Decision details

That the cabinet member approves the Variation

1.  The Cabinet member for Clean Air, Streets and Waste approved a variation to the Waste PFI Contract with Veolia ES Limited (Veolia) with a total net benefit value to the council of £2.144m (over the life of the contract) to take account of the following:

·  Confirmation of changes to services for the period 2011/12 to 2032/33 that deliver savings to the council with a value of £13.649m (including alternate week collections).

·  Confirmation of changes to services for the period 2010/11 to 2014/15 at a cost to the council of £2.474m (early implementation of kerbside organics collections).

·  Confirmation of implementation of the London Living Wage for the period 2013/14 to 2032/33 for all relevant staff employed in the Waste PFI Contract at a cost to the council of £6.885m.

·  A payment by the council to Veolia with a value of £2.146m for settlement of the claim for planning consent delay compensation.

·  Resolution of other contractual matters that have been raised by Veolia and as are documented at Appendix A.

2.  That the Cabinet Member for Clean Air, Streets and Waste delegated approval to the director of environment to agree the final terms of the deed of variation/settlement agreement to be entered into with Veolia to formalise the variations noted in the report and notes that completion of the deed of variation/settlement agreement will be subject to approval of the Department of Environment, Food and Rural Affairs (DEFRA).

3.  That the Cabinet Member for Clean Air, Streets and Waste notes an amendment to the lease for the Integrated Waste Management Facility that will be dealt with under separate delegated authority to permit the operation of a separate commercial operation by Veolia for the period 2024/25 to 2032/33 in return for rental payments to the council to the value of £1.023m.

4.  That the Cabinet Member for Clean Air, Streets and Waste notes that the closure of the contract issues highlighted in this report, will allow the council to focus on the process of planning for a new Waste Management Strategy to be in place from 2026 and to begin to plan for the new service delivery arrangements that will be required for waste collection and disposal services from February 2033 to replace the current Waste PFI Contract.