Agenda item

1.         The Waste Contract be varied to reflect the changes necessary to deliver our Waste Strategy including the Eco Park, subject to relevant conditions being met (as described in paragraphs 23 and 24 of the report submitted).

2.         The Council enter into a Direct Agreement with SITA Holdings Ltd for the purpose of the Waste Contract and provides a Local Government (Contracts) Act Certificate in relation to the Direct Agreement.

3.         The Strategic Director (Environment and Infrastructure) be authorised to agree any subsequent changes to the proposed variation to the Waste Contract to deliver the Waste Strategy including the Eco Park, in consultation with the Leader and the Cabinet Member for Transport, Highways and the Environment, and advised by the Head of Legal and Democratic Services and the Chief Finance Officer.

Reason for decisions

To provide proper authority to deliver the Waste Strategy, including the Eco Park which represents a corporate priority for the Council, enter into contractual commitments and provide assurance to contractual and funding partners to the Council.

[The decisions on this item can be called in by the Environment and Transport Select Committee]

The County Council, along with all Surrey waste authorities, had adopted a Joint Municipal Waste Management Strategy. The Strategy sets out a plan for managing household waste in Surrey until 2026, with a series of ambitious targets for Surrey’s local authorities relating to reducing household waste, increasing recycling and diverting household waste from landfill. As part of the delivery of the strategy, and following extensive consultation, planning and waste site permissions had been granted for an Eco Park at Charlton Lane, Shepperton.

The Cabinet, having been updated on significant developments in the approach to waste and having previously been advised of the current status of the Eco Park and grant support from DEFRA to the waste contract, had agreed technology changes at its previous meeting on 25 June 2013. Council officers had also been instructed to continue to progress work to vary the Waste Contract between the Council and SITA Surrey to reflect the changes necessary to deliver the proposed waste solutions.

An assessment of the financial, legal, procurement and affordability aspects of the options supported an amendment to the Waste Contract with SITA Surrey to deliver the Waste Strategy including the Eco Park. Cabinet Members considered the value for money presented by the options, the points raised during public question time and heard representations from Mr Richard Walsh (Laleham and Shepperton) regarding value for money, pollution concerns and requesting that the matter be given further consideration. During the discussion on this item, the following points were made:

·        The options before the Cabinet were felt to be full and fair. An enormous amount of work had been put into developing Waste Strategy proposals, including the employment of expert advice and consultation with thousands of households.

·        Cabinet Members confirmed that the evidence provided, including the detailed financial information contained in the confidential annex circulated with Part 2 of the agenda, supported Option 1 as affordable and the best value for money for Surrey and UK taxpayers.

·        The evidence showed Options 2, 3 and 4 to terminate the Waste Contract were less affordable, open to increased risk from changing market conditions or would not meet reductions in the amount to be sent to landfill leaving the Council risking an increasing landfill tax burden on Surrey residents.  

·        Option 1, including the delivery of an Eco Park, would provide multiple benefits including enabling 45,000 tonnes to be diverted from landfill, reducing carbon emissions by 20,000 tonnes and would generate power for 8,000 homes in the process.

·        Surrey had taken enormous strides in reducing waste and had outperformed many authorities in this area. The Council took this duty seriously and officers would continue to examine ways of reducing both the amount of waste created and the amount sent to landfill. This would include examining markets for materials that might otherwise end up in landfill. 

·        The technological aspects of the proposals had been considered at the previous meeting. The Council had performed the necessary due diligence in relation to the environmental and safety aspects of the waste infrastructure and would continue to do so. Work had already taken place in securing the relevant planning and waste permissions and this would continue with any revised applications. The Council would also continue to look to DEFRA, the Environment Agency and other government agencies and regulators for the most rigorous safety assessments.

·        Cabinet Members noted the conditions which had been set out in paragraphs 23 and 24 of the report and would need to be satisfied before the final commitment to the contract and the construction of the Eco Park. These included confirmation of financial, legal and contractual acceptability, variation to the existing planning permission, the fulfillment of outstanding conditions and amendment to the environmental permit.

·        Cabinet Members were assured of the worldwide reputation of the Council’s contractual partner and the quality of the parent company guarantee provided.

·        It was noted that there were no equalities implications arising from the proposed variation of the Waste Contract. All planning and safety requirements for infrastructure would be complied with in full, including risk assessments and evacuation plans as necessary.

The Leader noted that council officers would need to ensure that any changes to the contract did not affect the economic balance between the Council and SITA, including avoiding the Council taking on any new risk. The financial assessment from the S151 Finance Officer had been provided and this analysis would need to be updated following the completion of negotiations. Officers would also continue to work closely with the Department for Environment, Farming and Rural Affairs.

RESOLVED that:

1.         The Waste Contract be varied to reflect the changes necessary to deliver our Waste Strategy including the Eco Park, subject to relevant conditions being met (as described in paragraphs 23 and 24 of the report submitted).

2.         The Council enter into a Direct Agreement with SITA Holdings Ltd for the purpose of the Waste Contract and provides a Local Government (Contracts) Act Certificate in relation to the Direct Agreement.

3.         The Strategic Director (Environment and Infrastructure) be authorised to agree any subsequent changes to the proposed variation to the Waste Contract to deliver the Waste Strategy including the Eco Park, in consultation with the Leader and the Cabinet Member for Transport, Highways and the Environment, and advised by the Head of Legal and Democratic Services and the Chief Finance Officer.

Reason for decisions

To provide proper authority to deliver the Waste Strategy, including the Eco Park which represents a corporate priority for the Council, enter into contractual commitments and provide assurance to contractual and funding partners to the Council.