Policy And Resources Committee - 23/04/2012

At a MEETING of the POLICY AND RESOURCES COMMITTEE held at Dundee on 23rd April, 2012.

Present:-

BAILIES

COUNCILLORS

Councillor Ken GUILD, Convener, in the Chair.

The minute of meeting of this Committee of 26th March, 2012 was held as read.

Unless marked thus * all items stand delegated.

I MINUTE - SUPERANNUATION INVESTMENT SUB-COMMITTEE OF 27TH FEBRUARY, 2012

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

II RELIEF OF RATES - CHARITY RELIEF

Councillors Duncan, Hunter, Gordon and Bailie Wallace declared a non-financial interest in this item by virtue of being the Council's representatives on Leisure and Culture Dundee.

There was submitted Report No 161-2012 by the Director of Corporate Services, seeking authorisation to grant charity relief on the undernoted non-domestic properties.

The Committee approved accordingly.

III DUNDEE COMMUNITY REGENERATION FUND 2011/2012

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

There was submitted Report No 156-2012 by the Chief Executive relative to the above.

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

IV THIRD PARTY PAYMENTS FOR 2012/2013

Councillors Duncan, Lynn, McCready and Macpherson declared a non-financial interest in this item by virtue of being the Council's representatives on Dundee Contemporary Arts Centre Board.

Councillors Duncan, Ross and McCready declared a non-financial interest in this item by virtue of being the Council's representatives on Dundee Ice Arena Board.

Councillor Melville declared a non-financial interest in this item by virtue of being the Council's representative on Dundee Science Centre.

Lord Provost Letford and Councillors Black, Guild and McCready declared a non-financial interest in this item by virtue of being the Council's representatives on Dundee Rep Board.

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

Councillor Melville declared a non-financial interest in this item by virtue of being the Council's representative on Dundee Industrial Heritage Board.

Lord Provost Letford and Councillor Barrie declared a non-financial interest in this item by virtue of being the Council's representatives on Dundee Voluntary Action Board.

Councillor Fordyce declared a non-financial interest in this item by virtue of being the Council's representative on Dundee International Women's Centre.

Councillor Hunter declared a non-financial interest in this item by virtue of being the Council's representative on Dundee College Board.

There was submitted Report No 141-2012 by the Director, Leisure and Communities relative to the above.

The Committee agreed to:-

(i) remit the Director, Leisure and Communities, on behalf of Dundee City Council, to update the Management Agreement with Dundee Contemporary Arts Ltd and Dundee Ice Arena;

(ii) remit the Director, Leisure and Communities, on behalf of Dundee City Council, to enter into a one year Service Level Agreement with Dundee Science Centre, Dundee Industrial Heritage Ltd, Dundee Repertory Theatre Ltd - Main House, Creative Learning Team and Scottish Dance Theatre, Grey Lodge Settlement, Dundee Voluntary Action Ltd and Dundee College;

(iii) remit the Director, Leisure and Communities, on behalf of Dundee City Council to award grants to Volunteer Centre Dundee Ltd and Dundee International Women's Centre;

(iv) accept the tender from Craigowl Community for the delivery of Literacy Support at a cost of 23,000;

(v) remit the Director, Leisure and Communities, to keep these arrangements under review and amend as appropriate;

(vi) approve the level of Management Fee for the period 1st April, 2012 to 31st March, 2013 amounting to:-

270,277 for Dundee Contemporary Arts Ltd

262,000 for Dundee Ice Arena; and

(vii) approve the Revenue Grant funding for the period 1st April, 2012 to 31st March, 2013 amounting to:-

46,092 for Dundee Science Centre

63,000 for Dundee Industrial Heritage Ltd

403,104 for Dundee Repertory Theatre Ltd

63,000 for Grey Lodge Settlement

42,000 for Dundee Voluntary Action Ltd

10,000 for Volunteer Centre Dundee Ltd

8,000 for Dundee International Women's Centre

35,000 for Dundee College

V NATIONAL ORGANISATION - MEMBERSHIP OF YOUTHLINK SCOTLAND

There was submitted Agenda Note AN66-2012 recommending that the Committee approve the payment of 1,000 for the renewal of the Council's annual subscription to YouthLink Scotland, the national Youth Work Agency. YouthLink Scotland acted as an umbrella organisation for the voluntary/statutory youth work sector.

YouthLink Scotland provided the following member services:-

- Policy Briefings

- Youth Work Training

- Youth Information

- Cashback for Communities

- National Representation

The Committee approved accordingly.

VI DUNDEE COMMUNITY SAFETY PARTNERSHIP COMMISSIONING BUDGET 2012/2013

There was submitted Report No 143-2012 by the Director, Leisure and Communities, seeking approval for the Dundee Community Safety Partnership Commissioning Budget 2012/2013.

The Committee approved the proposed allocations which would allow partners to provide a strategic response to the Community Safety priority areas of work as identified within the current Strategic Assessment.

VII NON-RECURRING REVENUE GRANT FOR LESBIAN, GAY, BISEXUAL, TRANSGENDER YOUTH SCOTLAND (LGBT)

There was submitted Agenda Note AN68-2012 advising that LGBT Youth Scotland was the national support service for LGBT young people and had been active in Dundee for four years.

Current funding for a part-time worker came to an end on 31st March, 2012. The organisation was attempting to secure funding support in the long-term. This grant would assist with six months staff costs while longer-term funding was secured and this would ensure continuation of an important service for young people in Dundee.

