Agendas, reports and minutes

Minutes of Meeting of the Corporate Resources Committee held in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Wednesday 21 November 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 R Gale
Mr J Gray (substitute)
Mr A Jarvie
Mr R Laird 
Mr B Lobban
Mr D Louden
Mr R MacDonald (by Video Conference)
Mr G MacKenzie
Mr S MacKie
Mr A Mackinnon
Mrs M Paterson
Mr M Reiss
Mr D Rixson
Mr P Saggers
Mr B Thompson

Non Members also Present:
Mrs J Barclay
Mr A Christie 
Mr T Heggie
Mr D Mackay

Officials in attendance:

Mr D Yule, Depute Chief Executive and Director of Corporate Resources
Mr E Foster, Head of Corporate Finance and Commercialism, Corporate Resources Service
Mr S Walsh, Head of People and ICT, Corporate Resources Service
Mr J Shepherd, ICT Operations Manager, Corporate Resources Service
Mr P Whitham, Senior Learning and Development Adviser, Chief Executive’s Office
Mrs L Dunn, Principal Administrator, Chief Executive’s Office
Ms A Macrae, Committee Administrator, 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

Business

1.Apologies for Absence
Leisgeulan

Apologies for absence were intimated on behalf of Mr G Adams, Mrs G Campbell-Sinclair, Mrs D Mackay and Mr K Rosie.

2. Declarations of Interest
Foillseachaidhean Com-pàirt

Item 4: Mr R Bremner (non-financial)

3. Good News Stories
Naidheachdan Matha

The Committee NOTED this item.

CARE AND LEARNING SERVICE
SEIRBHEIS A’ CHÙRAIM AGUS AN IONNSACHAIDH

4. Gaelic and Culture Update                                                                  
Aithisg Ùrachaidh Gàidhlig agus Cultair

Declaration of Interest – Mr R Bremner declared a non-financial interest in this item as the Chair of the Caithness branch of An Comunn Gàeidhealach, 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 had been circulated Report No RES/50/18 dated 12 November 2018 by the Director of Care and Learning and a short film on bilingualism was shown to Members in respect of this item.

The Chair thanked the Gaelic Team within the Council for preparing the detailed update on Gaelic and related cultural matters and on the range and scope of the activities and initiatives being undertaken.

In discussion, Members raised the following key issues:-

• the film ‘Fàs Foghlaim’ highlighted the important benefits of bilingualism for pupils in Highland schools and the range of employment opportunities which were available;
• the outstanding item in relation to the Council’s third Gaelic Language Plan had been addressed and formal notice was awaited from Bord na Gàidhlig that the Plan had been approved;
• the numbers of pupils involved in Gaelic tuition in Highland as set out in the report emphasised the Highland’s leading role on this front;
• the Celtic Media Festival would be held in Aviemore in June 2019 and the Royal National Mod would return to Inverness in 2020 bringing significant economic and cultural benefits to the area;
• the many competitors from Highland were congratulated on their success at the recent Royal National Mod in Dunoon;
• the Council continued to support a number of other Gaelic events and initiatives in the area, details of which were provided;
• the need for more support mechanisms to be in place to support the Council to meet the specific aims within the Scottish Government’s Gaelic Language Plan 2016-2021 to increase the number of Gaelic speakers;
• the need to plan for and evidence the positive impact high profile events and festivals and community events such as the Royal National Mod to be held in Inverness in 2020 would have on the Highland economy;
• the Lochaber Committee had adopted the theme of cultural heritage as one of its local priorities and was considering how this could be promoted;
• details of the projected number of Gaelic secondary school teachers over the next five years be reported to the next Committee; and
• in terms of educational outcomes an explanation be provided on how Gaelic fitted with the 1+2 languages strategy be provided to the next Committee.

