular traffic but open to pedestrians and cyclists with regular inspections to monitor the condition of the bridge; and (ii) when bridge condition deteriorates further and it is not considered safe for any user, this route is closed permanently and the bridge is removed. 3. BACKGROUND 3.1 Cloddach Bridge was built in 1905 with an estimated design-life of between 100 and 120 years, after which it would require significant refurbishment or replacement. This bridge is located on the C2E road and a traffic survey undertaken in 2020 showed the average number of vehicles crossing the bridge each day was less than 800. 3.2 Principal Inspections were undertaken on the bridge in 1995, 1997 and 2019. In 2001 a weight restriction of 7.5 Tonnes was applied to the bridge and following the Principal Inspection and Structural Assessment undertaken in 2019, the allowable weight was reduced to 3 Tonnes. Item 6 Page 19
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3.3 To deter non-compliant vehicles from crossing the bridge a 2m height restriction was installed in summer 2021. However, the height restriction was hit repeatedly by non-compliant vehicles over a period of several months. 3.4 A Special Inspection and Load Capacity Review was undertaken by officers in February 2022, to establish how much the bridge had deteriorated and the impact the deterioration had on the load bearing capacity The findings of this assessment indicate significant deterioration and a load bearing capacity of less than 3 Tonnes. Based on this assessment Cloddach Bridge was temporarily closed to motor vehicles in the interest of public safety. The maximum length of diversion required because of this closure is 6 miles. 3.5 To verify the condition of Cloddach Bridge an independent Structural Engineer was commissioned to undertake a Principal Inspection and Structural Assessment. The independent Structural Assessment used more complex analysis techniques that provide more detail on the structural condition of the bridge. The Inspection took place in mid-February 2022, with the Structural Analysis completed by the end of March. The report of the Principal Inspection and Structural Assessment has been uploaded as an additional document to the Committee Management Information System (CMIS) along with the agenda. A summary of the findings is provided below. 3.6 Findings of the independent Principal Inspection and Structural Assessment: • The Principal Inspection (PI) –confirmed that substantial corrosion has occurred to the steel beams. The concrete arches between the beams and the steel soffit are showing significant signs of deterioration. These defects are commensurate with the age of the bridge, which is at the end of its service life. • Structural Assessment – The Structural Assessment confirms that the bridge does not have sufficient capacity for vehicle loading. Details of the analysis are provided in the Principal Inspection and Structural Assessment report. • Recommendations – The Assessment report recommends that Cloddach Bridge should remain closed to all vehicular traffic. With continued monitoring, the bridge could remain open to pedestrians and cyclists for a period of approximately two years. 3.7 Potential options for the future operation of Cloddach Bridge have been identified and these are provided below. A cost estimate has been provided for each option by the independent Structural Engineer and this estimate includes a nominal allowance of approximately 15% for risk. Given that construction inflation is currently 30% and there are a number of uncertainties associated with the repair and replacement works, 15% is considered optimistic. At this stage in a construction project it is standard practice to add optimism bias of 60%. As a small risk allowance has already been included, optimism bias of 45% has been added to the options requiring construction works. 3.8 Do Nothing – This would allow the bridge to remain open to pedestrians and cyclists only without further intervention from the Council. Vehicles would be prevented from crossing the bridge by the barriers currently in place on either Page 20
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side of the bridge. This option is considered a risk to public safety as no inspections would be undertaken to monitor the condition of the bridge and suitability for pedestrian and cycle use. There would also be no turning facilities for motor vehicles. There are no costs or economic benefit associated with the Do Nothing option. 3.9 Do Minimum – The bridge would remain open to pedestrians and cyclists only but the structure would be inspected and its condition monitored. Further deterioration of the bridge is likely to result in a full closure. A long term road closure would be required, with ancillary works such as signage and turning facilities for motor vehicles. Erection of bollards or other substantial structure would be required to prevent vehicle access while allowing access for pedestrians and cyclists. The cost estimate for this option is £135,000. It should be noted that there will be additional costs required to implement a full road closure when this becomes necessary. There is no economic benefit associated with this option. Costs Bollards Signage & Inspections Stopping Up Order Turning Head Construction Works Optimism Bias Total £50,000 N/A £85,000 N/A N/A £135,000 3.10 Close and Demolish Bridge – the bridge would be closed to all users and a Stopping Up Order would be progressed. Stopping Up requires the river channel to be reinstated to its condition before the bridge was constructed and the land returned to the landowner(s). The bridge, including abutments and piers would need to be removed and the channel made good. The cost of demolition is estimated to be £333,500. This cost estimate does not include any work that may be required to remove the weir which forms part of the bridge structure. Any work to the weir would need to be done under licence from SEPA. There is no economic benefit associated with this option. Costs Bollards & Signage Stopping Up Order Turning Head Construction Works Optimism Bias Total £15,000 £10,000 £85,000 £120,000 £103,500 £333,500 3.11 Repair the bridge for pedestrian and cycle use – The bridge would remain closed to vehicles but strengthening the deck could extend the life of the bridge for pedestrian and cycle use by 10 years. There is a risk that the grit blasting required to repaint the steelwork would reveal further deterioration that could not be observed during the Principal Inspection. If this were to occur it could significantly increase the cost of this option. The estimated cost of this option is £435,000. There is no economic benefit associated with this option. Costs Bollards & Signage Stopping Up Order Turning Head Construction Works Optimism Bias Total £15,000 N/A £85,000 £200,000 £135,000 £435,000 Page 21
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3.12 Repair the bridge for vehicular use – This option would require complete refurbishment of the bridge deck and parapet. There would also need to be extensive river bank repairs and repairs to the concrete substructure. It is estimated that this option could increase the service life by 50 years. Given the uncertainty with the condition of elements of the bridge that could not be accessed for inspection, the risk associated with this option is considered significant. The estimated cost of this option is £2,537,500. The economic benefit of this option is £74,000 per year. Costs Bollards Signage & Inspections Stopping Up Order Turning Head Construction Works Optimism Bias Total N/A N/A N/A £1,750,000 £787,500 £2,537,500 3.13 Demolish and replace Cloddach Bridge – This would require demolition of the exiting bridge and construction of a new single span bridge, which would have a design life of 120 years. The estimated cost of this option is £2,900,000. The economic benefit of this option is £74,000 per year. Costs Bollards Signage & Inspections Stopping Up Order Turning Head Construction Works Optimism Bias Total N/A N/A N/A £2,000,000 £900,000 £2,900,000 3.14 Cloddach Bridge is not currently in the Capital Plan for expenditure on repair or replacement. Replacement of this bridge is considered low priority as it is not a critical route and the maximum diversion route is 6 miles. To be classed as a critical route the bridge would need to carry more than 7,000 cars per day, provide sole access to more than 8 properties or provide access to critical infrastructure such as a fire station or hospital. 3.15 A petition was submitted to Moray Council on 21 June 2022, asking for the repair or replacement of Cloddach Bridge so that it can be re-opened to vehicular traffic. The petition has 769 signatures, of which 456 are residents in Moray. A total of 25 comments were made by the petitioners, most of which refer to the inconvenience of an increase in travel time caused by the closure of Cloddach Bridge. The diversion route is through Elgin and adds a distance of 3 miles from either side of the bridge, resulting in a maximum diversion of 6 miles. The additional journey time was assessed during different traffic conditions once at 08.15 hrs and again at 14:00 hrs and was found to be between 15 and 12 minutes respectively. Under Section 6 of the Council’s Petitions Policy, the petition should contain the names and full addresses of 50 signatories resident in Moray and who are registered on the elector register. These names and addresses need to be verified. As the petition was an on-line petition, it only showed names and postcodes and no signatures and therefore did not strictly meet the requirements of the Council’s current petitions policy. A copy of the petition statement is provided in Appendix A. Page 22
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4. SUMMARY OF IMPLICATIONS (a) Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) “Building a better future for our children and young people in Moray” (b) Policy and Legal Moray Council in its role as Local Road Authority has a statutory duty under the Roads (Scotland) Act 1984 to manage and maintain the road network. (c) Financial implications The financial implications are set out in paragraphs 3.9, 3.10, 3.11, 3.12 and 3.13 of this report. When the Council approved the budget for 2022/23 on 22 February 2022 (paragraph 3 of the Minute refers) it balanced only by using reserves and one-off financial flexibilities. The indicative 3 year budget showed a likely requirement to continue to make savings in the order of £20 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. (d) Risk Implications Cloddach bridge does not have the capacity to withstand vehicle loading and there would be a risk to public safety if the bridge were to be re- opened to vehicular traffic without significant repair or replacement. There are a number of unknowns associated with demolition, repair and replacement of the bridge and there is a risk that the cost of undertaking these works will increase. It should also be noted that post COVID construction inflation is currently around 30%. There is still uncertainty around how much this may increase in future and there is a risk that costs could increase significantly over the next few years. In addition, prioritising a bridge in departure from policy creates the risk that other communities will seek to alter the prioritisation of bridges in their area which would exacerbate cost pressures as set out in paragraph (c) above. Foths Bridge was viewed as an exceptional departure from policy in 2021/22 because a spend to save case could be made given the need for changes to school transport arrangements which created additional costs. There are no such considerations for Cloddach Bridge. (e) Staffing Implications There are no staffing implications associated with the recommendations in this report. If another option is to be progressed, staff costs would be added to the overall project costs. Page 23
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(f) Property Cloddach Bridge currently vests with Moray Council in its role as Road Authority. If the bridge is closed and the road is Stopped Up, the land on which is has been constructed will need to be reinstated and returned to the landowner. (g) Equalities/Socio Economic Impact If the bridge remains closed to vehicular traffic, a maximum diversion of 6 miles may affect some car users. (h) Climate Change and Biodiversity Impacts Where possible we would seek to recycle and / or reuse the waste material generated through demolition of the existing bridge. (i) Consultations Depute Chief Executive (Economy Environment and Finance), Head of Environmental and Commercial Services, P Connor Principal Accountant, Legal Services Manager, Equal Opportunities Officer and L Rowan, Committee Services Officer have been consulted and their comments incorporated into the report 5. CONCLUSIONS 5.1 Cloddach Bridge is currently closed to vehicular traffic, in the interest of public safety. 5.2 The bridge can be used by pedestrians and cyclists, if regular inspections are undertaken to monitor its condition. 5.3 The bridge cannot be reopened to vehicular traffic without significant repair work or replacement. This bridge is not considered strategically important for the reasons set out in paragraph 3.14 and has not been prioritised for capital expenditure on repair or replacement. Author of Report: Debbie Halliday, Consultancy Manager Background Papers: Principal Inspection and Assessment Report - Fairhurst. Ref: SPMAN-524642768-743 SPMAN-524642768-744 Page 24
