26 November 2014: Resources Committee

A meeting of the Resources Committee will take place in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Wednesday 26 November 2014 at 10.30 am.

Webcast Notice: This meeting will be filmed and broadcast over the Internet on the Highland Council website and will be archived and available for viewing for 12 months thereafter.

You are invited to attend the meeting and a note of the business to be considered is attached.

Yours faithfully

Michelle Morris
Depute Chief Executive/
Director of Corporate Development

1.  Apologies for Absence
Leisgeulan

2.  Declarations of Interest
Foillseachaidhean Com-pàirt

Members are asked to consider whether they have an interest to declare in relation to any item on the agenda for this meeting. Any Member making a declaration of interest should indicate whether it is a financial or non-financial interest and include some information on the nature of the interest. Advice may be sought from officers prior to the meeting taking place.

3.  Good News Stories
Deagh Naidheachdan

The Committee is invited to note that Ms Linda Johnstone, ICT Delivery Manager has received certification from CIPFA.

FINANCE SERVICE

4.  Finance Service Revenue Monitoring to 30 September 2014
Sgrùdadh Teachd-a-steach Seirbheis an Ionmhais gu 30 Sultain 2014

There is circulated Report No. RES/57/14 dated 5 November 2014 by the Director of Finance which provides Members with information on the Finance Service Revenue Monitoring position for the period to 30 September 2014.

The Committee is invited to consider and approve the Finance Service Revenue Monitoring Report for the period to 30 September 2014.

5.  Corporate Capital Monitoring Report to 30 September 2014
Aithisg Sgrùdaidh a’ Chalpa Chorporra gu 30 Sultain 2014

There is circulated Report No. RES/58/14 dated 14 November 2014 by the Director of Finance which provides an overview of expenditure on the General Fund and HRA capital programmes for the period from 1 April 2014 to 30 September 2014 and the projected year end position for the 2014/15 financial year.

The Committee is invited to approve the financial position of the General Fund and HRA Capital Programmes as at 30 September 2014.

6.  Corporate Revenue Monitoring Report to 30 September 2014
Aithisg Sgrùdaidh Teachd-a-steach Corporra gu 30 Sultain 2014

There is circulated Report No. RES/59/14 dated 14 November 2014 by the Director of Finance which presents the financial position of the revenue budgets of the General Fund and HRA as at 30 September 2014 and the projected year end position.

The Committee is invited to approve the financial position of the General Fund and HRA revenue budgets as at 30 September 2014 and to note the predicted year end net underspend of £0.467m

7.  Treasury Management - Summary of Transactions
Geàrr-chunntas de Ghnothaichean Rianachd Ionmhais

There is circulated Report No. RES/60/14 dated 14 November 2014 by the Director of Finance which provides details on the treasury management transactions undertaken within the period is submitted to Committee in compliance with CIPFA's Code of Practice on Treasury Management and the Council's approved Financial Regulations.

The Committee is invited to consider the Treasury Management Summary of Transactions reports.

8.  Welfare Reform Report
Fios às Ùr mu Ath-leasachadh Shochairean

(i) Update
Fios às Ùr

There is circulated Joint Report No. RES/61/14 dated 17 November 2014 by the Director of Finance and the Director of Community Services which provides information on the current status of Universal Credit and other Welfare initiatives. It also provides financial monitoring information for 2014/15, covering the Council’s considerable involvement in this area of work.

The Committee is invited to note:-

i. the impact that Universal Credit is having on Council tenants and the planned activities to support these tenants;
ii. the progress being made to make next generation broadband available to more businesses and residents in the Highlands;
iii. a Private Member’s Bill being taken forward to exempt certain groups from the Under Occupancy rules;
iv. mitigation action being taken to support the most vulnerable individuals and families across the Highlands; and
v. the significant expenditure on welfare and the budget available to enable further mitigating actions to be implemented.

(ii) Welfare Fund Proposals
Molaidhean

There is circulated Joint Report No. RES/62/14 dated 18 November 2014 by the Director of Finance and the Head of Policy and Reform which recommends an allocation of £163,920 from the Council’s Welfare Fund of £1.167m to support enhanced services for vulnerable people. Further proposals are under development for the remainder of the Fund, guided by the Council’s Welfare Reform Working Group.

The Committee is invited to:-

i. approve funding for two proposals from the Council’s Welfare Fund, namely: to provide tailored welfare advice clinics through the CAB network from January 2015 to end March 2016 to be run in GP surgeries, mental health drop in centres, other local facilities and New Craigs hospital, covering all Council wards, with total funding of £160,920; and £3,000 to provide up to 10 training events for front-line workers in responding to people presenting with mental ill-health;
ii. note that further proposals will be developed and brought back to Committee for consideration as outlined in paragraph 3.1, and with the scope for EU programme funding explored; and
iii. agree that the Council seeks access to the DWP’s local support services framework to enable a smoother transition for welfare reform changes.

9.  Finance Service Quarterly Performance Report
Aithisg Dèanadais Ràitheil Seirbheis an Ionmhais

There is circulated Report No. RES/63/14 dated 5 November 2014 by the Director of Finance which provides a summary of key and statutory performance indicators for the Finance Service as at 30 September 2014.

The Committee is invited to note these statutory and key performance indicators.

10.  Capital Discretionary Fund – Halkirk Sports Facility
Maoin Calpa fo Ùghdarras – Goireas-Spòrs Hàcraig

There is circulated Report No. RES/64/14 dated 5 November 2014 by the Director of Finance which seeks the Committee’s agreement to set aside the current allocated sum of £200,000 held for Halkirk Sports Facility.

The Committee is invited to withdraw the offer of £200,000 funding towards the Halkirk Sports facility.

11.  Strategic Change and Development Fund: Application for Funding – Care and Learning Service
Maoin Atharrachaidh is Leasachaidh Ro-innleachdail: Iarrtas airson Maoineachadh – Seirbheis a’ Chùraim is an Ionnsachaidh

There is circulated Report No. RES/65/14 dated 5 November 2014 by the Director of Finance which seeks a funding contribution of £180,000 from the Fund to deliver transformational change across the Care & Learning Service.

The Committee is asked to agree the allocation of £180,000 from the Strategic Change and Development Fund to support the delivery of financial savings for the Care and Learning Service.

12.  Internal Audit Report – Finance Service: Housing Benefits Payments 2013/14
Aithisg In-sgrùdaidh – Seirbheis an Ionmhais: Pàighidhean Shochairean Taigheadais 2013/14

There is circulated Report No. RES/66/14 dated 5 November 2014 by the Director of Finance which provides the outcomes of Internal Audit’s work on Housing Benefit Payments in 2013/14.

The Committee is invited to note the findings of the Internal Audit Report on Housing Benefit Payments 2013/14 presented to Audit & Scrutiny Committee on 24 September 2014, and the actions being taken to implement its findings.

13. Mileage Claims by Members and Employees
Tagraidhean Siubhail bho Bhuill agus Luchd-obrach

There is circulated Report No. RES/67/14 dated 5 November 2014 by the Director of Finance which provides details on mileage claims submitted by Members and employees and provides an opportunity to reduce the cost of Members’ mileage allowances without financial impact on individual Members.

The Committee is invited to:-

i. note the reduction in mileage claims for both Members and employees over the past five years and four years respectively; and
ii. agree that Members attach VAT receipts to all mileage claims.

14. Banking and Related Financial Transactions – Authorised Signatories
Gnothachasan Ionmhasail Bancaireachd is a’ Buntainn ri Bancaireachd – Luchd-soidhnigidh Ùghdarraichte

There is circulated Report No. RES/68/14 dated 10 November 2014 by the Director of Finance which addresses the matter of Officers appointed to authorise banking and related financial transactions on behalf of the Council.

The Committee is invited to approve the following Officers as authorised signatories for banking and related financial transactions:-

• Derek Yule – Director of Finance
• David Robertson – Head of Corporate Finance
• Nigel Rose – Head of Internal Audit and Risk Management
• Allan Gunn – Head of Revenues and Business Support

15. Consideration of Debts to be Written-Off
Beachdachadh air Fiachan airson an Dubhadh Às

At the Resources Committee on 27 August 2014, Members asked that a report be brought to the next meeting upon consideration of debts presented to be written off and, in particular, if such consideration should be undertaken in public.

In this regard, there is circulated Joint Report No. RES/69/14 dated 17 November 2014 by the Director of Finance and the Head of Corporate Governance which advises Members of the Council’s current practice and invites Members to continue to determine such matters in private.

The Committee is invited to agree to consider reports containing information relating to the financial or business affairs of any particular person in private.

CORPORATE DEVELOPMENT SERVICE

16. Corporate Development Service Capital Budget Expenditure Monitoring to 30 September 2014
Sgrùdadh Calpa Seirbheis an Leasachaidh Chorporra gu 30 Sultain 2014

There is circulated Report No. RES/70/14 dated 13 November 2014 by the Depute Chief Executive/Director of Corporate Development which sets out the position for the Corporate Development Service 2014/15 capital budget for the period to 30 September 2014.

