Policy And Resources Committee - 27/06/2022

At a MEETING of the POLICY AND RESOURCES COMMITTEE held remotely on 27th June, 2022.

Present:-

BAILIES

COUNCILLORS

The minute of meeting of this Committee of 13th June, 2022 was held as read.

Unless marked thus * all items stand delegated.

Councillor John ALEXANDER, Convener, in the Chair.

I DECLARATION OF INTEREST

There were no declarations of interest.

II MINUTES

(a) PENSION SUB-COMMITTEE AND PENSION BOARD - 21ST MARCH, 2022

The minute of meeting of the Pension Sub-Committee and Pension Board of 21st March, 2022, a copy of which is appended hereto, was submitted for information and record purposes (Appendix l).

III CONSULTATION ON REVISED INTEGRATION SCHEME

There was submitted Report No 167-2022 by the Chief Executive providing information on the outcome of public consultation on a draft revised Integration Scheme and seeking approval of the revised Integration Scheme for Dundee to allow submission for final approval by Scottish Ministers as required by the Public Bodies (Joint Working) (Scotland) Act 2014.

The Committee agreed:-

(i) to note the Consultation Summary as detailed in Appendix 1 of the report and the follow‑up actions that had been addressed;

(ii) to approve the final Dundee revised Integration Scheme as detailed in Appendix 2 of the report for submission to Scottish Ministers (subject to approval by NHS Tayside Board); and

(iii) to note that further technical changes may be required by the Scottish Government prior to approval by Scottish Ministers, and it was recommended that these changes were addressed before publication on the final scheme.

IV LOCAL CODE OF CORPORATE GOVERNANCE

There was submitted Report No 140-2022 by the Executive Director of Corporate Services presenting the Council's Local Code of Corporate Governance.

The Committee agreed:-

(i) to approve the annual compliance review and updated Local Code of Corporate Governance as detailed in Appendix 1 of the report;

(ii) to note the progress against the 2021/2022 improvement action plan as detailed in Appendix 2 of the report;

(iii) to approve the areas for improvements listed in Appendix 3 of the report for 2022/2023;

(iv) to note the progress against the seven core principles of good governance from the CIPFA/SOLACE Delivering Good Governance in Local Government Framework (2016) listed in Appendix 4 of the report; and

(v) to note the impact of the coronavirus pandemic on the Councils governance arrangements as detailed in paragraphs 5.5. and 5.6 of the report.

V REDUCING HARM ASSOCIATED WITH DRUG USE

There was submitted Report No 188-2022 by the Chief Executive following the publication of the update report from the Dundee Drug Commission in March, 2022, providing an update on the priority areas for improvement and progress to develop a replacement strategic framework and delivery plan for drug and alcohol recovery.

The Committee agreed:-

(i) to note the key areas of progress achieved over the last two years in reducing harm associated with drug use as detailed in sections 4.1.2 to 4.1.4 of the report;

(ii) to note the findings contained within the Dundee Drug Commission Update report and Statement of Intent from Dundee Partnership leaders as detailed in section 4.2 and Appendices 1 and 2 of the report;

(iii) to note the immediate priority areas for improvement identified by the Alcohol and Drugs Partnership as detailed in sections 4.2.4 to 4.2.6 of the report;

(iv) to note that the Dundee Partnership would consider on 22nd June, 2022 the proposals for the co-production and publication of a replacement strategic framework and delivery plan for drug and alcohol recovery as detailed in section 4.3 of the report;

(v) to note that the Dundee Partnership would consider on 22nd June, 2022, a range of ongoing improvement activity and future commitments that, following further consultation and refinement, would be incorporated into the replacement strategic framework and delivery plan for drug and alcohol recovery as detailed in section 4.3 and Appendix 3 of the report; and

(vi) to instruct the Chief Executive to submit the replacement strategic framework and delivery plan to the Policy and Resources Committee following approval by the Dundee Partnership.