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REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 6 SEPTEMBER 2022 SUBJECT: NATIONAL STRATEGY FOR 20 MPH BY: DEPUTE CHIEF EXECUTIVE (ECONOMY, ENVIRONMENT AND FINANCE) 1. REASON FOR REPORT 1.1 To update the Committee on the Scottish Government’s National Strategy for 20mph which aims to ensure all appropriate roads in built-up areas have a safer speed limit of 20mph by 2025. 1.2 This report is submitted to Committee in terms of Section III (F) (17) of the Council's Scheme of Administration relating to the Council’s function in dealing with traffic and transport management functions. 2. RECOMMENDATION 2.1 It is recommended that Committee: i) notes that Transport Scotland are gathering information from local authorities with respect to 20mph speed limits and zones, after which it is anticipated that Transport Scotland will provide further guidance, information on funding and a timetable for implementation; and ii) agrees to review forthcoming guidance and information on funding before proceeding with any new 20mph speed limits or 20mph zones in Moray. 3. BACKGROUND 3.1 The ability for Roads Authorities to set a speed limit of 20mph on public roads was introduced in 1990 and at that time was through an application to the Secretary of State for a 20mph zone. The aim of the new 20mph speed limit was to improve the perception of safety amongst vulnerable user groups encouraging walking and cycling and to reduce the severity of any collision. 3.2 In 1999 the law was changed by the Road Traffic Regulation Act (Amendment) Order 1999, which enabled the Roads Authority to set a 20mph speed limit through the use of a Traffic Regulation Order without the need to seek permission. Two types of 20mph speed limits are possible: Item 7 Page 27
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• 20mph limits – which consist of just a speed limit change to 20mph which is indicated by the speed limit (and repeater) signs and is suitable for use on roads where vehicle speeds are already low; and • 20mph zones – which are designed to be ‘self-enforcing’ through the introduction of traffic calming measures along with the speed limit and supporting signage. 3.3 To date Moray Council has introduced 20mph speed limits/zones in the following locations: Clifton Road and Seatown, Lossiemouth (2002), Findhorn (2009), Cockmuir Place, Elgin (2012) and Garmouth (2015). A number of recent housing developments have been designed to encourage lower speeds of around 20mph, although they are not subject to a formal 20mph speed limit. Temporary 20mph speed limits have also been introduced on the public roads around schools in Moray. There are also advisory ‘20s Plenty’ zones at Grant Drive, Forres and Den Crescent in Keith. Speed surveys of the existing 20mph in Findhorn, Garmouth and on Clifton Road show good levels of compliance. However it should be noted that the layout of the road network and levels of activity on these streets, along with the introduction of physical measures in Findhorn and on Clifton Road, assist with lowering vehicle speeds. 3.4 In 2019 Scottish Government commenced a review of Strategic Transport Projects (STPR2). The development of a National Strategy for 20mph zones and limits (to support their expansion to those roads where it is appropriate to do so) is a committed project within STRP2, which supports the delivery of the National Transport Strategy 2 (NTS2). 3.5 The Scottish Government and Scottish Green Party Parliamentary Group signed a Cooperation Agreement and agreed a shared policy programme in August 2021 (this agreement is often referred to as ‘The Bute House Agreement’).The Shared Policy Programme (SPP) includes a commitment which states: ‘All appropriate roads in built-up areas will have a safer speed limit of 20mph by 2025.’ A task group has been formed to plan the most effective route to implementation of this commitment which includes representatives from Transport Scotland, the Society of Chief Officers of Transport (SCOTS), Sustrans and Police Scotland. 3.6 The SPP refers to ‘appropriate roads in built up areas’. Transport Scotland have defined the term ‘appropriate road’ as: ‘all 30mph roads unless after the road assessment a valid reason is provided as to why they should remain at a speed limit of 30mph’. 3.7 In early July, Transport Scotland wrote to all local authorities requesting that a ‘Road Assessment’ is undertaken by March 2023 to inform the development of the National Strategy for 20mph and ensure that a consistent method of assessment was undertaken across Scotland. Guidance on how to undertake the ‘Road Assessment’ was provided along with ‘ring-fenced’ funding of £28,000 to assist with the delivery of the assessment. The assessment will be used to determine the specific number of roads affected and the financial implications for implementation of the National Strategy for 20mph. The results of the Road Assessments will also be used to inform future policy and Page 28
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guidance on 20mph speed limits and zones, and ensure that a consistent approach in their implementation is taken across Scotland. 4. ROAD ASSESSMENT GUIDANCE AND CRITIERIA 4.1 Transport Scotland has requested details of the existing speeds limits for built- up areas (towns, villages and any smaller settlements through which a road with a 30mph speed limit passes) and that GIS mapping showing the extent of these existing speed limits is provided. It should be noted that the assessment excludes all roads with an existing 40mph, 50mph and 60mph speed limit and focusses only on existing 20mph and 30mph roads. 4.2 The next step is to undertake a review of the existing 20mph and 30mph speed limits. Each existing road in Moray subject to a 20mph or 30mph speed limit will be considered following the process provided by Transport Scotland which is set out in Appendix 1. The process involves the completion of a spreadsheet supplied by Transport Scotland and the development of GIS Mapping showing all roads proposed to have a 20mph speed limit and those where a 30mph speed limit would remain. 4.3 The process includes the assessment of the road against the following ‘Place Criteria’ which will indicate which 30mph roads are considered appropriate for potential alteration to 20mph: A minimum road length for the speed limit is suggested between 400-600 metres. The length adopted will depend on the conditions at or beyond the end points; a) Is the road within 100m walk of any educational setting (e.g. primary, secondary, further and higher education). b) Does the number of residential and/or retail premises fronting the road (on one side or both sides) exceed 20 over a continuous road length of between 400 – 600m. Other key building should also be considered such as church, shop or school. c) Is the road within 100m walk of any community centre, church, place of worship, sports facility, any hospital, GP or health facility. d) Does the composition of the road users imply a lower speed of 20mph which will improve the conditions or facilities for vulnerable road users and other mode shift. e) Will the road environment, surrounding environment, community and quality of life impact (e.g. severance, noise or air quality) be improved by implementing 20mph speed limits. 4.4 Though the assessment, exemptions to the implementation of a 20mph limit will be identified. These roads will typically be strategic roads with a high ‘movement’ function with little frontage activity and where people walking, wheeling and cycling do not need to share space with motor traffic. 4.5 In order to introduce 20mph speed limits on some roads which meet the criteria in paragraph 4.4, physical measures to reduce traffic speeds may be required to ensure that the limits are ‘self-enforcing’. The assessment will identify these roads and as part of the process and an estimate of the costs of these measures will be provided to Transport Scotland. This will help to inform Page 29
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the implementation costs of the National Strategy for 20mph. 4.6 The funding provided to undertake the assessment is not sufficient to out- source the whole assessment process. It is proposed to undertake the main part of the assessment in-house, utilising officer’s detailed local knowledge and our existing speed survey data. Once the locations where there will need to be additional speed reducing measures or exemptions have been identified, these will be passed to consultants to undertake the assessment, identify suitable speed reducing measures and provide initial cost estimates for the measures. 4.7 Until such time that the extent of the work to be out-sourced has been identified through the first stage of the assessment, it is unclear whether the funding provided by Transport Scotland will cover all of the costs for consultant support. 5. NEXT STEPS 5.1 It is understood that once the Road Assessments have been completed. Transport Scotland will work closely with SCOTS and COSLA to better understand the cost implications for the implementation of the 20mph strategy and, subject to Ministerial approval, will seek to provide additional funding where required. 5.2 The Road Assessments will also be used to inform policy and guidance on 20mph speed limits/zones. Consideration of any new 20mph speed limits or zones prior to the issue of any further guidance would not be advised at this point as it may lead to inconsistencies with the approach taken across Scotland. 5.3 The provision of additional funding for the implementation of the National Strategy for 20mph from Scottish Government has been indicated but it is not yet committed. There remains at this time a risk that further funding may not be available at the implementation stages. Once the availability of future funding has been confirmed, officers will report back to this Committee with details of any shortfall and any opportunities to pursue the implementation of 20mph speed limits/zones through grant funding. 5.4 Officers will continue to be involved with the development of the strategy with Transport Scotland and provide updates to this Committee as and when new information and any timescales for implementation of the strategy are provided. Any update will also be shared with the Joint Community Council who have set up a ‘Speeding in Communities’ group which liaises with Transportation and Police Scotland. 6. SUMMARY OF IMPLICATIONS (a) CorporatePlan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) This report links to the Corporate Plan priority on our place, and to our future in creating a sustainable and resilient future. Page 30
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(b) Policy and Legal The National Strategy for 20mph is a Scottish Government commitment and supports the policies within National Transport Strategy 2, the Scottish Road Safety Framework to 2030, and the draft Strategic Transport Project Review 2. The introduction of 20mph speed limits/zones also support the principle of 20 minute neighbourhoods from National Planning Framework 4. (c) Financial implications Grant funding has been provided but it may not cover the full costs of outsourcing the additional workload to undertake the Road Assessments. Implementation costs are being determined through the Road Assessment with a view to Scottish Government providing financial support to Councils, but the level of implementation funding is unknown at this stage. (d) Risk Implications The timescale to undertake assessment is by March 2023 and is constrained. If the assessment is not undertaken accurately, there is a risk that sufficient financial support for implementation may not be provided. The number of roads where physical measures would be required to support the introduction of a 20mph limit is unknown at this stage and the grant provided by Scottish Government may not be sufficient to cover the consultant fees for developing and providing cost estimates. Additional revenue budget may be required to meet the shortfall. (e) Staffing Implications First part of the assessment will be undertaken by Transportation officers. Outline development of physical measures to support 20mph and their initial costs will be undertaken by external consultants using grant funding from SG. Assistance will be required from the Systems Team as some information is required to be presented as GIS mapping. (f) Property There are no property implications incurred through the contents of this report. (g) Equalities/Socio Economic Impact There are no direct equalities implications arising from this report. However the implementation of 20mph speed limits and zones can support walking, cycling and wheeling which has health, wealth and well- being benefits. The outline design of any physical measures to support 20mph speed limits will take into consideration the needs of those with impairments to their mobility. (h) Climate Change and Biodiversity Impacts There are no direct climate change and biodiversity implications arising from this report. However the implementation of 20mph speed limits and zones can support walking, cycling and wheeling which can lead to a reduction in the number of trips made by private vehicles/fossil fuelled vehicles. Page 31
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(i) Consultations Depute Chief Executive (Economy, Environment and Finance), The Head of Environmental and Commercial Services, Legal Services Manager, the Equal Opportunities Officer, Strategic Planning & Development Manager and L Rowan, Committee Services Officer have been consulted with any comments received incorporated into this report. 7. CONCLUSION 7.1 Transport Scotland has written to Moray Council seeking a Road Assessment to be undertaken to inform the National Strategy for 20mph, which seeks to introduce a safer speed limit of 20mph on all appropriate roads within built up areas. 7.2 The information to be provided to Transport Scotland will assist with the development of further guidance, and identify the number of roads affected and the financial implications for implementation. 7.3 Until Transport Scotland reviews the information being gathered by roads authorities and provides further guidance, Moray Council should not pursue any new 20mph speed limits in Moray. Author of Report: Diane Anderson, Senior Engineer Transportation Background Papers: Ref: SPMAN-524642768-768 SPMAN-524642768-769 Page 32
