Policy And Resources Committee - 11/01/2016

At a MEETING of the POLICY AND RESOURCES COMMITTEE held at Dundee on 11th January, 2016.

Present:-

BAILIES

COUNCILLORS

Councillor Ken GUILD, Convener, in the Chair.

The minute of meeting of this Committee of 7th December, 2015 was held as read.

Unless marked thus * all items stand delegated.

I DECLARATION OF INTEREST

No declarations of interest were made.

II MINUTES

(a) PERSONNEL APPEALS SUB-COMMITTEE

The minutes of meetings of the Personnel Appeals Sub-Committee of 4th and 30th November, 2015, copies of which are appended hereto (Appendices I and II), were submitted for information and record purposes.

(b) PENSION SUB-COMMITTEE AND PENSION BOARD

The minute of meeting of the Pension Sub-Committee and Pension Board of 7th December, 2015, a copy of which is appended hereto (Appendix III), was submitted for information and record purposes.

III LOCAL GOVERNMENT FINANCIAL SETTLEMENT 2016/2017 AND FINANCIAL IMPLICATIONS FOR THE CITY COUNCIL

There was submitted Report No 25-2016 by the Executive Director of Corporate Services advising elected members of the announcement made by the Deputy First Minister and Cabinet Secretary for Finance, Constitution and the Economy on 16th December, 2015 in respect of the Local Government Finance Settlement for 2016/2017.

Councillor Guild, seconded by Bailie Sawers, moved that the Committee:-

(i) note the contents of the report;

(ii) note the Council's Revenue and Capital Funding Allocations for 2016/2017, as announced by the Deputy First Minister and Cabinet Secretary for Finance, Constitution and the Economy on 16th December, 2015, and the associated implications;

(iii) note the package of measures that make up the settlement to be provided to Local Government, as advised by the Deputy First Minister and Cabinet Secretary for Finance, Constitution and the Economy in a letter to COSLA dated 16th December, 2015;

(iv) note the current position on the Council's Provisional 2016/2017 Revenue Budget and 2016-2021 Capital Plan;

(v) note that the financial information included in the report would be updated as necessary and included in the Council Tax proposals to be submitted to the Special Policy and Resources Committee on 25th February, 2016;

(vi) approve the procedures to be followed for setting the 2016/2017 Revenue Budget and Council Tax level, as set out in Section 11 and Appendix 1 of the report; and

(vii) note the medium-term financial outlook and strategy as set out in Section 8 of the report.

As an amendment, Councillor Macpherson, seconded by Councillor Keenan, moved approval of the above and in addition, the Committee instructs the Chief Executive to write to the Deputy First Minister and Cabinet Secretary for Finance, Constitution and the Economy expressing the Council's deep concern at the inadequate level of revenue and capital funding allocations for 2016, indicating the Council's disquiet that the Deputy First Minister and Cabinet Secretary for Finance, Constitution and the Economy is proposing that local government bears a disproportionate share of government funding reductions in 2016/2017 and requesting that the Deputy First Minister and Cabinet Secretary for Finance, Constitution and the Economy reviews the position with a view to increasing local government revenue and capital funding allocations for 2016/2017.

On a division, there voted for the motion - Councillors Guild, Alexander, Black, Bowes, Campbell, Cordell, Dawson, Hunter, Lynn, McDonald, Melville, Murray, Ross, Bailie Sawers, Lord Provost Duncan and Depute Lord Provost Roberts (16); and for the amendment - Councillors Keenan, Asif, Bidwell, Brennan, Cruickshank, Ferguson, Gordon, McCready, McGovern, Macpherson, Bailies Wright, Borthwick and Scott (13) - whereupon the motion was declared carried.

IV PUBLIC SECTOR CLIMATE CHANGE DUTIES - MANDATORY REPORTING

There was submitted Report No 4-2016 by the Chief Executive informing the Committee of the work undertaken over the last year in support of the Council's duties under the Climate Change (Scotland) Act 2009.

The Committee noted the contents of the report.

V SUSTAINABLE ENERGY AND CLIMATE ACTION PLAN FOR DUNDEE

There was submitted Report No 5-2016 by the Chief Executive proposing the development of a Sustainable Energy and Climate Action Plan (SEAP) for Dundee with the aim of reducing carbon emissions across the city by 40% by 2030 and increase resilience to the impact of climate change.

