Issue - meetings

To consider a joint report of the Borough Treasurer and the Corporate Director for Place Management & Regeneration. 

RESOLVED – (53 for) That:-

(1) the revised Levy Apportionment Methodology Agreement, which was being applied in full from 2019/20 with transitional arrangements in place during 2018/19 be approved and endorsed.

(2) authority be delegated to the Corporate Director of Place Management and Regeneration, the Borough Treasurer and the Head of Legal and Democratic Governance Services in consultation with the Leader of the Council and the Cabinet Member for Communities and Housing to approve and/ or make any minor amendments to the final Levy Apportionment Methodology Agreement, and to enter into and finalise the Agreement, the transitional arrangements, and any associated documentation relating thereto.

To consider a joint report of the Leader of the Council and the Cabinet Member for Communities & Housing.

The current arrangements for the disposal of household waste in Greater Manchester (save for Wigan) were established in 2009 with the signing of the Recycling and Waste Management (PFI) Contract with Viridor Laing (Greater Manchester) limited (VLGM). The GMWDA acquired VLGM (for £1) in October 2017 which will allow existing arrangements to be formally terminated so as  to address issues that had arisen within the operation of the Contract and to enable significant efficiency savings to be released. The current Inter Authority Agreement (IAA), which was signed by all Districts in 2009, falls away with the termination of the PFI Contract and it is therefore necessary to reconsider the Levy apportionment within GM and for all Districts to approve and enter into a revised Levy Allocation Methodology Agreement (LAMA) which reflects the new arrangements. That Agreement is designed to apply for 10 years, and would be applied in full for the 2019/20 financial year onwards, with transitional arrangements being proposed for the financial year 2018/19.

The Cabinet is recommended to:

·         Approve and seek the endorsement of Council to the revised Levy Apportionment Methodology Agreement, which is being applied in full from 2019/20 with transitional arrangements in place during 2018/19.

·         Delegate authority to the Corporate Director of Place Management and Regeneration, the Borough Treasurer and the Head of Legal and Democratic Governance Services in consultation with the Leader and the Cabinet Member for Communities & Housing to approve and/ or make any minor amendments to the final Levy Apportionment Methodology Agreement, a current draft of which is appended, and to enter into and finalise the Agreement, the transitional arrangements, and any associated documentation relating thereto.

Officer contact: Michael Cullen, 0161 474 4631, michael.cullen@stockport.gov.uk

A joint report of the Leader of the Council and the Cabinet Member for Communities & Housing submitted a report (copies of which had been circulated) inviting the Cabinet to consider a new Inter Authority Agreement for waste and recycling collection and disposal and for a revised methodology for the allocation of the waste Levy. These revised arrangements had become necessary due to the intention of the GMWDA to terminate the existing agreement with Viridor Laing.

The Leader of the Council and Cabinet Member for Communities & Housing highlighted the complexity of the agreement and methodology, and tribute was paid to officers and members involved in its development.

The improvement to the finances of the GMWDA and Council as a result of the new agreement were highlighted, and the intention to freeze the Waste Levy for the next year prior to the implementation of the new arrangements. It was projected that as a result of this new arrangement the Council would reduce the waste disposal costs by £1m per year, and restricting the Levy increase to £200k in 2019/2020 as opposed to £1m under the previous contractual arrangements.

The Cabinet Member for Communities & Housing emphasised that despite the improvement this agreement would bring, including the improved incentives for recycling large quantities of waste, the Council nevertheless would be spending £21m per annum to dispose of waste and implored the public, partners and local businesses to do what they could to reduce their waste.

RESOLVED – That in relation to the GM Waste Disposal Levy Inter Authority Agreement:-

·           approval be given to the revised Levy Apportionment Methodology Agreement, to be applied in full from 2019/20 with transitional arrangements in place during 2018/19, and the endorsement of the Council Meeting be sought on this course of action; and

·           authority be delegated to the Corporate Director for Place Management and Regeneration, the Borough Treasurer and the Head of Legal & Democratic Governance Services in consultation with the Leader of the Council and the Cabinet Member for Communities & Housing to approve and/ or make any minor amendments to the final Levy Apportionment Methodology Agreement, a current draft of which was appended to the report, and to enter into and finalise the Agreement, the transitional arrangements, and any associated documentation relating thereto.

Michael Cullen (Borough Treasurer) will attend the meeting and make a presentation in relation to a replacement Levy allocation agreement (Inter-Authority Agreement – IAA) A to apply from the 2019/20 financial year and the transitional arrangements being used to cushion the financial impact of changes in the 2018/19 financial year.

The Borough Treasurer made a presentation in relation to a replacement Levy allocation agreement (Inter-Authority Agreement – IAA) A to apply from the 2019/20 financial year and the transitional arrangements being used to cushion the financial impact of changes in the 2018/19 financial year.

It was noted that the proposal in respect of cost allocation for household waste recycling centres was significantly better for Stockport than the default position (tonnage and council tax base).

RESOLVED – (1) That the presentation be noted. and the Cabinet and Council Meeting be recommended to approve the proposals.

(2) That the Borough Treasurer be thanked for his assistance in ensuring the proposals achieved a fair outcome and retained incentives to recycle.