Minutes of Meeting of the Resources Committee held in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Wednesday, 1 October 2008 at 10.30 a.m.
Present:
Mrs C Wilson, Mr M Rattray, Ms L Munro, Mrs D MacKay, Mr R Greene, Mr P Cairns, Dr D Alston, Mr I Renwick, Mr A Henderson, Mrs H Carmichael, Mrs M Davidson, Miss J Campbell, Mrs P Munro, Mr P Corbett, Mr J Finnie, Mr J Ford, Mr B Wynd, Mr A S Park, Mr G Rimell, Dr M E M Foxley,
Non-Members also present:
Mr G Farlow, Mr J Rosie, Mr G Smith, Mr W J Ross, Mrs I Campbell, Mr R Durham, Mr A Rhind, Mrs M Paterson, Mrs I McCallum, Mr B Clark, Mr L Fraser
Officials in attendance:
Mr A B Dodds, Chief Executive
Mr A Geddes, Depute Chief Executive/Director of Finance
Ms M Morris, Assistant Chief Executive
Mr S Barron, Director of Housing & Property
Mrs C McDiarmid, Head of Policy and Performance, Chief Executive’s Service
Mr J Batchelor, Head of Personnel, Chief Executive’s Service
Mrs V Nairn, Head of E Government, 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 G Westwater, Head of Construction, Housing and Property Service
Mr A Maguire, Head of Housing Development and Estates
Ms E Barrie, Personnel Manager, Chief Executive’s Service
Mr J Grieve, IS Client Manager, Chief Executive’s Service
Mr A Gould, Head of Procurement, Finance Service
Mr J Allison, Principal Administrator, Chief Executive’s Service
Mr A MacInnes, Administrative Assistant, Chief Executive’s Service
Mrs C Wilson in the Chair
An asterisk in the margin denotes a recommendation to the Council.
All decisions with no marking in the margin are delegated to the Committee.
Industrial Action
Prior to the formal business of the meeting, the Chairman updated Members on the current status of the national pay dispute involving local government employees. The Chairman advised that discussions were continuing between the Employers’ and Trade Unions in order to try to reach an amicable settlement.
The Committee NOTED the position and that regular updates would be provided to all Members.
1. Apologies for Absence
Apologies for absence were submitted on behalf of Mrs K MacNab, Mr N Donald and Mr F D S Black.
2. Central Services Budget Monitoring
There had been circulated Reports by the Chief Executive and Depute Chief Executive/Director of Finance which provided the Revenue Budget Monitoring Statements for Central Services for the period to 31 August, 2008.
i. Chief Executive’s Service Report No. res-107-08
ii. Finance Service Report No. res-108-08
The Committee NOTED the terms of the reports.
3. Property Revenue Maintenance Budget 2008/09
There had been circulated Report No. res-109-08 dated 16 September, 2008 by the Director of Housing and Property Services which set out the current position with regard to the component parts of the 2008/09 Property Revenue Maintenance Budget.
The Committee NOTED progress with the 2008/09 Property Revenue Maintenance Budget.
4. Corporate Revenue Monitoring Statement
There had been circulated Report No. res-110-08 dated 23 September, 2008 by the Depute Chief Executive/Director of Finance which presented the revenue budget monitoring position for the period to 31 August, 2008 and the projected year end position.
The Committee:
i. NOTED that the actual underspend in the budget for the Joint Committee
on Children and Young People was £225k and not £102k as stated in the
report; and otherwise
ii. AGREED the Revenue Expenditure Monitoring Statement for financial year
2008/09 at 31 August, 2008.
5. Corporate Capital Monitoring Statement – General Fund and HRA
Capital Programme
There had been circulated Report No. res-111-08 dated 22 September, 2008 by the Depute Chief Executive/Director of Finance which provided an overview of the General Fund and HRA capital programmes for the period to 31 August, 2008 and the projected year end position.
