Agendas, reports and minutes

Minutes of Meeting of the Corporate Resources Committee held in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Wednesday, 28 February 2018 at 10.30 am.

Present:
Mr R Bremner
Mr J Bruce
Mrs C Caddick
Mrs H Carmichael
Dr I Cockburn
Mrs M Davidson
Mr L Fraser
Mr A Jarvie
Mr R Laird
Mr B Lobban  
Mr D Louden
Mrs L MacDonald
Mrs D Mackay
Mr D Mackay (substitute)
Mr G MacKenzie
Mr S MacKie
Mr A Mackinnon
Mr M Reiss
Mr P Saggers
Mr B Thompson
 
Non-Member also Present:
Mrs J Barclay
Mr A Baxter
Mr M Finlayson 
Mr R MacWilliam
Mr A Sinclair

Officials in attendance:
Mr D Yule, Depute Chief Executive and Director of Corporate Resources
Mr S Black, Director of Development and Infrastructure
Mr E Foster, Head of Corporate Finance and Commercialism, Corporate Resources Service
Mr A Gunn, Head of Revenues and Customer Services, Corporate Resources Service
Mr A Maguire, Head of Development and Regeneration, Development & Infrastructure Service
Mr S Walsh, Head of People and ICT, Corporate Resources Service
Mr M Bailey, Principal Project Manager, Commercial & Continuous Improvement Team, Corporate Resources Service
Ms E Barrie, HR Manager, Corporate Resources Service
Mr M Kelly, Project Manager, Commercial & Continuous Improvement Team, Corporate Resources Service
Ms K Lackie, Business Manager, Chief Executive’s Office
Mr P Mascarenhas, Community and Democratic Engagement Manager, Chief Executive’s Office
Mr D Scott, ICT Strategy and Engagement Manager, Corporate Resources Service
Mr J Shepherd, ICT Operations Manager, Corporate Resources Service
Mr P Whitham, Senior Learning & Development Adviser, Corporate Resources Service
Mrs L Dunn, Principal Administrator, Chief Executive’s Office
Mr A MacInnes, 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 Mackinnon in the Chair

Preliminaries

Prior to commencing the meeting and in view of the particularly adverse weather conditions, the Chairman paid tribute to the winter maintenance staff and commended them for their work in ensuring that the roads and pavements were kept safe and this was supported by the Committee.

Business

1. Apologies for Absence
Leisgeulan

Apologies for absence were intimated on behalf of Mr R Gale, Mr R MacDonald, Ms L Munro, Mrs M Paterson, Mr K Rosie and Mrs C Wilson.

2. Declarations of Interest
Foillseachaidhean Com-pàirt

There were no declarations of interest.

Following on from the above, it was highlighted that as a result of a Notice of Motion it had been agreed at the full Council on 14 December 2017 that a report on Universal Basic Income would be submitted to the next meeting of the Corporate Resources Committee. It was therefore disappointing to note that this report was not on the agenda and an explanation was sought in this regard.

In response, it was confirmed that a report on Universal Basic Income had been drafted and submitted to the Poverty and Inequalities Working Group in the first instance, and the Chair provided an assurance that a report on this item would be submitted to the next meeting of the Committee.

The Committee AGREED that a report on Universal Basic Income be submitted to the next meeting on 24 May 2018.

3. Good News Stories
Naidheachdan Matha

The Committee NOTED that Louise McGunnigle, HR Business Partner had recently become a Member of the Chartered Institute of Personnel and Development and Hannah Tinsley, HR Officer had achieved her Post Graduate Certificate in Human Resources. 

CARE AND LEARNING SERVICE
CHÙRAIM AGUS AN IONNSACHAIDH

4. Gaelic and Culture Update                                                          
Aithisg Ùrachaidh Gàidhlig agus Cultair

There had been circulated Report No RES/01/18 dated 19 February 2018 by the Director of Care and Learning.

