Policy And Resources Committee - 19/08/2019

At a MEETING of the POLICY AND RESOURCES COMMITTEE held at Dundee on 19th August, 2019.

Present:-

BAILIES

COUNCILLORS

Councillor John ALEXANDER, Convener, in the Chair.

The minute of meeting of this Committee of 24th June, 2019 was held as read.

Unless marked thus * all items stand delegated.

I DECLARATION OF INTEREST

Bailie Roberts and Councillor Marra declared non-financial interests in respect of Articles IV and VII of this minute by virtue of being Council representatives on Leisure & Culture Dundee.

Bailie Wright and Councillors Short, Rendall and McIrvine declared non-financial interests in respect of Article XIV of this minute by virtue of being Council representatives on Dovetail.

II MINUTE OF PENSION SUB-COMMITTEE AND PENSION BOARD

The minute of meeting of the Pension Sub-Committee and Pension Board of 25th March, 2019, a copy of which is appended hereto, was submitted for information and record purposes (Appendix I).

III CHANGING FOR THE FUTURE TRANSFORMATION PROGRAMME C2022

On a reference to Article V of the minute of meeting of this Committee of 25th June, 2018, there was submitted Report No 255-2019 by the Chief Executive providing the first annual update on the Changing For The Future Programme (C2022).

The Committee:-

(i) noted the updates detailed in the report, the progress so far, and programme issues and risks; and

(ii) agreed the programme priority projects for 2019/2020 as listed in the report.

IV LEISURE & CULTURE DUNDEE - PERFORMANCE AND IMPACT REPORT FOR 2018/2019

On a reference to Article VII of the minute of meeting of this Committee of 7th December, 2015, there was submitted Report No 209-2019 by the Chief Executive providing an annual report setting out financial and performance information on Leisure & Culture Dundee to meet the guidance on Following The Public Pound.

The Committee:-

(i) noted the performance across the range of services undertaken by Leisure & Culture Dundee in the detailed annual report appended at Appendix 1 of the report; and

(ii) noted the highlights for Library and Information Services, Cultural Services and Leisure and Sports Services provided in relation to the strategic priorities in the City Plan as reported in Appendix 2 of the report.

V DUNDEE HEALTH AND SOCIAL CARE PARTNERSHIP ANNUAL PERFORMANCE REPORT 2018/2019

There was submitted Report No 276-2019 by the Chief Officer, Dundee Health and Social Care Partnership submitting the Dundee Health and Social Care Partnership Annual Performance Report 2018/2019 to Dundee City Council, as one of the statutory partners under the Public Bodies (Joint Working) (Scotland) Act 2014, for information.

The Committee:-

(i) noted the publication of the Dundee Health and Social Care Partnership 2018/2019 Annual Performance Report; and

(ii) noted that a summary version of the Annual Performance Report 2018/2019 would be published by the Partnership in due course.

VI REVENUE MONITORING 2019/2020

There was submitted Report No 262-2019 by the Executive Director of Corporate Services providing an analysis of the 2019/2020 projected revenue outturn as at 30th June, 2019 monitored against the adjusted 2019/2020 Revenue Budget.

The Convener, seconded by Bailie Sawers, moved that the Committee:-

(i) note that the overall General Fund 2019/2020 projected revenue outturn as at 30th June, 2019 is projecting an overspend of 4,796,000 against the adjusted 2019/2020 Revenue Budget;

(ii) note that the Housing Revenue Account as at 30th June, 2019 is projecting a breakeven position against the adjusted HRA 2019/2020 Revenue Budget;

(iii) agree that the Council Management Team will take every reasonable action to ensure that the 2019/2020 revenue expenditure is below or in line with the adjusted Revenue Budget; and

(iv) instruct the Executive Director of Corporate Services, in conjunction with the Council Management Team, to continue to monitor the Council's 2019/2020 projected revenue outturn and to implement a recovery plan to reduce the projected overspend.

As an amendment, Bailie Keenan, seconded by Councillor McCready, moved approval of the above together with the undernoted:-

(v) where a department or service reports an overspend of 250,000 or more within the Revenue Monitoring reports they should be instructed to bring forward a detailed report to the next Policy and Resources Committee that sets out explanations for any and all overspends on a line by line basis against their agreed final Revenue Budget. This report will also include a detailed action plan that shows how the department or service will bring their expenditure back within the agreed budget and such reports will continue until the issues around the overspend have been addressed.

On a division, there voted for the motion - the Convener, Depute Lord Provost Campbell, Bailies Roberts and Sawers, Councillors Cordell, Flynn, Hunter, Lynn, Rendall, Rome, Ross, Short, Smith and Murray (14); and for the amendment - Bailies Keenan, Wright, Scott and Macpherson, Councillors Cruickshank, McCready, McIrvine, Malone, Marra, Hay, Scott and Duncan (12) - Councillor Richardson being absent when the vote was taken - whereupon the motion was declared carried.

