Policy And Resources Committee - 14/03/2011

At a MEETING of the POLICY AND RESOURCES COMMITTEE held at Dundee on 14th March, 2011.

Present:-

BAILIES

COUNCILLORS

Councillor Ken GUILD, Convener, in the Chair.

The minute of meeting of this Committee of 14th February, 2011 was held as read.

Unless marked thus * all items stand delegated.

I MINUTES

(a) PERSONNEL APPEAL SUB-COMMITTEE - 31ST JANUARY, 2011

(b) SUPERANNUATION INVESTMENT SUB-COMMITTEE - 21ST FEBRUARY, 2011

The minutes of meetings of the above Sub-Committees, copies of which are appended hereto (Appendix I and II), were submitted for information and record purposes.

II REVENUE MONITORING 2010/2011

There was submitted Report No 131-2011 by the Director of Finance, providing the Committee with an analysis of the 2010/2011 Projected Revenue Outturn as at 31st January, 2011 monitored against the adjusted 2010/2011 Revenue Budget.

The Committee:-

(i) noted that the overall General Fund 2010/2011 Projected Revenue Outturn as at 31st January, 2011 showed an overspend of 1,502,000 against the adjusted 2010/2011 Revenue Budget;

(ii) noted that the Housing Revenue Account as at 31st January, 2011 was projecting a breakeven position against the adjusted HRA 2010/2011 Revenue Budget;

(iii) instructed the Director of Finance to take every reasonable action to ensure that the 2010/2011 revenue expenditure was below or in line with the adjusted Revenue Budget; and

(iv) instructed the Director of Finance, in conjunction with all Chief Officers of the Council, to continue to monitor the Council's 2010/2011 Projected Revenue Outturn.

III CAPITAL EXPENDITURE MONITORING 2010/2011

There was submitted Report No 133-2011 by the Director of Finance appraising members of the latest position regarding the Council's Capital Expenditure Programme 2010/2011.

The Committee noted the contents of the report.

IV RELIEF OF RATES - CHARITY RELIEF

There was submitted Report No 137-2011 by the Director of Finance seeking authorisation to grant charity relief on the undernoted non-domestic properties:-

The Committee authorised accordingly.

V DUNDEE COMMUNITY REGENERATION FUND 2010/2011 - 2012/2013

Councillors Black and Asif declared a non-financial interest in this item by virtue of being Council representatives on the Grey Lodge Settlement Association.

Councillor Hunter declared a non-financial interest in this item by virtue of being the Council's representative on the Ardler Village Trust.

There was submitted Report No 140-2011 by the Assistant Chief Executive relative to the above.

The Committee approved the funding process and the proposals contained in Section 5.2 of the report appended hereto (Appendix III).

VI OPERATING MODEL REDESIGN - DEPARTMENTAL INFORMATION TECHNOLOGY PROVISION

There was submitted Report No 141-2011 by the Head of Information Technology and Head of Personnel regarding a review of departmental based information technology provision.

The Committee:-

(i) approved the transfer of three staff members and posts from the Education Department MIS Team to the IT Division and deletion of two posts in the Education Department MIS Team;

(ii) approved the transfer of four staff members and posts from the Social Work Department IT Section to the IT Division;

(iii) approved the transfer of eight staff members and posts from the City Development Department to the IT Division;

(iv) approved the transfer of five staff members and posts from the Revenues Division to the IT Division and deletion of one of these posts from May 2011;

(v) approved the transfer of two staff members and posts from the Telephone Services Section of the Support Services Department to the IT Division;

(vi) instructed the Head of Information Technology to develop a permanent modified IT Division structure; and

(vii) authorised the Head of Information Technology and Head of Personnel to process necessary establishment changes.

VII SUSTAINABLE DEVELOPMENT GOVERNANCE FRAMEWORK

There was submitted Report No 57-2011 by the Assistant Chief Executive seeking approval for the Council's updated governance arrangements for its continued approach to corporate and departmental sustainable development.

The Committee:-

(i) approved the updated Sustainable Development Governance Framework appended to the report;

(ii) adopted the Sustainable Development Policy Statement set out on page 4 of the Governance Framework, it being noted that this would replace the Council's current Sustainable Policy;

(iii) adopted the Indicators in Table 1, Appendix 1, appended to the report as the Council's key corporate Indicators for Sustainable Development;

(iv) agreed that ongoing corporate and departmental performance be reported directly to and assessed by the Climate Change Board, it being noted that the Board would replace the existing Sustainability Policy Implementation Group and Review Group; and

(v) agreed that an annual Sustainable Development progress report be submitted to Committee for approval.

VIII LEISURE AND CULTURE NEW CHARITABLE ORGANISATION - ADVICE FROM INDEPENDENT LEGAL ADVISERS ON ORGANISATIONALSTRUCTURE AND FORMAT

On a reference to Article II of the minute of meeting of this Committee of 10th February, 2011, there was submitted Report No 147-2011 by the Director of Leisure and Communities and Depute Chief Executive (Support Services), providing the Committee with advice from the independent legal advisers (Burness) on the organisational structure and format of the Leisure and Culture New Charitable Organisation.