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APPENDIX 1 – ROAD ASSESSMENT PROCESS No Meets place criteria. Remain at 20mph Reassess the road providing reasoning to stay at 20mph , considering wider speed reduction measures or change to 30mph Existing Speed Limit of 30mph? Meets place criteria or is a Restricted road Out of Scope, does not prevent the road authority from reviewing the Speed limit Does the road assessment suggest the speed remain at 30mph Road assessment includes why the speed limit of the road should remain at 30mph . Indicate if the road is restricted. Reduce to 20 mph, considering wider speed reduction measures. Indicate if the road is restricted. Remain at 30mph – Indicate if the road is restricted. Yes Yes No No Yes No Yes Yes Yes No No Existing Speed Limit of 20mph? Does the road assessment suggest the road should be 20mph Reduce to 20 mph, considering wider speed reduction measures. Indicate if the road was restricted Item 7 Page 33
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REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 6 SEPTEMBER 2022 SUBJECT: NATURE RESTORATION FUND BY: DEPUTE CHIEF EXECUTIVE (ECONOMY, ENVIRONMENT AND FINANCE 1. REASON FOR REPORT 1.1 To inform the Committee of the delivery of projects under the Scottish Government’s Nature Restoration Fund grant in 2021-22 of £101,000, and of this year’s allocation from the same fund of £124,000, and to ask the Committee to agree proposals for 2022-23. 1.2 This report is submitted to Committee in terms of Section III (F) (11) of the Council's Scheme of Administration relating to exercising functions in relation to parks, open spaces and woodland management and maintenance. 2. RECOMMENDATION 2.1 It is recommended that the Committee:- i. Note the delivery of the Scottish Government’s Nature Restoration Fund grant allocation in 2021/22; ii. Note receipt of the £124,000 grant from the same fund for 2022/23; iii. Agree the proposed projects for 2022/23 as set out in para 5 of this report and that any changes to costs across these projects can be authorised by the Head of Economic Growth and Development; and iv. Agree that a further report be submitted on 15 November 2022 setting out a longer term plan. 3. BACKGROUND 3.1 The Scottish Government’s Nature Restoration Fund was introduced last year in response to the biodiversity crisis. The purpose of the fund is to support actions that help nature recover by enhancing biodiversity and local Item 8 Page 35
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ecosystems and/or using nature based solutions to mitigate and adapt to the climate emergency and its impacts. 3.2 The fund will run for five years across several streams, one of which has allocated £5 million each year in the first two years in direct capital grants divided between all Scottish Local Authorities. 4. DELIVERY OF 2021/22 GRANT 4.1 Moray Council received a direct grant from the fund of £101,000 in August 2021. All projects were required to be completed by the end of the financial year. 4.2 The following projects and budgets were approved by the Planning and Regulatory Services Committee on 16 November 2021 (para 4 of the minute refers): Clovenside rain garden £15,000 Wildflower plantings £10,000 Site management plans and minor biodiversity enhancements £66,000 Education £10,000 4.3 The wildflower areas and Clovenside rain garden were both existing projects being delivered by Environmental Protection. The grant was extremely beneficial to the department in supporting delivery of the wildflower program through additional labour and meeting the cost of materials. A mix of sites now include ‘living lawns’ with reduced grass cutting to allow a taller grass sward, and sites prepared with over sowing of wildflower seed. These are very important habitats for pollinators and other insects which have suffered a catastrophic 28% decline in Scotland in the last twenty years. 4.4 Clovenside rain garden was a significant project designed and delivered by Environmental Protection with input from Consultancy. The rain garden has already notably helped to manage large volumes of surface water during extreme weather events which are an increasing problem due to climate change. Minor improvements are still in progress, and once the new plants have settled in the rain garden will provide an enhanced habitat for wildlife in addition to reducing the impact of high rainfall events. 4.5 Consultants were engaged to produce management plans for Millbuies woodland and the Wards wildlife site. Recommendations included various habitat improvements, and also public access improvements which will be progressed separately as funding becomes available. Some path improvements and invasive non-native removal (rhododendron ponticum) were also undertaken at Millbuies. Due to tenders coming in under budget and the very short time available before the end of the financial year to engage contractors, approximately £10,000 was unspent; funding restrictions meant this money was unable to be carried over. 4.6 12 schools were supported with grants of between £450 and £1,200: Cluny Primary, Dallas Primary, East End Primary, Hopeman Primary, Keith Primary, Logie Primary, Milne's High, New Elgin Primary, Speyside High, St Gerardine Primary, St Sylvester’s Primary, St Thomas R. C. Primary. Projects included Page 36
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improvement of outdoor learning environments with plants, pond restoration, gardening equipment and access improvements. Co-ordinating the grant allocation for schools resulted in significantly higher resource implications than expected. 5. PROPOSALS FOR 2022/23 GRANT 5.1 On 26th May 2022 the Scottish Government wrote to Moray Council detailing the allocation of another direct capital grant from the fund of £124,000, for financial year 2022/23. 5.2 The criteria remains broadly the same as the 2021/22 grant, with specific focus on restoration and connectivity of habitats, freshwater restoration, eradication of invasive non-native species and measures to enhance coastal and marine environments. There is an increased expectation that projects deliver demonstrable biodiversity enhancements on the ground. 5.3 The allocation of this year’s grant has been discussed between officers from Strategic Planning and Development, Environmental Protection, Consultancy and Education and it is proposed that the following projects be supported. 5.4 Please note that figures listed are only estimates that are available at this time and are subject to change. Given the short timescale to arrange contracts, it is proposed that authority be delegated to the Head of Economic Growth and Development for decisions on any cost changes for the identified projects or use of the fund for the contingency projects listed. Delivery and expansion of wildflower areas £62,000 5.5 The introduction of wildflowers plays an important part in improving the biodiversity of our open spaces and in turn helps wildlife, people and the environment in general and is supported by the Moray Local Development Plan and wider legislation. 5.6 The Economic Growth, Housing and Environmental Sustainability Committee approved the introduction of new wildflower and living lawn sites across Moray on 1 December 2020 (para 19 of minute refers). Using feedback received through consultation with Community Councils a draft 3 year programme was developed and shared with Community Councils. Environmental Protection are working to ensure there is a wide geographic spread of locations across Moray, and supporting community led projects in addition to council managed sites. Existing sites are located in Aberlour, Buckie, Craigellachie, Dyke, Elgin, Forres, Kingston, and Rothes. 5.7 The contribution from the Nature Restoration Fund will provide an important boost to the project through resourcing labour and materials. Increased management in the short term will support expansion of the project to increase the square metres of wildflower areas across Moray. The funding will also enable closer monitoring of its impact at existing trial sites and exploration of ways to embed wildflower creation into everyday maintenance regimes, as well as engagement with the public. Purchase of maintenance equipment will ensure that long term benefits can be achieved. Page 37
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Enhancement of nature sites £50,000 5.8 A number of actions to enhance biodiversity and public enjoyment were identified in the management plans for the Wards wildlife site and Millbuies woodland that were funded through last year’s grant. It is proposed that the Nature Restoration Fund support the progression of actions that meet the fund’s criteria. Some public engagement will be undertaken to promote the plans and highlight the work that will be undertaken. 5.9 Millbuies actions include: • Improving the mix of native plants and trees • Completing summer ecological surveys • Installing nesting areas for key bird species • Continuing the removal of invasive Rhododendron ponticum • Minor public access improvements 5.10 The Wards actions include: • Restoration of the existing pond • Progress plans for new pond in lower area of the site • Additional planting of wetland plant species • Minor public access improvements Removal of invasive non-native plant species £12,000 5.11 Invasive non-native species are a primary threat to biodiversity. Certain plant species that were introduced to Scotland in the last few centuries are particularly invasive, spreading quickly and reducing biodiversity by outcompeting native plants. Habitat loss and climate change are intensifying the loss of native plants and the spread of these problem plants at an increasing pace. 5.12 Species of most concern locally include; giant hogweed, which can cause serious harm to humans and animals; Japanese knotweed which can cause significant damage to riverbanks and built structures; and Rhododendron ponticum which spreads fatal disease to various tree species and damages ecosystems. 5.13 Significant work is ongoing across Scotland to eradicate these species, but given the invasive nature of these plants, their existing spread across Moray and the compounding impact of climate change, decisive action now is required to reduce the cost of managing their spread in future years. 5.14 The proposed funding will support expansion of the existing programme of removal undertaken in Moray by the Scottish Invasive Species Initiative (SISI). SISI co-ordinate removal at catchment scale to ensure lasting benefit can be achieved, reducing harm to people and nature along the Spey, Lossie and Findhorn rivers. Page 38
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Contingency projects 5.15 It is intended that the majority of 2022-23 funding will go towards the three projects listed above to ensure those existing projects are progressed and to reduce direct costs to the council in future. As projected costs are estimates only and some actions may be delayed due to unforeseen circumstances, the following areas have been identified that would be supported or progressed with any underspend this year, and will considered as opportunities for the fund in following years: • School conservation projects. This would support schools to deliver meaningful Learning for Sustainability experiences, while providing an introduction to land based work/ green skills. Priority would be given to schools and pupil groups with less access to this type of activity or that would benefit most from it. • Community led nature projects. Groups undertaking community nature or gardening projects focused around biodiversity could be supported, for example though the purchase of equipment or plants, thereby enhancing shared greenspace for nature. • Marine litter and beach cleans. Support could include new collection points to encourage the public to collect marine litter, along with engagement and education / interpretation. • Rain gardens. Existing plans for rain gardens could be partially supported though remaining funds, for example seeking advice on the selection of appropriate plants. Rain gardens help manage runoff and localised flooding caused by extreme weather events, in addition to creating new habitats through additional planting. 6. FUTURE DELIVERY OF THE FUND 6.1 There are indications that the remaining three years up to 2025/26 will see a reduced direct grant allocation as the Scottish Government encourage local authorities to work with partners on larger projects to bid for grants competitively. 6.2 Initial discussions are ongoing with departments across the council and with our partners in neighbouring local authorities regarding potential ideas for larger scale projects that could be applied for through the competitive stream of the fund in future. A report on the longer term plan for the remainder of the fund will be returned to committee later this year. Page 39
