Cabinet members asked to authorise termination of Amey contract

Cabinet members are being asked to authorise the termination of a contract with Amey and to give permission for replacement contracts or alternative provision.

The proposal would see Peterborough City Council and Amey end their contract by mutual consent, which covers the following areas:

  • Refuse, street cleansing and vehicle workshops
  • Parks Trees and open spaces
  • Property maintenance and property cleaning
  • Community link and home to school transport
  • Catering

The city council entered into a 23-year contract with Enterprise Managed Services in March 2011 to deliver household waste and recycling collections, street cleaning, property design and maintenance, grounds maintenance and a range of other services. The partnership transferred to Amey in 2013 when it bought Enterprise.

However, in response to unprecedented challenges within local authority markets, Cabinet is now being asked to authorise the termination of the contract and give permission for replacement contracts or alternative provisions to provide waste services in the future.

It has not yet been determined how services will be provided in the future, but it could be that these services are split up and separate providers sought for each area. Any new arrangement will allow the council more control over how services are provided and ensure that a percentage of any income generated by services is returned to the council to protect services for residents.

Councillor Gavin Elsey, cabinet member for waste and streetscene, said: “I would like to thank Amey for its commitment to providing services for the residents of Peterborough during the past five years. However, it has been clear for some time that our contract is no longer meeting either of our needs and is no longer compatible with the tough financial landscape we are operating in.

“A key driver for the proposal is the council’s current recycling performance, which does not meet the targets set out in the contract. Recycling rates currently sit at 45 per cent and our target is 60 per cent.”

“If this proposal is approved, we will look to split up the contract and offer it to different providers in a bid to get better value for money in these areas, more control and greater opportunity to generate income.

“Regardless of what happens, residents should be assured that the continuation of these services and a smooth transfer will be key factor for us in making any decision.

“We are also aware that this will be an uncertain time for Amey’s staff and we are committed to working with Amey as they consult with staff on any proposed changes if cabinet and council approves the termination of the existing contract.”

The contract with Amey will continue until a new service provider is in place. We are expecting this to be in autumn 2018.

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