Policy And Resources Committee - 08/06/2015

At a MEETING of the POLICY AND RESOURCES COMMITTEE held at Dundee on 8th June, 2015.

Present:-

BAILIES

COUNCILLORS

Councillor Ken GUILD, Convener, in the Chair.

The minute of meeting of this Committee of 18th May, 2015 was held as read.

Unless marked thus * all items stand delegated.

I DECLARATIONS OF INTEREST

Lord Provost Duncan, Councillors Hunter, Gordon and McCready declared a non-financial interest in Articles VII and XIII by virtue of being Council representatives on Leisure and Culture Dundee.

II MINUTE - PENSION INVESTMENT SUB-COMMITTEE OF 2ND MARCH, 2015

The minute of meeting of the above Sub-Committee, a copy which is appended hereto (Appendix I), was submitted for information and record purposes.

III SERVICE AND MANAGEMENT STRUCTURES

There was submitted Report No 216-2015 by the Chief Executive, seeking approval to implement revised service delivery and senior management arrangements within the Council.

The Committee:-

(i) approved the revised management and service structures in Appendices 1 and 3 of the report;

(ii) adopted the Dundee City Council pay and grading structure proposed in Appendix 2 of the report, incorporating the Living Wage;

(iii) supported the proposal to provide at least 150 career development opportunities for young people under 25 in the City Council by the end of 2016/2017;

(iv) authorised the Chief Executive and Council Management Team to implement the proposals in the report over the next 12-15 months, following consultation with relevant Trade Unions and employees;

(v) noted that further reports would be submitted to Council Committees as required on the detailed design and implementation of service management and delivery arrangements; and

(vi) remitted to the Head of Democratic and Legal Services to make consequential amendments to Standing Orders, Financial Regulations, Tender Procedures and the Scheme of Delegation to officers to reflect the changes proposed in this report.

IV ESTABLISHMENT OF A CHILDREN AND FAMILIES SERVICE

There was submitted Report No 234-2015 by the Director of Social Work and Director of Education, bringing together a range of services currently delivered and managed by the Education and Social Work Departments, including the key areas of integrated Children's Services and Community Justice.

The Committee:-

(i) noted the establishment of the new service;

(ii) remitted to the Head of Democratic and Legal Services to make consequential amendments to Standing Orders, including the Scheme of Delegation of powers to officers;

(iii) requested an interim report on the service management and delivery arrangements; and

(iv) requested a final report on the revised service structure, locality working arrangements, budgetary agreements and financial implications in March, 2016.

V THE ROLE OF THE CHILD SOCIAL WORK OFFICER

There was submitted Report No 201-2015 by the Chief Executive setting out proposals for the future arrangements for the Chief Social Work Officer (CSWO) in Dundee.

The Committee:-

(i) approved the arrangements for the CSWO function following organisational changes within the Council and Health and Social Care Integration;

(ii) agreed that the role be undertaken by the most senior social work officer remaining with the Council, currently the Head of Children's and Criminal Justice Services. That in the event of absence, the role would be covered by the most senior social work officer within Community Care, currently the Head of Community Care. Although, in future, this post would lie within the Health and Social Care Partnership the post holder would remain an employee of Dundee City Council; and

(iii) noted the intention to appoint an independent chair for the Child Care and Protection Committee to ensure independent oversight and separation of the work of the Committee and those agencies responsible for child care and protection, thus offering more robust scrutiny and constructive challenge.

VI IMPROVING OUTCOMES FOR CHILDREN AND YOUNG PEOPLE

On a reference to Article III of the minute of meeting of the Education Committee of 23rd March, 2014, there was submitted Report No 236-2015 by the Chief Executive providing an update on Dundee's approach to improving outcomes for children, young people and their families following the analysis of the Dartington Wellbeing Survey.

The Committee:-

(i) noted the findings emerging from the data gathered through the Dartington Wellbeing Surveys agreed by the Education Committee on 28th October, 2013 (Article II refers) and carried out between September, 2014 and March, 2015;

(ii) noted the improvement priorities for children and young people within Dundee;

(iii) instructed the Director of Education to prepare an 'Improving Outcomes for Children' Action Plan; and

(iv) remitted to the Director of Education to submit an annual update/progress report.