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7. SUMMARY OF IMPLICATIONS (a) Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) Enhancing local biodiversity delivers a wide range of social and environmental benefits that will support the corporate and community planning objectives. (b) Policy and Legal The Nature Conservation (Scotland) Act 2004 places a duty on public bodies in Scotland to further the conservation of biodiversity when carrying out their duties. The projects outlined in paragraph 5 will contribute to the Council meeting its biodiversity duty and align with the Council’s Climate Change Strategy aim to ‘Work to retain, protect and enhance biodiversity across Moray’. (c) Financial implications All projects are designed to minimise future maintenance costs. Any ongoing maintenance issues will be managed by Environmental Protection and Strategic Planning and Development within existing budgets. (d) Risk Implications If the proposed allocation of funding and delegation of decision making is not agreed, there is a real risk that this money will not be fully used due to the limited time available to spend it within the financial year. (e) Staffing Implications Officers from Strategic Planning and Development will manage the budget and work with officers from Environmental Protection, and other departments where relevant, to deliver the projects. All costs for two seasonal gardeners associated with the wildflower areas will be covered by the fund. (f) Property Proposals are considered to enhance land owned and/or managed by the Council. (g) Equalities/Socio Economic Impact By increasing biodiversity, projects should also contribute to community health and wellbeing and reduce inequalities of access to nature. (h) Climate Change and Biodiversity Impacts All proposals will chiefly and directly support mitigation of, and adaptation to, the climate and biodiversity crisis. Page 40
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(i) Consultations The Depute Chief Executive (Economy, Environment and Finance), the Head of Economic Growth and Development, Legal Services Manager, Open Space Manager, Principal Accountant, L Rowan, Committee Services Officer and Equal Opportunities Officer have been consulted and comments received have been incorporated into the report. 8. CONCLUSION 8.1 Last year the Scottish Government’s Nature Restoration Fund supported progression of four nature restoration projects that have enhanced biodiversity and benefitted communities. 8.2 The Committee are asked to note the £124,000 grant for 2022-23 and agree the proposed allocation of this as outlined in this report and to delegate authority for any cost changes within the agreed projects to be authorised by the Head of Economic Growth and Development. 8.3 The Committee are also asked to note the need for a longer term plan and agree that a report will be brought back in November to detail this. Author of Report: Sophie Ward, Climate Change Strategy Officer and Emma Gordon, Planning Officer Background Papers: Ref: Page 41
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REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 6 SEPTEMBER 2022 SUBJECT: MARINE SAFETY AND OPERATIONAL UPDATE Q1 2022-2023 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 period Q1 year 2022/23. 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. 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 the ED&IS committee. The role requires accountability for ensuring the organisation’s compliance with the PMSC. 3.3 At a meeting of this committee on 20 March 2018 it was agreed that a report on PMSC would be submitted quarterly (paragraph 6 of the minute refers) 3.4 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). Item 9 Page 43
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4. Q1 Review 4.1 The following sections of the report set out an overview of marine safety performance quarter 1 of 2022/23. 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 12 October 2021 and concluded that the Moray Council harbours are compliant with the PMSC. The Audit process made observations. The open items from this are provided in the table below. Observation Progression Review Harbour Bye-laws with particular regard to continued relevancy Liaison with legal department required to establish a time to review bye-laws during 2022/23. Consider cyber security protocols Addition of cyber security policy to be added to SMS during review cycle including update of IT systems in new harbour office. IT consultation is ongoing with council officers during process of office move. SMS updates, rewording suggestions Review of SMS with aid from Quality Management Systems department planned September/ October 2022. Consideration of adding extra safety signs around harbour In conjunction with ongoing water safety group meetings and work stream considerations for signs required to be discussed. Signs on order and being produced currently. Increasing drills carried out with external institutions suggested Plans to be made to include exercises with local fire brigade large scale cross council drill to be organised with Aberdeenshire council with Emergency planning officer. It should be noted that duty holders are required to be conversant with PMSC and its relevant content. Training for Duty Holders was provided by the designated person on 15 August 2022. Key Performance Indicators 4.3 Details of the Council’s compliance with PMSC are provided below. Q1 Accident, Incident and Near Miss Statistics 4.4 Incident statistics Summary Table Quarter Injuries Incidents Near Misses 1 0 2 0 4.5 There was an incident within Portknockie harbour on 8 June 2022. A harbour user was washed off of the quayside near to entrance channel by a wave. Members of a local swimming group were close to the scene and saw the Page 44
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incident. The responders proceeded to the life saving devices situated in the harbour and upon opening the life ring float to recover the casualty found that there was no device in place at that location or the location next along the quayside. 4.6 By utilisation of a buoyed creel thrown to the casualty with assistance of a passing boat at this time the casualty was rescued from the water unharmed. 4.7 An ambulance had been called in the response and trained medical professionals attended to the casualty but found them fit and well with no injuries. No further treatment was required 4.8 Maintenance of the life rings was completed on 26 May 2022, at which time the life rings were in place. Planned maintenance of the life rings is currently undertaken monthly. 4.9 The Harbourmaster was informed of the incident the following morning and attended the site, confirming the life rings were missing. Replacement rings were immediately installed and additional life rings were ordered to increase spare stock. 4.10 Planned monthly maintenance arrangements will continue, as it is deemed this is an acceptable schedule of maintenance and repair. However, harbour staff will spot check life rings when they are attending any harbours for works, to ensure all are in place. 4.11 The incident was notified to the Coastguard and reported to Council, including public relations. 4.12 A press release was issued and further education drives through the water safety group will be undertaken to further highlight the dangers associated with tampering with and vandalising life-saving equipment. This is also a matter for discussion at Harbour Advisory Committees. 4.13 An incident occurred on 25/06/22 at Findochty Harbour involving the new pontoons, whereby a section of pontoon was found to be moving excessively. Action was taken to make the pontoon safe and an investigation has been undertaken by officers, in consultation with the manufacturer to identify what caused the incident and what mitigation may be required in future. Aids to Navigation 4.14 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. 4.15 New solar powered lights will be 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 Page 45
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navigational aids. This work has been funded by Scottish Government Marine Fund Scotland Scheme. 4.16 A risk assessment for changing the lighting system will be prepared and approved by the Northern Lighthouse Board. A Notice to Mariners has been prepared and this will be sent to all harbour users and the UKHO so visiting vessels can be informed of this change. 4.17 The table below summarises the availability of Navigational lights under Moray Council’s responsibility. 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 is meeting this target. The availability of Cat 2 and 3 lights is below the target availability. 4.18 The target for the year 2022/23 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 once installed will provide more efficiency due to less reliance on unsuitable cabling prone to faults. Pilotage 4.19 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 first quarter of 2022/23 was 10, in relation to 22 vessel movements in and out of the harbour. This included 1 act of pilotage in hours of darkness Training 4.20 There are currently two members of staff deemed competent to pilot, one unrestricted and one restricted to daylight hours. By Q3 it is anticipated that both members of staff will be competent to pilot without restrictions and that a third member of staff will be fully trained. Training will begin for other harbour staff after Q3. 4.21 Training requirements for all harbour staff is currently being reviewed. During Q1 Oil spill level 3 training was completed by 3 members of staff. During Q2 training is scheduled for: • First aid refresher training • Excavator training • Duty Holder PMSC training Training for Port Facility Security is currently being sourced. Page 46
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Staffing 4.22 Recent recruitment within the harbours team includes the appointment of one new harbour assistant. 4.23 Recruitment for MV Selkie staff is ongoing. Conservancy 4.24 Dredging has continued into the quarter 1 of 2022/23, with priority given to Buckie navigational channel and Burghead channel. 4.25 From 1 April 2022 to 30 June 2022 the total amount of spoil removed to designated spoil grounds was 3460 Tonnes over 30 digging days. This includes the harbours of Portknockie Burghead and Buckie (see table 2 para 4.32). 4.26 Burghead groyne is at the end of its serviceable life, which is increasing the deposition of sediment at the harbour channel. A package of work is currently being developed to address this issue. 4.27 In Buckie the current depth under chart datum is officially 2.1 Metres with relevant Notice to mariners promulgated. There has been significant improvement in the depth of the channel as a result of work carried out in quarter 1 and the indication subject to survey of the channel is that depth under chart datum exceeds 2.5 Metres. 4.28 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. 4.29 The priority areas for dredging remain Burghead (sand bank approaching harbour entrance) and Buckie (entrance channel). Other dredging requirements include: o Hopeman: Different options to increase the efficiency of dredging at Hopeman are being considered and a plan detailing these will be developed in 2022/23. o Cullen: dredging by the Selkie will focus on the beach side of the basin. o Portknockie: there is no need for dredging plans at Portknockie at this time however the entrance and pontoon basin will be closely monitored. . o Findochty: Dredging is required at the entrance channel and areas around the middle jetty. 4.30 There has been an increase in available water under chart datum of 1.0 metre in the west basin and channel at Findochty harbour as a result of the dredging campaign in 2021/22 Selkie 4.31 MV Selkie has completed works within Buckie, Burghead and Portknockie during the first quarter of 2022/23. The below table summarises the work carried out during the quarter: Page 47
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Table 1: Days worked and total tonnage removed Q1 2022/23 vs Q4 2021/22 Year Days working Weather days Maintenance Working days % Tonnage Removed 2022/23 Q1 30 12 20 48 3,460 2021/22 Q4 24 30 9 38 3,330 Table 2: Summary of works carried out per harbour during Q1 Harbour Cumulative working days Cumulative weather days Cumulative maintenance days Tonnage removed Buckie 23 29 20 2,240 Burghead 6 1 0 1,040 Portknockie 1 0 0 180 Total (%) 30 (48.5) 12 (19.25) 20 (32.25) 3,460 4.32 During the first quarter of 22/23 there has been has been a slight increase in the total tonnage removed to spoil by MV Selkie compared to the previous quarter (Q4 3,330, see Table 1 para 4.32). There has also been an increase in working day % increasing from 38% in Q4 to 48.5%. This is still below the target KPI of 50%. There has been an increase in days lost to unplanned maintenance unfortunately which explains the high maintenance day figure. The increase in maintenance was due to a ruptured hydraulic hose dating from construction of the vessel. The hose was required to be shipped from Germany via the excavator manufacturer. Spares have been ordered to ensure the situation does not repeat. 4.33 The plan for increased efficiency moving forward is to maximise the number of days crewed on vessel and continue to work effectively with maintenance to lower the number of maintenance days. A computer based planned maintenance system is ordered and currently in the process of being implemented on board Selkie and throughout the harbours. This will increase efficiency of auditing maintenance, allow greater ability to scrutinise maintenance and its history and allow remote access monitoring of all maintenance. 4.34 Procurement process to install Marine mammal observation equipment is currently being undertaken. This equipment would allow Selkie to work in more marginal weather conditions above a force 3 at spoil dumping grounds. This would further improve the efficiency of dredging operations. 4.35 KPIs measuring the percentage of days working and days of maintenance are summarised below: Table 3: Comparison of working days compared to weather and maintenance Year Days working % Weather days % Maintenance % 2022/23 Q1 48.5 19.25 32.25 Currently during Q1 although an increase of working days has been observed the vessel has not reached target of 50% days worked. This is largely due to the hydraulic hose issue mentioned in paragraph 4.43. The lessons learned from the situation and the increased scrutiny over planned maintenance will be used to attain the KPI targets moving forward. Page 48
