Policy And Resources Committee - 14/01/2013

At a MEETING of the POLICY AND RESOURCES COMMITTEE held at Dundee on 14th January, 2013.

Present:-

BAILIES

COUNCILLORS

Councillor Ken GUILD, Convener, in the Chair.

The minute of meeting of this Committee of 10th December, 2012 was held as read.

Unless marked thus * all items stand delegated.

I DECLARATION OF INTEREST

No declarations of interest were made.

II MINUTE - SUPERANNUATION INVESTMENT SUB-COMMITTEE OF 26TH NOVEMBER, 2012

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

III REVENUE MONITORING

There was submitted Report No 7-2013 by the Director of Corporate Services providing the Committee with an analysis of the 2012/2013 Projected Revenue Outturn as at 30th November, 2012, monitored against the adjusted 2012/2013 Revenue Budget.

The Committee:-

(i) noted that the overall General Fund 2012/2013 Projected Revenue Outturn as at 30th November, 2012 showed an overspend of 1,050,000 against the adjusted 2012/2013 Revenue Budget;

(ii) noted that the Housing Revenue Account as at 30th November, 2012 was projecting a breakeven position against the adjusted HRA 2012/2013 Revenue Budget;

(iii) instructed the Director of Corporate Services to take every reasonable action to ensure that the 2012/2013 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 of the Council, to continue to monitor the Council's 2012/2013 Projected Revenue Outturn.

IV CAPITAL EXPENDITURE MONITORING

There was submitted Report No 6-2013 by the Director of Corporate Services appraising members of the latest position regarding the Council's Capital Expenditure Programme for 2012/2013.

The Committee noted the contents of the report.

V RELIEF OF RATES - CHARITY RELIEF

There was submitted Report No 13-2013 by the Director of Corporate Services seeking authorisation to grant charity relief on the undernoted non-domestic properties.

The Committee authorised accordingly.

VI DUNDEE COMMUNITY REGENERATION FUND

There was submitted Report No 20-2013 by the Chief Executive relative to the above.

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

VII HOSPITAL FUND AND JOHNSTON BEQUEST

After considering Report No 452-2012 by the Director of Corporate Services proposing an alternative way of utilising the income from the Hospital Fund and Johnston Bequest, Councillor Guild, seconded by the Lord Provost moved that a budget of 25,000 be provided from the Hospital Fund and Johnston Bequest to pilot a targeted welfare benefit advice service for older people in Dundee in 2013/2014.

As an amendment, Councillor Macpherson, seconded by Bailie Scott, moved that there should be no change to the current arrangements whereby from time to time, when funds allow, all 29 Councillors the City Council are invited to nominate another deserving pensioner for addition to the list of beneficiaries and that the Chief Executive should be instructed to investigate the possibility of funding a pilot welfare benefit advice service for older people in Dundee as part of the process for setting the 2013/2014 Revenue Budget.

On a division, there voted for the motion - Councillors Guild, Alexander, Black, Bowes, Campbell, Cordell, Dawson, Hunter, Lynn, McDonald, Melville, Murray, Ross, Keenan, Bidwell, Brennan, Cruickshank, Ferguson, Gordon, McCready, McGovern, Bailies Sawers, Wright, Borthwick, Lord Provost Duncan and Depute Lord Provost Roberts (26); and for the amendment - Councillor Macpherson and Bailie Scott (2) - whereupon the motion was declared carried.

VIII MODERN APPRENTICE SCHEME

There was submitted Report No 27-2013 by the Director of Corporate Services relative to the above.

The Committee:-

(i) noted the business case for developing an increased Modern Apprentice programme in relation to the increasing challenge of youth unemployment, social return on investment and organisational benefits;

(ii) agreed to adopt a workforce planning approach to Modern Apprentice development, with the potential to develop job creation elements if external or other funding options become available;

(iii) agreed to the development of an increased apprentice programme with an aspirational target of 50 modern apprenticeships;

(iv) agreed that the increased Modern Apprentice programme be recognised as a core training function of the Council's Learning and Development Service;

(v) agreed to the creation of a specific Modern Apprentice Co-ordinator post (Grade 9) to develop and implement the new approach recommended for an initial period of two years. The responsibility for maintaining the programme thereafter being adopted by the central training team reporting to the Social Work Department's Learning and Workforce Development Manager; and

(vi) agreed that the other Community Planning partners be encouraged to consider undertaking similar reviews to determine their capacity to support increased apprentice programmes.

IX REVIEW OF STAFF TRAINING FUNCTION

There was submitted Report No 24-2013 by the Director of Corporate Services proposing a new operating model for the staff training function to be known as the Learning and Workforce Development Service.

