Outline Business Case (OBC) Full Business Case (FBC) Project Initiation Document (PID) Strategic Waste Facility Project Hub No.

Transcription

1 /PROJECT INITIATION DOCUMENT (template version 0.20) Outline Business Case (OBC) Full Business Case (FBC) Project Initiation Document (PID) Strategic Waste Facility Project Hub No. 359 Service Unit: Technical Services Risk: High Project Manager: Larry Austin Date: TBC Document Approvals - All Business Cases for projects over 25k must be approved by the following people listed in this table prior to being approved by the Transformation Board and Executive Gateway Board (EGB). Officer/Member/Group Name FBC Approval Date Project Owner Roger Ball Insert date Executive Director Bill Cotton N/A PID Approval Date Portfolio Holder Councillor Michael Filer N/A Portfolio Holder comment We enjoy close partnership working with neighbouring Councils which make up the Dorset Waste Partnership and are delighted to be in a position where we can all work together to finally develop a recycling facility on our doorstep. A local plant will bring substantial efficiency and cost savings to all partner authorities through having to avoid sending recyclable materials elsewhere in the country. Transformation Board (Transformation Projects Only) Executive Gateway Board Cabinet Project Board N/A N/A N/A N/A Other Elected Members & Officers Consulted Name Position Date Councillor John Beesley Leader of the Council & Resources Feb 12-Dec 12 Page 1

2 /PROJECT INITIATION DOCUMENT (template version 0.20) Councillor Hilary Cox Chair of Dorset Waste Partnership Feb 12-Dec 12 Councillor Robert Lawton Portfolio Holder - Housing Feb 12-Dec 12 Councillor Mark Anderson Chair of E&TOSP Feb 12-Dec 12 Councillor Mike Greene Ward Member Feb 12-Dec 12 Document Revision History Version Author Changes Date Page 2

3 Purpose of the Document The purpose of the business case is to ensure that all project stakeholders have a shared understanding of the project objectives and scope, with particular emphasis on identifying the cost/benefit ratio against any associated risks. A detailed options appraisal should be conducted and the preferred option and associated details explained. The Business Case ensures that the project has a sound basis and is legally complaint before asking the Project Owner and Gateway Board to make any major commitment to the project. It also acts as a base document against which the Project Owner/Project Board and Project Manager can monitor progress and ongoing viability. The PID sections at the end of the document should be completed once Gateway 2 approval has been received and brings together all key pieces of information for the project and acts as a contract between the Project Manager and Project Board forming the basis for its management and the assessment of overall success. The PID consists of the following additional elements: Benefits Realisation, Project Approach, Key Deliverables/Project Plan and Milestones, Issues and Risk Logs, Quality Plan and a Communications Strategy. Transformation projects initially only need to complete sections 1-3. This will act as an OBC (Outline Business Case). Sign off should be sought at the OBC stage from the Transformation Board and Gateway board, should funding to complete the Full Business Case be required - before continuing onto the remaining Business Case sections. Once all sections have been completed up to and including section 5, the document is considered the full business case or (FBC)>> Page 3

4 1 Executive Summary It is recognised that waste is increasingly important in local government efficiency, with partnership working between local authorities on waste identified as a significant way of delivering real benefits. Furthermore, the Bournemouth, Dorset and Poole Waste Local Plan highlights the potential to explore local mechanisms and consider joint working with a view to integrating waste management activities and improving service delivery. As a direct result of a successful 14.2million bid submitted to the Department of Communities and Local Government (DCLG) in partnership with the Dorset Waste Partnership (DWP), this business case focuses on the use of an EU competitive tendering process to design, build and operate a strategic, local waste management facility. This will comprise of an 85,000tpa Materials Recovery Facility (MRF) and bulking/transfer facilities for segregated glass and food waste. Construction of a long term, strategic site would deliver the following benefits: opportunity to process the range of co-mingled recyclable materials collected by all partnering authorities; compliment the alignment of collection methodologies currently underway throughout the Dorset region; ensure local authority control over the facility operation; ensure local authority control over resource marketing; enhance the quality of recyclable materials (inputs and outputs); increased opportunity for round optimisation; reduced carbon implications linked to vehicle movements, direct site delivery and reduced haulage requirements; provide local employment opportunities; greater transparency for residents regarding processing and end destination of recyclates; provide a cost effective waste management solution for SME s; ensure waste management plays its part in the wider efficiency requirements of all partners; increased waste awareness/education for residents, schools and businesses; increased opportunity for cottage reprocessing businesses (local circular economy) provide further joint working and partnership opportunities with other neighbouring authorities e.g. Wiltshire Council MRF design and operation in accordance with the emerging materials recovery Code of Practice will assist in achieving maximum recycling, high environmental standards and efficient, competitive and transparent markets. In addition, a contractual shared profit mechanism on a proportional basis will incentivise a private sector operator to maximise productivity and performance in relation to business continuity, resource sales and meeting all statutory requirements. The income generated from product sales will significantly assist local authority partners to mitigate financial pressures and continue delivering a range of high quality, efficient services to all residents and service users. Page 4