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Green Harbours 4.36 There has been continuing work carried out with the focus on lowering carbon emissions and promoting overall environmentally sound practices within the harbours. This includes plans to upgrade the electrical infrastructure available within Buckie harbour in particular over the coming years allowing less reliance on fossil fuel generators for power. 4.37 KPI Summary Table KPI Progress at the end of Q1 Completion Target Date Conservancy Buckie Channel Depth 3.0M Current official depth 2.1M (2.5 M sounded by pilot boat) 31/03/23 Buckie Basin 1/2/3 depth 3.0M Current depth 2.2M 31/03/23 Provide 0.3M channel Burghead Current depth 0.0M 31/03/23 Productivity Maintenance days less than 20% Currently 32% Continuous review Working days greater than 50% Currently 48.5% Continuous review Total minimum tonnage removed above 14,120 Tonnes (aspirational target 18,000 Tonnes) Q1 3,460 (annual projection x4 therefore 13,840) 31/03/23 Total working days above 77 (target 100) 30 end of Q1 (currently on target) 31/03/23 Staffing Full Time master Q2 recruitment campaign (long term skilled agency worker currently) 30/09/22 Safety management/ Maintenance SMS review and Update In progress 31/10/22 Full Risk assessment update In progress annual review completed. 31/10/22 Planned maintenance system implementation Processing and implementation due to be in place and operational by end of September. 31/08/22 Financial Lower Running costs to within Budget To be reviewed 31/03/23 5. FORWARD PLANS 5.1 It is proposed that MV Selkie continues to fulfil its role in carrying out maintenance dredging across the council’s harbours. However, as agreed by Page 49
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members at a meeting of Moray Council on 29 June 2022 paragraph 22 of the minute refers, a specific outsourced dredging campaign is being planned to: a) Provide the necessary depths of water associated with the Moray West Offshore O&M contract at Buckie and b) To re-establish the channel at Burghead harbour. 5.2 These will be procured to be delivered as soon as practicable in line with Marine Scotland licensing requirements. 6. General Safety Updates Safety related works 6.1 There have been a number of jobs completed during Q1 improving safety conditions within all harbours, these works include: • Repair of small potholes in Buckie and Cullen • Use of algaecide to remove potential slip hazards on quaysides. • Repair of tyre fenders in Buckie • Repair of ladders and hand holds throughout harbours. • Replacement of life-rings. • Repair of Water supply and steps in Findochty. • Final completion and amendments to berthing applications. • Pontoon repairs in Portknockie • Install of new fenders on North pier Buckie • Various algaecide treatments across harbours • Remove and replace rope ladder in Buckie • Upgraded all shed lighting in Burghead to LED • Replaced lifebuoy holder, lifebuoy’s and lines across harbours • Installed numerous ladder handrails at Burghead, Hopeman, Buckie and Findochty • Replaced chain on steps to lighthouse (Findochty) with ropes and tightened with turnbuckle • Stripped and painted lighthouse (Findochty) to reassert the efficiency of the daymark (unlit aid to navigation). Master action List 6.2 List of safety related jobs required to be completed in all harbours comprising the Master action list: Priority category Number of safety related jobs needing completion at beginning of Q1 Number of safety related jobs still outstanding at end of Q1 Total safety related jobs completed during Q1 1 20 1 19 2 23 13 10 3 42 30 12 Page 50
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4 24 19 5 Totals 109 63 46 Master action list is a list of all safety related jobs required within the harbours segregated in to 4 categories. Category 1 deemed the most important. During Q1 all but 1 outstanding cat 1 safety jobs were completed. The remaining Priority 1 item is the repairs to Pathfinder which was completed 11 August. Signage 6.3 The signs listed below have been ordered and will be erected when received. 1. 4 signs to restrict general access to the pontoons 2. Harbour operations signs. 3. Designated visitor berths. 4. Operational speed restrictions 5. Keep slipway clear signs. 7. Objectives identified for remaining quarters of 2022/23 • Detailed review of the Safety Management System: the SMS will be reviewed during quarter 2 and 3 and a revised SMS will be presented to a future meeting of this committee. This will include emergency response and preparedness review, full risk assessment and health and safety reviewing and updating required given upcoming move of harbour office, scheduled for late summer / early autumn to temporary facilities in the Drifter whilst new harbour and O&M facilities are constructed. • Further development of SMS support checklists to aid compliance with Safety management system. • Report and review new KPIs. • Undertake further reviews of Marine Policy and Harbour Bye-laws. • Review training requirements and request necessary training. • Increase momentum of Pilot training and accreditation leading to 2 fully competent Pilots within the Harbour team by end of Q3. 8. 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. Page 51
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(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. (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 and Commercial Services, Legal Services Manager, Principal Accountant, Committee Services Officer (L Rowan), and Equalities Officer have all been consulted and their comments incorporated into this report. 9. CONCLUSION 9.1 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-524642768-770 Page 52
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REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 6 SEPTEMBER 2022 SUBJECT: ENVIRONMENTAL AND COMMERCIAL SERVICES AND ECONOMIC GROWTH AND DEVELOPMENT SERVICES (ECONOMIC DEVELOPMENT) CAPITAL AND REVENUE BUDGET MONITORING TO 30 JUNE 2022 BY: DEPUTE CHIEF EXECUTIVE (ECONOMY, ENVIRONMENT AND FINANCE) 1. REASON FOR REPORT 1.1 To inform the Committee of the current position regarding Environmental and Commercial Services and Economic Growth and Development Services (Economic Development) Capital and Revenue Budgets. 1.2 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: (i) considers and notes the budget monitoring report for the period to 30 June 2022; and (ii) approves the funding allocation under the Switched on Fleets programme as set out in para 6.12. 3. BACKGROUND 3.1 The Performance Management Framework 2020 (page 27) requires that progress against Capital and Revenue Expenditure and the Capital Plan is reported to the relevant Service Committee every Committee cycle. Expenditure is reported in the first instance to Corporate Committee (formerly Policy and Resources) quarterly. 3.2 The Capital Plan for 2022/23 was approved by a meeting of Moray Council on 22 February 2022 (para 4 of the minute refers). The current projected expenditure is an estimate that should be treated with caution due to volatile conditions within the Construction Industry and in supply chains of materials. Item 10 Page 53
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3.3 Policy and Resources Committee on 10 May 2016 agreed to amendments to the information provided in response to the Audit Scotland report “Major Capital Investment in Councils” (paragraph 7 of the Minute refers). Accordingly this report includes a separate APPENDIX 4 giving details of expenditure on projects which span more than one financial year. 3.4 The Council recognises five principal drivers for capital expenditure: Legislative requirements, efficiencies or spend to save projects, maintenance of assets and operations at current approved levels, service developments, council priorities. Capital expenditure is funded from three sources: capital grants from Scottish Government and other sources; capital receipts from the sale of assets or from developer obligations; borrowing. When the Council borrows for capital expenditure, the capital financing charges incurred are met from the revenue budget. Therefore the Capital Plan has a direct impact on the revenue budget and the two are considered jointly at the same budget- setting meeting of Council. The Revenue budget was approved at a meeting of the Council on 22 February 2022 (para 4 of the minute refers). The Council has agreed savings of £1.576 million in 2022/23. The current total Revenue budget for Environmental and Commercial Services is £26,321 million in 2022/23. Any further amendments to the Capital and Revenue budgets are first approved by Policy and Resources Committee. 4. ENVIRONMENTAL AND COMMERCIAL SERVICES REVENUE BUDGET 4.1 APPENDIX 1 details the Environmental and Commercial Services Revenue Budget position to 30 June 2022. 4.2 REVENUE BUDGET POSITION 30 JUNE 2022 4.3 Environmental and Commercial Services actual and committed budget has an overall Underspend to budget, of £245,000 for the period to 30 June 2022. The position is shown in APPENDIX 1 and summarised in the table below with major variances described in para 4.4 - 4.8 of this report. Underspends or Overspends are against projected budgets for the period only. Variances are further explained in this report. All variances will be monitored closely and reported to Committee as the year progresses. Position at 30 June 2022 Service Ref Para Overspend Underspend £000s £000s Fleet Services 4.4 128 Traffic & 4.5 45 Annual Budget Budget Year to Date Actual &Committed Year to Date Variance Year to Date £000s £000s £000s £000s 26,321 5,693 5,448 245 Page 54
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Transportation Mgt Waste Mgt 4.6 (75) Building Catering and Cleaning 4.7 79 Parks & Open Spaces 4.8 64 Explanation of major variances 30 June 2022: 4.4 Major Variance - Fleet Services Underspend of £128,000 is mainly due to internal recharge income exceeding budget. The Fleet hire budgets are to be reviewed and amended before Qtr 2. 4.5 Major Variance - Traffic and Transportation Management Underspend of £45,000 is mainly due to the reduced internal recharges for PTU Public Transport Unit minibuses. Budgets to be reviewed before Qtr 2. 4.6 Major Variance - Waste Management has an overall overspend of £75,000. Main variances are:- Overspends: Trade Waste income £66,000 - The income shortfall to budget is mainly due to a reduction in customer numbers due to inactivity of various industries due to pandemic. The volume of customer contracts has returned to pre-Covid levels, however changes to the way commercial entities operate has an impact on their waste production. Trade waste collected through commercial contracts is based on the volume of waste that is generated in each specific facility. Customers who have reduced their volume of waste production or moved to using more recyclable materials will amend their contracts to reduce their overheads. In doing so, Moray Council retain the customer but the charge for the services provided is reduced due to the reduction or removal of disposal costs. Leachate £22,000 - Leachate extraction is dependant of climate conditions as well as the composition and volume of waste within a cell. Wetter weather creates more leachate accumulation which increases the need for extraction and therefore, unavoidable higher costs. Leachate levels are monitored weekly. We are required to report our leachate levels to SEPA and the levels within our 5 cells were over the permitted threshold at a point earlier this year. We managed to negotiate an increase in servicing with our contractor to bring the levels back down and to within compliance levels. Phase 2 was still slightly over in July, but SEPA have acknowledged the work done to address the issue and operate in compliance with the site regulators. Fuel £54,000 - The expenditure overspend is due to additional costs for fuel per litre. Underspends: Recycling contracts income £73,000- the market is volatile but prices for card/ paper are currently favourable leading to this underspend. 4.7 Major Variance – Building Cleaning and Catering Total Underspend of £79,000 comprises of the following variances: Page 55
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Overspends: Catering income £89,000 income shortfall to budgeted target - There is a phasing error on free school meals which will be corrected in Qtr 2. When corrected it is expected that the income and expenditure will offset each other. Underspend: Catering has a £168,000 underspend on food costs and supplies. This variance is partly due to secondary schools having exam leave and active days away from school and a reduced uptake. It should also be noted that food prices are fluctuating at present. 4.8 Major Variance – Parks & Open Spaces The net underspend of £64,000 mainly due to an underspend on the tree inspection budget. A tree specialist will be procured later this year. Burial grounds have a small income surplus to date. There is also an overspend on fuel costs and materials due to rising costs, which will be monitored as a possible budget pressure. 5. ECONOMIC GROWTH AND DEVELOPMENT SERVICES (ECONOMIC DEVELOPMENT) REVENUE BUDGET 5.1 REVENUE BUDGET POSITION 30 JUNE 2022 Annual Budget 2022/23 Budget Year to Date Actual & Committed Year to Date Variance Year to Date £000s £000s £000s £000s 4,015 430 536 (106) 5.2 Development Services - Economic Development, the variance to projection is an overspend of £106,000. This is as a result of building standards income not achieving projection by £34,000 and planning income not achieved by £77,000. Variations in income levels are not unusual and are out with the control of the service. Fees are set nationally and income estimates are based on previous levels of applications, a single application for major development can command a fee in excess of £100k, it is therefore normal to see fluctuations against budget in each quarter and the current under achievement of budget is within the expected parameters for this budget. The income on these budgets does fluctuate and we can expect to see a deficit in some years and an over achievement of income in others due to the scale of income associated with larger applications. 6. ENVIRONMENTAL AND COMMERCIAL SERVICES CAPITAL BUDGET TO 30 JUNE 2022. 6.1 APPENDIX 2 details the Environmental and Commercial Services Capital Budget position to 30 June 2022 (QTR 1). The total Capital Plan budget of £33.836 million has an actual spend at the end of June 2022 of £3.497 million and a projected spend at end of March 2023 of £31.978 million. 6.2 Expenditure on Lands & Buildings to 30 June 2022 totals £1,070 million. The major items of expenditure were £100,000 at Dallachy Landfill site and £440,000 for the Council’s contribution of the NESS energy from waste plant – Page 56
