Policy And Resources Committee - 24/06/2013

At a MEETING of the POLICY AND RESOURCES COMMITTEE held at Dundee on 24th June, 2013.

Present:-

BAILIES

COUNCILLORS

Councillor Ken GUILD, Convener, in the Chair.

The minute of meeting of this Committee of 10th June, 2013 was held as read.

Unless marked thus * all items stand delegated.

I DECLARATIONS OF INTEREST

Councillor Dawson declared a non-financial interest in Article III by virtue of being an employee of Scottish and Southern Energy, left the Chamber and took no part in the debate.

Councillor Hunter declared a non-financial interest in Article X by virtue of having a child who attended one of the specified schools.

Councillors Hunter, Black, McCready and Brennan declared financial interests in Article XI by virtue of having children who received music tuition.

II MINUTE - SUPERANNUATION INVESTMENT SUB-COMMITTEE OF 3RD JUNE, 2013

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

III PROPOSED RENEWABLE ENERGY PLANT, DUNDEE PORT - CONSULTATION BY SCOTTISH GOVERNMENT IN TERMS OF SECTION 36 OF THEELECTRICITY ACT 1989

The Committee agreed to hear deputations in support and against the above and after the deputations had put forward their case and answered questions from members of the Committee, they were thanked for their attendance and withdrew.

On a reference to Article I of the minute of meeting of this Committee of 24th January, 2011, there was submitted Report No 242-2013 by the Director of City Development seeking the views of the Committee in respect of an application served on Scottish Ministers under Section 36 of the Electricity Act 1989 by Forth Energy regarding a proposed Renewable Energy Plant at Dundee Port.

Councillor Guild, seconded by Lord Provost Duncan, moved:-

(i) the Committee agrees with the conclusions outlined in Section 7 of the report that the Council does not object to the proposal, subject to the imposition of conditions and mitigation measures set out in Appendix 2 of the report; and

(ii) the Director of City Development is authorised to issue the Council's formal response to the Energy Directorate by 26th June, 2013.

In addition, the applicant shall agree with the Scottish Government Energy Consents Unit a scheme to enable the plant to produce as much usable heat as possible in order to maximise the efficiency of the plant and maximise the benefit of the plant to the City of Dundee.

As an amendment, Councillor McCready, seconded by Bailie Scott, moved:-

Dundee City Council objects to the application on the grounds that emissions resulting from the development will exacerbate air quality standards in the City resulting in an adverse impact on public health and the development, by reason of its height, scale and massing, would adversely impact on the visual amenity of the City and would form a discordant feature on the Waterfront.

On a division, there voted for the motion - Councillors Guild, Bowes, Hunter, Murray, Bailie Sawers and Lord Provost Duncan (6); and for the amendment - Councillors Alexander, Black, Campbell, Cordell, Lynn, McDonald, Melville, Keenan, Asif, Bidwell, Brennan, Cruickshank, Ferguson, Gordon, McCready, McGovern, Macpherson, Bailies Wright, Borthwick and Scott (20) - Depute Lord Provost Roberts and Councillor Dawson being absent when the vote was taken - whereupon the amendment was declared carried.

IV SCOTTISH LOCAL GOVERNMENT BENCHMARKING - OVERVIEW

There was submitted Report No 252-2013 by the Chief Executive introducing members to the Annual Scottish Local Government Benchmarking Framework.

The Committee:-

(i) remitted to the Scrutiny Committee in future years to review the comparisons;

(ii) agreed to include the indicators used in the study in the Council's self-assessment report published annually, as part of measuring continuous improvement in line with the Council Plan and Accounts Commission's statutory direction on reporting performance indicators; and

(iii) instructed Directors to include the indicators relevant to their department in their Service Plan annual report to ensure continuous improvement was monitored each year.

V WELFARE REFORM UPDATE

There was submitted Report No 301-2013 by the Director of Corporate Services updating members on the work being undertaken by the Council to mitigate the risks and prepare individuals for the Welfare Reform Changes.

The Committee:-

(i) noted the update on the work streams which had been identified to assist in preparing for the Welfare Reform Changes;

(ii) noted the continued work and progress on communicating the changes to claimants and landlords;

(iii) noted the implications in terms of increased debt, potential increases in homelessness and demand for advice services from various services and the voluntary sector; and

(iv) noted further seminars would be arranged for elected members on Welfare Reform.

VI RISK MANAGEMENT STRATEGIC PLAN AND STRATEGIC RISK REGISTER

There was submitted Report No 292-2013 by the Director of Corporate Services providing elected members with a copy of the Council's updated Risk Management Strategic Plan and Strategic Risk Register.

The Committee approved accordingly.

VII RELIEF OF RATES - CHARITY RELIEF

There was submitted Report No 289-2013 by the Director of Corporate Services relative to the above.

The Committee approved the recommendations detailed in the report.

VIII GREAT WAR - DUNDEE PARTNERSHIP AND HERITAGE LOTTERY FUND APPLICATION

There was submitted Report No 288-2013 by the Director, Leisure and Communities informing the Committee of the Great War Dundee Steering Group Partnership and plans for commemoration in the City from 2014.

The Committee:-

(i) noted the content of the report and agreed to support the bid for Heritage Lottery Funding for a Project Co-ordinator to plan and promote events relating to the commemoration of World War I in Dundee from 2014-2019; and

(ii) agreed on behalf of the Great War Dundee Steering Group, that Leisure and Culture Dundee act as employer and accountable agent for the management of Heritage Lottery Funds.

