Policy And Resources Committee - 23/04/2018

At a MEETING of the POLICY AND RESOURCES COMMITTEE held at Dundee on 23rd April, 2018.

Present:-

BAILIES

COUNCILLORS

Councillor John ALEXANDER, Convener, in the Chair.

The minute of meeting of this Committee of 12th March, 2018 was held as read.

Unless marked thus * all items stand delegated.

I DECLARATIONS OF INTEREST

Councillors Dawson, Hunter and McCready declared a non-financial interest in Article X by virtue of being Council representatives on Leisure & Culture Dundee.

Bailie Macpherson declared a non-financial interest in Article X by virtue of his membership of the Discovery Walk Committee.

Councillor Murray declared a non-financial interest in Article XVI by virtue of being the Council's representative on the Dundee Science Centre.

Councillors Lynn and McCready declared a non-financial interest in Article XVII by virtue of being Council representatives on Dundee Rep and Scottish Dance Theatre.

II MINUTES

(a) PERSONNEL APPEALS SUB-COMMITTEE - 31ST JANUARY, 2018

(b) PENSION SUB-COMMITTEE AND THE PENSION BOARD - 5TH MARCH, 2018

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

III LOCAL GOVERNMENT BENCHMARKING FRAMEWORK PERFORMANCE INDICATORS 2016/2017

There was submitted Report No 65-2018 by the Chief Executive advising elected members of the performance of Dundee City Council, including functions delegated to the Integration Joint Board, for the financial year 2016-2017, as defined by the performance indicators compiled by the Improvement Service for the Local Government Benchmark Framework and, in particular, in relation to the other peer local authorities in the Council's Family Group which had similar characteristics such as urban density and deprivation.

The Committee:-

(i) noted the results contained in the report;

(ii) remitted the report to the Scrutiny Committee for further consideration;

(iii) remitted the Council Management Team to continue to seek improvement to the indicators contained in the report; and

(iv) agreed to publish the Local Government Benchmarking Framework report on the Council's website.

IV CORPORATE RISK REGISTER

There was submitted Report No 143-2018 by the Executive Director of Corporate Services seeking approval for the Council's revised Corporate Risk Register.

The Committee noted the contents of the report and approved the revised Corporate Risk Register appended thereto.

V IMPROVING SERVICES THROUGH LISTENING TO CUSTOMERS AND SERVICE USERS

There was submitted Report No 36-2018 by the Chief Executive highlighting improvements which had been made to Council services as a result of listening to the views of customers and service users over the past year and reporting on feedback from surveys with customers who had contacted Customer Services face-to-face or by telephone.

The Committee:-

(i) noted the contents of the report and agreed that similar reports should continue to be submitted annually;

(ii) agreed that highlights from the report, as set out in Appendix 1 to the report, be published on the "We Listened, We Acted" page of the Council's website; and

(iii) encouraged services to maintain their efforts to listen to and respond to feedback, and to identify any further customers who should be consulted, with a view to achieving service improvements.

VI DUNDEE CITY COUNCILS COMMITMENT TO THE UNs SUSTAINABLE DEVELOPMENT GOALS

There was submitted Report No 114-2018 by the Chief Executive proposing a response to the SDG Network Scotland, which had asked the Council to demonstrate its commitment to the United Nations' 17 Sustainable Development Goals.

The Committee agreed the response as detailed in Appendix 1 to the report.

VII COMMUNITY PLANNING UPDATE

There was submitted Report No 137-2018 by the Chief Executive providing Committee with an update on Community Planning and recommending additional elected member involvement in the Dundee Partnership's Executive Boards.

The Committee:-

(i) noted the adoption of local community plans by Local Community Planning Partnerships across the city;

(ii) noted the outcome of the "Dundee Decides" participatory budgeting process;

(iii) agreed to extend elected member involvement in the Dundee Partnership's Executive Boards as detailed in paragraph 4.4 of the report; and

(iv) noted that a progress report on the actions and performance targets included in the City Plan 2017-2026 was scheduled to come to Committee in Autumn 2018.

 

VIII OPENING OF SCHOOL GROUNDS FOR COMMUNITY USE

 

On a reference to Article IV of the minute of meeting of this Committee of 31st October, 2016, there was submitted Report No 146-2018 by the Executive Director of Children and Families Service outlining progress made to date on the opening of the playgrounds and seeking approval to improve and further extend the pilot to include more schools in the city.

 

The Committee:-

 

(i) noted and approved the contents of the report;

 

(ii) agreed to improve the operating model and extend the pilot; and

 

(iii) instructed the Executive Director of Children and Families Service to report back on progress in 12 months.

