Agendas, reports and minutes

Minutes of Meeting of the Corporate Resources Committee held in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Thursday 23 May 2019 at 10.30 am.

Present:
Mr G Adam
Mr R Bremner (VC)
Mrs C Caddick
Mrs G Campbell-Sinclair
Mrs H Carmichael
Dr I Cockburn
Mrs M Davidson
Mr L Fraser
Mr R Gale
Mr A Jarvie
Mr R Laird 
Mr B Lobban
Mr D Louden
Mr R MacDonald (TC)
Mr A MacInnes
Mr G Mackenzie
Mr A Mackinnon
Mr D Macpherson (substitute)
Mr M Reiss
Mr P Saggers
Mr B Thompson (TC)

Non Members also Present:
 Mr B Boyd
Mr T Heggie 

Officials in attendance:
Mrs D Manson, Chief Executive
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 Fraser, Head of Corporate Governance, Chief Executive’s Office
Mr S Walsh, Head of People and ICT, Corporate Resources Service
Mr P Whitham, MA Programme Manager, Corporate Resources Service
Mr D Mackenzie, Trading Standards Manager, Chief Executive’s Office
Mrs S McKandie, Benefits and Welfare Manager, Corporate Resources Service
Mr J Shepherd, ICT Operations Manager, Corporate Resources Service
Ms E Barrie, HR Manager, Corporate Resources Service
Ms G Falconer, Occupational Health, Safety and Wellbeing Manager, 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

Business

1. Apologies for Absence
Leisgeulan

Apologies for absence were intimated on behalf of Mr J Bruce, Mrs D Mackay, Mr S Mackie and Mrs M Paterson.

2. Declarations of Interest
Foillseachaidhean Com-pàirt

Item 11 – Mr D Louden (Financial)

3. Good News Stories
Deagh Naidheachdan

The Committee NOTED:-

i. Derek Yule, Depute Chief Executive/Director of Corporate Services had received an award from CIPFA Scotland as Public Sector Finance Professional of the Year.  The Chair also expressed his appreciation to Mr Yule for his contribution to the Council with this being his last Committee meeting prior to retirement. The Leader of the Council and other Members joined the Chair in paying tribute to his outstanding work with reference being made to the professional advice and support he had given to the Council and particularly to Members through extremely challenging times.  Members wished Mr Yule a long and happy retirement and conveyed he would be greatly missed.   Mr Yule reciprocated in similar terms. 
ii. Ross Campbell, Rebecca Winton and Bryony McDiarmid had completed their Modern Apprenticeship in Business and Administration and certificates were presented at the meeting;
iii. HR Officers Marie MacKenzie and Lorna MacKenzie had successfully completed a Postgraduate Certificate in Human Resource through the University of the Highlands and Islands; and
iv. the efforts of staff in supporting exchange students from Augsburg with their work placements within the Council.

CARE AND LEARNING SERVICE
SEIRBHEIS A’ CHÙRAIM AGUS AN IONNSACHAIDH

4. Gaelic and Culture Update
Aithisg Ùrachaidh Gàidhlig agus Cultair

There had been circulated Report No RES/12/19 dated 14 May 2019 by the Interim Director of Care and Learning.

During discussion, the following points were raised:-

• The report demonstrated how active the Council had been in taking forward a wide range of Gaelic projects.  The Council had submitted bids for funding amounting to £167,000 to Bord na Gaidhlig which reflected the wide range of Gaelic developments.  These initiatives represented family, children, under school age, adult learners, sports leadership and support for Gaelic learners in primary schools and CPD training for Head Teachers.  The Highland Council was the lead authority for Gaelic development and the Council looked forward to hosting the Celtic Media Festival to be held in Aviemore in June 2019 and the Royal National Mod to be held in Inverness in October 2020.  The Council’s Gaelic team was working hard on an impressive range of initiatives which would help deliver progress on the Gaelic language;
• It was requested that a summary of the project evaluations undertaken for funders be submitted to a future meeting to provide assurance that their projects aims were being delivered;
• There was a desire to see more Gaelic incorporated into strategic meetings of the Council; and
• It was requested that a copy of the GME Head Teacher CPD Training Plan be provided to Councillor R Bremner and that further information be reported to the next meeting on the numbers undertaking the GME Head Teacher CPD training and how well connectivity was working in respect of the Gaelic Learner Education and 1+2 languages particularly in relation to the number of pupils continuing with Gaelic learning as they progressed through the Council’s education system. 

