Agenda and minutes

An apology for absence was submitted on behalf of Councillor Mrs P A Twomey, Councillor A Weinberg and Councillor P Murphy.

We have confirmed as correct the minutes of our meeting held on 25^th June 2007.

We have received the Executive Director’s Report and Annual Governance Report and External Auditor’s Audit Plan for 2007/08.

We have noted the pleasing comments made in the Annual Governance Report and the unqualified opinion.  We noted the two areas identified for action.

We have received the District Auditor’s Audit Plan covering his proposed work on Financial Statements, Use of Resources, the Best Value Performance Plan and Assessing Risk.  We noted that the Authority will need to consider risks arising from the direct employment of staff.

The Auditors have identified that the cumulative knowledge gained to date should result in reduced audit time and their subsequent fee.

Noted that new Auditors may be appointed following an Audit Commission consultation process. The Chairman thanked the District Auditors, Jon Haynes and Sharon Martin for attending the meeting and for their professionalism throughout the Audit process.  The District Auditors were excused from the meeting.

Received and noted the Executive Director’s Report.  We have received commentary on the Bill’s impact on planning and development control, waste collection and disposal authorities, the establishment and composition of a London Waste and Recycling Board (LWRB) and its aims.

We have expressed concern at the power the LWRB Board may have to impose methodology on waste collection authorities and that money previously paid direct to the Boroughs will now cease and be redirected to the LWRB fund, for which bids had to be made.  The LWRB Board would have £20m per annum to distribute.

Noted the key implications for the Authority as being a review of the Joint Waste Management Strategy to conform with the Mayor’s Waste Strategy; the Authority’s long term waste contract will not be subject to GLA scrutiny for contract provisions conformity unless any major changes are made or new contracts are secured; the specific notice period to be given to the Mayor of any notices relating to new waste contracts; and the general duties of the GLA relating to climate change.

Noted the importance of completion of the East London Waste Development Plan Document in respect of the Mayors new powers and the Boroughs retaining some control over planning applications for waste facilities within the ELWA area.

We have received and noted the Executive Director’s report and commentary on the way in which the Act gives more powers to Local Authorities to deal with the manner in which householders put out their waste.  Noted the provisions relating to Civic Amenity sites which meant that a review of the protocol at ELWA’s Reuse & Recycling Centres would be required in due course.

We have received and noted the Assistant Executive Director’s report and commentary on the current position regarding monitoring of the inherited closed landfill sites.  The possibility of future forestry and coppicing in order to extract value from the land was raised.  We have asked the Board to review strategy for these sites for the future.

In response to a question from Havering, Members were informed that because of planning conditions and licensing restrictions, the compost at the Aveley 1 site had to be used on the site.

Received and noted the Executive Director’s current operational and financial report and Appendix relating to the joint venture for the extraction of landfill gas and its conversion to energy.  We have agreed to review the financial position on an annual basis. 

It has been drawn to our attention that in the Annual Report & Financial Statements, the total figure as at 31 December 2006 of £196,510, in Paragraph 15 Related party disclosures, should be in brackets.

Pursuant to Minute 1453, we have received the Assistant Executive Director's report, appendices and commentary on the trial of the Waste Protocol for wastes delivered in vans to RRC sites.  The aim was to better distinguish between household and commercial waste accepted at the sites.

We have accepted recommendations but have asked Officers to include in the related leaflet, entitled “Household Waste Rules”, TVs and computers as household waste items and also include a “duty of care” paragraph regarding licensing of carriers of trade waste.

In accordance with Minute 1505, we have received the Assistant Executive Director’s report and noted the satisfactory up-to-date position at the RRC sites since the introduction of the WEEE Regulations in July.

We have received the Executive Director’s Report on the second benchmarking review of ELWA Ltd operational insurances, the summary of operational insurance premiums for 2007 and variations to insurances relating to asbestos and machinery breakdown;

In addition, we have:

• approved the Authority’s contribution to the cost of premiums under the terms of the contract for 2007/08;

• earmarked £¼million in the Reserves for the possibility of uninsured losses arising from machinery breakdown; and

• noted that another review will take place in December to assess the 2008 insurance premiums.

The Assistant Executive Director presented his regular 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, recycling and diversion from landfill, for the period April to August 2007.  The report also included information arising from the additional contract monitoring carried out by London Remade.

We have noted that the recycling performance was less than anticipated in the Annual Budget & Service Delivery Plan.  Contributory factors included reduced green waste, the current problem of finding markets for the glass fraction and the delay in composting ‘fine’ fraction produced by the Bio-Mrf refining section.

We have asked Officers to prepare reports on glass and green waste collection and recycling for consideration at our next meeting.

Following a request from a Havering Member about whether ELWA would encourage/assist with front-end glass recycling, we have agreed to receive a further report on this.

Havering expressed concern at the poor recycling figures achieved over the last two years and requested that a stronger line be taken with the Contractor.  The Executive Director confirmed that the ELWA Management Board and the Boroughs’ Directors of Environment were pursuing this line of action.

Clarification of the LATS position was provided by Officers.

We have noted the healthy financial position and under-spend of £600,000 against profiled budget.  The Finance Director reported the main variations as being a lower than expected payment to Shanks.east london compared to the Annual Budget & Service Delivery Plan of some £357,000.  This was mainly due to less tonnages requiring disposal, the generation of additional bank interest as a result of stronger cash flows and receipt of unbudgeted income in respect of the WEEE Grant for the year 2007/08.

Noted that a further report on the projected outturn and trends will be presented at our next meeting as part of the Three Year Financial Plan.

We have offered our thanks for the work undertaken in respect of the Finance Report.

Noted the Finance Director’s report that the External Auditor had given an unqualified opinion and certificate without any significant issues being raised.  Copies of the signed Accounts were available at the meeting.

Received the Finance Director’s report on the Authority’s internal audit systems and procedures and his opinion that the overall systems are sound.  We have noted that:-

• the return on short-term investments of 5.06% and return on long-term investments of 5.91% outperformed benchmarks by 0.26% and 0.7% respectively;

• no new external borrowing took place, borrowing limits were not exceeded and repayment of £129,000 to the Public Works Load Board was made during the year;

• cash balances had been actively managed and outperformed the benchmark by 0.35%.

We have commended and thanked the Finance Director for this Treasury Management Report.

We have received the Office Manager’s report on attendance at the Chartered Institute of Wastes Management (CIWM) Conference and Exhibition and authorised Officers to proceed to make provisional bookings.  Members will confirm attendance and note that the programme of events will be circulated in due course.