VI INVESTING IN SCOTLANDS FUTURE - RESOURCE SPENDING REVIEW

There was submitted Report No 171-2022 by the Executive Director of Corporate Services advising of the outcome of the Scottish Governments Resource Spending Review.

The Committee agreed:-

(i) to note the outcome of the Scottish Governments Resource Spending Review;

(ii) to remit the Executive Director of Corporate Services to update the Council's medium and long-term financial plans and report back to the Committee after Summer recess;

(iii) to note that officers were developing the Councils transformation plans and these would be reported to a future meeting of the Committee; and

(iv) to note that the Councils People Strategy was being updated and would be presented to a future meeting of the Committee.

VII BUDGET INVESTMENT PROPOSALS

On a reference to Article II of the minute of meeting of this Committee of 24th February 2022, there was submitted Report No 170-2022 by the Executive Director of Corporate Services recommending how the investment proposals, agreed in the 2022/2023 Budget, would be allocated.

The Committee agreed the allocations and purposes as detailed in Appendix 1 of the report and authorised the lead Officers indicated to take the necessary steps to implement the proposals.

VIII PROVISION OF DEBT RECOVERY SERVICES

There was submitted Report No 165-2022 by the Executive Director of Corporate Services recommending the award of contract to Scott & Co (Scotland) LLP via direct award off the Scotland Excel Framework Agreement 06-19: Provision of Debt Recovery and Sheriff Officers Services to assist in the recovery process for Council Tax, Housing Benefit Overpayments, Former Tenant Arrears, Non‑Domestic Rates, Sales Ledger and Penalty Charge Notice debts.

The Committee agreed the award of contract to Scott & Co (Scotland) LLP via direct award off the Scotland Excel Framework to deliver Debt Recovery Services for a period of up to three years from 1st August, 2022 with the option to extend for a further period of two years, subject to satisfactory performance.

IX IT CAPITAL EXPENDITURE

There was submitted Report No 166-2022 by the Executive Director of Corporate Services notifying 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 agreed:-

(i) to note the IT capital purchases amounting to 549,780 as detailed in Appendix 1 of the report. This covered the period 1st April, 2021 to 31st March, 2022; and

(ii) to note forecasted IT capital purchases of 1.66M for the period 1st April, 2022 to 31st March, 2023 as detailed in Appendix 2 of the report.

X CORPORATE IT NETWORK UPGRADE

There was submitted Report No 169-2022 by the Executive Director of Corporate Services on the purchase of new network hardware to replace ageing equipment that provided essential IT connections across many Council buildings.

The Committee agreed:-

(i) to the purchase of new network hardware; and

(ii) to remit the Head of Customer Services and IT to purchase network hardware to be compliantly procured through NHS Digital Workplace Solutions framework.

XI ADVICE STRATEGY FOR DUNDEE

There was submitted Report No 164-2022 by the Executive Director of Corporate Services presenting the Advice Strategy for Dundee for approval.

The Committee agreed:-

(i) to approve the Advice Strategy for Dundee 2022/2024;

(ii) to note the content of the initial Advice Strategy for Dundee as detailed in Appendix 1 of the report; and

(iii) to note the intention of Dundee City Council Advice Services (DCAS) to partner with Brooksbank Centre and Services (Brooksbank), Dundee Citizens' Advice Bureau (CAB) and SCARF to sign up to the advice strategy goals, with scope for more locally based advice agencies to commit to the advice strategy over time.

XII CHIEF EXECUTIVES SERVICE PLAN 2021/2024 - PROGRESS REPORT FOR 2021/2022

On a reference to Article IV of the minute of meeting of this Committee of 7th June, 2021, there was submitted Report No 142-2022 by the Chief Executive, providing an update on progress made during financial year 2021/2022 in relation to the Chief Executive's Service Plan 2021/2024.

The Committee agreed to review and approve the Service Plan progress report appended to the Report.