The Committee is invited to consider the capital monitoring report for the period to 30 September 2014.

17. Corporate Development Service Revenue Expenditure Monitoring to 30 September 2014
Sgrùdadh Teachd-a-steach Seirbheis an Leasachaidh Chorporra gu 30 Sultain 2014

There is circulated Report No. RES/71/14 dated 12 November 2014 by the Depute Chief Executive/Director of Corporate Development which provides information on the revenue monitoring position for the Corporate Development Service for the period 1 April 2014 to 30 September 2014.

The Committee is invited to consider the revenue monitoring report for the period 1 April 2014 to 30 September 2014.

18. Corporate Development - Statutory Performance Indicators, Quarterly Performance Report
Aithisg Dèanadais Ràitheil an Leasachaidh Chorporra

There is circulated Report No. RES/72/14 dated 14 November 2014 by the Depute Chief Executive/Director of Corporate Development which provides quarterly Statutory Performance Indicators for Quarter 2 of 2014/15.

The Committee is invited to note the continued improvement in performance in relation to sickness absence and payment of invoices.

19. Corporate Improvement Programme
Prògram Leasachaidh Chorporra

(a) Corporate Improvement Programme - Progress Report
Aithisg Ràitheil Prògram an Leasachaidh Chorporra

There is circulated (pp.84-93) Report No. RES/73/14 dated 17 November 2014 by the Depute Chief Executive/Director of Corporate Development which explains that the Corporate Improvement Programme (CIP) is progressing with a target to achieve £5.98m in efficiency savings for the period 2013/14 & 2014/15. In addition, the process for aligning the next programme of work with the corporate budget setting process is underway.

The Committee is invited to note the:-

i. progress with the delivery of the Corporate Improvement Programme;
ii. action being taken to ensure savings are delivered on target; and
iii. development of a new Transformation Programme as part of the 2015-19 Budget Strategy.

(b) Income Generation Project Update
Pròiseact Togail Teachd-a-steach

There is circulated (pp.94-99) Report No. RES/74/14 dated 12 November 2014 by the Director of Development and Infrastructure which provides an update on the Income Generation Project and the proposal to appoint a Commercial Manager to drive forward the initiative to increase the Highland Council’s ability to generate income.

The Committee is invited to note the:-

i. income generated to date by the Income Generation Project; and
ii. progress made with regards to the appointment of a Commercial Manager.

20. Highland Council Engagement and Partnership Framework
Frèam Ceangal is Obair Chom-pàirteach nan Aonaidhean Ciùird

There is circulated Report No. RES/75/14 dated 12 November 2014 by the Depute Chief Executive/Director of Corporate Development which recommends the adoption and implementation of a Highland Council Engagement and Partnership Framework.

The Committee is invited to agree:-

i. to the adoption of the Highland Council Engagement & Partnership Framework as set out in Appendix 1 to the report;
ii. to the constitution of the Highland Council Staff Partnership Forum as set out in Appendix 2 to the report;
iii. the composition of the Highland Council Partnership Forum as set out in section 3.2, the method of operation set out in section 3.3 and the dates for meetings in 2015 as set out in section 3.3; and
iv. the approach to implementation set out in section 3.4 of the report.

MAIN PAPERS – PART 3

21. ICT Services Performance Report - March to September 2014
Aithisg Leth-bhliadhnail TFC Màrt gu Sultain 2014

There is circulated Report No. RES/76/14 dated 6 November 2014 by the Depute Chief Executive/Director of Corporate Development which provides an update on the key achievements of the ICT Services Team, the delivery of services by the Council’s ICT providers principally Fujitsu Services and Vodafone for the period from March to September 2014.

The Committee is invited to note:-

i. the content of the report and the positive outcomes being delivered from the Contracts with Fujitsu and Vodafone;
ii. the work being undertaken in relation to the re-provisioning of ICT Services from 2016 onwards;
iii. the progress for the transitioning of the Pathfinder WAN to the SWAN;
iv. that work towards the PSN re-accreditation is underway under the governance of the PSN Project; and
v. that robust contract management and governance arrangements continue to be applied and pursued by the Council to the Fujitsu and Vodafone contracts.

22. Smart City Initiative
Cathair-Bhailtean Glice

There is circulated Joint Report No. RES/77/14 dated 14 November 2014 by the Head of Digital Transformation and the Performance and Building Maintenance Manager which outlines the definition of Smart City and proposes the initial steps Highland Council can take to move towards achieving the benefits of a Smart City approach.

The Committee is invited to note the current position and timescales.

CHIEF EXECUTIVE’S OFFICE

23. Chief Executive’s Office and Members Revenue Expenditure Monitoring to 30 September 2014
Sgrùdadh Teachd-a-steach nam Ball agus Oifis an Àrd-Oifigeir gu 30 Sultain 2014

There is circulated Report No. RES/78/14 dated 14 November 2014 by the Chief Executive which provides information on the revenue monitoring position for the Chief Executive’s Office for the period 1 April 2014 to 30 September 2014.

The Committee is invited to consider the revenue monitoring report for the period 1 April 2014 to September 2014.

24. Chief Executive’s Office Capital Budget Expenditure Monitoring to 30 September 2014
Sgrùdadh Calpa Oifis an Àrd-Oifigeir gu 30 Sultain 2014

There is circulated Report No. RES/79/14 dated 17 November 2014 by the Chief Executive which sets out the position for the Chief Executive’s Office 2014/15 capital budget for the period to 30 September 2014.

The Committee is invited to consider the capital monitoring report for the period to 30 September 2014.

25. Annual Progress Report on the Carbon Management Plan 2013/14
Aithisg Adhartais Bhliadhnail mu Phlana Rianachd Càrboin 2013/14

There is circulated Report No. RES/80/14 dated 14 November 2014 by the Head of Policy and Reform which reviews the Council’s performance in meeting the targets outlined in the Carbon Management Plan (CMP) for 2013/14.

The Committee is invited to note:-

i. that significant progress is being made to reduce the Council’s carbon emissions, with a 5% reduction over the first two years of the CMP 2013-2020 against a 3% p.a. target;
ii. that since the baseline year, carbon emissions from energy use, staff travel, and fleet have decreased, whilst, waste, water and street lighting carbon emissions have increased; and
iii. the Year 7 (2013/14) report to the Scotland’s Climate Change Declaration.

26. Carbon CLEVER Transport Projects
Pròiseactan Còmhdhalach Càrboin Chiallaich

There is circulated Report No. RES/81/14 dated 11 November 2014 by the Head of Policy and Reform which explains that making public transport more convenient and low carbon are important aspects of achieving a Carbon CLEVER Highlands. The report sets out recommendations for a £10,000 contribution towards solar powered real time displays for bus stops in Badenoch and Strathspey and a proposed £15,000 contribution to the successful Green Bus Fund application by Stagecoach to match fund an electric bus charging point at Inverness bus station.

The Committee is invited to approve the following allocations from the Carbon CLEVER capital budget allowance:-

i. £15,000 to match fund an electric bus charging point at Inverness bus station; and
ii. £10,000 contribution towards solar powered real time displays for bus stops in Badenoch and Strathspey.

DEVELOPMENT AND INFRASTRUCTURE SERVICE

27. Highland Council Biomass Installation Performance Report
Dèanadas Ionad Bith-thomaid Chomhairle na Gàidhealtachd

There is circulated Report No. RES/82/14 dated 10 November 2014 by the Director of Development and Infrastructure which briefs Members on the annual performance of the Council biomass heating systems and describes the monitoring and management of the boilers.

The Committee is invited to note the contents of the report and the improvements in performance of the biomass plants and the monitoring of the provision.

28. North Highland Archives: Land at Wick Airport Industrial Estate
Tasglann Niùclasach Ceann a Tuath na Gàidhealtachd agus Nàiseanta: Fearann aig Raon Gnìomhachais Port-Adhair Inbhir Ùige

There is circulated Joint Report No. RES/83/14 dated 6 November 2014 by the Director of Development and Infrastructure and the Director of Care and Learning which provides an update on progress to relocate the North Highland Archive to a new National Nuclear Archive Facility in Wick and to demonstrate best value has been obtained.

The Committee is invited to:-

i. note the National Nuclear Archive provides the Best Value option for the North Highland Archive; and
ii. agree that the negotiations of lease for land and contract for archive services are delegated to the Director of Development and Infrastructure and Director of Care and Learning.

MAIN PAPERS – PART 4

29. Inverness Area Asset Management Plan
Plana Rianachd So-mhaoin Sgìre Inbhir Nis

There is circulated Report No. RES/84/14 dated 7 November 2014 by the Director of Development and Infrastructure which presents an overview of Corporate Property Asset Management and the development of Area Asset Management Plans. It highlights the findings and actions in the draft Inverness Area Asset Management Plan which covers the City of Inverness Area.