During further discussion, it was suggested that the Gaelic update reports to the Committee required to be strengthened to better evidence for Members the benefits of the Council’s investment in Gaelic and income secured through other funding sources was delivering for the area. In particular there was a need to set targets by which to measure and monitor performance and to improve accountability. There was also a need to cross reference the work of the Corporate Resources Committee, Care, Learning and Housing Committee and Gaelic Strategy Implementation Group in relation to Gaelic.

Thereafter, the Leader requested that Chair and Councillor Bremner provide a list of suggested Gaelic performance measures for inclusion in the draft Council Programme.
        
The Committee:-

i. NOTED the work that had been undertaken and that recommendations could be incorporated into the relevant developments and activities as they progress;
ii. AGREED that details of the projected number of Gaelic secondary school teachers over the next five years be reported to the next Committee;
iii. AGREED that an explanation of how Gaelic fitted with the 1+2 languages strategy be provided to the next Committee; and
iv. NOTED that the Chair and Councillor Bremner would provide a list of suggested Gaelic performance measures for inclusion in the draft Council Programme.

FINANCIAL MONITORING
SGRÙDADH IONMHASAIL

5. Corporate Revenue Monitoring Report to 30 September 2018     
Aithisg Sgrùdaidh Teachd-a-steach Corporra gu 30 Sultain 2018

There had been circulated Report No RES/51/18 dated 9 November 2018 by the Depute Chief Executive and Director of Corporate Resources.

In discussion, Members raised the following issues:-

• it was encouraging to note that the net year overspend was forecast to be £2.238m which represented a significant reduction on the position reported to the previous meeting and was as a direct result of the urgent corrective action taken;  
• the position continued to be closely monitored by the Administration and Executive Leadership Team and it was hoped a balanced budget could be achieved at the end of the financial year.  However there were potential challenges in relation to winter maintenance in the event of a severe winter and pressures from out of authority placements for children, an assurance being provided the focus would continue to be on the best option for the child; and
• details of the cost of repairing the landslip at Kinloch Hourn be provided when this was available given the potential impact this might have on the Community Services budget.

Thereafter, discussion followed on the risks associated with the outcome of the national pay award negotiations.  In addition, clarification was sought on the assessment done on the financial implications of any industrial action by teachers given that the EIS membership had overwhelmingly voted to reject the pay offer. 

The Depute Chief Executive and Director of Corporate Resources advised that the national Pay Awards had been flagged as a risk for a significant period of time and that in common with all other local authorities in Scotland the Council had set a budget provision on the basis of the pay offer to the unions. Any settlement above that would represent an additional cost burden to the Council, would not be affordable in the current climate, and would require to be offset by significant savings in the current year as well as ongoing implications for the next financial year. Industrial action would result in a short term saving, however the main focus should be on the long term implications.

The Leader advised that this was an issue for all local authorities in Scotland and she would share with the Committee the emails from COSLA regarding the national Pay Award negotiations. 

In response to a question, the Depute Chief Executive and Director of Corporate Resources explained that the Council had based its budget provision on the Scottish Government’s public sector pay policy, details of which he provided. The current offer on the table was 3% for salaries up to £81,000 which already created a budget gap of approximately £400,000 in the current year. Whilst most Councils had made budget assumptions for future years’ pay awards, this should not be confused with affordability as Members were aware of the significant three year budget gap, which was impacted on by pay cost increases.

The Committee:-

i. AGREED the financial position of the General Fund and HRA revenue budgets as at 30 September 2018 and NOTED the estimated year end forecast;
ii. NOTED the status of budgeted savings in the year;
iii. AGREED that Members be provided with details of the cost of repairing the landslip at Kinloch Hourn when this was available; and
iv. NOTED that the Leader would share with the Committee the emails from COSLA regarding the national Pay Award negotiations.

6. Corporate Capital Monitoring Report to 30 September 2018 
Aithisg Sgrùdaidh Calpa Corporra gu 30 Sultain 2018

There had been circulated Report No RES/52/18 dated 9 November 2018 by the Depute Chief Executive and Director of Corporate Resources.

In response to a question, the Head of Corporate Finance and Commercialism confirmed he would provide Mr D Louden with a more detailed explanation outwith the meeting in relation to the variance shown for ‘Government Grant Income’, which he confirmed was linked to the variance shown for ‘Borrowing’.  In regard to whether the figures suggested the Council was building fewer houses, the Chair advised that the Council had an extensive house building programme and both he and the Head of Corporate Finance and Commercialism would be content to have a discussion on this matter outwith the meeting.

The Committee AGREED the financial position of the General Fund and HRA Capital Programmes as at 30 September 2018.

7. Corporate Resources Service and Welfare Budget Revenue Monitoring to 30 September 2018        
Sgrùdadh Teachd-a-steach Seirbheis nan Goireasan Corporra agus Buidseat nan Sochairean gu 30 Sultain 2018

There had been circulated Report No RES/53/18 dated 2 November 2018 by the Depute Chief Executive and Director of Corporate Resources.

In discussion, clarification was sought on the fact that staff vacancies were the key contributor to the overall underspend position within the Service and therefore whether it was necessary to retain those posts in the Council’s establishment if the workload was being managed by the current complement of staff.

The Depute Chief Executive and Director of Corporate Services explained that more efficient ways of working were being introduced, including a move towards more electronic methods, and this had enabled vacancies not to be filled. He indicated that consideration was being given to deleting posts and this was an ongoing process.

The Committee AGREED the financial position of the Corporate Resources Service and Welfare budget as at 30 September 2018.

8. Corporate Resources Service Capital Monitoring Report to 30 September 2018       
Aithisg Sgrùdaidh Calpa Seirbheis nan Goireasan Corporra gu 30 Sultain  2018

There had been circulated Report No RES/54/18 dated 30 October 2018 by the Depute Chief Executive and Director of Corporate Resources.

In response to a question, it was confirmed that Members would be provided with a detailed breakdown of the increase on the ICT Transformation budget of £7.779m. 

The Committee AGREED the financial position of the Corporate Resources Service capital budget as at 30 September 2018 and that a detailed breakdown of the increase of £7.779m on the ICT Transformation budget be provided. 
 
9. Chief Executive’s Office and Members’ Revenue Monitoring Report to 30 September 2018                                                                                        
Aithisg Sgrùdaidh Teachd-a-steach Oifis an Àrd-Oifigeir agus nam Ball gu 30 Sultain 2018

There had been circulated Report No RES/55/18 dated 12 November 2018 by the Chief Executive.

The Committee AGREED the financial position of the Chief Executive’s Office and Members’ budget as at 30 September 2018 and NOTED the status of budgeted savings in the year.

CORPORATE RESOURCES SERVICE
SEIRBHEIS NAN GOIREASAN CORPORRA

10. Treasury Management                                                              
Rianachd Ionmhais

(a) Summary of Transactions
Geàrr-chunntas Ghnothaichean

There had been circulated Report No RES/56/18 dated 23 October 2018 by the Depute Chief Executive and Director of Corporate Resources.

In discussion, it was requested that information be included in future reports on changes to interest rates over time to allow comparisons to be made with previous years.
 
The Committee:-

i. NOTED the Treasury Management Summary of Transactions as circulated; and
ii. AGREED that information be included in future reports on changes to interest rates over time to allow comparisons to be made with previous years.

(b) Mid-Year Treasury Management Report 2018/19
Aithisg Stiùiridh Meadhan-Bliadhna an Ionmhais 2018/19

There had been circulated Report No RES/57/18 dated 6 November 2018 by the Depute Chief Executive and Director of Corporate Resources.

In discussion, the Treasury Management team was commended on their excellent work on managing the risks associated with borrowing and changes in interest rates and the transparency and openness provided in the report.  In response to questions, the Head of Corporate Finance confirmed he would have a more detailed discussion outwith the meeting with Mr D Louden on the figures included at Appendix 3 of the report on the impact of interest rate rises on refinancing costs.

