Agenda item

Contracts Update

Report attached

Minutes:

The JEC received a report advising them of the latest position regarding the Residual Waste Treatment Contract, all other ancillary waste joint contracts and activities managed by the South Tyne and Wear Waste Management Partnership (STWWMP).

 

Section 2 gave the JEC the background position on all contracts and procurements. Committee should note that both HWRC contracts are due to expire at the end of March 2023, but all partner authorities have agreed with SUEZ to make use of the full extensions periods available meaning both contracts are now due to expire in March 2026.

 

Section 3 gave the JEC details on the Residual Waste Treatment Contract. Committee should note paragraphs 3.1 & 3.2 gave details on the proposed acquisition of SUEZ by VEOLIA. SUEZ have now bought back the business which was completed in December 2022.

 

Appendix A highlighted the contract performance for the period April to December 2022. Both contractual recycling and recovery performance continue to operate above target.

 

Paragraphs 3.5 to 3.10 gave details of the plant and turbine availability and information on lines 4 and 5 as well as compliance issues.

 

The JEC noted paragraphs 3.11 to 3.16 refer to the Waste Transfer Stations and that Middlefields was closed for 6 weeks so the floor in Shed B could be replaced. During this period vehicles were diverted to contingency sites in the partnership area as well as North Tyneside Waste Transfer station. Discussions are ongoing with SUEZ in terms of tipping away fees for this site. A report of an odour from Jack Crawford House was received in November from a member of staff from Sunderland City Council. SUEZ investigated and responded promptly confirming the odour suppression system and the automatic fast action doors were all functioning without any issues.

 

Paragraphs 3.17 to 3.19 discuss the Joint Insurance cost reviews however no progress has been made as we are waiting for South Tyne and Wear Energy Recovery Ltd to respond to us.

 

The JEC should note that paragraph 3.20 gave confirmation that the 2021/22 reconciliation review exercise has now been completed. As expected the Authorities have all received an income which offset any gate fee charges due to the rise in energy prices and our income sharing agreement on the electricity generated by the EfW for this period.

 

Under targeted recruitment and training, SUEZ have recruited Stephen Atkinson as Contract Manager to lead on our contracts. The recruitment process is ongoing for the replacement of Site Manager at Jack Crawford House WTS and Campground WTS as James Nesbitt is replacing Stephen Atkinson at their Byker facility.

 

Paragraphs 3.23 to 3.26 gave details of Community Education and Engagement recent events and activities which will be included in the newsletter circulated to many organisations including local community groups, schools, third sector organisations and this committee.

 

Section 4 gave details of the Materials Recovery Facility or MRF contracts.

 

Table A at Appendix B provide the latest performance for blue bin recycling from April to December 2022.

 

The JEC will note that paragraph 4.1 states that comingled recycling tonnages have fallen when compared to the same period last year but are still higher than pre pandemic levels. Furthermore, separately collected paper tonnages continue to drop significantly and now at their lowest level since 2014.

 

Table B highlights the MRF recycling and recovery rates since Quarter 1 of 2020/21. Contamination levels have generally remained at consistent levels in each partner authority since quarter 1 of this financial year.

 

In terms of communication, paragraphs 4.7 to 4.9 give information on communications to residents generally and specifically in Sunderland.

 

Paragraphs 4.9 and 4.10 gave the JEC detail on the payment mechanisms in place and that commodity prices can impact on monthly payment amounts. These commodity prices have dropped recently and therefore this has impacted on the costs for each Council although annual costs remain within budget levels.

 

Section 5 gives details of the Household Waste and Recycling Centre contracts including recycling performance at the sites shown in Appendix C and that performance is currently exceeding annual targets.

 

Paragraph 5.3 states that all booking systems continue to work well and positive feedback is still being received on these systems.

 

Section 6 gave the detail on the Green Waste Composting Contracts and that a reminder that kerbside collections of garden waste will resume this Spring.

 

Paragraphs 7.1 & 7.2 gave details on the Waste Electrical and Electronic Equipment Contract and applications for external funding through Hubbub and Material focus.

 

RESOLVED – That the JEC noted the contents of the report

Supporting documents: