Key information
Executive summary
MD2062 gave approval for the GLA to enter into a consortium agreement with the City of the Hague to deliver the Revolving Investment in Cities European Project. During the project negotiations, it has become apparent that one of the partners can no longer fulfil their role as a partner and their allocated budget is to be shared amongst the remaining consortium partners. This seeks approval to upwardly revise the GLA’s share of the funding award from €244,976 to €293,766.
Decision
It is requested that the Mayor:
1. approves:
(a) the revision to the GLA’s receipt of €293,766.EU Revolving Investment in Cities (RICE) funding from the City of The Hague (acting as lead partner); and
(b) GLA expenditure on the RICE project of up to €309,228 (€293,766 - EU RICE funding and up to €15,462 - existing GLA staff budgets);
2. delegates authority to the Executive Director for Development, Enterprise and Environment to take all steps necessary for the GLA to deliver its contribution to the RICE project, including revisions to proposed budget allocations, as appropriate, within the overall amount approved.
Part 1: Non-confidential facts and advice
1.1 MD2062 gave approval for the GLA to enter into a consortium agreement with the City of the Hague to deliver the Revolving Investment in Cities European Project (RICE). During the project negotiations, it has become apparent that one of the partners can no longer fulfil their role as a partner and their allocated budget is to be shared amongst the remaining consortium partners. This seeks approval to upwardly revise the GLA’s share of the funding award from €244,976 to €293,766
1.2 It would also mean the GLA contribution to the project will increase in line with the increase in the award. This would mean it would go up from go up from €12,984 to €15,462.
2.1 These have not changed from those outlined in MD2062.
3.1 These have not changed from those outlined in MD2062.
4.1 MD2062 approved the GLA’s involvement in the Revolving Investment in Cities (RICE) European Project, which included the GLA receipt of funding totalling €244,976. Due to reasons noted within the main body of this report, the GLA will now be awarded €293,766 via the City of The Hague. Over a 12-month period. In addition, the GLA is required to provide match funding totalling €15,462, which will be in the form of staff time and contained within the existing Delivery & Intelligence Unit’s Staffing budgets. This will bring the total estimated gross cost of the project to €309,228. A revised estimated project budget is summarised below:
Proposed Expenditure €
Staffing resource 105,761
Travel & Subsistence 27,958
Consumables & Supplies 7,000
Dissemination of information / publications 4,023
Consultancy Support 144,258
Direct eligible costs (7%) 20,228
Total 309,228
4.2 It should be noted that the GLA will make claims for the reimbursement of costs from the EU in arrears based upon actual spend and will be paid in euros; consequently, there is the risk that the GLA will suffer from exchange rate losses and the income received will not cover the expenditure incurred. Whilst it is not possible to estimate how much the potential loss will be; the losses will be contained within the GLA’s Delivery & Intelligence Units staffing budgets via savings made upon staffing resources already budgeted for and utilised as part of this project.
5.1 The foregoing sections of this report indicate that:
5.1.1 the decisions requested of the Mayor concern the exercise of the GLA’s general powers, falling within the statutory powers of the GLA to do such things as may be considered necessary to further, and or be facilitative of or conducive or incidental to the furthering of, the promotion of wealth creation and economic development in Greater London and the making of investments where for any purpose relevant to its functions under any enactment, or for the purposes of the prudent management of its financial affairs; and
5.1.2 in formulating the proposals in respect of which a decision is sought officers have complied with the GLA’s related statutory duties to:
(a) pay due regard to the principle that there should be equality of opportunity for all people;
(b) consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom; and
(c) consult with appropriate bodies.
5.2 In taking the decisions requested, the Mayor must have due regard to the Public Sector Equality Duty; namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, and to advance equality of opportunity between persons who share a relevant protected characteristic (race, disability, gender, age, sexual orientation, religion or belief, pregnancy and maternity and gender reassignment) and persons who do not share it and foster good relations between persons who share a relevant protected characteristic and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Mayor should have particular regard to section 3 (above) of this report.
5.3 Should the Mayor be minded to make the decisions sought Officers must ensure that they:
5.3.1 are content that the GLA can meet any conditions to which the RICE funding is subject seeking legal and finance advice as necessary;
5.3.2 do not act in reliance of such funding until The City of the Hague are obligated to the provision of the same (by way of a funding agreement or other legally binding document);
5.3.3 ensure that any services required for delivery of the project are procured by Transport for London Procurement who will determine the detail of the procurement strategy to be adopted in accordance with the GLA’s Contracts and Funding Code and appropriate contract documentation is put in place and executed by the successful bidder(s) and the GLA before the commencement of the services; and
5.3.4 comply fully with all GLA HR/Head of Paid Service protocols in respect of staffing proposals, in particular the need to gain all necessary approvals for the creation of any new posts.
Signed decision document
MD2105 Rice revision (signed) PDF