Agenda item

To consider the report of the Director of Environment and Neighbourhoods providing an update on the progress of the Residual Waste Treatment PFI project since the last Executive Board update at the Final Tender Stage in November 2011. In addition the report requests approval to submit the Final Business Case to the Department for Environment Food and Rural Affairs (Defra), explains progress to date, and also outlines the work required to progress to financial close of the Project including the award of the contract to Veolia.

Appendices 2 and 3 to this report are designated as exempt under Access to Information Procedure Rule 10.4(3).

Further to Minute No. 122, 2^nd November 2011, the Director of Environment and Neighbourhoods submitted a report providing an update on the progress of the Residual Waste Treatment PFI project. In addition, the report sought approval to submit the Final Business Case (FBC) to the Department for Environment Food and Rural Affairs (Defra), detailed the progress made to date and also outlined the work which was required to progress to the financial close stage of the Project, including the award of the contract to Veolia.

Copies of an addendum to the submitted report, which added a further recommendation to it had been circulated to Board Members prior to the meeting for their consideration.

The submitted report noted that the current draft of the FBC was designated as exempt under Access to Information Procedure Rule 10.4(3) and was available for Executive Board Members’ consideration.

Following consideration of Appendices 2b and 3 to the submitted report, designated as exempt under Access to Information Procedure Rule 10.4(3), which was considered in private at the conclusion of the meeting, it was

RESOLVED –

(a)  That the contents of the submitted report be noted.

(b)  That the submission of the Final Business Case (FBC) to the Department for Environment Food and Rural Affairs (Defra) be approved.

(c)  That the submission to Defra of the submitted report, together with the minutes of the 20^th June 2012 Executive Board meeting, be approved.

(d)  That the financial implications for the City Council, as set out within appendix 2(a) and the exempt appendix 2(b) of the submitted report be noted, and that approval be given to the expenditure, as set out within appendix 2(a) and exempt appendix 2(b), provided that the total estimated Unitary Charge for the Contract at the date of Financial Close is less than £502,000,000, as set out within paragraph 3.6  of appendix 2(a) of the submitted report.

(e)  That the arrangements detailed at section 5.5 of the submitted report be confirmed, and (for the avoidance of doubt) authority be given to the Director of Environment and Neighbourhoods (or delegate) to exercise the delegated powers, as set out at Part 3 Section 3E of the Constitution regarding PPP/PFI and other Major Property and Infrastructure Related projects, in relation to this Project.

(f)  That the process of achieving financial close, as set out within the submitted report, be approved, including the award of the contract to Veolia ES (Leeds) Limited, which is a wholly owned subsidiary of Veolia ES Aurora Ltd., and:-

(i)  That it be noted and confirmed that the conditions of the General Disposal Consent are satisfied at the date of this report.

(ii)  That the disposal of the site at an undervalue in excess of £100,000 be approved.

(iii)  That the Director of City Development (or an officer with appropriate delegated powers) be authorised to take all action required to conclude the disposal of the site, including carrying out the actions described at paragraph  4.9 of the submitted report, which may include seeking the consent of the Secretary of State prior to disposal if the circumstances as set out at paragraph 4.9 change.

(g)  That the disposal of an area of land to the north of the site be approved, in order to be used as a temporary construction compound during the construction period at an undervalue in excess of £100,000 and that the Director of City Development (or an officer with appropriate delegated powers) be authorised to take all action required to conclude the disposal of this area of land including lease terms, site location and area.

(Under the provisions of Council Procedure Rule 16.5, Councillor Golton required it to be recorded that he abstained from voting on the decisions referred to within this minute)