The Committee NOTED the Treasury Management Mid-Year Review 2018/19.

11. Corporate Resources Service Quarterly Performance Report 
Aithisg Choileanaidh Ràitheil Seirbheis nan Goireasan Corporra

There had been circulated Report No RES/58/18 dated 5 November 2018 by the Depute Chief Executive and Director of Corporate Resources.

In discussion, Members congratulated the Council team on their achievement in being awarded the Institute of Rating, Revenues and Valuation UK’s ‘Benefits and Welfare Reform Team of the Year 2018’ and the IRRV Scotland’s ‘Best in Scotland 2018’.  In addition, reference was made to the opportunity to further publicise this achievement in the public domain.

Thereafter, concern was expressed at the downward trend in relation to the collection rates for the Business Improvement District Levies, and Members were advised that in terms of enforcement powers, it was for the BID management team to take this issue up with the various businesses who were not contributing. The Council recovered full collection and administrations costs and was expected to deliver an efficient service and no adverse feedback had been received in terms of performance. The Service’s staff continued to focus on working with the BID management team to ensure payment rates were maximised.        

A point was then raised in regard to whether the opportunity to apply for discounts on invoices through payment within a period of 30 days were being taken up, and the potential in future reports to detail the level of discount realised over the reporting period.  The Depute Chief Executive and Director of Corporate Resources confirmed that he would check and report back to Members on this issue.

Following on from the above, clarification was sought on the processing of housing benefit and Council tax reduction claims, and the proportion of claims which subsequently had to be corrected due to Council, DWP or claimant error, concern being expressed at the impact of overpayments on low income households and difficulties experienced in recovering overpayments. The Depute Chief Executive and Director of Corporate Resources advised that he would arrange for a report to be submitted to the next Committee providing more detail in relation to the processing of claims and overpayments. He explained that a significant reduction in the number of payments had been achieved and this was linked to improvements in the speed of processing claims. This meant that the level of error had reduced significantly and claimants were receiving the correct award, thereby reducing the level of overpayments which were notoriously difficult to collect.

The Committee:-

i. NOTED the statutory and key performance indicators as outlined in the report;
ii. AGREED to check whether the opportunity to secure discounts on invoices through payment within a period of 30 days was being taken up;
iii. AGREED that a report be submitted to the next Committee providing more detail in relation to the processing of housing benefit and Council Tax reduction benefit claims and overpayments. 

12. Modern Apprenticeship Programme
Prògram Phreantasachdan Ùr-nodha

There had been circulated Report No RES/59/18 dated 30 October 2018 by the Depute Chief Executive and Director of Corporate Resources.

In discussion, Members welcomed the report and raised the following key issues:-

• the Senior Learning and Development Adviser and his team be commended on their excellent work in relation to the Programme;
• new apprentices would only be employed as and when vacancies became available within the Council and this explained the variances in the number of apprentices between the different localities in Highland.
• the importance of the Council supporting modern apprenticeships for young people living in the more rural areas and engaging with school leavers interested in a modern apprenticeship;
• the opportunity for the Council to be more ambitious in relation to the number and training and assessment of apprentices as the Programme was developed and to secure a higher level of levy and other funding for the Council;
• the need to address the lack of placements in Nairn;
• in relation to the Council’s ageing workforce the potential to train apprentices as backfill for posts so that the relevant expertise was available in house;
• it was difficult to predict when staff would retire and therefore it was important to ensure that a vacancy was available for an apprentice;
• the opportunity to better advertise positions and publicise the Programme as a good news story, including engagement with schools;
• the focus on care experienced young people was welcomed and clarification was sought on the numbers either on or seeking an apprenticeship;
• a point in regard to where the modern apprenticeships programme sat within the Council’s wider workforce planning and concern at the lack of apprenticeships within the Care and Learning Service given the known future requirements for types of staff such as social workers, early years practitioners and teachers;
• the Council’s investment in modern apprenticeships would deliver benefits to the local economy, irrespective if some moved into the private sector;
• the creation of older modern apprenticeships for staff was a positive development;
• in expanding the number of apprenticeships it was important to have the necessary support structures in place and therefore the need to expand the number of in house mentors and assessors;
• the potential for an analysis to be undertaken on how long modern apprentices stayed in post and the ability of the Council to compete with the private sector; and
• clarification in relation to whether all the budgeted positions within the Council for apprentices were in place or being actively pursued.     