The Chair welcomed the positive report and the prominent place afforded to Gaelic in the operation of the Committee. He advised that the Council continued to make a large contribution to the development of the language and its culture and that the progress and achievements being made were evident in the following:-

• the Council’s third language plan had now been considered by Bord na Gaidhlig and had received favourable feedback;
• a new Head Teacher had been appointed at the Inverness Gaelic School and Portree Gaelic School would be open in the near future;
• there were considerable opportunities on offer throughout the Highlands for adults wishing to learn the language;
• there was an Impressive range of opportunities on offer to pupils of all ages and interesting projects planned; and
• the success of Highland schools at the prestigious FilmG initiative with a good range of awards.

Thereafter, it was reported that discussions would be held between the Chair and Mr R Bremner on the potential to strengthen the reporting to the Committee and in terms of further improving accountability for the funding which supported the work around Gaelic.  

Thereafter, the Committee NOTED the report.

FINANCIAL MONITORING
SGRÙDADH IONMHASAIL

5. Corporate Revenue Monitoring Report to 31 December 2017     
Aithisg Sgrùdaidh Teachd-a-steach Corporra gu 31 Dùbhlachd 2017

There had been circulated Report No RES/02/18 dated 16 February 2018 by the Depute Chief Executive and Director of Corporate Resources.

In discussion, the following main points were raised by Members:-

• It was highlighted that at this point in the financial year only 67% had been spent in relation to the Care and Learning Service budget and consequently there would need to be a rapid acceleration in spend in the remaining three months of the financial year to meet the year end budget estimate;
• It was noted that £15.3m had been spent on welfare services to date, with a year end budget estimate of £16.6m.  This would mean a £1.3m spend over the next three months, which did not seem a reasonable spread in comparison to spend over the rest of the year.  An undertaking was given to provide a more detailed explanation to Councillor D Louden on the welfare services spend;
• It was noted that Council Tax income was forecast to be marginally short of budgeted levels and it was queried if this was a collection issue. It was explained that this was attributable to a more stretching income target being set for 2017/18;
• In terms of the budget heading entitled Other Costs, an explanation was sought on the reasons for the substantial difference between the annual budget and the year end estimate.  Further detail on this would be provided to Councillor C Caddick;
• In terms of pension strain costs, it was explained that this related to staff that had left, e.g. via early release, the cost of which could be spread over a period of up to five years and confirmation was provided that it did not relate to the Voluntary Redundancy Scheme which had been funded via Council balances.  Further information could be provided to Councillor C Caddick on the make-up of the pension strain costs;
• It was confirmed that other than those pressures detailed in the report, there were no other specific budget pressures at present;
• Reference was made to the Care and Learning Service budget being predicted to overspend.  This had also happened in previous years and it was suggested that the budget allocated to this Service was therefore inadequate as the Service was consistently overspending their budget.  It was advised that while there were budget challenges and large variances throughout the year, the budget for Care and Learning had usually met its target by the year end.  Also, it was proposed to introduce zero based budgeting to understand more clearly the budget pressures;
• It was suggested that a ‘year to date budget’ should be produced for all Services that could be monitored quarterly, which would show the predicted timings of income and expenditure throughout the year, making budgeting more transparent;
• It was noted that there was a significant overspend on winter maintenance and concern was expressed about the impact that this and other budget pressures would have on the Council’s non-earmarked general fund reserve.  It was queried what the threshold was for alternative sources of funding being required other than using up the depleting Council reserves;
• While zero based budgeting was generally supported, it was queried how to account for demand led budgets such as winter maintenance or out of authority placements. It was felt that there was a need to find a better way of budgeting for this type of spend; and
• It was queried whether there was any prospect for additional Scottish Government funding to meet the overspend in winter maintenance, given the exceptionally long and harsh winter, and the substantial road network that had to be maintained.  It was suggested that an approach should be made to the Scottish Government’s Transport Minister seeking additional funding for this financial year for winter maintenance. 