IX DUNDEE CENTRAL WATERFRONT DEVELOPMENT - ACQUISITION OF LAND FROM TAY ROAD BRIDGE JOINT BOARD

On a reference to Article IV of the minute of meeting of this Committee of 8th January, 2007, there was submitted Report No 246-2013 by the Director of City Development relative to the above.

The Committee agreed to acquire the land on the plan appended to the report from the Tay Road Bridge Joint Board in order to implement the Central Waterfront proposals.

X ASPIRE DUNDEE PROJECT

On a reference to Article II of the minute of meeting of the Education Committee of 24th June, 2013, there was submitted Report No 297-2013 by the Director of Education seeking approval to introduce a two year collaborative and local partnership Arts Education Programme across primary schools.

The Committee, for its interest:-

(i) noted the contents of the report;

(ii) approved the project, subject to satisfactory external funding being secured; and

(iii) requested an annual progress update from the Director of Education.

XI REMOVAL OF INSTRUMENTAL TUITION FEES

On a reference to Article VII of the minute of meeting of the Education Committee of 24th June, 2013, there was submitted Report No 300-2013 by the Director of Education seeking approval to remove all instrumental tuition fees in Dundee from session 2013/2014.

The Committee, for its interest:-

(i) noted the contents of the report;

(ii) agreed to abolish all music tuition fees in primary and secondary schools from the beginning of session 2013/2014; and

(iii) requested a future update from the Director of Education on the impact of the removal of tuition fees.

XII QUALITY ASSURANCE OF DRAFT SINGLE OUTCOME AGREEMENT FOR DUNDEE 2013/2017

On a reference to Article III of the minute of meeting of this Committee of 25th June, 2012, there was submitted Report No 291-2013 by the Chief Executive presenting the current draft of the Single Outcome Agreement for Dundee 2013/2017, proposing amendments to improve the document and outlining the Quality Assurance process agreed by the Scottish Government and COSLA.

The Committee:-

(i) noted the current draft Single Outcome Agreement for Dundee;

(ii) noted the proposed amendments to the current draft; and

(iii) instructed the Chief Executive to bring a final version of SOA for Dundee to this Committee following the review which incorporated required improvements and key areas for further development.

The Convener agreed that the undernoted item be considered as a matter of urgency in terms of Standing Order No 17(b) in view of the timescales involved.

XIII NATIONAL PERFORMANCE CENTRE FOR SPORT - BID SUBMISSION STAGE 2

On a reference to Article VI of the minute of meeting of this Committee of 11th February, 2013, there was submitted Report No 298-2013 by the Chief Executive regarding the submission of a 2nd stage bid for the National Performance Centre for Sport.

The Committee:-

(i) agreed to the submission of the 2nd Stage bid application on 5th July, 2013, for the National Performance Centre for Sport to be based in Camperdown Country Park;

(ii) acknowledged the input to date of the Steering Group partners and their future commitment to the bid process;

(iii) approved the capital expenditure of 5m which would be funded from the Capital Plan 2013-2017 to assist in the capital funding of the centre; and

(iv) noted that if the 2nd Stage bid was successful, then a report would be brought back to Committee prior to the finalisation of designs and before any contracts were awarded.

Ken GUILD, Convener.

At a MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 3rd June, 2013.

APPENDIX

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 SOCIALLY RESPONSIBLE INVESTMENT - SIX MONTHLY REPORT

There was submitted Report No 260-2013 by the Director of Corporate Services reviewing the investment performance of the Main Funds five Fund Managers (including Property) and the Financing Fund for the quarter to 31st March, 2013. 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.

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.

III STATEMENT OF INVESTMENT PRINCIPLES REVIEW

There was submitted Report No 262-2013 by the Director of Corporate Services 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 268-2013 by the Director of Corporate Services reviewing the Funding Strategy Statements for the Tayside Superannuation Funds.

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

V SCOTTISH LGPS TRAINING - OCTOBER 2013

There was submitted Agenda Note AN68-2013 advising the Sub-Committee of a Training Seminar being organised by Baillie Gifford for all Scottish LGPS Funds. The Seminar would take place in Baillie Giffords Offices in Edinburgh on 2nd to 3rd October, 2013. The Seminar would be free but there would be travel and subsistence costs.

The Sub-Committee noted accordingly.

VI CHANGE OF NAME FUND

There was submitted Agenda Note AN69-2013 seeking approval to change the names of Tayside Superannuation Fund and Tayside Transport Superannuation Fund to Tayside Pension Fund and Tayside Transport Pension Fund respectively. This would be in line with all other Scottish Local Government Pension Schemes.

The Sub-Committee approved the changes, noting that a recommendation be made to the City Council to approve the change of name of the Sub-Committee to the Pensions Investment 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.

VII TAYSIDE SUPERANNUATION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 267-2013 by the Director of Corporate Services relating to Performance Summaries for the quarter, 12 months and three years to 31st March, 2013 reviewing the investment performance of the Main Funds five Fund Managers (including Property) and the Financing Fund for the quarter to 31st March, 2013. 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.

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) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 231-2013 by the Director of Corporate Services summarising investments and transactions during the period 1st January to 31st March, 2013 and reviewing the investment activities of the Main Funds six Fund Managers for the quarter to 31st March, 2013. 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.

(c) QUARTERLY FUNDING REPORT

There was submitted Report No 264-2013 by the Director of Corporate Services reviewing the current funding level of the Funds as assessed by the Fund Actuary.

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

VIII REVIEW OF STRUCTURE MAIN FUND

There was submitted Report No 263-2013 by the Director of Corporate Services reviewing the structure of the Main Fund.

The Sub-Committee agreed the recommendations contained within the report.

IV 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.