Policy And Resources Committee - 25/04/2022

At a MEETING of the POLICY AND RESOURCES COMMITTEE held remotely on 25th April, 2022.

Present:-

BAILIES

COUNCILLORS

The minute of meeting of this Committee of 7th March, 2022 was held as read.

Unless marked thus * all items stand delegated.

Councillor John ALEXANDER, Convener, in the Chair.

I DECLARATIONS OF INTEREST

Depute Lord Provost Campbell declared a non-financial interest in respect of Article V by virtue of being the Council's representative on the Dundee Fair Trade Forum.

Councillor McCready declared a non-financial interest in respect of Article V by virtue of being the Convener of the Dundee Fair Trade Forum.

Bailie Macpherson declared a non-financial interest in respect of Article V by virtue of being a member of the Dundee Fair Trade Forum.

II MINUTES

(a) PENSION SUB-COMMITTEE AND PENSION BOARD 13TH DECEMBER, 2021

The above minute, a copy of which is appended hereto, was submitted for information and record purposes (Appendix I).

III CITY OF DUNDEE AND BLACK HISTORY WORKING GROUP

On a reference to Article VII of the minute of meeting of this Committee of 28th September, 2020, there was submitted Report No 107-2022 by the Head of Democratic and Legal Services providing members with information on the work of the cross-party City of Dundee and Black History Working Group.

The Committee noted the content of the report.

IV ZELLIS RESOURCELINK PAYROLL SOFTWARE CONTRACT

There was submitted Report No 122-2022 by the Executive Director of Corporate Services seeking approval to direct award to Zellis UK Ltd via call-off from Crown Commercial Services Framework RM 3821 Data and Applications Solutions, moving to the Human Capital Management (HCM) Cloud platform, to ensure the continuity and resilience of the councils human resources and payroll software.

The Committee approved a direct award to Zellis UK Ltd via call-off from Crown Commercial Services Framework RM 3821 Data and Applications Solutions for a period of seven years, commencing 29th April, 2022 until 28th April, 2029.

V COMMON GOOD FUND REVENUE BUDGET 2022/2023

There was submitted Report No 111-2022 by the Executive Director of Corporate Services providing details of the Council's Common Good Fund Revenue Budget for 2022/2023 and making recommendations for the disbursement of funds for the financial year.

The Convener, seconded by Councillor Dawson, moved approval of the undernoted recommendations in the report on the basis that officers would also engage with West End Blethers Cafe, as a matter of urgency, to identify potential funding streams to support their organisation:-

(i) approve the Common Good Fund 2022/2023 Revenue Budget as detailed in Appendix A of the report;

(ii) note that the available balance will be distributed as follows:

(iii) approve that the Executive Director of Corporate Services be delegated to approve any awards made through the Dundee Partnership that would first be subject to an assessment through the established process.

As an amendment Bailie Wright, seconded by Bailie Macpherson, moved that recommendation 2.2 be deleted and replaced with the following:-

2.2, Agree that the available balance will be distributed as follows: Festive Fund 20k Blood Transfusion Service and Festival of Remembrance 3k West End Blethers Cafe 10k Dundee Partnership 67k Total 100k.

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

VI REVENUE MONITORING 2021/2022

There was submitted Report No 102-2022 by the Executive Director of Corporate Services providing members with an analysis of the 2021/2022 projected revenue outturn as at 28th February, 2022 monitored against the adjusted 2021/2022 Revenue Budget.

The Committee:-

(i) noted that the overall General Fund, as at 28th February, 2022, was projecting an underspend of 10,965,000 against the adjusted 2021/2022 Revenue Budget;

(ii) noted the position on Covid-related expenditure and Covid funding, as set out in Appendix E and paragraph 3.1 of the report;

(iii) noted that the Housing Revenue Account, as at 28th February, 2022, was projecting an underspend of 1,196,000 against the adjusted HRA 2021/2022 Revenue Budget;

(iv) agreed that the Council Management Team would take every reasonable action to ensure that the 2021/2022 revenue expenditure was below or in line with the adjusted Revenue Budget;

(v) instructed the Executive Director of Corporate Services, in conjunction with the Council Management Team, to continue to monitor the Councils 2021/2022 projected revenue outturn to assist with the cost pressures resulting from Covid-19; and

(vi) noted the current position on Leisure & Culture Dundee, as set out in paragraph 7.3 of the report and noted the Councils ongoing financial support to offset the impact of Covid-19 on Leisure & Culture Dundee through to at least 31st March, 2023.