5 2 Strategic Fit: The Strategic Case 2.1 Business Needs and Project Background This project represents a departure from the existing BBC and DWP contractual arrangements of transporting co-mingled recyclable material collected at the kerbside to other areas of the UK for processing. Construction of an appropriately scaled, local MRF would provide the opportunity for real partnership working, generate substantial income and deliver significant benefits relating to CO2 emmisions. The development of the Bournemouth Borough Council Municipal Waste Management Strategy (MWMS) included a comprehensive public consultation exercise, Strategic Environmental Assessment, options appraisal and WRATE modelling/assessment; all of which contributed to a strong preference to retain a comingled collection of recyclable materials. The emerging DWP uniform collection service (as agreed by the seven partnering authorities) now aligns the DWP recycling collection methodology to that of BBC.Commitment to a co-mingled collection in Poole and Wiltshire also provide the partnering authorities with further compelling evidence and opportunity to optimise service provision. If this business case does not proceed, the partnering authorities will be impacted by the following: Reduced flexibility, resillience and adaptability in relation to the emerging MRF Code of Practice and EU guidance for the Waste Framework Directive for 'high quality recycling'. Reduced flexibility, resillience and adaptability to maintain a co-mingled recycling collection service which aligns with the EU guidance for the Waste Framework Directive and remains 'technically, environmentally and economically practicable'. Reduced income potential from MRF in relation to higher quality recyclates (inputs and outputs); Unable to fully comply with the aims and objectives of the respective waste management strategies and Bournemouth, Dorset and Poole Waste Local Plan, in particular following the Proximity Principle, reducing the total household waste arisings and reducing the carbon burden of waste management activities. 2.2 Benefits, Objectives and Strategic Alignment A strategic waste facility would enable all partners to fully comply with the aims and objectives of the respective waste management strategies and Bournemouth, Dorset and Poole Waste Local Plan. In particular, following the proximity principle and dealing with waste within or as close to borough boundaries as possible and thereby reducing the impact on climate change caused by waste movements to treatment facilities further afield. Construction of a local Materials Recovery Facility (MRF) capable of processing 85,000 tonnes per annum of the same range of co-mingled recyclable material collected by all partnering authorities would also offer route optimisation and cross boundary working opportunities, and full compliance with the emerging materials recovery Code of Practice will ensure the facility meets the highest environmental standards. Page 5