In response the Depute Chief Executive and Director of Corporate Resources acknowledged the points raised by Members in regard to budgeting and he highlighted different methods of budget management.  He indicated that it could be helpful if Members received further information/explanations in regard to the budget assumptions but overall he felt that the basis of working with budget holders to focus and project the year end position had served the Council well and had also been commented on favourably by Audit Scotland as providing sound financial management.

Thereafter, the Committee:-

i. APPROVED the financial position of the General Fund and HRA revenue budgets as at 31 December 2017 and NOTED the estimated year end forecast and ensuing impact on balances;
ii. AGREED that an approach be made to the Scottish Government’s Transport Minister seeking additional funding for the current financial year for winter maintenance; and
iii. NOTED the status of budgeted savings in the year.

6. Corporate Capital Monitoring Report to 31 December 2017 
Aithisg Sgrùdaidh Calpa Corporra gu 31 Dùbhlachd 2017

There had been circulated Report No RES/03/18 dated 15 February 2018 by the Depute Chief Executive and Director of Corporate Resources.

It was noted that the Council had received circa £5m from receipts from the sale of Council Houses.  Although the Council house sale scheme had closed, it was understood that there was a substantial number of applications still being processed. An undertaking was given to provide Councillor A Jarvie with information on the number of applications still to be processed and the receipt that was likely to be made from them. 

In relation to the underspend of £7.8m in the Housing Revenue account, the details of this would be provided to Councillor I Cockburn.

The Committee AGREED the financial position of the General Fund and HRA Capital Programmes as at 31 December 2017.

7. Corporate Resources Service and Welfare Budget - Revenue Monitoring to 31 December 2017 
Sgrùdadh Teachd-a-steach Seirbheisean nan Goireasan Corporra gu 31 Dùbhlachd 2017

There had been circulated Report No RES/04/18 dated 19 February 2018 by the Depute Chief Executive and Director of Corporate Resources.

In particular the positive outcomes from the welfare budget income and expenditure was commended as was the increasing take up on school clothing grants.

The Committee AGREED the financial position of the Corporate Resources Service and Welfare budget as at 31 December 2017.

8. Corporate Resources Service Capital Monitoring Report to 31 December 2017 
Aithisg Sgrùdaidh Calpa Seirbheis nan Goireasan Corporra gu 31 Dùbhlachd 2017

There had been circulated Report No RES/05/18 dated 19 February 2018 by the Depute Chief Executive and Director of Corporate Resources.

The Committee AGREED the financial position of the Corporate Resources Service capital budget as at 31 December 2017.

9. Chief Executive’s Office and Members’ Revenue Monitoring Report to 31 December 2017                                                                               
Aithisg Sgrùdaidh Teachd-a-steach Oifis an Àrd-Oifigeir agus nam Ball gu 31 Dùbhlachd 2017

There had been circulated Report No RES/06/18 dated 15 February 2018 by the Chief Executive.

Reference was made to the overspend in the Members’ budget and it was clarified that this related to under achieved income from Members catering.  This had been slightly offset by a vacancy.  If the vacancy was not taken as a saving the overspend in the Members’ budget would be circa £16,000.  It was therefore stressed that not achieving this target was unacceptable, particularly in view of the current financial climate, and it was confirmed that this was currently being reviewed and the outcome from this would be reported.

The Committee AGREED the financial position of the Chief Executive’s Office and Members’ budget as at 31 December 2017 and NOTED the status of budgeted savings in the year.

10. Chief Executive’s Office Capital Monitoring Report to 31 December 2017 
Aithisg Sgrùdaidh Calpa Oifis an Àrd-Oifigeir gu 31 Dùbhlachd 2017 
 
There had been circulated Report No RES/07/18 dated 16 February 2018 by the Chief Executive.

It was queried why the City Gateways budget was in the Chief Executive’s Office budget, as it was felt that it would be more appropriate in the Development and Infrastructure Service budget.  It was advised that the City Gateways budget would in future be managed through the City of Inverness Area Committee as it was concerned with City developments.

The Committee AGREED the monitoring position for the Chief Executive’s Office capital budget as at 31 December 2017.

