Revenue Sharing from the Sale of Recyclabe Materials
To provide the Management Board with an update on the sharing of revenue from the sale of recyclable materials.
Minutes:
The Board considered a report providing an update on the latest position with regard to the ongoing dispute between the re3 Councils and WRG over the distribution of income from the sale of recyclable materials and how his related to the excess profit clause.
The report included an update on progress made since the Management Board meeting on 13 December 2012, an update on the current position, a summary of outcomes arising from modelling exercises conducted by Ernst and Young and a summary of legal advice pertaining to the matter.
The Board expressed dissatisfaction with the current position.
RESOLVED that:
i The Management Board note the progress made since their last meeting on 13 December 2012
ii Officers formalise the dispute with the Contractor on the issue of Excess Profit as described in paragraph 3.40 of the Project Director’s report
iii Of the two options (A and B), set out in paragraph 3.39 of the Project Director’s report, proposed by Eversheds as representing possible ways forward Option A be endorsed as the Board’s preferred choice
iv Members endorse an approach by officers to the PFI Project Sponsors at DEFRA, as described in paragraph 3.30 of the Project Director’s report, with a view to seeking appropriate assistance in concluding the disagreement