6 Council Strategic Objective / Corporate Priority (taken from Corporate Plan, Service Plans etc ) This project will help deliver the Headline Corporate Plan priority - An Efficient Council Project Outcome This bid demonstrates value for money and aligns collections with the neighbouring Dorset Waste Partnership. Recycling collection and processing delivered in partnership with other organisations will offer future collection flexibility for the Borough of Poole and deliver significant environmental benefits. Benefits expected as a result of achieving outcomes Indicative Project Costs were produced as part of the Outline Bid submission. During the intervening period between Outline Bid and Final Bid submission, the partnership took the opportunity of producing a total cost model for this project utilising the MRF Costing Model produced by Entec Consulting on behalf of WRAP. This has allowed the partnership to produce an accurate and comprehensive whole life costing for this project incorporating capital, operating and unit costs per tonne of sorting and bulking dry recyclables. To further verify the total project costs, this model has also been subject to a comprehensive peer review and industry benchmarking process undertaken by AMEC Environment & Infrastructure UK Limited. Projected cashable benefit to the partnership of 9,223,000 (based on 15 year projection). Please refer to Appendix 1 (Item 1) - Financial Analysis This project will help deliver the Headline Corporate Plan priority - An Improving Environment The Strategic Waste Facility bid is in direct accordance with the aims and objectives of the Bournemouth Municipal Waste Management Strategy and will contribute to reducing levels of household waste. A strategic waste facility would enable all partners to fully comply with the aims and objectives of the respective waste management strategies and Bournemouth, Dorset and Poole Waste Local Plan. In particular, following the proximity principle and dealing with waste with or as close to borough boundaries as possible an thereby reducing the impact on climate change caused by waste movements to treatment facilities further afield. Construction of a local Materials Recovery Facility (MRF) capable of processing the same range of co-mingled recyclable material collected by all partnering authorities would also offer route optimisation and cross boundary working opportunities, and full compliance with the emerging materials recovery Code of Practice will ensure the facilit meets the highest environmental standards. Page 6

7 Council Strategic Objective / Corporate Priority (taken from Corporate Plan, Service Plans etc ) This project will help deliver the Headline Corporate Plan priority A Thriving Economy Project Outcome Increased employment opportunities and growth in the Green Economy Benefits expected as a result of achieving outcomes Creation of 30 full time positions at the MRF and increased opportunity for cottage reprocessing businesses (local circular economy). In addition to the direct cashable benefits to the partnering authorities, the potential of 'merchant capacity' at the facility for other local authorities or commercial organisations could also generate further significant income, and the stimulus of local employment opportunities would also align with aspirations of the Bournemouth, Dorset and Poole Multi Area Agreement and Green Knowledge Economy. 2.3 Scope: (In/Out) Inclusions: Technical, legal, planning and procurement support. Facility construction, equipment costs, 20% contingency sum Land value plus land aquisition costs (based on 1.6 hectares cleared industrial site) The project focuses on the use of an EU competitive tendering process to acquire the land, design, build and operate a strategic, local waste management facility, comprising of an 85,000tpa Materials Recovery Facility (MRF) and bulking/transfer facilities for segregated glass and food waste. The project plan is prepared on the basis that the necessary land aquisition, buildings and equipment required to develop this project will be owned by the partnership. However the Partnership are exploring and considering alternative delivery options. Exclusions: Costs and resources associated with communication, engagement and education activities. To contribute to the overall success of this project there will be an ongoing requirement to ensure the project benefits are widely publicised by the respective partner s internal communications teams using all forms of media communications. A Communications Issues Planner is included as Appendix Strategic Risk To ensure due diligence and governance this project will be delivered in accordance with Bournemouth Borough Council's Project Management Gateway Process. A Partnership Board has been established (Appendix 3) and includes senior representation from each of the partnering authorities. The Project Manager will be responsible for preparing and submitting the necessary documentation for each stage of the project and project progression will require approval from the Partnership Board. Key decisions and wider Page 7

8 project approval will be subject to the appropriate scrutiny and decision making processes of the respective partners. This will include the Dorset Waste Partnership Joint Committee, Cabinet approval and adoption by Full Council accordingly. In collaboration with senior officers within the Strategic Finance and Risk & Insurance departments a comprehensive Project Risk Register has been developed and is included as Appendix 4 A full Sustainability Impact Assessment has been undertaken for this project Appendix 5. An independent Environmental Impact Assessment will be required at the project outset, and a combination of planning powers and the EA licensing regime will ensure compliance with all policies with regard to integrated waste management facilities and protection of the environment. Page 8

