Agendas, reports and minutes

Minutes of Meeting of the Corporate Resources Committee held in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Wednesday, 15 November 2017 at 10.30 am.

Present:
Mr A Baxter, Mr R Bremner, Mr J Bruce, Mrs C Caddick, Mrs H Carmichael, Dr I Cockburn, Mr L Fraser, Mr R Gale, Mr A Henderson (substitute), Mr R Laird, Mr B Lobban, Mr D Louden, Mrs L MacDonald (substitute), Mr R MacDonald, Mrs D Mackay, Mr D Mackay (substitute), Mr G MacKenzie, Mr S MacKie, Mr M Reiss, Mr K Rosie, Mr C Smith (substitute), Mr B Thompson,

Non-Member also Present:
Mrs J Barclay, Mr K Gowans, Mr J Gray, Mr A Jarvie

Officials in attendance:
Mr D Yule, Depute Chief Executive/Director of Corporate Resources
Mr E Foster, Head of Corporate Finance and Commercialism, Corporate Resources Service
Mr A Gunn, Head of Revenues and Customer Services, Corporate Resources Service
Ms L Thornton, Team Leader, Corporate Resources Service
Mr C Innes, Head of Commercial and Procurement Shared Services, Corporate Resources Service
Ms S Beswick, Principal Contracts Officer, Corporate Resources Service
Mr S Walsh, Head of People and ICT, Corporate Resources Service
Mr J Shepherd, ICT Operations Manager, Corporate Resources Service
Ms N Wallace, Environment Manager, Development and Infrastructure Service
Mr P Mascarenhas, Community and Democratic Engagement Manager, Chief Executive’s Office
Ms K Lackie, Business Manager, Chief Executive’s Office
Mrs L Dunn, Principal Administrator, Chief Executive’s Office
Ms A Macrae, Committee Administrator, Chief Executive’s Office
Miss J Green, Administrative Assistant, Chief Executive’s Office

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

Mr A Baxter in the Chair

Business

1. Apologies for Absence
Leisgeulan

Apologies for absence were intimated on behalf of Mrs M Davidson, Mr A Mackinnon, Mr C MacLeod, Ms L Munro, Mr P Saggers and Mrs C Wilson.

2. Declarations of Interest
Foillseachaidhean Com-pàirt

There were no declarations of interest.

3. Good News Stories
Naidheachdan Matha

Having expressed congratulations, the Committee NOTED that:-

• Derek Yule had recently been appointed as Depute Chief Executive in addition to his role as Director of Corporate Resources;
• Linda Thornton, Team Leader in the Corporate Resources Service, had recently graduated with a Batchelor of Arts in Business and Management, studied through the UHI; and
• The Highland Council Learning and Development Team had won the SQA Life Long Learning Centre Award (Highly Commended) for 2017.

4. Membership of Sub-Committees, Working Groups, etc
Ballrachd Fho-chomataidhean, Bhuidhnean-obrach, is eile

The Committee AGREED that:- 

i. Mrs L MacDonald replaced Mr C MacLeod on the Appeals Committee; 
ii. Mr R Bremner replaced Ms M Smith on the Employment Release Sub-Committee; and
iii. Mr D Louden replaced Ms M Smith on the Head of Service Recruitment Panel and Non-Domestic Rates Appeals Committee. 

CARE AND LEARNING SERVICE
CHÙRAIM AGUS AN IONNSACHAIDH

5. Gaelic Update
Fios às Ùr mun Ghàidhlig 

(a) Gaelic Strategy and Implementation Group

There had been circulated Report No RES/53a/17 dated 14 November 2017 by the Director of Care and Learning.

In introducing the report the Chair explained that the Gaelic Strategy and Implementation Group was a cross party group with representatives from all areas of the Highland Council and with the purpose of ensuring engagement with the Highland Council’s Gaelic Language Plan which was currently with Bòrd na Gàidhlig for ratification. Furthermore, he confirmed that once the Group was established it would seek representation from third sector partners.

In discussion, commendation was expressed for the work being undertaken by the Gaelic Strategy and Implementation Group in terms of contributing to the Highland Council Programme and also in preparation for the next census in 2021.

The Committee AGREED that the Gaelic Strategy and Implementation Group:-

i. met on a quarterly basis and that it reported bi-annually to the Corporate Resources Committee;
ii. continued to operate both at strategic and corporate level in relation to all aspects of Gaelic, including cultural development, across all services; and
iii. liaised, when necessary, with external agencies, other Local Authorities and the Scottish Government.

(b) The Lochaber Royal National Mòd 2017

There had been circulated Report No RES/53b/17 dated 8 November 2017 by the Director of Care and Learning.

During discussion, the following comments were made:-

• •recognition was given to the contribution made by Highland Council staff towards the hugely successful Royal National Mòd which was recently held in Lochaber and had the highest number of competitors entering competitions recorded to date;
• •the economic benefit to the local area was significant and would be reported in full to a future meeting of the Committee following the publication of the economic impact study commissioned by An Comunn Gàidhealach; and
• •due to the success of the Royal National Mòd in Lochaber the Highland Council was in a strong position to attract future events to the area beyond 2020.

The Committee:-

i. NOTED the positive impact of the Royal National Mòd in the Lochaber area; and
ii. APPROVED early work on securing the Royal National Mòd to the Highland Council area and beyond 2020.

FINANCIAL MONITORING
SGRÙDADH IONMHASAIL

6. Corporate Revenue Monitoring Report to 30 September 2017
Aithisg Sgrùdaidh Teachd-a-steach Corporra gu 30 Sultain 2017

There had been circulated Report No RES/54/17 dated 6 November 2017 by the Director of Corporate Resources.

During discussion, the following comments were made:-

• concern was expressed regarding unallocated savings which were not achieved and repeatedly carried forward into the next financial year;
• concern was expressed that vacancy management was being used too much as a savings tool and it was suggested that departments, with the exception of Education where teachers were needed, should consider a different approach when vacancies arose. In this regard, it was confirmed that workforce plans were very important for future planning and similar concerns had been discussed at the Administration Budget Working Group;
• for future financial reports an indication was sought of whether the actual spend to date was appropriate in terms of the overall budget which was essential to provide Members with confidence and understanding of the spend to date and whether an underspend or overspend was likely at the year end;
• a review of how the Care and Learning budget was projected was requested so that it was better planned to mitigate against the various pressures which arose every year; 
• there was an issue regarding how the Council budgeted for demand led services such as looked after children, homelessness and income generation relating to car parking charges, which should be considered more realistically in terms of what the savings could be achieved; and
• the work being undertaken relating to the re-design of the Council included a peer review of car parking charges cross Highland which took into account what could realistically be charged without affecting income.

The Committee:-

i. NOTED the financial position of the General Fund and HRA revenue budgets as at 30 September 2017 and the estimated year end forecast;
ii. NOTED the status of budgeted savings in the year; and
iii. APPROVED the mid-year budget virements as detailed in Appendix 8 to the report.

7. Corporate Capital Monitoring Report to 30 September 2017
Aithisg Sgrùdaidh Calpa Corporra gu 30 Sultain 2017

There had been circulated Report No RES/55/17 dated 6 November 2017 by the Director of Corporate Resources.

During discussion, the following comments were made:-

• the Administration Budget Working Group had proposed to significantly change the approach for budget setting in that the Capital Programme would be presented to Members for determination at the same time as the revenue budget at the annual budget setting meeting in February;
• in relation to Government Grant Income, reassurance was sought and received that the full amount of funding was expected to be received by the year end;
• the decision to consider the capital and revenue budgets together was welcomed and responding to a request  assurance was provided that the Administration would share details of the capital programme and revenue budget with the Opposition at the earliest opportunity;
• the future role of slippage in the capital budget was queried and in response it was explained that deliverability of the programme was a key factor being scrutinised to avoid the need for slippage; and
• clarification was sought of when the Sale of Council House Receipts would become zero as far as the Council was concerned.

