Agenda item

Report of the Director of Economic Growth and Neighbourhood Services.

The Cabinet Member with the Local Services Portfolio introduced the report of the Director of Economic Growth and Neighbourhood Services (previously circulated)  requesting that consideration be given to entering into an Inter-Authority Agreement (IAA) with Middlesbrough Borough Council, Stockton Borough Council, Hartlepool Borough Council, Redcar and Cleveland Borough Council, Durham County Council and Newcastle City Council in respect of the Tees Valley Energy Recovery Facility (ERF) project; commencing the formal procurement for the project; and extending the existing waste management contract with Stonegrave Aggregates.

The submitted report provided an update on the ERF project including the IAA; the outline planning application for the ERF at South Tees Development Corporation (STDC); the proposed use of a local Authority Special Purpose Vehicle (SPV) for the management of the Project Agreement; negotiations for the Heads of Terms Agreement for the South Tees Development Corporation (STDC); the mandatory use of the Reference Site for the development of the ERF; and the proposed contract extension discussions with Stonegrave Aggregates.

Reference was made to the main changes to the project since the previous report to Cabinet (Minute C65/Nov/19 refers), particularly the inclusion of Durham County Council and Newcastle City Council in the project, the benefit of which was that the ERF would increase from a 250,000 tonnes per annum facility to a 450,000 tonnes per annum facility, which in turn would reduce the cost of the contract through the gate fee to each authority and to the revision required to the IAA as a result of the two extra authorities joining the project.

RESOLVED - (a)  That the IAA with Middlesbrough Borough Council, Stockton Borough Council, Hartlepool Borough Council, Redcar and Cleveland Borough Council, Durham County Council and Newcastle City Council, as appended to the submitted report, be approved.

(b)  That the procurement process, as detailed in the submitted report, be approved.

(c)  That the Director of Economic Growth and Neighbourhood Services, be authorised in consultation with the Assistant Director – Resources, Assistant Director – Law and Governance and the Cabinet Member with the Local Services Portfolio, to accept minor changes to the IAA. 

(d)  That the extension of the existing waste management contract, in line with the details contained within paragraphs 28 to 30 of the Part III report, as appended to Annex 1 of the submitted report, be approved.

(e)  That the lease for the Household Waste Recycling Centre be extended to tie in with the extension to the waste management contract. 

REASONS - (a)  To enable the procurement of the Tees Valley Energy Recovery Facility.

(b)  To put in place a contingency plan for waste management in case of any delay to the delivery of the ERF and have continuity of service going forward.