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construction phase. £500,000 was spent on place based investment which is fully funded by grant funding. 6.3 Expenditure on Infrastructure assets to 30 June 2022 totals £1,135,000. The main items of expenditure was £604,000 on roads resurfacing works throughout the Council area. Other items of expenditure include £198,000 on various bridge works and £196,000 on traffic- Wards Road Junction Improvements (developer obligations) and £85,000 on LCTT Speyside Way (grant funding). 6.4 Expenditure on vehicles, plant and equipment to 30 June 2022 was £1,292,000, the main item of expenditure being £1,189,000 on the Vehicle & Plant Replacement Programme. £63,000 was spent on car charge point upgrades and £100,000 on Domestic & Trade Waste Bins. 6.5 APPENDIX 3 shows the projects within the Capital Budget with a summary of the ratings estimated by budget managers. 6.6 Budget managers have been requested to update projected estimates of expenditure on capital projects in 2022/23. Projects are marked red / amber / green. This column represents an assessment of projected expenditure at end of year - with green being a high confidence level of expenditure close to projected expenditure for the total of the year, medium confidence as amber and low confidence as red. There are various unknowns surrounding the impact that the situation in the wider construction industry and in supply chains will have and this is reflected in the value of projected expenditure in amber and red. A summary of the ratings is given in the table below. 6.7 Risk status RAG No. of projects Projected expenditure 2022/23 £000s High confidence of spend to estimate G 46 29,658 Medium confidence of spend to estimate A 8 825 Low confidence of spend to estimate R 4 1,495 57 31,978 6.8 A red status highlights areas where there is low level of confidence in estimated expenditure. The following have been identified by budget managers as having a Red status: Project Capital Plan £000s Projected Expenditure 2021/2022 £000s Projected Variance 2021/2022 £000s Infrastructure U117H/10 Bridge of Slateford Tomnavoulin 232 250 -18 U82H Aldunie Bridge, 301 485 -184 Page 57
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Carbrach/ Dykeside Bridge U118E/10 Shougle Bridge 337 600 -263 Timber traffic 750 160 590 TOTAL 1,620 1,495 125 6.9 Bridge of Slateford Tomnavoulin - design works have been delayed and there is now a risk site works will be done in the winter months adding risk and cost. Based on current construction costs the project is now likely to cost £250,000. 6.10 U82H Aldunie Bridge, Carbrach/ Dykeside Bridge/ Shougle Bridge Dykeside Bridge work was originally tendered as a stand-alone project, however, due to construction inflation the tender returns were significantly higher than the available budget. This project was deferred and re-tendered as a package with Aldunie Bridge and the budget was supplemented by grant funding from Scottish Government for lifeline bridges. Construction work on these bridges was completed in August 2022 at a total cost of £405,000. Some remedial works will be required to the road on the south side of Dykeside Bridge at an estimated cost of £10,000. This work will be complete by the end of September. U118E/10 Shougle Bridge refurbishment works to Shougle Bridge are currently underway and are due for completion in November 2022. The cost of this work, including risk, is £605,000. 6.11 Timber Traffic - Moray Council was only successful with one bid for grant funding support. Total cost of works is now expected to be £400,000 with STTF contributing 60% of eligible costs of works. 6.12 Switched On Fleets: £65,000 has been allocated to the Council as part of the Energy Savings Trust’s Switched On Fleets programme. It is proposed that this funding is accepted and used to continue to add EV charging infrastructure for council fleet at depots in Buckie and Keith in line with stated service plan priorities. 6.13 An amber rating of confidence to spend budget highlights areas where there are issues impacting on the ability to project spend – generally indicating factors out with the budget manager’s control. The Covid-19 pandemic restrictions on contractors working practices have resulted in an increase in costs of construction. The impact of Brexit has also seen material and equipment costs increase and we are experiencing procurement delays due to poor responses to tenders and delays in the supply of materials. Other factors creating uncertainties are noted below, mainly staff capacity, response to safety issues and service requirements The following have been identified by budget managers as having an Amber status: Project Capital Plan 2022/2023 Projected Expenditure 2021/2022 Projected Variance 2021/22 Page 58
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£000s £000s £000s Lands & Buildings Parks & Open Spaces - Paths, car parks, steps, walls, fences, signage 140 140 0 Infrastructure Bridges – A941 New Craigellachie Bridge 3,786 3,000 786 Bridges – B9103/100 Boat O Brig Bridge Orton 4 15 -11 Harbours – Replacement of life expired elements and upgrades 500 500 0 Road Improvements – Kerb edge replacement 50 0 50 Street Lighting – Replacement columns and lights 800 800 0 Vehicles Plant & Equipment Vehicle & Plant replacement programme 5,563 5,563 0 Environmental – Children’s Play Areas (Parkland) 253 253 0 TOTAL 11,096 10,271 825 6.14 Paths and Open Spaces is rated as Amber of achieving projected spend - projects are still to be costed as team capacity issues has delayed progress. 6.15 Bridges - A941 New Craigellachie Bridge. Is rated as Amber. Tenders have been returned and were lower than original Capital Plan budget. It is expected that the budget may be reduced in the future, whilst still ensuring that there is adequate risk allowance within the project. 6.16 Bridges – B9103/100 Boat O Brig Bridge Orton. There is £4,000 in the Capital Plan for this project but costs are likely to be £15,000 due to the volatile current construction market. 6.17 Harbours – Replacement of life expired elements and upgrades. Tenders for the project have been returned and award less that allocated budget, it is likely the capital budget for this project will be reduced in the future. 6.18 Road Improvements – Kerb edge replacement is rated Amber due to increased focus /priorities on other areas of the capital plan and staff shortages within the Service. There is no projected spend this financial year. 6.19 Street Lighting – Replacement columns and lights is rated as Amber as there is a risk that the projected spend may not be achieved this financial year. This is due to current vacancies and difficulty recruiting staff which has led to late start of works on site. Page 59
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6.20 Vehicle & Plant replacement programme - Global factors such as the Ukriane war, pandemic & Brexit have caused major manufacturer factory shut down therefore making vehicle and plant delivery an unknown. £4,361,533 orders have been committed to date. 6.21 Children’s Play Areas (Parkland) –Supplier issues may impact on the final spend for this project. Play area upgrade design is being carried out in conjunction with local communities using Participatory Budgeting (PB) and delays in the lead-in times for the delivery of equipment means the level of spend is uncertain. 7. RISK AND EMERGING ISSUES 7.1 Budget managers have been requested to identify any specific areas of risk for the projects in the Capital Plan for which they are responsible. 7.2 As reported to Economic Growth, Housing and Environmental Sustainability Committee on 24 August 2021 (paragraph 7 of the minute refers) a risk to the capital plan is an increase in the cost of materials and scarcity of many materials which are key for the construction industry. Scotland Excel have informed the Council of unavoidable increases to costs on four of their frameworks and some key materials such as concrete, wood and steel are currently difficult to source and costlier if they are available. This is partly a world-wide reaction to the pandemic, and partly due to Brexit. The construction industry is also over-heated and some recent procurement exercises have stalled. The Strategic Territory Partnering Board are also monitoring market volatility. 7.3 There is a risk that contract inflation might increase the eventual cost of projects in future years of the capital plan and a risk that any deferment of projects relating to asset condition might result in element failure, potentially incurring unbudgeted costs. 7.4 The NESS Energy for Waste project is at a risk of delay due to Covid however it is not anticipated that this will impact on the current revenue and capital budget provision. 7.5 The main risk for the vehicle replacement programme is manufacturers failing to deliver to agreed timescales and this risk is heightened at this time due to the shortage of semi-conductors. 7.6 Projects can be subject to risks which are outwith the direct control of the Council. Poor weather conditions can impact project timescales, as identified for Roads Drainage works and harbours renovation works. 7.7 Lack of staff resources and staff turnover can impact on project timescales and other emerging work priorities can impact in scheduled works and this is reflected in delays where work planned to be out-sourced is being brought in- house as a result of poor response to tender requests. Page 60
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7.8 There is a risk that time-limited funding is not spent within time-frame and that the Council therefore loses the opportunity to improve or create assets at no or reduced cost to the Council. 7.9 Looking to the future there is a need to invest significantly in our infrastructure to underpin the Council’s priorities of Our People, Our Place, Our Future. The Council’s forecast financial situation is such that significant savings will be needed and realistically capital expenditure cannot be ignored when seeking to curtail costs. There will therefore be a difficult balancing act between investment needs and savings. 7.10 No other project risks have been specifically identified by budget managers. 8. SUMMARY OF IMPLICATIONS (a) Corporate Plan and 10 Year Plan, (Local Outcomes Improvement Plan (LOIP)) Effective budget management is an essential component of delivery of Council priorities. The capital plan is one of the vehicles through which the Council’s priorities can be delivered. The approved capital plan for 2022/23 and the outline ten year plan incorporates measures designed to address the LOIP priorities of building a better future for our children and young people, empowering and connecting communities and developing a diverse, inclusive and sustainable economy (b) Policy and Legal There are no policy or legal implications arising directly from this report (c) Financial implications The financial implications are highlighted within the report and detailed in APPENDICES 1 – 4. Environment and Commercial Services revenue spend to 30 June 2022 is £5,448,000 against a budget projection of £5,693,000 giving an underspend of £245,000. The annual revenue budget for 2022/2023 is currently £26,321,000. Economic Growth and Development Services - (Development Services) Revenue spend to 30 June 2022 is £536,000 against a budget year to date of £430,000, giving a overspend variance of £106,000. Environmental and Commercial Services - Capital spend is £3.497 million to 30 June 2022. (d) Risk Implications Budget managers are aware of their responsibilities for managing budget allocations and approval for variance will be sought from Committee in line with the Financial Regulations. (e) Staffing Implications There are no staffing implications arising from this report. Page 61
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(f) Property There are no Property implications arising from this report. (g) Equalities/Socio Economic Impact There are no equalities implications arising from this report because the report informs the Committee on budget monitoring. (h) Consultations This report has been prepared in consultation with Depute Chief Executive (Economy, Environment & Finance), Head of Environmental and Commercial Services, Head of Economic Growth and Development Services, Principal Accountant (Paul Connor), Legal Services Manager, Committee Service Officer (Lissa Rowan) and Environmental and Commercial Services Management Team and Budget Managers. Any comments have been taken into consideration. 9. CONCLUSION 9.1 This report sets out the budget monitoring position and comments on variances for the Environmental and Commercial Services and Economic Growth and Development Services (Economic Development) Capital and Revenue Budgets for the period to 30 June 2022. Author of Report: Nichola Urquhart, Quality Management Systems Officer Background Papers: Ref: SPMAN-524642768-655 Page 62