9 3 Options Appraisal: The Economic Case 3.1 Summary of Approach It is recognised that waste is increasingly important in local government efficiency, with partnership working between local authorities on waste identified as a significant way of delivering real benefits. The Bournemouth, Dorset and Poole Waste Local Plan highlights the potential to explore local mechanisms and consider joint working with a view to integrating waste management activities and improving service delivery. From the outset this project fully considered the do nothing approach and maintaining the status quo but it was clearly recognised that construction of a long term, strategic site would deliver the partnership significant financial and environmental benefits. The construction of a local facility would balance social, economic and financial considerations, ensure sustainable waste management and offer the maximum opportunity to convert waste into a resource. Demonstrable value for money for partnering authorities will be achieved by a combination of enhanced efficiency of service provision and a contractual market share of the income generated from materials marketing. The potential of 'merchant capacity' at the facility for other local authorities or commercial organisations could also generate further significant income and the stimulus of local employment opportunities would also align with aspirations of the Bournemouth, Dorset and Poole Multi Area Agreement and Green Knowledge Economy. A strategic local waste management facility would be in accordance with regional and local planning context, located on a preferred site as identified in the Bournemouth, Dorset and Poole Waste Local Plan and directly align with the guiding principles and core policies of the respective waste management strategies and Bournemouth, Dorset and Poole Waste Local Plan. A limited number of local authorities currently have ownership of their own MRF and this project would deliver an innovative partnership, long term security and a reduction in risk associated with market forces and material prices. As lead authority, officers sought Bournemouth Borough Council Cabinet approval to develop the Strategic Waste Facility funding bid and the final bid submitted to DCLG for this project was fully approved by the Dorset Waste Partnership Joint Committee and the Dorset County Council Cabinet as the Host Authority for the DWP. 3.2 Options Appraisal Option 1 Do nothing approach and maintain the status quo Total Expected Financial Benefit ( k) > 85,000 per annum - based on our existing contractual arrangement for the processing of recyclable material. Expected non Financial Benefit N/A Strengths (Including opportunities) Total Expected Financial Cost ( k) N/A High level Breakdown of Costs N/A Weaknesses (Including threats) Page 9

10 Income generated through existing recycling processing contract. Reduced flexibility, resillience and adaptability in relation to the emerging MRF Code of Practice and EU guidance for the Waste Framework Directive for 'high quality recycling'. Reduced flexibility, resillience and adaptability to maintain a co-mingled recycling collection service which aligns with the EU guidance for the Waste Framework Directive and remains 'technically, environmentally and economically practicable'. Reduced income potential from MRF in relation to higher quality recyclates (inputs and outputs). Unable to fully comply with the aims and objectives of the respective waste management strategies and Bournemouth, Dorset and Poole Waste Local Plan, in particular following the Proximity Principle, reducing the total household waste arisings and reducing the carbon burden of waste management activities. Expiry date of August for existing recycling processing contract Risk Mitigation Strategy Page 10

11 Reduced flexibility, resillience and adaptability in relation to the emerging MRF Code of Practice and EU guidance for the Waste Framework Directive for 'high quality recycling'. Do not commit to any inflexible, long term contractual arrangement - procure a short term recycling processing contract to commence in August Reduced flexibility, resillience and adaptability to maintain a co-mingled recycling collection service which aligns with the EU guidance for the Waste Framework Directive and remains 'technically, environmentally and economically practicable'. Reduced income potential from MRF in relation to higher quality recyclates (inputs and outputs). Unable to fully comply with the aims and objectives of the respective waste management strategies and Bournemouth, Dorset and Poole Waste Local Plan, in particular following the Proximity Principle, reducing the total household waste arisings and reducing the carbon burden of waste management activities. Expiry date of August for existing recycling processing contract Timeline Ongoing Indicative Funding Source BBC revenue budgets Option 2 Undertake an EU competitive tendering process to acquire the land, design, build and operate a strategic, local waste management facility, comprising of an 85,000tpa Materials Recovery Facility (MRF) and bulking/transfer facilities for segregated glass and food waste. Total Expected Financial Benefit ( k) Projected cashable benefit to the partnership of 9,223,000 (based on 15 year projection). Please refer to Appendix 1 - Financial Analysis Total Expected Financial Cost ( k) 14,225,000 Expected non Financial Benefit High level Breakdown of Costs Page 11

