City Governance Committee - 24/06/2024

At a MEETING of the CITY GOVERNANCE COMMITTEE held remotely on 24th June, 2024.

Present:-

BAILIES

COUNCILLORS

Councillor John ALEXANDER, Convener, in the Chair.

The minute of meeting of this Committee of 10th June, 2024 was held as read.

Unless marked thus * all items stand delegated.

I DECLARATION OF INTEREST

There were no declarations of interest.

II MINUTE OF PENSION SUB-COMMITTEE AND PENSION BOARD

The minute of meeting of the Pension Sub-Committee and Pension Board of 18th March, 2024, was submitted and noted for information and record purposes, a copy of which is attached to this minute as Appendix I.

III SUPPORT FOR FOOD LARDERS AND FOODBANKS

This item was placed on the agenda at the request of Councillor Alexander who asked that Officers explore options for supporting food larders/foodbanks who operated from Dundee City Council buildings in relation to rental charges.

Thereafter, the Committee resolved as follows:-

Committee recognises the incredible amount of work being undertaken in our communities by a range of charities and organisations, to support those most in need in our city.

Dundee City Council has sought to support a variety of workstreams to tackle poverty and the cost-of-living crisis which has included, but is not limited to:-

-                       Pro-actively supporting efforts through the Fairness Leadership Panel.

-                       Providing 400,000 in 2024/2025 to support the Dundee Food Network and 100,000 for wider cost-of-living initiatives.

-                       Convening multiple cost of living summits with key city partners to lead efforts over the winter months to support the citys most vulnerable communities.

In recognising those efforts, Committee recognises that we must also continue to look at all levers at our disposal to support these workstreams.

Therefore, Committee requests that Officers undertake work to identify the organisations solely operating foodbanks and food larders that are currently charged for operating from Dundee City Council premises and bring forward proposals to explore the removal of these charges, as part of our commitment and drive towards alleviating poverty and its effects.

IV COUNCIL PLAN 2022/2027 - PROGRESS REPORT FOR 2023/2024

There was submitted Report No 166-2024 by the Chief Executive, providing the second annual progress report on the Council Plan 2022/2027.

The Committee agreed:-

(i)                     to note the progress made in 2023/2024;

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

(iii)                    to remit the Council Leadership Team to monitor progress and implement improvements as necessary to deliver the outcomes agreed.

V FAIRNESS AND LOCAL CHILD POVERTY ACTION PLAN REPORT - ANNUAL REPORT FOR2023/2024

There was submitted Report No 153-2024 by the Chief Executive presenting the Annual Report for the combined Fairness and Local Child Poverty Action Report showing progress during 2023/2024.  It also highlighted key actions to be taken in 2023/2024.

The Committee agreed:-

(i)                     to approve the Fairness and Local Child Poverty Action Plan Annual Report for 2023/2024 as detailed in Appendix 1 to the report; and

(ii)                    to approve the actions as set out for the next phase of the Action Plan from 2024/2025 onwards.

VI NATIONAL CARE SERVICE UPDATE

There was submitted Report No 141-2024 by the Chief Executive, updating the Committee about the latest developments in relation to proposals for a National Care Service.

Thereafter, the Convener, seconded by Bailie Sawers, moved the following:-

(i)                     to note that the National Care Service (Scotland) Bill has passed Stage 1 of the Scottish Parliaments legislative process and will now move to detailed consideration by the lead Parliamentary Committee at Stage 2;

(ii)                    to note that the Scottish Government has indicated some significant changes that they propose to make to the Bill, but much of the detail of how the National Care Service will operate, and the implications of this for local authorities, still remains to be decided. There remains some distance between the positions of Ministers and COSLA Leaders on aspects of the proposed legislation;

(iii)                    to note the updates on discussions which are taking place between the Scottish Government, Local Government, and the NHS about both the governance aspects of the proposed National Care Service and the wider social care issues which the National Care Service (Scotland) Bill aims to address; and

(iv)                   to note that update reports will continue to be submitted to Committee as further details emerge and as any decisions are required.

As an amendment, Councillor Coleman, seconded by Councillor Duncan, moved that the Committee approve the report subject to:-

(i)                     Additional recommendation at para 2.1 to read:-

(e)                    support the aim of delivery of high standard social care across Scotland but believe that such services are best organised and delivered by properly funded local authorities not by the centralised quango that would be created by the establishment of the proposed National Care Service.

