Decision details
To Consider Future Options for Waste Contract
Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
Purpose:
The proposals being made by Mercia Waste Management for the treatment of residual waste are considered.
Decision:
THAT: Subject to Worcestershire County Council giving approvals substantially in the same form as those contained in the recommendations of this report
(a) Notes, pursuant to the Cabinet Report of 16th February 2012 relating to a variation to the existing waste contract to provide for an Energy from Waste plant at Hartlebury Trading Estate (the EfW Plant), the ongoing discussions with Mercia Waste Management Limited (Mercia) in relation to their proposals and the current status of satisfaction of the Parameters identified in that report;
(b) Cabinet authorised the Director for Places and Communities in consultation with the Cabinet Member for Major Contracts, the Chief Officer Finance and Commercial and Worcestershire County Council and through the joint governance arrangements between the two authorities to pursue terms for alternative methods of finance for the EfW plant;
(c)
(i) authorised the Director for Places and Communities in consultation with the Cabinet Member for Major Contracts and Worcestershire County Council and through the joint governance arrangements between the two authorities, to consider how the commissioning and operation of the EfW Plant could be integrated into the existing arrangements with Mercia, and
(ii) if the Director for Places and Communities considered there was no satisfactory resolution in respect of point (i) above then (subject to f) below) he is authorised if he considers it necessary (in consultation with the Cabinet Member for Major Contracts and Worcestershire County Council and through the joint governance arrangements between the two authorities)to launch a tendering exercise to commence the direct procurement by the 2 Councils of the EfW Plant in accordance with paragraph 9.9 below;
(d) Notes that Worcestershire County Council is authorised to procure and commence enabling works up to a maximum capital cost of £1.8m at Hartlebury in order to maintain the programme for the EfW Plant;
(e) Requires the Director of Places and Communities to report back during the summer of 2013 with proposals for financing and procuring the EfW plant (by variation of the existing PFI contract or fresh procurement) to enable Cabinet to take a final decision; and
(f) Notes that Worcestershire County Council is expected to approve similar recommendations and that c ii) is subject to satisfactory negotiation and agreement with Worcestershire County Council of necessary amendments to the current Joint Working Agreement in place between the Councils; and
(g) Requires the Director for Places and Communities to report back to the Cabinet in the report referred to in (e) on the decisions taken by Worcestershire County Council on waste contract management and any implications for Herefordshire Council, .
Reasons for the decision:
The recommendations allow the Councils to explore options that potentially deliver better value for money and reducing any adverse effects of programme delay by commencing enabling works at Hartlebury.
Alternative options considered:
The purpose of this report is to allow Officers to explore alternative options for the financing the EfW at Hartlebury.
Reason Key: Expenditure and strategic nature / impact on communities;
Wards Affected: (All Wards);
Contact: Andy Tector, Head of Environmental Health and Trading Standards Email: aet@herefordshire.gov.uk Tel: 01432 261989.
Publication date: 14/12/2012
Date of decision: 13/12/2012
Effective from: 20/12/2012
Accompanying Documents:
- AMENDED Consider Future Options for Waste Contract 131212 v5
PDF 105 KB
- Appendix 1 - Parameters 211112 v2
PDF 28 KB
- Appendix 2 - Options Appraisal WCC_Briefing Report_21112012
PDF 328 KB
- Appendix 3 Landfill Tax Trajectory
PDF 101 KB
- Appendix 4 - HW EFW Procurement Technical Review Final Report 12385i1
PDF 2 MB