12 reduced carbon implications linked to vehicle movements, direct site delivery and reduced haulage requirements; compliment the alignment of collection methodologies currently underway throughout the Dorset region; greater transparency for residents regarding processing and end destination of recyclates; enhance the quality of recyclable materials (inputs and outputs); ensure local authority control over the facility operation; ensure local authority control over resource marketing; 550,000 Revenue - technical, legal, planning and procurement support. 11,975,000 Capital - facility construction, equipment costs, 20% contingency sum 1,700,000 Capital land value plus land aquisition costs (based on 1.6 hectares cleared industrial site) Strengths (Including opportunities) Weaknesses (Including threats) Page 12

13 opportunity to process the range of co-mingled recyclable materials collected by all partnering authorities; increased opportunity for round optimisation; provide local employment opportunities; provide a cost effective waste management solution for SME s; ensure waste management plays its part in the wider efficiency requirements of all partners; increased waste awareness/education for residents, schools and businesses; increased opportunity for cottage reprocessing businesses (local circular economy) provide further joint working and partnership opportunities with other neighbouring authorities e.g. Wiltshire Council Other environmental initiatives such as solar roof panels and geothermal heating would also be considered as part of the facility design All partners will need to commit to a comprehensive and robust Inter Authority Agreement and agree a contractual shared profit mechanism on a proportional basis. This agreement must also incentivise a private sector operator to maximise productivity and performance in relation to business continuity, resource sales and meeting all statutory requirements. MRF design and operation in accordance with the emerging materials recovery Code of Practice will assist in achieving maximum recycling, high environmental standards and efficient, competitive and transparent markets. In addition, a contractual shared profit mechanism on a proportional basis will incentivise a private sector operator to maximise productivity and performance in relation to business continuity, resource sales and meeting all statutory requirements. The income generated from product sales will significantly assist local authority partners to mitigate financial pressures and continue delivering a range of high quality, efficient services to all residents and service users. Risk Please refer to Project Risk Register (Appendix 4) Timeline Please refer to Project Plan (Appendix 6) Mitigation Strategy Please refer to Project Risk Register (Appendix 4) Indicative Funding Source DCLG Weekly Collection Support Scheme Page 13

14 3.3 Preferred Option Undertake an EU competitive tendering process to acquire the land, design, build and operate a strategic, local waste management facility, comprising of an 85,000tpa Materials Recovery Facility (MRF) and bulking/transfer facilities for segregated glass and food waste. A strategic waste facility would enable all partners to fully comply with the aims and objectives of the respective waste management strategies and Bournemouth, Dorset and Poole Waste Local Plan. In particular, following the Proximity Principle and dealing with waste within or as close to borough boundaries as possible and thereby reducing the impact on climate change caused by waste movements to treatment facilities further afield. Construction of a local 85,000tpa MRF capable of processing the same range of co-mingled recyclable material collected by all partnering authorities would also offer route optimisation and cross boundary working opportunities, and full compliance with the emerging materials recovery Code of Practice will ensure the facility meets the highest environmental standards. A full Sustainability Impact Assessment has been undertaken for this project (Appendix 5) An independent Environmental Impact Assessment will be required at the outset of the project design/construction phase, and a combination of planning powers and the EA licensing regime will ensure compliance with all policies with regard to integrated waste management facilities and protection of the environment. Page 14

15 4 Affordability: The Financial Case 4.1 Quantification of Risk and Associated Contingency The partnership has produced a robust cost model for this project utilising the MRF Costing Model produced by Entec Consulting on behalf of WRAP. This has allowed the partnership to develop a detailed whole life costing for this project incorporating capital, operating and unit costs per tonne of sorting and bulking dry recyclables. To further verify the total project costs, this model has also been subject to a comprehensive peer review and industry benchmarking process undertaken by AMEC Environment & Infrastructure UK Limited. Please refer to MRF Costing Model (Appendix 7). This comprises of seven separate data sets: an overall summary (Appendix 7g), annual financial modelling (Appendices 7a-e) and total build cost (Appendix 7f). 4.2 Running Costs 4.3 Savings Please refer to 4.1 BBC and DWP fully recognise the potential cashable benefits, whole life costings and inevitable financial implications associated with this project. As a consequence, the Partnership Board are formulating an Inter Authority Agreement which must clearly determine the financial arrangements and agreed profit share mechanism for this project. Linked to the Council s Medium Term Financial Plan, the Council s annual budget cycle will include the due and proper regard to ensure the necessary resources continue to be made available in order to maintain a cost effective, flexible and sustainable service for all residents. 4.4 Spend Profile and Cash Flow Please refer to Financial Analysis (Appendix 1) *** Any projects that involve office moves must be approved by Roger Ball and associated costs built into the business case prior to progressing this business case for approval as detailed in the policy Page 15