The Committee:-

(i) accepted the recommendations of the independent legal advisers (Burness) contained in Appendix 1 (Section 3), "Choice of Vehicle - Options Analysis", namely:-

(a) that the Director of Leisure and Communities and Depute Chief Executive (Support Services) pursue Option 3 - the use of a Scottish Charitable Incorporated Organisation (SCIO) for operations;

(b) that the new arrangements take account of the advantages of establishing a trading subsidiary, established as a Community Interest Company (CIC);

(c) that a transition group or shadow board be established to guide the work of Burness, protect Dundee City Council's interest and take account of the interests of Dundee Leisure, to ensure the smooth transition to the new arrangements; and

(ii) agreed that the membership of the transition group or shadow board, as detailed in (i)(c) above, be as follows:-

- Director of Finance - Marjory Stewart

- Director of Leisure and Communities - Stewart Murdoch

- One member of the SNP Group

- One member of the Labour Group

- One member of the Conservative Group

- One Independent representative - Sinclair Aitken, past Chair of Dundee Rep

In addition, the Committee agreed that one trade union representative be added to the membership of the transition group or shadow board shown in (ii) above and resolved that no Directors of the proposed Community Interest Company (CIC) referred to in paragraph (i)(b) above shall receive any remuneration for their role as Directors of (CIC).

Furthermore, Councillor Guild, seconded by Councillor Barrie, moved that it be remitted to the Chief Executive to ask the trade unions to nominate a representative to service on the transition group or shadow board.

As an amendment, Councillor Keenan, seconded by Bailie Regan, moved that John McAllion or a representative of GMB Scotland be appointed to serve on the transition group or shadow board.

On a division, there voted for the motion - Councillors Guild, Barrie, Black, Bowes, Andy Dawson, Will Dawson, Duncan, Fordyce, Hunter, Lynn, Melville, Roberts, Ross, Hay, Macpherson, Bailies Sawers, Wallace, Scott and Depute Lord Provost Borthwick (19); and for the amendment - Councillors Keenan, Asif, Bidwell, Ferguson, Gordon, McCready, Bailies Regan, Wright and Lord Provost Letford (9) - whereupon the motion was declared carried.

IX COUNTER-FRAUD REPORT - AS AT 31ST DECEMBER, 2010

There was submitted Report No 152-2011 by the Director of Finance informing elected members on the Revenue Division's Housing Benefit and Council Tax Benefit counter-fraud activity as at 31st December, 2010.

The Committee approved the report.

X TREASURY MANAGEMENT STRATEGY STATEMENT AND ANNUAL INVESTMENT STRATEGY 2011/2012

There was submitted Report No 144-2011 by the Director of Finance relative to the above.

The Committee:-

(i) noted that in terms of the Treasury Policy Statement, the Director of Finance was obliged to present the annual Treasury Management Strategy at the start of each financial year; and

(ii) approved the strategy proposed by the Director of Finance for 2011/2012 as set out in the document "Treasury Management Strategy 2011/2012".

XI DUNDEE PARTNERSHIP FUNDING FOR DEAP

Reference was made to Article V of the minute of meeting of this Committee of 22nd March, 2010, wherein the Committee agreed to endorse a decision of the Dundee Partnership to award funding for the provision of job brokerage services to DEAP.

It was reported that the Partnership had considered the performance of DEAP during 2010/2011 and it had agreed that DEAP be awarded Dundee Partnership Funding for the period 2011/2013 subject to continued satisfactory performance.

The Committee noted accordingly.

The Committee resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the press and public be excluded from the meeting for the undernoted items of business on the grounds that they involved the likely disclosure of exempt information as defined in paragraph 9 of Part I of Schedule 7A of the Act.

XII APPOINTMENT OF LEGAL ADVISERS TO ASSIST WITH THE CREATION OF THE NEW LEISURE AND CULTURAL SERVICES ORGANISATION

On a reference to Article VII of the minute of meeting of this Committee of 10th January, 2011 and after considering Agenda Note AN36-2011 relative to the above, the Committee noted that in view of the timescales involved, the recommendation in this note had been approved by the Depute Chief Executive (Support Services) in consultation with the Convener of the Policy and Resources Committee and spokespersons from the other political groups.

XIII OLYMPIC GAMES 2012

After considering Agenda Note AN37-2011 relative to the above, the Committee noted that in view of the timescales involved, the recommendation in this note had been approved by the Chief Executive in consultation with the leader of the Administration and the leaders of the other political groups.

The Committee noted accordingly.

Ken GUILD, Convener.

APPENDIX I

At a MEETING of the PERSONNEL APPEALS SUB-COMMITTEE held at Dundee on 31st January, 2011.

Present:-

Councillor Stewart HUNTER

Councillor Craig MELVILLE

Councillor Mohammed ASIF

Councillor Stewart HUNTER, Convener, in the Chair.

The minute of meeting of this Committee of 24th January, 2011 was held as read.

Unless marked thus * all items stand delegated.

The Sub-Committee resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the press and public be excluded from the meeting for the undernoted item of business on the grounds that it involved the likely disclosure of exempt information as defined in paragraph 1 of Part I of Schedule 7A of the Act.