Thereafter, the Committee:-

i. NOTED the developments to date which the Highland Council Gaelic Team were leading on and participating in;
ii. AGREED that a report be submitted to a future meeting with an evaluation of Gaelic projects that are being delivered and the funding that the Council was contributing to these projects;
iii. AGREED that a copy of the GME Head Teacher CPD Training Plan be provided to Councillor R Bremner and that further information be reported to the next meeting on:-
a. the numbers undertaking the GME Head Teacher CPD Training; and
b. how well connectivity was working in respect of the Gaelic Learner Education and 1+2 Languages particularly in relation to the number of pupils continuing with Gaelic learning as they progressed through the Council’s education system.

FINANCIAL MONITORING
SGRÙDADH IONMHASAIL

5. Corporate Revenue Near Final Monitoring Report for 2018/19
Aithisg Sgrùdaidh Iar-Dheireannach Teachd-a-steach Corporra airson 2018/19
 
There had been circulated Report No RES/13/19 dated 15 May 2019 by the Depute Chief Executive and Director of Corporate Resources.

During discussion, the following points were raised:-

• There had been a substantial improvement in the near final year end position with an overspend of £2.280m, an improvement from that forecasted at the end of quarter 3 when an overspend of £5.550m had been projected.  This had been possible as a result of good financial governance, controlling expenditure and vacancy monitoring although assurance was provided that posts were still being filled on the basis of need being demonstrated.  While there were still financial challenges ahead, with improved proactive financial management there was confidence that the Council was in a good position to meet its budget targets going forward;
• By way of clarification, only £680,000 of the total deficit would be met from reserves with the remaining amount funded from non-earmarked budgets;
• While the reduction in the overspend was welcomed, the Council was still faced with a large year end deficit and while through financial management, this could be dealt with this year, there was a need to address the continuing overspend in some Services, otherwise the Council’s reserves would be severely diminished;
• The recruitment freeze introduced to help manage the projected budget overspend had been described as a success, but until recently it had not included a freeze in recruiting from agencies which was key to reducing recruitment costs.  It was explained that there would still be a need for agency staff within the Council but this would be strictly monitored by a Governance Board;
• There was a need to ensure sound financial management and understanding of the budget during the financial year to address overspends.  It was requested that a report be submitted to a future meeting on the spending constraints incurred during the 2018/19 financial year and the impact of this on service delivery;
• The last financial year had seen the Council face tremendous pressures in terms of a reduction in Central Government funding, rising prices, wage increases and service delivery pressures, particularly in the Care and Learning Service with pressures on Additional Support Need and Out of Authority placements.  However, there were now more controls in place to address the financial challenges and the Redesign of the Council would have significant benefits in terms of efficiency and savings.  The efforts of staff in meeting the financial challenges and reducing the deficit was commended;
• Responsibility for expenditure needed to be assigned to named budget-holders who were accountable for ensuring that these were not overspent;
• It was the responsibility of Members for ensuring that Unallocated Savings targets were met by setting achievable budgets and this had not happened;
• More focus should be on how the Council’s total revenue budget of circa £560m each year was spent in order to address financial challenges and to build up reserves.  External Auditors had commented favourably on the sound financial management of the Council.  However, the Council did need to consider how to address specific areas of overspending and the additional governance that had been put in place would help control this; and
• Concern was expressed regarding the Discretionary Housing Payments (DHP) underspends given the large demand for this additional support and it was queried whether this benefit was being sufficiently promoted.  It was confirmed that all applications for DHP were assessed and awarded appropriately.  The Council was doing all it could to positively promote this benefit and worked closely with its public sector partners in this regard.

Thereafter, the Committee:-

i.  AGREED the near final financial position of the General Fund and HRA revenue budgets for 2018/19;
ii. NOTED the ensuing impact on reserves; and
iii. AGREED that a report be submitted to a future meeting on the spending constraints incurred during the 2018/19 financial year and the impact of this on service delivery.

6. Corporate Capital Monitoring Final Monitoring Report for 2018/19
Aithisg Sgrùdaidh Dheireannach Calpa Corporra airson 2018/19

There had been circulated Report No RES/14/19 dated 16 May 2019 by the Depute Chief Executive and Director of Corporate Resources.