16 4.5 Source of Funding Source of Funding Total ( k) DCLG Weekly Collection Support Scheme 14,225,000 Total 14,225,000 Previously Awarded Feasibility Funding Date Awarded Description of Funding Usage Total ( k) N/A Page 16

17 5 Achievability: The Project Management Case This project comprises of a number of stages and the Project Plan (Appendix 6) demonstrates a phased approach to project delivery but this can be adjusted to bring forward or hold back individual elements of the project and associated expenditure. To ensure due diligence, resource allocation and governance, this project will be delivered in accordance with Bournemouth Borough Council's Project Management Gateway Process. A Partnership Board has been established (Appendix 3) and includes senior representation from each of the partnering authorities. The Project Manager will be responsible for preparing and submitting the necessary documentation for each stage of the project and project progression will require approval from the Partnership Board. Key decisions and wider project approval will be subject to the appropriate scrutiny and decision making processes of the respective partners. This will include the Dorset Waste Partnership Joint Committee, Cabinet approval and adoption by Full Council accordingly. 5.1 Project Approach The project approach and work packages are clearly defined within the project governance and Partnership Board (Appendix 3) Technical support is required in order to develop the specification, evaluation criteria and contract for the construction and delivery of the MRF (including land purchase if required) and support during the mobilisation period. It is expected that the support service will work alongside the Project team providing assistance throughout the project via different forms of communication such as electronic, telephone and face to face and will involve attendance at meetings in Bournemouth and the Dorset area. The consultants will form part of the project team which will be based in Bournemouth and office space will be made available as required within Bournemouth Borough Council premises in order to carry out this work, Scope of Work The work required includes (but not exclusively): Technical input in tender specification Assistance in project risk management Assistance with soft market testing Assistance in bidders information day Preparation of responses to tender queries Tender evaluation The project has also included funding for external legal and/or procurement support if required. Page 17

18 5.2 Evidence of Similar Projects This bid represents a departure from any planned infrastructure activity, and construction of an appropriately scaled, strategic waste management facility would provide the opportunity for real partnership working. A very limited number of local authorities currently have ownership of their own MRF and this project would deliver an innovative partnership, long term security and a reduction in risk associated with market forces and material prices. 5.3 Resources Required Please refer to section Benefit Realisation Benefit Projected cashable benefit to the partnership of 9,223,000 (based on 15 year projection). Please refer to Appendix 1 - Financial Analysis How will the benefit be Measured? Financial monitoring Profit/loss accounts Open book accounting. Frequency of Measurement Monthly from January 2013 Contractual KPI s Reduced carbon implications linked to vehicle movements, direct site delivery and reduced haulage requirements Compliment the alignment of collection methodologies currently underway throughout the Dorset region Greater transparency for residents regarding processing and end destination of recyclates Enhanced quality of recyclable materials (inputs and outputs) Contractual profit share mechanism WRATE assessments/route optimisation modelling/cross boundary working Successful implementation of the DWP uniform collection service throughout the Dorset region Material mass flow reporting MRF design and operation in accordance with the emerging materials recovery Code of Practice will assist in achieving maximum recycling, high environmental standards and market integrity. Resident surveys Contractual KPI s Material mass flow reporting MRF design and operation in accordance with the emerging materials recovery Code of Practice will assist in achieving maximum recycling, high environmental standards and market integrity. Performance management and quality assurance data Contractual KPI s Quarterly from Annually from January 2013 Monthly from Monthly from Page 18