The Committee is invited to:-

i. note the approach to the development of Area Asset Management Plans; and
ii. agree the Inverness Area Asset Management Plan as a Council plan.

MINUTES OF MEETINGS

30. Minutes of Meetings
Geàrr-chunntasan Choinneamhan

The Committee is invited to:-

i. note the Minutes of the Appeals Committee held on 11 August, and 6 October 2014;
ii. approve the Minutes of the Joint Consultation Group (Administration Etc, Manual and Crafts Staffing) held on 24 October 2014;
iii. approve the Minutes of the Central Safety Committee held on 24 October 2014; and
iv. note the Minutes of the Early Retirement Sub-Committee held on 29 October 2014.

31. Exclusion of The Public
Às-dùnadh a’ Phobaill

The Committee is asked to resolve 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 involve the likely disclosure of exempt information as defined in Paragraphs 6 and 9 of Part 1 of Schedule 7A of the Act.

32. ICT Executive Board: Minutes of Meeting
Buidheann-obrach TFC Bhall: Geàrr-chunntas Coinneimh

There is circulated to Members only for approval, Minutes of Meeting of the ICT Executive Board (Members) held on 10 November 2014.

DEVELOPMENT AND INFRASTRUCTURE SERVICE

33. Land and Property
Talamh agus Taigheadas

There is circulated to Members only Report No. RES/85/14 dated 10 November 2014 by the Director of Development and Infrastructure which seeks approval for a number of land and property transactions as outlined in the report.

The Committee is invited to agree the recommendations as set out in the report.

Minutes of Meeting of the Resources Committee held in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Wednesday 26 November 2014 at 10.30 am.

Present:

Ms M Smith, Dr D Alston, Ms C Caddick, Ms J Campbell (substitute), Mrs H Carmichael, Mr A Christie, Mrs M Davidson (via VC), Mr N Donald, Ms J Douglas, Mr D Fallows, Mr D Hendry, Mr R Laird, Mr C Macaulay, Mr D MacKay, Mrs D MacKay, Mr A Mackinnon, Mrs I McCallum, Mr H Morrison, Mr F Parr, Mr J Stone, Mrs C Wilson, Mr H Wood

Non Members also Present:

Mrs I Campbell, Mr B Clark, Mr B Lobban, Ms L Munro, Mrs M Paterson

Officials in attendance:

Ms M Morris, Depute Chief Executive/Director of Corporate Development
Mr D Yule, Director of Finance
Mr S Fraser, Head of Corporate Governance, Corporate Development Service
Mr J Batchelor, Head of People & Performance, Corporate Development Service
Ms V Nairn, Head of E Government, Corporate Development Service
Mr A Gunn, Head of Revenues and Business Support, Finance Service
Mr A Maguire, Head of Property Partnerships, Development & Infrastructure Service
Mrs C McDiarmid, Head of Policy and Reform, Chief Executive’s Office
Mrs S McKandie, Exchequer Manager (Policy & Development), Finance Service
Mrs L Johnstone, ICT Delivery Manager, Corporate Development Service
Mr J Robertson, Corporate Improvement Programme Manager, Corporate Development Service
Mr K Fox, ICT Operations Manager, Corporate Development Service
Mr G Bull, Corporate Property Asset Manager, Development & Infrastructure Service
Ms H Cunningham, Property Manager (Asset Management), Development & Infrastructure Service
Mr C Anderson, Property Manager (Operational Estate Management), Development & Infrastructure Service 
Mr E Boyd, Principal Engineer, Development & Infrastructure Service
Ms G Ward, Housing Policy Officer, Community Services
Ms G Cassells, Policy Officer, Chief Executive’s Office
Mrs K Lackie, Business Manager, Chief Executive’s Office
Mrs L Dunn, Principal Committee Administrator, Corporate Development Service
Ms A Macrae, Committee Administrator, Corporate Development Service
Miss J Green, Administrative Assistant, Corporate Development Service

An asterisk in the margin denotes a recommendation to the Council.  All decisions with no marking in the margin are delegated to the Committee.

Ms M Smith in the Chair

Business

1.  Apologies for Absence
Leisgeulan

Apologies for absence were intimated on behalf of Dr I Cockburn (on other Council business), Mr B Gormley, and Mr B Thomson.

2.  Declarations of Interest
Foillseachaidhean Com-pàirt

Item 8.1: Mr A Christie and Ms J Douglas (non-financial)
Item 8.2: Mr A Christie (financial) and Ms J Douglas (non-financial)
Item 9: Mr A Christie (non-financial)
Item 10: Ms J Douglas (non-financial)
Item 16: Mr A Mackinnon (financial)
Item 18: Mr A Mackinnon (financial)
Item 26: Ms J Douglas (non-financial)
Item 28: Ms J Douglas (non-financial)

3.  Good News Stories
Deagh Naidheachdan

On hearing from the Chair, the Committee NOTED that Ms Linda Johnstone, ICT Delivery Manager had received certification from CIPFA and offered their congratulations on her success.

Preliminaries

Prior to the commencement of the formal business, Members were reminded of the Digital Communities Seminar which was taking place in the Council Chamber on Friday 28 November 2014.

At this point in the meeting, it was AGREED that Item 15 on the agenda – Consideration of Debts to be Written-Off – should be withdrawn from the business of the meeting and deferred to the next meeting on the basis that further information had been sought which would be circulated to Members.

FINANCE SERVICE

4.  Finance Service Revenue Monitoring to 30 September 2014
Sgrùdadh Teachd-a-steach Seirbheis an Ionmhais gu 30 Sultain 2014

There was circulated Report No. RES/57/14 dated 5 November 2014 by the Director of Finance which provided Members with information on the Finance Service Revenue Monitoring position for the period to 30 September 2014.

It was confirmed that as at 30 September 2014, the Service had incurred net expenditure of £7.795m against an annual budget of £11.643m, and that a small underspend of £0.030m was projected. The report also provided a summary in regard to the variances shown on the budget.

In response to a question, the Director of Finance clarified that some of the savings proposals for the service for 2015/16 were being delivered earlier within the current year through the management of vacant posts.

The Committee APPROVED the Finance Service Revenue Monitoring Report for the period to 30 September 2014.

5.  Corporate Capital Monitoring Report to 30 September 2014
Aithisg Sgrùdaidh a’ Chalpa Chorporra gu 30 Sultain 2014

There was circulated Report No. RES/58/14 dated 14 November 2014 by the Director of Finance which provided an overview of expenditure on the General Fund and HRA capital programmes for the period from 1 April 2014 to 30 September 2014, and the projected year end position for the 2014/15 financial year.

It was reported that the General Fund Capital Programme had a total net budget of £112.94m.  Expenditure to date was £37.542m and the estimated year end position was an overspend of £3.423m. The budget had increased by £1.467m from £111.474m as at 30 June 2014 due to additional Government funding in the Care and Learning Service for Early Learning and Child Care costs.

The gross budget for the HRA Capital Programme for the year was £51.534m, and it was anticipated that the Council house building element of the Programme would be overspent by £1.955m at the year-end due to projects progressing in advance of previously predicted timetables. This overspend would be met by increased borrowing and Government grant with a subsequent  reduction in borrowing in future years arising from the earlier than anticipated expenditure. 

During discussion the following comments were made:-  

• due to the Council’s record of slippage and to avoid large underspends the Council had a deliberate policy of over-programming and this was welcomed particularly in relation to enabling the number and standard of Council houses to be built;
• it was felt that the capital and revenue reports were not always clearly linked and clarity was sought in relation to the associated revenue borrowing costs of over-programming; and
• that a percentage for capital re-payments was accounted for short-term loans as it was explained that these were not interest only but maturity loans.

The Committee APPROVED the financial position of the General Fund and HRA Capital Programmes as at 30 September 2014.

6.  Corporate Revenue Monitoring Report to 30 September 2014
Aithisg Sgrùdaidh Teachd-a-steach Corporra gu 30 Sultain 2014

There was circulated Report No. RES/59/14 dated 14 November 2014 by the Director of Finance which presented the financial position of the revenue budgets of the General Fund and HRA as at 30 September 2014 and the projected year end position.

It was reported that the General Fund had a total annual budget allocated to Services of £574.197m; year to date actual of £214.809m; and an estimated year end position of £573.730m, giving an estimated year end underspend of £0.467m (0.08%). The report provided a summary of the variances across the General Fund.  In regard to the HRA revenue budget, it was anticipated that this would be on budget at the end of the financial year.