The Committee NOTED the financial position of the General Fund and HRA Capital Programmes as at 30 September 2017.

8. Finance Service and Welfare Budget Revenue Monitoring to 30 September 2017
Sgrùdadh Teachd-a-steach Buidseat Seirbheis an Ionmhais agus Sochair gu 30 Ògmhios 2017

There had been circulated Report No RES/56/17 dated 2 November 2017 by the Director of Corporate Resources.

During discussion, the following comments were made:-

• confirmation was sought and received that the expected level of Other Income would be achieved by the year end;
• the year end variance column of the monitoring reports showed if the Finance Service expected any changes during the year;
• an explanation was sought regarding the historical bank charges which were included in the expected overspend in the Directorate Section; and
• an update was sought on the progress of achieving the savings proposal in relation to Procurement which it was confirmed would be achieved but not within the current year and more detail would be provided during the agenda item on procurement later on in the meeting.

The Committee NOTED the Revenue Monitoring position for the period to 30 September 2017 and AGREED that a detailed explanation of the historical bank charges be circulated to all Members.

9. Corporate Development Service Revenue Monitoring Report to 30 September 2017 
Aithisg Sgrùdaidh Teachd-a-steach Seirbheis an Leasachaidh Chorporra gu 30 Ògmhios 2017

There had been circulated Report No RES/57/17 dated 3 November 2017 by the Director of Corporate Resources.

During discussion, the following comments were made:-

• an explanation was sought and received regarding the significant increase of known pressures in the Licensing budget which was a good example of where a budget had carried higher levels of income and had not been subsequently adjusted when setting the budget in future and was due to the service having limited control over fees which were set nationally and was therefore based on assumptions about demand; and
• clarification was sought and received that the actual expenditure to date of the budget for ICT Services was low due to a timing issue relating to payment of the external contractor but that it was anticipated that the annual budget would be fully spent.

The Committee:-

i. AGREED the financial position of the Corporate Development Service budget as at 30 September 2017; and
ii. NOTED the status of budgeted savings in the year.

10. Corporate Development Service Capital Monitoring Report to 30 September
Aithisg Sgrùdaidh Calpa Seirbheis an Leasachaidh Chorporra gu 30 Ògmhios 2017

There had been circulated Report No RES/58/17 dated 6 November 2017 by the Director of Corporate Resources.

During discussion, the following comments were made:-

• explanation was sought and received that the increase in the total project budget for ICT Reprovision was due to changes in the exchange rate;
• confirmation was sought and received that the Chromebooks were being purchased directly by the Council and that the ICT Contract with Wipro was priced in Pound sterling with an allowance for annual inflation;
• concern was expressed regarding the additional expenditure relating to the ICT Transitions Project and whether this would be a reoccurring theme;
• it was queried whether an alternative to the Chromebook would be considered if the cost continued to increase due to further adverse variations to the exchange rate. In response, it was explained that a strategy to deliver the Chromebooks had been agreed and there was not any current proposals to reconsider; and
• given the implications on the rollout of the Chromebooks and the risk of the exchange rate it was suggested that consideration be given to moving to a different foreign exchange model such as hedging.

The Committee AGREED:-

i. the financial position of the Corporate Development Service capital budget as at 30 September 2017; and
ii. that consideration be given to moving to a different foreign exchange model.

11. Chief Executive’s Office and Members’ Revenue Monitoring Report to 30 September 2017 
Aithisg Sgrùdaidh Teachd-a-steach Oifis an Àrd-Oifigeir agus nam Ball gu 30 Ògmhios 2017

There had been circulated Report No RES/59/17 dated 6 November 2017 by the Chief Executive.

The Committee:-

i.  AGREED the financial position of the Chief Executive’s Office and Members’ budget as at 30 September 2017; and
ii. NOTED the status of budgeted savings in the year. 

12. Chief Executive’s Office Capital Monitoring Report to 30 September 2017    
Aithisg Sgrùdaidh Calpa Oifis an Àrd-Oifigeir gu 30 Ògmhios 2017

There had been circulated Report No RES/60/17 dated 6 November 2017 by the Chief Executive.

In discussion, an indication was sought regarding the future of the Capital Discretionary Fund in terms of whether it would change, how it would be topped up every year and what it aimed to achieve.  In response, it was explained that the Budget Working Group had not yet made a decision on this but ultimately this would be a decision for Members at the budget setting meeting on 15 February 2018.

The Committee AGREED the monitoring position for the Chief Executive’s Office capital budget as at 30 September 2017.

CORPORATE RESOURCES SERVICE
SEIRBHEIS NAN GOIREASAN CORPORRA

13. Treasury Management
Rianachd Ionmhais

(a) Summary of Transactions
Geàrr-chunntas Ghnothaichean

There had been circulated Report No RES/61/17 dated 6 November 2017 by the Director of Corporate Resources.

In discussion, confirmation was sought and received that work was being undertaken to consider how the Capital Programme would be affected by borrowing in relation to the impact of the recent increase in interest rates.

The Committee NOTED the Treasury Management Summary of Transactions as circulated.

(b) Mid-Year Treasury Management Report 2017/18
Aithisg Stiùiridh Meadhan-Bliadhna an Ionmhais 2017/18

There had been circulated Report No RES/62/17 dated 6 November 2017 by the Director of Corporate Resources.

The Committee:-

i. NOTED the Treasury Management Mid-Year Review 2017/18;
ii. NOTED the pending reclassification of the Council to “retail” status under the Markets in Financial Instrument Directive 2014/65 MiFID II; and
iii. AGREED the Council complete the required documentation to “opt up” to “professional” status in order to ensure it could continue to implement an effective investment strategy.

14. Performance Reports
Aithisgean Coileanaidh

(a) Finance Service and Corporate Development Service Quarterly Performance Report 
Aithisg Dèanadais Ràitheil Seirbheis an Ionmhais

There had been circulated Report No RES/63/17 dated 6 November 2017 by the Director of Corporate Resources.

During discussion, Members raised the following issues:-

• an explanation was sought and provided in relation to the improvement in the Council Tax in-year collection rates relative to the position reported earlier in the meeting for Council Tax collected to date in financial year 2017/18; and
• clarification was sought and provided in relation to the fact the cost to the Council associated with the collection of outstanding Business Improvement District (BID) Levies was negligible.

The Committee NOTED the statutory and key performance indicators as circulated.

(b) Annual Occupational Health Safety and Wellbeing (OHSW) Report 2016-17
Aithisg Bhliadhnail Slàinte agus Soirbheas Slàinte Dreuchdail 2016-17

There had been circulated Report No RES/64/17 dated 2 November 2017 by the Director of Corporate Resources.

During discussion, Members raised the following issues:-

• the downward trend in relation to both accident rates and working days lost was encouraging;
• confirmation was sought and provided that the increase in the number of incidents involving violence towards teachers mainly reflected the introduction of a new reporting system into schools;
• the OHSW Team be congratulated on the recent LEAN review of occupational health which it was suggested would result in an improved and more effective service being delivered to the Council by its occupational health provider, to the benefit of both managers and staff; and
• the significant increase in the number of management referrals to occupational health for mental health issues should be interpreted as a positive development in that it was easier for staff who were suffering from poor mental health to come forward to seek support.

Thereafter, reference was made a covenant being developed by the Mikeysline Charity by which employers in the Highlands would be invited to agree to support employees suffering from mental health issues to come forward and receive support, and for employees also to support colleagues.  

In discussion, Members expressed the view that it was important the Council signed up to the covenant and made a positive statement that it supported the work of Mikeysline, and in addition agreed to display the charity’s awareness literature and posters in Council buildings. 

Thereafter, the Committee:-

i. NOTED the achievements and performance for 2016/17; and
ii. APPROVED the OHSW Annual Report.