It was noted that anticipated income from the sale of Council Houses in 2008/09 would be more difficult to achieve given the current economic climate. However, it was still anticipated that the target for Council House sales would be achieved. In the event that it was not, Housing Revenue Account balances could be utilised to make up any shortfall.
It was also confirmed that in order to avoid large underspends in the Capital Programme in future, the Housing and Property Service were looking at identifying alternative projects which could be brought forward and undertaken at short notice.
The Committee NOTED the financial position of the General Fund and HRA Capital Programmes as at 31 August, 2008 and that efforts were being made to manage any underspend in the Capital Programme by identifying alternative projects which could be brought forward and undertaken at relatively short notice.
6. Capital Monitoring Statement for Chief Executive’s Service
There had been circulated Report No. res-112-08 dated 23 September, 2008 by the Chief Executive which set out the current capital budget position for the Chief Executive’s Service for 2008/09.
It was advised that clarification on funding for the Inverness City Developments Projects would be provided to Members after the meeting. In response to a suggestion that the Members and Officials CCTV Working Group should be reformed in order to look at improvements to the CCTV service, it was indicated that this would be considered following the outcome of a review of CCTV provision in Highland which would be reported to the Resources Committee in December, 2008.
Thereafter, the Committee NOTED:
i. the capital monitoring report;
ii. that clarification on funding for the Inverness City Developments Projects
would be provided to Members; and
iii. that the outcome of a review of CCTV provision in Highland would be
reported to the next meeting of the Committee, and consideration would
thereafter be given to reforming the Members and Officials CCTV Working Group.
7. Property Capital Monitoring Statement
There had been circulated Report No. res-113-08 dated 14 September, 2008 by the Director of Housing and Property which set out the current position with regard to the 2008/09 Property Capital Programme.
Members expressed their appreciation to all staff involved in renewable energy projects for the Council. In this respect, it was advised that a full options appraisal on these projects was available to Members on request. It was also advised that the Housing and Property Service’s new Asset Management Team would be reviewing the Council’s property portfolio and would look at the rationalisation of accommodation wherever possible.
The Committee NOTED the current position on allocation and spend within the 2008/09 Property Capital Programme Budget.
8. Treasury Management: Summary of Transactions
There had been circulated Report No. res-114-08 dated 4 September, 2008 by the Depute Chief Executive/Director of Finance which provided details of the Treasury Management transactions undertaken for July and August, 2008 which had been 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.
9. Treasury Management Report - 2007/08
There had been circulated Report No. res-115-08 dated 10 September, 2008 by the Depute Chief Executive/Director of Finance which highlighted the Council’s Treasury Management activities undertaken in the year and compared them to the expected activities contained in the annual Treasury Strategy Statement which was presented to, and approved by, the Resources Committee on 21 March, 2007. In addition, the Prudential Code required the Council to report the actual prudential indicators after the financial year end and they were contained in the report.
The report also demonstrated achievement of efficiencies in the delivery of the Council’s treasury management activities in accordance with the Programme for the Highland Council.
In response to questions regarding the risks in the current economic climate to Council investments, the Director of Finance confirmed that in addition to in-house expertise, the Council also had access to external expertise from Treasury Management Advisors to ensure that any decisions regarding investments were reasonable and proper.
The Committee NOTED the terms of the report.
10. Changes to the Local Government (Scotland) Pension Scheme
There had been circulated Report No. res-116-08 dated 8th September, 2008 by the Depute Chief Executive/Director of Finance which outlined the main changes to the Local Government (Scotland) Pension Scheme as a result of new legislation effective from April, 2009.
In addition, it was reported that there would be little or no change to the Additional Voluntary Contributions Scheme (AVC’s) as a result of the changes to the Pension Scheme and that the Council would continue to promote AVC’s to Pension Scheme members.
The Committee NOTED:
i. the changes to the Pension scheme and the scale of the implementation
process; and
ii. that the Council would continue to promote the Additional Voluntary
Contributions Scheme.
