Agenda item

Appendix A – Summary of Preferred Bidders Solution

Appendix C – Comparison of Preferred Bidders Solution with Required Objectives

Appendix E – Governance Flowchart

The Council had before it a report by the Director of Resources which advised of the outcome of the OJEU procurement exercise for the proposed Energy from Waste Facility at East Tullos in respect of the NESS Energy Project, and sought authority to proceed to contract award with the preferred bidder, enter into the associated Stage 3 Inter Authority Agreement (IAA3) with Aberdeenshire Council and Moray Council and matters ancillary thereto, and provided an update on the Torry Heat Network.

The report recommended:-

that the Council -

(a)          approve the award of the Ness Energy Project Residual Waste Treatment contract (the “Project Agreement”) for the implementation of the Project with the preferred bidder in terms of the draft Project Agreement issued to the bidder immediately prior to submission of final tenders together with such minor amendments as the Project Board may agree (1) are necessary to contractualise the preferred bidder’s method statements; (2) or are otherwise acceptable to the Project Board and are permitted under procurement law;

(b)          delegate authority to its representative on the Project Board to approve or reject the recommendations put to the Project Board associated with recommendations (a) and (c) subject to the execution of the Inter-Authority Agreement by Aberdeenshire Council, Moray Council and Aberdeen City Council as per recommendation (f) below;

(c)          approve that pursuant to section 56 of the Local Government etc. (Scotland) Act 1973, the Council shall discharge the functions of Aberdeenshire Council and Moray Council as a Waste Disposal Authority (WDA) within the meaning of the Environmental Protection Act 1990 in so far as they relate to the Project and the Facility and in accordance with the Project Agreement and the Inter Authority Agreement;

(d)          note that the Council’s share of the expected capital investment related to the Project Agreement as stated in the Principles of the Stage 3 Inter Authority Agreement (“IAA3 Principles”) included at Appendix D can be met from the budget for NHCP810K - Energy from Waste (EfW) Construction & Torry Heat Network within the Non-Housing Capital programme, and approve the total estimated capital expenditure being the sum identified as the investment subtotal for Aberdeen City in Appendix G;

(e)          note the EfW Cost Model included in Appendix G and instruct the Chief Officer - Finance to incorporate the impact of the operating cost and the revenue share sub-totals into the Council’s future revenue budget planning;

(f)           delegate authority to its representative on the Project Board to approve the terms of an Inter-Authority Agreement based on the IAA3 Principles included at Appendix D;

(g)          appoint for the Works Period, the Chief Officer - Capital as the Council’s representative on the Project Board; and in his absence, appoint the Director of Resources, or such other officer as the Director of Resources may nominate from time to time, to act as the Council’s alternate representative on the Project Board during the Works Period;

(h)          appoint for the Services Period, the Chief Officer - Operations and Protective Services as the Council’s representative on the Project Board; and in his absence, appoint the Chief Operating Officer, or such other officer as the Chief Operating Officer may nominate from time to time, to act as the Council’s alternate representative on the Project Board during the Services Period;

(i)            delegate authority to the officer from time to time acting in the capacity of the Council’s representative or alternate representative on the Project Board, to take decisions, issue the instructions, and undertake the functions stated in the column headed “Project Board” in Annex 1 (Governance Matrix) of the IAA3 Principles included at Appendix D of the report;

(j)            delegate authority to the Chief Officer - Capital for the duration of the Works Period, to take the decisions, issue the instructions, and undertake the functions stated in the column headed “Lead Authority Chief Officer” in Annex 1 (Governance Matrix) of the Principles of the IAA3 included at Appendix D to the report and to sub delegate them as permitted by the Council’s Powers Delegated to Officers, as time to time in force, under its Scheme of Governance;

(k)          delegate authority to the Chief Officer - Operations and Protective Services for the duration of the Services Period, to take the decisions, issue the instructions, and undertake the functions stated in the column headed “Lead Authority Chief Officer” in Annex 1 (Governance Matrix) of the IAA3 Principles included at Appendix D to the report and to sub delegate them as permitted by the Council’s Powers Delegated to Officers, as time to time in force, under its Scheme of Governance;

(l)            approve the continued role of the Joint Members Energy from Waste Engagement Group;

(m)        delegate authority to the Chief Officer - Capital, following consultation with the Head of Commercial and Procurement Services and the Chief Officer - Governance to (a) procure the services of an external legal adviser to support the Management Team throughout the Works Period; (b) delegate authority to the Head of Commercial and Procurement Services to conclude a contract with the chosen supplier; and (c) note that the total estimated expenditure for the external legal adviser is included in recommendation (d);

(n)          instruct the Chief Officer - Operations and Protective Services to collaborate with the relevant officer(s) in Aberdeenshire Council and Moray Council to identify a sustainable solution which will allow items that do not meet the waste acceptance protocol to be either diverted for reuse/recycling or treated in order to be accepted at the Facility;

(o)          instruct the Chief Officer - Capital, following consultation with the Chief Officer - Finance and the Head of Commercial and Procurement Services, to negotiate and conclude Heads of Terms for the heat offtake for the Torry Heat Network with the preferred bidder for the Project Agreement and to report back to the next appropriate committee outlining the planned phased delivery of the Torry Heat Network; and

(p)          note that a similar paper is being put to Moray Council’s Full Council on 4 March 2019 and Aberdeenshire Council’s Full Council on 7 March 2019 and that implementation of all the recommendations above will be subject to similar approval by Aberdeenshire Council and Moray Council.

Members asked a number of questions of officers and the Project Director, and agreed that further questions needed to be asked with the press and public excluded.

The Council resolved:-

to note the report meantime and agree that the matter be determined with the press and public excluded (Article 16 of this minute refers).