Decision details

Existing Waste Collection & Street Cleaning Contract - Approval of Deed of Variation 3

Decision Maker: Cabinet Member for Public Realm

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

The Council’s Waste, Recycling and Street Cleansing Contract is currently carried out by SERCO and is due to expire at the end of January 2023. The contract has been in place since June 2008 and has been extended by way of two Deeds of Variation in 2014 and 2020. A further Deed of Variation is proposed to regularise some outstanding commercial matters of the existing contract and to thereby mitigate a number of future potential risks to the Council.

Decision:

1.         Appendix 1 is not for publication on the basis that it contains information relating to the financial or business affairs of a person under paragraph 3 of Schedule 12 A of the Local Government Act 1972 as amended. Appendix 2 is not for publication on the basis that it contains information in respect of which a claim to legal professional privilege could be maintained in legal proceedings under paragraph 4 of Schedule 12A of the Local Government Act 1972 as amended.

 

2.         The Cabinet Member for Public Realm endorses and approves the proposed Deed of Variation 3 at a cost of £1,264,000 (£485,000 to be funded from existing budgets and £779,000 from previously approved drawdowns from the Corporate Demands and Pressures Reserve set aside for the waste contract procurement and collection prototypes).

 

3.      Approve the acquisition of a number of existing vehicles from the current contractor at a value estimated at £100,000 from existing approved capital budgets.

 

Reasons for the decision:

·           to ensure that any residual issues in the current contract are resolved and agreed in order to preserve the continuation of existing services and to minimise the risk of potential disruption

 

·           financial resources have been set aside to fund the impacts of the agreed variations

 

·           it will reduce and/or fully mitigate against potential future risks and litigation after the expiry of the current contract that was extended to the end of January 2023

 

·           it will support the efficient transition and mobilisation to the new contract from February 2023.   

 

Alternative options considered:

The officers of the Council considered all commercial issues carefully with due regard to the need to maintain services and reduce potential contractual risks. It was considered the best option to secure this Deed of Variation for the relatively short remaining duration of the contract to January 2023.

Publication date: 30/06/2022

Date of decision: 29/06/2022

Effective from: 05/07/2022

Accompanying Documents: