Decision details
Assessment of waste disposal contract extension options
PDF 120 KBDecision Maker: Director for economy, communities and corporate (Historic)
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Purpose:
To approve procurement of external legal, technical and financial support in assessing the benefit to the council of extending its waste management services contract (WMSC) with Mercia Waste Management Ltd (Mercia).
The WMSC is a jointly provided service with our partners Worcestershire County Council which delivers waste treatment and disposal services to the two councils; it is due to expire on 11 January 2024. Mercia has been asked to present proposals for an extension to the contract with a view to making savings to the councils as early as practicable.
Support is required to aid the council in assessing options and the financial benefit of extending the WMSC by a further 5 years, compared with the alternative of commissioning a new service.
Decision:
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That: (a) Funding made available to our partners Worcestershire County Council in respect of our joint arrangements with them for external legal, technical and financial advice be approved up to a total value of £50,000 to assess options and inform joint decision making; (b) further independent advice required by Herefordshire Council in assessing its own options in relation to future waste collection and management arrangements be procured at a cost of not more than £25k; and (c) the Director Economy, Communities and Corporate be authorised to take all operational decisions necessary to implement the above recommendations. |
Alternative options considered:
1. The councils could choose not to source any external legal, technical and financial support and rely on internal assessment of options and likely savings only.
2. Although this option would reduce the council’s costs of assessing options it is not recommended. The council does not have the necessary internal resources and experience to assess the full range of consequences of exercising a contract extension option of this nature.
3. In order to minimise costs they will be shared with our partners, Worcestershire County Council, except where Herefordshire requires independent advice.
4. Alternatively each council could decide to obtain its own independent advice and not share advisors. This is not recommended as duplicating work would not represent value for money for either council.
Wards Affected: (All Wards);
Contact: Kenton Vigus, Waste disposal team leader Email: kvigus@herefordshire.gov.uk Tel: 01432 260169.
Publication date: 06/02/2018
Date of decision: 06/02/2018
Effective from: 13/02/2018
Accompanying Documents: