Policy And Resources Committee - 08/12/2014

At a MEETING of the POLICY AND RESOURCES COMMITTEE held at Dundee on 8th December, 2014.

Present:-

BAILIES

COUNCILLORS

Councillor Ken GUILD, Convener, in the Chair.

The minute of meeting of this Committee of 10th November, 2014 was held as read.

Unless marked thus * all items stand delegated.

I DECLARATION OF INTEREST

No declarations of interest were made.

II MINUTE - PENSION INVESTMENT SUB-COMMITTEE

The minute of meeting of the Pension Investment Sub-Committee of 27th October, 2014, a copy of which is appended hereto (Appendix I), was submitted for information and record purposes.

III REVENUE MONITORING

There was submitted Report No 451-2014 by the Director of Corporate Services providing an analysis of the 2014/2015 Projected Revenue Outturn as at 31st October, 2014 monitored against the adjusted 2014/2015 revenue budget.

The Committee:-

(i) noted that the overall General Fund 2014/2015 Projected Revenue Outturn as at 31st October, 2014 was projecting an underspend of 45,000 against the adjusted 2014/2015 Revenue Budget;

(ii) noted that the Housing Revenue Account as at 31st October, 2014 was projecting a breakeven position against the adjusted HRA 2014/2015 Revenue Budget;

(iii) instructed the Director of Corporate Services to take every reasonable action to ensure that the 2014/2015 revenue expenditure was below or in line with the adjusted Revenue Budget; and

(iv) instructed the Director of Corporate Services, in conjunction with all Chief Officers, to continue to monitor the Council's 2014/2015 Projected Revenue Outturn.

IV CAPITAL MONITORING

There was submitted Report No 446-2014 by the Director of Corporate Services appraising members of the latest position regarding the Council's Capital Expenditure Programme for 2014/2015.

The Committee noted the contents of the report.

V DUNDEE COMMUNITY REGENERATION FUND 2014/2015

There was submitted Report No 452-2014 by the Chief Executive relative to the above.

The Committee noted the Community Regeneration Fund allocations for 2014/2015 and approved the funding proposals contained in Section 5.2 of the report appended hereto. (Appendix II).

VI TREASURY MANAGEMENT ACTIVITY 2014/2015 (6 MONTHS TO 30TH SEPTEMBER, 2014)

On a reference to Article XVIII of the minute of meeting of this Committee of 22nd April, 2013, there was submitted Report No 431-2014 by the Director of Corporate Services reviewing the Treasury Management activities for the period 1st April, 2014 to 30th September, 2014.

The Committee noted the information contained therein.

VII INVESTMENT IN EAST CENTRAL HUBCO (BALDRAGON ACADEMY)

On a reference to Article IV of the minute of meeting of this Committee of 19th May, 2014, there was submitted Report No 439-2014 by the Director of Corporate Services outlining the investment opportunity for the Council to invest in the East Central Hubco Project to replace Baldragon Academy.

The Committee:-

(i) noted the risks and benefits of the investment outlined in the report;

(ii) authorised the Director of Corporate Services to determine the extent of investment by the Council up to an estimated maximum of 920,000 for a period of up to 25 years subject to due diligence; and

(iii) noted that the Director of Corporate Services would report back following completion of any investment.

VIII HEALTH AND SOCIAL CARE INTEGRATION

On a reference to Article VII of the minute of meeting of this Committee of 27th October, 2014, there was submitted Report No 468-2014 by the Chief Executive seeking approval to consult on a draft integration scheme for Dundee.

The Committee:-

(i) agreed that the proposed draft integration scheme for Dundee be the subject of consultation between December, 2014 and February, 2015; and

(ii) noted that the Chief Executive would bring a final draft integration scheme to this Committee on 9th March, 2015 for approval.

IX RELIEF OF RATES - CHARITY RELIEF

The Committee heard a deputation from Mr Doug McLaren relative to shop premises at 109-111 High Street, Dundee, and after he had stated his case and answered questions he was thanked for his attendance and withdrew.

There was submitted Report No 457-2014 by the Director of Corporate Services relative to the above.

The Committee agreed that the application from Mr Doug McLaren, t/a Lochee Re-Use Centre for premises at 109-111 High Street, Lochee, Dundee be deferred and that it be remitted to the Director of Corporate Services to submit a report with further information to this Committee.

The recommendations detailed in the report, with regard to the other applications, were approved.

X REVIEW OF LONG-TERM EMPTY PROPERTY DISCOUNT

There was submitted Report No 440-2014 by the Director of Corporate Services advising of a change in legislation governing the level of Council Tax discount awarded to long-term empty properties and the option to introduce an additional charge.

