25 February 2015: Resources Committee

A meeting of the Resources Committee will take place in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Wednesday 25 February 2015 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

• Scott Taylor, Finance: UK National Association of Civic Offices Award
• Marion MacLeod, Finance: Institute of Rating, Revenues and Valuation (IRRV) qualification
• Earth Hour Local Authority Champion Award 2014
• Highland Helping Those in Need – Finance: COSLA Bronze Award
• Quality Awards 2014
  - Shortlisted – Category 1 Working Together for the Economy: Cameron Square Event Space (Dot Ferguson, Chief Executive’s Office); and
  - Winner – Category 4 Working Together for Better Housing & Infrastructure: Carbon Clever Initiative (Stephen Carr, Chief Executive’s Office). 

4.  Finance Service Revenue Monitoring to 31 December 2014
Sgrùdadh Teachd-a-steach Seirbheis an Ionmhais gu 31 Dùbhlachd 2014

There is circulated Report No RES/01/15 dated 10 February 2015 by the Director of Finance which provides Members with information on the Finance Service Revenue Monitoring position for the period to 31 December 2014.

The Committee is invited to consider and approve the Finance Service Revenue Monitoring Report for the period to 31 December 2014.

5.  Corporate Revenue Monitoring Report to 31 December 2014
Sgrùdadh Teachd-a-steach Corporra gu 31 Dùbhlachd 2014

There is circulated Report No RES/02/15 dated 6 February 2015 by the Director of Finance which presents the financial position of the revenue budgets of the General Fund and Housing Revenue Account (HRA) as at 31 December 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 31 December 2014 and to note the predicted year end net underspend of £1.677m

6.  Corporate Capital Monitoring Report to 31 December 2014
Aithisg Sgrùdaidh a’ Chalpa Chorporra gu 31 Dùbhlachd 2014

There is circulated Report No RES/03/15 dated 5 February 2015 by the Director of Finance which provides an overview of expenditure on the General Fund and Housing Revenue Account (HRA) capital programmes for the period from 1 April to 31 December 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 31 December 2014.

7.  Treasury Management
Rianachd Ionmhais

(a) Summary of Transactions
Geàrr-chunntas de Ghnothaichean

There is circulated Report No RES/04/15 dated 27 January 2015 by the Director of Finance which provides details on the Treasury Management transactions undertaken within the period which is submitted to the 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 report to 31 December 2014.

(b) Mid-year Review Report 2014/15
Aithisg Ath-sgrùdadh Meadhan-bliadhna 2014/15

There is circulated Report No RES/05/15 dated 12 February 2015 by the Director of Finance which provides the Treasury Management Mid-year Review Report 2014/15 for Members’ scrutiny. In compliance with Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Treasury Management in Local Authorities, the report will also be submitted to the Council on 12 March 2015 for approval.

The Committee is invited to:-

i. to scrutinise this Treasury Management Mid-year Review Report 2014/15; and
ii. note that, in compliance with CIPFA’s Code of Practice on Treasury Management in Local Authorities, this report will also be submitted to Council for approval on 12 March 2015.

(c) Strategy Statement and Investment Statement 2015/16
Aithris Ro-innleachd agus Aithris Tasgaidh 2015/16

There is circulated Report No RES/06/15 dated 27 January 2015 by the Director of Finance which explains that the Council has adopted the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Treasury Management in Local Authorities.  A requirement of the Code is for an annual Treasury Management Strategy Statement and Investment Statement to be approved by Council for the forthcoming financial year.

In compliance with the Code, the attached Treasury Management Strategy Statement and Investment Statement for 2015/16 is submitted to Committee for scrutiny. This Statement will then be submitted to the Council for approval on 12 March 2015.

The Committee is invited to:-

i. scrutinise for their interests the Treasury Management Strategy Statement and Investment Statement for 2015/16 and the Prudential Indicators as detailed in Appendix 2 of the report;
ii. note that, in compliance with the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Treasury Management in Local Authorities, the attached Treasury Management Strategy Statement and Investment Statement for 2015/16 will subsequently be submitted to the Council for approval in March 2015; and
iii. approve a change to the Highland Council’s list of counterparties to include non-UK Banks with high credit worthiness and based within countries with an AAA+ or AA+ rating.

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

(a) Update
Fios as Ùr

There is circulated Joint Report No RES/07/15 dated 6 February 2015 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 and consider:-

i. the Universal Credit go-live sites from mid-February 2015 for single claimants and Department for Work and Pensions (DWP) intention to roll out Universal Credit for families by February 2015;
ii. the ongoing planning, engagement and scheduled training with various stakeholders for the expansion of Universal Credit in Highland;
iii. that the Head of Revenues and Business Support is negotiating a new District Partnership Agreement to support closer working with the DWP;
iv. that a formal response has been submitted by officers in respect of DWP’s consultation re Universal Credit data sharing between DWP and local support providers; and
v. the management information and budgetary position provided in the appendices to the report.

(b) Welfare Reform Fund Proposals
Tairgsean dhan Mhaoin Shochairean

There is circulated Joint Report No RES/08/15 dated 16 February 2015 by the Director of Finance and the Head of Policy and Reform which recommends an allocation of £153,645 from the Council’s Welfare Fund, which currently totals £1.003m to provide preventative advice services. 

Further proposals will continue to develop 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:

a. the roll out of the midwifery project for expectant mothers from Ross-shire to all of Highland to be delivered through the CAB network for a year initially and with an allowance of up to £90,000; and
b. to identify and support those under-claiming benefit by the recruitment of two time limited posts for 12 months for the in-house income maximisation team at the cost of £63,645.

ii. note that further proposals for the remaining £849,435 in the fund will 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; and
iii. note that new work is underway to understand the potential impact of welfare reforms on Council staff, particularly those receiving lower pay.

9.  Applications to the Capital Discretionary Fund
Maoin Calpa fo Ùghdarras

(a) Tain Common Good – Alexandra Bridge Refurbishment
Drochaid-coise Alexandra, Ionad-coimhearsnachd Bhaile Dhubhthaich

There is circulated Joint Report No RES/09/15 dated 4 February 2015 by the Director of Finance and the Head of Policy and Reform which provides an update on the positon in relation to the Alexandra Bridge, Tain. The report outlines the budget implications resulting from the higher than expected tenders submitted for refurbishment work and the work done to identify an improved funding package to allow the proposed bridge refurbishment work to proceed.

The Committee is invited to approve additional contributions of £10,000 from the Capital Discretionary Fund and £76,670 from the Tain Common Good Fund to enable the bridge refurbishment to be undertaken.

(b) Merkinch Community Centre
Mhargadh na h-Innse

There is circulated Joint Report No RES/10/15 dated 12 February 2015 by the Director of Finance and the Head of Policy and Reform which seeks £15,000 capital support from the capital discretionary budget to replace the single glazed windows for the playroom and the Skinner room in the building and to purchase a bicycle rack and new signage.

The Committee is invited to approve the award of £15,000 from the Capital Discretionary Fund for the year 2014/15 as match funding to the contribution from the Inverness Common Good Fund towards the total project cost of £30,000.

10.  Carbon CLEVER Community Grant Fund
Sgeama Thabhartasan Coimhearsnachd Càrboin Ciallaich

There is circulated Report No RES/11/15 dated 17 February 2015 by the Head of Policy and Reform which asks Members to consider and agree the proposed arrangements for localising the Carbon CLEVER Community Grant fund in 2015/16.

