Issue - meetings

That it be recommended to Cabinet to:

(a)       Approve the award of Preferred Bidder status to Wheelabrator Technologies Inc (WTI), on the following basis:

• That following a rigorous dialogue and negotiation with WTI, the Call for Final Tender (CFT) bid submitted by WTI represents value for money for the partnership;
• Following detailed financial, legal and technical evaluation of WTI’s CFT bid, the partnership is satisfied with the risk balance proposed with the contract (‘Project Agreement’)

(b)       Grant authority to the North Wales Residual Waste Joint Committee to take all necessary steps to take the process forward with WTI from Preferred Bidder through to Financial Close, and award a contract.

The Chief Executive presented the report to recommend the appointment of the Preferred Bidder, Wheelabrator Technologies Inc (WTI) and to set out the stages leading to financial close and contract award.  During the presentation, he outlined areas on the tender evaluation process, the key issues for consideration and information on partnership management.

The Advisor of Local Partnerships UK spoke about the intensive negotiations and close working with WTI and the Welsh Government which had led to the potential for securing of a contract with an exceptionally positive outcome for the Council.

In response to a query on air quality monitoring, Councillor Cindy Hinds was told that the Joint Committee would determine appropriate levels and frequency.

Councillor Ian Dunbar raised concerns about capacity to cope with any increase in waste generated over the term of the contract if more houses were built.  The Project Director referred to elements of risk allocation and penalty clauses which were built into the contract.  Mr. John Bruce of Pinsent Masons explained that safeguards had been included in the contract so that risks were apportioned to the party best placed to manage them.  He went on to clarify areas of responsibility within the terms of the contract.

An initial modelling exercise had assessed growth levels, waste generation and recycling percentages and determined that the guaranteed minimum level of tonnes was deliverable by the overall partnership.

The recommendations in the report were proposed and seconded.  On being put to the vote, these were carried with ten votes for and two against.

RESOLVED:

That it be recommended to Cabinet to:

(a)       Approve the award of Preferred Bidder status to Wheelabrator Technologies Inc (WTI), on the following basis:

• That following a rigorous dialogue and negotiation with WTI, the Call for Final Tender (CFT) bid submitted by WTI represents value for money for the partnership;
• Following detailed financial, legal and technical evaluation of WTI’s CFT bid, the partnership is satisfied with the risk balance proposed with the contract (‘Project Agreement’)

(b)       Grant authority to the North Wales Residual Waste Joint Committee to take all necessary steps to take the process forward with WTI from Preferred Bidder through to Financial Close, and award a contract.