VII DUNDEE COMMUNITY REGENERATION FUND

There was submitted Report No 215-2015 by the Chief Executive relative to the above.

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

VIII RECESS SUB-COMMITTEE - ARRANGEMENTS

There was submitted Agenda Note AN152-2015 intimating that the Council's Recess commenced on 4th July, 2015 and ended on 15th August, 2015.

To facilitate the smooth continuous conduct of the Council's business, it was proposed that a Recess Sub-Committee of the Council be set up to deal with matters of an urgent nature which the Chief Executive or Head of Democratic and Legal Services believed could not wait for the next ordinary meeting of the Committee concerned during that period and that its operating arrangements be as follows:-

(i) Membership - 4 members of the Administration, 2 members of the Labour Group and either the Conservative, Liberal Democrat or Independent member.

(ii) Chair - Leader of the Administration or nominee.

(iii) Substitutes - in terms of Standing Order No 45(3) it shall be competent for substitutions to be intimated and effected for individual meetings.

(iv) Quorum - 3 members.

(v) Dates - to be arranged on a Monday when required.

(vi) Remit - to deal with any urgent business arising during the recess period.

(vii) Power - full delegated powers to deal with business laid before it.

Notwithstanding the above it may be necessary, in view of their quasi-judicial nature, to arrange meetings of the Personnel Appeals Sub-Committee and Licensing Committee.

The Committee approved accordingly.

IX CORPORATE REVIEW OF BUILDING SECURITY

There was submitted Report No 204-2015 by the Director of City Development regarding Building Security Systems within the Council.

The Committee:-

(i) agreed that a single safety alarm centre be created at West Housing Office with a scheduled opening in May, 2016; and

(ii) agreed that a post of Safety and Alarm Centre Co-ordinator be established to oversee the set-up and ongoing operation of the Safety and Alarm Centre.

X NATIONAL ENTITLEMENT CARD

There was submitted Report No 179-2015 by the Chief Executive advising the Committee that Dundee City Council had been asked to continue to provide the lead role in administering the National Entitlement Card.

The Committee:-

(i) agreed to continue to employ staff to fulfil the function of the National Entitlement Card Programme Office; and

(ii) agreed to issue tenders for the supply of smartcards, a management card system and fulfilment services.

XI RELIEF OF RATES - CHARITY RELIEF

There was submitted Report No 220-2015 by the Director of Corporate Services relative to the above.

The Committee approved the recommendations detailed in the report.

XII LOCAL CODE OF CORPORATE GOVERNANCE

There was submitted Report No 211-2015 by the Chief Executive reviewing and updating the Council's Local Code of Corporate Governance.

The Committee:-

(i) approved the contents of the report and updated Local Code of Corporate Governance as detailed in Appendix 1 of the report;

(ii) noted the progress on previous improvement areas detailed in Appendix 2 of the report;

(iii) approved the implementation of the improvements listed in Appendix 3 of the report;

(iv) noted the scores recorded against the guidelines in Appendix 4 of the report; and

(v) agreed that the Code be updated as a project on the internet.

XIII LEISURE CENTRES - RENTAL AGREEMENT FOR FITNESS EQUIPMENT

There was submitted Agenda Note AN151-2015 intimating that offers for a rental agreement of four years for the provision, repair and maintenance of fitness equipment at Lochee, DISC, Douglas and Lynch Sport Centres were invited and, based on an evaluation, it was recommended that the offer from DG Fitness & Leisure Ltd, Aberdeen being the most advantageous, be accepted.

It was noted that the first year costs, including the repairs and maintenance, at an annual sum of 47,952 could be met from the City Council Repairs and Renewals Fund commencing 9th June, 2015 and recommended that the revenue budget for the rental for future years from DG Fitness & Leisure Ltd be transferred from the City Council to Leisure & Culture Dundee.

The Committee approved 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 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.