On a division, there voted for the motion - the Convener, Lord Provost Campbell, Depute Lord Provost Cordell, Bailies Dawson, Roberts, Sawers, Keenan and Wright and Councillors Anderson, Flynn, Hunter, Lynn, Rome, Short, Smith, Tolland, Cruickshank, Finnegan, McHugh, Malone, Scullin, Shears (22); and for the amendment - Bailie Macpherson, Councillors Coleman, Crichton and Duncan (4) - whereupon the motion was declared carried and the report was approved.

VII LOCAL CODE OF CORPORATE GOVERNANCE

There was submitted Report No 162-2024 by the Executive Director of Corporate Services, presenting to Committee 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 to the report;

(ii)                    to note the progress against the 2023/2024 improvement action plan as detailed in Appendix 2 to the report;

(iii)                    to approve the areas for improvements listed in Appendix 3 for 2024/2025 in the report; and

(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 to the report.

VIII COMMUNITY WEALTH BUILDING IN DUNDEE - PROGRESS UPDATE

There was submitted Report No 179-2024 by the Executive Director of Corporate Services, providing a progress update on the development of the Community Wealth Building (CWB) in Dundee and highlighting the priorities looking forward.

The Committee agreed:-

(i)                     to note the information included within the report including the high-level update from the current action plan as detailed in Appendix 1 to the report and the next steps outlined in paragraph 8 to the report; and

(ii)                    that the draft CWB Charter as detailed in Appendix 2 to the report be submitted to Dundee Partnership Management Group for approval with a proposed recommendation that this is remitted to the Inclusive Economic Growth Strategic Leadership Group (IEGSLG) to deliver and review progress.

IX CUSTOMER SERVICES AND IT - SCHOOL CLOTHING GRANTS

There was submitted Report No 176-2024 by the Executive Director of Corporate Services, recommending an increase in Dundee City Council's School Clothing Grant payments based on the inflationary uplift in the 2024/2025 Local Government Budget Settlement.

The Committee agreed to approve an increase of 5 for every eligible pupil with payment to be made in July, 2024 in time for academic year 2024/2025.

X IT SECURITY FOR LAPTOPS

There was submitted Report No 177-2024 by the Executive Director of Corporate Services, seeking approval for the purchase of licenses for security of laptops and tablet devices.

The Committee agreed:-

(i)                     to the purchase of licenses for the security system; and

(ii)                    to delegate authority to the Head of Customer Services and IT to purchase licenses required for the security system.

XI PROCUREMENT OF ATTAINMENT AND PROGRESS TRACKING SOFTWARE

There was submitted a Joint Report No 181-2024 by the Executive Directors of Children and Families Service and Corporate Services, providing an update on the development of a sourcing strategy for the tender process for Attainment and Progress Tracking software and to seek approval to commence a compliant tender process, leading to the award of a contract.

Thereafter, the Convener, seconded by Bailie Sawers, moved the following:-

(i)                     to approve the commencement of a procurement exercise in respect of the project, as detailed in the report, based on the sourcing strategy, summarised in the report;

(ii)                    to delegate authority to the Executive Director of the Children and Families Service to award a contract to the successful bidder, following a tender process carried out in compliance with the Public Contracts (Scotland) Regulations of 2015; and

(iii)                    to approve expenditure on the project to the total value described in 3.1 to the report.

As an amendment, Bailie Macpherson, seconded by Councillor Crichton, moved approval of the report subject to the undernoted:-

Delete in Recommendations 2.1 -

(i)                     second bullet point that commences Delegates authority to the Executive Director of Children and Families service to ... and replace with:

            instructs the Executive Director of Children and Families Service to report back to this Committee on the outcome of the procurement exercise and give a recommendation to Elected Members to allow members to make a contract award.

On a division, there voted for the motion - the Convener, Lord Provost Campbell, Depute Lord Provost Cordell, Bailies Dawson, Roberts and Sawers, and Councillors Anderson, Flynn, Hunter, Lynn, Rome, Short, Smith, Tolland, (14); and for the amendment - Bailies Keenan, Wright and Macpherson and Councillors Cruickshank, Finnegan, McHugh, Malone, Scullin, Shears, Crichton and Duncan (11) - whereupon the motion was declared carried and the report was approved.

XII PROCUREMENT OF RENTAL, SERVICE AND MAINTENANCE OF - GYM EQUIPMENT (MANAGEDSERVICE)

There was submitted Joint Report No 175-2024 by the Chief Executive and Executive Director of Children and Families Service providing an update on the development of a sourcing strategy for the tender process for Rental, Service and Maintenance of Gym Equipment and to seek approval to commence a compliant tender process, leading to the award of a contract.

The Committee agreed:-

(i)                     to approve the commencement of a procurement exercise in respect of the project described in the report, based on the sourcing strategy, summarised in the report; and

(ii)                    to note the outcome of the tender would be brought back to Committee for approval in due course.

