Purpose

That the cabinet member approves the
Variation

Decision

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.