Chief Officer for Highways, Infrastructure Development and Waste - Meg Booth
|Summary of Matter or Issue Requiring Decision:|
Decision to agree to a financial contribution of £3.3million from capital receipts to fund the design and construction of the Brynsworthy Waste, Transfer station, Barnstaple.
At its meeting on 12th July 2017 Cabinet agreed to the development of a Waste Transfer Station at Brynsworthy, Barnstaple, (Minute *34) after consideration of report HCW/17/59. Cabinet also agreed, subject to the outcome of the procurement exercise, to increase the financial approval for the project to £4.4 million. Delegated approval was given to the Acting Chief Officer (HIDW) in consultation with the County Treasurer and the Cabinet Member for Infrastructure Development & Waste and the Cabinet Member for Resources and Asset Management to agree a financial contribution of up to £4m towards the capital cost of the facility.
The outcome of the procurement process is now known. Consultations have been undertaken as per the Cabinet Minute and the decision taken is to agree to a financial contribution of £3.3 million.
|Summary of Reason(s) for Decision Taken:|
A procurement process has been undertaken whereby the market were asked to design, build and operate the Brynsworthy Waste Transfer Station to manage residual waste in the North Devon and Torridge areas. In addition the service provided also has to provide a waste treatment solution for a 10 year term.
Competitive bids were received and evaluated on the basis that the County Council would be funding the capital cost of the transfer station up to £4 million. However tenderers were also asked to submit a price for them to finance the capital cost such that a comparison could be made. This comparison indicated an increase of approximately £1.1 million should the tenderer be asked to fund the capital cost. Under the new contract the Authority’s revenue budget will have to be increased by approximately £265k per annum, if the Authority finances the capital cost of developing the waste transfer facility.
In the event that the contractor is required to finance the construction of the waste transfer facility, the revenue budget will have to be increased by £680k per annum or a further $415k per annum to cover the contractor’s capital financial costs. Hence it is both more cost effective for the County Council to fund the facility direct as well as relieving pressure on the revenue budget.
|Summary of Alternatives or Options considered and rejected:|
A previous procurement exercise was undertaken in the North Devon and Torridge areas in 2014 without the inclusion of a waste transfer station. Bids that were received were unaffordable and there was a clear need to open up the market in the area.
Viridor terminated the waste disposal contract earlier this year with a new waste service provider needing to be in place by 11th February 2019. Consequently a procurement exercise has been undertaken to find a new service provider with the County Council as Waste Disposal Authority having a statutory duty to deliver a new service.
|Details of any conflict of interest and dispensation granted to the Officer taking the decision or by any Member of the Council in delegating responsibility for any specific express delegation:|
|Contact for enquiries/further information:||Wendy Barratt, County Waste Manager, firstname.lastname@example.org, 01392 383000|
|Decision Date:||17 November 2017|
A copy of this decision and any supporting documentation considered by the Officer taking this decision may also be made available or inspection by the public at the Council’s Offices or posted upon payment of any copying and postage charges. Any member of the public wishing to take up either of these options is asked to please ring 01392 382888 or email: email@example.com