Policy And Resources Committee - 10/02/2014

At a MEETING of the POLICY AND RESOURCES COMMITTEE held at Dundee on 10th February, 2014.

Present:-

BAILIES

COUNCILLORS

Councillor Ken GUILD, Convener, in the Chair.

The minute of meeting of this Committee of 27th January, 2014 was held as read.

Unless marked thus * all items stand delegated.

I DECLARATION OF INTEREST

No declarations of interest were made.

II MINUTES

(i) PENSION INVESTMENT SUB-COMMITTEE OF 2ND DECEMBER, 2013

(ii) PERSONNEL APPEALS SUB-COMMITTEE OF 29TH JANUARY, 2013

The minutes of meetings of the above Sub-Committees, copies of which are appended hereto (Appendices I and II), were submitted for information and record purposes.

III REVENUE MONITORING

There was submitted Report No 58-2014 by the Director of Corporate Services providing the Committee with an analysis of the 2013/2014 Revenue Budget.

The Committee:-

(i) noted that the overall General Fund 2013/2014 Projected Revenue Outturn as at 31st December, 2013 was projecting an underspend of 50,000 against the adjusted 2013/2014 Revenue Budget;

(ii) noted that the Housing Revenue Account as at 31st December, 2013 was projecting a breakeven position against the adjusted HRA 2013/2014 Revenue Budget;

(iii) instructed the Director of Corporate Services to take every reasonable action to ensure that the 2013/2014 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 2013/2014 Projected Revenue Outturn.

IV CAPITAL MONITORING

There was submitted Report No 40-2014 by the Director of Corporate Services appraising members of the latest position regarding the Council's Capital Expenditure Programme for 2013/2014.

The Committee noted the contents of the report.

V RELIEF OF RATES - CHARITY RELIEF

There was submitted Report No 49-2014 by the Director of Corporate Services relative to the above.

The Committee approved the recommendations detailed in the report.

VI FUTURE CORPORATE STRATEGY FOR COUNTER FRAUD

There was submitted Report No 61-2014 by the Director of Corporate Services informing Elected Members of the Council's proposed new Corporate Fraud and Corruption Policy, Corporate Fraud Action Plan and Benefit Sanction Policy.

The Committee:-

(i) approved the Corporate Fraud and Corruption Policy, Corporate Fraud Action Plan and Benefit Sanction Policy, it being noted that this would allow the Council to adopt the National Fraud Authorities Fighting Fraud Locally Strategy and allow the Revenues Counter Fraud Team to undertake pro-active counter fraud investigative activity in specific high risk pilot areas such as the Council Tax Reduction Scheme, Housing Tenancy and Blue Badge; and

(ii) agreed that a further report be submitted to this Committee with proposals on how a counter fraud team would be structured once further information was available on funding and levels of fraud identified from corporate fraud activity.

VII DUNDEE COMMUNITY REGENERATION FUND

There was submitted Report No 74-2014 by the Chief Executive relative to the above.

The Committee approved the allocations to the Community Regeneration Forums for 2013/2014 and funding proposals contained in Section 5.2 of the report appended hereto (Appendix III).

VIII DRAFT NATIONAL YOUTH WORK STRATEGY 2014/2019

There was submitted Report No 53-2014 by the Director, Leisure and Communities advising the Committee about the contents of the draft National Youth Work Strategy and Dundee's position in the national consultation about the strategy.

The Committee:-

(i) welcomed the development of a National Youth Work Strategy for 2014/2019;

(ii) acknowledged the important role that Youth Work played in the achievement of the National Outcomes;

(iii) approved the Dundee position described in this report for input to the national consultation about the strategy; and

(iv) noted that a Dundee Implementation Plan would be brought to Committee following the launch of the strategy.

IX PROPOSED REDEVELOPMENT OF DUNDEE RAILWAY STATION CONCOURSE BUILDING

On a reference to Article XV of the minute of meeting of this Committee of 20th May, 2013, there was submitted Report No 41-2014 by the Director of City Development seeking authority to conclude a lease with a hotel operator for the hotel component of the proposed redevelopment of Dundee Railway Station Concourse and to fund the necessary hotel fit-out costs through Prudential Borrowing.