The Chair and the Senior Learning and Development Adviser provided an assurance that discussions were ongoing with the Care and Learning Service in respect of the Programme.

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

13. Unified Communications Project
Pròiseact Chonaltraidhean Aonaichte

There had been circulated Report No RES/60/18 dated 12 November 2018 by the Depute Chief Executive and Director of Corporate Resources.

In response to questions, the Head of People and ICT confirmed that he would provide Mr D Louden with an explanation outwith the meeting in relation to the detailed figures associated with the reduction in telephony costs in 2017/18. He also confirmed that details would be provided to the next Committee on what the saving of £44,081 realised on telephony costs in 2017/18 represented in percentage terms on the original budget.

Thereafter, the ongoing exploration of future commercial opportunities with local businesses was welcomed.    
 
The Committee:-

i. NOTED the update on the Unified Communications Project; and
ii. AGREED that details be provided to the next Committee on what the saving of £44,081 realised on telephony costs in 2017/18 represented in percentage terms on the original budget.  

14. ICT Transformation and Network Refresh   
Cruth-atharrachadh ICT agus Ùrachadh Lìonraidh
 
There had been circulated Report No RES/61/18 dated 29 October 2018 by the Depute Chief Executive and Director of Corporate Resources.

The Chair advised that Members were aware of the significant issues which had been experienced over the past few months with direct access and connectivity. He reported on a recent confidential briefing held for Members at which a senior representative from Wipro had been in attendance.  He thanked the ICT Team for all their hard work and commitment to resolving these issues during this challenging period. In meetings he attended with the Chief Executive around the area, staff had commented on the length of time it was taking to log on to the network and he expressed concern at the impact this was having across the Council.

In discussion, Members raised the following key issues:-

• an update was sought in relation to the timescale for rolling out Office 365 to Members, confirmation being provided that officers had impressed to Wipro’s senior management this was a priority and it was anticipated timescales would be available soon;
• the need to consider at which point a line should be drawn in terms of re-setting the key milestones dates set out in the report in the event there was slippage on those dates going forward;
• an explanation was sought and provided on the progress set out in the report on site installations and the roll out of chrome books in relation to the spend to date and future projected spend; and
• a report on the ICT Transformation and Network Refresh should be submitted to the full Council  and a senior Wipro representative invited to attend on the basis this was an issue that impacted on all Members. 

In conclusion of this item, the Chair advised that a cross party Member Working Group would be established to monitor the contract and nominations would be sought for the membership of this Group.   

The Committee:-

i. NOTED the update on the ICT Transformation and Network Programmes;
ii. AGREED that a report on the ICT Transformation and Network Refresh be submitted to the full Council and a senior Wipro representative invited to attend; and
iii. NOTED that a cross party Member Working Group would be established to monitor the contract.

MINUTES OF MEETINGS
GEÀRR-CHUNNTAS CHOINNEAMHAN

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

There had been circulated Minutes of Meetings of the Commercial Board held on 13 September 2018 and 17 October 2018, the terms of which had been approved.
 
16. Minutes of Meetings                                                                   
Geàrr-chunntasan Choinneamhan

The Committee:-

i. NOTED the Appeals Committee held on 4 September 2018; 
ii. NOTED the Employment Release Sub-Committee held on 2 October 2018;
iii. APPROVED the Staff Partnership Forum held on 31 October 2018; and
iv. APPROVED the Central Safety Committee held on 2 November 2018.

The meeting was closed at 12.25pm.