Agendas, reports and minutes

Minutes of Meeting of the Finance, Housing and Resources Committee held in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Wednesday 22 January 2014 at 10.30 am.

Present: Mr D Fallows,Dr D Alston, Mrs C Caddick, Mrs H Carmichael, Mr A Christie, Mrs M Davidson,Mr N Donald,
Mr G Farlow, Mr J Ford, Mr L Fraser, Mr R Laird, Mr D Hendry, Mr C Macaulay, Mrs I McCallum, Mr D MacKay, Mrs D MacKay, Mr A Mackinnon, Mr H Morrison, Mr F Parr, Mr G Phillips, Mr J Stone, Mrs C Wilson, Mr H Wood
,Mr K Gowans (substitute)

Non Members also Present: Mrs I Campbell, Ms J Douglas, Mr J Gray, Mr B Lobban, Mrs L MacDonald, Mr G MacKenzie, Mr D Millar, Mrs M Paterson, Mr T Prag, Mr G Rimell, Mr R Saxon, Dr A Sinclair

Also in attendance:

Mr Ian Morrison, Chairman, Hi-Scot Credit Union (Items 1-3 only)
Mr David Mackay, General Manager, Hi-Scot Credit Union (Items 1-3 only)

Officials in attendance:

Ms M Morris, Depute Chief Executive
Ms T Urry, Interim Director of Housing and Property
Mr D Yule, Director of Finance
Mr G Westwater, Head of Property, Housing and Property Service
Mr A Maguire, Head of Property Partnerships, Housing and Property Service
Mr D Goldie, Head of Housing, Housing and Property Service
Mr S Fraser, Head of Legal and Democratic Services, Chief Executive’s Service
Ms V Nairn, Head of E Government, Chief Executive’s Service
Mr G Bull, Corporate Property Asset Manager, Housing and Property Service
Ms C Campbell, Maintenance and Service Support Manager, Housing and Property Service
Mr F MacDonald, Property Manager (Building Maintenance), Housing and Property Service
Mr G Hamilton, Head of Environment and Development, Planning and Development Service
Mr C Anderson, Property Manager (Operational Estate Management), Housing and Property Service
Mrs K Lackie, Business Manager, Chief Executive’s Service
Mr R Pope, Roads & Community Works Manager, Transport, Environmental & Community Services
Mr E Boyd, Principal Engineer, Housing and Property Service
Mr G Summers, Principal European Officer, Chief Executive’s Service
Ms A Clark, Policy Officer, Chief Executive’s Service
Mr S Carr, Policy Officer - Climate Change, Chief Executive’s Service
Mrs L Dunn, Principal Committee Administrator, Chief Executive’s Service
Ms A Macrae, Committee Administrator, Chief Executive’s Service
Mr A MacInnes, Administrative Assistant, Chief Executive’s Service

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

Mr D Fallows in the Chair

Business

1. Apologies for Absence
Leisgeulan

An apology for absence was intimated on behalf of Mr B Gormley.

2. Declarations of Interest
Foillseachaidhean Com-pàirt

Item 3 – Mr C Macaulay, Mr H Wood (non-financial)
Item 8 – Mr G Farlow (non-financial)
Item 9 - Mr A Christie (non-financial), Mr G Farlow (financial)
Item 10 – Mr A Christie (non-financial)
Item 12 – Mr A Christie (non-financial)
Item 13 - Mrs C Caddick (non-financial)
Item 22 – Mr G Farlow (non-financial), Mr A Christie (financial)
Item 25 – Mr G Farlow (non-financial)
Item 26 – Ms J Douglas (non-financial)

Mr G Farlow declared a financial interest in those items relating to council housing as a Council house tenant but, in terms of the dispensation granted by the Standards Commission, remained to participate in the discussion.

FINANCE SERVICE ITEMS

3. Hi-Scot Credit Union Presentation
Taisbeanadh le Aonadh Creideis Hi-Scot

Declaration of Interest - Mr C Macaulay and Mr H Wood declared a non-financial interest in this item as Members of the Hi-Scot Credit Union, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that their interest did not preclude them from taking part in the discussion.

Mr Ian Morrison, Chair and Mr David Mackay, General Manager of Hi-Scot Credit Union were in attendance and gave a presentation on what credit unions were and who could be a member of the Hi-Scot Credit Union and the application process to become a member. Hi-Scot had an active membership of 2300 with some £4.0m of loans approved and £6.4m in deposits. Members could save as little as they liked up to the total value of £10,000 and savings could be withdrawn at any time. Each year a dividend was paid to members. Information on how to access loans was provided. Hi-Scot offered competitive savings and affordable loans for members and everything that was done was in the interests of its members.

The Highland Council currently used its Service Point Network to distribute leaflets on the credit union, also assisted with payroll deduction and used capital to underwrite certain loans. Ways in which the Council could do more to promote Hi-Scot were identified as promoting wide-scale use of payroll deduction, promoting Hi-Scot internally and externally as an inclusive organisation.

There was widespread support for the Hi-Scot Credit Union amongst Members, many of whom indicated that they would be joining it. However the view was expressed that as Hi-Scot was a small organisation with limited resources the Council could do more to actively promote awareness to staff and communities on the benefits of joining the credit union and to set targets for increasing membership. Ensuring that leaflets were available in Service Points, Libraries, Leisure Centres and promotion through the Council’s website and payslips could be done at relatively low cost. Using the Council’s staff in the Money Advice and Housing teams to promote the message to those most in need of financial help was also suggested, as it was felt this type of communication was more effective than presentations or leaflets. Discussions at Ward level and District Partnerships to move things forward at a local level and the use of social media was also suggested. The Depute Chief Executive highlighted that a number of these approaches had already been carried out but that they would endeavour to undertake them again in a further effort to increase membership.

Members were advised that work on promoting the Credit Union has happened, but there was a need to work harder in getting the message across. The Council did assist with payroll deduction and had in the past used payslips to advertise the Credit Union and another round of such advertising could take place. Information could be displayed on the Council’s website as well as on screen savers which staff see on a regular basis along with more information being available in Service Points.

The Chair on behalf of the Committee thanked Mr Morrison and Mr Mackay of Hi-Scot Credit Union for their informative presentation.

Thereafter, the Committee:-

i. NOTED the presentation on the work and development of Hi-Scot Credit Union; and

ii. AGREED to work in partnership with Hi-Scot Credit Union to actively promote awareness to staff and communities on the benefits of joining Hi-Scot credit union and to set targets for increasing membership and to monitor progress in this respect.

4. Finance Service Revenue Monitoring
Sgrùdadh Teachd-a-steach Seirbheis an Ionmhais

There was circulated Report No. FHR/01/14 by the Director of Finance which provided information on the revenue monitoring position for the Finance Service for the period 1 April to 30 November 2013.

It was reported that the Finance Service had incurred net expenditure of £10.782m against an annual budget of £11.757m. At this point in the year an overspend of £0.393m was projected.

The Committee:-

i. APPROVED the Finance Service Revenue Monitoring Report for the period to 30 November 2013; and

ii. NOTED the action being taken to address the current forecast overspend.

5. Corporate Revenue Monitoring
Sgrùdadh Teachd-a-steach Corporra

There was circulated Report No. FHR/02/14 by the Director of Finance which presented the revenue budget expenditure position for the period to 30 November 2013 and the projected year end position.

It was reported that the General Fund had a total annual budget allocated to Services of £562.186m; year to date actual of £300.574m and an estimated year end position of £561.282m, giving an estimated year end underspend of £0.904m.

In relation to the balance held centrally for unallocated corporate pressures of £3.313m it was anticipated that £1m of this money would not be required and would roll forward to the next financial year. At the request of Members, further details of budget pressures currently unallocated would be included in the next monitoring report.

In respect of the Transport, Environmental and Community (TEC) Services budget, the monitoring report showed a balanced budget but costs incurred as a result of recent storms before Christmas were estimated to be in the region of £0.450m with further costs to be incurred. The outturn for the year would depend on whether any budget feed from balances was required as a result of these costs and also other winter maintenance costs. An update would be provided to the next meeting.

It was advised that a report would be submitted to Council on 13 March 2014 which would review all the budget reserves held by the Council along with potential proposals for utilising some of these funds. In terms of the Strategic Change and Development Fund, it was reported that the criteria for this, along with a £5m fund, had been approved by Council on 27 June 2013. So far £1m had been allocated to Roads maintenance and £0.5m to the Corporate Improvement Programme with no further bids having been received to date from Services but any remaining money in the fund would be carried forward.

In terms of the budget pressure on Adult care, NHS Highland was in discussion with the Scottish Government regarding implementing an accountancy arrangement to help resolve this issue. However, before any proposal came to the Council for additional funding, a breakdown was required of the pressures, along with details of the funding needed address these, and also further information on the steps being taken by NHS Highland to identify savings to manage the pressures. Any financial implications would be reported to Council on 13 March 2013.

The Committee:-

i. APPROVED the Revenue Expenditure Monitoring Statement as at 30 November 2013 which showed a predicted net underspend of £0.904m; and

ii. NOTED that more detail of budget pressures currently unallocated and an update on expenditure on winter maintenance for the TEC Service’s budget would be included in the next monitoring report.

6. Corporate Capital Monitoring Report
Aithisg Sgrùdaidh a’ Chalpa Chorporra

There was circulated Report No. FHR/03/14 by the Director of Finance which provided an overview of expenditure on the General Fund and HRA capital programmes for the period 1 April to 30 November 2013 and the projected year end position for 2013/14.

It was reported that the General Fund statement showed a total net programme budget of £87.254m. The expenditure to date on the programme was £51.725m and the year end estimated outturn was £91.624m. The estimated year end position was an overspend of £4.370m.

The Committee APPROVED the financial position of the General Fund and HRA capital programmes as at 30 November 2013.

7. Treasury Management: Summary of Transactions
Rianachd Ionmhais: Geàrr-chunntas de Ghnothaichean

There was circulated Report No. FHR/04/14 by the Director of Finance which provided details on the Treasury Management transactions for November and December 2013, reflecting activity undertaken to manage the Council’s cash flows, and borrowing to fund capital expenditure.

The Committee NOTED the Treasury Management Summary of Transactions report.

8. Highland European Fisheries Fund Programme (EFF) – Axis 4 Programme 2007-13
Prògram Maoin Iasgaich Eòrpach na Gàidhealtachd – Prògram Aiseal 4 2007-13

Declaration of Interest - Mr G Farlow declared a non-financial interest in this item as Chair of the Highlands Local Action Group, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that his interest did not preclude him from taking part in the discussion.