During discussion, the following points were raised:-

• Despite the financial challenges facing the Council, there had been £96.201m spent on capital expenditure in the Highland Council area during the year;
• It was disappointing to note the high amount of underspend in capital expenditure but it was acknowledged that this was mostly down to equipment not being purchased due to ICT project delays;
• There was a 66% increase on budgeted CFCR expenditure and while this meant better quality housing for tenants, it was felt this was not the appropriate funding method for many of the expenses in this budget.  It was explained that CFCR was revenue from rents used to invest in capital projects.  This was an alternative to borrowing to invest which helped reduce the Council’s considerable debt portfolio.  The capital programme for HRA was being reviewed and this should provide a clearer approach for the use of CFCR for the financing of capital investment; and
• Information was sought on the reasons why Government grant income on the Housing Revenue Account had not been fully drawn down.

Thereafter, the Committee AGREED:-

i. the near final 2018/19 financial position of the General Fund and HRA Capital Programmes; and
ii. that information be provided to Councillor D Louden on the reasons why Government grant income on the Housing Revenue Account had not been fully drawn down.

7. Corporate Resources Service and Welfare Budget – Near Final Revenue Monitoring for 2018/19
Buidseat Seirbheis nan Goireasan Corporra agus nan Sochairean – Sgrùdadh Ionmhasail Iar-Dheireannach airson 2018/19

There had been circulated Report No RES/15/19 dated 13 May 2019 by the Depute Chief Executive and Director of Corporate Resources.

Following consideration, the Committee AGREED the financial position of the Corporate Resources Service Revenue Monitoring and Welfare budget to 31 March 2019.

8. Corporate Resources Service Capital Near Final Monitoring Report for 2018/19 Aithisg Sgrùdaidh Iar-Dheireannach Calpa Seirbheis nan Goireasan Corporra airson 2018/19

There had been circulated Report No RES/16/19 dated 13 May 2019 by the Depute Chief Executive and Director of Corporate Resources.

During discussion, the following points were raised:-

• Although welcomed, it was queried why Solar PV expenditure was so low given the level of income that could be generated.  It was explained that this was the first phase of expenditure on a project that was worth circa £2.5m.  This would be self-financing capital expenditure and spend would increase during 2019/20 as sites were identified for Solar installations;
• It was understood that so far only twelve sites had been identified for installation of Solar PV, but the Council had a significant portfolio of land and properties where Solar could be used and therefore there was a need to accelerate this programme.  Further, there was a savings target of £0.500m against this project and it was difficult to understand how this target could be achieved from only twelve sites.  Confirmation was provided that the feasibility of accelerated rollout of Solar on land/properties would be raised with the Renewables Project Board; and
• There had been a £3.5m grant given by Salix Energy Efficiency Fund to The Highland Council to progress energy saving projects.  This money would be invested over the next three years.  Twelve schools would be equipped with Solar PV panels and this was just the start of the Solar PV rollout.  It was explained that the Commercial and Efficiency team was proactively looking at opportunities for the use of Solar PV and Hydro energy generation.

Thereafter, the Committee AGREED the financial position of the Corporate Resources Service capital budget as at 31 March 2019.

9. Chief Executive’s Office and Members’ Near Final Revenue Monitoring Report 2018/19
Aithisg Sgrùdaidh Iar-Dheireannach Teachd-a-steach Oifis an Àrd-Oifigeir agus nam Ball airson 2018/19

There had been circulated Report No RES/17/19 dated 14 May 2019 by the Chief Executive.

Following consideration, the Committee:-

i. AGREED the financial out-turn position of the Chief Executive’s Office and Members’ budget for the period 1 April 2018 to 31 March 2019; and
ii. NOTED the Chief Executive’s Office achieved £0.582m savings in 2018/19.

CHIEF EXECUTIVE’S OFFICE
OIFIS AN ÀRD-OIFIGEIR

10. Chief Executive’s Office Service Plan
Plana Seirbheis Oifis an Àrd-Oifigeir

There had been circulated Report No RES/18/19 dated 15 May 2019 by the Chief Executive.

In discussion the introduction of the Key Performance Indicators, as set out in the Service Plan, was welcomed however it was distressing to see that only 30% of Stage 1 complaints had been dealt with on time and disappointment was expressed with this poor level of performance.  In addition, confirmation was sought and provided in regard to stabilising and reversing population decline in respect of how this would be actioned and measured.

The Committee:-

i. APPROVED the revised Service Plan for 2017-22; and
ii. NOTED that eight area based plans, linked into the priorities contained in the Council Programme, setting out the actions that would be taken to stabilise and reverse population decline would be submitted to a future meeting.

11. Trading Standards – Review of Activity and Proposed Plan for 2019/20
Inbhean Malairt – Ath-sgrùdadh air Gnìomhan agus Plana a Thathar a’ Moladh airson 2019/20

Declaration of Interest – Mr D Louden declared a financial interest in this item as the Company Secretary of Duthac Taxis Limited and left the meeting for the determination of this item.