The Committee:-

(i) noted the positive progress being made in securing a long-term lease with a hotel operator for the Station Concourse project;

(ii) authorised the Head of Democratic and Legal Services to conclude a lease with Sleeperz Dundee Ltd; and

(iii) agreed Prudential borrowing of 4.6m for the fit-out of the hotel element of the Station Concourse.

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 December, 2013.

Present:-

COUNCILLORS

Bailie Willie SAWERS, Convener, in the Chair.

I DECLARATION OF INTEREST

No declarations of interest were made.

II PROPOSED TIMETABLE OF MEETINGS FOR 2014

There was submitted Report No 498-2013 by the Director of Corporate Services proposing a suggested programme of meetings of the Pension Investment Sub-Committee to cover investment performance and issues arising in 2014.

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

III SOCIALLY RESPONSIBLE INVESTMENT - SIX MONTHLY REPORT

There was submitted Report No 499-2013 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, 2013.

IV STATEMENT OF ACCOUNTS AND EXTERNAL AUDITOR ANNUAL REPORT

There was submitted Agenda Note AN137-2013 advising that the following reports had been submitted to the Scrutiny Committee on 25th September, 2013:-

V COMMITTEE TRAINING - EDINBURGH - 17TH DECEMBER, 2013

There was submitted Agenda Note AN138-2013 advising that an LGPS (Scotland) training seminar on Reform of LGPS in Scotland was being held at the COSLA Offices in Edinburgh on 17th December, 2013. The Sub-Committee agreed that any member interested attend this seminar.

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 PENSION FUNDS

(i) PERFORMANCE SUMMARIES

There was submitted Report No 501-2013 by the Director of Corporate Services relating to Performance Summaries for the quarter, 12 months and three years to 30th September, 2013 and reviewing the investment performance of the Main Fund's five Fund Managers (including Property) and the M & G UK Financing Fund for the quarter to 30th September, 2013. 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 Funds' 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 Superannuation Fund and Tayside Transport Superannuation Fund and their Fund Managers.

(ii) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 485-2013 by the Director of Corporate Services summarising investments and transactions during the period 1st July to 30th September, 2013 and reviewing the investment activities of the Main Fund's six Fund Managers for the quarter to 30th September, 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 Pension Fund and Tayside Transport Pension Fund and their Fund Managers.

(iii) QUARTERLY FUNDING REPORT

There was submitted Report No 502-2013 by the 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 noted the report.

VII APPOINTMENT OF PASSIVE MANAGER AND TRANSITION OF FUNDS

Following a procurement exercise, Legal and General Investment Management had been appointed as passive investment managers. On 31st October, approximately 10% (circa 230 million) of the main fund was transferred to their management from Alliance Bernstein with a remaining 15% of the main fund asset management mandate.

No change had been made at this time to the investment mandate with regards to country weightings.

VIII RBS CLASS ACTION

A verbal update was given regarding the RBS Class Action.

IX PRESENTATION

Graeme Rutter and Tony Doherty of Schroders gave a short presentation

Graeme Rutter gave an overview of the mandate and portfolio objectives, and it was noted that the Fund was continuing to out-perform the benchmark and that returns remained stable as sentiment improved within regional markets.

Thereafter, Tony Doherty gave an overview of the European element of the Fund, noting that it had been significantly reduced to ensure that there would not be negative impact to the Fund. Furthermore, some portfolio holdings had been consolidated, and the Fund was well placed for the coming year.

After they had completed their presentation and answered questions from members of the Sub‑Committee, they were thanked for their attendance and withdrew.

Willie SAWERS, Convener.

APPENDIX II

At a MEETING of the PERSONNEL APPEALS SUB-COMMITTEE held at Dundee on 29th January, 2014.

Present:-

Depute Lord Provost Christina ROBERTS

COUNCILLORS

Councillor Stewart HUNTER, Convener, in the Chair.

The minute of meeting of this Committee of 29th October, 2013 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 City Development had been submitted.

The Sub-Committee heard the Council's representative and witnesses and, thereafter, the Appellant and her 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.

APPENDIX III