In presenting the report, the Director of Finance drew attention to paragraph 3.1 of the report and explained that he had a statutory responsibility to inform Members of the risk that NHS Highland was currently forecasting an overspend of £1.5m against the Council’s funding allocation for Adult Care Services and reasons for this included savings still to be identified and also growth in client numbers and further information was being sought on this.  A report on this was being submitted to the Board of NHS Highland which indicated a further reduction in the overspend to £1m which was a significant improvement.  The Board report also included a financial recovery plan seeking to address the current financial position which included Adult Care.  Therefore, the Director of Finance explained to Members that the Corporate Revenue Monitoring report assumed that NHS Highland would achieve a balanced budget position but he felt it was important to highlight the risks attached to this should this not be achieved.

During discussion the following main points were raised:- 

• it was highlighted that the current forecast overspend in the funding allocation for Adult Care services should have been detailed under the risk implications section of the report;
• concern was raised in relation to the unachieved savings, particularly relating to the Education Service and whether these savings were unrealistic and would have a cumulative effect on pressure at the end of each financial year;
• unachieved savings across all services needed to be identified before agreeing what savings should be carried forward and the Director of Finance confirmed that he would he start to report on this with effect from the new financial year (2015/16);
• due to the requirement for further savings, increased attention was being made to the unachieved savings which were currently addressed in each service report but was expected in most cases to achieve a balanced budget at the year-end;
• further information not detailed in the report was sought on the Non-Domestic Rates budget which was expected to be overspent by £103,000 and the Director of Finance confirmed he would provide this;
• it was suggested that more advertising of the Discretionary Housing Payments (DHP) fund could be done to increase the uptake and reduce the underspend;
• the increase in the underspend of the loans fund budget was welcomed and the reasoning was queried for the reduction of £608,000 in the unallocated budget since the last Committee.  The Director of Finance provided an explanation for this and advised that movement in funds would be evidenced in future reports;
• whilst the provision for Gaelic Medium Education was welcomed concern was raised in relation to the cost of providing school transport, buses and taxis and what commitment the Council had to provide free school transport.  It was explained that there was no catchment area for Gaelic schools and as a result the Council had a requirement to provide free transport.  However, it was felt that this created a discrepancy with pupils that had to pay transport costs to attend English speaking schools. Although the commitment and choice of parents to send their children to Gaelic Medium Education was commended, it was suggested consideration should be given to asking parents to extend their commitment by contributing towards travel costs.  It was proposed that the policy on School Transport and information on the associated costs should be circulated to Members and it was further requested that this also include the cost of providing transport to domination schools;
• in relation to the pressure in the Catering, Cleaning and Facilities Management and the overspend which was recently reported it was felt that, considering it was a pilot scheme, a report detailing the advantages and disadvantages should have been presented before it was rolled out, however this issue was being reviewed by the Education, Children and Adult Services Committee;
• it was useful to debate the problems and pressures and the Education, Children and Adult Services Committee had identified four main areas of pressure which related to transport, looked after children, additional support needs and catering, cleaning and facilities management; and
• caution should be exercised in relation to the continued favourable interest rates and delayed need for long term borrowing.

The Committee:-

i. APPROVED the financial position of the General Fund and HRA revenue budgets as at 30 September 2014;
ii. NOTED the predicted year end net underspend of £0.467m; and
iii. AGREED that the policy on School Transport and information on the associated costs be circulated to Members.

7.  Treasury Management - Summary of Transactions
Geàrr-chunntas de Ghnothaichean Rianachd Ionmhais

There was circulated Report No. RES/60/14 dated 14 November 2014 by the Director of Finance which provided details on the treasury management transactions undertaken to 30 September 2014 and was submitted to Committee in compliance with CIPFA's Code of Practice on Treasury Management and the Council's approved Financial Regulations. 

The Committee APPROVED the Treasury Management Summary of Transactions reports to 30 September 2014.

8.  Welfare Reform Report                                                                                                  
Fios às Ùr mu Ath-leasachadh Shochairean

(i) Update
Fios às Ùr

Declarations of Interest - Mr A Christie declared a non-financial interest in this item as General Manager and Company Secretary of Inverness, Badenoch & Strathspey Citizens Advice Bureau and Ms J Douglas declared a non-financial interest in this item as a volunteer and member of the Steering Group of the Badenoch and Strathspey Foodbank, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that their interests did not preclude them from taking part in the discussion. 

There was circulated Joint Report No. RES/61/14 dated 17 November 2014 by the Director of Finance and the Director of Community Services which provided information on the current status of Universal Credit and other Welfare initiatives. It also provided financial monitoring information for 2014/15, covering the Council’s considerable involvement in this area of work.

During discussion concern was raised in relation to the Council Tax Reduction Scheme and the underspend of £0.551m and also in relation to the high proportion  of Council tenants affected by Universal Credit  who were currently in arrears with their rent.  In view of this, the Chairman requested that a meeting be scheduled with the Department for Work and Pensions to address this issue.

The Committee NOTED:-

i. the impact that Universal Credit was having on Council tenants and the planned activities to support these tenants;
ii. the progress being made to make next generation broadband available to more businesses and residents in the Highlands;
iii. a Private Member’s Bill being taken forward to exempt certain groups from the Under Occupancy rules;
iv. mitigation action being taken to support the most vulnerable individuals and families across the Highlands; and
v. the significant expenditure on welfare and the budget available to enable further mitigating actions to be implemented.

The Committee also AGREED that a meeting be arranged with the Department for Work and Pensions to discuss the impact of Universal Credit on Council tenants.

(ii)  Welfare Fund Proposals
Molaidhean

Declarations of Interest - Mr A Christie declared a financial interest in this item as General Manager and Company Secretary of Inverness, Badenoch & Strathspey Citizens Advice Bureau and Ms J Douglas declared a non-financial interest in this item as a volunteer and member of the Steering Group of the Badenoch and Strathspey Foodbank, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that their interests did not preclude them from taking part in the discussion. 

There was circulated Joint Report No. RES/62/14 dated 18 November 2014 by the Director of Finance and the Head of Policy and Reform which recommended an allocation of £163,920 from the Council’s Welfare Fund of £1.167m to support enhanced services for vulnerable people.  The report also advised that further proposals were under development for the remainder of the Fund, guided by the Council’s Welfare Reform Working Group. 

During discussion, the following comments were raised:-  

• the creation of a Welfare Fund was helpful in developing a more strategic approach towards provision of support services for vulnerable people;
• the opportunity to meet with Mr Stollar, Chair of the Joseph Rowntree Foundation was welcomed. The Rowntree Foundation had recently published a new strategy document, A UK without Poverty, and the document called for a new approach to the eradication of poverty, it highlighted the need to rethink approaches to poverty. It was further suggested that it was an interesting document and would be helpful if it was circulated to Members of the Council. It was further commented that there was an explicit need to openly discuss poverty and to work towards zero poverty in the Highlands;
• with regard to the Ross-shire midwifery early intervention project it was vital that work with new and expectant mothers continued;
• it was important that every effort was made to maximise benefits from the European Union;
• there was concern about how to make best use of the available funds and this raised questions about assessment and priority of those vulnerable claimants;
• the Welfare Reform Working Group would welcome the opportunity to scrutinise the feedback and financial implications of the Welfare Fund.  It was crucial that the monies allocated delivered the correct outcomes;
• the need for more descriptive work to be undertaken, perhaps twice a year, which included impact assessments and for the Council’s outcomes to be reviewed was highlighted.  The Chairman proposed that a seminar, which would be open to all Members, should be arranged to look in more detail on the impact of Welfare Reform on Highland and Scotland wide with a focus on social justice and poverty; and
• concern was expressed at the changing language being used in respect of underprivileged people and there was a need to develop a coherent policy on how to move towards the eradication of poverty in the Highlands as a matter of urgency.

Thereafter, the Committee:-

i. APPROVED funding for two proposals from the Council’s Welfare Fund, namely to provide tailored welfare advice clinics through the CAB network from January 2015 to the end of March 2016 to be run in GP surgeries, mental health drop in centres, other local facilities and New Craigs hospital, covering all Council wards, with total funding of £160,920; and £3,000 to provide up to 10 training events for front-line workers in responding to people presenting with mental ill-health;
ii. NOTED that further proposals would be developed and brought back to Committee for consideration as outlined in paragraph 3.1 of the report, and with the scope for EU programme funding explored;
iii. AGREED that the Council sought access to the DWP’s local support services framework to enable a smoother transition for welfare reform changes;
iv. AGREED that a social justice and poverty seminar be arranged for all Members which would include information on the impact of Welfare Reform on Highland and how this compared to the rest of Scotland; and
v. AGREED that a link to the Joseph Rowantree strategy document ‘A UK Without Poverty’ and the report that identified the six Council priorities for responding to welfare reform which was presented to a meeting of the Welfare Reform Working Group be circulated to Members.

9.  Finance Service Quarterly Performance Report
Aithisg Dèanadais Ràitheil Seirbheis an Ionmhais

Declarations of Interest - Mr A Christie declared a non-financial interest in this item as General Manager and Company Secretary of Inverness, Badenoch & Strathspey Citizens Advice Bureau but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that his interest did not preclude them from taking part in the discussion.