XIII BREXIT UPDATE

There was submitted Report No 147-2022 by the Chief Executive providing an update on the latest issues, risks and opportunities arising from the UKs departure from the European Union.

The Committee agreed:-

(i) to remit the Head of Chief Executives Service to continue to publicise the European Union's Settlement Scheme, with a particular focus on assisting those with pre-settled status to secure full settled status in the UK;

(ii) to note the updates included in the report, including the updated risk and opportunities register as detailed in Appendix 1 of the report; and

(iii) to remit the Executive Director of City Development to continue to explore opportunities to secure funding to replace the European funds which supported initiatives in Dundee, and update elected members.

XIV PERIOD PRODUCTS (FREE PROVISION) (SCOTLAND) ACT 2021

There was submitted Joint Report No 159-2022 by the Executive Director of Children and Families Service and Head of Chief Executive's Service providing an update on the requirements placed on Dundee City Council by the Scottish Governments Period Products (Free Provision) (Scotland) Act 2021 and how Dundee City Council would implement these.

The Committee agreed:-

(i) to note and approve the contents of the report, including the feedback from consultations; and

(ii) to remit the Head of Chief Executives Services and the Executive Director Children and Families Service to implement the proposals set out in section 7.0 of the report.

XV DUNDEE CLIMATE FUND - DELIVERING COMMUNITY CHOICES THROUGH PARTICIPATORY BUDGETING

There was submitted Joint Report No 174-2022 by the Executive Director of City Development and Executive Director of Neighbourhood Services informing of the proposed structure and operation of the Dundee Climate Fund Community Choices exercise, which was the first Scottish Local Authority led green Participatory Budget (PB), and seeking agreement to proceed to implementation and delivery of the Dundee Climate Fund over the next four years.

The Committee agreed:-

(i) to endorse the Dundee Climate Fund proposal as set out in sections 4.2 to 4.4 of the report;

(ii) that an internal governance group be established to provide effective fund management with representatives from Communities, Sustainability and Climate Change, Dundee Partnership Team, Finance and Legal as detailed in section 4.5.1 of the report;

(iii) that a Review Panel consisting of experts in energy, transport, waste, resilience and capacity building be established to review project proposals for eligibility, feasibility and deliverability as detailed in section 4.5.2 of the report; and

(iv) that the final decision on spend would be made by public vote and delegated authority on proposed distribution of funding to the Executive Directors of Corporate Services and Neighbourhood Services, with a report to Committee on the final spend.

XVI ESTABLISHMENT OF RECESS SUB-COMMITTEE

There was submitted Agenda Note AN29-2022 reporting that the Council's Recess would commence on 2nd July, 2022 and end on 13th August, 2022.

The Convener, seconded by Bailie Dawson, moved that:-

To facilitate the smooth, continuous conduct of the Council's business, it was proposed that a Recess Sub-Committee of the Council be set up to deal with matters of an urgent nature which the Chief Executive or Head of Democratic and Legal Services believed could not wait for the next ordinary meeting of the Committee concerned during that period and that its operating arrangements be as follows:-

(i) Membership - 5 members of the Administration, 3 members of the Labour Group and 1 member of the Liberal Democrat Group;

(ii) Chair - Leader of the Administration or nominee;

(iii) Substitutes - in terms of Standing Order No 45(3) it shall be competent for substitutions to be intimated and effected for individual meetings;

(iv) Quorum - 3 members;

(v) Dates - to be arranged when required;

(vi) Remit - to deal with any urgent business arising during the recess period; and

(vii) Power - full delegated powers to deal with business laid before it.

Notwithstanding the above, it may be necessary, in view of its quasi-judicial nature, to arrange meetings of the Personnel Appeals Sub-Committee.

As an amendment, Bailie Macpherson, seconded by Councillor Duncan, moved the above, subject to the Membership being on the basis of 7 members of the Administration, 4 members of the Labour Group and 2 members of the Liberal Democrat Group.