11. Supporting people into employment and the use of the Fairer Scotland Fund
There had been circulated Report No. res-117-08 dated 11 September, 2008 by the Head of Policy and Performance which highlighted the use of the Fairer Scotland Fund in supporting several commitments within the Council’s Programme “Strengthening the Highlands” and with partners in the Single Outcome Agreement.
The report described the process underway of moving from five former ring-fenced funds into a composite fund which offered greater flexibility in how that fund was used to support people into work, particularly those facing barriers to employment. As part of the “Strengthening the Highlands” commitments, Members were asked to approve the Council signing up to the Local Employment Partnership with Jobcentre Plus and to lead on the development of a strategy for improving employment opportunities in Highland which would maximise EU and partner funding and be shaped by gathering a range of evidence, including a conference event in November, 2008.
In discussion, a request was made for some form of simplified local reporting of unemployment as the knowledge that this reporting could provide would be helpful. It was also suggested that an annual report should be produced monitoring the outcomes of the Fairer Scotland Fund projects and that consideration be given to specific targeting of funding for the Hilton Area of Inverness.
Thereafter, the Committee NOTED:
i. the range of activity funded previously by the former ring fenced
Community Regeneration funds based on annual reports submitted in the
current year;
ii. the current outcomes expected from the Fairer Scotland Fund as set out in
the Single Outcome Agreement as part of a wider approach to tackling
poverty;
iii. the use of the Fund in 2008-9, with commitments of £1.563m, growing to
£2.354m in 2009-10, and that a strategic bid would be produced for
drawing down EU funding from 2009 onwards;
iv. that the Council was participating in a national study on supported
employment services;
v. the Council was hosting a partnership conference in November to inform
the strategy and begin to support a new employability network for the
Highlands.
and APPROVED
vi. joining the Local Employment Partnership scheme for the Council to work
with Jobcentre Plus to help potential recruits to move from welfare to
sustained employment and continue to develop their skills to encourage
progression in work;
vii. an evidence-based, partnership approach to developing an employability
strategy for the Highlands, with further reporting to members;
viii. that an annual report be produced monitoring the outcomes of the Fairer
Scotland Fund projects;
ix. that consideration be given to specific targeting of funding for the Hilton
Area of Inverness; and
x. that a simplified local reporting method of unemployment be adopted.
12. European Activity Update
There had been circulated Report No. res-118-08 dated 18 September, 2008 by the Head of Policy and Performance which advised of the applications being submitted by the Council for funding from the 2007-13 European Regional Development (ERDF) and European Social Fund (ESF) Structural Fund Programmes. An update on LEADER and Convergence funding was also provided. The report also sought approval of the nominations for members to represent the Council on the European networks it participated in. In addition, Members were asked to consider two consultation responses: the Scottish Government’s Action Plan for European Engagement; and the future of the Conference of Peripheral and Maritime Regions (CPMR).
Following consideration, the Committee:
i. AGREED to progress with a shadow round of bids based on the interim
area allocations decided at the June meeting of the Committee with a
further report being brought back on the full area allocations and the
strategic, trans-national and regional awards;
ii. AGREED the following Elected Member representation on European
networks: Councillor Michael Foxley (CPMR); Councillor Isobel McCallum
(North Sea Commission and Euromontana); Councillor John Laing (substitute
for Euromontana);with Councillor Caroline Wilson; Councillor William Ross;
Councillor Richard Green; and Councillor Martin Rattray also substituting for
attendance at network events;
iii. APPROVED the Council projects for ESF and ERDF funding in October, as
set out in Appendix 1 of the report. The Committee also APPROVED that,
in terms of the ‘Deaf Communication Project, consideration should be given
to the needs of people from the Gaelic community within this project,
while acknowledging that British Sign Language is a recognised language in
its own right ;
iv. APPROVED the response to the consultation on the Scottish
Government’s Action Plan on European Engagement as set out in Appendix 2;
v. NOTED that the Council would submit a strategic bid on behalf of the
Community Planning Partnership for structural funds from 2009 onwards;
vi. NOTED the award of LEADER and Convergence funding of £14.26m to the
Highland Community Planning Partnership; and
vii. NOTED the following comments from Members on the Council’s position on
the future of the Conference of Peripheral and Maritime Regions, as set
out in section 4.7 and Appendix 3 of the report, and that the Council’s
response to the consultation would be reviewed in conjunction with the
Programme for the Highland Council and the Single Outcome Agreement: -
- that Transport, Tourism and the Knowledge economy should be treated as essential priorities in terms of Question 2.1 of the consultation questionnaire;
- the need to ensure that the unique aspect of the Highlands was represented properly in the Scottish Government’s European Action Plan approach and for the Council to take the lead on issues for rural areas of Scotland;
- while rural development was important to Highland, it was felt that the importance of the Inner Moray Firth Area as an important driver for the economy of the area should be noted; and
- that the answers to the consultation should be linked to the Programme for the Highland Council and the Single Outcome Agreement.
