Purpose

To consider approving the re-procurement of
the new MKWRP operations contract for April 2026, which will
include a contract deed of variation for electricity supply
(sleeving) from MKWRP to the Council’s estate.

Content

1.         That the
public and press be excluded from the meeting by virtue of
Paragraph 3 (Information relating to the Financial or Business
Affairs of the Authority) of Part 1 of Schedule 12A of the Local
Government Act 1972, in order that the meeting may consider exempt
Annexes A to I to the report.

2.         That the
variation of the contract for the Residual Waste Treatment Facility
as summarised in the draft
Deed of Variation (DoV) Heads of Terms (exempt Annex A) be
approved, including the following key changes:

(a)        revised
catastrophic risks and insurance provisions;

(b)       increased Parent
Company Guarantee of £10m; and

(c)        principles for
a Power Purchase Agreement (PPA) for energy supply to the Council
via a synthetic sleeving arrangement.

3.         That the
principle of the Council entering into a Power Purchase Agreement
(PPA) be approved, subject to the Director of Property and
Environment, in consultation with the Director of Law and
Governance and the Director of Finance and Resurces,
satisfactorily:

(a)        undertaking
further due diligence with regard to the financial regulation
matters set out in paragraph 9 of exempt Annex F; and

(b)       agreeing the
appropriate accounting treatment for the PPA
arrangements.

4.         That
authority be delegated to the Director of Environment and Property,
in consultation with the Director of Finance and Resources (s151),
the Director of Law of Governance (Monitoring Officer), and the
Cabinet Member for Resources and / or the Cabinet Member for Public
Realm to:
(a)        agree
non-material amendments to the proposed Deed of Variation and Heads
of Terms (exempt Annex A); and
(b)       finalise and enter into the Deed of Variation and
any other necessary formal documents to effect the agreed position.

5.         That the
principles and strike price for the synthetic electricity sleeving
supply and reconciliation be agreed (exempt Annex C), noting a
separate delegated decision (also on 19 March 2024),
to supply electricity other than
to the General Fund
and Streetlighting and with contingency processes for the sleeved
arrangement.

6.         That
authority be delegated to the Director Environment and Property, in
consultation with the Director of Finance and Resources (s151), the
Director Law of Governance (Monitoring Officer), and the Cabinet
Member for Resources and / or the Cabinet Member for Public Realm
to:

(a)        engage with
the market to ensure that the MKWRP as a commercial offer is
sufficiently attractive to the market to drive the best value and
risk partition for the Authority; and

(b)       undertake and agree
a commercial model for the procurement for MKWRP within the scope
identified to maximise best value through contesting a competitive
procurement of the facility from the market incoprorating feedback
garnered from the market testing exercise.

7.         That,
subject to the completion of the required procurement governance
(including a subsequent delegated decision) and the satisfactory
completion of recommendation 1.6 (a) and (b), approval be granted to commence the procurement
for a contractor to manage the MKWRP using a competitive dialogue
procedure.

8.         That the
resource structure for the procurement, as detailed in exempt Annex
B, be noted. 

9.         That
continued work to deliver the following key outcomes for the Milton
Keynes Waste Recovery Park be endorsed:

(a)        owning the
asset outright;

(b)       ongoing and
sustained provision of £0 per tonne gate fee for the remainder of the existing
contractual term; and

(c)        contributing
towards aims of Sustainability Strategy 2019 - 2050.