On a division, there voted for the motion - the Convener, Lord Provost Campbell, Depute Lord Provost Cordell, Bailies Dawson, Sawers, Keenan, Wright, and Scott and Councillors Anderson, El-Nakla, Flynn, Hunter, Lynn, Rome, Short, Smith, Tolland, Cruickshank, Finnegan, McHugh, McIrvine, Scullin and Shears (23); and for the amendment - Bailie Macpherson and Councillors Coleman, Crichton and Duncan (4) - whereupon the motion was declared carried.

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 21st March, 2022.

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 made from Councillor McIrvine.

III MINUTE OF PREVIOUS MEETING

The minute of meeting of 13th December, 2021 was submitted and approved.

IV RISK REGISTER

There was submitted Report No 82-2022 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 the following changes to risk profile since the previous report:-

- Equity Risk (No 10) The risk of financial loss to the fund caused by substantial market sector falls.

- Active Manager Risk (No 11) - The risk of financial loss to the fund caused by investment manager underperformance.

The risk likelihood of these risks materialising in the short-term had increased due to current global events and extreme market volatility. Fund officers remain in close communication with investment managers in addition to existing performance monitoring.

V PROCUREMENT POLICY

There was submitted Report No 101-2022 by the Executive Director of Corporate Services introducing a formal Procurement Policy for Tayside Pension Fund. The policy set out the minimum standards and requirements for managing outsourcing and third party service providers across the key stages of the outsourcing lifecycle, and the criteria for assessing value for money of the functions and activities that were outsourced to third parties.

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

VI TAYSIDE PENSION FUND TRAINING PLAN 2022/2023

There was submitted Report No 83-2022 by the Executive Director of Corporate Services presenting Tayside Pension Funds Training and Attendance Policy which was subject to annual review and the Training Plan for 2022/2023.

The Sub-Committee and Board approved the Training Plan for 2022/2023 contained in the report, noting that due to the continuing challenges as a result of Covid-19, there were aspects of the training requirements of 2021/2022 that had not been fully achieved. These had been carried forward to the 2022/2023 plan.

VII PENSION ADMINISTRATION PERFORMANCE - QUARTERLY UPDATE TO 31ST DECEMBER, 2021

There was submitted Report No 84-2022 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.

VIII TAYSIDE PENSION FUND AUDIT SCOTLAND ANNUAL AUDIT 2021/2022 PLAN

There was submitted Report No 85-2022 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 2021/2022.

The Sub-Committee and Board agreed to:-

(i) note the content of the report by Audit Scotland (Appendix 1); and

(ii) provide Audit Scotland with confirmation of any instances of actual, suspected or alleged fraud, as a requirement of the revised International Standard on Accounting (ISA) 240.

IX INTERNAL AUDIT RISK ASSESSMENT AND AUDIT PLAN 2022/2023

There was submitted Report No 86-2022 by the Executive Director of Corporate Services setting out the risk assessment undertaken by PwC and details their internal audit plans for Tayside Pension Fund for 2022/2023.

The Sub-Committee and Board reviewed and approved the Internal Audit plan by PricewaterhouseCoopers (PwC) as detailed in appendix A to the report.

X TAYSIDE PENSION FUND INTERNAL AUDIT REPORT - RISK MANAGEMENT AND REGULATORY COMPLIANCE REVIEW

There was submitted Report No 87-2022 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.

XI TAYSIDE PENSION FUND INTERNAL ANNUAL AUDIT REPORT 2021/2022

There was submitted Report No 88-2022 by the Executive Director of Corporate Services submitting to the Sub-Committee and Board the Annual Audit Report for 2021/2022 prepared by the Funds Internal Auditor, PricewaterhouseCoopers (PwC).

The Sub-Committee and Board noted the content of the Annual Report as well as the content of the appended reports on specific audit exercises undertaken, and approved the management response.