There was circulated Report No. RES/63/14 dated 5 November 2014 by the Director of Finance which provided a summary of key and statutory performance indicators for the Finance Service as at 30 September 2014.

The report provided performance monitoring details on the council tax in-year collection rate; non domestic rates in-year collection rate; the business improvement district levy; benefits administration – speed of processing; customer income maximisation; money advice; national recruitment portal; travel desk; single grant applications; payment of invoices, and attendance management.

In discussion, it was suggested that an advertising campaign should be considered to increase the take-up of Council tax payments made by direct debit.

The Committee NOTED the statutory and key performance indicators.

10.  Capital Discretionary Fund – Halkirk Sports Facility
Maoin Calpa fo Ùghdarras – Goireas-Spòrs Hàcraig

Declaration of Interest – Ms J Douglas declared a non-financial interest in this item as a Director of High Life Highland, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that her interests did not preclude her from taking part in the discussion.

There was circulated Report No. RES/64/14 dated 5 November 2014 by the Director of Finance which sought the Committee’s agreement to set aside the current allocated sum of £200,000 held for Halkirk Sports Facility.

During a summary of the report, it was confirmed that at the last meeting of the Resources Committee on 27 August 2014, Members had agreed to introduce new conditions to the award of any grant from the Capital Discretionary Fund. In effect this introduced a three year time limit on the drawing down of Funds. At that time the Committee was alerted to the fact that a commitment to award funding to a sports facility in Halkirk had exceeded the time limit.

Following a review by Officers it was reported that given the lack of detailed information about the project, and no recent contact with the local group, it appeared there was no likelihood of this project progressing in the near future. It was therefore proposed that the project be deleted from the list of commitments against the Capital Discretionary Fund. It was noted that this decision would not prevent the Council reviewing the position should a future revised project emerge.

In relation to a request for the funding that had been allocated to the Halkirk Sports Facility project to be used for a running track in Thurso, it was explained that any subsequent projects would be subject to a new application being made to the Capital Discretionary Fund and an update on the progress of the Thurso running track project would be presented to a future meeting of the Caithness and Sutherland Area Committee.

The Committee AGREED that the offer of £200,000 funding towards the Halkirk Sports facility be withdrawn.

11.  Strategic Change and Development Fund: Application for Funding – Care and Learning Service
Maoin Atharrachaidh is Leasachaidh Ro-innleachdail: Iarrtas airson Maoineachadh – Seirbheis a’ Chùraim is an Ionnsachaidh

There was circulated Report No. RES/65/14 dated 5 November 2014 by the Director of Finance which sought a funding contribution of £180,000 from the Strategic Change and Development Fund to deliver transformational change across the Care & Learning Service.

It was reported that the Care and Learning Service faced particular challenges over the next few years due to existing pressures on the Service, new developments and the need to deliver significant financial savings.  Budget savings proposals for the Service totalled £17.2m and represented 3.3% of the total budget.  Additional proposals were currently being considered to increase the total savings proposal. The Service would also contribute to number of corporate efficiency projects to deliver transformational change across the Council.

It was therefore proposed to second two officers to the Service to provide the necessary support over the next 18 months. The estimated cost, subject to formal evaluation of the posts, was £180,000 and the proposal was to fund these posts from the Strategic Change and Development Fund, given that the proposal met the Fund’s criteria, details of which were set out in the report.

During discussion the following points were raised:-  

• concern was expressed in relation to the requirement of these two posts particularly in light of recent changes to budget proposals;
• further information was sought including details of the remit of the two posts and salary level so that a proper assessment of the criteria set by the fund could made;
• the Corporate Improvement Programme (CIP) was in place to deliver savings across all services, and examples of a number of these projects were given at the meeting, and these two posts would add to a team to make transformational savings which were part of the budget savings;
• it was clarified that following revision of the Scheme of Delegation, authority had been delegated to Chief Officers to deal with staffing changes on an operational basis and organisational changes would be reported to the Committee on an annual basis.  However, this report was presented because it was an application for specific funding from the Strategic Change and Development Fund;
• managers with good planning skills and the ability to cope with change management were sought to transform the service within budget and with particular oversight of early years collaborative working, asymmetric timetable, distance learning, looked after children and embedding the family in district teams;
• the proposal was a spend to save measure to ensure efficiencies and savings were made in the Care and Learning budget which was two thirds of the Council's total revenue budget;
• the contract was fixed for 18 months and any extension to this contract period would require further Committee approval;
• some of the transformational changes the posts would be responsible for implementing were savings proposals that had been included in the budget consultation which had not yet been agreed by Council and it was therefore felt that this request was pre-emptive.  However, it was clarified these two posts would work on savings proposals that had already been agreed;
• there was a need to plan ahead to allow for time to advertise, interview and recruit to meet the savings targets in the first year and over the next four years;
• concern was expressed in regard to the public perception of funding two posts at a cost of £180,000 when there was an ongoing review to close service points.  However, it was highlighted that this was a spend to save measure reflecting the large savings that needed to be made in the Care and Learning Service;
• work was ongoing to introduce the asymmetric timetable with some schools already using it and others intending to, as head teachers had the ability to introduce the timetable, regardless of the Council's decision on the budget;
• changes to school timetabling arrangements were about ensuring teachers could teach for their full contracted teaching hours;
• the Strategic Change and Development Fund was created from the Council's reserves following a unanimous decision by Council and the proposal to fund two posts needed to match the criteria set; and
• the posts could not undertake savings proposals not yet agreed but could work on transformational changes to the Care and Learning Service. It was requested that the words “financial savings” be replaced with “transformational change” within the recommendation.

Following discussion, the Committee AGREED the allocation of £180,000 from the Strategic Change and Development Fund to support the delivery of transformational change for the Care and Learning Service and NOTED that two officers would be seconded to the Service for 18 months and any extension to this contract period would require Committee approval.

12.  Internal Audit Report – Finance Service: Housing Benefits Payments 2013/14 
Aithisg In-sgrùdaidh – Seirbheis an Ionmhais: Pàighidhean Shochairean Taigheadais 2013/14

There was circulated Report No. RES/66/14 dated 5 November 2014 by the Director of Finance which provided the outcomes of Internal Audit’s work on Housing Benefit Payments in 2013/14.

It was reported that the Internal Audit Report set out at Appendix 1 to the report and had been presented to the Audit and Scrutiny Committee on 24 September 2014. The Audit opinion was one of ‘substantial assurance’ and the Action Plan contained three recommendations graded at medium priority, all of which had been agreed by management. It was confirmed that those recommendations set out in the Action Plan which were due to be completed by the date of the meeting, had been completed.

The Committee NOTED the findings of the Internal Audit Report on Housing Benefit Payments 2013/14 presented to Audit & Scrutiny Committee on 24 September 2014, and the actions being taken to implement its findings.

13.  Mileage Claims by Members and Employees
Tagraidhean Siubhail bho Bhuill agus Luchd-obrach

There was circulated Report No. RES/67/14 dated 5 November 2014 by the Director of Finance which provided details on mileage claims submitted by Members and employees and provided an opportunity to reduce the cost of Members’ mileage allowances without financial impact on individual Members.

In regard to Members expenses it was reported that these were governed by legislation and that VAT could be recovered on mileage claims where a VAT receipt was attached to the claim form. Total expenses had reduced by £32,573 (10.1%) over the five year period between 2009/10 and 2013/14, mainly due to reimbursed mileage.  In 2013/14 the sum of £5,993 had been recovered following the submission of receipts.  If receipts had been attached to all claims then an additional sum of £4,200 could have been recovered.

In regard to employees’ expenses, the Council determined the mileage re-imbursement rate to employees which was approved by HMRC. The available data showed an overall reduction of £444,000 (15.9%) in reimbursed mileage over the period 2010/11 to 2013/14 and it was reported that VAT was fully recovered from the employee claims as the relevant receipts were required to be attached to claim forms.

During discussion, the following comments were raised:-  

• Members were only required to attach enough VAT receipts to cover their allowance and not all mileage claims so more could be done to enforce Members to attach VAT receipts to all mileage claims;
• attaching VAT receipts was also the practice of the previous Council which new Members might not have been aware of and it would be beneficial to communicate this to all Members;
• it should be should be acknowledged under rural implications the impact on employees and Councillors who lived in remote areas and travelled large distances and as a consequence were subject to a reduced mileage re-imbursement rate over 10,000 miles;
• the UK taxation system did not recognise people who lived remotely which had a detrimental impact on volunteer drivers for patient transport and it was therefore suggested that, alongside NHS Scotland and the Scottish Ambulance Service, these concerns should be expressed to HMRC; and
• the introduction of Area Committees and the increase in car sharing and use of video-conferencing were all reasons for reduced travel and thus reduced travel expenses.