The Committee:-

(i) noted the content of the report and the options which were available to the Council in varying the discount policy and the objectives of changing this policy;

(ii) approved the reduction of the existing 50% Council Tax discount on properties which were both unoccupied and unfurnished to 10% for the 6 to 12 month period from 1st April, 2015;

(iii) agreed to implement revised Council Tax charges on long-term empty properties on a phased basis; 100% of charge from 1st April, 2015 and 200% of charge (ie 100% surcharge from 1st April, 2016); and

(iv) noted that the possibility of a shared services approach, working closely with Shelter Scotland for an Empty Homes Officer to progress initiatives locally was being explored.

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 item of business on the grounds that it involved the likely disclosure of exempt information as defined in paragraphs 6 and 9 of Part I of Schedule 7A of the Act.

XI PROCUREMENT OF RESIDUAL WASTE PARTNERSHIP CONTRACT - UPDATE

After considering Report No 469-2014 by the Director of Corporate Services relative to the above, the Committee approved the recommendations detailed in the report.

Ken GUILD, Convener.

At a MEETING of the PENSION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 27th October, 2014.

APPENDIX I

Present:-

Bailie Willie SAWERS

COUNCILLORS

Bailie Willie SAWERS, Convener, in the Chair.

I DECLARATION OF INTEREST

No declarations of interest were made.

II TAYSIDE PENSION FUNDS RISK REGISTER

There was submitted Report No 385-2014 by the Director of Corporate Services updating the Risk Register for the Tayside Pension Funds.

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

III LGPS (SCOTLAND) NEW GOVERNANCE ARRANGEMENTS

There was submitted Report No 387-2014 by the Director of Corporate Services providing an overview of the new governance arrangements and documentation available which accompany the 2015 scheme and the steps required by each administering authority to form a local Pension Board by 1st April, 2015.

The Sub-Committee agreed to:-

(i) note the content of the report;

(ii) provide advice on employer representative membership of the Pension Board; and

(iii) agree that authority be delegated to the Chair to approve the Tayside Pension Fund response to the draft regulations in consultation with the members of the Sub‑Committee.

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.

IV TAYSIDE PENSION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 384-2014 by the Director of Corporate Services relating to Performance Summaries for the quarter, twelve months, three years, five years and ten years to 30th June, 2014 reviewing the investment performance of the Main Fund's five Fund Managers (including Property) and the Financing Fund for the quarter to 30th June, 2014. It also considered the performance of the Transport Fund which invested with three of these managers.

The report compared investment performance of the Funds with the Funds' specific benchmarks which consisted of various stock and security market indices.

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

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 350-2014 by the Director of Corporate Services summarising investments and transactions during the period 1st April to 30th June 2014 reviewing the investment activities of the Main Fund's seven Fund Managers for the quarter to 30th June, 2014. The Transport Fund shared three of these Managers and their transactions were included.

The report summarised the transaction of each Fund Manager and showed the market values of the Main and Transport Fund.

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

V TRIENNIAL ACTUARIAL VALUATION TO 31ST MARCH, 2014

A position update was given to members by the Fund Actuary.

The Sub-Committee noted the findings of the Fund Actuary.

VI INVESTMENT IN TOBACCO - EMPLOYER CONSULTATION OUTCOME

There was submitted Report No 386-2014 by the Director of Corporate Services reviewing the outcome of employer consultation in relation to Tayside Pension Fund's investment policy regarding direct investments in the tobacco industry.

The Sub-Committee agreed that:-

(i) the Tayside Pension Fund recognised that investing in tobacco companies was in direct conflict with the policies of the Scottish Government on the prevention of cancer and the promotion of good health and long-life and agreed to stop investing in tobacco companies, subject to the process described in part (ii) of this motion below; and

(ii) the Tayside Pension Fund, through each of its Fund Managers, would keep the issue of alternative investments to tobacco under constant review and that, as soon as a Fund Manager identified other investments which would provide satisfactory returns without materially affecting the volatility of risk and return or impacting on current investment benchmarks, the Fund Managers would reduce the Fund's investment in tobacco, the Fund's finding aim being to disinvest from tobacco stocks, where investment circumstances permit.

VII PRESENTATION

Tom Wright and Fiona McLeod of Baillie Gifford gave a short presentation.

A summary of the performance of the Portfolio was given noting the key performance drivers and comparison of this to benchmark figures. It was noted that the Portfolio was continuing to out-perform its benchmark.

The Chair thanked the speakers for their presentation.

Willie SAWERS, Convener.

APPENDIX II