Agenda and minutes

None

We have confirmed as correct the minutes of our meeting held on 10 October 2007.

We have received the Executive Director’s Report and appendices commenting on the Government’s White Paper “Strong and prosperous communities”, the new performance framework for local authorities and its impact on ELWA, the Constituent Councils and the Joint Waste Management Strategy.

The Executive Director explained that the White Paper proposes a number of fundamental changes to the way in which Councils operate and that there are a reduced number of National Outcome indicators on which all Councils must report (3 for waste).  He explained that performance targets would be decided locally by Councils in conjunction with the Government Office for London and other strategic partners, to reflect local priorities and areas for improvement and that ELWA, as a named partner, had a duty to be part of the process of agreeing the targets in the Local Area Agreements (LAAs) that relate to waste management.

We have noted that the three specific national waste indicators are NI 191 residual household waste per head, NI 192 household waste recycled and composted and NI 193 municipal waste landfilled. There are other national indicators that may form important elements of the LAA which ELWA may be required to support, for example, Streetscene issues.

We have agreed to ask Constituent Councils to base any waste management targets in the Constituent Councils’ LAAs on the targets in the Joint Waste Management Strategy agreed between the parties in 2006 in order to avoid a contract renegotiation at this stage.

We have received the Finance Director’s usual budgetary control report that compared actual expenditure with original revenue estimates (approved in February) for the six months’ period to end September 2007.

We have noted the healthy financial position and the under-spend of £773,000 against profiled budget for the first half year.  The Finance Director reported on the main variations as being a lower than expected payment to Shanks.east london compared to the Annual Budget & Service Delivery Plan of some £442,000.  This was due to (i) lower payments of disposal credits to the Boroughs for abandoned vehicles (now a producer responsibility) (£110,000), (ii) lower commercial waste income due to re-profiling of Borough collection rounds (£107,000), (iii) additional bank interest receipts of £150,000 as a result of stronger cash flows and increased interest rates and (iv) unbudgeted income in respect of a WEEE Grant for 2007/08 (£104,000).

Having considered a report from the Finance Director on ELWA’s Financial Projection and Budget Strategy 2008/09 to 2010/11, which contained particular detail in respect of the forthcoming 2008/09 financial year, we have agreed the strategy as submitted including the strategy for the use of reserves and balances in support of the levy.  We are in favour of returning Authority under spending to the Boroughs at the earliest convenience under the levy arrangements.

The Finance Director confirmed that the information in this strategy will be conveyed to Constituent Council Finance Directors to assist in their budget preparations for next year and beyond.  We have noted that the report indicated a provisional ELWA Levy for 2008/09 of £36.5m representing a 10.6% increase based on tonnages and costings.

Havering Members raised concerns about waste collection and potential traffic congestion during the construction and operation of the Olympics site.  The Managing Director advised that any collection costs fell to the Boroughs but ELWA needed to consider contingency disposal arrangements.

We have considered and discussed the report supplied by the Executive Director and Human Resources Manager and the proposed policies on Flexible Working, Retirement and Recruitment and Selection, as set out in the appendices.

The Managing Director advised that Members would be consulted prior to any final decisions on retirement that incurred any additional financial implications on the Authority.

We have approved the following programme of meetings for the forthcoming municipal year, all to be held at the Civic Centre, Dagenham, commencing at 1.00 pm.

Councillor Mrs Twomey offered her apologies for 04 February 2008 and Councillor Weinberg offered his apologies for the 29 September 2008.

The Assistant Executive Director presented his progress report on the latest operational and performance issues relating to the Integrated Waste Management Service (IWMS) Contract.  The report included tonnage data and contract payments, site operations, glass and green waste collection and recycling (as per Minute 1523) and diversion from landfill for the period April to October 2007.  Information from additional contract monitoring carried out by London Remade was also included in the report.

The Assistant Executive Director also reported on a series of communication and co-collection and performance trials being carried out in November and December.  Havering Members have enquired about the possible use of waste awareness wording on the outer wrappers of Orange Bag deliveries.

We have noted that the average recycling and composting performance figure (17.1%) was less than the projected 22.7% in the revised Service Delivery Plan and that the Contractor had incurred a corresponding loss of financial supplements.  Noted also that the Contractor is developing a number of possible options to increase recycling and composting performance in relation to glass and compost.

We have expressed concern that the Contractor has not met contract targets and may not be able to recoup earlier missed targets.

We have received a summary of the contract monitoring completed by external reviewers for the period July to October 2007.

We have asked Officers to show a running total for the previous year in the contract waste recycling performance table in future.

We have received and noted the Executive Director’s report and Appendix on the measures being taken to assist in future decision making on recycling and waste management in order to get the best from the current infrastructure.  The report outlined the background, approach adopted, framework recycling model, recycling trials, enhanced communications strategy and high level discussions on the future.

We have noted that further reports and recommendations will be submitted as work progresses.

We have resolved to exclude the public and press from the remainder of the meeting by reason of the nature of the business to be transacted that included the detailed financial proposals of Shanks.east london in respect of the IWMS Contract, which is exempt from publication by virtue of paragraph 3 of Part I of Schedule 12A to the Local Government Act 1972 as amended.)

In the light of his appointment by the Authority as a Director of ELWA Limited, Councillor Weinberg declared a non-pecuniary interest in the next item and was excused from the remainder of the meeting.

-  consideration of report by officers – prior to presentation

-  arrival of contractor representatives for their presentation in respect to their Service Delivery proposals for 2008/09

-  return to the consideration of recommendations in the officer report.

We have received the Executive Director’s report and have noted the main points concerning the 2008/09 ABSDP as being that a small increase on last year’s overall tonnages is expected; a 47% diversion from landfill exceeding contractual requirement of 40%, recycling across the constituent councils is planned to exceed 22% and an overall cost increase of £5.6m.  This increase related to increases in landfill tax, rise in inflation rate of 2.4% on contractual payments and, annual cost of the contractual price increase applied at 01July 2007.  We also note that the only other significant cost increases in future years that can be anticipated relate to increases in waste volumes and unavoidable increases in landfill taxes.

We have received and thanked ELWA Ltd’s representatives for delivering their presentation entitled ABSDP Year 7 to us and answering our many questions.  We have expressed our concern at recycling performance in the past and their ability to meet the recycling target in 2008/09.

We have discussed issues arising during that presentation and have asked officers to invite ELWA Ltd’s representatives to attend our next meeting on 4^th February 2008.

We have agreed that consideration and approval of the 2008/09 ABSDP should be deferred until the next Authority meeting on 4 February 2008.

(* This item was considered after a resolution had been passed to exclude the public and press from the remainder of the meeting as the information included the detailed financial proposals of Shanks.east london in respect of the IWMS Contract, which is exempt from publication by virtue of paragraph 3 of Part I of Schedule 12A to the Local Government Act 1972 as amended.)