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APPENDIX 1 ENVIRONMENTAL AND COMMERCIAL SERVICES - REVENUE BUDGET PROGRESS PERIOD TO 30 JUNE 2022 (QTR 1) Service Annual Budget Budget to date Actual & Committed YTD Variance £000s £000s £000s £000s Fleet Services -1,948 -484 -612 128 Engineering Design 995 229 240 -11 Roads Management 4,272 1,698 1,681 17 Traffic & Transportation Mgmt 5,746 985 940 45 Waste Management 8,095 912 987 -75 Building Cleaning & Catering 6,870 1,670 1,591 79 Parks & Open Spaces 1,578 361 297 -75 Env& Com Services Admin / Suppt Svs /H&S 454 119 119 0 Emergency Planning 60 12 13 -1 Env & Com Services Covid 19 681 147 149 -2 Staff Saving Targets -661 0 0 0 Direct Services Directorate 179 44 43 1 Total Env & Com Services 26,321 5,693 5,448 245 Item 10 Page 63
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APPENDIX 2 APPENDIX II ENVIRONMENTAL AND COMMERCIAL SERVICES - CAPITAL BUDGET PROGRESS – PERIOD TO 30 JUNE 2022 Service Description Total Number of Projects Current Capital Plan Budget 2022 - 2023 Actual & Committed to 30 June 2022 Total Projected Expenditure 30 March 2023 £000s £000s £000s Vehicle Plant and Equipment 13 7,256 1,292 6,958 Lands and Buildings 10 10,852 1,070 10,852 Infrastructure 34 15,728 1,135 14,168 Total 57 33,836 3,497 31,978 Item 10 Page 65
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APPENDIX 3 CAPITAL PROJECTS 2022 / 2023 As at 30 June 2022 Current Capital Plan 2022/23 Actual to 30 June 2022 (QTR 1) Total Projected Expenditure 2022/23 Projected Variance RAG Service £000 £000 £000 LANDS AND BUILDINGS Cemetery Cemetery infrastructure (paths, walls, railings, signage) 70 1 70 0 G Environmental Protection Cemetery Provision – Elgin, Lossiemouth, Keith 60 20 60 0 G Environmental Protection Contribution to the cost of a new Mortuary 160 0 160 0 G Environmental Protection Parks & Open Spaces Paths, car parks, steps, walls, fences, signage 140 0 140 0 A Environmental Protection Waste Management Dallachy Landfill site – new calls, capping & reinstatement 906 100 906 0 G Environmental Protection NESS energy from waste – construction phase 7,777 440 7,337 0 G Environmental Protection Moycroft 0 8 0 0 G Environmental Protection Transportation Replace waterproof and expansion joints at multi-story car parks and lighting, car park resurfacing 430 0 430 0 G Transportation / Consultancy RTIF Rural Tourism Infrastructure Fund ( Fully Funded by Grant Funding) 750 1 750 0 G Transportation / Consultancy Item 10 Page 67
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Place based investment (Fully Funded by Grant Funding) 559 500 559 0 G Head of Service TOTAL - LANDS AND BUILDINGS 10,852 1,070 10,852 0 CAPITAL PROJECTS 2022 / 2023 (Continued) As at 30 June 2022 Current Capital Plan 2022/23 Actual to 30 June 2022 (QTR 1) Total Projected Expenditure 2022/23 Projected Variance RAG Service £000 £000 £000 INFRASTRUCTURE Bridges A941/ New Craigellachie Bridge 3,786 2 3,000 786 A Consultancy A941/100 Blackwater bridge, lower Cabrach 813 1 400 413 G Consultancy A941/340 New Bishopmill Bridge 10 0 10 0 G Consultancy B9103/100 Boat O Brig Bridge, Orton 4 0 15 (11) A Consultancy Remote footbridges 50 0 50 0 G Consultancy U117H/10 Bridge of Slateford / Tomnavoulin 232 1 250 (18) R Consultancy U170E/20 Kirkhill Drive, Lhanbryde 230 2 30 200 G Consultancy U173E/Lea Brige Forres 10 0 10 0 G Consultancy U82H/10 Aldunie Bridge, Cabrach / Dykeside 301 0 485 (184) R Consultancy U118E/10 Shougle Bridge 337 0 600 (263) R Consultancy Knockando Bridges 130 132 132 (2) G Consultancy A941/90 Blackwater Bridge 293 0 293 0 G Consultancy Lossiemouth Bridge 60 60 60 0 G Consultancy Flood Risk Management and Coastal Protection Page 68
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Elgin Flood Alleviation Scheme 149 2 149 0 G Environmental Protection CAPITAL PROJECTS 2022 / 2023 (Continued) As at 30 June 2022 Current Capital Plan 2022/23 Actual to 30 June 2022 (QTR 1) Total Projected Expenditure 2022/23 Projected Variance RAG Service £000 £000 £000 INFRASTRUCTURE Harbours Power Upgrade – Buckie Harbour 500 0 500 0 G Consultancy Replacement of life expired elements and upgrade 374 1 374 0 A Consultancy Burghead Groyne 250 0 250 0 G Consultancy Findochty sink hole 195 0 195 0 G Consultancy Findochty Pontoons 50 0 50 0 G Consultancy Buckie Harbour ice plant 15 0 18 0 G Consultancy Road Improvements A95 Landslip River Isla 1,199 0 1,199 0 G Roads Maintenance Carriageway resurfacing / reconstruction/ surface dressing 3,617 604 3,617 0 G Roads Maintenance Drainage and other works 400 18 400 0 G Roads Maintenance Footways 300 0 300 0 G Roads Maintenance Kerb Edge Replacement 50 0 0 50 A Roads Maintenance Timber Traffic 750 0 160 590 R Roads Maintenance Street Lighting Replacement Columns and Lights 800 2 800 0 A Roads Maintenance LED Lighting 213 0 213 0 G Roads Maintenance Road Safety Disability Adaptions 76 12 76 0 G Transportation New Road Signs and Markings 58 4 58 0 G Transportation Road Safety Barrier Provision 195 13 195 0 G Transportation /Consultancy Page 69
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Road Safety Provision 135 0 135 0 G Transportation CAPITAL PROJECTS 2022 / 2023 (Continued) As at 30 June 2022 Current Capital Plan 2022/23 Actual to 30 June 2022 (QTR 1) Total Projected Expenditure 2022/23 Projected Variance RAG Service £000 £000 £000 INFRASTRUCTURE Traffic Wards Road Junction Improvements 133 196 133 0 G Transportation LCTT Speyside Way 0 85 0 0 G Transportation TOTAL - INFRASTRUCTURE 15,728 1,135 14,168 1,560 VEHICLES PLANT & EQUIPMENT Vehicle & plant replacement Programme 5,563 1,189 5,563 0 A Roads Maintenance Facilities Management Equipment 13 2 13 0 G Environmental Protection Children’s Play Areas (Parkland) 253 18 253 0 A Environmental Protection Car charge Point Upgrades 0 63 0 0 G Roads Maintenance Waste Management Domestic & Trade Waste Bins 100 100 100 0 G Environmental Protection Gull Proof Bins 22 0 24 (2) G Environmental Protection Replacement HWRC 800 0 500 300 G Environmental Protection Upgrade of containers at Recycling Centres 20 0 20 0 G Environmental Protection Upgrade of Recycling Centres 255 0 255 0 G Environmental Protection Chemical Waste Disposal Points 15 0 15 0 G Consultancy Traffic Orchard Road Signal 192 20 192 0 G Transportation Traffic Data Collection Equipment 7 0 7 0 G Transportation Traffic Signal replacement 16 0 16 0 G Transportation TOTAL - VEHICLES PLANT & EQUIPMENT 7,256 1,292 6,958 298 Page 70
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APPENDIX 4 Major Capital Projects spanning more than 1 financial year (as at 30 June 2022) Description Approved Budget Total Expenditure in previous financial years Current 2022-23 Budget Actual spend to 2022-23 Remaining Budget 2022-23 Project Life Spend to 31/03/22 Projected Future Years Budget Required Estimated Final Cost Projected Budget Variance £000s £000s £000s £000s £000s £000s £000s £000s £000s LED Street lighting replacement programme 5,000 3,904 213 0 213 3,904 883 5,000 0 NESS Energy from waste 27,224 19,619 7,605 440 7,165 20,059 0 27,224 0 Total 32,224 23,523 7,818 440 7,378 23,963 883 32,224 0 Item 10 Page 73
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REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 6 SEPTEMBER 2022 SUBJECT: ECONOMIC RECOVERY KEY PERFORMANCE INDICATORS BY: DEPUTE CHIEF EXECUTIVE (ECONOMY, ENVIRONMENT AND FINANCE) 1. REASON FOR REPORT 1.1 To provide Committee with an annual report of the Key Performance Indicators (KPIs) for the Economic Recovery Plan for Moray. 1.2 This report is submitted to Committee in terms of Section III (F) (2) of the Council's Scheme of Administration relating to the exercise of functions that promote economic development. 2. RECOMMENDATION 2.1 It is recommended that the Committee considers and notes the impact of the Economic Recovery plan in supporting the Moray economy as it continues to recover from the COVID pandemic; 3. BACKGROUND 3.1 Moray Economic Partnership (MEP) established an Economic Recovery Plan for the region to provide support for business and the wider economy in response to the COVID pandemic. The plan is based around the principles of: • Smart growth: business continuity and resilience at the heart of the recovery process • Clean growth: transition to net zero, including promotion of home-working to reduce commuting • Inclusive growth: no geographic locations or sections of the community left behind • Fair work: ensuring employees are rewarded and benefit from economic recovery • Targeting disadvantage: enabling early recovery particularly for those reliant on child care, public transport, access to broadband and reskilling • Smart procurement: utilising public sector spend to maximise local economic impact and opportunity Item 11 Page 75
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3.2 A suite of Key Performance Indicators (KPIs) were identified to measure the effectiveness of the Economic Recovery Plan, and to allow any further action to be informed by local business needs. The KPIs were first reported to the meeting of this Committee on 7 December 2021, at which it was agreed for future reporting to be provided on an annual basis (paragraph 9 of the minute refers). 3.3 The KPIs identified were: • Local procurement content by public sector partners by both main and sub-contractors • Number of Apprenticeships (Foundation, Modern and Graduate) in all sectors • Number of inward investment activities by land and asset purchases • Number of expansion activities by land and asset purchase and planning and building warrant application • Gender Pay Gap • Number of start-ups in all sectors and their survival rate • Town Centre vacancies/start-ups and survival rates • Unemployment across all age brackets • % of unemployed people assisted into work from council operated/funded employability programmes. 4. KEY PERFORMANCE INDICATOR DATA 4.1 The initial KPI report provided a baseline of the economic recovery pre-and- post pandemic. This is the first report which will provide a measure of the pace and extent of the economic recovery, supported by the actions set out in the Economic Recovery Plan. 4.2 There is yet to be refreshed data published for some of the indicators since they were last reported on, so it has not been possible to provide more recent data for all of the KPIs, since the last reporting period. 4.3 It has also not been possible to provide data for the local procurement content by public sector partners for sub-contractor spend. Highlands and Islands Enterprise (HIE), NHS Grampian, and UHI Moray have all advised that they do not have a mechanism for recording such spend. In respect of this it should be noted it was agreed by MEP, at its meeting on 24 November 2021, that a mechanism would be created by each of the partners for capturing this data (paragraph 9 of the minute refers). 4.4 The Corporate Services Committee, at its meeting on 1 February 2022, approved changes to the Council procurement process to allow for capturing of sub-contract spend with the data to then be collated and analysed by the Community Wealth Building (CWB) Officer, following recruitment to this post (paragraph 8 of the minute refers). An officer was appointed in June of this year, which unfortunately did not provide enough time for this process to be implemented prior to the writing of this report. This data will be included in the next reporting period. Page 76
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4.5 Lastly, it was not possible to complete the analysis of the number of inward investment activities by land and asset purchases, due to a lack of available capacity. This data will also be provided in a subsequent report. 4.6 Some key insights from the KPI data analysed are provided in the following sections. The full KPI data is included in APPENDIX 1. 5. SMART GROWTH 5.1 Measuring the number of start-ups in all sectors and their survival rate provides insight into the level of local entrepreneurial activity and the relative health and resilience of small business. New business start-ups suffered as a result of the pandemic, with Business Gateway seeing a 42% reduction in demand between 2019/20 and 2020/21. However, this trend has now reversed, with the number of start-ups through Business Gateway increasing back towards the pre-COVID baseline, with 123 new businesses supported in 2021/22, up from 91 the previous year. The Moray Business Start-up Grant was launched by Business Gateway in September 2021 as part of the Economic Recovery Plan. 50 businesses across Moray were approved for finance of £1500 to help them begin trading. These businesses would have otherwise struggled to get the much needed finance to do so. The Moray Business start-up fund totalled £75,000 – 50/50 funded by Business Gateway and HIE. 5.2 As highlighted in the same data, the 3 year business survival rate has fallen since the start of the pandemic. This indicator is based on locally recorded data, calculating the percentage of the number of businesses who received start-up support through the local Business Gateway office 3 years prior who are still currently trading. Of the 132 businesses who received start-up support in 2018/19, there were 77% still trading. This is slightly below the rate of 78% from the previous year and represents a significant drop from the pre- pandemic rate. This highlights the impact of the pandemic upon small business right across the period of the pandemic and that businesses which lacked resilience were unable to navigate the challenges associated with the debt burden from bounce back loans and lack of town centre footfall. This indicator will provide a valuable measure of the health of the economy in the years ahead, in measuring the survival of business start-ups during the recovery phase. 5.3 Town centre vacancy rates were almost identical in 2022 across all five of the main town centres as they were in 2020. While the vacancy rates are still above the rate from 2018 in Elgin, Forres and Keith, this is a positive sign that footfall has returned and trading increased overall. However, the most notable change in the data from two years previously is that the number of available premises has fallen in three of the five town centres. In Elgin this has resulted in the availability of 18 fewer retail premises. This can in part be attributed to the Town Centre Capital Fund (TCCF), implemented through the Economic Recovery Plan. Through TCCF, 6 grants were awarded for town centres across Moray in 2020/21 for transforming empty space to living space, with a further 6 supporting the alteration of larger retail premises to be divided into smaller units. Demand for these interventions perhaps highlights a lack of Page 77