15. Commercial and Procurement Shared Service
Seirbheis Cho-roinnte Mhalairteach agus Solair

(a) Commercial & Procurement Shared Services Savings Update
Cunntas às Ùr mu Shàbhalaidhean Seirbheisean Co-roinnte Malairteach agus Solair

There had been circulated Report No RES/65/17 dated 6 November 2017 by the Director of Corporate Resources.

In discussion, clarification was sought and provided in relation to the overall savings target for the Service in the current financial year and that it was anticipated the shortfall in the savings shown to date would be met going forward.

Thereafter, reference was made to the importance of training as being key in ensuring staff co-operation and compliance with the new processes and systems, and also in relation to the challenges associated with monitoring compliance going forward.

The Committee NOTED:-

i. the position on procurement related savings;
ii. progress to date and savings achieved; and 
iii. the role of the Commercial and Procurement Shared Services enabling the delivery of Service savings.

(b) Joint Procurement Strategy
Ro-innleachd Solair nan Seirbheisean Co-roinnte

There had been circulated Report No RES/66/17 dated 3 November 2017 by the Director of Corporate Resources.

During discussion, Members raised the following issues:-

• clarification was sought and provided that the Key Performance Indicator to be developed in relation to the percentage of spend with local businesses would be provided both for the Council and also across the three local authorities; in addition it was noted that benchmark information would also be provided in respect of performance compared to other authorities across Scotland; 
• an explanation was sought in regard to the statement within the Strategy that bidders would be asked to confirm their position on the living wage across four options on the basis it was suggested this should be a mandatory requirement, and also at the lack of reference to the requirement of bidders to recognise trade unions; the Head of Commercial and Procurement Shared Services provided an assurance that these points would be reflected in how contracts were specified going forward within the terms of the relevant regulations; and
• a prime focus of the Strategy should be on growing and developing the opportunities for small local suppliers based in the Highlands.

The Committee:-

i. APPROVED the Joint Procurement Strategy on behalf of The Highland Council for 2017-2022; and
ii. NOTED that the Strategy would be published once approved by Aberdeen City and Aberdeenshire Councils.

(c) Contract Standing Orders
Òrdughan Seasmhach Cunnraidh

There had been circulated Report No RES/67/17 dated 2 November 2017 by the Director of Corporate Resources.

The Committee APPROVED the adoption and implementation of the revised Contract Standing Orders.

16. ICT Projects Update
Cunntas às Ùr mu Phròiseactan ICT

There had been circulated Report No RES/68/17 dated 2 November 2017 by the Director of Corporate Resources.

The ICT Operations Manager provided an update to the report during which he confirmed that the transition to SWAN had now been completed and the project was moving towards closure.  In response to the Chair, he advised it was anticipated confirmation would be provided to the next meeting of the Committee that the additional costs to the Council incurred as a result of the delay in the roll out of SWAN had been recovered.

Thereafter, clarification was sought and provided that the upgrade of internet explorer had been necessary on the grounds that the previous version did not meet data security standards, and that this would involve both staff input from both the Council and Wipro.  

The Committee NOTED the report.

17. Technology Transformation Programme and Network Refresh
Ùrachadh Prògram agus Lìonra Cruth-atharrachaidh Teicneòlais

There had been circulated Report No RES/69/17 dated 2 November 2017 by the Director of Corporate Resources.

During discussion, Members raised the following issues:-

• confirmation was sought and provided that the Members in Ward 8: Dingwall and Seaforth, would be provided with an update on the progress reported in respect of network refresh in their area; 
• clarification was sought and provided in regard to the total number of devices which would be rolled out as part of the Transformation Programme; and
• it was noted there were no issues with server capacity in relation to the additional requirements for software and hardware in respect of the Programme. 

The Committee NOTED the update on the ICT Transformation and Network Programmes. 

18. Corporate Resources Workforce Planning Report 2017-2021
Aithisg Dhealbhaidh Sgioba-obrach nan Goireasan Corporra 2017-2021

There had been circulated Report No RES/70/17 dated 2 November 2017 by the Director of Corporate Resources.

