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Appendix C REQUEST FOR MAYORAL DECISION – MD427 Title: Development of the Mayor’s Municipal Waste Management Strategy Executive Summary: Approval is sought to fund independent research for the evidence base informing the development of the Mayor’s Waste Management Strategy (the “Strategy”). Independent research is necessary to evidence the economic, environmental and social considerations associated with the Mayor’s proposed strategic approach for managing London’s waste to 2031. The Mayor will launch his draft Strategy for consultation with the London Assembly and Functional Bodies and wider stakeholders in autumn 2009. Feedback from consultation along with the evidence base research will be used to develop a more detailed Strategy for public consultation in early 2010. The final Strategy will be adopted in autumn 2010. Decision: Approve that the amount of £100,000 be allocated from the central budget to the Development and Environment Directorate for the purposes of undertaking research to inform the Strategy evidence base in line with the Strategic Plan. Approve the procurement of three consultancy services for the purposes of undertaking research as more fully described in paragraphs 1.4 (a), (b) and (c). Mayor of London The above request has my approval. Signature Date 1 PART I - NON-CONFIDENTIAL FACTS AND ADVICE TO THE MAYOR 1. Introduction and background 1.1 The Mayor under the Greater London Authority Act 1999 (the “1999 Act”) is required to produce and revise a Municipal Waste Management Strategy (the Strategy). This Strategy published in September 2003 set out policies to manage London’s waste through to 2020, although the proposals (actions to implement the policies) were generally for the period through to 2006 and are therefore now out of date. There have been significant policy developments since 2003 including the government releasing the national waste strategy in 2007 with new waste and recycling targets. It is timely for the Strategy to be replaced rather than simply updated. 1.2 Consequently work is necessary to update the evidence base informing a new Strategy, particularly the economic and environmental rationale for the Mayor’s proposed approach for managing London’s waste. Independent research is required to inform the Strategy’s proposed waste targets, projected cost and benefits from proposed polices, and the environmental benefits largely achieved through the reduction of greenhouse gas emissions from landfill diversion and higher recycling performance. 1.3 A draft Strategy will be published in autumn 2009 for consultation with the London Assembly and the GLA Functional Bodies. Feedback from consultation along with the evidence base research will used to develop a more detailed Strategy for public consultation in early 2010. The final Strategy will be adopted in autumn 2010. A separate MD along with the draft strategy for consultation with the London Assembly will be submitted at the end of summer 2009. 1.4 The necessary evidence base work will be acquired through commissioning independent research estimated to be no more than £100,000 falling under three main areas: a) Economic analyses (£40,000) The economic cost of achieving the proposed waste diversion and recycling targets set out in the draft Strategy. This will be achieved by modeling a number of waste management scenarios based on a range of waste minimisation and reuse activities, along with modeling various waste collection, sorting, treatment, energy recovery and final disposal methods. b) Capture, participation and recognition rates on recycling performance (£50,000) Data on current and potential waste material capture, participation rates, and performance from London’s waste and recycling collection services. This will provide recycling performance across London by collection type and housing stock to inform areas for improved recycling rates, particularly in flats and estates where recycling performance is typically low. c) Greenhouse gas emission modelling (£10,000) Developing a tool to model the greenhouse gas performance of waste management activities including waste minimisation and reuse, and the collection, sorting, treatment, energy recovery and final disposal of waste. The tool will be used to establish a minimum CO2 performance for waste management activities using a lifecycle approach, particularly for the management of ‘residual waste’ – waste not suitable for recycling or composting. 2 1.5 2 Project specifications for the work are attached to this MD as appendices 1, 2, and 3. Issues for consideration 2.1 Links to strategies and Strategic Plan The work will be used to inform the development of the Mayor’s Waste Management Strategy revisions to the London Plan. In addition to revising the London Plan the Mayor is revising and developing his other strategies including the Climate Change Adaptation Strategy, Transport Strategy, Water Strategy, Climate Change Mitigation and Energy Strategy and Air Quality Strategy. GLA Waste Officers will work with the relevant GLA Strategy teams and the GLA Strategy Co-ordination Group to ensure all these Strategies are recognised and consistent with the development of the Mayor’s Waste Management Strategy. The work will help the Mayor deliver the Mayor’s priority for a “cleaner, greener, more sustainable London” as set out in the Strategic Plan. This includes promoting the development of efficient waste management activities and local renewable energy generation contributing to the reduction in greenhouse gas emissions, and developing incentive schemes such as RecycleBank to increase London’s recycling performance. 2.2 Impact assessments and Consultation The GLA Act 1999 requires two formal consultation periods for publishing statutory strategies. Firstly the London Assembly and GLA group are consulted, followed by public consultation, which includes statutory consultation with the Environment Agency, London’s waste disposal authorities and waste disposal authorities with boundaries adjoining London, and local authorities where London’s municipal waste is, or is proposed to be, disposed. Prior to each consultation period there is a one-month internal consultation through the GLA Strategy Coordination Group. Impact assessments for health, equalities and sustainability and a (statutory) Strategic Environmental Assessment will be published alongside the Mayor’s Waste Management Strategy for public consultation and the final Strategy. 