XIII ESTABLISHMENT OF RECESS SUB-COMMITTEE

Reference was made to Agenda Note ( AN15-2024) where it was reported that the Council's Recess would commence on Saturday, 29th June, 2024 and end on Saturday, 10th August, 2024.

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.

The Committee agreed to the establishment of a Recess Sub-Committee as proposed 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.

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

The Committee also noted, notwithstanding the above, that it may be necessary in view of its quasi-judicial nature to arrange meetings of the Personnel Appeals Sub-Committee.

XIV VALEDICTORY -

 

The Convener, on behalf of the Council, paid tribute to Jacqui Kopel - Head of Customer Services and IT, upon her retiral and wished her well for the future.

 

 

 

 

John ALEXANDER, Convener.

 

At a JOINT MEETING of the PENSION SUB-COMMITTEE of the CITY GOVERNANCE COMMITTEE AND THE PENSION BOARD held remotely on 18th March, 2024 .

 

Present:-

 

PENSION SUB-COMMITTEE

 

BAILIE Kevin KEENAN

 

COUNCILLORS

 

Ken LYNN

Dorothy McHUGH

Michael CRICHTON

Steven ROME

 

PENSION BOARD

 

Bill DUFF	Stewart DONALDSON	Arthur NICOLL
George RAMSAY		Kenny DICK

 

Councillor Steven ROME, in the Chair.

 

I DECLARATION OF INTEREST

 

No declarations of interest were made.

 

II APOLOGIES

 

The Sub-Committee and Board noted apologies had been received from Bailie Sawers, Claire Shepherd and Raymond Boyd.

 

III MINUTE OF PREVIOUS MEETING

 

The minute of meeting of 11th December, 2023 was submitted and approved.

 

IIIa CHAIR OF PENSION BOARD

 

There was submitted Agenda Note AN9-2024 advising that in accordance with the Public Service Pensions Act 2013, the Sub-Committee were asked to seek nominations for the post of Chair of the Pension Board for the period of 12 months. The post of Chair of the Pension Board was subject to annual change by the regulations.

 

The Sub-Committee and Board agreed that Councillor Bill Duff be Chair of the Pension Board for this period.

 

IV TAYSIDE PENSION FUNDS RISK REGISTER

There was submitted Report No 89-2024 by the Executive Director of Corporate Services seeking approval for the Quarterly Risk Register for Tayside Pension Fund which was updated on 13th February, 2024, noting the changes to risk profile since the previous report.

The Sub-Committee and Board:-

(i)         approved the Quarterly Risk Register for Tayside Pension Fund, noting the following revision made:

Risk 17 Lack of expertise on Pension Committee, Pension Board or amongst officers.

V TAYSIDE PENSION FUND PROCUREMENT POLICY

There was submitted Report No 71-2024 by the Executive Director of Corporate Services setting out the minimum standard 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 are outsourced to third parties.

The Sub-Committee and Board:-

(i)         approved the policy noting that it was subject to annual review and that there were no changes.

VI PENSION ADMINISTRATION PERFORMANCE QUARTERLY UPDATE TO31ST DECEMBER, 2023

There was submitted Report No 73-2024 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:-

(i)         noted the content of the report.

VII TAYSIDE PENSION FUND AUDIT SCOTLAND ANNUAL AUDIT PLAN 2023/24

There was submitted Report No 74-2024 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 2023/24.

The Sub-Committee and Board:-

(i)         noted the content of the report; and

(ii)         agreed to 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.

 

There was submitted Report No 75-2024 by the Executive Director of Corporate Services setting out the risk assessment undertaken by PwC and detailing their internal audit plans for Tayside Pension Fund for 2024/25.

 

The Sub-Committee and Board:-

 

(i)         agreed to review and approve the Internal Audit plan by PricewaterhouseCoopers (PwC) as detailed in appendix A of the report.

 

IX TAYSIDE PENSION FUND INTERNAL AUDIT REPORTS PENSIONS ADMINISTRATION &LIQUIDITY

There was submitted Report No 76-2024 by the Executive Director of Corporate Services submitting the Audit Reports prepared by the Funds Internal Auditor, PricewaterhouseCoopers (PwC).

The Sub-Committee and Board:-

(i)         noted the content of the report on the audit exercises undertaken and approved the management response.

X TREASURY POLICY STATEMENT 2024/25

There was submitted Report No 77-2024 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:-

(i)         approved the policies and procedures laid out in the Treasury Policy Statement 2024/25, noting that the Treasury Policy Statement must be reviewed annually, and that there were no changes.

XI TREASURY MANAGEMENT STRATEGY 2024/2025

There was submitted Report No 78-2024 by the Executive Director of Corporate Services seeking agreement for reviewing the Treasury Management Strategy for Tayside Pension Fund.

The Sub-Committee and Board:-

(i)         agreed to review the Treasury Management Strategy for Tayside Pension Fund.

XII PENSION ADMINISTRATION STRATEGY

There was submitted Report No 79-2024 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:-

(i)         agreed to approve the strategy contained within, noting that there were no changes.

XIII TAYSIDE PENSION FUND COMMUNICATION POLICY

There was submitted Report No 80-2024 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:-

(i)         approved the revised Communications Policy which had been reviewed in conjunction with the Funds Administration Strategy, noting the increase of de minimis value of change of monthly pension benefit of over 10, where a pension member would be issued with an additional payslip. This change was in line with other Scottish LGPS Funds.

XIV ENVIRONMENTAL, SOCIAL & CORPORATE GOVERNANCE POLICY

There was submitted Report No 81-2024 by the Executive Director of Corporate Services reviewing Tayside Pension Funds Environmental, Social & Corporate Governance Policy.

The Sub-Committee and Board:-

(i)         approved the policy and noted that there were no changes.

XV TAYSIDE PENSION FUND ACTUARIAL VALUATION

 

There was submitted Report No 82-2024 by the Executive Director of Corporate Services updating the Sub-Committee and Board on the Actuarial Valuation of Tayside Pension Fund at 31st March, 2023.

 

The Sub-Committee and Board:-

 

(i)         noted the information contained within the report and approved the actuarial recommendations contained in Appendix A to the report.

 

XVI FUNDING STRATEGY STATEMENT 2024

There was submitted Report No 83-2024 by the Executive Director of Corporate Services reviewing the Funding Strategy Statements for the Tayside Pension Fund.

The Sub-Committee and Board:-

(i)         noted that the Funding Strategy Statement was required to be reviewed annually, and approved the Statement, noting an amendment to the cessation approach following the strong rise in gilt yields since the end of 2022. The calculation method had been reviewed and adjustments had been made to the stochastic approach including a reduction of the probability limit of a deficit arising from 20% to 15%.

XVII STATEMENT OF INVESTMENT PRINCIPLES REVIEW

There was submitted Report No 84-2024 by the Executive Director of Corporate Services reviewing the Statement of Investment Principles for Tayside Pension Fund.

The Sub-Committee and Board:-

(i)         noted the information within the report, noting the changes to benchmark in Appendix C effective from 1st April, 2024; and approved the Statements of Investment Principles contained in Appendix 1.

XVIII TAYSIDE PENSION FUND BUSINESS PLAN 2024/2025

There was submitted Report No 85-2024 by the Executive Director of Corporate Services introducing the annual business plan for the Tayside Pension Fund.

The Sub-Committee and Board:-

(i)         noted the information within the report and approved the 2024/2025 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 TAYSIDE PENSION FUND

(a)        TAYSIDE PENSION FUND PERFORMANCE SUMMARY

There was submitted Report No 86-2024 by the Executive Director of Corporate Services reviewing the investment performance of the Funds investment managers for the quarter to 31st December, 2023. 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:-

(i)         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 TO 31ST DECEMBER 2023

There was submitted Report No 69-2024 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter 1st October to 31st December, 2023 and summarising the transactions of each Fund Manager and showing the market values of the Pension Fund.

The Sub-Committee and Board:-

(i)         noted the information contained therein with regard to the performance of the Tayside Main Fund and their Fund Managers.

(c)        SECURITIES LENDING 6 MONTH ACTIVITY TO 31ST DECEMBER, 2023

There was submitted Report No 87-2024 by the Executive Director of Corporate Services presenting an update on Securities Lending activity for the period ended 31st December, 2023.

The Sub-Committee and Board:-

(i)         agreed to note the content of the report.

 

A verbal update was given by the Service Manager, Financial Services on the Alternative Investment Mandate Procurement Exercise.

 

The Sub-Committee and Board:-

 

(i)         noted the position.

 

XXI ANNUAL PERFORMANCE REVIEW TO 31ST DECEMBER, 2023

 

There was submitted Report No 88-2024 by the Executive Director of Corporate Services considering the Isio report Annual Review of Investment Performance 2023 completed in February 2024.

 

The Sub-Committee and Board:-

 

(i)         noted the content of the Isio report in Appendix A to the report.

 

XXII PRESENTATION

 

Sarah Cockburn Olivia Docker and Lucie Liss from Schroders gave a short presentation to the Sub‑Committee and Board.

 

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

 

 

 

 

Steven ROME, Chair.