VII CAIRD PARK, CAMPERDOWN AND FUTURE CITY GOLF STRATEGY

The Committee acceded to a request for a deputation to address the Committee relative to this item. After the deputation had stated their case and answered questions from members of the Committee they were thanked for their attendance and withdrew.

There was submitted Report No 217-2019 by the Executive Director advising the Committee of the challenges relating to the provision of golf at Camperdown and Caird Park and considering the key issues of sustainability and future development of both Camperdown and Caird Park.

The Convener, seconded by Bailie Sawers, moved:-

(i) the Committee note that Leisure & Culture Dundee have concluded that the 2019/2020 season will be the last year that the Camperdown Golf Course operates unless an alternative operator wishes to take on the course;

(ii) the Committee note progress with implementation of the existing development/master plan for Camperdown Park and instruct the Executive Director of Neighbourhood Services, Executive Director of City Development, and Director, Leisure & Culture to bring back a refreshed plan for the next five to ten years;

(iii) the Committee instruct the Executive Director of City Development to provide an update on the initiatives to market/develop an alternative use strategy for Camperdown House;

(iv) the Executive Director of Neighbourhood Services, in partnership with Leisure & Culture Dundee, City Development, and other key stakeholders, continue development of a strategy through a feasibility study which examines options for the future use of Caird Park;

(v) the proposal to develop a Driving Range at Caird Park should be taken forward as quickly as possible; and

(vi) the Executive Director of Neighbourhood Services, undertake an appraisal to determine the associated costs relative to the future grounds maintenance requirements resulting from the change in use of Camperdown Golf Course into a restored public parkland amenity within Camperdown Country Park.

As an amendment, Councillor McCready, seconded by Councillor Malone, moved that the Committee does not agree the recommendations in the report but instead:-

(a) the Committee note that Leisure & Culture Dundee have concluded that the 2019/2020 season will be the last that the Camperdown Golf Course operates; and further notes that the final decision on any closure of the course lies with this Committee and calls for no action to be taken at this time until the further actions outlined here have taken place;

(b) the Committee instructs the Executive Director of Neighbourhood Services to carry out a full consultation with golf clubs, associations and golf course users on their views on the future of municipal golf provision in the city;

(c) the Committee instructs the Executive Director of Neighbourhood Services to bring forward a full report on efforts to find an alternative means of providing a golf course at Camperdown Park including, in-house provision, a third-party provider and the possibilities of a community asset transfer;

(d) the Committee instructs the Chief Executive to ensure that any future report on golf facilities includes all the relevant financial information including information about the costs associated with the upkeep of any closed golf course and any additional security costs incurred as a result of any closure. Future reports must also detail costings of any speculative efforts to generate income;

(e) the Committee note the progress with the implementation of the existing development/master plan for Camperdown Park and instructs the Executive Director of Neighbourhood Services, Executive Director of City Development, and Director, Leisure & Culture to bring forward a refreshed plan for the next five to ten years; and

(f) the Committee notes the unanimous approval of Report No 329-2012 by the Environment Committee on 10th September, 2012, Article V of the minute of the meeting of the Environment Committee of 10th September, 2012 refers, further notes the lack of progress on bringing Camperdown House back into productive use. Committee therefore instructs the Executive Director of City Development to produce a report which updates the Committee on initiatives to market/develop a productive use for Camperdown House.

On a division, there voted for the motion - the Convener, Depute Lord Provost Campbell, Bailies Roberts and Sawers, Councillors Cordell, Flynn, Hunter, Lynn, Rendall, Rome, Ross, Short, Smith and Murray (14); and for the amendment - Bailies Keenan, Wright, Scott and Macpherson, Councillors Cruickshank, McCready, McIrvine, Malone, Marra, Richardson, Hay, Scott and Duncan (13) - whereupon the motion was declared carried.

VIII DUNDEE HOUSE SALE AND LEASEBACK UPDATE

On a reference to Article II of the minute of meeting of this Committee of 21st February, 2019, there was submitted Report No 269-2019 by the Executive Director of Corporate Services providing an update on the sale and leaseback of Dundee House.

The Committee:-

(i) noted the sale of Dundee House to Canada Life; and

(ii) noted the Council had entered into a 40 year lease of Dundee House from Canada Life.

IX CAPITAL EXPENDITURE MONITORING 2019/2020

There was submitted Report No 257-2019 by the Executive Director of Corporate Services appraising members of the latest position regarding the Council's Capital Plan 2019/2024.

The Committee noted the contents of the report.

X UPDATED CAPITAL PLAN 2019/2024 - GENERAL SERVICES AND HOUSING HRA

On a reference to Article II of the minute of meeting of this Committee of 10th December, 2018, there was submitted Report No 258-2019 by the Executive Director of Corporate Services providing elected members with background information and details of the Council's updated General Services and Housing HRA Capital Plan for the five year period 2019/2024.