The Committee is invited to agree:-

i. the Carbon CLEVER Community grant fund assessment criteria (Appendix 1);
ii. whether to have a single or variable closing date for applications (Appendix 2);
iii. the delegation of decision making to Area Committees for all applications, with the Scheme amended at the next opportunity;
iv. the funding allocations to Area Committees based on local electoral and area governance arrangements (Appendix 3);
v. the proposals for dealing with any potential underspend (paragraph 3.3); and
vi. that the process is reviewed and improvements incorporated for 2016/17.

11.  Internal Audit Reports
Aithisg In-sgrùdaidh

(a) Review of the Oracle Financials System
Ath-sgrùdadh de Shiostam Ionmhais Oracle

There is circulated Report No RES/12/15 dated 2 February 2015 by the Director of Finance which provides the outcomes of the Internal Audit’s work on the Oracle Financial Management Information System.

The Committee is invited to note the findings of the Internal Audit Report on Oracle Financials presented to the Audit and Scrutiny Committee on 20 November 2014, and the actions being taken to implement its findings.

(b) Matters Arising from the Statement of Internal Control 2013/14
Gnothaichean Ag Èirigh bho Aithris In-Smachd 2013/14

There is circulated Report No RES/13/15 dated 3 February 2015 by the Director of Finance which provides the outcomes of the Internal Audit’s work on the Matters Arising from the Statement of Internal Control.

The Committee is invited to note the findings of the Internal Audit Report on the Matters Arising from the Statement of Internal Control presented to the Audit and Scrutiny Committee on 20 November 2014, and the actions taken to implement its findings.

12.  Procurement Policy and Strategy 2015 to 2020
Ro-innleachd Solair 2015 gu 2020

There is circulated Report No RES/14/15 dated 12 February 2015 by the Director of Finance which presents the Council’s high level intentions and aspirations in respect of outcomes delivered through Procurement work across the Council for the next five years and recommends a long term strategy based on the Council’s values and sets out at a strategic level how Procurement will deliver those values.

The Committee is invited to approve the Council’s Procurement Policy and Strategy 2015 to 2020.

13.  Audit Scotland Review of Procurement in Scottish Local Authorities
Sgrùdadh Alba Aithisg mu Sholar Ùghdarrais Ionadail

There is circulated Report No RES/15/15 dated 10 February 2015 by the Director of Finance which presents the Council’s proposed responses to the above report and recommends that Members agree to the actions listed at Annex A to the report in dealing with the report’s findings.

The Committee is invited to approve the proposed response to the Audit Scotland Review of Procurement in Local Authorities.

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

At the Resources Committee meeting in 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/16/15 dated 11 February 2015 by the Director of Finance and Head of Corporate Governance which advises 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.

15.  Corporate Development Service Revenue Expenditure Monitoring to 31 December 2014
Sgrùdadh Teachd-a-steach Seirbheis an Leasachaidh Chorporra gu 31 Dùbhlachd 2014

There is circulated Report No RES/17/15 dated 12 February 2015 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 31 December 2014.

The Committee is invited to consider the revenue monitoring report for the period 1 April 2014 to 31 December 2014.

16.  Corporate Development Service Capital Budget Expenditure Monitoring to 31 December 2014
Sgrùdadh Calpa Seirbheis an Leasachaidh Chorporra gu 31 Dùbhlachd 2014

There is circulated Report No RES/18/15 dated 12 February 2015 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 31 December 2014.

The Committee is invited to consider the capital monitoring report for the period to 31 December 2014.

17.  Corporate Improvement Programme 
Prògram Leasachaidh Chorporra

(a) Corporate Improvement Programme - Progress Report
Prògram Leasachaidh Chorporra – Aithisg Adhartais

There is circulated Report No RES/19/15 dated 11 February 2015 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 and 2014/15. In addition, the process for delivering the agreed transformation and savings programme, as agreed by Council in December 2014, is underway.

The Committee is invited to:-

i. note progress with the delivery of the Corporate Improvement Programme; and
ii. agree the action being taken to ensure savings are delivered.

(b) Income Generation– Commercial Manager Appointment
Cruthachadh Teachd-a-steach – Cur an Dreuchd Manaidsear Malairteach

There is circulated Report No RES/20/15 dated 11 February 2015 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 progress made to date and the creation of a new Commercial Manager role.

18.  Digital First
Digital First

(a) Digital First Programme
Prògram Digital First

There is circulated Report No RES/21/15 dated 12 February 2015 by the Depute Chief Executive/Director of Corporate Development which sets out the Digital First programme, which will deliver £1.3m savings over the next 4 years as agreed in the budget on 18 December 2014.  The outcome of the Digital First programme is that all customers will have access to Highland Council’s services on-line, with at least 40% of transactions carried out online by April 2017.  This will be delivered through redesigning processes, increasing the availability of online services and encouraging more customers to access council services digitally.

The Committee is invited to:-

i. agree the Digital First principles;
ii. agree to nominate up to six Member Digital Champions;
iii. agree £138,000 from the Strategic Change & Development Fund to fund the cost of two temporary officers to work within the project team;
iv. note the outcomes, activity and benefits to be delivered by the Digital First Programme.

(b) Website Review Report
Làrach-lìn – Measadh Sia Mìosan

There is circulated Report No RES/22/15 dated 10 February 2015 by the Depute Chief Executive/Director of Corporate Development which provides an update on the current status of the website and an analysis of recent survey results from the Communities and Citizens Panels, following the launch of the new Highland Council Website in July 2014.

The Committee is invited to note the report and agree the necessary actions to be taken to improve the website further and to respond to feedback.

19.  Gender Equalities in Employment
Co-ionannachdan Gnè ann an Cosnadh 2015

There is circulated Report No RES/23/15 dated 6 February 2015 by the Depute Chief Executive/Director of Corporate Development which provides an update on the Highland Council’s gender equal pay gap and Women in Management activities, and seeks approval to publish information in order to meet the duties of the Equality Act 2010 (Specific Duties) (Scotland) Regulations 2012.

The Committee is invited to:-

i. note improvements in the statistics relating to the gender pay gap and approve these for publishing on 30 April 2015;
ii. note actions being taken under the Women in Management Programme; and
iii. agree a joint working group with the trade unions to carry out a review of gender equality action plans and sustain improvement.

20.  Information Management Strategy and Policy Framework Annual Review    
Ro-innleachd Rianachd Fiosrachaidh agus Ath-sgrùdadh air Frèam Poileasaidh Rianachd Fiosrachaidh

There is circulated Report No RES/24/15 dated 10 February 2015 by the Depute Chief Executive/Director of Corporate Development which provides Members with information on the annual review of the Information Management Strategy for 2013-2017 and a range of policies that make up the Information Management Policy Framework. It also provides an update on progress made in implementing the Information Management Strategy.

The Committee is invited to:-

i. note the update on the strategic initiatives;
ii. approve the updated Information Management Strategy 2013-2017; and
iii. approve the updated Policies.

21.  Annual Review of ICT Acceptable Use Policy
Ath-sgrùdadh air Poileasaidh Cleachdadh TFC ris a Bheilear Deònach Gabhail

There is circulated Report No RES/25/15 dated 10 February 2015 by the Depute Chief Executive/Director of Corporate Development which informs Members of the proposed changes arising from the annual review of the Council’s ICT Acceptable Use Policy (AUP) and requests Members to consider and approve the revised ICT Acceptable Use Policy.

The Committee is invited to:-

i. note the proposed changes to the ICT Acceptable Use Policy following the annual review; and
ii. approve the ICT Acceptable Use Policy.