CORPORATE RESOURCES SERVICE
SEIRBHEIS NAN GOIREASAN CORPORRA

11. Treasury Management – Summary of Transactions 
Rianachd Ionmhais - Geàrr-chunntas Ghnothaichean

There had been circulated Report No RES/08/18 dated 14 February 2018 by the Depute Chief Executive and Director of Corporate Resources.

During discussion, the following main points were raised:-

• Appreciation was expressed for the recent Treasury Management workshop training session which had been most informative.  It had highlighted the volume of daily transactions undertaken with a large number of financial institutions to ensure maximum benefits and utilisation of low rates for short term borrowing and staff were commended for this excellent work;
• Although it was acknowledged that LOBO Market Loans was a historic situation, it was highlighted that this impacted all local authorities across Scotland and it was proposed that an approach should be made to CoSLA with a view to working together to get the lending rate lowered; and
• It was highlighted that many of the Public Works Loan Board loans were very old hence the high average interest rate and it was queried as to whether there was any scope within the cap set by the Council to borrow more finance based on current borrowing rates which were much lower.

The Committee:-

i.  NOTED the Treasury Management Summary of Transactions as circulated; and
ii. AGREED that a request be made to CoSLA for joint working across all local authorities to have the LOBO Market Loan rates reduced.
 
12. Corporate Resources Service Quarterly Performance Report
Aithisgean Coileanaidh Seirbheis nan Goireasan Corporra

There had been circulated Report No RES/09/18 dated 9 February 2018 by the Depute Chief Executive and Director of Corporate Resources.

During discussion, the following points were made:-

• The Committee welcomed the report and commended staff for the excellent performance results contained in the report, particularly in regard to Housing Benefit claims, for which the Council was first in Scotland in terms of speed of processing and administering claims and also for the high efficiency of the Council in paying invoices and the importance of this for small businesses was emphasised;
• Advice was sought and provided on a suggestion made at a local community council meeting should there be any public disobedience by refusing to pay Council Tax;
• Further information was provided on the steps that were taken to pursue outstanding Council Tax payments and ensure maximum collection;
• Should the Nairn BID levy proceed, an assurance was provided that there would be no material difference in the Council’s approach and charge for collection of the BID levies which would be full cost recovery; and
• Concern was expressed that there was a downward trend in regard to the level of BID levies collected and explanation was sought and provided as to the reason for this trend.

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

13. Opportunity to Generate Income by Installing Solar PV on the Council Estate
Iomairt Cumhachd Grèine

There had been circulated Report No RES/10/18 dated 5 February 2018 by the Depute Chief Executive and Director of Corporate Resources.

During discussion, the following main points were raised:-

• The Committee welcomed the report which they felt was an excellent opportunity for the Council to generate essential income;
• Further information was sought and provided on a number of issues including how the project could be expanded; the level of projected profits based on marginal cost of borrowing; the next project steps; and how the project would be monitored, particularly in regard to income, and reviewed;
• The change in the financial model towards onsite consumption and less reliance on the feed in tariff was welcome;
• It was essential that local Members were consulted and an assurance was provided that the project team would work closely with Members to ensure that the right local sites were identified.  In particular, a request was made for further dialogue in regard to potential opportunities available for the car park behind Nairn Court House and it was also queried as to whether there was any scope for partnership working in regard to locating solar PVs on common good land;
• Although the overall principles of the initiative were supported, concern was expressed in regard to the practicalities of the installation of the solar PV and further information was sought on the measures that would be taken to counter vandalism; and
• It was suggested that further consideration should be given to how the project could be expanded such as purchasing land for the specific purpose of installing solar PV.

Following a unanimous recommendation from the Redesign Board on 19 December 2017, the Committee AGREED that £2.3m of self-financing capital be used to install 2.5MW of solar PV on the Council estate, achieving the net profit projections set out in the report which equated to £4.01m over a 20 year period.

14. Modern Apprenticeship Programme Update    
Aithisg Adhartais nam Preantasachdan Ùr-nodha

There had been circulated Report No RES/11/18 dated 5 February 2018 by the Depute Chief Executive and Director of Corporate Resources.

During discussion, the following key points were raised:-

• The Committee welcomed the report and although they recognised the breadth of the scheme across a range of different disciplines they were keen to ensure that the programme continued to grow and expand;
• The achievements to date were commended but concern was expressed that only four Early Year Practitioners had been pursued to March 2018 and it was stressed that this target needed to be set significantly higher in order to meet future demands;
• It was highlighted that the Council provided a vast range of training opportunities which needed to be recognised and opportunities for in-house training should also be capitalised upon; and
• It was essential that the Council worked collaboratively with stakeholders such as NHS Highland in order to promote a step change to ensure opportunities for Modern Apprenticeships were maximised across the whole of the Highlands to generate a resilient local workforce.

The Committee NOTED the excellent progress to date, current activities and future opportunities

15. Living Wage – Accredited Employer Status
Fastaiche Tuarastail Bith-beò Barantaichte

There had been circulated Report No RES/12/18 dated 8 February 2018 by the Depute Chief Executive and Director of Corporate Resources.

During discussion, concern was expressed in regard to the role of HR in identifying pay rates of employees of current contractors which was felt to be essentially a procurement issue and further clarity was provided that HR would be involved in setting out the parameters of the accreditation and Business Support colleagues would be contacting contractors with specialist direction and support provided by Procurement.  In addition, confirmation was also provided that a clear distinction was made in regard to suppliers and contractors.

The Committee AGREED to support an application to become an Accredited Living Wage employer to reduce poverty and improve pay for employees in the Highlands.

16.ICT Transformation and Network Refresh                                    
Prògram Cruth-atharrachaidh ICT
 
There had been circulated Report No RES/13/18 dated 15 February 2018 by the Depute Chief Executive and Director of Corporate Resources.

Prior to opening the item for discussion, the Chairman explained that in view of the commercially sensitive aspects relating to this report, a Member briefing had been held on 27 February 2018 to enable detailed discussions and he expressed his appreciation to Members for attending this positive meeting.  He further apologised for an error he had made on this matter at the meeting of the Committee held on 30 August 2017 and he provided an assurance that a report would be provided as had been requested at the briefing.  

Thereafter, the following key points were raised:-

• Rollout of the Chromebooks was dependent on the network refresh being completed and disappointment was expressed at the delays to these two aspects of the programme particularly as the timescales and revised dates were still unknown.  Further disappointment was expressed as it was also not yet known whether there would be any further impact/delays to the next Associated School Groups (ASGs) and further information was sought as to whether there would be any chance of catching up on the lost time within the rollout schedule;
• The importance of communicating with the relevant schools and keeping them informed of progress was emphasised and it was acknowledged that this needed to be improved;
• Concern was expressed that it had been three months since it had been identified that there would be a delay to the programme but that revised dates were still awaited and an assurance was sought that a revised Implementation Programme with timescales would be demanded.  It was suggested that the lack of a revised programme indicated that this matter was not being properly prioritised and being addressed as a matter of urgency and in order to take this forward it was recommended that the Council adopt a much tougher approach;
• In addition, concern was expressed that lessons had not been learnt from past contract procurements, particularly in regard to the educational aspects of the contract.  It was highlighted that Chromebooks had been delivered to all schools in the Millburn and Dingwall ASG as well as Portree High School and would also soon be delivered to the Portree ASG primary schools despite the fact that they could not yet be utilised.  Therefore, concern was expressed that if there were further delays to the programme then the equipment would be out of date by the time it could be accessed and used;
• It was highlighted that schools needed to plan, both on an individual and ASG basis, and a request was made for this to be taken on board as well as the needs of the school in terms of their curriculum when developing the revised implementation timescales;
• It was queried as to whether staff had been trained on teaching using Chromebooks and whether the value of these as a learning tool, compared to traditional teaching techniques, had been measured;
• It was recommended that a detailed risk analysis supported by contingency plans should be prepared;
• It was acknowledged that working in partnership with the contractor was helpful; however it was stressed that the Council needed to be a robust client using all options available to ensure that the service that the Council was paying for was being delivered; and
• Confirmation was provided that when Office 365 was rolled out to users they would have significantly increased mailbox and storage capacity.  In the interim before the rollout there would be no additional charge for increases in mailbox sizes for users when required.

The Committee NOTED the update on the ICT Transformation and Network Programmes and that a further report would be provided as requested at the briefing.

17. ICT Projects Update
Cunntas às Ùr mu Phròiseactan ICT

There had been circulated Report No RES/14/18 dated 7 February 2018 by the Depute Chief Executive and Director of Corporate Resources.

The Committee NOTED the report.

CHIEF EXECUTIVE’S OFFICE
Oifis an Àrd-Oifigeir

18. Community Asset Transfer: Review Process
Gluasad So-mhaoin Coimhearsnachd: Pròiseas Ath-sgrùdaidh

There had been circulated Report No RES/15/18 by the Chief Executive.

During discussion the following main points were raised:-

• The need for a clear governance process was accepted but it was requested that it be monitored and, if necessary, reviewed to ensure that it was an efficient and effective procedure;
• Given the requirement for the formal process as set out in para 2.5 of Appendix 2 to the report, further information was sought on the format of the proceeding stage during which it was clarified that this was undertaken in less stringent and more collaborative manner;
• Clarity was sought on the role of third/interested parties representation and whether there were any restrictions, e.g. geographical, community groups only, etc in regard to this; and
• With regard to para 1.1 fourth bullet point on Appendix 2 to the report, it was suggested that the Chair of the panel should only be reviewed if the Chair was to cease being a member of the panel.

Thereafter, the Committee:-

i. APPROVED the process for the Member Review Panel and proposed hearing procedure for reviews of community asset transfer decisions  as set out at Appendix 2 to the report; and
*  ii. AGREED to recommend to Council that the Scheme of Delegation be updated to reflect the process.

MINUTES OF MEETINGS
GEÀRR-CHUNNTAS CHOINNEAMHAN

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

There had been circulated Minutes of Meetings of the Commercial Board held on 7 December 2017, 16 January 2018 and 16 February 2018 the terms of which were APPROVED.
 
20. Minutes of Meetings 
Geàrr-chunntasan Choinneamhan

The Committee:-

i.   NOTED the Minutes of the Employment Release Sub-Committee held on 7 December 2017 and 8 February 2018;
ii.  NOTED the Minutes of the Appeals Committee held on 22 November 2017;
iii. APPROVED the Minutes of the Central Safety Committee held on 2 February 2018.; and
iv. APPROVED the Minutes of the Staff Partnership Forum held on 2 February 2018.

21.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 it involved the likely disclosure of exempt information as defined in Paragraphs 9 and 11 of Part 1 of Schedule 7A of the Act.

CORPORATE RESOURCES SERVICE
SEIRBHEIS NAN GOIREASAN CORPORRA

22. Equal Pay Update  
Cunntas às Ùr mu Phàigheadh Co-ionann

There had been circulated to Members only Report No RES/16/18 dated 6 February 2018 by the Depute Chief Executive and Director of Corporate Resources.

Following discussion, the Committee NOTED the report.

23. SWAN Transition Delay Settlement 
Rèiteachadh Eadar-ghluasad SWAN
 
There had been circulated to Members only Report No RES/17/18 dated 2 February 2018 by the Depute Chief Executive and Director of Corporate Resources.

Following discussion, the Committee NOTED the report.
 
DEVELOPMENT AND INFRASTRUCTURE
LEASACHADH AGUS BUN-STRUCTAR

24. Commercial Investment and Development Opportunity      
Ceannach Tasgadh Malairteach
 
There had been circulated to Members only Report No RES/18/18 dated 15 February 2018 by the Director of Development and Infrastructure.

Following discussion, the Committee AGREED the recommendations as outlined in the report.

The meeting ended at 1.15 pm.