Purpose

Sheffield City Council (SCC or the Council)
entered into a Private Finance
Initiative (PFI) with Amey Hallam Highways Limited (AHHL),
subcontracted to Amey LG (Amey) relating to the rehabilitation,
maintenance, management and operation of the highway assets in the
Sheffield area dated 31st July 2012, which is due to expire in 2037
(the PFI Contract). As part of a Contract Refresh exercise,
recommendations were made to the Waste and Street Scene Policy
Committee to enable the parties to negotiate and agree a new asset
management strategy, provisions to implement low value changes and
changes to the termination process (the Committee Report) which
were approved at the extraordinary Waste and Street Scene Policy
Committee on 20th December 2024. This report will summarise the
negotiations undertaken between the parties since the committee
meeting and the final agreed position in the Deed of Variation.
 
The report will cover the following
points:
1. Asset Management Strategy: summary of
negotiations made to agree and incorporate a new asset management
strategy and the changes to be made to the PFI contract.
2. Low Value Change: summary of negotiations
made to agree a new mechanism to deal with low value changes and
the changes required to the PFI contract.
3. Termination process: summary of
negotiations made and final position in relation to the termination
process and the changes required to the PFI contract.

Content

Following the Waste & Street Scene
Committee decision of 20th December 2024 and in accordance with the
delegations thereunder, it is recommended that the Executive
Director of Neighbourhood Services, having consulted the General
Counsel, approve the execution of the Deed of Variation following
the negotiation and finalisation of the Deed of Variation (as set
out below) and further to DfT Approval and Majority Lender
consent.