22.  Chief Executive’s Office and Members Revenue Monitoring to 31 December 2014
Sgrùdadh Teachd-a-steach Oifis an Àrd-Oifigeir agus nam Ball gu 31 Dùbhlachd 2014

There is circulated Report No RES/26/15 dated 12 February 2015 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 31 December 2014.

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

23.  Chief Executive’s Office Capital Budget Expenditure Monitoring to 31 December 2014
Sgrùdadh Calpa Oifis an Àrd-Oifigeir gu 31 Dùbhlachd 2014

There is circulated Report No RES/27/15 dated 12 February 2015 by the Chief Executive which sets out the position for the Chief Executive’s Office 2014/15 capital budget for the period to 31 December 2014.

The Committee is invited to consider the capital monitoring report for the period to 31 December 2014.

COMMUNITY SERVICES
SEIRBHEISEAN COIMHEARSNACHD

24.  Health and Safety Executive: Improvement Notices
Control of Vibration at Work Regulations 2005
Roinn-ghnìomha na Slàinte is Sàbhailteachd: Brathan Leasachaidh
Riaghailtean Smachd air Crith aig an Obair 2005

There is circulated Report No RES/28/15 dated 11 February 2015 by the Director of Community Services which provides an update on the Improvement Notices served on The Highland Council on 30 January 2015 with respect to three contraventions of the Control of Vibration at Work Regulations 2005.

The Committee is invited to note the contents of the report.

25.  Minutes of Meetings
Geàrr-chunntasan Choinneamhan

There following Minutes of the Meetings are circulated for confirmation:-

i. Appeals Committee held on 4 and 8 December 2014 and 12 February 2015;
ii. Early Retirement Sub-Committee held on 25 November and 10 December 2014;
iii. The Highland Council Staff Partnership Forum – Elected Members/Staff Side Group held on 6 February 2015;
iv. Central Safety Committee held on 6 February 2015; and
v. Non-Domestic Rates Appeals Committee held on 13 February 2015.

26.  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.

27.  ICT Executive Board: Minutes of Meeting
Bòrd-gnìomha TFC: Geàrr-chunntas Coinneimh

There is circulated to Members only for approval, Minutes of Meeting of the ICT Executive Board (Members) held on 10 February 2015.

28.  Land and Property
Talamh agus Taigheadas

There is circulated to Members only Report No RES/29/15 dated 3 February 2015 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 25 February 2015 at 10.30 am.

Present:

Ms M Smith, Dr D Alston, Ms C Caddick, Mrs H Carmichael, Mr A Christie, Dr I Cockburn, Mrs M Davidson, Ms J Douglas, Mr D Fallows, Mr K Gowans, Mr D Hendry, Mr R Laird, Mr B Lobban, Mrs D MacKay, Mr D MacKay, Mr A Mackinnon, Mr T Maclennan, Mr D Millar, Mr H Morrison, Mr F Parr, Mr B Thompson, Mrs C Wilson, Mr H Wood

Non Members also Present:

Miss J Campbell, Mr G Farlow, Mrs L MacDonald, Mr G Mackenzie, Mrs B McAllister, Ms L Munro, Mrs M Paterson, Mr A Rhind, Mr G Rimell, Mr J Stone

Officials in attendance:

Ms M Morris, Depute Chief Executive/Director of Corporate Development
Mr D Yule, Director of Finance
Mr S Black, Director of Development and Infrastructure
Mr W Gilfillan, Director of Community Services
Mr S Fraser, Head of Corporate Governance, 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 Gould, Head of Procurement, Finance Service
Mrs C McDiarmid, Head of Policy and Reform, Chief Executive’s Office
Mrs S McKandie, Exchequer Manager (Policy & Development), Finance Service
Mr J Robertson, Corporate Improvement Programme Manager, Corporate Development Service
Mr G Bull, Corporate Property Asset Manager, Development & Infrastructure Service
Mr C Anderson, Property Manager (Operational Estate Management), Development & Infrastructure Service
Mr M MacDonald, Human Resources Manager, Corporate Development Service
Ms G Falconer, Occupational Health, Safety and Wellbeing Manager, Corporate Development Service
Ms J Scotson, Business Change Manager, Corporate Development Service
Mr D Haas, Inverness City Manager, Chief Executive’s Office
Ms H Ross, Senior Ward Manager, Cromarty Firth, Tain & Easter Ross, Chief Executive’s Office
Mrs K Lackie, Business Manager, Chief Executive’s Office
Mr P Mallard, Senior Information & Security Officer, Corporate Development Service
Ms G Ward, Housing Policy Officer, Community Services
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 Mr B Gormley and Mr N Donald.

2. Declarations of Interest
Foillseachaidhean Com-pàirt

Item 5: Non-Financial: Mr A Christie
Item 6: Non-Financial: Mr A Christie
Item 8a: Non-Financial: Mr A Christie and Ms J Douglas
Item 8b: Non-Financial: Mr A Christie and Ms J Douglas
Item 9b: Non-Financial: Miss J Campbell
Item 16: Financial: Mr A MacKinnon
Item 17: Financial: Mr A MacKinnon
Item 18: Non-Financial: Mr K Gowans (during the item)
Item 28: Non-Financial: Mr H Wood, Mrs H Carmichael (during the item) and Mr K Gowans (during the item); Financial: Mr K Gowans (during the item)

3. Good News Stories
Deagh Naidheachdan

The Committee NOTED the following good news stories and offered congratulations to the staff involved:-

• Scott Taylor, Finance: UK National Association of Civic Offices Award;
• Marion MacLeod, Finance: Institute of Rating, Revenues and Valuation (IRRV) qualification;
• Earth Hour Local Authority Champion Award 2014;
• Highland Helping Those in Need – Finance: COSLA Bronze Award;
• Quality Awards 2014:
  o Shortlisted – Category 1 Working Together for the Economy: Cameron Square Event Space (Dot Ferguson, Chief Executive’s Office); and
  o Winner – Category 4 Working Together for Better Housing & Infrastructure: Carbon Clever Initiative (Stephen Carr, Chief Executive’s Office).

FINANCE SERVICE
SEIRBHEIS AN IONMHAIS

4. Finance Service Revenue Monitoring to 31 December 2014
Sgrùdadh Teachd-a-steach Seirbheis an Ionmhais gu 31 Dùbhlachd 2014

There was circulated Report No RES/01/15 dated 10 February 2015 by the Director of Finance which provided Members with information on the Finance Service Revenue Monitoring position for the period to 31 December 2014.

The Committee APPROVED the Finance Service Revenue Monitoring Report for the period to 31 December 2014.

5. Corporate Revenue Monitoring Report to 31 December 2014
Sgrùdadh Teachd-a-steach Corporra gu 31 Dùbhlachd 2014

Declaration 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 him from taking part in the discussion.

There was circulated Report No RES/02/15 dated 6 February 2015 by the Director of Finance which presented the financial position of the revenue budgets of the General Fund and Housing Revenue Account (HRA) as at 31 December 2014 and the projected year end position.