There was circulated Report No. FHR/05/13 by the Director of Planning and Development which sought Council support for the proposed use of Council balances to overcome the issues associated with advances and retention applied to the Highland EFF Axis 4 Programme.

The EFF Programme was part of the European Fisheries Fund and provided funding to enable fisheries communities to plan for and develop their own area. The report detailed two fundamental issues which would have a direct impact on the ability of local groups to implement projects i.e. Scottish Government rules concerning advance payments and a 20% retention clause. These issues had been raised with the Scottish Government but the Government was adamant that EFF funds could not be released to meet these requests and that it was up to the local EFF Programmes to resolve the matter by using additional non EU funds. The Highland EFF Programme did not have access to a separate budget to meet or overcome these issues and therefore there was a need to establish a fund that could be used on a revolving basis as required. As such the Highland EFF Programme requested the temporary release of £300,000 from Highland Council balances to pay advances and overcome the issues associated with a 20% retention clause. All funds would be returned to the Council at the completion and wind up of the EFF Programme by 31 October 2015.

Following consideration, the Committee:-

i. APPROVED the request for use of Council balances to provide advance payment and retentions of grants for EFF Axis 4 at a maximum level of £300,000; and

ii. NOTED that the transfer out of balances on a temporary basis would be returned at the winding up of the Highland EFF programme by 31 October 2015.

HOUSING AND PROPERTY SERVICE ITEMS

9. HRA Revenue Estimates 2014/15
Measrachaidhean Teachd-a-steach HRA

Declaration of Interest - Mr A Christie declared a non-financial interest in this item as General Manager and Company Secretary of Inverness, Badenoch & Strathspey Citizens Advice Bureau, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that the interest did not preclude him from taking part in the discussion.

Mr G Farlow declared a financial interest in this item as a Council house tenant but, in terms of the dispensation granted by the Standards Commission, remained to participate in the discussion.

There was circulated Report No. FHR/06/14 by the Interim Director of Housing and Property which presented draft Housing Revenue Account estimates for 2014/15, provided assumptions on which these were based, together with recommendations on the level of increase to be applied to council house rents, other rents and service charges.

During a summary of the report, it was confirmed that, based on the assumptions set out in the report of a 2% rise in rents, the overall average weekly house rent would increase from £68.99 to £70.37 per week (an average increase of £1.38). It was also recommended that there be a 2% increase to hostel rents; Gypsy/Traveller site pitches, garage and garage site rents. It was proposed that sheltered housing warden charges should not be increased.

Some concern was expressed that in such financially difficult times for tenants, rents were being increased again. The view was expressed that the proposed increase should be halted or at the least reduced to a 1% increase. Given the complexity of the rent structure, the increase would have a different impact on different people and it was requested that a briefing note be provided for Members on the impact on tenants from the increase in rents and progress with equalisation of rents. Further, it was noted that less people were receiving housing benefit than was previously the case and it was requested that an analysis of housing benefit take up from tenants over the last four years be provided for Members.

Responding to a question, the Chairman explained that following consultation, tenants had indicated that they were unhappy with rent increases specifically to fund new council house building and consequently he highlighted that a new funding model for council house building had been agreed at the last Committee which meant the proposed rent increase of 2% did not include any element for this activity. He further advised that initial responses from tenants indicated 58% support for the proposed increases compared to 16% who were dis-satisfied.

In terms of the Council’s Business Plan for Housing it was advised that this would need to be updated to take account of new initiatives from the Scottish Housing Quality Standards and this would be developed over the next 12 months. It was requested that a briefing note be issued to Members on progress with the Business Plan.

In response to the proposal for a reduction in the proposed rent increase, it was advised that a 2% increase took account of the pressures on the Housing Revenue Account. It was explained that a 1% increase would not be sufficient to meet the pressures on the account which included a 1% increase in the staff budget; increasing loan charges; and an increasing repairs and maintenance budget. Consequently a 2% increase was being proposed to address these pressures and maintain a balanced budget but annual efficiency savings would continue to be identified whilst ensuring that there was no impact on quality of service.

In response to concerns regarding high costs faced by tenants for furnished accommodation, it was advised that it had previously been agreed to submit a report to the next meeting of the Committee examining the issues of affordable housing.

Thereafter, an Amendment to the recommendations was put forward by Mr D MacKay, seconded by Mr L Fraser, for a 1% rise in rents to be funded by reducing the voids budget by bringing properties back into use quicker. However, it was advised that for the Amendment to be competent, savings in the order of approximately £470,000 would need to be identified, for the Housing Revenue Account budget to be balanced.

In terms of whether it would be viable to have a reduction in the voids budget of £470,000, it was advised that the Service did face pressures with its void properties and every effort was made to ensure as quick a turnaround of empty properties as possible. However, when properties became vacant, certain works were required to be undertaken to ensure that they met statutory and health and safety requirements as well as any remedial works that might be necessary. An assurance was given that where performance could be improved this would be done. However, in order to provide a proper and safe service for future tenants in turning properties around, this could not be done on a significantly reduced voids budget. Thereafter, Mr D MacKay withdrew his Amendment.

