Agenda item

To receive an annual report from the BDR Manager for 2022-23 in respect of:-

·         Governance

·         Contract Delivery

·         Legal

·         Financial

·         Communications

·         Resources

Consideration was given to the Annual Report which had been circulated prior to the meeting and highlighted the following issues relating to the Joint Waste Private Finance Initiative for the period April 2022 to March 2023:

·       Resources

·       Governance/Strategic Meetings

·       Contract Delivery

·       Legal

·       Financial

·       Communications

·       Joint Working and BDR Support

With regard to contract delivery, it was noted that the two primary monitoring metrics for the contract are recycling performance and diversion from landfill. The recycling performance contractual target had been set at 17.5% (default-termination trigger below 10.5%) and diversion of waste from landfill of more than 96.64% for 2022/23. 2022/23 the facility at Bolton Road achieved a recycling rate of 14.47%, which represented a decrease of 0.49% on the 2021/22 rate. This recycling rate included all material presented to the market for recycling from the BDR waste treatment contract. In the same year, the facility achieved 99.13% diversion from landfill, an increase of 1.04% on the previous year.

Members considered the proportion of waste delivered from April 2022 to March 2023 and the variance between the initial forecast and the final year end forecasted Unitary Charge amount invoiced, which totalled 207,740 tonnes and represented a decrease of 4.68% on the previous year. This was attributed to the removal of COVID-19 measures, ongoing home working and the cost of living crisis.

It was reported that a total of 17 complaints were received during 2022-23, which represented a 22.7% decrease from the previous year. Members noted that the new fly management system was proving to be highly effective with fly numbers regularly at a third of those reported in 2020/21.

Operational Management Budget expenditure in 2022/23 was underspent by £49,742 and it was reported that most of the savings came from the prudent use of external consultants. It had previously been anticipated that such knowledge and expertise would be required to implement operational changes and potential variations to the contract arising from central Government’s Resource and Waste Strategy for England, but delays in the publication of this had meant that it had not been required.

The report proposed the Board approve an increase of the operational budget for 2023/24 from £287,000 to £340,000. It was explained that part of the increase had already been approved by the Board for the recruitment of additional staff, but the remaining increase was for the potential need to commence negotiations on the impact of the Resource and Waste Strategy for England, cover costs for ongoing work to implement operational changes, potential variations to contracts and resolution of any potential disputes, support of BDR councils over all aspects of the HWRC contract and supporting individual/joint Councils work towards any individual impacts emerging from the Resource and Waste Strategy.

It was noted that the forecasted Unitary Charge for the 2022/23 financial year had totalled £25,582,890.47 and that the BDR Partnership received Waste Infrastructure Credits from DEFRA to the value of £5,962,016.00 in 2022/23.

In receiving the report, Members sought reassurances in respect of the methane release incidents and the environmental impact associated with that and what likelihood there was of future incidents. Officers confirmed that the release occurred as part of the safety mechanism built into the system, but the releases had been within the tolerances as part of the safety mechanism and had been reported to the Environment Agency. This had not been regarded as a major incident and had not required reporting under RIDDOR.

Members thanked officers for the report and wished for their thanks to be conveyed to all officers involved in supporting the partnership.

Resolved:-

1.   That the report be noted.

2.   That approval be given to the operational budget of £340,000 for 2023/24 financial year.