Minutes of Meeting of the Resources Committee held in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Wednesday, 20 February 2008 at 10.30 a.m.
Present
Mrs C Wilson
Mrs P Munro
Mr R Rowantree
Mrs K MacNab
Mr D Flear
Mrs D MacKay
Mr R Greene
Mrs J Urquhart
Mr P Cairns
Mr I Renwick
Mr A Henderson
Mrs H Carmichael
Mrs M Davidson
Mr J MacDonald
Miss J Campbell
Mr N Donald
Mr J Finnie
Mr J Ford
Mr R Wynd
Mr G Marsden
Mr S Park
Mr F D S Black
Mr G Rimell
Non-Members also present:
Mr G Farlow
Mr D Mackay
Mr W Fernie
Mr G Smith
Mr W J Ross
Mrs I Campbell
Mr R Durham
Mrs M Paterson
Mr J Laing
Mr W Clark
Mr D Hendry
Mr J Gray
Mr B Gormley
Officials in attendance:
Mr A B Dodds, Chief Executive
Mr A Geddes, Director of Finance
Mr S Barron, Director of Housing and Property
Ms M Morris, Assistant Chief Executive
Mr D Goldie, Head of Housing
Mr J Batchelor, Head of Personnel, Chief Executive’s Service
Mrs V Nairn, Head of E-Government, Chief Executive’s Service
Mrs C McDiarmid, Head of Policy & Performance, Chief Executive’s Service
Mr B Williams, Head of Corporate Finance, Finance Service
Mr D Robertson, Head of Accounting, Finance Service
Mr D Lamont, Head of Exchequer, Finance Service
Mr A Gunn, Business & Technical Support Manager, Finance Service
Mr G Westwater, Head of Construction, Housing & Property Service
Mr J Grieve, IS Client Manager, Chief Executive’s Service
Mr A Maguire, Head of Housing Development & Estates
Mrs C Christie, Employee Development Manager, Chief Executive’s Service
Mrs K Lackie, Business Manager, Chief Executive’s Service
Ms E Barrie, Personnel Manager, Chief Executive’s Service
Ms R Mackinnon, Equal Opportunities Officer, Chief Executive’s Service
Mr B Mackinnon, Social Inclusion Partnership Manager, Chief Executive’s Service
Mrs S McKandie, Policy & Development Manager, Finance Service
Mrs L Johnstone, Senior IS Client Officer, Chief Executive’s Service
Mr D MacDonald, Principal Administrator, Chief Executive’s Service
Mr A MacInnes, Administrative Assistant, Chief Executive’s Service
Mrs C Wilson in the Chair
1. Apologies for Absence
An apology for absence was intimated on behalf of Mr J Crawford.
2. Fourth Employee Survey Results
There was circulated Report No. res-01-08 dated 8 February, 2008 by the Assistant Chief Executive which provided a brief initial summary of the results of the fourth Employee Survey. It also gave proposals for the next steps. Mr Simon Braunholtz, Managing Director, Scotland of Ipsos MORI, was in attendance to give a presentation on the survey.
By way of summary, it was advised that a good response rate to the survey had been received from all categories of staff and from all locations. There was a decrease in satisfaction with areas such as job security, pay, the management of change and how the Council communicated with staff. There was also a drop in the number of staff who viewed the Council as a good employer. However, there was generally a consistent or improving response to most factors with regard to job, line management and training. Given that the survey was conducted at a time of significant change within the organisation, it was positive that these factors had been maintained. It was important that there was a commitment to acting on the findings of the Survey and to communicating this to staff. There was still a clear perception amongst many staff that the results of the survey did not bring change.
Following a question and answer session, the Chairman on behalf of the Committee thanked Mr Braunholtz for his presentation. Thereafter, the Committee:
i. NOTED the results of the fourth Employee Survey; and
ii. AGREED the proposals for next steps as outlined in Section 6 of the report.
3. Central Services Revenue Budget: 2007/08
There was circulated Reports No. res-02-08 and res-03-08 by the Chief Executive and Director of Finance which provided the Revenue Budget Monitoring Statements for the Chief Executive’s Service and Finance Service for the period to 31 December, 2007.
The Committee NOTED the terms of the reports as circulated.
4. Property Revenue Maintenance Budget 2007/08
There was circulated Report No. res-04-08 dated 12 February, 2008 by the Interim Director of Housing and Property Services which set out the current position with regard to the component parts of the 2007/08 Property Revenue Maintenance Budget. It also noted progress in developing the projects for inclusion in the revenue maintenance programme for 2008/09.