19 Benefit Local authority control over the facility operation Local authority control over resource marketing Opportunity to process the range of comingled recyclable materials collected by all partnering authorities Increased opportunity for round optimisation Local employment opportunities Provide a cost effective waste management solution for SME s Ensure waste management plays its part in the wider efficiency requirements of all partners Increased waste awareness/education for residents, schools and businesses Increased opportunity for cottage reprocessing businesses (local circular economy) How will the benefit be Measured? Material mass flow reporting Contractual KPI s Contractual profit share mechanism Material mass flow reporting Contractual KPI s Contractual profit share mechanism Material mass flow reporting Successful implementation of the DWP uniform collection service throughout the Dorset region MRF design and operation in accordance with the emerging materials recovery Code of Practice will assist in achieving maximum recycling, high environmental standards and market integrity. Material mass flow reporting WRATE assessments/route optimisation modelling/cross boundary working Number of employment opportunities during construction phase. Number of employment opportunities for facility operation Contractual KPI s to ensure maximum number of Apprenticeship positions. Commercial recycling tonnages sent for processing Performance management and quality assurance data Contractual KPI s Material mass flow reporting Cashable benefits linked to MTFP Number of visits to facility Number of waste awareness/recycling campaigns MRF design and operation in accordance with the emerging materials recovery Code of Practice will assist in achieving maximum recycling, high environmental Frequency of Measurement Monthly from Monthly from Monthly from Quarterly from Quarterly from July 2013 Monthly from Monthly from Monthly from Monthly from Page 19

20 Benefit Provide further joint working and partnership opportunities with other neighbouring authorities e.g. Wiltshire Council Other environmental initiatives such as solar roof panels and geothermal heating. How will the benefit be Measured? standards and market integrity. Performance management and quality assurance data Contractual KPI s Material mass flow reporting Merchant capacity tonnages Performance management and quality assurance data Material mass flow reporting Carbon reporting Frequency of Measurement Monthly from Monthly from 5.5 Critical Success Factors The project approach and work packages are critical success factors. These are clearly defined within the project governance and Partnership Board (Appendix 3) Technical support is required in order to develop the specification, evaluation criteria and contract for the construction and delivery of the MRF (including land purchase if required) and support during the mobilisation period. It is expected that the support service will work alongside the Project team providing assistance throughout the project via different forms of communication such as electronic, telephone and face to face and will involve attendance at meetings in Bournemouth and the Dorset area. The consultants will form part of the project team which will be based in Bournemouth and office space will be made available as required within Bournemouth Borough Council premises in order to carry out this work, Scope of Work The work required includes (but not exclusively): Technical input in tender specification Assistance in project risk management Assistance with soft market testing Assistance in bidders information day Preparation of responses to tender queries Tender evaluation The project has also included funding for external legal and/or procurement support if required. An independent Environmental Impact Assessment will be required at the project outset, and a combination of planning powers and the EA licensing regime will ensure compliance Page 20

21 with all policies with regard to integrated waste management facilities and protection of the environment. 5.6 Assumptions & Constraints Assumptions The partnership has produced a robust cost model for this project utilising the MRF Costing Model produced by Entec Consulting on behalf of WRAP. This has allowed the partnership to produce an accurate and comprehensive whole life costing for this project incorporating capital, operating and unit costs per tonne of sorting and bulking dry recyclables. To further verify the total project costs, this model has also been subject to a comprehensive peer review and industry benchmarking process undertaken by AMEC Environment & Infrastructure UK Limited. Please refer to MRF Costing Model (Appendix 7). This comprises of seven separate data sets: an overall summary (Appendix 7g), annual financial modelling (Appendices 7a-e) and total build cost (Appendix 7f). Constraints The Weekly Collection Support Scheme is a three year fund from 2012/13 to /15 and payments will be in the form of a Section 31 grant payment which is not ring-fenced. Although DCLG will not clawback funding awarded under this Scheme in-year, in order to minimise risk, funding will only be paid one year at a time. The profile of payments has been agreed with DCLG and as this project represents significant investment, DCLG have set out a two stage payment process linked to project milestones. The Bournemouth Borough Council Section 151 Officer as the lead authority in this partnership will be personally accountable for ensuring that funding is spent responsibly. Due diligence is needed in delivery of this project to ensure no breach of state aid rules (which are set out in Articles 107 to 109 of the Treaty of the Functioning of the European Union) and apply to all public funding within the European Union. If this project experiences significant delays (e.g. planning permission/environmental impact assessment/permitting etc) it will be necessary for the Project Manager to contact DCLG to discuss the timing issue. It will not be possible for DCLG to release any money after 31 March Interdependencies The funding bid for the Strategic Waste Facility project was a standalone bid but other benefits can now be fully explored when linked to the successful funding bid for the Big Bin/Little Bin Enhancement project. If glass segregation was introduced as part of the Big Bin/Little Bin Enhancement project the proposed MRF would still be designed with the ability to process glass, thus enabling the Borough of Poole and other neighbouring authorities such as Wiltshire to utilise the facility and generate further efficiencies. This would also create the potential for a cost effective commercial service for local businesses and deal effectively with any glass contamination within the enhanced Bournemouth comingled recycling service. The service transformation currently underway within the Dorset Waste Partnership includes a weekly collection of food waste which aligns with the Big Bin/Little Bin Enhancement proposal to introduce an opt in weekly collection of food Page 21