Subsequently, Mr L Fraser proposed an amendment, seconded by Mr D MacKay for a 1% increase only in rents, with the resulting reduction in income to the HRA being funded by reductions to the Supervision & Management, Voids and Tenant Participation budgets. However, it was advised that this proposal was also not competent as the figures in the proposal had just been announced and Members were being asked to make a decision on it without being fully informed of the implications in terms of sustainability of service and ensuring that regulatory requirements would be met. Members were advised that if there was an alternative proposal it should have been put forward at an earlier stage in order for the financial and service implications to be considered. The Amendment was therefore withdrawn.

Thereafter, the Committee AGREED:-

i. a 2% increase for council house rents for 2014/15;

ii. that this percentage increase (2%) be applied to; hostel rents; Gypsy/Traveller site pitches; garage and garage site rents;

iii. that there be no increase in sheltered housing warden charges in 2014/15;

iv. that other service charges, including those for caretaking and CCTV be increased by 2% in 2014/15; and

v. that the estimated HRA surplus of £4.325m in 2014/15 be applied as Capital from Current Revenue to fund HRA capital investment in 2014/15.

The Committee also NOTED that rents for leased property should increase as stipulated in existing contracts and that a briefing note would be issued to Members on the undernoted issues:-

a) progress with the Council’s Business Plan for Housing;

b) the impact on tenants from the increase in rents and progress with equalisation of rents; and

c) an analysis of housing benefit take up from tenants over the last four years.

10. Housing and Property Service Revenue Monitoring
Sgrùdadh Teachd-a-steach Seirbheis an Taigheadais is na Seilbhe
Declaration of Interest

Declaration of Interest - Mr A Christie declared a non-financial interest in this item as General Manager and Company Secretary of Inverness, Badenoch & Strathspey Citizens Advice Bureau, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that the interest did not preclude him from taking part in the discussion.

There was circulated Report No. FHR/07/14 by the Interim Director of Housing and Property which set out the current position to 30 November 2013 with regard to the Housing Revenue Account, Other Housing and Property Revenue Account, Property Revenue Maintenance Account and Building Maintenance Account.

In terms of the Housing Revenue Account, so far an underspend was projected on management costs, largely due to short term staff vacancies. An overspend was projected on repairs and maintenance. This was being kept under review and action would be considered to bring spend back into line with budget. Void rent loss was shown as a debit in the income section of the monitoring report. Rent loss on empty houses remained higher than budgeted. Reducing void rent loss was a key priority for service managers.

In relation to the Other Housing and Property Revenue, an underspend was projected on homelessness accommodation costs, with a corresponding reduction in projected income.

It was reported that 82% of the Property Revenue Maintenance Programme had been spent or legally committed.

The Committee APPROVED the monitoring statements to 30 November 2013 for the Housing Revenue Account, Other Housing and Property Revenue Account and Building Maintenance account and progress with the Property Revenue Maintenance programme.

11. Housing and Property Service Capital Budget 2012/13
Buidseat Calpa Seirbheis an Taigheadais is na Seilbhe 2012/13

There was circulated Report No FHR/08/14 by the Interim Director of Housing and Property which gave an update on the position regarding expenditure to 30 November 2013 for the HRA Capital, Non HRA Housing Capital and Property Capital Programmes.

The HRA Capital Programme showed a total budget of £41m, comprising £17.558m for the mainstream programme and £23.442m for Council house building. It showed the overall level of spend to 30 November 2013 at £25.595m of which £11.984m related to the mainstream programme, £12.908m related to new build and £0.703m related to new build through the temporary accommodation reprovisioning project.

The report provided comment on the programmes relating to the Non HRA Capital Programme and Private Sector Housing Grant Programme, including budgets and summarised expenditure to date.

In discussion, reference was made to school closures due to problems with Biomass Heating systems and concern was expressed in respect of the educational days being lost and the impact of this on children. It was further highlighted that when such problems occurred, back-up electricity systems had to be used which also resulted in increased costs. Therefore, it was suggested that a review of Biomass systems should be undertaken to understand how many schools had problems with their heating systems, how many of these problems required the closure of schools and how long it took for schools to regain full heat once problems had been rectified, what the costs were, including the costs of any back-up systems used and Head Teachers’ time dealing with these issues.

In response it was advised that since the Council set up the new contract with the Highland wide contractor for Biomass there had been a steady improvement. Almost 50% of boilers had no call outs in the last six months. The issue seemed to relate to a few installations where there were a significant number of call outs and it was understood that three schools had been responsible for 50% of call outs in the last six months but repairs to these school heating systems had now been carried out. An analysis of the problems would be provided for Members.

Reference was made to the estimated revenue cost savings from the Dingwall Office Accommodation Rationalisation project of £129,000. It was understood that this did not take into account issues such as rewiring of the offices, the removal costs of the staff and Health and Safety Executive requirements. Members were advised that a full update report, addressing all concerns, would be submitted to the next meeting of the Committee.

The Committee APPROVED:-

i. the current position to 30 November 2013 for the HRA Capital, Non HRA Housing Capital and Property Capital accounts;

ii. increased costs required to develop phase 2 of the new starter business units outlined in section 3.6 of the report, noting that these would be self-financing from the rental stream; and

iii. that an analysis of Biomass heating problems which had resulted in school closures, including the timescale for schools to be reopened once problems had been rectified, and costs associated with back-up systems being operated, be provided for Members.

The Committee also NOTED that a report on the Dingwall Office Accommodation Rationalisation Project would be submitted to the next meeting.