13. MORI 2007 Staff Survey Improvement Action Plans
i. Chief Executive’s Service
There had been circulated Joint Report No. res-119-08 dated 8 September, 2008 by the Chief Executive and Assistant Chief Executive which outlined the proposed improvement actions to be taken by the Chief Executive’s Service in response to the views expressed by staff within the Service in the fourth Highland Council Employee Survey.
The Committee:
a) NOTED the results of the fourth Employee Survey for the Chief Executive’s Service;
b) APPROVED the proposed improvement actions identified in response to
the results; and
c) AGREED the proposals for monitoring the actions as outlined in Section 5 of
the report.
ii. Finance Service
There had been circulated Report No. res-120-08 dated 5 September, 2008 by the Depute Chief Executive/Director of Finance which provided Members with Improvement Actions identified for the Finance Service in response to the views expressed in the fourth Highland Council Survey.
The Committee APPROVED the Finance Service improvement actions in response to the fourth Employee Survey.
14. Local Housing Allowance
There had been circulated Report No. res-121-08 dated 16 September, 2008 by the Depute Chief Executive/Director of Finance which provided Members with a progress report regarding the Local Housing Allowance scheme which came into effect on 7 April, 2008; the impact of the scheme in the Highland context; and an updated Local Housing Allowance Safeguard Policy.
In particular, Members were advised of changes to the rules for the backdating of benefit claims. Previously backdated benefit claims could be made up to a maximum of 1 year, but this would shortly change to a maximum of 6 months for working age claimants and 3 months for pensioners.
The Committee:
i. NOTED how the Department for Work and Pensions Local Housing
Allowance scheme operated;
ii. NOTED the impact that Local Housing Allowance was having so far in the
Highland context and that a further report on the impact of the Allowance
would be submitted to Committee in 6 months time;
iii. NOTED the changes to the rules for the backdating of benefit claims; and
iv. APPROVED the updated Safeguard Policy as detailed in Appendix 1 of the report.
15. Amendment to Contract Standing Orders
There had been circulated Report No. res-122-08 dated 8 September, 2008 by the Depute Chief Executive/Director of Finance which suggested an amendment to the requirements for advertising contract opportunities set out in Contract Standing Orders.
The Committee APPROVED the amendment to Contract Standing Orders as detailed in the report.
16. Highland Council Procurement Strategy
There had been circulated Report No. res-123-08 dated 8th September, 2008 by the Depute Chief Executive/Director of Finance which presented the Council’s Procurement Strategy for the period 2008-2011.
The Committee APPROVED the Procurement Strategy attached to the report.
17. Framework Agreements
There had been circulated Report No. res-124-08 dated 12 September, 2008 by the Director of Housing and Property which set out the current position with regard to progress in implementing a framework agreement for construction-related consultancy services, and asked Members to note the programme to implement a framework agreement for construction works.
Following consideration, the Committee NOTED:
i. the current position with regard to progress in implementing a framework
agreement for construction-related consultancy services; and
ii. the programme to implement a framework agreement for construction works.
