Agenda item

To consider a report by Councillor David Smith, Lead Member for Public Realm (copy enclosed) regarding the progression of the formal partnership with four other North Wales Councils to jointly procure a 25 year contract for the provision of residual waste disposal facilities.  Appendix 6, 7 and 8 to this report are confidential.

RESOLVED that Cabinet –

(a)       approves the award of Preferred Bidder status to Wheelabrator Technologies Inc (WTI), on the basis that following a rigorous dialogue and negotiation with WTI, the Call for Final Tender (CFT) bid submitted by WTI represents value for money for the partnership; and that following detailed financial, legal and technical evaluation of WTI’s CFT bid, the partnership is satisfied with the risk balance proposed with the contract ‘Project Agreement’;

(b)       grants authority to the North Wales Residual Waste Joint Committee to take all necessary steps to take the process forward with WTI from Preferred Bidder through to Financial Close, and award a contract;

(c)        commit to the Partnership and the Project by adopting, along with the other 4 councils, the principles in the 2^nd Inter-Authority Agreement which reflect the key terms of the Project Agreement to be entered into by the Lead Council with the Preferred Bidder on Contract Award;

(d)       delegate authority to the Lead Chief Executive to finalise the 2^nd Inter-Authority Agreement for signing by the constituent authorities, and to circulate the finalised agreement to the Monitoring Officers of all 5 Authorities take into account the views of all constituent Authorities and to refer back to the Joint Committee for approval any material departures from the agreed principles;

(e)       agree to sign the 2^nd Inter Authority Agreement once it has been finalised in accordance with the above procedure;

(f)         approve the proposed 2013/14 revised budget it being £595,558 (as set out in Appendix 5 to the report);

(g)       approve expenditure in 2014/15 to take the procurement process to the final stage of Financial Close it being £321,066 (as set out in Appendix 5 to the report), and

(h)       for the Joint Committee members to approve the ongoing project budget requirements referred to in paragraph 3.5 of Appendix 5 to the report.

[This item was brought forward on the agenda with the consent of the Leader]

Councillor David Smith presented the report detailing the progression of a formal partnership with four other North Wales Councils to jointly procure a 25 year contract for the provision of residual waste disposal facilities.  Cabinet approval of the final preferred bidder and the second Inter Authority Agreement was sought.

The report detailed the preferred bidder selection process and outcome; the main features of the Inter Authority Agreement No. 2 covering the operation of the contract itself, and also sought approval of remaining procurement budget.  During consideration of the documentation officers clarified issues in response to members’ questions thereon, particularly regarding stages within the procurement process, recycling targets and community benefits.  Cabinet was pleased to note the improved financial offer following the withdrawal of the second bidder and noted the current business case showed the proposed solution was cheaper than the cost of the current operations.  Tribute was paid to the hard work of the officers involved within the process resulting in a cost effective, sustainable project.  For clarity three additional recommendations were made relating to budgetary requirements. 

RESOLVED that Cabinet –

(a)       approves the award of Preferred Bidder status to Wheelabrator Technologies Inc (WTI), on the basis that following a rigorous dialogue and negotiation with WTI, the Call for Final Tender (CFT) bid submitted by WTI represents value for money for the partnership; and that following detailed financial, legal and technical evaluation of WTI’s CFT bid, the partnership is satisfied with the risk balance proposed with the contract ‘Project Agreement’;

(b)       grants authority to the North Wales Residual Waste Joint Committee to take all necessary steps to take the process forward with WTI from Preferred Bidder through to Financial Close, and award a contract;

(c)        commit to the Partnership and the Project by adopting, along with the other 4 councils, the principles in the 2^nd Inter-Authority Agreement which reflect the key terms of the Project Agreement to be entered into by the Lead Council with the Preferred Bidder on Contract Award;

(d)       delegate authority to the Lead Chief Executive to finalise the 2^nd Inter-Authority Agreement for signing by the constituent authorities, and to circulate the finalised agreement to the Monitoring Officers of all 5 Authorities take into account the views of all constituent Authorities and to refer back to the Joint Committee for approval any material departures from the agreed principles;

(e)       agree to sign the 2^nd Inter Authority Agreement once it has been finalised in accordance with the above procedure;

(f)         approve the proposed 2013/14 revised budget it being £595,558 (as set out in Appendix 5 to the report);

(g)       approve expenditure in 2014/15 to take the procurement process to the final stage of Financial Close it being £321,066 (as set out in Appendix 5 to the report), and

(h)       for the Joint Committee members to approve the ongoing project budget requirements referred to in paragraph 3.5 of Appendix 5 to the report.