The Darlington Council Cabinet is scheduled to meet to discuss a procurement plan update, and the Tees Valley Energy Recovery Facility. The meeting will also consider membership changes to other bodies to which the Cabinet appoints.

Tees Valley Energy Recovery Facility (TVERF)

The Cabinet is scheduled to discuss the Tees Valley Energy Recovery Facility (TVERF). The five Tees Valley authorities, Durham County Council and Newcastle City Council are collaborating to procure a contractor to design, build, operate and finance a new Energy Recovery Facility (ERF) in the Tees Valley.

A report is to be presented to the cabinet to seek supplementary approvals and delegations to support previous cabinet decisions on the project.

The report states that the Cabinet has previously approved:

• Progressing with the project and the creation of a Special Purpose Vehicle (SPV), which will be a limited company owned by all seven councils.
• Entering into the Shareholders Agreement and the Waste Supply and Support Agreement with the SPV.
• The SPV entering into contract with the preferred bidder, Viridor.
• The SPV entering into a 50-year lease with South Tees Development Corporation (Teesworks).
• Delegated authority to Group Director of Services, in consultation with Councillor Libby McCollom, Cabinet Member for Local Services, to enter into two guarantees: the first for the SPV, the second to underwrite the SPV's obligations under the 50-year lease for the site.
• Delegated authority was also approved to finalise and agree the business plan for the SPV and agree an equalisation agreement between the Tees Valley Authorities for the transfer and bulk transportation of material to the TVERF.

The Cabinet will be asked to approve the following appointments to the SPV:

• The Assistant Director of Environment and Community Safety as Darlington Borough Council's Director on the Board of the SPV.
• The Executive Director of Environment, Highways & Community Services as the Shareholder Representative.

The Cabinet will also be asked to approve the following authorisations in relation to the SPV:

• Authorise the Shareholder Representative and their alternate to make decisions under the Shareholder Agreement, the articles of association, including the making of shareholder resolutions on behalf of the council.
• Endorse the council being a shareholder, approve and adopt the Articles of Association and the council subscribing for shares in the SPV.
• Delegate authority to the Assistant Director of Environmental Services and Community Safety in consultation with the Executive Director of Environment, Highways & Community Services, Chief Finance Officer and Councillor Libby McCollom, Cabinet Member for Local Services to enter into all other necessary agreements or legal documents on behalf of the council or the SPV.

The report notes that external solicitors have advised that an ancillary suite of documents and agreements are to be approved to compliment the governance of the contract and its future monitoring and management.

The Cabinet will be asked to delegate authority to the Assistant Director of Environmental Services and Community Safety in consultation with the Executive Director of Environment, Highways & Community Services and Councillor Libby McCollom, Cabinet Member for Local Services to enter the council into the following agreements:

• The Shareholder Agreement
• The Second Inter Authority Agreement

The Cabinet will also be asked to delegate authority to the Assistant Director of Law and Governance to sign the Local Government Contracts Act (LGCA) Certificate.

Finally, the Cabinet will be asked to delegate authority to the Assistant Director of Environmental Services and Community Safety in consultation with the Executive Director of Environment, Highways & Community Services and Councillor Libby McCollom, Cabinet Member for Local Services to enter into the following agreements on behalf of the SPV:

• Shareholders Agreement and associated documents
• Service Level Agreement
• Secondment Agreement
• Council Guarantee of the Project Agreement
• Novation of the Option Agreement
• Side deed of the estate owner
• Environmental Deed
• The Lease and Lease Guarantee and associated documents
• Waste Supply and Support Agreement

Procurement Plan Update

The Cabinet is scheduled to receive an update on the council's procurement plan.

The report states that the Contract Procedure Rules require the Cabinet to approve the designation of contracts as strategic and non-strategic. For contracts designated as strategic, the final contract award decision will be approved by the Procurement Board and reported to the Cabinet. For contracts designated as non-strategic, the decision will be delegated to the relevant Directorate and detailed in the decision record.

The Cabinet will be asked to approve the assessment of strategic and non-strategic contracts as presented in Appendix 1 of the Procurement Plan Update report, and to note the contents of the report in respect of the update of strategic procurements, Procurement Board waiver decisions, and Social Value.

The report also includes updates on strategic procurement activity, including the Town Centre Development Project, for which a contract was awarded to City Heart Limited, and the Warm Homes SHDF Works, for which the procurement exercise has been abandoned due to a lack of competitive bids.

The report details the circumstances and the reasons why the Procurement Board waived contract procedure rules between April 2025 and August 2025, as detailed in Appendix 3 of the Procurement Plan Update report.

The report also provides details of the social value achieved in current projects, including the Framework Agreement for Joint Venture Residential Development with Darlington Borough Council, and the Refurbishment of 156 Northgate.