The Committee NOTED:
i. the current position with regard to progress with the 2007/08 Property
Revenue Maintenance Budget; and
ii. that a detailed revenue maintenance programme for 2008/09 would be
reported to Committee on 16 April, 2008 for final approval.
5. Corporate Revenue Monitoring Statement 2007/08
a) Monitoring Statement
There was circulated Report No. res-05-08 dated 4 February, 2008 by the Director of Finance which presented the Corporate Revenue budget monitoring position for the period to 31 December, 2007 on the General Fund and the Housing Revenue Account.
The General Fund statement showed a total annual budget allocated to Services of £471.680m, year to date actual of £323.402m and an estimated year end position of £473.023m. The predicted overspend was £1.342m (0.3% of the total net budget).
The report also showed the Council’s Housing Revenue Account. Although the net budget was zero, the annual expenditure budget totalled £42.575m to be met largely from Council House rents. At this stage in the year it was expected that the Housing Revenue Account would be on target at the year end.
Following discussion, the Committee AGREED:
i. the Revenue Expenditure Monitoring Statement for financial year 2007/08 at
31 December 2007 which showed a predicted overspend of £1.342m; and
ii. the management action being taken to address the anticipated overspends
on the Education, Culture and Sport Service and Social Work Service budgets.
b) Request for a Supplementary Estimate
There was circulated joint Report No. res-06-08 dated 30 January, 2008 by the Director of Education, Culture and Sport and the Director of Finance which invited Members to consider a request from the Education, Culture and Sport Service for a supplementary estimate of £2.09m in 2007/08.
It was advised that the “Out of Authority placements” budget had been under pressure for several years. It was a demand led budget with little opportunity available to reduce expenditure. The Budget Working Group had recognised the problem and the pressure had been built into the 2008/09 budget. In accordance with the Financial Regulations the Director of Education, Culture and Sport in consultation with the Director of Finance had assessed that the Service was in an overspend situation which could not be dealt with by means of virement. A request, fully supported by the Education, Culture and Sport Committee, for a supplementary estimate to meet the assessed deficit was therefore submitted.
Following consideration, the Committee APPROVED a supplementary estimate of £2.09m to the Education Culture and Sport Service.
6. Corporate Capital Monitoring Statements 2007/08
There was circulated Report No. res-07-08 dated 5 February, 2008 by the Director of Finance which provided an overview of the General Fund and Housing Revenue Account Capital Programmes for the period to 31 December, 2007 and the projected year end position.
The General Fund statement showed net expenditure in the year to date of £31.693m. The total net programme was £51.590m. The year end expected outturn position was currently £41.302m resulting in an under spend of £10.288m on the programme for the year.
The report also advised that the current Housing Revenue Account (HRA) capital programme could be delivered as planned.
The Committee AGREED the financial position on the General Fund and HRA Capital Programmes as at 31 December, 2007.
7. Capital Monitoring Statement for Chief Executive’s Service
There was circulated Report No. res-08-08 dated 12 February, 2008 by the Chief Executive which provided information on the capital monitoring position for the Chief Executive’s Service for the period 1 April 2007 to 31 December, 2007. An amended Appendix to the report was tabled at the meeting.
The Committee:
i. AGREED to transfer across £495,000 in the Chief Executive’s budget
allocated to Rose Street Car Park to the Transport, Environmental and
Community Services capital budget; and
ii. NOTED the capital monitoring report for the period 1 April 2007 to 31 December, 2007.
8. Property Capital Monitoring Statement
There was circulated Report No. res-09-08 dated 12 February, 2008 by the Interim Director of Housing and Property Services which set out the current position with regard to the 2007/08 Property Capital Programme.
Following consideration, the Committee:
i. NOTED the current position on allocation and spend within the 2007/2008
Property Capital budget; and
ii. APPROVED adjustments to individual project budgets detailed in the report.
9. Treasury Management: Summary of Transactions
There was circulated Report No. res-10-08 dated 16 January, 2008 by the Director of Finance which provided details of the Treasury Management transactions undertaken for November and December, 2007 which were submitted in compliance with CIPFA’s Code of Practice on Treasury Management and the Council’s approved Financial Regulations.
The Committee NOTED the terms of the report.
10. Treasury Management Strategy Statement – 2008/09
There was circulated Report No. res-11-08 dated 5 February, 2008 by the Director of Finance which set out the recommended strategy for the main aspects of the Council’s Treasury Management function during 2008/09. The Strategy Statement was prepared in accordance with the reporting requirements of the CIPFA Code of Practice on Treasury Management in Local Authorities.
