Policy And Resources Committee - 28/10/2013

At a MEETING of the POLICY AND RESOURCES COMMITTEE held at Dundee on 28th October, 2013.

Present:-

BAILIES

COUNCILLORS

Councillor Ken GUILD, Convener, in the Chair.

The minute of meeting of this Committee of 23rd September, 2013 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 SEPTEMBER, 2013

(ii) PERSONNEL APPEALS SUB-COMMITTEE OF 10TH SEPTEMBER, 2013

(iii) PERSONNEL APPEALS SUB-COMMITTEE OF 26TH SEPTEMBER, 2013

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

III DUNDEE COMMUNITY REGENERATION FUND 2013/2014

There was submitted Report No 443-2013 by the Chief Executive relative to the above.

The Committee approved the allocations to the Community Regeneration Forum for 2013/2014 and funding proposals contained in Section 5.2 of the report detailed below:-

IV REVENUE MONITORING 2013/2014

There was submitted Report No 400-2013 by the Director of Corporate Services providing the Committee with an analysis of the 2013/2014 Projected Revenue Outturn as at 31st August, 2013 monitored against the adjusted 2013/2014 Revenue Budget.

The Committee:-

(i) noted that the overall General Fund 2013/2014 Projected Revenue Outturn as at 31st August, 2013 was projecting a breakeven position against the adjusted 2013/2014 Revenue Budget;

(ii) noted that the Housing Revenue Account as at 31st August, 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.

V CAPITAL EXPENDITURE MONITORING

There was submitted Report No 407-2013 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.

VI DUNDEE CITY COUNCIL 2012/2013 ACCOUNTS AND AUDIT

(a) STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2013 - AUDITED

The above report was submitted and noted (Report No 423-2013).

(b) EXTERNAL AUDITOR'S REPORT

The above report was submitted and noted (Report No 424-2013).

(c) EXTERNAL AUDITOR'S REPORT - RESPONSE FROM DUNDEE CITY COUNCIL

There was submitted Report No 425-2013 by the Director of Corporate Services in response to the report by the Council's External Auditor on the audit of Dundee City Council for the year to 31st March, 2013.

The Committee:-

(i) noted the contents of the External Auditor's Report and, in particular, that KPMG LLP had issued an unqualified audit opinion on the 2012/2013 financial statements;

(ii) noted the completed Action Plan at Appendix 3 to the External Auditor's Report;

(iii) endorsed the report as the Council's formal response to the External Auditor's Report.

VII TAYSIDE SUPERANNUATION FUNDS 2012/2013

(a) AUDITED STATEMENT OF ACCOUNTS FOR THE TAYSIDE SUPERANNUATION FUNDS 2012/2013

The above report was submitted and noted (Report No 426-2013).

(b) EXTERNAL AUDITOR'S ANNUAL REPORT

The above report was submitted and noted (Report No 427-2013).

(c) TAYSIDE SUPERANNUATION FUNDS 2012/2013 ACCOUNTS AND AUDIT

There was submitted Report No 428-2013 by the Director of Corporate Services in response to the report by the Council's External Auditor on the audit of Tayside Superannuation Funds for the year to 31st March, 2013.

The Committee noted the contents of the External Auditor's Annual Audit Report and, in particular, that KPMG LLB had issued an unqualified audit opinion.

VIII RELIEF OF RATES - CHARITY RELIEF

There was submitted Report No 417-2013 by the Director of Corporate Services relative to the above.

The Committee approved the recommendations detailed in the report.

IX SINGLE OUTCOME AGREEMENT FOR DUNDEE - 2013-2017

On a reference to Article XII of the minute of meeting of this Committee of 24th June, 2013, there was submitted Report No 376-2013 by the Chief Executive presenting a final version of the Single Outcome Agreement for Dundee as signed off by the Scottish Government on 25th July, 2013, together with the Single Outcome Agreement development priorities and the Single Outcome Agreement Delivery Plan.

The Committee:-

(i) noted the Single Outcome Agreement (SOA) for Dundee 2013-2017;

(ii) noted the Single Outcome Agreement development priorities agreed with the Scottish Government; and

(iii) approved the Single Outcome Agreement 2013/2017 Delivery Plan.

X SCOTTISH GOVERNMENT BUDGET ANNOUNCEMENT AND LIKELY FINANCIAL IMPLICATIONS FOR DUNDEE CITY COUNCIL

There was submitted Report No 446-2013 by the Director of Corporate Services advising elected members of the Scottish Government Budget announcement made by the Cabinet Secretary for Finance, Employment and Sustainable Growth on 11th September, 2013, covering the financial years 2014/2015 and 2015/2016.

The Committee:-

(i) noted the contents of this report;

(ii) noted the relevant Local Government funding totals for 2014/2015 and 2015/2016, as announced by the Cabinet Secretary for Finance, Employment and Sustainable Growth on 11th September, 2013;

(iii) noted the terms of the overall funding settlement to be provided to Local Government, as advised by the Cabinet Secretary for Finance, Employment and Sustainable Growth in a letter to COSLA dated 11th September, 2013 (and as detailed in Section 5 of this report);

(iv) noted the likely financial implications for the Council, particularly in terms of the indicative level of savings that require to be identified in order to deliver a balanced budget and a Council Tax freeze over the period 2014-2016;

(v) noted that a further report will be submitted to the Policy and Resources Committee on 13th January, 2014, after the individual local authority grant funding figures are announced;

(vi) agreed the procedures to be followed for setting the 2014/2015 Revenue Budget and Council Tax level, as set out in Section 9 and Appendix 1 of this report; and

(vii) agreed that the procedures for agreeing the Councils 2014-2018 Capital Plan should be the same as those for setting the 2014/2015 Revenue Budget and Council Tax, as set out in Section 9 and Appendix 1 of this report.