The Committee approved a grant award of 6,500 to LGBT Youth Scotland.

VIII DUNDEE COMMUNITY SAFETY PARTNERSHIP GRANT AWARDS UP TO £500 2011/2012

There was submitted Report No 164-2012 by the Director, Leisure and Communities, detailing awards of up to 500 that had been made during the financial year 2011/2012 by the Community Safety Partnership and shown below.

The Committee noted accordingly.

IX PROPOSED REDEVELOPMENT OF DUNDEE RAILWAY STATION CONCOURSE BUILDING

There was submitted Report No 119-2012 by the Director of City Development outlining proposals to redevelop the street level concourse building which acted as the main arrival and departure point from the city into the low level platforms at Dundee Railway Station.

The Committee approved the outline proposals within the report to redevelop the concourse building to Dundee Railway Station and remitted the Director of City Development to prepare detailed design proposals and costs and to seek tenders for the staged implementation of the project. Any acceptance of these tenders would then be subject to future Committee approval.

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 paragraphs 6 and 9 of Part I of Schedule 7A of the Act.

X RELIEF OF NON-DOMESTIC RATES ON THE GROUNDS OF HARDSHIP - (HARDSHIP RELIEF)

After considering Report No 168-2012 by the Director of Corporate Services relative to the above, the Committee approved the recommendation detailed therein.

XI V & A AT DUNDEE

After considering Report No 170-2012 by the Director of City Development relative to the above, the Committee approved the recommendations detailed therein.

XII AIRPORT SERVICES

After considering Agenda Note AN69-2012 by the Director of City Development relative to the above, it was noted that the Chief Executive had approved the recommendations detailed therein in consultation with the Convener and the Spokespersons from each Group.

The Committee noted accordingly.

Ken GUILD, Convener.

APPENDIX I

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 27th February, 2012.

Present:-

Bailie Willie SAWERS

Councillor Jimmy BLACK

Councillor Kevin KEENAN

Bailie Willie SAWERS, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I TAYSIDE SUPERANNUATION FUNDS BUSINESS PLAN 2012/2013

There was submitted Report No 98-2012 by the Director of Finance introducing the ninth annual business plan for the Tayside Superannuation Funds.

The Sub-Committee noted the information within the report and approved the 2012/2013 Business Plan which applied to the administration and management of the Tayside Superannuation Fund and the Tayside Transport Superannuation Fund.

II TAYSIDE SUPERANNUATION FUNDS RISK REGISTER

There was submitted Report No 103-2012 by the Director of Finance updating 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.

III STATEMENT OF INVESTMENT PRINCIPLES REVIEW

There was submitted Report No 104-2012 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.

IV FUNDING STRATEGY STATEMENT

There was submitted Report No 102-2012 by the Director of Finance reviewing the Funding Strategy Statements for the Tayside Superannuation Funds.

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

V TREASURY MANAGEMENT STRATEGY

There was submitted Report No 105-2012 by the Director of Finance reviewing the Treasury Management Strategy for the Tayside Superannuation Fund.

The Committee approved the Treasury Management Strategy including the 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.

VI TAYSIDE SUPERANNUATION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 107-2012 by the Director of Finance relating to Performance Summaries for the quarter, twelve months and three years to 31st December, 2011 reviewing the investment performance of the Main Fund's four Fund Managers (excluding Property) and the Financing Fund for the quarter to 31st December, 2011. It also considered the performance of the Transport Fund which shared two of these managers.

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

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 106-2012 by the Director of Finance for the quarter, twelve months and three years to 31st December, 2011 reviewing the investment performance of the Property Portfolio for the period to 31st December, 2011.

The report compared investment performances with an appropriate benchmark, the IPD Pooled Property All Balanced Funds Median.

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 74-2012 by the Director of Finance summarising investments and transactions during the period 1st October to 31st December, 2011 reviewing the investment activities of the Main Fund's six Fund Managers for the quarter to 31st December, 2011. 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 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 FUND REPORT

The Quarterly Funding Report was normally submitted on a quarterly basis and considered a report by the Fund's actuaries, Barnett Waddingham. As the outcome of the triennial valuation would be reported, the report was not submitted for the quarter ended 30th December, 2011.

(e) ACTUARIAL VALUATION AT 31ST MARCH, 2011

There was submitted Report No 108-2012 by the Director of Finance which considered a report by Barnett Waddingham, with Graeme Muir of Barnett Waddingham providing an overview of the valuation.

The report updated the Sub-Committee on the Actuarial Valuation of the Tayside Superannuation Fund and the Tayside Transport Superannuation Fund at 31st March, 2011.

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

VII PRESENTATION

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

Tom Wright outlined the history regarding the original mandate noting that the investment philosophy of Baillie Gifford was that, over time, superior earnings had remained unchanged in that a long-term approach was approved. Tom noted that there was a continued focus on stocks, with opportunities from new technologies. Current holdings within the portfolio were outlined and also notable transactions.

Thereafter, Fiona outlined the global alpha portfolio and advised that there was an increased exposure to secular growth winners as this would provide idiosyncratic growth drivers and diversification.

In conclusion, Tom advised members that continued volatility was anticipated but this would provide opportunities due to mis-priced companies.

The Convener thanked the speakers for their interesting and informative presentation.

Willie SAWERS, Convener.

APPENDIX II