12. Homelessness Initiatives Project Update
Pròiseact Ath-sholarachadh Àiteachan-còmhnaidh Sealach

Declaration of Interest - Mr A Christie declared a non-financial interest in this item as General Manager and Company Secretary of Inverness, Badenoch & Strathspey Citizens Advice Bureau, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that the interest did not preclude him from taking part in the discussion.

There was circulated Report No. FHR/09/14 by the Interim Director of Housing and Property advising that in April 2013, the Finance, Housing and Resources Committee had agreed a new approach to the Council’s provision of temporary accommodation for homeless households. This new approach would see the Council take its current expenditure on private sector rooms used to provide temporary accommodation and invest this in building and procuring Council owned self-contained one-bedroom flats in small developments across the Highlands.

The report updated Members on the progress to date with implementing this approach and the related work being undertaken to review housing management and support arrangements.

Members commended officers for the work on this initiative which was finding positive outcomes for people. It was requested that there should be a review of how the Council supported people in homelessness and how it supported them when they were in temporary accommodation or rented accommodation. It was also requested that there should be a full review on what the Council was doing in terms of housing support, including details on how much was being paid, how it was targeted and whether it was good value for money. In this respect, it was confirmed that a further report would be presented on housing management and housing support services, (which would include supporting people in homelessness), in relation to the additional Housing Revenue Account property used as temporary accommodation

The Committee:-

i. NOTED progress to date with regard to the Temporary Accommodation Re-provisioning Project and that further progress reports would be provided;

ii. AGREED that a further report be presented on housing management and housing support services in relation to the additional Housing Revenue Account property used as temporary accommodation; and

iii. NOTED that a separate report on the costs of temporary accommodation would be presented to Committee on 26 February 2014.

13. Housing Development and Initiatives
Leasachadh agus Iomairtean Taigheadais

Declaration of Interest - Mrs C Caddick declared a non-financial interest in this item as Armed Forces Veteran Champion, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that the interest did not preclude her from taking part in the discussion.

There was circulated Report No. FHR/10/14 by the Interim Director of Housing and Property which advised of an increase in funding from the Scottish Government for delivery of affordable housing and outlined proposals within the Council house build programme, seeking consent to an increased programme. In addition the report sought consent to sell five houses at Balloan Road, Inverness to Houses for Heroes Scotland and for the purchase of land required to undertake the additional projects identified within the increased programme. The proposals contained within the report would in part contribute to meeting the Council’s increased commitment to deliver an additional 688 Council houses by 2017.

In particular, Members welcomed the project relating to Houses for Heroes which would provide homes for veterans within Inverness.

The Committee AGREED:-

i. the increased programme as detailed within Appendix 1 of the report;

ii. that, on terms and conditions to be agreed by the Interim Director of Housing and Property, that the land and property described in section 2.2.1 of the report be purchased for affordable housing; and

iii. that five properties be developed at Balloan Road, Inverness be sold, subject to gaining the consent of Scottish Ministers, to Houses for Heroes on terms and conditions to be agreed by the Interim Director of Housing and Property.

CHIEF EXECUTIVE’S SERVICE

14. Chief Executive’s Service and Members Revenue Expenditure Monitoring
Seirbheis an Àrd-oifigeir agus Buill: Sgrùdadh Caiteachas Teachd-a-steach

There was circulated Report No. FHR/11/14 by the Chief Executive which provided information on the revenue monitoring position for the Chief Executive’s Service for the period to 30 November 2013.

It was reported that there had been a net increase in the Service budget of £0.054m since the previous reporting period, due to cross service ICT transactions and also resource transfers both in and out of the budget in support of the Integrating Care in the Highlands project relating to human resources, occupational health and programme management.

It was further reported that the budget showed a projected net year end underspend of £0.040m, which represented a decrease of £0.019m on the position reported to the Committee in November 2013. Pressures continued to be anticipated in the combined Customer Services budget and also in regard to Licensing income. However, these would be offset by savings arising from staff vacancy management and reduced spend in other budgets. The Service would continue to work to manage pressures across all of its budget headings to achieve a balanced budget position at the year end.

The Committee AGREED the revenue monitoring report for the period 1 April to 30 November 2013.

15. Chief Executive’s Service: Capital Budget Monitoring 2013/14
Seirbheis an Àrd-oifigeir: Sgrùdadh Buidseat Calpa 2013/14

There was circulated Report No. FHR/12/14 by the Chief Executive which set out the position on the Chief Executive’s Service 2013/14 capital budget for the period to 30 November 2013.

It was reported that the budget showed a projected combined underspend of £2.551m at the end of the financial year which represented a small increase of £0.029m on the position reported to the Committee in November 2013. The report provided further information on the predicted underspends on the Kingussie office rationalisation project, ICT Contract Asset Investment, and the Unified Communications Project.

The Committee AGREED the Chief Executive’s Service Capital budget monitoring report for the period to 30 November 2013.

At this point the meeting was adjourned for a lunch break and reconvened at 1.45 pm.

16. Community Empowerment (Scotland) Bill
Co-chomhairle mu Bhile Ùghdarrachadh Choimhearsnachdan

There was circulated Report No. FHR/13/14 by the Depute Chief Executive which summarised a Scottish Government consultation on the Community Empowerment (Scotland) Bill and asked Members to consider the Council’s draft response which had been set out at Appendix 1 to the report.