During discussion, Members:-

• welcomed the positive report which meant that budgets were under control, it showed good financial management to ensure that services continued to be provided, and it put the Council in a good position with flexibility to meet future financial challenges, for example, winter maintenance expenditure;
• queried how some of the underspend could be used to offset some of the pressures in services budgets, such as filing vacancies to deliver services or savings in the roads maintenance budget being reinvested into that service in order to save money in the long term;
• made reference to the underspend on discretionary housing payments of £0.209m which the Council used to mitigate the effects of the removal of the spare room subsidy and concern was expressed that this was not being fully utilised by the Council, whilst at the same time, the Scottish welfare fund grants were predicted to overspend by £0.201m. The most vulnerable people in society relied on assistance to deal with the effects of welfare reforms and the Council was working hard to ensure they received the right support, but it was queried if the Council was asking at a national level for more financial flexibility to help people deal with the effects of welfare reform;
• it was reiterated that the DHP fund was fully mitigating the effects of the removal of the spare room subsidy being used; and
• it was stressed that the Council continually made representations on welfare reform issues to UK and Scottish Governments and Officers were actively engaged on working on these issues at COSLA, UK and Scottish Government levels. This included working with COSLA to mitigate the effects of the removal of the spare room subsidy.

The Committee APPROVED the financial position of the General Fund and HRA revenue budgets as at 31 December 2014 and NOTEDthe predicted year end net underspend of £1.677m.

6. Corporate Capital Monitoring Report to 31 December 2014
Aithisg Sgrùdaidh a’ Chalpa Chorporra gu 31 Dùbhlachd 2014

Declaration 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 him from taking part in the discussion.

There was circulated Report No RES/03/15 dated 5 February 2015 by the Director of Finance which provided an overview of expenditure on the General Fund and Housing Revenue Account (HRA) capital programmes for the period from 1 April to 31 December 2014 and the projected year end position for the 2014/15 financial year.

During discussion the following comments were made:-

• There had been an underspend in the capital programme for the Care and Learning Service for some years and the practice of over-programming had worked well to ensure the overall capital programme was fully committed. Information was sought on the reasons for underspends in Services’ capital programme over the last five years, for example was it due to staffing resources, project management, land acquisitions. If the reasons were known, then measures could be taken to improve on the delivery of the capital programme particularly in the Care and Learning Service. An undertaking was given to provide this information to all Members of the Committee;
• The capital spend of £110m was good news for jobs and communities in the Highland area and the over-programming policy was commended as it had been successful in ensuring that the capital funding in place was spent;
• With reference to the slippage and delays in awarding heating contracts, it was highlighted that some Council properties had dated and expensive heating systems but had not qualified for new heating systems as they had met specific standards when checked. However, this had left some people caught up in fuel poverty and this did not meet with the Council’s Carbon Clever aspirations. In terms of the underspend in the Housing Revenue Account capital programme, efforts should be made to allow council tenants in this position back onto the list of properties that required to be renovated. An undertaking was given to ask the Director of Community Services to provide a response to this request and the reasons for the delays in awarding heating contracts and to establish if this was linked to biomass issues. The response would be circulated to all Members of the Committee; and
• In terms of the implications section of the report, clarification was sought on what a climate change/Carbon Clever implication was, as it was felt there were climate change/Carbon Clever risks which had not been included within this section of the report. An undertaking was given to provide this information to Members and also for more detailed information on this to be presented in the next report.

Thereafter, the Committee APPROVED the financial position of the General Fund and HRA Capital Programmes as at 31 December 2014 and AGREED that:-

i. an audit be undertaken to establish the reasons for the underspend in the Capital Programme, particularly in respect of the Care and Learning Service, to ensure the capital programme was maximised; and
ii. in view of the underspend on the Housing Revenue Account, a response be sought and circulated to the Committee from the Director of Community Services in respect of increasing the number new heating systems installed in Council properties in order to reduce fuel poverty and the reasons for the delays in awarding heating contracts along with confirmation on whether this was linked to biomass issues.

7. Treasury Management
Rianachd Ionmhais

(a) Summary of Transactions
Geàrr-chunntas de Ghnothaichean

There was circulated Report No RES/04/15 dated 27 January 2015 by the Director of Finance which provided details on the Treasury Management transactions undertaken within the period which was submitted to the Committee in compliance with CIPFA's Code of Practice on Treasury Management and the Council's approved Financial Regulations.

During discussion the following issues were raised:-

• most of the total amount deposited with each counterparty had reached the limit and confirmation was sought that there were more counterparties available to the Council than those currently used; and
• concern was expressed that the limit with the Clydesdale bank had been breached and although this was usually monitored on a daily basis it was recognised that this was more challenging over the festive period.

The Committee NOTED the Treasury Management Summary of Transactions report to 31 December 2014.

(b) Mid-year Review Report 2014/15
Aithisg Ath-sgrùdadh Meadhan-bliadhna 2014/15

There was circulated Report No RES/05/15 dated 12 February 2015 by the Director of Finance which provided the Treasury Management Mid-year Review Report 2014/15 for Members’ scrutiny. In compliance with Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Treasury Management in Local Authorities, the report would also be submitted to the Council on 12 March 2015 for approval.

During discussion the following main points were raised:-

• if the Capita forecasts for interests rates were taken as accurate, were there opportunities to make savings in treasury management and was there a need to start borrowing before March 2016 if long term rates were at 4%; and
• clarification was sought on the reason why Goldman Sachs did not deal direct with Local Authorities.

The Committee NOTED:-

i. the Treasury Management Mid-year Review Report 2014/15; and
ii. that, in compliance with CIPFA’s Code of Practice on Treasury Management in Local Authorities, the report would also be submitted to Council for approval on 12 March 2015.

(c) Strategy Statement and Investment Statement 2015/16
Aithris Ro-innleachd agus Aithris Tasgaidh 2015/16

There was circulated Report No RES/06/15 dated 27 January 2015 by the Director of Finance which explained that the Council had adopted the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Treasury Management in Local Authorities. A requirement of the Code was for an annual Treasury Management Strategy Statement and Investment Statement to be approved by Council for the forthcoming financial year.

In compliance with the Code, the attached Treasury Management Strategy Statement and Investment Statement for 2015/16 was submitted to Committee for scrutiny. This Statement would then be submitted to the Council for approval on 12 March 2015.

During a summary of the report, the Director of Finance asked the Committee to consider further training on treasury management. In response, it was felt that training would be useful for all Members. It was suggested that the training should be provided by a third party instead of the Council’s treasury management advisors although it was highlighted that this would have a cost implication. A further suggestion was made that the training could be delivered by the Council’s Pension Fund investment advisors.

During discussion Members:-

• sought reassurance that the Council’s systems would react to the new legislation which meant that rating agencies were about to change the way banks were rated to reflect different risks for domestic and institutional investors;
• emphasised the importance of training for staff so that sole reliance was not placed on the creditworthiness service provided by Capita Treasury Services and did not simply carry out a mechanistic approach;
• welcomed the consideration of investment in banks outside of the UK;
• sought clarification on what currency would be used to invest in banks outside of the UK and whether it was restricted to only banks whose main business was in that country or any bank worldwide that had a license in the country;
• advised caution in relation to the credit ratings of the approved countries for investment as a AAA+ rated county was not necessarily the safest country to invest and recommended that other relevant factors be considered including the size of the financial sector relative to the country’s GDP; and
• trusted the additional work staff did in terms of interpreting the market data which would alleviate concerns about the country ratings and the need to restrict the list of approved countries for investment.