 In response to a question it was explained the Members’ Scheme of Approved Duties was approved at Council so there was some flexibility in what could legitimately be agreed.

The Committee:-

i. NOTED the reduction in mileage claims for both Members and employees over the past five years and four years respectively; and
ii. AGREED that Members attach VAT receipts to all mileage claims and that the requirement for this be communicated to all Members.

14.  Banking and Related Financial Transactions – Authorised Signatories
Gnothachasan Ionmhasail Bancaireachd is a’ Buntainn ri Bancaireachd – Luchd-soidhnigidh Ùghdarraichte

There was circulated Report No. RES/68/14 dated 10 November 2014 by the Director of Finance which addressed the matter of Officers appointed to authorise banking and related financial transactions on behalf of the Council, in compliance with the Council’s Financial Regulations.

The Committee APPROVED the following Officers as authorised signatories for banking and related financial transactions:- 

• Derek Yule – Director of Finance
• David Robertson – Head of Corporate Finance
• Nigel Rose – Head of Internal Audit and Risk Management
• Allan Gunn – Head of Revenues and Business Support

15.  Consideration of Debts to be Written-Off
Beachdachadh air Fiachan airson an Dubhadh Às

As previously indicated, the Committee had AGREED that this item be deferred to the next meeting and that the additional briefing information on this report be circulated to the Committee.

CORPORATE DEVELOPMENT SERVICE

16.  Corporate Development Service Capital Budget Expenditure Monitoring to 30 September 2014
Sgrùdadh Calpa Seirbheis an Leasachaidh Chorporra gu 30 Sultain 2014

Declarations of Interest - Mr A Mackinnon declared a financial interest in this item on the grounds that his wife was an employee of the Council based in the Dingwall Offices, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that his interest did not preclude him from taking part in the discussion. 

There was circulated Report No. RES/70/14 dated 13 November 2014 by the Depute Chief Executive/Director of Corporate Development which set out the position for the Corporate Development Service 2014/15 capital budget for the period to 30 September 2014.

It was reported that an underspend of £0.187m was projected at the end of the financial year, which represented an increase of £0.036m on the position reported to the previous meeting. The increased underspend was due to the fact that spend on Service Point Improvements was dependant on the outcome of the Customer Services Review which was due in Spring 2015.

It was also confirmed that the Unified Communications pilot project, which had been delayed due to technical issues, had now been rolled out to staff in the Dingwall Offices and subject to the completion of a successful pilot review, the intention would be to start deployment to the wider Council early next year.

In response to a question it was confirmed that the slippage which would occur as a result of the Customer Services Review would be from the current year into financial year 2015/16.

The Committee NOTED the capital monitoring report for the period to 30 September 2014.

17.  Corporate Development Service Revenue Expenditure Monitoring to 30 September 2014   
Sgrùdadh Teachd-a-steach Seirbheis an Leasachaidh Chorporra gu 30 Sultain 2014

There was circulated Report No. RES/71/14 dated 12 November 2014 by the Depute Chief Executive/Director of Corporate Development which provided information on the revenue monitoring position for the Corporate Development Service for the period 1 April 2014 to 30 September 2014.

During a summary of the report it was explained that the Service was projecting a small overspend of £0.083m at the end of the financial year. This was an improvement on the predicted out-turn reported to the last Committee on 27 August 2014 when a projected overspend of £0.127m had been reported. The improved outturn had been achieved by a combination of vacancy management and increased income due to Landlord Registration income being higher than anticipated.

It was reported that as previously explained to Members, the Service overspend was primarily caused by a pressure in Licensing with the income target being higher than the predicted income level. This would be resolved in next year’s budget by adjusting the budgeted income to reflect the anticipated reduction in licences. However, in the current year, the Service would continue to work to offset this pressure by reducing expenditure across other budgets, to achieve at least a balanced budget by the end of the financial year.

In discussion it was reported that the variance shown under the Depute Chief Executive’s budget heading related mainly to year end re-charges across the Service which were held under this cost centre.

The Committee NOTED the revenue monitoring report for the period 1 April 2014 to 30 September 2014.

18.  Corporate Development - Statutory Performance Indicators, Quarterly Performance Report         
Aithisg Dèanadais Ràitheil an Leasachaidh Chorporra

Declarations of Interest - Mr A Mackinnon declared a financial interest in this item on the grounds that his wife was an employee of the Council based in the Dingwall Offices, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that his interest did not preclude him from taking part in the discussion.

There was circulated Report No. RES/72/14 dated 14 November 2014 by the Depute Chief Executive/Director of Corporate Development which provided quarterly Statutory Performance Indicators for Quarter 2 of 2014/15 for the Corporate Development Service in regard to sickness absence and the payment of invoices. It also provided data trends and a statistical breakdown of long terms absence for all Council Services.

During a summary of the report it was explained that across the Council, 73% of days lost were due to long term absence. In this regard information was  provided on the actions and initiatives being undertaken by the Service, supported by Occupation Health, to reduce and manage absence. In regard to the payment of invoices it was confirmed that the Service was exceeding the Council’s target. In terms of the performance indicators for sickness absence the Service continued to be below the Council average.

In discussion a point was raised in regard to the importance of ensuring there was equal access to occupational health across the Council’s Services.

The Committee NOTED the continued improvement in performance in relation to sickness absence and payment of invoices.

19.  Corporate Improvement Programme
Prògram Leasachaidh Chorporra

(a) Corporate Improvement Programme - Progress Report
Aithisg Ràitheil Prògram an Leasachaidh Chorporra

There was circulated Report No. RES/73/14 dated 17 November 2014 by the Depute Chief Executive/Director of Corporate Development which explained that the Corporate Improvement Programme (CIP) was progressing with a target to achieve £5.98m in efficiency savings for the period 2013/14 & 2014/15.  In addition, the process for aligning the next programme of work with the corporate budget setting process was underway.

A progress update was also provided in respect of the following projects:- Asset Management; Business Support; Customer Contact Transformation; Income Generation Project; Transport Programme; Managing Information; Mobile & Flexible Working and Procurement and work being undertaken to plan for future programme developments.

The Committee NOTED the:-

i. progress with the delivery of the Corporate Improvement Programme;
ii. action being taken to ensure savings were delivered on target; and
iii. development of a new Transformation Programme as part of the 2015-19 Budget Strategy.

(b) Income Generation Project Update
Pròiseact Togail Teachd-a-steach

There was circulated Report No. RES/74/14 dated 12 November 2014 by the Director of Development and Infrastructure which provided an update on the Income Generation Project and the proposal to appoint a Commercial Manager to drive forward the initiative to increase the Highland Council’s ability to generate income.

During discussion the following points were raised:-  

• that a risk analysis should be undertaken around the proposal to appoint a Commercial Manager particularly given that if the post holder did not generate the income to cover the cost of the post then it would become a cost to the Council; in addition no income targets had been set in relation to the post;
• that there was considerable potential to generate more income from the renewables stream and that the Council should be more ambitious in terms of its proposals in this regard, for example the opportunities to use Council owned properties to generate solar power;
• that where proposals involved the development of renewable energy projects on Common Good land or property that a process be put in place to ensure that the relevant Common Good Fund received benefits from the income generated by these projects; 
• it was important for the Council to be ambitious and drive forward initiatives to increase income generation and it was suggested that investing in the appointment of a Commercial Manager was a key element of the Income Generation project going forward;
• a point was raised in regard to whether benchmarking had been undertaken with other local authorities in terms of their approach to income generation and the levels of income being generated;
• it was suggested that there was a need to be more innovative in regard to the development of initiatives under the Income Generation Project and it was suggested that the current proposals did not justify the appointment of a Commercial Manager; and
• that while the principle of the proposal was supported, a decision on the appointment of a Commercial Manager should be deferred to allow more detailed information to be provided to Members on the proposed funding and contractual arrangements, and the income targets to be set in respect of the post.

The Committee NOTED the income generated to date by the Income Generation Project and AGREED:-

i. that where proposals involved the development of renewable energy projects on Common Good land or property that a process be put in place to ensure that the relevant Common Good Fund received benefits from the income generated by these projects; and
ii. to defer the appointment of a Commercial Manager to allow a further report to be submitted to the next meeting of the Committee on 21 January 2015, providing more detailed information on the proposed funding and contractual arrangements, and the income targets to be set in respect of the post.

20.  Highland Council Engagement and Partnership Framework
Frèam Ceangal is Obair Chom-pàirteach nan Aonaidhean Ciùird

There was circulated Report No. RES/75/14 dated 12 November 2014 by the Depute Chief Executive/Director of Corporate Development which recommended the adoption and implementation of a Highland Council Engagement and Partnership Framework.

During a summary of the report information was provided on the consultation which had taken place with the trade unions in the development of the Framework, and the benefits associated with the new engagement and partnership model. It was also confirmed that as part of the Framework, the proposal was for a new Highland Council Staff Partnership Forum to replace the Joint Consultation Group, and a copy of the proposed membership and constitution of the Forum was attached at Appendix 2 to the report.

