Minutes:
Richard Dobbs (Assistant Director (Streetscape), North Warwickshire Borough Council) presented a verbal report on the construction and commissioning of a new MRF in collaboration with local authorities across the region, including Coventry City Council, North Warwickshire Borough Council, Nuneaton and Bedworth Borough Council, Rugby Borough Council, Solihull Metropolitan Borough Council and Walsall Council.
Richard Dobbs advised that approximately 100,000 tonnes of recyclables were collected each year which required processing. He added that authorities had a legal obligation to collect this material and that identifying appropriate outlets for processing was a widespread challenge. He commented that the challenges faced by local authorities included uncertainty of contracts with existing MRF providers, escalating costs, and increased gate fees resulting from uncertainties in the international recycling market. As an outcome, it was determined that a collective response by local authorities would provide certainty and cost-effectiveness.
Richard Dobbs relayed that the Business Case for the MRF had been completed and that agreement from the member authorities would be sought. He advised that Stratford-on-Avon District Council had also expressed an interest in joining the partnership.
Richard Dobbs reported that the outlook for the project was positive. The proposed MRF would have a capacity of 125,000 tonnes with scope to increase depending upon future demand. He advised that the construction cost was estimated to be £35 million and that the facility was expected to provide an effective service for a period of 20 to 25 years. He stated that the current timescale projected an operational date of 2022 – 2023 for the facility.
Richard Dobbs reported that consideration had been given to the potential to accommodate additional authorities into the agreement, and to expand the operation to receive commercial waste, increasing revenue for the partnership. He advised that a Joint Working Agreement (JWA) was expected to be signed by participating authorities by mid-October 2019. Upon completion of the agreement, final planning and procurement work would be undertaken.
Richard Dobbs reported that an asset company would be formed which would be wholly owned by the local authority partners. The shareholdings of individual authorities would be determined by their respective levels of investment. He advised that the company board would be comprised of officers from each participating authority.
Signing of the JWA represented a commitment on the part of each authority to contribute funds towards the project and enter into a collaborative working arrangement for the duration of the facility’s operation. However, Richard Dobbs stated there would be an opportunity to suspend the scheme and reassess should projected gate fees be significantly exceeded.
Richard Dobbs summarised the potential benefits of the scheme:
· A lower gate fee;
· Increased certainty;
· Increased income opportunities;
· A return on capital investment and dividend to partner authorities;
· Improved quality of waste products;
· Improved collaboration across the sub-region;
· Consistency of advice to residents across the sub-region in respect of materials suitable for collection and recycling.
In response to Councillor Norris, Richard Dobbs advised that the proposed MRF was expected to benefit from having the neighbouring Energy from Waste facility, specifically in disposal of contamination. He explained that the MRF would be a ‘clean’ facility, orientated to process and separate dry mixed recycling into quality separate materials.
Richard Dobbs advised that scope remained for Warwick District Council to join the partnership agreement, even though waste was separated at the point of collection within the District. He reiterated that the MRF was expected to add value to the materials processed due to the technologically advanced nature of the facility and reduction of the likelihood of contamination.
In response to Councillor Norris, Richard Dobbs advised that Brexit scenarios had been considered during planning for the MRF. He commented that most recycling occurred within the UK and that a trend towards internal markets was discernible. He added that the anticipated reduction in single use plastics was likely to alter the waste profile. He advised that some engineering apparatus for the facility would be imported from the EU, however the potential risk had been addressed during the tendering process. He added that tariffs under World Trade Organisation rules were known and would be considered during procurement decision-making if necessary; the cost of steel had been factored in.
Councillor Kondakor emphasised the importance of aspiring to reduce overall levels of waste. Richard Dobbs advised that the viability of the initiative did not depend upon an increase in the amount of waste collected. He added that the additional capacity of the proposed MRF could be utilised to accept commercial waste and thus improve the profitability of the enterprise.
Councillor Shenton praised the initiative and highlighted the prevalence of existing MRFs coming towards the end of their anticipated life-spans. Richard Dobbs voiced his concern that, should the availability of an MRF be problematic in the future, authorities could be obliged to incinerate recyclable waste without this project.
In response to Councillor Fradgley, Richard Dobbs advised that a thriving market existed for waste resources. He reiterated that the proposed MRF would produce high-quality resource and ensure a good price in the marketplace.
Richard Dobbs indicated that a formal letter would be sent to the Waste Management and Partnerships Group Manager at Warwickshire County Council following signing of the JWA to register the combined authorities’ intention to work collectively for the prescribed period.
Resolved
That the Waste Partnership is supportive of the initiative.