The Committee:-

i. NOTED the Treasury Management Strategy Statement and Investment Statement for 2015/16 and the Prudential Indicators as detailed in Appendix 2 of the report;
ii. NOTED that, in compliance with the CIPFA Code of Practice on Treasury Management in Local Authorities, the attached Treasury Management Strategy Statement and Investment Statement for 2015/16 would subsequently be submitted to the Council for approval on 12 March 2015;
iii. APPROVED a change to the Highland Council’s list of counterparties to include non-UK Banks with high credit worthiness and based within countries with an AAA+ or AA+ rating;
iv. AGREED that a training session be arranged for all Members on Treasury Management; and
v. AGREED that the Director of Finance discuss the comments raised relating to the ratings of countries listed where the Council would consider investing and determine whether there was a need bring a report back on this to a future meeting of either the Committee or Council.

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

(a) Update
Fios as 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/07/15 dated 6 February 2015 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, the following comments were made:-

• the roll-out of Universal Credit was still at an early stage and the criteria for claimants was being extended which would result in an increased need for support;
• since Universal Credit was implemented in November 2013, DWP had not been able to share data with the Council, Citizens Advice Bureau, social landlords and registered charities that provided support to claimants receiving Universal Credit. In February 2015, legislation was passed to enable data sharing between DWP, social landlords and advice providers. It was anticipated that DWP data sharing would be in place from April 2015;
• one of the Welfare Reform Act aims was to change culture empowering people to manage their own finances and to achieve this included changing benefit payments to monthly and removing direct rent payments to landlords. The current evidence did show rent debt levels increasing;
• it was concerning that 84% of Council tenants were in rent arrears and for 51% their arrears continued to rise yet the DWP had only processed 10% of the requests for switch back payments;
• action needed to be taken with regard to the level of tenants in rent arrears and the delays in payments but Council staff were commended for the proactive work already undertaken to raise awareness of benefits and putting forward options to deal with the implications of welfare reform;
• the impact of claimants, particularly younger claimants, moving from Disability Living Allowance (DLA) to Personal Independence Payment (PIP) was concerning especially for those affected by a delay of up to nine months for a decision on their claim;
• PIP average waiting times were down to 18 weeks in Inverness and surrounding areas rather than 16 weeks as promised by the Secretary of State for Work and Pensions, Iain Duncan Smith, and particular concern was expressed for claimants in rural Highlands who faced far longer waiting times and were already penalised by higher living costs and less job opportunities;
• it was not acceptable for claimants from across Highland to travel to Inverness for medical assessments and this could be delivered in the local community;
• foodbanks had become politically and commercially trendy and it was emphasised that it was the job of the state and social security and not charity to provide for people in need;
• in relation to the 2,129 foodbank vouchers which were issued to support 3,383 people in the Inverness and Nairn each voucher represented a family who was in financial peril and the figures and trends across Highland were requested with information about how this would affect the Council financially;
• in regard to the recommendations of the Smith Commission, the view expressed by the third sector at a poverty alliance workshop on welfare reform was that full responsibility for welfare should be devolved to the Scottish Government;
• regarding the specific role of local authorities in devolved matters confirmation was sought that discussions would be held so that any change implemented would be to the benefit of the Highlands and reflect the unique Highland issues and that appropriate lobbying would continue to be undertaken;
• assurance was given that work to end the suffering caused by the implications of welfare reform and to promote the Highland voice was given a high priority by the Council at a Chief Executive level through SOLACE and by political intervention from COSLA Leaders;
• there was a need for a holistic approach to be taken across all Council services in terms the impact of decision-making on the demographic affected by welfare reform;
• it was good news that the Carers Bedroom Entitlement Bill was due to be endorsed in October 2015 by the UK Parliament but uncertainty was expressed in relation to the General Election in May 2015 which meant parliament would be dissolved and the bill would be dropped;
• in relation to the General Election in May 2015 information was sought on what political levers could be utilised to influence the implementation of welfare reform and it was acknowledged that it would be useful to discuss this further; and
• a longer term vision needed to be formed about poverty as well as welfare using the Joseph Rowantree strategy document ‘A UK Without Poverty’ as a basis to begin discussion.

The Committee NOTED:-

i. the Universal Credit go-live sites from mid-February 2015 for single claimants and Department for Work and Pensions (DWP) intention to roll-out Universal Credit for families by February 2015;
ii. the ongoing planning, engagement and scheduled training with various stakeholders for the expansion of Universal Credit in Highland;
iii. that the Head of Revenues and Business Support was negotiating a new District Partnership Agreement to support closer working with the DWP;
iv. that a formal response had been submitted by officers in respect of DWP’s consultation re Universal Credit data sharing between DWP and local support providers;
v. the management information and budgetary position provided in the appendices to the report;
vi. that data was currently being collected in respect of figures and trends for the foodbanks across Highland and this would be included in a future report

The Committee also AGREED to hold a cross party discussion on the impact of poverty and to consider what political levers could be utilised to address this issue.

(b) Welfare Reform Fund Proposals
Tairgsean dhan Mhaoin Shochairean

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 left the meeting for this item.

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 her interest did not preclude her from taking part in the discussion.

There was circulated Joint Report No RES/08/15 dated 16 February 2015 by the Director of Finance and the Head of Policy and Reform which recommended an allocation of £153,645 from the Council’s Welfare Fund, which currently totalled £1.003m to provide preventative advice services. Further proposals would continue to develop for the remainder of the Fund, guided by the Council’s Welfare Reform Working Group.

During discussion, the following comments were raised:-

• the roll-out of the midwifery project piloted in Ross-shire to all of Highland would further progress early intervention work already undertaken including promoting breastfeeding. There was a query whether the in-house team who delivered the pilot had been considered to implement the roll-out and this was confirmed by the Head of Policy and Reform;
• in relation to the welfare advice clinics, it was important to ensure that support was being delivered where it was needed and to recognise that giving advice sometimes changed the relationship of people who provided services and therefore when identifying the most appropriate place to hold clinics it was suggested that District Partnerships were involved and, considering many vulnerable tenants did not make contact with the Highland Users Group (HUG), local people should be spoken to as much as possible. It was further requested that welfare advice clinics should be held locally;
• there had been a suggestion that the Citizens Advice Bureau (CAB) would be involved in the new Council offices in Kingussie and, in light of service point closures, partnership working should be widely supported;
• it was pleasing that the scope for EU programme funding was being explored; and
• despite delivering the Living Wage to all Council staff some families were still under pressure and as the single largest employer in Highland it was appropriate to understand the potential impact of welfare reforms on Council staff, particular those receiving lower pay and it was felt this should be extended to staff employed by Council contractors.

The Committee:-

i. APPROVED funding for two proposals from the Council’s Welfare Fund, namely:

a. the roll-out of the midwifery project for expectant mothers from Ross-shire to all of Highland to be delivered through the CAB network for a year initially and with an allowance of up to £90,000; and

b. to identify and support those under-claiming benefit by the recruitment of two time limited posts for 12 months for the in-house income maximisation team at the cost of £63,645;

ii. NOTED that further proposals for the remaining£849,435 in the fund 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. NOTED that new work was underway to understand the potential impact of welfare reforms on Council staff and staff employed by Council contractors, particularly those receiving lower pay; and
iv. AGREED that, in order to aid accessibility/attendance, Welfare Advice Clinics be held locally.

In accordance with Standing Order 18, and with the consent of the meeting, Item 10 on the agenda was considered at this point.

10. Carbon CLEVER Community Grant Fund
Sgeama Thabhartasan Coimhearsnachd Càrboin Ciallaich

There was circulated Report No RES/11/15 dated 17 February 2015 by the Head of Policy and Reform which asked Members to consider and agree the proposed arrangements for localising the Carbon CLEVER Community Grant fund in 2015/16.