 

IX CORPORATE COMMUNICATION STRATEGY 2018/2021

 

There was submitted Report No 113-2018 by the Chief Executive presenting the Corporate Communication Strategy and Action Plan for approval.

 

The Committee approved the Corporate Communication Strategy and Action Plan appended to the report as Appendices 1 and 2 respectively.

 

X COMMON GOOD FUND

 

There was submitted Report No 106-2018 by the Executive Director of Corporate Services providing details of the Council's Common Good Fund Revenue Budget for 2018/2019 and making recommendations for the disbursement of funds for the financial year.

 

The Committee:-

 

(i) approved the Common Good Fund 2018/2019 Revenue Budget as detailed in Appendix A of the report; and

 

(ii) noted that the 2018/2019 balance of 120,000 would be allocated during the year following an assessment through the Dundee Partnership Process approved by the Executive Director of Corporate Services.

 

XI TREASURY POLICY STATEMENT

 

On a reference to Article VII of the minute of meeting of this Committee of 13th March, 2017, there was submitted Report No 126-2018 by the Executive Director of Corporate Services proposing the revision of the Council's Treasury Management Policy which was intended to govern all borrowing and lending transactions carried out by the Council.

 

The Committee approved the policies and procedures laid out in the Treasury Policy Statement 2018/2019 appended to the report.

 

XII TREASURY MANAGEMENT STRATEGY 2018/2019

 

On a reference to Article VIII of the minute of meeting of this Committee of 13th March, 2017, there was submitted Report No 127-2018 by the Executive Director of Corporate Services introducing the Dundee City Council Treasury Management Strategy Statement and Annual Investment Strategy for 2018/2019, the preparation of which was a requirement of the Council's Treasury Policy Statement and CIPFA Code of Practice on Treasury Management.

 

The Committee:-

 

(i) noted that in terms of the Treasury Policy Statement, the Executive Director of Corporate Services was obliged to present the annual Treasury Management Strategy at the start of each financial year; and

 

(ii) approved the strategy proposed by the Executive Director of Corporate Services for 2018/2019 as set out in the document "Treasury Management Strategy 2018/2019" appended to the report.

 

XIII TAYSIDE PENSION FUND ACTUARIAL VALUATION AT 31ST MARCH, 2017

 

There was submitted Report No 128-2018 by the Executive Director of Corporate Services updating the Committee on the Actuarial Valuation of Tayside Pension Fund as at 31st March, 2017.

 

The Committee noted the information contained within the report.

 

XIV CAPITAL EXPENDITURE MONITORING 2017/2018

 

There was submitted Report No 107-2018 by the Executive Director of Corporate Services appraising elected members of the latest position regarding the Council's Capital Plan 2018-2023.

 

The Committee noted the contents of the report.

 

XV REVENUE MONITORING 2017/2018

 

There was submitted Report No 104-2018 by the Executive Director of Corporate Services providing elected members with an analysis of the 2017/2018 projected revenue outturn as at 28th February, 2018 monitored against the adjusted 2017/2018 Revenue Budget.

 

The Committee:-

 

(i) noted that the overall General Fund 2017/2018 projected revenue outturn as at 28th February, 2018 was a projected overspend of 903,000 against the adjusted 2017/2018 Revenue Budget. The latest projected outturn was an unfavourable variance of 180,000 compared with the position reported at 12th February, 2018;

 

(ii) noted that the Housing Revenue Account as at 28th February, 2018 was projecting a 600,000 projected overspend against the adjusted HRA 2017/2018 Revenue Budget. The latest projected outturn was an unfavourable variance of 300,000 compared with the latest position reported as at 12th February, 2018;

 

(iii) agreed that the Council Management Team would take every reasonable action to ensure that the 2017/2018 revenue expenditure was below or in line with the adjusted Revenue Budget; and

 

(iv) instructed the Executive Director of Corporate Services, in conjunction with the Council Management Team, to continue to monitor the Council's 2017/2018 projected revenue outturn.

 

XVI FUNDING TO DUNDEE SCIENCE CENTRE

 

After considering Report No 141-2018 by the Chief Executive relative to the above, the Committee approved the grant of 100,000 to the Dundee Science Centre to complete the funding required to assist in their project to extend their exhibition space and create a new science learning facility.

 

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 item of business on the grounds that it involved the likely disclosure of exempt information as defined in paragraphs 6 and 9 of Part I of Schedule 7A of the Act.

 

XVII DUNDEE REP AND SCOTTISH DANCE THEATRE LTD

 

There was submitted Report No 115-2018 by the Executive Director of Corporate Services relative to the above.

 

The Committee approved the recommendation detailed therein.

 

 

 

 

John ALEXANDER, Convener.

 

At a MEETING of the PERSONNEL APPEALS SUB-COMMITTEE held at Dundee on 31st January, 2018.

 

APPENDIX I

 

Present:-

 

COUNCILLORS

 

Stewart HUNTER

Mark FLYNN

George McIRVINE

 

Councillor Stewart HUNTER, in the Chair.

 

The minute of meeting of this Committee of 15th January, 2018 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 Neighbourhood Services Department had been submitted.

 

The Sub-Committee heard the Councils representatives 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 the appeal be upheld to the extent that the Appellant is to be reinstated to his previous post with a twelve month final opportunity to improve his attendance imposed from 31st January, 2018.

 

 

 

 

Stewart HUNTER, Convener.

 

At a JOINT MEETING of the PENSION SUB-COMMITTEE of the POLICY AND RESOURCES COMMITTEE and the PENSION BOARD held at Dundee on 5th March, 2018.

 

APPENDIX II

 

Present:-

 

PENSION SUB-COMMITTEE

 

BAILIES

 

Willie SAWERS

Kevin KEENAN

 

 

COUNCILLORS

 

Anne RENDALL

Gregor MURRAY

Brian GORDON

 

PENSION BOARD

 

Arthur NICOLL

Gordon MURRAY

 

Bailie Willie SAWERS, Convener.

 

I DECLARATION OF INTEREST

 

There were no declarations of interest.

 

II MINUTE OF PREVIOUS MEETING

 

The minute of the meeting of 4th December, 2017 was submitted and approved.

 

III TAYSIDE PENSION FUNDS RISK REGISTER

 

There was submitted Report No 79-2018 by the Executive Director of Corporate Services updating the Risk Register for the Tayside Pension Funds.

 

The Sub-Committee and Board approved the updated Quarterly Risk Register for the Tayside Pension Fund and Tayside Transport Pension Fund and noted the following changes to the risk profile from the previous report:-

 

- NEW RISK 18 EMPLOYER COVENANT RISK

 

Following exercises undertaken by the Government Actuaries Department in this area, this had been identified as a risk to funding levels of LGPS for employers who were without guarantee if circumstances occur whereby employers had to make an unplanned exit from the Fund. Following receipt of the Actuarial Valuation as at 31st March, 2017 and the receipt of respective employers cessation liabilities, an exercise would be undertaken to assess their strength of covenant, and appropriate measures would ensue.

 

- RISK NO 1 - FAILURE TO PROCESS PENSION PAYMENTS AND LUMP SUMS ON TIME

 

This risk had been heightened due to recent system downtime outages in respect of the Council's payroll system and also issues with completeness of information received from the system. Whilst the causes were still being investigated, this risk would be reduced once causes were identified, and controls put in place.

 

- RISK NO 4 - FAILURE TO KEEP SERVICE GOING DUE TO LOSS OF MAIN OFFICE, COMPUTER SYSTEM OR STAFF

 

This risk was heightened during the period since last report due to IT outages as a result of the recent power surge which resulted in no pensions system being available for three days and the subsequent impact this had on performance. Improvements had been made following this event, and there was now additional comfort in the stability of the new hosting platform and the further allocation of a specialist team to deal with pension fund issues. This risk had been subsequently reduced to the previous categorisation as a result of these measures, and also after receiving confirmation that the Altair system was now provided with tier 1 status in terms of disaster recovery alongside the Council's other key systems.

 

- RISK NO 13 - FAILURE TO HOLD PERSONAL DATA SECURELY

 

This risk had been heightened due to risk of incoming data protection legislation (GDPR) in May, 2018 which placed additional legal requirements on funds. Until the Fund were confident that all requirements of the new legislation were met, this risk would remain at new level due to the increased likelihood of failing to accommodate the new requirements.

 

IV PENSION ADMINISTRATION PERFORMANCE

 

There was submitted Report No 80-2018 by the Executive Director of Corporate Services providing information on the recent quarters operational performance in relation to Pension Administration.

 

The Sub-Committee and Board noted the content of the report.

 

V PENSION ADMINISTRATION STRATEGY UPDATE

 

There was submitted Report No 81-2018 by the Executive Director of Corporate Services providing an update as to how the Fund had been able to meet the strategic performance measures against which the Fund and participating employers were assessed with performance being reported to the Committee and Board.

 

The Sub-Committee and Board noted the content of the report.

 

VI ADMINISTERING AUTHORITY DISCRETION - REQUEST TO AMEND THE TRANSFER POLICY

 

There was submitted Report No 82-2018 by the Executive Director of Corporate Service reviewing the current policy of Tayside Pension Fund in respect of the policy which stated that only pension rights accrued with a scheme participating in the Public Sector Transfer Club could be transferred into the LGPS Fund. The report also commented on the policies of the other Scottish LGPS.