The Committee:-

(i) approved the Council's updated General Services and Housing HRA Capital Plan for 2019/2024 appended to the report;

(ii) noted the gross capital expenditure investment of 379m over the next five years;

(iii) noted the updated position for the 2019/2020 projected capital expenditure programmes as at 30th June, 2019; and

(iv) approved the Prudential Indicators for the updated Capital Plan 2019/2024, as shown in Appendix 2 of the report, and noted that these Indicators demonstrated that the Updated Capital Plan 2019/2024 was affordable, prudent and sustainable.

XI IT CAPITAL EXPENDITURE

There was submitted Report No 259-2019 by the Executive Director of Corporate Services notifying the Committee of the capital expenditure for IT equipment purchased under various compliant frameworks, including the Crown Commercial Service procurement scheme and Procurement Scotland framework agreements.

The Committee noted the IT capital purchases amounting to 1.059m detailed in Appendix 1 of the report, covering the period 1st April, 2018 to 31st March, 2019.

XII LONG-TERM FINANCIAL OUTLOOK AND FINANCIAL STRATEGY 2020/2030

There was submitted Report No 274-2019 by the Executive Director of Corporate Services presenting the long-term financial outlook for noting and recommending a financial strategy for the ten year period 2020/2030 for approval. The next steps in the Council's Revenue Budget process were also set out for noting.

The Committee:-

(i) noted the current projections for the Council's Revenue Budget for the period 2020/2030;

(ii) noted the projected savings and efficiencies that might be required over the period 2020/2030 in order to deliver a balanced budget;

(iii) agreed a long-term financial strategy for the Council as set out in Section 12 of the report; and

(iv) noted the next steps in the Council's Revenue Budget process as set out in Section 13 of the report.

XIII V&A DUNDEE - NATIONAL LOTTERY HERITAGE FUND FINAL EVALUATION REPORT

There was submitted Report No 284-2019 by the Chief Executive advising the Committee on the outcome of the National Lottery Heritage Fund Final Evaluation on the V&A Dundee.

The Committee noted 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 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.

XIV DOVETAIL

There was submitted Report No 285-2019 by the Executive Director of Corporate Services.

The Committee approved the recommendations detailed in the report.

John ALEXANDER, Convener.

At a JOINT MEETING of the PENSION SUB-COMMITTEE of the POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held at Dundee on 25th March, 2019.

APPENDIX I

Present:-

PENSION SUB-COMMITTEE

BAILIE

COUNCILLORS

PENSION BOARD

Bailie Willie SAWERS, in the Chair.

Prior to the commencement of business, the Chair, on behalf of the Sub-Committee and Board, referred to the recent sad passing of Councillor Brian Gordon and paid tribute to his services as a Pension Sub‑Committee member.

I DECLARATION OF INTEREST

No declarations of interest were made.

II MINUTE OF PREVIOUS MEETING

The minute of meeting of 3rd December, 2018 was submitted and approved.

III TAYSIDE PENSION FUNDS RISK REGISTER

There was submitted Report No 118-2019 by the Executive Director of Corporate Services updating the Risk Register for Tayside Pension Fund.

The Sub-Committee and Board approved the updated Quarterly Risk Register for Tayside Pension Fund and noted that there had been no changes to risk profile since the previous report.

IV TAYSIDE PENSION FUND RISK MANAGEMENT POLICY AND STRATEGY

There was submitted Report No 119-2019 by the Executive Director of Corporate Services presenting Tayside Pension Funds Risk Policy and Strategy, which would be subject to annual review.

The Sub-Committee and Board approved the Risk Management Policy and Strategy.

V TAYSIDE PENSION FUND TRAINING PLAN 2019/2020

There was submitted Report No 121-2019 by the Executive Director of Corporate Services presenting Tayside Pension Funds Training Policy which would be subject to annual review.

The Sub-Committee and Board approved the Training Plan for 2019/2020.

VI PENSION ADMINISTRATION PERFORMANCE - QUARTERLY UPDATE

There was submitted Report No 122-2019 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.

VII APPLICATION FOR ADMITTED BODY STATUS

There was submitted Report No 123-2019 by the Executive Director of Corporate Services seeking the agreement of the Sub-Committee and Board to admission of a new body, to be set up following a procurement exercise by the Scottish Fire and Rescue Service, into the Local Government Pension Scheme as an Admission Body. The successful bidder under the procurement exercise was Sodexho. The applicable staff would be transferring from Tayside Contracts to Sodexho under the terms of the Scottish Fire and Rescue procurement exercise.