The Committee:-

(i) approved the proposal to sign up to the EU Covenant of Mayors (CoM); and

(ii) agreed to develop a city-wide Sustainable Energy and Climate Action Plan (SEAP) via the Dundee Partnership Environment Steering Group.

VI CORPORATE HEALTH AND SAFETY PLAN 2015-2018

After considering Report No 7-2016 by the Executive Director of Corporate Services, the Committee approved the Corporate Health and Safety Plan for 2015-2018 appended thereto which would ensure the continuous improvement of health and safety management within the Council.

VII SERVICE TRANSFERS - ACTIVE SCHOOLS AND OUTDOOR LEARNING

There was submitted Agenda Note AN3-2016 proposing that subject to the agreement of the Leisure & Culture Dundee Board, the Outdoor Learning Service and Active Schools Programme transfer to the SCIO with effect from 1st April, 2016, and that in the period January to March, 2016, arrangements be put in place for the transfer of staff and for the development of a services agreement between the City Council and Leisure & Culture Dundee.

The Committee agreed to proceed with the staff consultation and to request that officers report back to Committee with further details.

VIII DUNDEE COMMUNITY REGENERATION FUND

There was submitted Report No 8-2016 by the Chief Executive relative to the above.

The Committee noted the Community Regeneration Fund allocations for 2015/2016 and approved the funding proposals contained in Section 5.2 of the report appended hereto (Appendix IV).

IX REVENUE MONITORING

There was submitted Report No 19-2016 by the Executive Director of Corporate Services providing elected members with an analysis of the 2015/2016 projected revenue outturn as at 30th November, 2015 monitored against the adjusted 2015/2016 revenue budget.

The Committee:-

(i) noted that the overall General Fund 2015/2016 projected revenue outturn as at 30th November, 2015 was an underspend of 3,980,000 against the adjusted 2015/2016 Revenue Budget;

(ii) noted that the Housing Revenue Account as at 30th November, 2015 was projecting a breakeven position against the adjusted HRA 2015/2016 Revenue Budget;

(iii) instructed that the Executive Director of Corporate Services to take every reasonable action to ensure that the 2015/2016 revenue expenditure was below or in line with the adjusted Revenue Budget; and

(iv) instructed the Executive Director of Corporate Services, in conjunction with all Chief Officers, to continue to monitor the Councils 2015/2016 projected revenue outturn.

X DISCRETIONARY HOUSING PAYMENTS

There was submitted Report No 457-2015 by the Executive Director of Corporate Services proposing the adoption of an updated Dundee City Council Discretionary Housing Payment Policy.

The Committee approved the updated Discretionary Housing Payment Policy as detailed in the Appendix to the report and agreed that it be placed on the Council's internet and intranet sites.

Ken GUILD, Convener.

At a MEETING of the PERSONNEL APPEALS SUB-COMMITTEE held at Dundee on 4th November, 2015.

APPENDIX I

Present:-

Depute Lord Provost Christina ROBERTS

COUNCILLORS

Councillor Stewart HUNTER, Convener, in the Chair.

The minute of meeting of this Committee of 1st December, 2014 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 items of business on the grounds that they involved the likely disclosure of exempt information as defined in paragraph 1 of Part I of Schedule 7A of the Act.

I DECLARATION OF INTEREST

There were no declarations of interest.

II APPEAL AGAINST DISMISSAL

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 not been substantiated and that the appeal be not upheld.

Stewart HUNTER, Convener.

At a MEETING of the PERSONNEL APPEALS SUB-COMMITTEE held at Dundee on 30th November, 2015.

APPENDIX II

Present:-

Depute Lord Provost Christina ROBERTS

COUNCILLORS

Councillor Stewart HUNTER, Convener, in the Chair.

The minute of meeting of this Committee of 4th November, 2015 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 items of business on the grounds that they involved the likely disclosure of exempt information as defined in Paragraph 1 of Part I of Schedule 7A of the Act.

I DECLARATION OF INTEREST

There was no declarations of interest.

II APPEAL AGAINST DISMISSAL

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

The Sub-Committee heard the Councils 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 not been substantiated and that the appeal be not upheld.

David BOWES, Convener.

At a JOINT MEETING of the PENSION SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held at Dundee on 7th December, 2015.