The Committee approved the operating model set out in Appendix 1 of the report and agreed that:-

(i) the Social Work Departments Learning and Workforce Development Manager be allocated additional responsibilities for the management of the corporate training function (including IT) and the development of a Modern Apprenticeship Scheme. Accordingly, the postholder would have two reporting lines, one departmental and operational as at present to the Head of Strategy, Performance and Support Services (Social Work) and the other corporate and functional reporting to the Head of Human Resources;

(ii) clear boundaries be set in terms of responsibilities for corporate and departmental training. The corporate team would be responsible for all generic learning and workforce development, whilst departments would be responsible for service specific and professional development only;

(iii) the corporate team be strengthened by:-

- the regrading of one Training and Development Officer post to Senior Learning and Workforce Development Officer (Grade 11) in line with the Senior Officers in the Social Work Learning and Workforce Development Service;

- the filling of the current vacant Training and Development Officer post with either two part time or one FTE;

- the establishment of a post at Grade 9 (26,604 - 29,518) to develop and support a Modern Apprenticeship Scheme - this could be achieved by either transferring 5% of each departments current training budget to cover the staffing cost, or by transferring a current member of staff into the post and thereby no additional staffing costs would be incurred;

- the establishment of a post of Training Assistant (to be graded) whose main task would be the building of e-learning materials using the 'bild' software - this too could be achieved by transferring a current member of staff into this post;

- the deletion of one Training and Development Officer post.

(iv) a corporate budget be allocated for generic learning and workforce development. For the first year ie 2013/2014 this could be met by transferring 5% of each departments allocated training budget, whilst from 2014 onwards it should be based on a corporate Learning and Workforce Development Plan;

(v) the budget for the leadership programme (20k) be transferred from the Chief Executives Department to the Corporate Services Department in 2013/2014, to be managed by the Head of Human Resources; and

(vi) the corporate training function assume the title of Corporate Learning and Workforce Development.

X SCOTTISH WELFARE FUND

There was submitted Report No 491-2012 by the Director of Corporate Services advising the Committee of the proposed arrangements to enable Dundee City Council to deliver the Scottish Welfare Fund to be devolved to local authorities in April 2013.

The Committee:-

(i) noted the proposed national and local arrangements for local authorities to deliver the Scottish Welfare Fund on behalf of the Scottish Government as part of Welfare Reform; and

(ii) instructed the Director of Corporate Services to develop the infrastructure required to support delivery of the Scottish Welfare Fund as part of a temporary scheme for a period of two years within the level of administration grant provided.

It was further agreed that it be remitted to the Director of Corporate Services to submit a progress report in due course.

XI IMPLEMENTATION OF WELFARE RIGHTS STRATEGY

On a reference to Article XI of the minute of meeting of this Committee of 12th September, 2011, there was submitted Report No 26-2013 providing an update on the implementation of the Welfare Rights Strategy and outlining the arrangements to be included in future financial agreements with Welfare Rights providers across the city.

The Committee:-

(i) noted the progress with implementing the internal parts of the strategy;

(ii) noted that e-learning packages and new referral system to ensure front line staff participated fully in the early intervention approach to help clients avoid falling into debt and the Council from incurring debt would be rolled out from January 2013; and

(iii) agreed that the proposals outlined in Section 4.4 of the report be included in future agreements with Welfare Rights agencies.

XII OPERATING MODEL RE-DESIGN OF ADMINISTRATIVE SUPPORT FUNCTION

There was submitted Report No 25-2013 by the Director of Corporate Services proposing a new corporate operating model for the administrative support function across all departments of the Council to be known as the Corporate Business Support Service and the creation of a centralised business support hub within Dundee House.

The Committee agreed:-

(i) that a centralised administrative support operating model be introduced across the Council as detailed in the body of the report;

(ii) that a Corporate Business Support Manager be appointed to develop the new operating model - this could be achieved by transferring a current member of staff into the post and thereby no additional staffing costs would be incurred; and

(iii) that a manager be appointed to set up and manage a new Business Support Hub within Dundee House - this too could be achieved by transferring a current member of staff into the post and thereby no additional staffing costs would be incurred.

XIII DUNDEE FAIRNESS ACTION PLAN - FIRST PROGRESS REPORT

After considering Report No 22-2013 by the Chief Executive providing an update on all the commitments set out in the Dundee Partnership's Fairness Action Plan, the Committee noted the progress made on the commitments included in the Plan.

XIV TREASURY MANAGEMENT ACTIVITY 2012/2013 (SIX MONTHS TO 30TH SEPTEMBER, 2012)

There was submitted Report No 485-2012 by the Director of Corporate Services reviewing the Treasury Management activities for the period 1st April, 2012 to 30th September, 2012.

The Committee noted the information contained therein.