It was reported that in 2012 the Scottish Government had conducted a consultation on potential ideas for a Community Empowerment and Renewal Bill. The Council had responded to this earlier consultation following discussion with Members at the Community Safety, Public Engagement and Equalities Committee. This consultation was an opportunity to now comment on the draft bill. It was confirmed that the timescale for responses was 24 January 2014.

During discussion Members welcomed the draft response and commented as follows:-

• that the response should include a reference to the Council’s corporate parenting responsibilities in the context of inclusion and strengthening communities;
• the duty for the Council to provide allotments should be extended to its community planning partners, for example Scottish Natural Heritage and NHS Highland, both of which had significant land interests and in view of the links between allotments and health benefits;
• in regard to the section of the response relating to ‘Community Right to Request Rights in Relation to Property’ it was suggested that this section be extended to include all public bodies in addition to Forestry Commission and Crown Estates as referred to in the consultation response. The Policy Officer advised that the draft Bill listed a range of public bodies to be covered by the legislation and that she would consult with Mrs M Davidson to ensure that any further omissions were captured in the response;
• that the consultation on the draft Bill represented an appropriate time to request the Scottish Government to review the National Forest Land Scheme;
• given the complexities of the areas covered by the Bill and the potential for there to be unintended consequences that the Scottish Government consider simplifying the process for bringing forward any amendments to the legislation in the future;
• observing that DTAS had a good track record in supporting communities;
• in regard to the proposals to improve and extend the Community Right to Buy a comment be included on the need to simplify the process by which communities registered an interest. In particular communities should be able to register an interest as part of the local plan review process. It was noted this would require a change in the relevant legislation to allow local authorities to work with communities;
• in regard to section 5.2 on ‘Subsidiarity and Local Decision Making’ an additional comment be included in the response reaffirming the commitment within the Council’s Programme to a fairer system of local taxation than the current Council Tax, and that it would work with both Scottish and UK Governments on this matter;
• that officials consider whether there was a need to strengthen that part of the consultation response in regard to the recovery of expenses for dangerous and defective buildings to protect the Council’s interests;
• an additional comment be included in the response around the need to strengthen community planning at a local level;
• the definition of an allotment/community growing site should be widened to include biomass materials.

Thereafter, the Committee APPROVED the draft response to the consultation as set out in Appendix 1 of the report for submission to the Government subject to the inclusion of the additional points raised by Members during discussion and detailed above.

17. Consultation on the European Structural Investment Programmes 2014-2020
Co-chomhairle mu Phrògraman Mhaoin Structarail agus Tasgaidh 2014-20

There was circulated Report No. FHR/14/14 by the Depute Chief Executive which outlined the main points to emerge from the Scottish Government’s consultation on proposals for the delivery of the European Structural & Investment Funds (ESIF) in Scotland during 2014-20. The consultation closed on 24 January 2014 and a draft Council response was set out at Appendix 1 to the report for Members to consider. Officers would continue to engage with the Scottish Government to build on recent developments and ensure that the interests of the Highland and Highlands & Islands were taken into account in the development and delivery of the 2014-20 European Structural and Investment Funds (ESIF).

Members observed, as a general point, that a key issue and the focus of future reports should be the extent to which the level of European funding received in the past would be sustained in future. In addition there was a need to ensure that local control was retained in regard to how that funding was spent in the Highlands. It was suggested that the Council required to be vigilant on both these issues going forward, and particularly as the Integrated Territorial Investment was developed. Furthermore it was important that local authorities within the Highlands and Islands continued to have a unified voice in this regard, for example through the Highlands and Islands Convention of Local Authorities.

In response the Principal European Officer explained the same level of funding had been retained under the European Regional Development Fund (ERDF) and the European Social Fund (ESF) for 2014-2020 as for the previous period 2006-2013. However he advised that the ERDF would no longer be ring fenced for the Highlands and Islands, and therefore it was important that projects were identified and match funding secured to access and maximise ERDF funding.

Thereafter, the Committee:-

i. AGREED the draft consultation response appended to the report as the final response for submission; and

ii. NOTED that officers would continue to engage with the Scottish Government on the development and delivery of the 2014-20 ESIF programmes in Scotland and that the final draft of the Integrated Territorial Investment case would be reported to a future Committee meeting.

18. Capital Discretionary Fund Applications
Tagraidhean do Mhaoin Calpa fo Ùghdarras

There was circulated Report No. FHR/15/14 by the Director of Finance which advised the Committee of the financial implications arising from the four applications for funding from the Capital Discretionary Fund.

It was reported that the Capital Discretionary Fund formed part of the Council’s Capital Plan, and as such was fully funded through the borrowing commitment in the Loans Fund Revenue Budget. At present there was an uncommitted balance of £1.504m held on the Capital Discretionary Fund, with any unspent element being carried forward into future financial years. Whilst there were no specific criteria, the Fund had typically been used to match fund community projects, and/or support projects that delivered community benefits or financial savings.

The Committee NOTED the financial implications for each of the four applications for funding from the Capital Discretionary Fund.

i. Improved Car Parking at Foyers
Parcadh Chàraichean nas Fheàrr aig Foithir

There was circulated Joint Report No. FHR/16/14 by the Director of Transport, Environmental and Community Services and Corporate Manager which invited Members to agree that £65,000 should be taken from the Capital Discretionary Fund to develop improved car parking provision at Foyers.

