Agenda item

·       Update on Contract

·       25/26 Budget Forecast

Consideration was given to report which had been circulated prior to the meeting and highlighted the following matters relating to the Joint Waste Private Finance Initiative:

-       Governance

-       Financial

-       Contract Delivery

-       Complaints

-       Environmental Report

-       Other Updates/Issues

-       Barnsley Transfer Station – Grange Lane

-       Health and Safety

-       Community Education Liaison Officer (CELO)

-       Joint Working and BDR Support 24/25

Paul Hutchinson, BDR Manager introduced the report. He explained that independent advice was being sought in relation to the Joint Insurance Cost Report. More details on this report were set out in section 7.2 and 7.3 of the report.

Expenditure continued to be re-profiled and re-calculated monthly, to ensure the team met all the anticipated workloads due in the 24/25 financial year, including the anticipated changes as set out in section 2.1.1 of the report. The BDR Operational Budget had seen an additional pressure added of around £3,500. This had arisen from the previous Waste Manager, Beth Baxter, working additional hours (on non-working days) for both BMBC and RMBC on specific, single Council waste projects. This additional cost was being paid by a £1,700 recharge to BMBC only and a £1,800 recharge to RMBC only.

The BDR Operational Budget would also see a further additional pressure added of around £22,000. This has arisen to assist DMBC obtain Legal Consultation (utilising Neil Tindall Legal Services) via the BDR PFI framework to assist specifically on their Waste Collection Service Contract. This additional cost was being paid by a recharge to DMBC only.

The BDR team proactively managed the Operational Budget, but it was anticipated that all of the budget might be utilised, and it was not anticipated that significant budgetary savings would be possible in 24/25.

In relation to the 25/26 Operational Management Budget Forecast, the initial estimate for the BDR Team Operational Management Budget for 2025/6 was that the teams existing budget of £340,000 (one third paid by each Council) should be sufficient to meet requirements. Details on the 25/26 Unitary Charge Forecast and 25/26 Energy Gainshare Payment were included as section 2.3 and 2.4 of the report.

Section 3.4 of the report outlined the Waste Treatment Performance. As DCC was collecting Pots, Tubs and Trays in their kerbside Dry mixed recycling from 1 April 2025, it would trigger a pre-agreed variation to the contract from that date and reduce the Recycling performance target for 25/26 from 17.5% to 17%. This was the same agreed variation that saw the target reduce from 19% to 18% when RMBC introduced plastic collection kerbside and a chargeable garden waste service, and from 18% to 17.5 % when BMBC introduced Pots, Tubs and Trays collection in their kerbside Dry mixed

recycling.

It was reported that earlier in the year, Biffa were, uncharacteristically, failing to meet the annual target for Landfill Diversion of 96.68%. They had been pressed on this issue and had advised that they had ensured mitigation was now in place to ensure they met the target by year-end, 31 March 2025.

Paul Hutchinson explained that complaints were being well managed. Biffa continued to have dialog with Next in respect of complaints of fly issues at their large warehouse that immediately neighboured the Bolton Road site, as Next felt Biffa were attributable for the issue. Three way dialog between Biffa, Next and the EA had been ongoing, and Biffa’s fly management improvement had been welcomes by all parties and the situation would be monitored into the spring and reviewed.

An update was provided in relation to Biffa, the new contractor. The BDR team had liaised with the Waste Infrastructure Development Program (WIDP) transactor, Defra, external consultants and colleagues from other authorities to assess options and contract implications. The BDR Team had been assured by Biffa that no changes to the delivery of service would be seen. It intended to take the next 6 to 12 months to integrate its new acquisition into its organisation and look to improve the business utilising internal Biffa assets/contracts/opportunities. All Renewi staff on site had been retained and would continue to deliver the contract as specified.

The BDR Team and its Legal, Financial, and Technical advisors were closely monitoring the situation and were in contact with Senior figures in Biffa, the retained personnel in both the SPV and OpCo. The Team was also liaising with other Councils with RUCK’s/BIFFA PFI’s, WIDP, Defra and the Senior Lenders who financed the project, to take soundings, be aware of wider issues/requests and sense check the sale. So far, no major issues, risks, or worries were circulating. The only request arising from the sale was for the Parent Company Guarantee in the contract’s various agreement documents to be changed from Renewi PLC to Biffa BidCo. After taking advice from consultants, this request had been rejected as the new proposed guarantor did not fulfil the requirements of a guarantor as set out in the contract. Renewi PLC remained the guarantor.

An update was provided in relation to Barnsley Transfer station at section 8 of the report. It was confirmed that Paul Castle was assisting in the matter with Barnsley Asset Management referenced in section 8 of the report. Contingency mapping was also underway.

Members asked questions in relation to the Waste Treatment Performance and the impact of the collection of Pots, Tubs and Trays.

Questions were asked in relation to the budget and whether it could be reduced as the subscription to the Herren Index was not expected to be renewed. Paul Hutchinson confirmed that budget monitoring was ongoing and the budget would be presented to the Joint Waste Board at the next meeting.

The Board placed on record their support for the BDR team and wished it to be noted that positive way in which the budget was monitored.

Resolved:

That the report be noted.