VII CAPITAL EXPENDITURE MONITORING 2021/2022

There was submitted Report No 105-2022 by the Executive Director of Corporate Services appraising members of the latest position regarding the Council's Capital Plan 2022/2027.

The Committee noted the latest position regarding the Council's Capital Plan 2022/2027.

Vlll LOCAL AUTHORITY COVID ECONOMIC RECOVERY FUND

There was submitted Report No 126-2022 by the Executive Director of Corporate Services recommending how the Council should allocate its share of the Scottish Governments 80m Local Authority COVID Economic Recovery Fund.

The Committee agreed to allocate its 2.32m share of the Local Authority COVID Economic Recovery Funding as follows:-

(i) 800k to implement a third Fuel Well scheme that targeted support at those in greatest need;

(ii) 400k to provide funding to continue support for food provision across the city;

(iii) 200k to invest in additional resources to support individuals in accessing money and energy advice;

(iv) 500k to support a business recovery scheme; and

(v) 420k to be held as contingency to allocate in the light of demand for the above proposals or new pressures.

The Committee also agreed to delegate to the Chief Executive the authority to finalise the above schemes and take the necessary steps to implement them at the earliest opportunity.

IX DUNDEE HEALTH AND SOCIAL CARE INTEGRATION SCHEME

There was submitted Report No 81-2022 by the Chief Executive advising that The Public Bodies (Joint Working) (Scotland) Act 2014 required that Integration Schemes were subject to review every five years from the date of approval by Scottish Ministers. This Act required consultation with prescribed individuals and with the public as part of the review process. The report set out the draft revised integration scheme and sought approval to release the draft revised scheme for formal consultation as required by the Act. A report on the formal consultation and consequent impact on the draft revised scheme would be brought back to the Council for final approval before submission to Scottish Ministers.

The Committee noted that, in view of the timescales involved, the Chief Executive, in consultation with the Convener, Labour Group Spokesperson, Conservative Group Spokesperson, Liberal Democrat Group Spokesperson, the Lord Provost the Independent member and the Alba Party member had:-

(i) approved the draft revised Integration scheme to allow for a period of formal consultation;

(ii) noted that the report was also subject to approval by the Board of NHS Tayside;

(iii) delegated authority to the Chief Executive to arrange minor amendments to the Scheme prior to formal consultation if so required; and

(iv) noted that a report on the formal consultation, and consequent impact on the draft revised Scheme, would be brought back to the Council for final approval before submission to Scottish Ministers.

John ALEXANDER, Convener.

At a JOINT MEETING of the PENSION SUB-COMMITTEE of the POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held remotely on 13th December, 2021.

APPENDIX I

Present: -

PENSION SUB-COMMITTEE

BAILIES

COUNCILLORS

PENSION BOARD

Bailie Willie SAWERS, in the Chair.

I DECLARATION OF INTEREST

No declarations of interest were made.

II APOLOGIES

The Sub-Committee and Board noted that no apologies had been received.

III MINUTE OF PREVIOUS MEETING

The minute of meeting of 20th September, 2021 was submitted and approved.

IV APPOINTMENT OF CHAIRPERSON OF PENSION BOARD

Reference was made to Agenda Note AN42-2021 whereby it was agreed by the Sub-Committee and Board that in accordance with the Public Service Pensions Act 2013, Kenny Dick be appointed to the post of Chair of the Pension Board for the period of 12 months.

V RISK REGISTER

There was submitted Report No 341-2021 by the Executive Director of Corporate Services updating the Risk Register for the Tayside Pension Fund.

The Sub-Committee approved the Quarterly Risk Register for Tayside Pension Fund which was updated on 20th September, 2021, and noted that there were no changes to risk profile since the previous report.

VI PENSION ADMINISTRATION PERFORMANCE

 

There was submitted Report No 342-2021 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 OPERATIONAL IMPLICATIONS OF LEGISLATION TO ADDRESS DISCRIMINATION IN LGPS

 

There was submitted Report No 343-2021 by the Executive Director of Corporate Services outlining the operational requirements of implementing the incoming legislation to address age discrimination in the LGPS and advising of the draft timescale of actions to be taken and the additional resources that would be required to implement the remedy the cases that had been identified within Tayside Pension Fund to have been affected.

 

The Sub-Committee and Board noted the content of the report and approved the recruitment of additional resources identified as required for successful implementation.

 

VIII OVERPAYMENTS POLICY

 

There was submitted Report No 344-2021 by the Executive Director of Corporate Services detailing the proposed policy in relation to the recovery of overpayments of pension.

 

The Sub-Committee and Board approved the policy, noting the content of the report.

 

IX TAYSIDE PENSION FUND INTERNAL AUDIT REPORT

 

There was submitted Report No 345-2021 by the Executive Director of Corporate Services submitting to the Sub-Committee and Board the Audit Report prepared by the Funds Internal Auditor, PricewaterhouseCoopers (PwC).

 

The Sub-Committee and Board noted the content of the report on the audit exercise undertaken, and approved the management response.

 

X TREASURY MANAGEMENT ACTIVITY 2021/2022 (MID YEAR REVIEW)

 

There was submitted Report No 346-2021 by the Executive Director of Corporate Services reviewing Tayside Pension Funds Treasury Management activities for the period 1st April, 2021 to 30th September, 2021.

 

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

 

XI PROPOSED TIMETABLE OF MEETINGS FOR 2022

 

There was submitted Report No 347-2021 by the Executive Director of Corporate Services proposing a suggested programme of meetings of the Pension Sub-Committee and Pension Board in 2022.

 

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

 

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

 

XII TAYSIDE PENSION FUNDS

 

(a)                           PERFORMANCE SUMMARIES

 

There was submitted Report No 348-2021 reviewing the investment performance of the Funds Investment Managers for the quarter to 30th September, 2021. The report compared investment performance of the Fund with the Funds specific benchmarks which consisted of various stock and security market indices.

 

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

 

There was submitted Report No 329-2021 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter to 30th September, 2021 and summarising the transactions of each Fund Manager and showing the market values of the Pension 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.

 

(c) QUARTERLY FUNDING UPDATE AS AT 30TH JUNE, 2021

 

There was submitted Report No 349-2021 by the Executive Director of Corporate Services reviewing the current funding level of the Fund as assessed by the Fund Actuary.

 

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

 

XIII SOCIALLY RESPONSIBLE INVESTMENT

 

Reference was made to Article XV of the Minute of Meeting of the Pension Sub-Committee of the Policy and Resources Committee of 21st June 2021 whereby approval was given to Report No 209‑2021 - Socially Responsible Investment.

 

There was submitted Report No 350-2021 by the Executive Director of Corporate Services reviewing the progress by the Fund Managers regarding positive engagement in line with the Policy on Environmental, Social and Corporate Governance.

 

The Sub-Committee and Board noted the information contained within the report with regards to the activities of the Fund Managers during the six-month period ended 30th September, 2021.

 

XIV ANNUAL ASSESSMENT OF INVESTMENT ADVISORY SERVICES 2021

 

There was submitted Report No 351-2021 by the Executive Director of Corporate Services providing information on the annual assessment of investment advisory service performance as required by the Competition and Markets Authority.

 

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

 

XV PROPOSED STRATEGY TO END INVESTMENT IN FOSSIL FUEL COMPANIES NOT STRONGLY COMMITTED TO CARBON REDUCTION

 

There was submitted Report No 352-2021 by the Executive Director of Corporate Services detailing a proposed strategy to end investment in fossil companies that were not committed to reducing carbon emissions.

 

The Sub-Committee and Board approved the proposed strategy and authorised officers to undertake consultation and amend investment policies for subsequent consideration of the Sub-Committee and Board.

 

XVI EXITING EMPLOYER REPORT

 

There was submitted Report No 353-2021 by the Executive Director of Corporate Services detailing a request from Carnoustie Golf Links to exit as employers from Tayside Pension Fund.

 

The Sub-Committee and Board noted the information contained within the report, and approved the request for employer exit as at 31st December, 2021.

 

Thereafter, the Chair, on behalf of the Sub-Committee and Board, Fund and officers thanked Mr Gordon Murray, the employers representative on the Pension Board, for his contribution and service to the Pension Board since its establishment in 2015.

 

XVII EXITING EMPLOYER REPORT

 

There was submitted Report No 357-2021 by the Executive Director of Corporate Services providing information on the exit of Balnacraig School from Tayside Pension Fund as a result of insolvency.

 

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

 

XVIII PRESENTATION

 

Jeremy Podger and David Barbour of Fidelity gave a short presentation to the Sub-Committee and Board.

 

After Ms Podger and Mr Barbour had given their presentation and answered questions from members, the Chair thanked the presenters on behalf of members of the Sub-Committee and Board.

 

 

 

 

Willie SAWERS, Chair.