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confidence in the long term prospects of traditional high street retail among property owners. It also demonstrates the need for increased availability of small premises for independent retailers. 5.4 As demonstrated in the chart above, there was an increase in the number of expansion activities by commercial land and asset purchase across Moray in 2021, which is now above the pre-pandemic level with 163 in total. This suggests business and investor confidence in Moray is strong and reflects Scotland’s current position as the most attractive investment destination in the UK outside of London. The proposed development of new employment land and industrial sites within the Economic Recovery Plan will ensure Moray is well placed to capitalise on this. 6. INCLUSIVE GROWTH 6.1 There is yet to be gender pay gap data published for 2022, so there has been no change in this indicator since it was last reported on. Gender pay inequality is a complex issue with multiple causes. It is an objective of both the Moray Growth Deal and Moray Economic Strategy to reduce the rate. Page 78
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6.2 As highlighted in the previous report, the pandemic has had a notable influence upon the gender pay gap in Moray. The gender pay gap has continued to narrow at a national level, from 14.7% in 2019 to 11.5% in 2021. In Moray the gap has widened beyond the level of 21.9% in 2019, to 22.6% in the most recently available data. This is outlined in the chart above. 6.3 It is worth highlighting that gender pay data is gathered from the Annual Survey of Hours and Earnings, which has been subject to increased uncertainty during the pandemic given the challenges with data collection across this period. At this time, estimates for 2021 remain provisional and relate to the pay period at which time 3.7 million employees were still furloughed. 6.4 Median data has been referenced above as this is the preferred measure of average earnings as it is less affected by a relatively small number of very high earners and the skewed distribution of earnings. The analysis of gender pay considers the total gender pay gap between male and female workers across the population of Moray and Scotland, it is not an analysis of equal pay for male and female workers doing the same or similar work. 7. FAIR WORK 7.1 One of the initial economic consequences of the pandemic was a significant increase in the number of unemployed benefits claimants in Moray, due to a lack of labour market demand. The total number of people claiming unemployment benefits more than doubled from 2019 to 2021, as highlighted in the table below. Page 79
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7.2 However, this trend has now begun to reverse, with a 12.2% reduction in the number of people in Moray who are unemployed and claiming out of work benefits between 2021 and 2022. At a national level, this rate has reduced by 10.1%, highlighting that Moray is performing favourably compared to Scotland as a whole. The launch of the Moray Pathways employability service, alongside the Moray Employer Recruitment Incentive (MERI) and Kickstart schemes have proven effective in supporting local people back into work. However, it is important to note that there is a disparity across age groups, with a 28.7% reduction in the number of Under 25s claiming unemployment benefits, compared to just an 8.7% reduction in claimants among the 25 and over age group. 7.3 The pandemic has also affected the availability of skills development opportunities. There has been a reduction in the number of apprenticeships available across all sectors, as recorded by Skills Development Scotland. Although there has been a year on year increase in the availability of Modern Apprenticeships, with 366 starts in the most recent financial year, up from 341 in 2020/21. However, this is still significantly down on the 427 starts in 2018/19. 7.4 Unfortunately, the data for Graduate Apprenticeships and Foundation Apprenticeships is not yet published for 2021/22, so there has been no change to this data at this time. 7.5 An Apprenticeship Strategy for Moray is currently being drafted for review by Moray Economic Partnership on 7 September 2021 before it is proposed that this is presented for approval at the Community Planning Partnership Board meeting on 21 September 2022. The strategy will be submitted to the next meeting of this committee on 15 November 2022 for information following approval by the community planning partners. The strategy will seek to support significant growth in the availability of apprenticeships across Moray, aligned both to the needs of local industry and aspirations of the labour market. Page 80
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8. SMART PROCUREMENT 8.1 The proportion of local procurement from Moray Council, HIE, NHS Grampian, and UHI Moray is detailed in the following chart. The proportion and value of local spend from HIE and NHS Grampian has remained broadly consistent from the previous year. Spend data for UHI Moray was not provided for 2020/21, so a comparison is not possible. 8.2 However, the proportion of Council spend with Moray based suppliers has increased by in excess of 2% year on year. This has equated to an additional £3M being retained in the local economy. Procurement colleagues have advised that prior to the pandemic the Council had seen a year on year increase in contractual volume from 2017/18 onwards, mainly down to the increasing use of mini competitions and call offs from frameworks. Though this had stalled during the pandemic with little work being done at a local level, we can now see this trend reversing. With Category “C” contracts (local council developed contracts) increasing from 45 in 2020/2021 to 104 in 2021/2022. 8.3 During 2021/22, the total value of procurement spend with Moray based suppliers from each of the local public anchor institutions equated to: • Moray Council: £33,874,277 • NHS Grampian: £1,830,191 • UHI Moray: £640,374 • Highlands and Islands Enterprise: £51,140 8.4 As approved by Council on 28 October 2020, a procurement consultancy initiative has been made available for Moray based businesses via Business Gateway (paragraph 14 of the minute refers). This provides assistance with Public Contract Scotland (PCS) registration and tender preparation. While this programme of support continues to be promoted, uptake has been limited to date, with the 1-2-1 support accessed by just 6 businesses. 8.5 Supplier development forms part of the activity linked to the development of a Community Wealth Building (CWB) approach. The recently appointed CWB Page 81
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Officer will coordinate the delivery of supplier development activity through the Supplier Development Forum, which consists of procurement officers from the Council, HIE, NHS Grampian, and UHI Moray. This group will work to coordinate the availability of procurement support via the Supplier Development Programme and the promotion of opportunities for local procurement to stimulate the local market to access these. 9. SUMMARY OF IMPLICATIONS (a) Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) Effective monitoring of economic activity supports the corporate plan priority to promote economic development and growth, as well as the LOIP priority of a growing and sustainable economy. (b) Policy and Legal There are no policy and legal issues arising directly from this report. (c) Financial implications There are no financial implications arising directly from this report. (d) Risk Implications There are no risk implications arising directly from this report. (e) Staffing Implications There are no staffing implications arising directly from this report. (f) Property There are no property issues arising directly from this report. (g) Equalities/Socio Economic Impact The Economic Recovery Plan aims to promote fair work and inclusive economic growth. (h) Climate Change and Biodiversity Impacts There are no biodiversity issues arising directly from this report. It is likely that increased local procurement spend will have a positive impact the Council’s carbon output, through reduced emissions via transport and logistics. (i) Consultations Depute Chief Executive (Economy, Environment and Finance), the Head of Economic Growth and Development, the Business Gateway Manager, the Economic Growth & Regeneration Manager, the Legal Services Manager, the Payments Manager, Principal Accountant, the Equal Opportunities Officer and Committee Services Officer have been consulted and their comments incorporated. Page 82
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10. CONCLUSION 10.1 The Economic Recovery Plan has been instrumental in supporting Moray’s economy to mitigate the challenges posed by the COVID pandemic. The actions outlined in the plan have assisted in supporting people back into work and training, while providing vital funding to create new business opportunities. 10.2 Continued delivery and monitoring of the Economic Recovery Plan is essential to maintain the current trajectory of the economic recovery, and to highlight any areas of immediate concern so the mitigating action can be implemented. 10.3 Community Wealth Building is a vital component in supporting the economic recovery, through strengthening the small business and social enterprise sectors. In support of this, it is essential that all four public partners make a robust commitment to capturing local sub- contract spend, if there is to be an accurate picture of the current level and impact of local procurement. With a CWB Officer now in post at the Council, a process will be devised for developing this internally. Author of Report: Chris Muir, Senior Officer Economic Strategy and Development Background Papers: Ref: Page 83
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APPENDIX 1 Local procurement content by all public sector partners by both main and sub-contractors 2019/20 2020/21 2021/22 Moray Council % of procurement spend in Moray 21.96% 23.56% 25.80% Moray Council total procurement spend in Moray £34,117,175 £30,843,380 £33,874,277 NHS Grampian % of procurement spend in Moray 0.61% 1.03% 0.76% NHS Grampian total procurement spend in Moray £1,252,306 £2,022,044 £1,830,191 HIE % of procurement spend in Moray 0.93% 0.22% 0.15% HIE total procurement spend in Moray £120,033 £54,090 £51,140 UHI Moray % of procurement spend in Moray Not available Not available 21.96% UHI Moray total procurement spend in Moray Not available Not available £640,374 Number of apprenticeships in all sectors 2019/20 2020/21 2021/22 Number of Foundation Apprenticeships in Moray 40 38 Not available Number of Modern Apprenticeships in Moray 399 341 366 Number of Graduate Apprenticeships in Moray 11 12 Not available Number of Foundation Apprenticeships in Scotland 1,480 3,761 Not available Number of Modern Apprenticeships in Scotland 27,875 18,655 25,401 Number of Graduate Apprenticeships in Scotland 1,157 1,158 Not available Item 11 Page 85
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APPENDIX 1 Number of expansion activities by land and asset purchase and planning application 2019/20 2020/21 2021/22 Number of commercial planning applications 129 101 132 2019 2020 2021 Number of commercial land and asset purchases 147 112 163 Gender pay gap 2019 2020 2021 Median gender pay gap in Moray 21.9 19.3 22.6 Median gender pay gap in Scotland 14.7 11.6 11.5 Number of start-ups in all sectors and their survival rate 2019/20 2020/21 2021/22 Number of new Business start-ups through Business Gateway 157 91 123 Business Gateway 3 year survival rate 88% 78% 77% Town centre vacancy rates 2018 2020 2022 Number of vacant retail premises in Elgin town centre of those available 25 of 359 (6.7%) 36 of 290 (12.4%) 32 of 272 (11.7%) Number of vacant retail premises in Forres town centre of those available 3 of 138 (2.2%) 12 of 100 (12.0%) 12 of 99 (12.1%) Number of vacant retail premises in Keith town centre of those available 9 of 99 (9.1%) 12 of 86 (13.9%) 12 of 83 (14.4%) Number of vacant retail premises in Buckie town centre of those available 10 of 107 (9.3%) 6 of 86 (7.0%) 6 of 86 (7.0%) Number of vacant retail premises in Lossiemouth town centre of those available 6 of 68 (8.8%) 1 of 50 (2.0%) 1 of 55 (1.8%) Page 86
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APPENDIX 1 Unemployment across all age brackets 2020 2021 2022 16-24 year olds not in employment and receiving universal credit 830 703 515 16-24 year olds receiving jobseekers allowance 16 34 10 Total 16-24 year olds 846 737 525 25-49 year olds not in employment and receiving universal credit 2,104 2,125 2,014 25-49 year olds receiving jobseekers allowance 112 177 70 Total 25-49 year olds 2,216 2,302 2,084 Over 50s not in employment and receiving universal credit 903 979 997 Over 50s receiving jobseekers allowance 147 202 98 Total over 50s 1,050 1,181 1,095 % of unemployed people assisted into work from council operated/funded employability programmes 2019/20 2020/21 2021/22 Number of people engaged in employability programmes 80 97 361 Number of people assisted into employment 10 16 50 % of people engaged assisted into employment 13% 16% 14% Page 87
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