A hunt is on for a contractor who would be willing to take over Scottish Borders Council's network of 41 loss-making public toilets.
The move towards privatisation of yet another front line Borders local government service follows the financially catastrophic introduction of 30 pence charges at 27 of the facilities - a policy which yielded a fraction of the expected revenue, mainly due to the activities of 'toilet cheats'.
SBC has just published a notice on the Public Contracts Scotland website inviting declarations of interest from businesses prepared to take over the provision of public toilet services from April 2020.
The notice says: "The Council currently manages and maintains 41 facilities and is seeking a long-term solution for the provision of all facilities at various sites situated within the Scottish Borders area.
"Of the 41 facilities, 27 are currently charged for access at
the point of use at a rate of 30 pence, with the remainder being free (there is
no charge for access to RADAR Accessible facilities).
"Given current budget
pressures the Council are seeking a service provision that is efficient and
financially sustainable. Currently the income generated from paid access to the
toilets at 27 locations, is insufficient to offset total operational costs of
the network.
"It is intended that a Contract shall be for a period of 5
years with the option to extend for a further 5 years, commencing 1st April
2020.
"The Council would like to measure the level of interest from
contractors who would be interested in providing and managing this service and
would therefore request contractors who are interested in this opportunity to
complete and return the attached questionnaire by 14th June 2019."
A decision by councillors in 2017 to levy the 30 pence entry fee on users was meant to bring in more than a quarter of a million pounds in a full year. But it became clear within a matter of months the target of £268,000 would not be reached with projections showing income of a meagre £89,000.
Elected members were told in a report compiled last year that 41-weeks into the charging regime a budgeted for total of £211,373 had, in fact, produced only £70,215. So a shortfall of £141,159.
The figures for some individual toilets illustrated how wide of the mark the estimates had been. For example, the site at Lothian Park, Jedburgh was expected to attract £29,041; the actual sum collected was £4,604.
There was a similar sorry monetary tale at the St Mary's Loch property which had an estimate of £15,009 but produced a hugely disappointing £1,139.
Councillors were informed: "What is apparent from financial monitoring is that revenue
income received to date is significantly less than the estimated levels that
were forecast. A revised full year of income of £89k is now being estimated, a
shortfall of some £179k which in turn was expected to also cover the cost of
the implementation of Comfort Schemes.
"A significant body of anecdotal evidence around payment
avoidance has been received and observed, including from Elected Members. This
centres around tailgating (following the previous paying entrant into the
facility), the ‘good Samaritan’ (people exiting the facility allowing free
access by holding the entry door open), families paying one fee for multiple
usage or antisocial behaviour, where people vandalise doors or wedge them open,
allowing free access to all."
Options considered, but rejected, included increasing the 30 pence charge
to 50 pence while 24 of the 41 facilities were identified for possible closure
although this option did not find support either.
The transfer of the toilets to a third party will mean the council retaining ownership of each facility. Other conditions likely to be attached to any privatisation deal will include agreement to an annual fixed management fee. Guaranteed retention of all
facilities for a defined period.
There is also provision for "Arrangements for third party provider taking
over the service (provision, maintenance, staff TUPE). Income generation
(Pain/Gain sharing mechanism). Reviewing the estate considering proposals to
change/improve efficiency and generation of additional income. For example,
where several cubicles exist to reduce the numbers of cubicles to improve
efficiency and utilisation, provide bike wash facilities, implement new
technologies, complimentary commercial ventures etc. Joint shared investment
for improvements."
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