Issue - meetings

To consider an extension of the contract for the delivery of waste and environmental services.

That the Portfolio Holder for Regeneration, in consultation with the Chief Operating Officer and Director of Legal Services, vary the Service Operating Contract of Ansa Environmental Services and associated agreements in accordance with the Deed of Variation attached to the report.

It was requested that Ansa Environmental Services Ltd.’s (Ansa) existing contract for the delivery of Waste and Environmental Services be varied to allow for an extension of the contract to 1 April 2031; this would enable Ansa to enter into new procurement arrangements for waste processing and deliver future benefits to the Council.

Now in its third year of trading, Ansa had delivered the contract efficiencies required by the Council whilst at the same time exceeding its performance indicators and delivering a profit from its operations. In order to deliver future benefits however there was a need for Ansa to let new waste and recycling processing contracts that would require a 10-15 year service commitment.

A key aspect of the waste strategy was to reduce disposal to landfill to zero and achieve 100% disposal to waste to energy generation, to achieve this Council was constructing its central environmental hub. Ansa now needed to procure a number of contracts to coincide with the opening of the hub to allow the treatment and disposal of waste ending landfilling and delivering savings associated with it.  At present however Ansa’s contract with the Council was due for renewal only 4 years after completion of the hub.

This time limitation on the scope of Ansa’s development would be unduly restrictive since any contracts they subsequently entered into with third parties dealing with various aspects of waste management and treatment and be too short for most companies to agree with.

The current contract was due to expire on 1 April 2021 and a 10 year extension to its existing contract was proposed in order to give to give an unelapsed period of 15 years from 1st April 2016, ending 1st April 2031, with a rolling one year extension each year thereafter, assuming Ansa  achieved the  appropriate performance standards.

RESOLVED

That approval be given for the Portfolio Holder for Regeneration, in consultation with the Chief Operating Officer and Director of Legal Services, to vary the Service Operating Contract of Ansa Environmental Services and associated agreements in accordance with the Deed of Variation attached to the report.