Following consideration, the Committee:
i. APPROVED the Treasury Management Strategy Statement for 2008/09;
ii. NOTED the Prudential Indicators for 2008/09 – 2009/10 previously approved
by Resources Committee on 21 March, 2007 as detailed in Appendix 1 of the report; and
iii. NOTED that the Council was currently reviewing its 2007/08 to 2011/12
capital programme and would consider any consequent implications for
related Prudential Indicators in due course.
11. Progress Report on Implementing the Energy Management Performance Plan
There was circulated Report No. res-12-08 dated 7 February, 2008 by the Head of Policy and Performance which reported on the quarterly progress in implementing the Energy Management Performance Plan (EMPP) for Members consideration and comment. Using the best available data, it was confirmed that there had been a continued decrease in energy consumption and associated CO2 emissions for quarter 2 (July-September) 2007/08. The report also detailed other progress in the implementation of the EMPP.
In discussion, with reference to the top 40 energy consuming buildings the Committee:
• requested that information should be provided to show what had been
achieved in previous years in terms of energy reduction in these buildings;
• requested that the feasibility of linking Wick High School and Swimming Pool
to the Caithness Heat and Power scheme should be considered; and
• was informed that whilst capacity existed for the installation of biomass
technology within Drummuie offices, an options appraisal had resulted in the
installation of an oil based system as the most cost effective system. Any
future replacement of this system would be subject to a further options
appraisal being carried out and would incur additional costs.
Thereafter, the Committee:
i. NOTED current progress against EMPP targets as outlined in the report;
ii. AGREED to continue to take forward the actions in the EMPP and monitor progress;
iii. NOTED that a report on the progress of the EMPP for the full year 2007/08
would be submitted to Resources Committee in August, 2008. At that
time, depending on progress against the overall targets and the
introduction of Climate Change legislation, more stretching targets may
need to be considered;
iv. AGREED to consider the feasibility of linking Wick High School and
Swimming Pool to the Caithness Heat and Power scheme;
v. NOTED that the progress report of the EMPP for the full year 2007/08
should also include the annual change figures in terms of energy use for the
top 40 energy consuming buildings.
12. Fujitsu: Performance Report
There was circulated Report No res-13-08 dated 5 February, 2008 by the Information Systems Client Manager which summarised the performance of the IS Partnership with Fujitsu Services during the period November and December, 2007. It was advised that high levels of service were experienced during the period with all ICT Services delivered within the defined thresholds of the contractual service level agreements.
The report indicated also that the 11 year partnership agreement between Highland Council and Fujitsu Services for the provision of Information and Communication Systems and Services was in its 9th year. Preparations were being made in relation to the future procurement of these Services which would be the subject of reports to Committee in the near future.
The Committee NOTED:
i. the contents of the report; and
ii. that a report would be submitted to a future meeting on progress with
regard to preparation for the future procurement of Information and
Communication Systems and Services for the Council.
13. Minutes of Meetings
The Committee APPROVED the following Minutes of Meetings which had been circulated for confirmation:-
i. Sounding Board of 18 December 2007;
ii. Early Retirement Sub-Committee of 13 December 2007 and 7 February 2008;
iii. Appeals Committee of 12 December 2007 24 and 30 Janaury 2008;
iv. Investment Advisory Group of 10 December 2007;
v. Joint Consultation Group of 6 December 2007; and
vi. Central Safety Committee of 6 December 2007.
14. The Scottish Local Government Forum Against Poverty
The Resources Committee at their meeting on 22 August, 2007 approved the appointment of Mr J MacDonald and Mrs K MacNab to The Scottish Local Government Forum Against Poverty. Mr J MacDonald had intimated that he wished to stand down from representing the Council on this Forum and therefore the Committee was asked to nominate a replacement for Mr MacDonald to the Forum.
The Committee AGREED that Mr J Finnie be appointed to The Scottish Local Government Forum Against Poverty.
15. Introduction of Local Housing Allowance
There was circulated Report No. res-14-08 dated 4 February, 2008 by the Director of Finance which provided information in relation to major reforms to Housing Benefits which would take effect within the deregulated private rented sector from April, 2008.
It was advised that in October, 2002, the Government announced a programme of reform to Housing Benefits, which included the trial of Local Housing Allowance (LHA) in 9 Pathfinder areas. Local Housing Allowance was a reform that would move Housing Benefit from a system that paid people’s rent to one that empowered tenants to exercise choice and responsibility and which was fairer and more transparent. The report set out the fundamental aims of LHA, how it was calculated, how long the award would last and the likely impact of LHA on the Highland area.
An appropriate Safeguard Policy had been prepared which outlined the circumstances in which payment of LHA may be paid directly to the landlord rather than the tenant where they were considered vulnerable under the scheme.
Based on information received from the Scottish Government, it was estimated that the vast majority of benefit claimants would see no change in the amount of benefit they received and indeed many would see an increased entitlement, with only a small proportion of current claimants seeing a decrease. Assurances were provided that the introduction and implementation of the reforms would be closely monitored by the Council and the Department for Work and Pensions, with an update provided to a future meeting of the Committee.
Thereafter, the Committee:
i. NOTED the introduction of Local Housing Allowance with effect from 7 April, 2008;
ii. AGREED to authorise the Head of Exchequer to make all necessary
arrangements for local implementation according to Department for Work
and Pensions requirements; and
iii. NOTED that a report would be submitted to a future meeting reviewing the
introduction of the Local Housing Allowance in Highland.
16. Transitional Funding of Community Regeneration Projects
Declaration of Interest
Mrs K MacNab declared a financial interest in this item as an employee of Pulteneytown People’s Project and left the meeting.
There was circulated Report No. res-15-08 dated 5 February, 2008 by the Head of Policy and Performance which outlined the introduction by the Scottish Government of the Fairer Scotland Fund and noted the need for a planned transition for existing programmes in Highland. It proposed criteria for continuing funding for the existing Community Regeneration Fund for six months in 2008-09 for projects where there was a continuing need; partner funding in place or where activity would take place over the spring or summer period.
Following consideration, the Committee:
i. NOTED that further information and reports would be submitted to
Committee on the Fairer Scotland Fund when Government guidance was
received and proposals were developed for the management of the fund;
ii. AGREED that local Partnerships could extend funding for a period of six
months in 2008/09 of up to 49% of the Community Regeneration Fund
element of the fund or 19% of the new fund for 2008/09 where there was:
• An ongoing need for the project, satisfactory performance and partner
commitment of funding beyond March 2008;
• Staff employed principally on Community Regeneration Funds;
• A need to maintain continuity and plan activities in the short term, i.e. over
the spring and summer sessions.
17. Pathfinder North Progress Update Report
There was circulated Report No. res-16-08 dated 21 January, 2008 by the Head of E-Government which provided an update on progress of the Pathfinder North Broadband Project which would provide high capacity broadband links to schools, libraries and other council buildings throughout the Highlands and Islands.
It was confirmed that a revised rollout strategy had been agreed with Thus plc which would see delivery of the programme within the original two year rollout period to March, 2009. It was expected that the site delivery would be back on schedule in June, 2008.
The Committee NOTED the report and:
i. the revised schedule as part of the Corrective Action Plan;
ii. Site Connection Progress; and
iii. The Financial statements on the overall Pathfinder Project and for Highland Council.
18. Progress Report on Implementing Public Sector Equalities Duties
There was circulated Report No. res-17-08 dated 13 February, 2008 by the Head of Policy and Performance which provided an update on the Council’s progress in meeting its statutory public sector equality duties which were set out in equality schemes and policies covering Disability, Race and Gender.
It was advised that the Council had already taken steps to improve performance with regard to equality in employment and service delivery and recognised that the new duties affected everyone. However, there were a number of immediate and current issues for the Council to maintain a focus on including ensuring services were accessible and equitable, Equal Pay and Job Evaluation, gathering and analysing information, training and awareness raising, equality proofing Council policies and functions and developing measurable outcomes.
It was noted that in 2008 the Council would raise the profile of equalities further and improve implementation of the schemes. By 2009, the Council would consolidate its Equality work in a single Scheme, while recognising the specific requirements of current legislation.
Following consideration, the Committee:
i. NOTED progress made against the current three Equalities Schemes as
summarised in the report and detailed in the appendices;
ii. NOTED that there would be a six monthly equalities progress report to
Resources Committee. Also, statutory progress reports were due for the
gender scheme by end June, 2008 and for the Disability Scheme by end
December, 2008. The Race Equality Scheme was due for a three yearly
review by end November, 2008. The Council had already agreed that
these would be brought together in a Single Equality Scheme for 2009 to
streamline reporting; and
iii. AGREED that the Senior Management Team should scrutinise policy options
and consider performance reports with all recommendations brought to
Resources Committee for consideration.
19. Land at Wick Airport Industrial Estate
There was circulated Report No. res-18-08 dated 12 February, 2008 by the Interim Director of Housing and Property Services seeking approval to commit land in the Highland Council’s ownership at Wick Airport Industrial Estate to the development of a combined National Nuclear Archive and North Highland Archive Centre.