There had been circulated Report No RES/19/19 dated 13 May 2019 by the Chief Executive.  A short presentation was made in support of the report during which the Trading Standards Manager explained the role and purpose of Trading Standards and how it responded to the needs of the people of the Highlands; outlined the wide-ranging work that it covered; explained the essential collaborative working that was undertaken with partner agencies; and gave an update on the innovative approaches that were being adopted to ensure effective law enforcement and better outcomes for consumers and businesses of the Highlands.

During discussion, the following points were raised:-

• Appreciation was expressed for the informative presentation which demonstrated the strong and proactive work being undertaken by the Trading Standards team.  It was further highlighted that the Trading Standards team was an example of a department which had redesigned its service delivery approach in line with financial constraints and was providing an efficient and effective service that was achieving excellent outcomes for the people of the Highlands.  The Committee commended the team for their work and a number of Members expressed appreciation for their support in addressing a variety of specific issues in their wards;
• Further information was sought and provided in regard to the national Performance Indicator for Trading Standards: ENV5a – Cost of Trading Standards per 1,000 population and how this had been significantly reduced to one of the lowest in Scotland; and
• Confirmation was sought and provided that private car parking charges were lawful but it was suggested that this activity should be regulated.  Concern was expressed that the associated car parking fines were disproportionate and the support and engagement of Trading Standards in addressing this issue had been appreciated.  In addition, a specific update in regard to private car parking within Inverness was requested.

Thereafter, the Committee:-

i.  NOTED the Review of activities of the Council’s Trading Standards team in 2018-19;
ii. AGREED the draft Operational Plan for the team for 2019-20; and
iii. NOTED that an update would be provided to Councillor R Laird on private car parking within Inverness.

CORPORATE RESOURCES SERVICE
SEIRBHEIS NAN GOIREASAN CORPORRA

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

There had been circulated Report No RES/20/19 dated 26 April 2019 by the Depute Chief Executive and Director of Corporate Resources.

In discussion, the Treasury Management team was commended on their excellent work and further information was sought on the future impact of long and short term borrowing particularly in regard to the risks associated with potential changes in interest rates.  And confirmation was provided that only UK based borrowing was undertaken.

Thereafter, the Committee NOTED the Treasury Management Summary of Transactions outlined in the report.

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

There had been circulated Report No RES/21/19 dated 7 May 2019 by the Depute Chief Executive and Director of Corporate Resources.

Thereafter, the Committee NOTED the statutory and key performance indicators as outlined in the report.

14. Corporate Resources Service Plan
Plana Seirbheis nan Goireasan Corporra

There had been circulated Report No RES/22/19 dated 13 May 2019 by the Depute Chief Executive and Director of Corporate Resources.

During discussion concern was expressed that the report indicated that there would be no significant environmental impacts.  However, it was highlighted that a number of improvements were being made that should be reflected in the Strategic Environmental Assessment such as the role out of the new ICT equipment with  Skype functionality reducing the need for travel and implementation of solar energy projects.

Thereafter, the Committee NOTED the draft Service Plan for 2017-22 (updated 2019), AGREED the amendments required and APPROVED the Plan.

15.ICT Transformation and Network Refresh
Cruth-atharrachadh ICT agus Ùrachadh Lìonraidh

There had been circulated Report No RES/23/19 dated 1 May 2019 by the Depute Chief Executive and Director of Corporate Resources.

During discussion, the following points were raised:-

• Concern was expressed at the length of time that projects were now behind schedule and it was queried whether these delays to project completion times would impact on costs and result in any inadvertent overspends; and
• Confirmation was sought and provided in regard to the revised timescale for completing the SWAN Bandwidth upgrade works at Nairn Academy.

Thereafter, the Committee NOTED the update on the ICT Transformation and Network Programmes.

MINUTES OF MEETINGS
GEÀRR-CHUNNTAS CHOINNEAMHAN

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

There had been circulated Minutes of Meetings of the Commercial Board held on 13 March 2019, 10 April 2019 and 15 May 2019 the terms of which were APPROVED.

17. Minutes of Meetings
Geàrr-chunntasan Choinneamhan

The Committee:-

i.   NOTED the Appeals Committee held on 28 February, 6 March and 5 April 2019;
ii.  APPROVED the Staff Partnership Forum held on 3 May 2019; and
iii. APPROVED the Central Safety Committee held on 3 May 2019.

The meeting ended at 12.15 pm.