During discussion, the following comments were raised:-

• the Grant Fund provided communities with an additional source of funding and presented the opportunity for communities to progress their projects whilst also directly getting involved and spreading the benefits of the already successful Carbon CLEVER Programme which would help meet the Council’s ambition to achieve a low carbon Highlands;
• the localisation and delegation of decision making to Area Committees was widely welcomed and a variable closing date for applications was favourable to meet local needs;
• it was good news that in the event of an underspend applications made later in the financial year could be considered at the Area Committee or could be carried forward into the next financial year; and
• concern was expressed in relation to the capacity and understanding of staff to implement the arrangements locally with a view to avoiding issues experienced when setting up the Community Challenge Fund.

The Committee AGREED:-

i. the Carbon CLEVER Community grant fund assessment criteria as set out in Appendix 1 to the report;
ii. that there be a variable closing date for applications as per Option 2 of Appendix 2 to the report;
*iii. that decision making for all applications be delegated to Area Committees and to recommend that the Scheme of Delegation be amended accordingly at the next opportunity;
iv. the funding allocations to Area Committees based on local electoral and area governance arrangements as outlined in Appendix 3 to the report;
v. the proposals for dealing with any potential underspend as per paragraph 3.3 of the report; and
vi. that the process be reviewed and improvements incorporated for 2016/17.

9. Applications to the Capital Discretionary Fund
Maoin Calpa fo Ùghdarras

(a) Tain Common Good – Alexandra Bridge Refurbishment
Drochaid-coise Alexandra, Ionad-coimhearsnachd Bhaile Dhubhthaich

There was circulated Joint Report No RES/09/15 dated 4 February 2015 by the Director of Finance and the Head of Policy and Reform which provided an update on the positon in relation to the Alexandra Bridge, Tain. The report outlined the budget implications resulting from the higher than expected tenders submitted for refurbishment work and the work done to identify an improved funding package to allow the proposed bridge refurbishment work to proceed.

The Ward Manager was commended for her work undertaken to progress the project and in particular to secure funding from Historic Scotland. However, the Community Council and Local Members expressed concern about the level of funding that was to be provided from the Common Good Fund and it was requested that the Capital Discretionary Fund look more favourably on this project.

An additional £60,000 was applied for to the Capital Discretionary Fund but it was understood that this was reviewed by the Administration Leader's Meeting (ALM) which recommended an additional contribution of £10,000. The rationale for this decision was explained that the bridge was a Common Good Fund asset and was therefore the responsibility of the Common Good Fund to maintain but was worthy of some Capital Discretionary Fund support as was a very important local project and the amount recommended was similar to the amount awarded for other projects regardless of overall project costs.

Local Members expressed concern regarding the falling revenue of the Common Good Fund and suggested that possible slippage be identified over the lifetime of the project. It was proposed that the comments and concerns of Local Members and the community should be listened to and therefore that the recommended contribution from the Capital Discretionary Fund be increased and the recommended contribution from the Common Good Fund be reduced to provide reassurance that the project would be completed without having to take into account other projects that relied on the Common Good Fund.

Following discussion, Ms J Douglas, seconded by Mr A Mackinnon, MOVED approval of additional contributions of £60,000 from the Capital Discretionary Fund, £16,670 from the Tain Common Good Fund and£6,945 from the Ward Discretionary Budget to enable the bridge refurbishment to be undertaken.

As an AMENDMENT, Ms M Smith, seconded by the Dr D Alston, moved the recommendations outlined in the report including £6,945 from the Ward Discretionary Budget to enable the bridge refurbishment to be undertaken.

On a vote being taken, the MOTIONreceived 5 votes and the AMENDMENT received 12 votes with no abstentions and the AMENDMENT was therefore CARRIED, the votes having been cast as follows:-

For the Motion:

Davidson, M; Douglas, J; Mackinnon, A; Millar, D; Morrison, H.

For the Amendment:

Alston, D; Caddick, C; Christie, A; Cockburn, I; Fallows, D; Gowans, K; Laird, R; Lobban, B; Mackay, D (W5); Parr, F; Smith, M; Wood, H.

Thereafter, the Committee APPROVED additional contributions of£10,000 from the Capital Discretionary Fund, £76,670 from the Tain Common Good Fund and £6,945 from the Ward Discretionary Budget to enable the bridge refurbishment to be undertaken.

(b) Merkinch Community Centre
Mhargadh na h-Innse

Declaration of Interest – Miss J Campbell declared a non-financial interest in this item as a Member of Merkinch Community Centre Management Board and left the meeting for this item.

There was circulated Joint Report No RES/10/15 dated 12 February 2015 by the Director of Finance and the Head of Policy and Reform which sought £15,000 capital support from the capital discretionary budget to replace the single glazed windows for the playroom and the Skinner room in the building and to purchase a bicycle rack and new signage.

The Committee APPROVED the award of £15,000 from the Capital Discretionary Fund for the year 2014/15 as match funding to the contribution from the Inverness Common Good Fund towards the total project cost of £30,000.

11. Internal Audit Reports
Aithisg In-sgrùdaidh

(a) Review of the Oracle Financials System
Ath-sgrùdadh de Shiostam Ionmhais Oracle

There was circulated Report No RES/12/15 dated 2 February 2015 by the Director of Finance which provided the outcomes of the Internal Audit’s work on the Oracle Financial Management Information System.

The Committee NOTED the findings of the Internal Audit Report on Oracle Financials presented to the Audit and Scrutiny Committee on 20 November 2014, and the actions being taken to implement its findings.

(b) Matters Arising from the Statement of Internal Control 2013/14
Gnothaichean Ag Èirigh bho Aithris In-Smachd 2013/14

There was circulated Report No RES/13/15 dated 3 February 2015 by the Director of Finance which provided the outcomes of the Internal Audit’s work on the Matters Arising from the Statement of Internal Control.

The Committee NOTED the findings of the Internal Audit Report on the Matters Arising from the Statement of Internal Control presented to the Audit and Scrutiny Committee on 20 November 2014, and the actions taken to implement its findings.

12. Procurement Policy and Strategy 2015 to 2020
Ro-innleachd Solair 2015 gu 2020

There was circulated Report No RES/14/15 dated 12 February 2015 by the Director of Finance which presented the Council’s high level intentions and aspirations in respect of outcomes delivered through Procurement work across the Council for the next five years and recommended a long term strategy based on the Council’s values and set out at a strategic level how Procurement would deliver those values.

During discussion, Members drew attention to the training session on procurement that was arranged to take place on 15 May 2015 and it was felt that, due to the importance of the Council’s Procurement Policy and Strategy for the next five years and the complex changing environment of procurement, consideration of this report should be deferred until the next meeting to allow for the training to take place. Furthermore, it was suggested that the Audit Scotland Review of Procurement should be considered at the training session to better inform the Council’s response.

In relation to the draft Procurement Policy and Strategy, it was understood that there was going to be more flexibility for the third sector in the contract selection process but that this had not been detailed in the draft.

The Committee AGREED that approval of the Council’s Procurement Policy and Strategy 2015 to 2020 be deferred until the next meeting to allow Member training to take place.

13. Audit Scotland Review of Procurement in Scottish Local Authorities Sgrùdadh Alba Aithisg mu Sholar Ùghdarrais Ionadail

There was circulated Report No RES/15/15 dated 10 February 2015 by the Director of Finance which presented the Council’s proposed responses to the above report and recommended that Members agree to the actions listed at Annex A to the report in dealing with the report’s findings.