The Committee AGREED:-

i. to the adoption of the Highland Council Engagement & Partnership Framework as set out in Appendix 1 to the report;
ii. to the constitution of the Highland Council Staff Partnership Forum as set out in Appendix 2 to the report;
iii. the composition of the Highland Council Partnership Forum as set out in section 4.2, the method of operation and the dates for meetings in 2015 as set out in section 4.3 of the report; and
iv. the approach to implementation as set out in section 5 of the report.

21.      ICT Services Performance Report - March to September 2014                          
Aithisg Leth-bhliadhnail TFC Màrt gu Sultain 2014

There is circulated Report No. RES/76/14 dated 6 November 2014 by the Depute Chief Executive/Director of Corporate Development which provided an update on the key achievements of the ICT Services Team, the delivery of services by the Council’s ICT providers principally Fujitsu Services and Vodafone for the period from March to September 2014.

The report provided details of Fujitsu Services contract performance and delivery and a summary was provided of ICT Development projects delivered by Fujitsu and the Council.  Information was also provided on progress with the Community Benefits plan being delivered by Fujitsu Services. In addition details of the Vodafone Pathfinder North contract performance and the Scottish Wide Area Network Vanguard project were provided.

During discussion the following points were raised:- 

• That the continuing improvements being achieved in regard to performance on the ICT Contract be welcomed, and the relevant staff from both the Council and Fujitsu commended in this regard;
• it was important going forward that robust contract management and governance arrangements continued to be applied and pursued by the Council in regard to the Fujitsu and Vodafone contracts; and
• that clarification be provided on the current status of the rollout of the Lync solution to the pilot sites in Dingwall and this was provided by the Head of Digital Transformation at the meeting.

The Committee NOTED:-

i. the content of the report and the positive outcomes being delivered from the Contracts with Fujitsu and Vodafone;
ii. the work being undertaken in relation to the re-provisioning of ICT Services from 2016 onwards;
iii. the progress for the transitioning of the Pathfinder WAN to the SWAN;
iv. that work towards the PSN re-accreditation was underway under the governance of the PSN Project; and
v. that robust contract management and governance arrangements continue to be applied and pursued by the Council to the Fujitsu and Vodafone contracts.

22.  Smart City Initiative
Cathair-Bhailtean Glice

There was circulated Joint Report No. RES/77/14 dated 14 November 2014 by the Head of Digital Transformation and the Performance and Building Maintenance Manager which outlined the definition of a Smart City and proposed the initial steps the Highland Council could take to move towards achieving the benefits of a Smart City approach.

It was reported that as the Council’s area was geographically large and diverse in the size of communities the proposed approach was a Smart City Region which would include smaller communities outwith Inverness in the longer term. However in the shorter term it was proposed that Inverness as one of the recognised seven Cities, and which formed the Seven Cities Alliance, should be used as the pilot for any interim development under the Smart City initiative.

The report also outlined the current position in respect of the initiative, potential funding sources and the next steps. Initially it was proposed that tourism and transport be taken forward as good business areas which could span across the city/region.  It was confirmed that a further update report would be presented to the Committee in February 2015.

During discussion the following points were raised:-  

• that the Smart City Initiative should be welcomed and on the basis that it provided real benefits and opportunities to generate significant savings and secure improvements in services by avoiding duplication of work;
• that the Initiative had significant access to European funding and it was important to maximise opportunities in this regard;
• it was important that the Council, as a large rural local authority, should be at the forefront of taking forward the Smart Cities initiative as part of a City Region on the basis that its impact would extend beyond the City of Inverness to the wider Highlands;
• that consideration be given to the Badenoch and Strathspey Area being included at an early stage as part of the City Region; and
• it was important that the report to be submitted to the Committee in February 2015 detailed the full cost and resources requirements associated with the initiative together with the benefits to rural areas in addition to the City of Inverness; it was suggested that data also be gathered from other Smart Cities to demonstrate the opportunities and benefits which the Initiative could bring to the area.

The Committee NOTED:-

i. the current position and timescales; and
ii. that a further detailed report would be submitted to Committee on 25 February 2015 which would include a full review of the resource requirements and benefits.

CHIEF EXECUTIVE’S OFFICE

23. Chief Executive’s Office and Members Revenue Expenditure Monitoring to 30 September 2014
Sgrùdadh Teachd-a-steach nam Ball agus Oifis an Àrd-Oifigeir gu 30 Sultain 2014

There was circulated Report No. RES/78/14 dated 14 November 2014 by the Chief Executive which provided information on the revenue monitoring position for the Chief Executive’s Office for the period 1 April 2014 to 30 September 2014.

The report showed an annual net budget of £6.923m, of which Members’ Services accounted for £2.193m. Actual expenditure incurred to 30 September 2014 was £2.066m and £0.893m respectively. A net year underspend of £0.0123m was projected which was an increase of £0.053m on the underspend reported to the Committee in August 2014. The additional underspend was due to staff vacancies and reduced spend on discretionary budgets under the Policy and Reform budget.

The Committee NOTED the revenue monitoring report for the period 1 April 2014 to September 2014.

24. Chief Executive’s Office Capital Budget Expenditure Monitoring to 30 September 2014
Sgrùdadh Calpa Oifis an Àrd-Oifigeir gu 30 Sultain 2014

There was circulated Report No. RES/79/14 dated 17 November 2014 by the Chief Executive which set out the position for the Chief Executive’s Office 2014/15 capital budget for the period to 30 September 2014.

The report showed capital projects amounting to £0.386m for the financial year 2014/15 with a spend of £0.263m accounted for to date. A combined underspend of £0.005m was estimated for the end of the financial year which was primarily due to the sum of £0.008m being held back until 2015/16 for retention purposes in respect of the Cameron Square, Fort William project which had now been completed.

The Committee NOTED the capital monitoring report for the period to 30 September 2014.

25. Annual Progress Report on the Carbon Management Plan 2013/14
Aithisg Adhartais Bhliadhnail mu Phlana Rianachd Càrboin 2013/14

There was circulated Report No. RES/80/14 dated 14 November 2014 by the Head of Policy and Reform which reviewed the Council’s performance in meeting the targets outlined in the Carbon Management Plan (CMP) for 2013/14. This was the first report based on the new scope identified in the CMP 2013-2020. In order to ensure consistency, data for 2011/12, and 2012/13 were refreshed in line with the revised scope of the CMP, to allow comparisons to be made with 2013/14 data. This would provide a consistent baseline and reporting standard for comparing the Council’s carbon emissions.

It was reported that in 2013/14, carbon emissions had reduced by 6% compared to 2012/13, against the 3% annual target. Carbon emissions from all sectors had decreased since 2012/13, with the exception of water, waste, and street lighting where emissions showed an increase. However, as emissions increased in 2012/13 progress over two years from the baseline year of 2011/12, showed a reduction in carbon emissions of 5%, against a target of 6%.

While carbon emissions had reduced, total costs had increased from £20,202,896 (2011/12) to £20,504,950 (2013/14), primarily due to rising energy and fuel prices. By taking action to become more efficient the Council avoided costs of around £1m in 2013/14 (costs the Council would have incurred had consumption not decreased). Total costs through the Carbon Reduction Commitment Energy Efficiency scheme (CRC tax) additionally amounted to £424,560 in 2013/14, compared to £479,441 in 2011/12.

During discussion the following points were raised:-

• that the reduction of 6% in carbon emissions achieved over the period 2012/13 to 2013/14 and the figure of £1m of costs avoided in 2013/14 delivered through Carbon CLEVER should be welcomed;
• that Carbon CLEVER was contributing to healthier outcomes for people in the Highlands, and helping the Council to save money and protect services; reference was also made to the opportunities for the initiative to continue to deliver significant benefits for the Highlands into the future;
• that the initiative was not only award winning but was held by the Scottish Government as an exemplar programme, and the Carbon CLEVER team was commended on the excellent work undertaken to date;
• that the number of private and public organisations subscribing to Carbon CLEVER in the Highlands continued to increase and this demonstrated the success of the initiative;
• noting that waste audits were to be undertaken to ensure the best methodology was in place to calculate the internal waste generated by the Council and the carbon emissions arising;
• an explanation was sought on the calculations shown in the report which showed carbon emissions reduction targets by sector; and
• that further information be provided in regard to the carbon implications associated with biomass installations which might be operating below their installed capacity, and particularly in cases where other forms of energy were required to supplement the biomass supply.

The Committee NOTED:-

i. that significant progress was being made to reduce the Council’s carbon emissions, with a 5% reduction over the first two years of the CMP 2013-2020 against a 3% p.a. target;
ii. that since the baseline year, carbon emissions from energy use, staff travel, and fleet had decreased, whilst, waste, water and street lighting carbon emissions had increased; and
iii. the Year 7 (2013/14) report to the Scotland’s Climate Change Declaration.