APPEAL AGAINST DISMISSAL (PA9/10)

It was reported that an appeal against dismissal from an employee of the Housing Department had been submitted.

The Sub-Committee heard the Council's representative and witnesses and thereafter, the Appellant, and his representative.

After questions had been put and answers given by both parties to each other and the witnesses, and by members of the Sub-Committee, the parties withdrew.

Thereafter, following careful consideration of all the information, the Sub-Committee agreed that the grounds of the appeal had been substantiated and that the appeal be upheld.

Stewart HUNTER, Convener.

APPENDIX II

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 21st February, 2011.

Present:-

Bailie Willie SAWERS

Councillor Jimmy BLACK

Councillor Andrew DAWSON

Bailie Willie SAWERS, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I APOLOGIES AND SUBSTITUTES

Apologies had been submitted by Bailie Rod Wallace, Bailie George Regan and Mr Rod McKay, UNISON.

II TAYSIDE SUPERANNUATION FUNDS BUSINESS PLAN 2011/2012

There was submitted Report No 113-2011 by the Director of Finance introducing the eighth annual Business Plan for the Tayside Superannuation Funds.

The Sub-Committee noted the information within the report and approved the 2011/2012 Business Plan which applied to the administration and management of the Tayside Superannuation Fund and the Tayside Transport Superannuation Fund.

III TAYSIDE SUPERANNUATION FUNDS RISK REGISTER

There was submitted Report No 114-2011 by the Director of Finance.

This report introduced the Risk Register for the Tayside Superannuation Funds.

The Sub-Committee approved the Risk Register for the Tayside Superannuation Fund and Tayside Transport Superannuation Fund.

IV STATEMENT OF INVESTMENT PRINCIPLES REVIEW

There was submitted Report No 115-2011 by the Director of Finance reviewing Statements of Investment Principles for the Tayside Superannuation Fund and the Tayside Transport Superannuation Fund.

The Sub-Committee noted the information within the report and approved the Statements of Investment Principles for both the Tayside Superannuation Fund and the Tayside Transport Superannuation Fund.

V FUNDING STRATEGY STATEMENT

There was submitted Report No 116-2011 by the Director of Finance reviewing the Funding Strategy Statements for the Tayside Superannuation Funds.

The Sub-Committee approved the Funding Strategy Statements for Tayside Superannuation Fund and Tayside Transport Superannuation Fund.

VI TREASURY MANAGEMENT STRATEGY

There was submitted Report No 117-2011 by the Director of Finance reviewing the Treasury Management Strategy for Tayside Superannuation Fund.

The Sub-Committee approved the Treasury Management Strategy, including list of permitted counterparties.

The Sub-Committee resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the press and public be excluded from the meeting for the undernoted items of business on the grounds that they involved the likely disclosure of exempt information as defined in paragraphs 4, 6 and 11 of Part I of Schedule 7A of the Act.

VII TAYSIDE SUPERANNUATION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 118-2011 by the Director of Finance relating to Performance Summaries for the quarter, twelve months and three years to 31st December, 2010, and reviewing the investment performance of the Main Fund's four Fund Managers for the quarter to 31st December, 2010. It also considered the performance of the Transport Fund which shared two of these managers.

The Sub-Committee noted the information contained therein with regard to the performance of the Tayside Superannuation Fund and Tayside Transport Superannuation Fund and their Fund Managers.

(b) PERFORMANCE SUMMARY (PROPERTY PORTFOLIO)

There was submitted Report No 119-2011 by the Director of Finance relating to the Property Portfolio performance for the quarter, twelve months and three years to 31st December, 2010.

This report also reviewed the investment performance of the Property Portfolio for the periods to 31st December, 2010.

The Sub-Committee noted the information contained therein with regard to the performance of the Property Portfolio.

(c) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 80-2011 by the Director of Finance summarising investments and transactions during the period 1st October to 31st December, 2010, and reviewing the investment activities of the Main Fund's five Fund Managers for the quarter to 31st December, 2010. The Transport Fund shared three of these managers and the transactions were included.

The Sub-Committee noted the information contained therein with regard to the activities of the Tayside Superannuation Fund and Tayside Transport Superannuation Fund and their Fund Managers.

(d) QUARTERLY FUNDING REPORT

There was submitted Report No 120-2011 by the Director of Finance which considered the current funding level of the Funds as assessed by the Fund Actuary.

The Sub-Committee noted the report.

VIII PRESENTATION

Nick Birchall and James Griffin of Fidelity gave a short presentation on portfolios and performance over the previous 12 months.

Nick reported that the different regional equity portfolios had experienced varying degrees of success in a volatile market with overseas equities out-performing European ones. On an absolute return basis benchmarks were out-performed over the period.

Thereafter, James Griffith outlined his investment approach identifying characteristics he looked for to identify potential industry winners.

Nick then summarised the bond portfolio advising that the traditional gilt market had recently declined but corporate bonds remained attractive.

A short question and answer session then followed, after which, the Convener expressed his thanks for an informative presentation.

Willie SAWERS, Convener.

APPENDIX III