Agenda and minutes

Councillor Keith Burrows and Councillor Amrit Mann.

The Clerk advised that Councillor Burrows had provided reasons for his non-attendance at the meeting and reported these to the Authority. In accordance with Standing Order 5, Members of the Authority agreed that the reasons provided were sufficient and therefore the six month rule did not apply.

Members are reminded that if they have a pecuniary interest in any matter being discussed at the meeting they must declare the interest.  They may not take part in any discussion or vote on a matter in which they have a pecuniary interest.

There were no declarations of interest.

RESOLVED: That the minutes of the meeting held on 22 September 2017 be taken as read and signed as a correct record.

Minute 75 – Statement of Accounts for the year ending 31 March 2017

Clarification was sought in terms of the audit fee and Members were advised that the Chair of the Audit Committee and Head of Finance had negotiated a reduction in the fee. Whilst the fee was still subject to the approval of Public Sector Audit Appointments (PSAA), no issues were anticipated. Jay Patel, Head of Finance, undertook to confirm the audit fee to Members once finalised.

Members received a report which provided an update on the financial position of the Authority at the end of October, the key operational performance indicators (KPIs) and delegated financial decisions.

Jay Patel, Head of Finance, outlined the content of the report and drew Members’ attention to the underspend on Waste Transport and Disposal budget of £1.286 million which was due to overall waste volume, primarily residual waste, being below budget. This was also reflected in reduced levy income.

A Member expressed concern that training target had not been achieved and was advised that there needed to be better understanding of the training required. There had been a number of changes this year and it was expected that the target would be achievable next year.

In terms of residual waste, Emma Beal, Managing Director, explained that this was being monitored in order to determine whether the reduction was due to such waste appearing in other waste streams.

RESOLVED: That (1) the current financial position in 2017/18 to period 7 and Key Performance Indicators be noted;

(2) it be noted that no financial decisions had been taken under the Scheme of Delegation to Officers.

Members received a report which set out the 2018/19 budget proposal for consultation with boroughs.

Jay Patel, Head of Finance, outlined the content of the report, and reported that the total costs and overall levies proposed for 2018/19 were slightly lower than the current year. He drew Members’ attention to the confidential section of the report.

In response to a question in relation to growth, savings and pricing inflation, Jay Patel advised that it was anticipated that most contracts would see an increase in pricing. The exception to this was residual waste where only a 2% increase was expected. Ken Lawson, Contracts Manager, added that some growth was due to the boroughs collecting more and in terms of savings, following a variation to the wood contract there had been savings of £250,000.

Members thanked officers for the informative report.

RESOLVED: That (1) the 2018/19 budget for consultation with boroughs be noted;

(2) the indicative Pay As You Throw (PAYT) rates, as set out in section 14 of the report, and resulting PAYT levy of £47.6m be noted;

(3) the Fixed Cost Levy (FCL) of £12.2m, as set out in section 15 of the report, be noted;

(4) the recommended trade waste prices, as set out in section 16 of the report, and the delegated authority to the Treasurer to change these in year, should the need arise, be noted;

(5) it be noted there were no new proposed capital budgets, section 17 of the report refers;

(6) the target level of reserves of £4.2 million to act as a buffer for managing risks and avoiding supplementary levies, as set out in section 18 of the report, be noted.

Members received a report which provided the medium and long term financial plan for the Authority.

Members welcomed the positive report.

RESOLVED: That (1) the medium and long term financial position be noted;

(2) the sensitivity analysis and impact of waste growth and inflation be noted.

Members received a report which provided an update on the Authority’s various waste treatment arrangements and procurements.

Ken Lawson, Contracts Manager, outlined the content of the report and drew Members’ attention to the confidential information which appeared elsewhere on the agenda.

RESOLVED: That (1) the report be noted;

(2) authority to award the Food, Organics and Haulage Contracts be delegated to the Managing Director and Chief Technical Officer, following consultation with the Chair.

Sarah Ellis, Operations Manager, introduced the report which provided an update on the Authority’s operations.

RESOLVED: That the report be noted.

Members received a report which provided the Authority’s officer response to a number of consultation requests.

Members indicated their support to the approach to littering taken by the Managing Director in responding to the consultation and commented that producers of such waste needed to take responsibility.

RESOLVED: That (1) the Authority’s response to the DEFRA consultation be noted;

(2) the Authority’s response to the Mayor of London’s consultation be noted.

RESOLVED:  That in accordance with Part I of Schedule 12A to the Local Government Act 1972, the press and public be excluded from the meeting for the following items for the reasons set out below:

RESOLVED: That the appendix be noted.

Members received a confidential report in relation to the purchase of Transfer Station sites.

Having agreed to amend recommendation 3 it was

RESOLVED: That (1) the independent surveyors advice regarding the price be noted;

(2) the spend to save opportunity be noted;

(3) the budget, in the sum set out in the report, and the use of £10m cash, borrowing the balance, be approved for the acquisition of both sites (inclusive of all taxes, fees and related costs);

(4) it be noted that funds would be borrowed from the Public Works Loans Board to finance the acquisition;

(5) the accounting/ financial planning implications and change in the budget setting approach be noted.

RESOLVED: That the report be noted.