22 waste, together with the commitment to weekly residual collections. The Strategic Waste Facility bid could therefore, offer increased route optimisation and productivity opportunities by incorporating bulking/transfer facilities for food waste as well as bulking/transfer facilities for glass collected from the Bournemouth and Dorset Waste Partnership collections as well as local businesses. 5.8 Key Stakeholders Stakeholder or Stakeholder group BBC Cabinet and Elected Members DWP Joint Committee and Elected Members Bournemouth & Dorset residents Bournemouth & Dorset business community Borough of Poole Officers and Elected Members Relevance to project Influence successful project delivery/benefit realisation/influenced by project implementation Influence successful project delivery/benefit realisation/influenced by project implementation Influence successful project delivery/benefit realisation/influenced by project implementation Influence successful project delivery/benefit realisation/influenced by project implementation Influence successful project delivery/benefit realisation/influenced by project implementation 5.9 Project Management Organisational Structure The project management approach and organisational structure are clearly defined within the project governance and Partnership Board (Appendix 3) 5.10 Timescales and Project Plan Project Start Date Project End Date November 2012 This project comprises of a number of stages detailed within the Project Plan (Appendix 6) 5.11 Progress Monitoring and Reporting Process The project will report on a regular basis following the Council s mandatory project management process. It will use the standard progress report that captures progress against the key activities / milestones, top risks and issues, progress against benefits targets and an overall summary 6 Appendices Business Case Appendix 1 Financial Analysis Page 22

23 Appendix 2 Communications Issues Planner Appendix 3 Project Governance/Partnership Board Appendix 4 Project Risk Register Appendix 5 Sustainability Impact Assessment Appendix 6 Project Plan Appendix 7 MRF Costing Model Appendix 8 Initial Risk Assessment Page 23

24 G3 PROJECT INITIATION DOCUMENT 7 Project Initiation Document 7.1 Key Deliverables and Milestones ID Title & Description Owner Planned Date Appointment of technical support Award of MRF tender Completion of MRF Construction First consignment of recyclates Project Manager Project Manager Project Manager Project Manager Project Meetings Name of Meeting Details of Meeting Frequency Partnership Board Working Group To receive highlight reports and recommendations from the Project Manger, consider and recommend key project decisions to BBC Cabinet and DWP Joint Committee To discuss and monitor progress of work packages to enable the Project Manager to feed into monthly highlight reports for the Project Board. Monthly Weekly 7.3 Issue, Risk and Change Management The project will follow the Council s mandatory escalation procedure and change process. Risk Mitigation Strategy Owner Refer to Appendix 4 Project Risk Register Page 24

25 G3 PROJECT INITIATION DOCUMENT 7.4 Quality Management - Project Output/ Product Define any standards that need to be met (eg. BREEAM, CDM Regs, Building Regs etc) How do you intend to meet quality expectations Who will review the quality of the product and when? MRF design and operation in accordance with the emerging materials recovery Code of Practice will assist in achieving maximum recycling, high environmental standards and efficient, competitive and transparent markets. Quality Assurance - ISO 9001 Environmental Management System - ISO Health & Safety accreditation - OHSAS Building Regulations CDM Regulations MRF Code of Practice Tender Specification Project Manager/Project Team 7.5 Communications Plan A Communications Issues Planner is included as Appendix 2 Page 25