The Sub-Committee and Board agreed that, from the date of contract, and for the period of their current contract (three years plus option to extend for one further year), the successful bidder be admitted to the Local Government Pension Scheme as an Admission Body and that an appropriate admission agreement be made and entered into.

VIII INTERNAL AUDIT REPORT 2017/15 - UTILISATION OF PENSIONSWEB

There was submitted Report No 124-2019 by the Executive Director of Corporate Services providing details of the outcome of an Internal Audit Review in relation to the utilisation of the LGPS PensionsWEB self-service module by scheme employers.

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

IX TAYSIDE PENSION FUND - AUDIT SCOTLAND ANNUAL AUDIT PLAN 2018/19

There was submitted Report No 125-2019 by the Executive Director of Corporate Services providing a summary of the responsibilities and approach of Audit Scotland in respect of Tayside Pension Fund for 2018/19.

The Sub-Committee and Board noted the report by Audit Scotland.

X TREASURY POLICY STATEMENT

There was submitted Report No 126-2019 by the Executive Director of Corporate Services revising the Councils 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 Treasury Policy Statement 2019/2020, noting that the Treasury Policy Statement required to be reviewed annually.

XI TREASURY MANAGEMENT STRATEGY

There was submitted Report No 127-2019 by the Executive Director of Corporate Services reviewing the Treasury Management Strategy for the Tayside Pension Fund.

The Sub-Committee and Board approved the Treasury Management Strategy.

XII TAYSIDE PENSION FUND - STATEMENT OF INVESTMENT BELIEFS

There was submitted Report No 128-2019 by the Executive Director of Corporate Services presenting Tayside Pension Funds Statement of Investment Beliefs, which would be subject to review in line with Investment and Funding and policies.

The Sub-Committee and Board noted the information within the report and approved the Statement of Investment Beliefs.

XIII FUNDING STRATEGY STATEMENT

There was submitted Report No 129-2019 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.

XIV STATEMENT OF INVESTMENT PRINCIPLES REVIEW

There was submitted Report No 130-2019 by the Executive Director of Corporate Services reviewing Statements of Investment Principles for Tayside Pension Fund.

The Sub-Committee and Board noted the information contained within the report and approved the Statements of Investment Principles.

XV TAYSIDE PENSION FUNDS BUSINESS PLAN 2019/2020

There was submitted Report No 131-2019 by the Executive Director of Corporate Services introducing the annual Business Plan for the Tayside Pension Fund.

The Sub-Committee and Board noted the information within the report and approved the 2019/2020 Business Plan which applied to the administration and management of the Tayside Pension Fund.

XVI PROCUREMENT FOR CONSULTANCY SERVICES TO SUPPORT SPECIALIST PROJECTS - UNDERTAKING A SCHEME EMPLOYER COVENANT REVIEW

There was submitted Report No 132-2019 by the Executive Director of Corporate Services seeking approval to grant delegated authority for the Executive Director of Corporate Services in respect of the procurement exercise for Covenant Review Services.

The Sub-Committee and Board agreed to delegate authority to the Executive Director of Corporate Services to appoint a service provider to undertake an exercise to review the covenants of the employers of Tayside Pension Fund following the outcome of a National LGPS Framework mini-competition. The outline details of the mini-competition had been contained within the report.

The Sub-Committee and Board 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, 9 and 11 of Part I of Schedule 7A of the Act.

XVII TAYSIDE PENSION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 133-2019 by the Executive Director of Corporate Services relating to Performance Summaries for the quarter, 1, 3, and 5 year time periods to 30th December, 2018 and reviewing the investment performance of the Funds Investment Managers for the quarter to 31st December, 2018.

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

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS 1ST OCTOBER, 2018 - 31ST DECEMBER, 2018

There was submitted Report No 84-2019 by the Executive Director of Corporate Services summarising investments and transactions during the period 1st October to 31st December, 2018 and reviewing the investment activities of the Main Fund for the quarter to 31st December, 2018.

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

(c) QUARTERLY FUNDING REPORT

There was submitted Report No 135-2019 by the Executive Director of Corporate Services which considered a report reviewing the current funding level of the Fund as assessed by the Fund Actuary.

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

XVIII REAL ASSET INVESTMENT OPPORTUNITY

A verbal update was given to the Sub-Committee and Board on Real Asset Investment Opportunity.

XIX ANNUAL PERFORMANCE REVIEW TO 31ST DECEMBER, 2018

There was submitted Report No 136-2019 by the Executive Director of Corporate Services considering a report by the Annual Review of Investment Performance 2018.

The Sub-Committee and Board noted the report.

XX PRESENTATION

Graeme Rutter, Patrick Bone and Geoff Day from Schroders gave a short presentation.

It was reported that the Fund was continuing to outperform the benchmark and that there had been a strong UK performance. The portfolio continued to be well diversified, with potential for investment within new residential strategies.

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

Willie SAWERS, Convener.