XV REVISED LOCAL GOVERNMENT FINANCE SETTLEMENT 2013/2014 AND 2014/2015, FINANCIAL IMPLICATIONS FOR THE CITY COUNCILAND REVENUE BUDGET/COUNCIL TAX AND CAPITAL PLAN SETTING PROCEDURE

There was submitted Report No 490-2012 by the Director of Corporate Services advising elected members of the announcement made by the Cabinet Secretary for Finance, Employment and Sustainable Growth on 27th November, 2012 in respect of the revised Local Government Finance Settlement for 2013/2014 and 2014/2015.

The Committee:-

(i) noted the contents of the report;

(ii) noted the Council's revised Revenue and Capital Funding Allocations for 2013/2014 and 2014/2015, as announced by the Cabinet Secretary for Finance, Employment and Sustainable Growth on 27th November, 2012, and the associated implications;

(iii) noted the terms of the settlement to be provided to Local Government, as previously advised by the Cabinet Secretary for Finance, Employment and Sustainable Growth in a letter to COSLA dated 20th September, 2012 and as detailed in Section 4 of the report;

(iv) noted the current position on the Council's Provisional 2013/2014 Revenue Budget;

(v) noted that the financial information included in this report would be updated, as necessary, and included in the Council Tax proposals to be submitted to the Special Policy and Resources Committee on 14th February, 2013;

(vi) agreed the procedures to be followed for setting the 2013/2014 Revenue Budget and Council Tax level, as set out in Section 8 and Appendix 2 of the report; and

(vii) agreed that the procedures for agreeing the Councils 2013/2017 Capital Plan should be the same as those for setting the 2013/2014 Revenue Budget and Council Tax, as set out in Section 8 and Appendix 2 of the report.

Ken GUILD, Convener.

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 26th November, 2012.

APPENDIX I

Present:-

Bailie Ian BORTHWICK

COUNCILLORS

Councillor Jimmy BLACK, Depute Convener, in the Chair.

Unless marked thus * all items stand delegated.

I DECLARATION OF INTEREST

No declarations of interest were made.

II PROPOSED TIMETABLE OF MEETINGS FOR 2013

There was submitted Report No 461-2012 by the Director of Corporate Services proposing a suggested programme of meetings of the Superannuation Investment Sub-Committee to cover investment performance and issues arising in 2013.

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

III SOCIALLY RESPONSIBLE INVESTMENT SIX MONTHLY REPORT

There was submitted Report No 460-2012 by the 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 on 17th November, 2008.

The Sub-Committee noted the information contained within the report with regard to the activities of the Fund Managers during the six month period ended 30th September, 2012.

IV INVESTMENT IN TOBACCO

This item was withdrawn.

V STATEMENT OF ACCOUNTS AND EXTERNAL AUDITORS ANNUAL REPORT

There was submitted Agenda Note AN197-2012 advising the Sub-Committee that the following reports had been submitted to the Scrutiny Committee on 24th September, 2012:-

Report No 379-2012 - 2011/2012 Draft Audited Statement of Accounts for Tayside Superannuation Funds;

Report No 380-2012 - External Auditor's Annual Report; and

Report No 381-2012 - Tayside Superannuation Funds 2011/2012 Accounts and Audit.

The Reports could be accessed via the link below:-

http://www.dundeecity.gov.uk/reports/agendas/sc240912.pdf#navpanes=0

The Sub-Committee noted accordingly.

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 458-2012 by the Director of Corporate Services reviewing the investment performance of the Main Fund's five Fund Managers (including Property) for the quarter to 30th September, 2012. It also considered the performance of the Transport Fund which shared three of these managers.

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

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 434-2012 by the Director of Corporate Services reviewing the investment activities of the Main Fund's six Fund Managers for the quarter to 30th September, 2012. 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.

(c) QUARTERLY FUNDING REPORT

There was submitted Report No 459-2012 by the Director of Corporate Services.

This report reviewed the current funding level of the Funds as assessed by the Fund Actuary.

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

VII ANNUAL REVIEW OF INVESTMENT PERFORMANCE 2012

There was submitted Report No 462-2012 by the Director of Corporate Services considering the Fund Independent Consultant's paper 'Annual Review of Investment Performance' November, 2012 and its recommendations for change.

The Sub-Committee noted the report and agreed its recommendations.

VIII REVIEW OF PERFORMANCE

The Fund's Independent Consultant submitted a report reviewing the performance of the Funds and the individual managers over the year.

The Sub-Committee noted the content of the report.

IX PRESENTATION

Douglas Stewart and Nick Davidson of Alliance Bernstein gave a short presentation, reviewing the performance during 2012 in respect of the Tayside Superannuation Fund and outlining its portfolio strategy for the future.

It was noted that due to the current financial climate, the fund had underperformed against benchmark however they were confident that performance would improve in the future.

After Mr Stewart and Mr Davidson had made their presentation and answered questions from members, they were thanked for their presentation by the Convener.

Jimmy BLACK, Depute Convener.

APPENDIX II