2.3 Risk New evidence is required to write a robust Mayor’s Waste Management Strategy using the most up-to date information on waste management services, cost modelling, and legislation. Without this work there is a risk the Strategy will not hold up to public scrutiny to reflect current waste management best practice and national waste targets set by the government. Without approval for the work there is also significant risk that there will be major slippage in the timetable for launching and publishing the Strategy, and commencing consultation with the London Assembly, Functional Bodies and wider stakeholders in autumn 2009. Legal Risk The Waste Strategy will need to comply with the powers and the process as set out in the 1999 Act (as amended by the Greater London Authority Act 2007 (the “2007 Act”) as otherwise the Authority will be in breach of its statutory obligations. The Legal team will review the document and seek Counsel’s advice to mitigate this risk. 3 3. Decisions 3.1 To approve that the amount of £100,000 be allocated from the central budget to the Development and Environment Directorate for the purposes of undertaking research to inform the Strategy evidence base in line with the Strategic Plan. To approve the procurement of consultancy services for the purposes of undertaking such research. 3.2 3.3 Defer publishing this Mayoral Decision on the GLA website until after tenders for research have been received (no later than 30 September 2009). 4. Financial Comments 4.1 The research informing the Mayor’s Waste Management Strategy will cost no more than £100,000, any further cost will need to go through the GLA decision-making process. 4.2 The budget will require transferring from the Centralised Programme Budget to the Development and Environment Directorate Budget. 4.3 The Environment and Development Team will monitor the project. All budget adjustments will be carried out. 5. Legal Comments Power 5.1 The decisions requested of the Mayor fall within the statutory powers under the Greater London Authority Act 1999 (the ‘Act’). Section 30 of the Act allows the Mayor, acting on behalf of the Authority, and after appropriate consultation, to do anything which the Mayor considers will further the promotion of the economic and social development of Greater London and the improvement of the environment within Greater London. Paragraph 1 above indicates that the relevant purpose of the Waste Strategy in this case is the promotion of environmental improvement in Greater London. Section 32 of the Act provides that the power under section 30 is exercisable only after consultation with such bodies or persons as the Authority considers appropriate in the particular case. Section 34 of the Act allows the Authority, acting by the Mayor, to do anything which is calculated to facilitate, or is conducive or incidental to, the exercise of any functions of the Authority exercisable by the Mayor. In this case, the decision to procure various consultants to provide various research studies to inform the Waste Strategy can reasonably be considered to fall within this incidental power. In exercising his general powers under S.30 and also in the development and implementation of the strategies the Mayor must have due regard to the principle of equality of opportunity for all people, and under S.404 in respect of all of the actions and activities of the GLA due regard must be had to the principle of equality of opportunity for all, regardless of race, sex, disability, age, sexual orientation or religion, to the elimination of unlawful discrimination and to the promotion of good relations between persons of different racial groups, religious beliefs and sexual orientation. 4 Procurement Economic analyses 5.2 Section 7 of the Contracts Code of Practice (the ‘Code’) requires the GLA to seek to obtain a minimum of 5 written quotes for the procurement of services with a value between £25,000 and £49,999. The relevant officers will need to ensure that the Code is complied with, that value for money is secured and that any contract is awarded to the economically most advantageous tenderer. Capture, participation and recognition rates on recycling performance 5.3 Section 7 of the Code requires the GLA to seek to conduct an advertised tender for a contract with a value of £50,000. The relevant officers will need to ensure that the Code is complied with, that value for money is secured and that any contract is awarded to the economically most advantageous tenderer. Greenhouse gas emissions modelling 5.4 Section 7 of the Code requires the GLA to seek to obtain 3 written quotes for the procurement of services up to the value of £25,000. The relevant officers will need to ensure that the Code is complied with, that value for money is secured and that any contract is awarded to the economically most advantageous tenderer. 5.5 On the above procurements relevant officers should liaise with the Legal Department at the stage of tender selection to ensure the necessary services contract is put in place to govern this work. 6. Background/supporting papers Appendix One: Specification: Economic modelling for the Mayor’s Municipal Waste Management Strategy. Appendix Two: Specification: Performance of London's municipal recycling collection services. Appendix Three: Specification: Greenhouse gas modelling tool for waste management activities. 5 Public access to information Information in this form is subject to the Freedom of Information Act 2000 (FOI Act) and other legislation. Part 1 of this form will be made available on the Greater London Authority website within 1 working day of approval. Any facts and advice that should not be made automatically available on request should not be included in Part 1 but instead on the separate Part 2 form. Deferment is only applicable where release before that date would compromise the implementation of the decision being approved. Is the publication of this approval to be deferred? YES If yes, for what reason: It is necessary to defer the publication of this MD until tenders have been received for consultancy services specified in the MD. Publishing the MD before tenders are received would not allow the GLA to effectively assess tenders on value for money. Until what date: 30 September 2009 Is there a part 2 form - NO OFFICER APPROVAL: Tick to indicate approval Sponsoring Director: Fiona Fletcher-Smith has reviewed the request and is satisfied it is correct and consistent with the Mayor’s plans and priorities. Mayoral Advisor: Isabel Dedring has been consulted about the proposal and agrees the recommendations. Head of Law: Corrin McCarthy has commented on this proposal on behalf of the Head of Law. Executive Director, Resources I have been consulted about the proposal and confirm that Financial and Legal advice have been taken into account in the preparation of this report. Signature Date Chief of Staff I am satisfied that this is an appropriate request to be submitted to the Mayor Signature Date 6