The Committee AGREED that £65,000 be taken from the Capital Discretionary Fund for the construction of improved car parking provision at Foyers.

ii. Plock of Kyle Access Road Project
Buidseat Calpa fo Ùghdarras airson Ploc a’ Chaoil

There was circulated Report No. FHR/17/14 by the Corporate
Manager which asked the Committee to consider a contribution of up to
£49,404 from the Capital Discretionary Fund towards a £324,316 project of environmental and access improvements to the Plock of Kyle.

It was reported that the project was led by the Hamilton Park Trustees (owners of the Plock of Kyle) and the Kyle & Lochalsh Community Trust. The Big Lottery Community Spaces Programme was providing nearly £250,000 to the Project and the Highland Council Planning & Development Service, £15,000.

It was further reported that the project would enhance the use of the Plock as a tourist feature, contribute to The Council’s Carbon Clever Initiative by providing new cycling opportunities and avoid traffic through the residential areas of Kyle by providing direct access to the Plock from the A87.

The Committee APPROVED a total capped contribution of £49,404 from the Capital Discretionary Budget to the Hamilton Park Trustees.

iii. War Memorials
Carraighean-cuimhne Cogaidh

There was circulated Report No. FHR/18/13 by the Director of Transport, Environmental and Community Services which invited Members to provide up to £50,000 per year over four years from 2014/15 to 2017/18 from the Capital Discretionary Fund to support the refurbishment of War Memorials, in recognition of the centenary of the First World War. This funding would allow the Council to make bids for additional funding from
the Scottish Government’s Centenary Memorial Restoration Fund.

It was reported that in a previous report presented to the Transport, Environmental and Community Services Committee on 19 September 2013, the Committee had agreed that a four year programme of repairs to its War Memorials be completed prior to the 100th anniversary of the end of World War One, with further work to identify sources of external and internal funding.

It was reported that the Scottish Government’s £1million Centenary Memorial Restoration Fund had been established to help fund work on War Memorials throughout Scotland. This was being administered by the War Memorials Trust with funding being released quarterly up to March 2018.

In discussion concern was expressed that applications to the Centenary Memorial Restoration Fund from across Scotland might exceed the available funding, which could result in a potential shortfall in the funding being sought for War Memorials within the Council’s area. In addition concern was expressed at the burden being placed on community groups applying to the Fund in terms of the application process and funding criteria. Therefore, it was proposed that the Council should show respect to its communities by fully funding the refurbishment of its war memorials over the next four years.

In response to the above a number of Members advised that the applications to the Scottish Government’s Fund was intended to be for the larger projects where a significant amount of refurbishment work was required. It was suggested these applications should be allowed to go forward to the Fund and that the Council also continue to work with community groups to agree the level of refurbishment required and support applications for funding. In the event any of the bids to the Fund were not successful then consideration should be given to any funding gap being met from the Capital Discretionary Fund to allow the Council’s programme of repairs to be completed.

In response to a question the Roads and Community Works Manager confirmed that the total cost of repair and refurbishment of the 175 War Memorials for which the Council had responsibility, was estimated at £310,000.

In response to a further question the Chairman advised it would be for the Transport, Environmental and Community Services Committee to monitor progress with the Council’s programme of repairs and to identify if additional funding was required to complete the programme of works. Thereafter, any additional funding request from the Capital Discretionary Fund would be brought back to the Committee.

Following further discussion Mrs I McCallum, seconded by Mrs C Wilson, MOVED that the Council fully funded the refurbishment of its war memorials over the next four years.

As an AMENDMENT, Dr D Alston, seconded by the Chairman moved the recommendations within the report and that the Council agree in principle to fund any shortfall by a further application to the Capital Discretionary Fund.

On a vote being taken, the MOTION received 10 votes and the AMENDMENT received 12 votes with no abstentions and the AMENDMENT was therefore CARRIED, the votes having been cast as follows:-

For the Motion:
Caddick, C; Carmichael, H; Davidson, M; Donald, N; Fraser, L; Mackay, D (W2); Mackinnon, A; McCallum, I; Morrison, H; Wilson, C.

For the Amendment:
Alston, D; Fallows, D; Farlow G; Ford, J; Gowans, K; Laird, R; Macaulay, C; Mackay, D (W5); Parr, F; Phillips, G; Stone, J; Wood, H.

Decision

The Committee AGREED:-

i. to provide up to £50,000 per year over the four years from 2014/15 to 2017/18 from the Capital Discretionary Fund to support the refurbishment of War Memorials, in recognition of the centenary of the First World War. This funding would allow the Council to make bids for additional funding from the Scottish Government’s Centenary Memorial Restoration Fund; and

ii. in principle, that the Council fund any shortfall by a further application to the Capital Discretionary Fund.

19. Carbon Clever Capital Project
Pròiseact Calpa Càrbon Ciallach

There was circulated Report No. FHR/19/14 by the Director of Transport, Environmental and Community Services which sought approval of £250,000 of the £1,000,000 allowance in the capital programme for carbon clever projects in order to complete a strategic east west cycle corridor which would connect from the new University of the Highlands and Islands (UHI) campus to the heart of Inverness City Centre.

The Committee APPROVED a contribution of £250,000 for the Millburn Road Cycle project from the Carbon Clever Fund to allow the completion of a significant east west cycle link through the heart of Inverness.