Following consideration, the Committee AGREED in principle to disposing of the Council’s interest in the site at Wick Airport Industrial Estate to the Nuclear Decommissioning Authority and that an agreement be negotiated with the Nuclear Decommissioning Authority which ensured best value for The Highland Council, the terms of which would be reported back to a future meeting of the Resources Committee.
20. Sale of Former Culbokie Primary School
There was circulated Report No. res-19-08 dated 11 February, 2008 by the Interim Director of Housing and Property Services seeking approval to dispose of the former Primary School at Culbokie for community use and affordable housing development.
The Committee AGREED that the former Primary School at Culbokie be sold to Cairn Housing Association at the deemed market valuation for affordable housing/community use and on other terms and conditions to be agreed by the Director of Housing and Property Services to ensure that the site was developed for combined community and affordable housing provision.
21. Finance Service Quarterly Performance Report for the Quarter to December, 2007
There was circulated Report No. res-20-08 by the Director of Finance which provided details of Finance Service performance during 2007/08 to quarter ending 31 December, 2007
The Committee NOTED the terms of the report.
22. Amendments to Organisational Structures/Establishments
There was circulated Report No. res-21-08 dated 14 February, 2008 by the Assistant Chief Executive which recommended amendments to organisational structures/establishments as a consequence of proposals from Service Directors.
It was advised that the proposals contained within the report showed an overall net increase of 29.37 posts and an overall net cost of £647,586 for proposals which had to be met from Service budgets. In addition there was a net increase of 4.5 posts which were subject to full external funding. There were extensions to 10 existing temporary posts at a cost of £136,000 funded by Services and £45,000 by external funding.
The Committee:-
i. AGREED the amendments to the staffing establishment and other staffing
changes as detailed in Section 2 and Appendix 1 to the report; and
ii. NOTED the trends shown in Appendix 2 of the report.
23. Exclusion of The Public
The Committee RESOLVED that, under Section 50A(4) of the Local Government (Scotland) Act 1973, the public be excluded from the meeting during discussion of the following items on the grounds that they involved the likely disclosure of exempt information as defined in Paragraphs 1, 6, 9 and 11 of Part 1 of Schedule 7A of the Act.
24. Scottish Joint Council Trade Union Side Claim
There was circulated to Members only Report No. RES/22/08 dated 12 February, 2008 by the Chief Executive which provided the Council’s response to COSLA in relation to the Scottish Joint Council Trade Union Side pay claim for 2008 following a meeting of the Sounding Board on 18 December, 2007.
The Committee NOTED the Council’s response to COSLA on the Scottish Joint Council Trade Union Side pay claim for 2008.
25. Janitors’ Houses at Millburn and Dingwall Academy
There was circulated to Members only Report No. RES/23/08 dated 12 February, 2008 by the Interim Director of Housing and Property which asked Members to consider the disposal of the Janitors houses at Millburn and Dingwall Academy to the existing Janitors.
Following consideration, the Committee AGREED that the properties be offered for sale at market value to the existing janitors with other terms and conditions to be agreed by the Director of Housing and Property. If either janitor did not wish to pursue this option then it was agreed that the property involved be transferred to the Housing Revenue Account, at a price and on other terms and conditions to be agreed by the Director of Housing and Property, in consultation with the Director of Education, Culture and Sport and the Director of Finance.
26. Property Transactions Monitoring Report
There was circulated to Members only Report No. RES/24/08 dated 11 February, 2008 by the Interim Director of Housing and Property Services which advised on sales targeted for completion within the financial year 2007/08 and summarised progress. The report also provided details of Property Account property transactions approved by the Head of Housing Development and Estates.
The Committee NOTED progress on property sales with anticipated settlement within financial year 2007/08; and Property Account transactions approved by the Head of Housing Development and Estates.
27. Debts Recommended to be Written Off
There was circulated to Members only Report No. RES/25/08 dated 25 January, 2008 by the Director of Finance relating to uncollectable debts including local taxation recommended to be written-off.
In discussion, it was suggested that it would be helpful if Members could be provided with information on companies with bad debts sooner in the rates recovery process, so that if they could provide useful information about the owner(s) of the company, this could help officials to take action against repeated non-payment sooner, and therefore avoid large debts being accumulated.
Thereafter the Committee AGREED:
i. that the debts detailed in the report should be written-off; and
ii. that the Head of Exchequer should consider introducing a procedure
whereby Members could be alerted to companies with bad debts sooner in
the rates recovery process.
The meeting ended at 1.15p.m.