 

The Sub-Committee and Board approved that, in circumstances where scheme members had been subject to TUPE/Fair Deal and who subsequently were returned to their employer following that period, they be allowed to transfer in the pension rights accrued whilst in the pension arrangement provided during the period they were subject to TUPE/Fair Deal, and agreed that the policy be amended in order to be more compatible with modern working practices and in line with other Scottish LGPS Funds.

 

VII LGPS (SCOTLAND) PEER PERFORMANCE OVERVIEW

 

There was submitted Report No 83-2018 by the Executive Director of Corporate Services providing information on peer analysis of Tayside Pension Fund over the 12 month period to 31st March, 2017.

 

The Sub-Committee and Board noted the content of the report.

 

VIII TAYSIDE PENSION FUND ANNUAL AUDIT PLAN 2017/18

 

There was submitted Report No 84-2018 by the Executive Director of Corporate Services providing a summary of the responsibilities and approach in respect of Tayside Pension Fund for 2017/2018.

 

The Sub-Committee and Board noted the information contained in the report.

 

IX TREASURY POLICY

 

There was submitted Report No 85-2018 by the Executive Director of Corporate Services revising the Council's Treasury Policy Statement which was intended to govern all treasury activities carried out by the Pension Fund.

 

The Sub-Committee and Board approved the policies and procedures laid out in the attached 'Treasury Policy Statement 2018/2019', noting that the Treasury Policy Statement must be maintained reviewed annually.

 

X TREASURY MANAGEMENT STRATEGY

 

There was submitted Report No 86-2017 by the Executive Director of Corporate Services reviewing the Treasury Management Strategy for Tayside Pension Fund.

 

The Sub-Committee and Board approved the Treasury Management Strategy for Tayside Pension Fund.

 

XI FUNDING STRATEGY STATEMENT

 

There was submitted Report No 87-2018 by the Executive Director of Corporate Services reviewing the Funding Strategy Statements for the Tayside Pension Fund.

 

The Sub-Committee and Board approved the Funding Strategy Statement for Tayside Pension Fund.

 

XII TAYSIDE PENSION FUNDS BUSINESS PLAN 2018/2019

 

There was submitted Report No 88-2018 by the Executive Director of Corporate Services introducing the annual business plan for the Tayside Pension Funds.

 

The Sub-Committee and Board noted the information within the report and approved the 2018/2019 Business Plan which applied to the administration and management of the Tayside Pension Funds.

 

XIII PROFESSIONAL SERVICES PROCUREMENT

 

A verbal update on upcoming procurement exercises, for Investment Consultancy Actuarial Services and the Employer Covenant Review, was given to the Sub-Committee and Board.

 

XIV TAYSIDE PENSION FUNDS ACTUARIAL VALUATION AT 31ST MARCH, 2017

 

There was submitted Report No 91-2018 by the Executive Director of Corporate Services updating the Committee on the Actuarial Valuation of Tayside Pension Fund at 31st March, 2017.

 

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

 

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 4, 6 and 11 of Part I of Schedule 7A of the Act.

 

XV TAYSIDE PENSION FUNDS

 

(a) PERFORMANCE SUMMARIES

 

There was submitted Report No 89-2018 by the Executive Director of Corporate Services relating to Performance Summaries for the quarter 1, 3 and 5 year time periods to 30th December, 2017 reviewing the investment performance of the Main Fund's seven Fund Managers for the quarter 31st December, 2017. It also considered the performance of the Transport Fund which invested with four of these Managers. The report compared investment performance of the Fund with the specific benchmarks which consist of various stock and security market indices.

 

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

 

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

 

There was submitted Report No 90-2018 by the Executive Director of Corporate Services, summarising investments and transactions during the period 1st October to 31st December, 2017 reviewing the investment activities of the Main Fund's seven Fund Managers for the quarter to 31st December, 2017 summarising the transactions of each Fund Manager and showing the market values of the Main Fund.

 

The Sub-Committee and Board noted the information contained therein with regard to the activities of the Tayside Pension Fund and its Fund Managers.

 

XVI ANNUAL REVIEW OF INVESTMENT PERFORMANCE

 

There was submitted Report No 92-2018 by the Executive Director of Corporate Services considering reports by the Tayside Pension Fund's Investment Consultant.

 

The Sub-Committee and Board noted the report by the Investment Consultant and, in particular, the recommendations on individual investment managers.

 

XVII PRESENTATION

 

Due to adverse weather conditions, it was not possible for a presentation to be given from Alliance Bernstein.

 

However, it was noted that the Fund was continuing to perform above the benchmark.

 

 

 

 

Willie SAWERS, Chair.