XII TREASURY POLICY STATEMENT 2022/2023

There was submitted Report No 89-2022 by the Executive Director of Corporate Services revising the Funds Treasury Policy Statement which was intended to govern all treasury activities carried out by Tayside Pension Fund.

The Sub-Committee and Board approved the policies and procedures laid out in the attached Treasury Policy Statement 2022/2023. The Treasury Policy Statement would require to be reviewed annually.

XIII TREASURY MANAGEMENT STRATEGY 2022/2023

There was submitted Report No 90-2022 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.

XIV PENSION ADMINISTRATION STRATEGY

There was submitted Report No 91-2022 by the Executive Director of Corporate Services setting out the Funds policy in respect of the standards required of both the Fund and the participating employers to ensure that statutory obligations were met and also to demonstrate effective and efficient service delivery. The strategy contained a variety of performance measures against which the Fund and participating employers were assessed, with performance reported to the Committee.

The Sub-Committee and Board approved the strategy contained within the report, noting that there were no changes.

XV TAYSIDE PENSION FUND COMMUNICATION POLICY

There was submitted Report No 92-2022 by the Executive Director of Corporate Services presenting a communications policy as required by the Local Government Pension Scheme (Scotland) Regulations 2014.

The Sub-Committee and Board approved the revised Communications Policy which had been reviewed in conjunction with the Funds Administration Strategy, noting the change in relation to telephone communications following the Contact Centre implementation, and the Member Self-Service Portal.

XVI REVISED ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE POLICY

There was submitted Report No 93-2022 by the Executive Director of Corporate Services proposing a revision to the Fund's current policy on Socially Responsible Investment (Article VI of the Minute of Meeting of the Pension Sub-Committee of the Policy and Resources Committee of 21st June, 2021, Report No 198-2021 refers).

The Sub-Committee and Board approved the revised Environmental, Social and Corporate Governance Policy for the Tayside Pension Fund (Appendix 1 to the report), noting the additional measures now incorporated into this revised policy in relation to investment in fossil fuel companies.

XVII STATEMENT OF INVESTMENT PRINCIPLES REVIEW

There was submitted Report No 94-2022 by the Executive Director of Corporate Services reviewing Statement of Investment Principles for Tayside Pension Fund.

The Sub-Committee and Board noted the information within the report and approved the Statements of Investment Principles contained in Appendix 1 to the report.

XVIII TAYSIDE PENSION FUND BUSINESS PLAN 2022/2023

There was submitted Report No 95-2022 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 contained within the report and approved the 2022/2023 Business Plan which applied to the administration and management of the Tayside Pension Fund.

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.

XIX EXITING EMPLOYERS UPDATE

A verbal update was given to members of the Pension Sub-Committee and Pension Board.

XX TAYSIDE PENSION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 96-2022 reviewing the investment performance of the Funds Investment Managers for the quarter to 31st December, 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) TAYSIDE PENSION FUND SUMMARIES OF INVESTMENTS AND TRANSACTIONS 1ST OCTOBER TO 31ST DECEMBER, 2021

There was submitted Report No 97-2022 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter to 31st December, 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 31ST DECEMBER, 2021

There was submitted Report No 98-2022 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.

(d) SECURITIES LENDING 6 MONTH ACTIVITY TO 31ST DECEMBER, 2021

There was submitted Report No 99-2022 by the Executive Director of Corporate Services presenting an update on Securities Lending activity for the period ended 31st December, 2021.

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

XXI ANNUAL PERFORMANCE REVIEW TO 31ST DECEMBER, 2021

There was submitted Report No 100-2022 by the Executive Director of Corporate Services considering the Isio report Annual Review of Investment Performance 2021 completed in February, 2022.

The Sub-Committee and Board noted the content of the Isio report in Appendix A to the report.

XXII PRESENTATION

Jason Freeman, Dominic Solomon and Neil Moge of GSAM gave a short presentation to the Sub‑Committee and Board.

After Mr Freeman, Mr Solomon and Mr Moge 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.