Mediation of Recyclate Income
To receive an update on work undertaken to reach an agreement on the Recyclate Income.
Minutes:
The Board was provided with an update on the latest position with regard to the ongoing dispute between the re3 Councils and the PFI Contractor over the distribution of income from the sale of recyclable materials.
Since the Board’s last meeting, officers had met with the PFI Contractors, both with and without the mediator, on a number of occasions in an effort to resolve the situation. On 12 December 2012, the Contractor had put forward an improved offer for consideration. In addition to the revised offer, the Contractor had intimated that they did not have sufficient funds to compensate the re3 Councils for the lost income in one lump sum and had proposed that the repayment be made in the form of a smaller lump sum and yearly instalments over nine years.
The Board was informed that additional fees on top of those already paid would accrue following the agreement of a deal fees that would be incurred due to the need to have the agreement written into the PFI contract and then tested financially for value for money. In addition the Treasury might need to be informed of the changes made to the payment mechanism.
The Board considered and discussed the proposed deal for the split of the recyclate income, the proposed repayment terms of the debt and the matter of potential legal fees arising from finalising the agreement. It was noted that officers had started work on a risk analysis of the PFI contract.
RESOLVED that:
The Board thanked all the officers involved in the mediation process for the time and work that they had put into resolving the dispute.