To authorise the parameters of negotiations with our contractors concerning the variation to the integrated waste contract and to note progress to date in those negotiations.

The Cabinet Member Major Contracts presented the Waste Contract to Cabinet and made on the following points:

·         This was a joint Cabinet report with Worcestershire County Council (WCC) on the integrated waste management PFI contract originally signed by both authorities in December 1998 to run for 25 years, December 2023. 

·         The report sets out the framework for Herefordshire Council’s negotiating position, which includes the parameters for planning, finance, contractual and technical (see Appendices 1-4 of the report).

·         Merica Waste Management and the two Councils are awaiting the decision of the Secretary of State on the planning application for an Energy from Waste Plant at Hartlebury, Worcestershire, which was the subject of a public inquiry in November 2011.  This is due by 23 April 2012.

·         The report does not financially commit the two Councils to any variation to the contract at this stage, this would be the subject of a further report.  Any variation will need to be affordable and provide value for money.

·         In the contractual parameters it is important that the two Councils agree to extend the joint working agreement insofar as it relates to this facility for a period commensurate with the intended life of the facility.

The Head of Special Projects reminded Cabinet that the existing landfill site would be full by 2023 and currently there was no alternative.  He informed Cabinet that the report before them was a mirror of the report presented to WCC on 9 February, which was approved by the Cabinet. 

Additional comments from Members:

·         Since the commencement of the contract in 1998 considerable recycling is carried out in both counties thereby reducing the number of black bags sent for landfill.

·         Cabinet was informed that the contractors had been advised that they would also need commercial waste to fulfil the contract at the plant.

·         In response to a question Cabinet was advised that the plant would be able to supply electricity to the national grid and would also combine heat with power to the Hartlebury trading estate.  The plant had the capacity to provide electricity for a substantial sized town.

·         It was noted that should electricity prices rise there would be financial benefits from the electricity provided due to the increase.

·         In response to a question on the alternatives if planning is rejected, Cabinet was advised that the options were limited and were outlined at Appendix 5 to the report with option G - energy from waste being located out of the county, being the worst case scenario.

·         In referring to page 32 of the report and the possible under capacity of the plant.  Cabinet was informed that should the plant be built there would be enough capacity to cope with the requirements of the plant and landfill.

RESOLVED

              THAT:

a)    Cabinet noted progress since the reports to Cabinet in September 2009 and January 2010;

b)    Subject to recommendation (d) below the Director for Places and Communities be authorised, in consultation with the Chief Officer Finance and Commercial and Worcestershire  ...  view the full minutes text for item 152