During discussion, Members praised and encouraged the inclusion of collecting and reporting information on non-financial benefits including economic, community and environmental benefits and requested that it be extended to a wider Community Planning Partnership discussion to identify positive benefits to health and well-being.

The Committee APPROVED the proposed response to the Audit Scotland Review of Procurement in Local Authorities subject to Point 8 of Annex A (Page 149) being amended to include that discussions/reports on this would be led through the Community Planning Partnership.

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

At the Resources Committee meeting in 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 was circulated Joint Report No RES/16/15 dated 11 February 2015 by the Director of Finance and Head of Corporate Governance which advised of the Council’s current practice and invited Members to continue to determine such matters in private.

During discussion, Members raised the following issues:-

• that it be accepted that information in regard to personal debts should be considered in private; however further consideration was required in regard to company debt write-offs on the basis that this information might already be in the public domain;
• the potential legal implications of considering write off reports in respect of companies in public should be explored, it might be appropriate for consideration in private depending on the individual circumstances of the case and concern was expressed at the potential reputational damage and impact on individuals if, for example, personal information relating to a company director was disclosed in public;
• the opportunities for the Council to be more proactive in pursuing debtors; and
• concern that the level of debt amongst constituents in the Highlands was increasing; in this regard a further report was requested on the opportunities to identify debt at an earlier stage, the operation of the current escalation process, and in regard to how the Council could better support constituents experiencing debt; the Chair advised that given the sensitivity of some of the information involved she would explore with officials how this could best be provided to Members.
• Following on from the above and on hearing further from the Chair, it was suggested that a further report be submitted to the next meeting of the Committee on 27 May 2015 to allow Members to debate the issue of whether the write-off of company debts should be considered in public.

The Committee AGREED that:-

i. reports containing information relating to the financial or business affairs of any particular person continue to be considered in private; and
ii. a further report be submitted to the next meeting of the Committee to allow Members to debate whether the write-off of company debts should be considered in public.

CORPORATE DEVELOPMENT SERVICE
SEIRBHEIS AN LEASACHAIDH CHORPORRA

15. Corporate Development Service Revenue Expenditure Monitoring to 31 December 2014
Sgrùdadh Teachd-a-steach Seirbheis an Leasachaidh Chorporra gu 31 Dùbhlachd 2014

There was circulated Report No RES/17/15 dated 12 February 2015 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 31 December 2014.

The Committee NOTED the revenue monitoring report for the period 1 April 2014 to 31 December 2014.

16. Corporate Development Service Capital Budget Expenditure Monitoring to 31 December 2014
Sgrùdadh Calpa Seirbheis an Leasachaidh Chorporra gu 31 Dùbhlachd 2014

Declaration 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/18/15 dated 12 February 2015 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 31 December 2014.

In discussion reference was made to the Unified Communication pilot project at the Dingwall Offices and concern was expressed in relation to difficulties encountered by Members in contacting staff and issues around business continuity in the recent extreme weather conditions.

The Depute Chief Executive/Director of Corporate Services advised that there was no indication to date of there being major issues associated with the project but that any issues arising would be considered as part of the evaluation of the pilot. She also confirmed that she would discuss with the Local Members their specific concerns in relation to this matter outwith the meeting.

The Committee NOTED the capital monitoring report for the period to 31 December 2014.

17. Corporate Improvement Programme
Prògram Leasachaidh Chorporra

(a) Corporate Improvement Programme - Progress Report
Prògram Leasachaidh Chorporra – Aithisg Adhartais

Declaration 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/19/15 dated 11 February 2015 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 and 2014/15. In addition, the process for delivering the agreed transformation and savings programme, as agreed by Council in December 2014, was underway.

The Committee:-

i. NOTED progress with the delivery of the Corporate Improvement Programme; and
ii. AGREED the action being taken to ensure savings were delivered.

(b) Income Generation– Commercial Manager Appointment
Cruthachadh Teachd-a-steach – Cur an Dreuchd Manaidsear Malairteach

There was circulated Report No RES/20/15 dated 11 February 2015 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, Members raised the following issues:-

• a point in regard to the income that would be generated from advertising following the change from paper based to electronic payslips;
• clarification was sought and provided in regard to the figures detailed in the report for the achieved savings to date against the target figure, and in regard to the net income targets set for the post of Commercial Manager;
• that clarification be provided on the income targets set for the renewable energy incentives as set out in the report; the Director of Development and Infrastructure advised that he would confirm to Ms J Douglas the figures detailed in the report;
• that the post of Commercial Manager would require a mix of skills and that job share/secondment opportunities be considered to ensure the right person(s) was recruited for the post; and
• a point in regard to the rationale for both the salary and income targets set for the post of Commercial Manager.

Thereafter, the Committee NOTED progress made to date and the creation of a new Commercial Manager role.

Digital First
Digital First

(a) Digital First Programme
Prògram Digital First

Declarations of Interest – Mr K Gowans declared a non-financial interest in this item as a Director of High Life Highland Limited, 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 Report No RES/21/15 dated 12 February 2015 by the Depute Chief Executive/Director of Corporate Development which set out the Digital First programme, which would deliver£1.3m savings over the next four years as agreed in the budget on 18 December 2014. The outcome of the Digital First programme was that all customers would have access to Highland Council’s services on-line, with at least 40% of transactions carried out online by April 2017. This would be delivered through redesigning processes, increasing the availability of online services and encouraging more customers to access council services digitally.

The Depute Chief Executive/Director of Corporate Development acknowledged that a recent Council press release issued in connection with the Digital First Programme might have been misleading in terms of the current level of on-line activity. In this regard she provided updated figures for the previous year, noting that approximately 17% (82,000) of contact with customers had taken place on-line. Face to face contacts accounted for approximately 43% (207,000) of transactions and telephone contacts 40% (189,000) of transactions.

During discussion, Members raised the following issues:-

• that the report should also recognise that many people who possessed the appropriate skills to access services on-line continued to prefer to have face to face contact;
• issues around the Council’s engagement with partners such as High Life Highland and Citizens Online to provide training and support to communities and individuals to use digital services; in this regard it was confirmed that a report would be submitted to the next meeting of the Committee containing proposals to allocate funding from the welfare reform fund to Citizens Online for this purpose; and
• that the individual Groups would be asked to submit their nominations for Digital Champions in due course.

The Committee:-

i. AGREED the Digital First principles;
ii. AGREED that up to six Member Digital Champions be nominated;
iii. AGREED £138,000 be allocated from the Strategic Change & Development Fund to fund the cost of two temporary officers to work within the project team; and
iv. NOTED the outcomes, activity and benefits to be delivered by the Digital First Programme.

(b) Website Review Report *
Làrach-lìn– Measadh Sia Mìosan

There was circulated Report No RES/22/15 dated 10 February 2015 by the Depute Chief Executive/Director of Corporate Development which provided an update on the current status of the website and an analysis of recent survey results from the Communities and Citizens Panels, following the launch of the new Highland Council Website in July 2014.

During discussion, Members raised the following points:-

• that the customer research detailed in the report showed that 61% of the Citizen’s Panel who visited the Highland Council’s website, did so to access contact details for Council Services; however this did not mean that all of those customers were accessing services on-line as had been suggested in a recent Council press release on the Digital First Programme; in this regard it was important that there was absolute clarity around the statistics being used to avoid any misleading assumptions being drawn from the available data in regard to the level and nature of on-line activity particularly in the context of the ongoing customer services review;
• it would be useful to investigate the potential for information to be provided in regard to the location from which members of the public were accessing the Council’s website; and
• that the ongoing development of the new website was delivering significant improvements and the increasingly positive feedback being received should be welcomed.