XIV RELIEF OF NON-DOMESTIC RATES ON GROUNDS OF HARDSHIP (HARDSHIP RELIEF)

There was submitted Report No 219-2015 by the Director of Corporate Services relative to the above.

The Committee approved the recommendation detailed therein.

Ken GUILD, Convener.

APPENDIX I

At a MEETING of the PENSION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 2nd March, 2015.

Present:-

Bailie Willie SAWERS

COUNCILLORS

Bailie Willie SAWERS, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I DECLARATION OF INTEREST

No declarations of interest were made.

II TAYSIDE PENSION FUNDS RISK REGISTER

There was submitted Report No 95-2015 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 and noted the following changes to risk profiles and control measures:

- Risk 2 - Increased risk due to requirement for employers to provide additional information.

- Risk 6 - Reduced risk in employer inability to participate due to improved funding level.

- Risk 7 - Reduced risk in employer contribution rise due to installing 5% volatility reserve.

- Risk 12 - Increased risk of non-compliance due to vacant post.

- Risk 16 - Increased risk of over reliance on officer highlighted by vacant post.

- Risk 17 - Increased risk of communication failure due to lack of awareness of new scheme regulations.

III TAYSIDE PENSION FUNDS BUSINESS PLAN 2015/2016

There was submitted Report No 98-2015 by the Director of Corporate Services introducing the Eleventh Annual Business Plan for the Tayside Pension Funds.

The Sub-Committee noted the information within the report and approved the 2015/2016 Business Plan which applied to the administration and management of the Tayside Pension Fund and the Tayside Transport Pension Fund.

IV TREASURY MANAGEMENT STRATEGY

There was submitted Report No 99-2015 by the Director of Corporate Services reviewing the Treasury Management Strategy for Tayside Pension Fund.

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

V FUNDING STRATEGY STATEMENT

There was submitted Report No 93-2015 by the Director of Corporate Services reviewing the Funding Strategy Statements for Tayside Pension Fund and Tayside Transport Pension Fund.

The Committee approved the Funding Strategy Statements for Tayside Pension Fund and Tayside Transport Pension Fund.

VI STATEMENT OF INVESTMENT PRINCIPLES REVIEW

There was submitted Report No 100-2015 by the Director of Corporate Services reviewing Statement of Investment Principles for the Tayside Pension Fund and the Tayside Transport Pension Fund.

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

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 PENSION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 101-2015 by the Director of Corporate Services relating to Performance Summaries for the quarter, one, three, five year time periods to 31st December, 2014 reviewing the investment performance of the Main Fund's five Fund Managers (including Property) and the Financing Fund for the quarter to 31st December, 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 Fund's 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 86-2015 by the Director of Corporate Services summarising investments and transactions for the quarter to 31st December, 2014 reviewing activities of the Main Fund's seven Fund Managers for the quarter to 30th December, 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.

VIII TAYSIDE PENSION FUNDS ACTUARIAL VALUATION AT 31ST MARCH, 2014

There was submitted Report No 92-2015 by the Director of Corporate Services which considered a report by the Fund Actuary updating the Committee on the Actuarial Valuation of the Tayside Pension Fund and the Tayside Transport Pension Fund at 31st March, 2014.

The Sub-Committee noted the information contained within the report.

IX ANNUAL REVIEW OF INVESTMENT PERFORMANCE - MAIN FUND

There was submitted Report No 96-2015 by the Director of Corporate Services which considered report by the Fund's Investment Consultant "Annual Review of Investment Performance 2014" February 2015 and its opinion and recommendations.

The Sub-Committee noted the report in Appendix 1 and, in particular, the recommendations on individual investment managers. A further report would be brought back in due course as part of a wider review of the Fund.

X PRESENTATION

Jason Smith and Gillian Evans from Goldman Sachs Asset Management gave a 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 had slightly under performed its benchmark and that the corporate selection strategy was a huge contributor to excess return.

After they had answered questions from members, the Convener thanked Jason and Gillian for their interesting and informative presentation.

Willie SAWERS, Convener.

APPENDIX II