The Cabinet Member for Environment and Sustainability presented the report of the Strategic Director for Regeneration and Environment, which advised that the core period of the current Waste and Environmental Services contract was due to end in March 2017. Under the scope of the original OJEU notice, it was possible to extend the contract to March 2027 and the report presented a formal offer from Biffa Waste Services for agreeing to an extension now, in return for immediate and future discounts on the core contract price. The Cabinet was requested to review the officers’ analysis of the Biffa proposal and determine whether it was in the Council’s best interest to accept the offer. It was vital that a contract extension should demonstrate value for money and the Strategic Director was requested to enter into robust negotiations with Biffa and to report back upon the outcome of those negotiations.

Appendices 1, 2 and 3 of the Director’s report contained sensitive commercial information related to the management accounts and future business of Biffa PLC. In order to protect the commercial competitiveness of Biffa’s position in the waste management market and to ensure the Council and Biffa were not disadvantaged in future procurement opportunities, this information was classified as Exempt Information from public scrutiny, as set out in the relevant paragraph/s of Schedule 12A of the Local Government Act 1972 (see minute 56 post).

Resolved –

(1)  That the outcome of the Value for Money review detailed in Section 4 of the report now submitted and the continued success of the Waste and Environmental Streetscene Service Contract in reducing costs and improving performance, be noted.

(2)  That the Strategic Director for Regeneration and Environment be authorised to enter into negotiations with Biffa to secure minimum revenue savings as outlined in the report in return for a long-term contract extension to 2027.

(3)  That the Strategic Director for Regeneration and Environment be instructed to report the final outcome of the contract extension negotiations to Cabinet for approval no later than October 2014.