APPENDIX III

Present:-

PENSION SUB-COMMITTEE

Bailie Willie SAWERS

COUNCILLORS

PENSION BOARD

Bailie Willie SAWERS, Convener, in the Chair.

I DECLARATION OF INTEREST

There were no declarations of interest.

II TAYSIDE PENSION FUNDS RISK REGISTER

There was submitted Report No 448-2015 by the Executive Director of Corporate Services updating the Risk Register for the Tayside Pension Funds.

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

III PROPOSED TIMETABLE OF MEETINGS FOR 2016

There was submitted Report No 449-2015 by the Executive Director of Corporate Services proposing a suggested programme of meetings of the Pension Sub-Committee and Pension Board in 2016.

The Sub-Committee and Board examined the dates set out in the timetable in Appendix 1 and agreed the proposed programme of meetings.

IV SERVICE LEVEL AGREEMENT WITH ADMINISTERING AUTHORITY

There was submitted Report No 450-2015 by the Executive Director of Corporate Services advising the intention to negotiate a formal service level agreement with Dundee City Council as administering authority for Tayside Pension Fund.

The Sub-Committee and Board noted the content of the report and the intention to enter into a service level agreement for a period of three years which would be subject to full review at the end of the period, but also contain scope to review in the interim should any material change to service occur.

V LOCAL AND ALTERNATIVE INVESTMENT OPPORTUNITIES

There was submitted Report No 451-2015 by the Executive Director of Corporate Services outlining the intention to engage with investment consultant and actuary during Strategic Asset Allocation Review to consider appropriate asset allocation of the main fund to an alternative opportunities portfolio in order to benefit from local direct investment opportunities and collaborative alternative investment opportunities with other Scottish LGPS Funds. This review would be available to the potential Sub-Committee in March, 2016.

The Sub-Committee and Board noted the content of the report.

VI PENSIONSWEB SELF-SERVICE ADMINISTRATION SYSTEM

A verbal update on the current project being undertaken to install and implement the Hymans Robertson system was given.

The Sub-Committee and Board noted accordingly.

VII MIIFD II (REVISED MARKETS IN FINANCIAL INSTRUMENTS DIRECTIVE)

There was submitted Agenda Note AN207-2015 advising the Sub-Committee and Board that the EU regulation proposed to come into effect in January, 2017 had been delayed by up to a year from start date. Consultations were still to be undertaken as to what effects would impact local government pension scheme investments. Tayside Pension Fund Officers were actively engaging with individual investment managers at this early stage to ensure that relevant steps would be undertaken by the fund prior to the new regulations coming into force.

The Sub-Committee and Board 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 involve the likely disclosure of exempt information as defined in paragraphs 4, 6 and 11 of Part I of Schedule 7A of the Act.

VIII TAYSIDE PENSION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 452-2015 by the Executive Director of Corporate Services relating to Performance Summaries for the quarter to 30th September. It also considered the performance of the Transport Fund which invests 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 and Board 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) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 432-2015 by the Executive Director of Corporate Services summarising investments and transactions during the period 1st July to 30th September, 2015 reviewing the investment activities of the Main Funds seven Fund Managers for the quarter to 30th September, 2015. The Transport Fund shared three of these managers and their transactions were included.

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

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

IX QUARTERLY FUNDING REPORT

There was submitted Report No 456-2015 by the Executive Director of Corporate Services which considered a report reviewing the current funding level of the Funds as assessed by the Fund Actuary.

The Sub-Committee and Board noted the report by the Fund Actuary.

X SOCIALLY RESPONSIBLE INVESTMENT SIX MONTHLY REPORT

There was submitted Report No 453-2015 by the Executive Director of Corporate Services reviewing the progress by the Fund Managers regarding the Positive Engagement Policy on Environmental, Social and Corporate Governance approved by the Sub-Committee and Board on 1st June, 2015.

The Sub-Committee and Board noted the information contained within the report with regard to the activities of the Fund Managers during the six month period ended 30th September, 2015.

XI PRESENTATION

Tom Wright of Bailie Gifford gave a short presentation.

Tom briefed members on the performance of the Fund, highlighting key growth areas, noting that a long-term outlook was required.

It was noted that governance was integral and that an increase in resources in this field had been made.

After they had answered questions from members, the Convener thanked Tom for his interesting and informative presentation.

Willie SAWERS, Convener.

APPENDIX IV