20. Minutes of Meetings
Geàrr-chunntasan Choinneamhan

The following Minutes of Meetings had been circulated and APPROVED:-

i. Joint Consultation Group (Administrative Etc. Manual and Crafts Staffing) held on 12 December 2013, subject to the inclusion of Mr R Laird in the list of apologies;

ii. Central Safety Committee held on held on 12 December 2013; and

iii. Early Retirement Sub-Committee held on 18 December 2013.

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 they involved the likely disclosure of exempt information as defined in Paragraphs 6 & 9 of Part 1 of Schedule 7A of the Act.

22. Capital Discretionary Fund Application: Inverness Badenoch & Strathspey Citizens Advice Bureau – Purchase of new Premises in Inverness
Tagraidhean do Mhaoin Calpa fo Ùghdarra: Biùro Comhairleachaidh a’ Phobaill airson Inbhir Nis, Bàideanach & Srath Spè – Ceannach Togalach ùr ann an Inbhir Nis

Declaration of Interest - Mr A Christie declared a financial interest in this item as General Manager and Company Secretary of Inverness, Badenoch & Strathspey Citizens Advice Bureau, and left the Chamber for the determination of this item.

Mr G Farlow declared a non-financial interest as Director of North West Sutherland Citizen’s Advice Bureau, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that the interest did not preclude him from taking part in the discussion.

There was circulated to Members only Report No. FHR/20/13 by the Director of Finance and Corporate Manager which informed Members of proposals by Inverness Badenoch and Strathspey Citizens Advice Bureau to purchase new premises in Inverness and sought support from the Council’s Capital Discretionary Fund.

In discussion a number of issues were raised in relation to the business case and options appraisal carried out in respect of the proposals. A point was also raised in regard to the need to ensure that the conditions attached to any grant award were strengthened to ensure the Council’s interests were fully protected, for example, in the event of the property being sold on.

Thereafter, the Chairman, seconded by Dr D Alston, MOVED the recommendations within the report subject to the conditions listed at paragraph 4 being further developed to ensure that the Council’s interests were fully protected.

As an AMENDMENT, Mr H Wood, seconded by Mrs H Carmichael moved that the report be deferred pending a more detailed business case and further information on the financial implications for the Council.

On a vote being taken, the MOTION received 12 votes and the AMENDMENT received 10 votes with no abstentions and the MOTION was therefore CARRIED, the votes having been cast as follows:-

For the Motion:
Alston, D; Fallows, D; Farlow G; Ford, J; Gowans, K; Hendry, D; Laird, R; Macaulay, C; Mackay, D (W5); Parr, F; Phillips, G; Stone, J.

For the Amendment:
Caddick, C; Carmichael, H; Davidson, M; Fraser, L; Mackay, D (W2); Mackinnon, A; McCallum, I; Morrison, H; Wilson, C; Wood, H.

Decision

The Committee AGREED to support Inverness, Badenoch & Strathspey CAB with a grant subject to the conditions listed at paragraph 4 of the report and that these be further developed to ensure that the Council’s interests were fully protected.

23. Debts Recommended to be Written-off
Fiachan a Thathar a’ Moladh airson an Dubhadh Às

There was circulated to Members only Report No. FHR/21/14 by the Director of Finance which in accordance with good accounting practice, recommended the write-off of uncollectable debts.

The Committee AGREED that the total value of debts as detailed in the report be written-off.

24. Purchase of Land at Torvean, Inverness
Sgìre Thòrr Bheathain: Ceannach Fearainn

There was circulated to Members only Report No. FHR/22/14 by the Interim Director of Housing and Property which outlined an agreement for a proposal to purchase land at Torvean, Inverness.

The Committee APPROVED the purchase of the areas of land at Torvean as set out in the report, subject to the conditions outlined in section 6 of the report.

25. Land and Property
Talamh agus Taigheadas

Declaration of Interest - Mr G Farlow declared a non-financial interest in this item as Director, Chair: Ullapool Community Trust, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that the interest did not preclude him from taking part in the discussion.

There was circulated to Members only Report No. FHR/23/14 by the Interim Director of Housing and Property which sought approval to purchase a former hotel building in Ullapool and for approval to proceed with a further 48 homes within the National Housing Trust Initiative. The report also sought approval to the use of prudential borrowing and Landbank funding to part fund the projects.

The Committee AGREED the recommendations set out in the report.

26. Property Transactions Monitoring Report
Aithisg Sgrùdaidh Ghnothachasan Seilbhe

Declaration of Interest - Ms J Douglas declared a non-financial interest in this item as Ex-officio: YMCA Grantown-on-Spey, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that the interest did not preclude her from taking part in the discussion.

There was circulated to Members only Report No. FHR/24/14 by the Interim Director of Housing and Property which provided Members with details of the General Fund and Property Account transactions approved by the Head of Property Partnerships and Corporate Property Asset Manager under delegated authority. The report also advised Members on sales targeted for completion within the financial year 2013/14 and future years.

In response to a question it was confirmed that a full explanation would be provided to the Chairman and Dr A Sinclair on the current position in regard to Graham House, Dornie.

The Committee:-

i. APPROVED the monitoring statements for General Fund and Property Account transactions approved by the Head of Property Partnerships and Corporate Property Asset Manager under delegated authority, Budgeted Sales for 2013/14 and Future Years Sales; and

ii. AGREED that a full explanation be provided to the Chairman and Dr A Sinclair on the current position in regard to Graham House, Dornie.

The meeting ended at 3.35 pm.