26. Carbon CLEVER Transport Projects
Pròiseactan Còmhdhalach Càrboin Chiallaich

Declaration of Interest – Ms J Douglas declared a non-financial interest in this item as an Advisor to the Board of the Community Transport Company for Badenoch and Strathspey, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that her interests did not preclude her from taking part in the discussion.

There was circulated Report No. RES/81/14 dated 11 November 2014 by the Head of Policy and Reform which explained that making public transport more convenient and low carbon were important aspects of achieving a Carbon CLEVER Highlands. The report set out recommendations for a £10,000 contribution towards solar powered real time displays for bus stops in Badenoch and Strathspey and a proposed £15,000 contribution to the successful Green Bus Fund application by Stagecoach to match fund an electric bus charging point at Inverness bus station.

During discussion Members expressed their support for both projects and in relation to the Green Bus Fund welcomed the £1m of public and private investment in public transport in Inverness. It was also hoped that the real time bus displays for bus stops could be rolled out to other rural areas at the earliest opportunity.

The Committee APPROVED the following allocations from the Carbon CLEVER capital budget allowance:-

i. £15,000 to match fund an electric bus charging point at Inverness bus station; and
ii. £10,000 contribution towards solar powered real time displays for bus stops in Badenoch and Strathspey.

DEVELOPMENT AND INFRASTRUCTURE SERVICE

27. Highland Council Biomass Installation Performance Report
Dèanadas Ionad Bith-thomaid Chomhairle na Gàidhealtachd

There was circulated Report No. RES/82/14 dated 10 November 2014 by the Director of Development and Infrastructure which briefed Members on the annual performance of the Council biomass heating systems and described the monitoring and management of the boilers.

It was reported that at the Finance, Housing and Resources Committee on 23 January 2014 Members had requested details on the operation and maintenance of biomass boilers. Members had also requested details on the systems performance, reporting arrangements and details on failures along with arrangements to manage the provision. This report outlined the annual performance statement for 2013/14.

During discussion the following points were raised:-

• concern was expressed at the level of unplanned call outs and contractor response times over the year in response to faults with biomass systems and also in regard to the extent of the improvement areas identified for action as detailed in the report;
• that clarification be provided on whether penalties were applied to suppliers/contractors if a fault was not fixed within the time period specified in the contract or compensation sought if an alternative heating system had to be deployed pending resolution of a fault; in this regard specific reference was made to the recurring problems being experienced at Aviemore Primary School;
• it was important that the Council’s strategic plan to remove oil installations from Council premises to achieve reductions in carbon emissions included measures to ensure schools were not left without a heating supply in the event the biomass system failed;
• that further clarity be provided on the performance information shown in respect of Grantown Primary School; information was also requested on the number of call outs to Ben Wyvis Primary School since October 2013;
• that the improvement actions and areas set out in the report would deliver significant improvements in performance and should be welcomed;
• that the strategy to deploy biomass systems would deliver significant benefits to the Council in terms of cost savings and reductions in carbon emissions;
• that while the principle of biomass installations was supported, there was a need for lessons to be learned around procurement and the type of equipment purchased to ensure it was fit for purpose and that suppliers/contractors could access spare parts;
• it was important that good practice be shared between the Council and its partner organisations;
• a point in regard to whether a long term view was being taken on the availability of fuel for the biomass systems in the future and the need to ensure continued supplies;
• that clarification be provided on whether the impact on residential amenity was taken into account prior to a biomass system being installed at a site; in this regard reference was made to a specific site in Ward 15: Inverness Central where local residents had complained about noise emanating from a biomass boiler and it was confirmed this matter would be investigated at the earliest opportunity;
• that further information be provided in regard to the carbon implications associated with biomass installations if they were operating below their installed capacity and an alternative energy supply was required; and
• that arrangements be made for an interim performance report to be submitted to the Committee in six months’ time to allow Members to monitor progress.

Thereafter, the Committee NOTED the contents of the report and the improvements in performance of the biomass plants and the monitoring of the provision and AGREED that:-

i. arrangements be made for an interim performance report to be submitted to the Committee in six months’ time to allow Members to monitor progress; and

ii. noise issues associated with a biomass boiler at a specific site within Ward 15: Inverness Central, be investigated at the earliest opportunity.

28. North Highland Archives: Land at Wick Airport Industrial Estate
Tasglann Niùclasach Ceann a Tuath na Gàidhealtachd agus Nàiseanta: Fearann aig Raon Gnìomhachais Port-Adhair Inbhir Ùige

Declaration of Interest – Ms J Douglas declared a non-financial interest in this item as a Director of High Life Highland, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that her interests did not preclude her from taking part in the discussion.

There was circulated Joint Report No. RES/83/14 dated 6 November 2014 by the Director of Development and Infrastructure and the Director of Care and Learning which provided an update on progress to relocate the North Highland Archive to a new National Nuclear Archive Facility in Wick and to demonstrate best value had been obtained.

During a summary of the report, it was explained that the Resources Committee in February 2008 had agreed that the Council would dispose of a site at Wick Airport Industrial Estate to the Nuclear Decommissioning Authority (NDA) to contract a new national nuclear archive centre and a new North Highland Archive centre subject to Officers confirming that this provided best value for the Council. In this regard Members were updated on the progress of the proposed new facility which the NDA was seeking to develop in partnership and outlined the business case as to why it was considered that this offered best value for the Council.

In discussion the project was welcomed on the basis that the facility would allow the storage, return and retention of important archive material in Caithness, generate additional employment opportunities, and increase visitor numbers to the area.

The Committee:-

i. NOTED the National Nuclear Archive provided the Best Value option for the North Highland Archive; and
ii. AGREED that the negotiations of lease for land and contract for archive services be delegated to the Director of Development and Infrastructure and Director of Care and Learning.

29. Inverness Area Asset Management Plan
Plana Rianachd So-mhaoin Sgìre Inbhir Nis

There was circulated Report No. RES/84/14 dated 7 November 2014 by the Director of Development and Infrastructure which presented an overview of Corporate Property Asset Management and the development of Area Asset Management Plans. It highlighted the findings and actions in the draft Inverness Area Asset Management Plan which covered the City of Inverness Area.

During discussion the following points were raised:-

• that clarification be provided on the rationale that had been applied in identifying which of the list properties set out in Appendix 1 to the report were to be included in the scope of the review on the basis there appeared to be anomalies in terms of the exclusion of some office facilities and the inclusion of a specialist facility;
• clarity was also sought on whether the list at Appendix 1 to the report was definitive or subject to change; it was reported that the intention would be to agree the final list with the Executive Leadership Team and the Inverness Members;
• a question in regard to whether the Plan would be reported to the City of Inverness Area Committee; it was reported that intention was that the Plan would be submitted to the Resources Committee for approval and thereafter progress reports on the Action Plan reported to the City of Inverness Area Committee; and
• it was suggested that any implications/conflicts of interest in respect of property owned by the Inverness Common Good Fund be taken into account in the development of the Plan, and the appropriate governance procedures followed.

The Committee NOTED the approach to the development of Area Asset Management Plans and AGREED:-

i. the Inverness Area Asset Management Plan as a Council plan; and
ii. that any implications/conflicts of interest in respect of property owned by the Inverness Common Good Fund be taken into account in the development of the Plan, and the appropriate governance procedures followed.

MINUTES OF MEETINGS

30. Minutes of Meetings
Geàrr-chunntasan Choinneamhan

The Committee:-

i. NOTED the Minutes of the Appeals Committee held on 11 August 2014, and 6 October 2014;
ii. APPROVED the Minutes of the Joint Consultation Group (Administration Etc, Manual and Crafts Staffing) held on 24 October 2014;
iii. APPROVED the Minutes of the Central Safety Committee held on 24 October 2014; and
iv. NOTED the Minutes of the Early Retirement Sub-Committee held on 29 October 2014.

31. Exclusion of The Public
Às-dùnadh a’ Phobaill

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 and 9 of Part 1 of Schedule 7A of the Act.

32. ICT Executive Board: Minutes of Meeting
Buidheann-obrach TFC Bhall: Geàrr-chunntas Coinneimh

The Minutes of Meeting of the ICT Executive Board (Members) held on 10 November 2014 were circulated and APPROVED.

DEVELOPMENT AND INFRASTRUCTURE SERVICE

33. Land and Property
Talamh agus Taigheadas

There was circulated to Members only Report No. RES/85/14 dated 10 November 2014 by the Director of Development and Infrastructure which sought approval for a number of land and property transactions as outlined in the report.

During discussion it was noted that the local Member, Mrs E Campbell, had expressed her support for the proposal at Dornie as outlined in the report.

The Committee AGREED the recommendations as set out in the report.

The meeting ended at 2.55 pm.