Agenda item

·         Governance

·         Contract Delivery

·         Legal

·         Financial

·         Communications

·         Resources

Paul Hutchinson presented the submitted report which highlighted and updated the following issues relating to the Joint Waste Private Finance Initiative (PFI):-

·            Governance

·            Contract Delivery

·            Legal

·            Financial

·            Communications

·            Resources

·            Joint Working and BDR Support

Attention was also drawn to the following:-

-           It was hoped to recruit a Senior Technical Officer the funding for which would come from the 2023/24 budget. The postholder would assist the team in anticipation of the increased workloads and service change requirements from new legislation

-           A Technical Consultant (Santec) had been secured specifically to investigate, review and advise on issues such as Environment Agency permit changes, Resource and Waste Strategy outcomes and maintenance plans

-           Over the current financial year there had been a general downward turn in the amount of waste being produced – 207,500 tonnes of waste against forecasted 219,000 tonnes

-           Current recycling rate of 14.52%, default of 10.5% and a target of 17.5%

-           Currently anticipated approximately 1% of waste going to landfill in 2022/23, however, due to a hydraulic ram having broken down, contingency arrangements had been put in place and waste would be diverted to landfill until the machinery was back in action

-           No complaints had been received since December 2022.  Renewi was proactive with regard to fly management, monitoring the weather and had started to use pesticides

-           Work was ongoing with regard to the damaged AD pasteurisation tunnels with discussions taking place between Renewi and their sub-contractor who built the tunnels.  There were no issues with waste acceptance or with performance, however, further construction may be needed in the future

-           Consideration of a feasibility study of Barnsley Transfer Station to ascertain the possibility of increasing capacities/extension

-           The Technical Consultant and legal expert were looking into Renewi’s claim that the Environment Agency draft revised permit was a Qualifying Change of Law resulting in a possible claim for any additional resources/expenditure to meet the new permit requirements .  It would have no effect on service delivery

-           BDR HWRC contract waste (containing Persistent Organic Pollutant (POPs)) was taken to Barnsley Transfer Station and then transferred to Ellsmere Port.  Renewi was currently only charging contract band rate whilst waiting BDR Team’s evaluation of their Change in Law claim.   Santec was looking at the guidance notes from the Environment Agency, the position statement and what changes had been incurred.  Nationally there was a feeling that the guidance was a change in law and most authority would have to deal with that with their contractors.  It was anticipated that that the cost would increase for contract waste (POPs).  However, it should be noted that non-contract PFI waste, bulky items, would still be an issue 

-           The 4^th Joint Insurance Cost Report (JICR) had been received and was with legal and financial advisors for review

-           The budget was underspent.  Expenditure had been profiled and re-calculated to ensure the Team met all the anticipated workloads in 2022/23

-           There was now only one Community Education Liaison Officer due to maternity leave

In response to a question regarding third party waste tonnage and how it was dealt with, where it came from, impact on delivery etc., it was noted that the BDR contract had a 265,000 tonne capacity and contractually Renewi could bring in third party waste for spare capacity.  Renewi tended to get third party waste mainly from their own contracts e.g. Derby and also had a reciprocal arrangement with Viola when they shutdown.  However, they did not bring waste in if it would cause problems for BDR deliveries as contract waste took priority. 

In response to a question asked about POPs, it was noted that a watching brief was being kept with regard to the BDR contact and the revised permit from the Environment Agency.

In response to a question regard the JICR, it was noted that the Report was in  place.  A report had to be drafted individually and the contractor has to set out what the differentials were from the previous version of the insurance and the requirements of the industry.  There was no issue in rejecting the Report.  If the contractor wished to pursue a claim they had to go through dispute resolution; in the past Renewi had not actively pursued this option.

Resolved: That the information provided be noted.