Ken GUILD, Convener.

At a MEETING of the PENSION INVESTMENT SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held at Dundee on 2nd September, 2013.

APPENDIX I

Present:-

COUNCILLORS

Councillor Jimmy BLACK, Depute Convener, in the Chair.

I DECLARATION OF INTEREST

No declarations of interest were made.

II PENSION FORUM FOR PARTICIPATING MEMBERS

There was submitted Agenda Note AN99-2013 advising the Sub-Committee that the 2013 Forum would be held at Dundee Contemporary Arts on 24th October (9.00 am - 12.00 pm). In addition to general presentations relating to investment performance and fund administration, guest speakers from Alliance Trust and Barnett Waddingham would give presentations on the global economic outlook and pension reform.

III CHANGE OF NAME OF SUB-COMMITTEE

There was submitted Agenda Note AN100-2013, whereby reference was made to Article V of the City Council meeting of 19th August, 2013, whereby the change of name from Superannuation Investment Sub-Committee to Pension Investment Sub-Committee was approved.

IV TREASURY MANAGEMENT STRATEGY AMENDMENT

There was submitted Report No 360-2013 by the Director of Corporate Services amending the Treasury Management Strategy for Tayside Pension Fund.

The Sub-Committee approved the Treasury Management Strategy, including the amended 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 item of business on the grounds that it involved the likely disclosure of exempt information as defined in paragraphs 4, 6 and 11 of Part I of Schedule 7A of the Act.

V TAYSIDE SUPERANNUATION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 358-2013 by the Director of Corporate Services relating to Performance Summaries for the quarter, twelve months and three years to 30th June, 2013.

This report reviewed the investment performance of the Main Fund's five Fund Managers (including Property), and the Financing Fund for the quarter to 30th June, 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 consist of various stock and security market indices.

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

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 341-2013 by the Director of Corporate Services summarising investments and transactions during the period 1st April, 2013 reviewing the investment activities of the Main Fund's six Fund Managers for the quarter to 30th June, 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.

(c) QUARTERLY FUNDING REPORT

There was submitted Report No 359-2013 by the Director of Corporate Services which considered report reviewing the current funding level of the Funds as assessed by the Fund Actuary.

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

VI APPOINTMENT OF INVESTMENT CONSULTANT

There was submitted Report No 361-2013 by the Director of Corporate Services recommending the appointment of investment consultants for the Pension Fund following a procurement exercise for a period of three years commencing 1st October, 2013.

The Sub-Committee agreed that an Investment Consultant be appointed for the Tayside Pension Fund. Their general duties would be to provide investment advice and guidance to the officers and members of the Sub-Committee of the Fund. In addition to providing quarterly monitoring reports, they would attend one officer meeting per quarter, prepare an annual report and attend one Sub‑Committee meeting per year.

VII INVESTMENT IN TOBACCO REPORT

There was submitted Report No 362-2013 by the Director of Corporate Services seeking the instruction of the Sub-Committee with regard to the position regarding Tayside Pension Fund investment policy including investments in tobacco.

Councillor Black, seconded by Depute Lord Provost Roberts, moved that as the Pension Investment Sub-Committee note that the Scottish Government, the NHS and the City Council wish to discourage smoking, which carries very serious health risks; accepts that in this context direct investment in the tobacco sector contradicts that aim and may only be justified on financial grounds; resolves to consult the Fund Managers seeking their professional views on whether a decision not to invest directly in the tobacco sector would still leave adequate other sectors to provide returns which are not seriously diluted and, if they confirm that this is the case, consult employers to ascertain their views on whether the Fund should continue to invest directly in the tobacco sector.

The motion was carried unanimously.

VIII PRESENTATION

Gordon Strachan and Stuart Rumble of Fidelity Worldwide Investment 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 although equities in particular were continuing to out-perform the benchmark external factors it may cause future market volatility.

The Convener thanked Gordon and Stuart for their presentation.

Jimmy BLACK, Depute Convener.

At a MEETING of the PERSONNEL APPEALS SUB-COMMITTEE held at Dundee on 10th September, 2013.

APPENDIX II

Present:-

Depute Lord Provost Christina ROBERTS

COUNCILLORS

Councillor Stewart HUNTER, Convener, in the Chair.

The minute of meeting of this Committee of 29th April, 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 the Social Work 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 been substantiated in part and that the appeal be upheld to the extent that the dismissal be replaced by a final written warning.

Stewart HUNTER, Convener.

At a MEETING of the PERSONNEL APPEALS SUB-COMMITTEE held at Dundee on 26th September, 2013.

APPENDIX III

Present:-

Depute Lord Provost Christina ROBERTS

COUNCILLORS

Councillor Jimmy BLACK, Convener, in the Chair.

The minute of meeting of this Committee of 10th September, 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 the Education Department 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.

Jimmy BLACK, Convener.