The Committee NOTED the report and AGREED the necessary actions to be taken to improve the website further and to respond to feedback.

 * At the Highland Council meeting held on 12 March 2015, it was clarified that while the report for this item contained an inaccuracy at paragraph 2.2.2 the correct information had been included in the Appendix to the report.

19. Gender Equalities in Employment
Co-ionannachdan Gnè ann an Cosnadh 2015

There was circulated Report No RES/23/15 dated 6 February 2015 by the Depute Chief Executive/Director of Corporate Development which provided an update on the Highland Council’s gender equal pay gap and Women in Management activities, and sought approval to publish information in order to meet the duties of the Equality Act 2010 (Specific Duties) (Scotland) Regulations 2012.

During discussion, Members raised the following issues:-

• that the improvements achieved to date and the positive actions set out in the report should be welcomed; however it was important to continue to deliver improvements to achieve gender equality in employment in the Highlands;
• in regard to the above consideration be given to gender equality being included as an update in the Programme for the Council on the basis that it was considered as a high priority by Members across the Council and with a view to delivering the required improvements in as short a timeframe as possible;
• that ongoing work with the University of the Highlands and Islands was important in ensuring more young women were able to access opportunities in fields such as science and engineering;
• that the opportunities to influence other public and private organisations in the Highlands be considered to ensure that the workforce in the Highlands comprised the best mix of people;
• the risks associated with not taking action to close the gender gap should be emphasised in terms of the impact on the economy and wider society in the Highlands;
• clarification was sought around the comparator figures used to calculate the part time gender pay gap as set out in the report;
• that there was a need to address the gender gap in teaching and a question was asked in regard to the action being taken to support and encourage prospective female candidates to secure head and deputy head teacher posts in schools; in his response the HR Manager advised that he would provide Mr R Laird with further information in regard to the online learning resource being developed for teaching and non-teaching staff in this regard;
• the importance of removing barriers to career progression for women and the action being taken to encourage flexible and part time working practices in middle and senior management to ensure female candidates were not disbarred from applying for such posts; and
• that the issue of gender equality also be taken forward with the Community Planning Partnership.

The Committee:-

i. NOTED improvements in the statistics relating to the gender pay gap and AGREED that these be published on 30 April 2015;
ii. NOTED actions being taken under the Women in Management Programme;
iii. AGREED a joint working group with the trade unions to carry out a review of gender equality action plans and sustain improvement; and
iv. AGREED that consideration be given to an update on this item being included in the Programme for the Council and also to the issue being taken forward with the Community Planning Partnership.

20. Information Management Strategy and Policy Framework Annual Review
Ro-innleachd Rianachd Fiosrachaidh agus Ath-sgrùdadh air Frèam Poileasaidh Rianachd Fiosrachaidh

There was circulated Report No RES/24/15 dated 10 February 2015 by the Depute Chief Executive/Director of Corporate Development which provided Members with information on the annual review of the Information Management Strategy for 2013-2017 and a range of policies that made up the Information Management Policy Framework. It also provided an update on progress made in implementing the Information Management Strategy.

The Committee NOTED the update on the strategic initiatives andAPPROVED the updated Information Management Strategy 2013-2017 and Policies.

21. Annual Review of ICT Acceptable Use Policy
Ath-sgrùdadh air Poileasaidh Cleachdadh TFC ris a Bheilear Deònach Gabhail

There was circulated Report No RES/25/15 dated 10 February 2015 by the Depute Chief Executive/Director of Corporate Development which informed Members of the proposed changes arising from the annual review of the Council’s ICT Acceptable Use Policy (AUP) and requested Members to consider and approve the revised ICT Acceptable Use Policy.

The Committee:-

i. NOTED the proposed changes to the ICT Acceptable Use Policy following the annual review; and
ii. APPROVED the ICT Acceptable Use Policy.

CHIEF EXECUTIVE’S OFFICE
OIFIS AN ÀRD-OIFIGEIR

22. Chief Executive’s Office and Members Revenue Monitoring to 31 December 2014
Sgrùdadh Teachd-a-steach Oifis an Àrd-Oifigeir agus nam Ball gu 31 Dùbhlachd 2014

There was circulated Report No RES/26/15 dated 12 February 2015 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 31 December 2014.

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

23. Chief Executive’s Office Capital Budget Expenditure Monitoring to 31 December 2014
Sgrùdadh Calpa Oifis an Àrd-Oifigeir gu 31 Dùbhlachd 2014

There was circulated Report No RES/27/15 dated 12 February 2015 by the Chief Executive which set out the position for the Chief Executive’s Office 2014/15 capital budget for the period to 31 December 2014.

The Committee NOTED the capital monitoring report for the period to 31 December 2014.

COMMUNITY SERVICES
SEIRBHEISEAN COIMHEARSNACHD

24. Health and Safety Executive: Improvement Notices
Control of Vibration at Work Regulations 2005
Roinn-ghnìomha na Slàinte is Sàbhailteachd: Brathan Leasachaidh
Riaghailtean Smachd air Crith aig an Obair 2005

There was circulated Report No RES/28/15 dated 11 February 2015 by the Director of Community Services which provided an update on the Improvement Notices served on The Highland Council on 30 January 2015 with respect to three contraventions of the Control of Vibration at Work Regulations 2005.

The Committee NOTED the contents of the report and the action plan.

MINUTES OF MEETINGS
GEÀRR-CHUNNTAS COINNEIMH

25. Minutes of Meetings
Geàrr-chunntasan Choinneamhan

The Committee:-

i. NOTED the Minutes of the Appeals Committee held on 4 and 8 December 2014 and 12 February 2015;
ii. NOTED the Minutes of the Early Retirement Sub-Committee held on 25 November and 10 December 2014;
iii. APPROVED the Minutes of the Highland Council Staff Partnership Forum – Elected Members/Staff Side Group held on 6 February 2015;
iv. APPROVED the Minutes of the Central Safety Committee held on 6 February 2015; and
v. NOTED the Minutes of the Non-Domestic Rates Appeals Committee held on 13 February 2015.

26. 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.

CORPORATE DEVELOPMENT SERVICE
SEIRBHEIS AN LEASACHAIDH CHORPORRA

27. ICT Executive Board: Minutes of Meeting
Bòrd-gnìomha TFC: Geàrr-chunntas Coinneimh

The Minutes of Meeting of the ICT Executive Board (Members) held on 10 February 2015 were circulated to Members only and APPROVED.

DEVELOPMENT AND INFRASTRUCTURE
LEASACHADH AGUS BUN-STRUCTAR

28. Land and Property
Talamh agus Taigheadas

Declarations of Interest - Mrs H Carmichael and Mr H Wood declared a non-financial interest in this item as Directors of Inverness Leisure and Mr K Gowans declared a non-financial interest in this item as a director of High Life Highland Limited and a financial interest as his wife was an employee of High Life Highland Limited 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 to Members only Report No RES/29/15 dated 3 February 2015 by the Director of Development and Infrastructure which sought approval for a number of land and property transactions as outlined in the report.

In discussion Members suggested that the Care and Learning Service be consulted on potential uses as part of the options appraisal for Council properties.

Thereafter, the Committee AGREED:-

i. the recommendations as set out in the report; and
ii. that the Care and Learning Service be consulted as part of the options appraisal in regard to potential property transactions.

The meeting ended at 3.00 pm.