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RESOLVED:
 
1.   
That Cabinet approves a procurement exercise for a
new Materials Recycling Facility (“MRF”) initiating
support from legal, financial and technical advisors, including
developing the Full Business Case for the facility. 
2.   
That Cabinet approves any legal agreements that are
required to secure planning permission, approval is sought for the
same, subject to the oversight of any such agreement by the
Director of Law and Governance.
3.   
That Cabinet delegates authority to the Interim
Executive Director for Environment, Property and Growth Place, in
consultation with the Cabinet Member for Property, Infrastructure
and Waste and the Executive Director for Resources to approve the
finalised Procurement Strategy and commence the procurement
exercise once the planning application for the MRF has been
approved.
Reasons for Decisions:
 

1.   
In 2023, the Resources and Circular Economy Team
(“RCE”) had a Strategic Waste Infrastructure Plan
approved by Cabinet. This plan highlighted the lack of dry mixed
recycling (“DMR”) treatment infrastructure available
locally and noted the strain on the existing infrastructure. Since
then, the team has been working on the recommendations within that
report.

2.   
Surrey County Council’s (“SCC”)
current waste infrastructure capacity is under significant
pressure. Use of third-party sites to manage and separate
recyclable materials collected by the District and Boroughs on
SCC’s behalf has shown to be increasingly expensive and the
service has no control over costs or the separation processes
(Appendix 1).

3.   
Imminent waste legislative changes will dramatically
alter the risk profile of SCC (as the Waste Disposal Authority
(“WDA”)) and requires whole system thinking. The
changes will result in SCC’s infrastructure capacity coming
under greater pressure as will third-party Materials Recycling
Facilities (“MRF”) which will further increase
potential SCC costs. Liability for additional costs will fall to
SCC, of which SCC would have no control. SCC will need greater
control over its supply chain and associated
infrastructure.  

4.   
SCC are proposing the development of a MRF on SCC
owned land at Trumps Farm, Chertsey. An outline planning permission
application has been submitted and an Outline Business Case
(“OBC”), presented herein has been developed.
Determination is anticipated for May 2025.

5.   
The OBC outlined the key drivers for the
development, which are: 

a.   
Legislative changes in the waste sector will
dramatically alter the risk profile of SCC as the WDA. The amount
and type of recycling materials collected will both increase and
change over time.  

b.   
The need to be able to adapt and respond accordingly
to this changing legislation.? 

c.    
The need to build resilience and self-sufficiency
within SCC’s waste infrastructure network.? 

d.   
Limited infrastructure capacity within the existing
SCC network and the region as detailed in Strategic Waste
Infrastructure Plan (Cabinet April
2023)1.? 

e.   
Budgetary pressures and the need to extract greater
value for money from our services.? 

f.     
The need for whole system and frictionless working
with the District and Borough (“D&B”) Waste
Collection Authorities (“WCA”) to drive efficiencies
and improve performance.? 

g.   
Reducing the carbon impact of the service, by
managing Surrey’s dry recycling where is its generated,
rather than sending it to treatment outlets across the
country. 

6.   
Supported by pre-market engagement SCC proposes the
development of a MRF that will:

a.   
process all dry recycling SCC is currently
responsible for (c.90,000 tonnes), with the ability to take
additional districts’ material;

b.   
not require any changes to the current District and
Borough collection regimes, unless stipulated by legislative
changes;

c.    
use greater technological processes, including
Artificial Intelligence (AI) to increase the quality of material
and recycle more, as well as futureproofing the facility by giving
it greater flexibility in its operations;

d.   
likely seek a Design, Build, Finance, Operate,
(DBFO) and Collaborate/Partner delivery mechanism, to provide SCC
with the control needed to mitigate the changing waste landscape.
Interface risks will be the responsibility of the
supplier;  

e.   
reduce SCC’s revenue costs as compared to the
third-party offtake contracts.

f.     
be coterminous and available from the end date of
the existing contracts.

7.   
A full procurement strategy will be developed once
approval to go ahead with the project has been granted. This will
be supported by further market engagement including interviews with
interested parties to ensure a full understanding of what the
market can offer. Delegation is requested to approve this strategy
prior to commencing the procurement exercise.

8.   
Therefore, the recommendation to Members is to
approve the procurement exercise for a Surrey MRF, including the
development of the Full Business Case
(“FBC”).

9.   
Further, it is important for SCC, to secure planning
permission as soon as possible to inform the costs and liability
consequences to be assessed in the FBC and as such Cabinet is asked
to approve SCC entering into any legal agreement which may be
needed to secure that permission subject to oversight by the
Director of Law and Governance.

10. 
Following completion of the procurement exercise,
the Full Business Case will be required to return to Cabinet, for a
decision to progress the project further.

(The decisions on this item can be called-in by the
Communities, Environment and Highways Select Committee)