18. Fujitsu: Performance Report
There had been circulated Report No. res-125-08 dated 8 September, 2008 by the Information Systems Client Manager which summarised the performance of the Partnership Agreement between Highland Council and Fujitsu Services for the provision of Information and Communication Systems and highlighted its major activities during the defined month July 2008.
The Committee NOTED the contents of the report.
19. Pathfinder North Progress Update Report
There had been circulated Report No. res-126-08 dated 11 September, 2008 by the Head of E-Government which provided an update on the 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 reported that partners in the project had expressed strong concerns to the THUS Management Team over delays in site connections. A revised roll out plan was presented by THUS in September, 2008 and discussions were ongoing between THUS and the Central Project Team as to how THUS intended to recover their position and deliver the contractual roll out on time.
Having heard the Head of E-Government advise that the number of Pathfinder North sites now connected across the Partnership was 377 (167 in Highland), the Committee:
i. NOTED the report; and
ii. AGREED a retrospective exemption to Contract Standing Orders in respect
of the work undertaken by G.S. Consulting Limited and Pinset Masons as
detailed in Paragraphs 3.5 and 3.6 of the report.
20. ICT Strategy 2008 - 2013
There had been circulated Report No. res-127-08 dated 25 September, 2008 by the Assistant Chief Executive which presented a summary of the Council’s draft Strategy for Information and Communications Technology (ICT) for the period October, 2008 to March 2013.
Following consideration, the Committee:
i. NOTED the draft Strategy for Information and Communications Technology
for the period October 2008 to March 2013; and
ii. AGREED that it be reviewed by the Members ICT Procurement Working
Group prior to it being finalised and presented to the Resources Committee
in December, 2008.
21. Membership of the Improvement Service Company
At the COSLA Convention in June, 2008, it had been agreed that all Councils would be invited and encouraged to become members of the Improvement Service Company. The primary objectives of the Improvement Service Company were to support, promote and assist local government in the delivery of excellent public services through learning, sharing and delivering improvement solutions.
There was no cost or liability associated with becoming a member, and membership would allow Councils to approve the membership of the Improvement Service Board, attend Annual General Meetings and call Emergency General Meetings and input to the Business Plan of Improvement Services.
The Committee AGREED that the Highland Council should become a member of the Improvement Services Company.
22. Amendments to Organisational Structures/Establishments
Declaration of Interest
Mrs P Munro declared a non-financial interest in this item as a Member of the Management Committee of Charleston Academy but, having applied the test outlined in Paragraph 5.18 of the Councillors Code of Conduct, concluded that her interest did not preclude her involvement in the discussion.
There had been circulated Report No. res-128-08 dated 25 September, 2008 by the Assistant Chief Executive which recommended amendments to organisational structures/establishments as a consequence of proposals from Service Directors.
The proposals contained in the report showed an overall net increase of 7.42 posts and an overall net cost of £259,500 for proposals which had to be met from Service budgets. In addition there was a net increase of one post which was subject to full external funding. There were extensions to 3.6 existing temporary posts at a cost of £22, 500 funded by Services budgets and £58, 500 by external funding.
Councillor P Munro, on behalf of the Management Committee of Charleston Academy, welcomed the staffing proposals for the community facilities which would ensure that the complex was an important asset to the local community, and thanked the Director of Education, Culture & Sport for his efforts in this respect.
Thereafter, the Committee:
i. APPROVED the amendments to the staffing establishment and other
staffing changes as detailed in Section 2 and Appendix 1 of the report,
subject to an amendment to the salary grade of the post of Travel Plan Co-
ordinator, Chief Executive’s Service, as follows – PO 1-4 two year fixed term
contract; and
ii. NOTED the trends shown in Appendix 2 of the report.
23. Professional Fees
There had been circulated Report No. res-129-08 dated 25 September, 2008 by the Assistant Chief Executive which proposed that the current policy of non-payment of professional fees/subscriptions/registrations should be amended.
Following consideration, the Committee APPROVED the proposal to amend the existing policy for professional fees as follows:
• the Council would reimburse staff for professional fees where those fees
exceeded £400 per annum with staff required to pay the first £400;
• the rate would be adjusted annually in line with the cost of living; and
• reimbursement would only apply to payments to one professional body per employee.
24. Property Disposals Requiring Scottish Ministers’ Consent
There had been circulated Report No. res-130-08 dated 12 September, 2008 by the Director of Housing and Property inviting Members to approve property disposals at below market value, subject to receipt of Scottish Ministers consent.
In discussion, it was suggested that if in future the Kinlochleven Visitor Centre was no longer required by the Kinlochleven Community Trust, the Council should have a right to purchase the building back for other purposes. It was also felt that, in order to ensure best value, an annual report on the use of Centre should be produced by the Trust. With regard to the monitoring role for this and other similar projects, it was suggested that this could be undertaken at Ward level.
The Committee AGREED:
i. the lease of Tigh Corraraigh (the former Cleadale Centre) to the Isle of Eigg
Heritage Trust on the terms and conditions detailed in the report;
ii. the disposal of part of the land adjacent to the Helmsdale Community
Centre to the Helmsdale Community Centre Association on the terms and
conditions detailed in the report;
iii. the disposal of the Kinlochleven Visitor Centre to the Kinlochleven
Community Trust on the terms and conditions detailed in the report;
iv. that consideration be given to introducing pre-emption rights in favour of
the Council in the agreement to dispose of the Kinlochleven Visitor Centre
to the Kinlochleven Community Trust; and
v. that Kinlochleven Community Trust should produce an annual report on the
use of the building.
25. Minutes of Meetings
The Committee APPROVED the following Minutes of Meetings which had been circulated for confirmation:-
i. Appeals Committee – Minute of Meeting 22 August 2008;
ii. Investment Advisory Group - Minute of Meeting 28 August 2008;
iii. Early Retirement Sub-Committee - Minute of Meeting of 21 August 2008; and Minute of Meeting of 4 September 2008;
iv. Sounding Board - Minute of Meeting of 3 September 2008;
v. Modernising Employment Sub-Committee - Minute of Meeting of 14 August 2008; and
vi. ICT Procurement Sub-Committee - Minute of Meeting of 10 September 2008.
26. 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 6 & 9 of Part 1 of Schedule 7A of the Act.
27. Property Transactions Monitoring Report
There had been circulated to Members only Report No. RES/131/08 dated 12 September, 2008 by the Director of Housing and Property which advised on sales targeted for completion within the financial year 2008/09 and summarised progress. The report also provided details of the Property Account property transactions approved by the Head of Housing Development and Estates.
In discussion, reference was made to the fact that legislation prohibited those in tied accommodation being allowed to buy their homes under the Right to Buy Scheme and an undertaking was given to provide a briefing note to Members on this issue. Further information was also requested on the sale of Dunvegan Fire Station.
Thereafter, the Committee:
i. NOTED progress on property sales with anticipated settlement within
financial year 2008/09 and the Property Account transactions approved by
the Head of Housing Development and Estates;
ii. NOTED that further details on the disposal of Dunvegan Fire Station would
be provided to Councillor I Renwick; and
iii. AGREED that a briefing note be issued to Members on the right to buy and
discount entitlement of employees who were tenants of tied Council
accommodation.
28. Property Transactions
There had been circulated to Members only Report No. RES/132/08 dated 12 September, 2008 by the Director of Housing and Property relating to the renewal of the lease for Aviemore Library and for the lease of additional office accommodation at the T3UK Offices, Janetstown Industrial Estate, Thurso.
The Committee APPROVED:
i. that the lease of Aviemore Library be renewed for a further period of 5
years, on terms and conditions to be agreed by the Director of Housing and
Property; and
ii. the lease of additional office accommodation at the T3UK Building,
Janetstown Industrial Estate Thurso, on terms and conditions to be agreed
by the Director of Housing and Property.
The meeting ended at 12.45p.m.