During discussion, Members raised the following issues:-

• it was suggested that workforce planning was critical in the context of  new technologies, budgetary constraints, the redesign of the Council, changing staff roles and following recent voluntary redundancy schemes;
• it was important to have the relevant data to support the development and delivery of the workforce plan over the next five years;
• the need to take a strategic approach to workforce planning across the Council to ensure there was flexibility in the ability to move staff between services;
• there should be a  focus in particular on succession planning and also on learning and development, and also on ensuring that staff had the appropriate skills set to change jobs when required;
• in terms of the age profile of the Council’s workforce, consideration be given to how to attract more younger people into the organisation;
• staff be commended on their work in the LEAN reviews which had been undertaken and which would deliver benefits for the Council going forward; and
• a point that at a recent staff briefing held in Lochaber, comments from staff had referred to the lack of awareness across the Council in relation to the skills sets of staff within the organisation; it was important therefore that workforce planning focused on ensuring that the right staff with the right skills were deployed in the right jobs.

The Committee AGREED the Corporate Resources Workforce Plan 2017 – 2021.

19. Community Empowerment Act (Scotland) – Community Asset Transfer - Review Process    
Achd Cumhachdachaidh nan Coimhearsnachdan (Alba) – Gluasad So-mhaoin Coimhearsnachd – Pròiseas Ath-sgrùdaidh

Members were advised that the Community Empowerment Act (Scotland) – Community Transfer – required the Council to consider requests from communities for the transfer of land and buildings. 

In this regard, requests which were recommended for approval would be considered by the Environment, Development and Infrastructure Committee. 

Where requests were refused, community bodies had a right to ask for a review of that decision within a timescale of six months. On that basis, it was proposed that a Review Panel comprising five Members (one Member from each political group) with Substitutes if necessary should be set up from within the membership of the Corporate Resources Committee.

It was also be noted that, following consideration and decision by the Review Panel, community bodies would still have a further right of appeal to Scottish Ministers.

The Committee AGREED the establishment of the Review Panel in relation to the Community Asset Transfer review process as detailed.

DEVELOPMENT AND INFRASTRUCTURE
LEASACHADH AGUS BUN-STRUCTAIR

20. Highland LEADER Programme – Cashflow Finance 
Prògram LEADER na Gàidhealtachd – Ionmhas Sruth-airgid

There had been circulated Report No RES/71/17 dated 6 November 2017 by the Director of Development and Infrastructure.

During discussion, Members raised the following issues:-

• clarification was sought and provided that the uptake in relation to the loan finance element of the Programme would be as anticipated; and
• a request that Members be provided with details of the projects being supported by the Cairngorms National Park LEADER Programme in Ward 20: Badenoch and Strathspey.

The Committee:- 

i. NOTED the take up of loan finance through the Highland Council support scheme to date; 
ii. AGREED to amend the criteria for accessing Highland Council loan finance support as described in the report; and
iii. AGREED that details of the projects in Ward 20: Badenoch and Strathspey, being supported through the Cairngorm National Park LEADER Programme, be included in the next update report to the Committee.

MINUTES OF MEETINGS
GEÀRR-CHUNNTAS CHOINNEAMHAN

21. Commercial Board: Minutes of Meetings
Bòrd Malairteach: Geàrr-chunntasan Choinneamhan

There had been circulated Minutes of Meetings of the Commercial Board held on 28 September 2017 and 9 November 2017.

The Committee APPROVED the Minutes and AGREED the recommendations contained therein. 

22. Minutes of Meetings
Geàrr-chunntasan Choinneamhan

The Committee APPROVED the following Minutes of Meetings:-

i. Employment Release Sub-Committee held on 28 September 2017;
ii. Appeals Committee held on 20 September, 21 September and 26 September 2017;
iii. Central Safety Committee held on 8 September and 2 November 2017; 
iv. Non Domestic Rates Appeals Committee held on 11 October 2017; and 
v. Staff Partnership Forum held on 2 November 2017.

The meeting ended at 12.40 pm.