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Wakefield Waste Management PFI Project
Schedule 4
Payment Mechanism
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1 NOT USED
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2 INTERPRETATION
2.1 Unless otherwise provided, references in this Schedule 4 (Payment Mechanism) to Clauses and Schedules shall be references to the relevant Clauses and Schedules in the Contract.
2.2 Unless otherwise provided, references in this Schedule 4 (Payment Mechanism) to parts, paragraphs, tables and appendices shall be references to parts, paragraphs, tables and appendices in this Schedule 4 (Payment Mechanism).
2.3 Where the symbol is used in formulae it shall have the meaning 'sum of'.
2.4 'm' shall relate to Months.
2.5 'y' shall relate to Contract Years.
2.6 Where the Contract Year or period to which payment relates is less than a full twelve (12) calendar months all Contract Year tonnage, volume and annually stated payment values (including the BMW to Landfill Target (tonnes)) shall be prorated to take account of the shorter period to which they relate. Where the Full Service Output Specification Commencement Date occurs part way through a Contract Year all Contract Year tonnage, volume and annually stated payment values for the Initial Service Period and Full Service Period shall be prorated to take account of the relative period to which each relates.
2.7 Where Non-Acceptance Deductions apply, the Council will use reasonable endeavours to mitigate costs incurred (save that such obligation to use reasonable endeavours shall be without prejudice to the overriding principle that the Council shall always prioritise preserving the continuity of the collection service over cost mitigation). Where Mileage Deductions apply, the Council will use reasonable endeavours to mitigate costs incurred relating to DDr, Hr
and OCr (save that such obligation to use reasonable endeavours shall be without prejudice to the overriding principle that the Council shall always prioritise preserving the continuity of the collection service over cost mitigation).
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3 UNITARY CHARGE
3.1 Unitary Charge
The Unitary Charge for each relevant Contract Year shall be calculated in accordance with the following formula from the Initial Service Commencement Date:
UC = B + L + C – BD – P – RD – M – N – T – R + OC + MTSP – RDFO + ECIP + CP + AGTPI - GHA
where:
UC Unitary Charge payable for the Contract Year
B Base Payment for the Contract Year (calculated in accordance with paragraph 4)
L Landfill Payment for the Contract Year (calculated in accordance with paragraph 5)
C Compensation Payment for the Contract Year (calculated in accordance with paragraph 6)
BD BMW Diversion Performance Deduction for the Contract Year (calculated in accordance with paragraph 7)
P Performance Deductions for the Contract Year (calculated in accordance with paragraph 8)
RD Reporting Deductions for the Contract Year (calculated in accordance with paragraph 8)
M Mileage Deductions for the Contract Year (calculated in accordance with paragraph 9)
N Non-Acceptance Deductions for the Contract Year (calculated in accordance with paragraph 10)
T Third Party Income Adjustment for the Contract Year (calculated in accordance with paragraph 11)
R Recycling Deduction for the Contract Year (calculated in accordance with paragraph 12)
OC Other Components for the Contract Year (calculated in accordance with paragraph 13)
MTSP Market Tested Services Payment for the Contract Year (calculated in accordance with paragraph 16)
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RDFO RDF Offtake Facility Upside Share for the Contract Year (calculated in accordance with paragraph 17)
ECIP Excess Commercial and Industrial Payment for the Contract Year (calculated in accordance with paragraph 18)
CP Commissioning Payment for the Contract Year (calculated in accordance with paragraph 19)
AGTPI The Additional Guaranteed TPI Payment for the Contract Year (calculated in accordance with paragraph 20)
GHA The Glasshoughton Abatement for the Contract Year (calculated in accordance with paragraph 21)
3.2 Monthly Payment
The Monthly Payment shall be calculated in accordance with paragraph 14.
3.3 Caps on Deductions
In any Contract Year the total value of Deductions (excluding the BMW Diversion Performance Deduction and Non-Acceptance Deductions) shall not exceed the Deductions Cap being:
3.3.1 during any Contract Year in the Initial Service Period
3.3.2 during any Contract Year in the Full Service Period
In the event that the cumulative total of Deductions (excluding the BMW Diversion Performance Deduction and Non-Acceptance Deductions) incurred in any relevant Contract Year exceeds the Deductions Cap then the Deductions (excluding the BMW Diversion Performance Deduction and Non-Acceptance Deductions) shall cease to apply for the remainder of such Contract Year.
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4 BASE PAYMENT ("B")
4.1 Base Payment
The Base Payment shall be calculated from the Initial Service Commencement Date based on a set of rates per tonne, which are applied to the Adjusted Eligible Tonnage of Contract Waste in a Contract Year and falling into the relevant Base Price Band. The rates per tonne in real terms change on the Full Service Commencement Date as set out in the tables in Appendix 2.
4.2 Calculation of the Base Payment
The Base Payment for the Contract Year shall be calculated in accordance with the following formula:
B = ∑(BTn x BPn)
where:
∑(BTn x BPn) The sum of (BT x BP) for each Base Price Band from 1 to ‘n’ as set out in column 1 of the relevant table in Appendix 2
BTn The Adjusted Eligible Tonnage of Contract Waste in the relevant Contract Year falling within Base Price Band ‘n’ which will equal
the higher of:
(a) Zn – MTTn
(b) Zero (0)
Zn
The lower of:
(a) Maximum Tonnage Threshold for Base Price Band ‘n’, and
(b) The higher of:
(i) Adjusted GMT except where the Contractor has failed to comply with Clause 45.7 the Adjusted GMT referred to shall be reduced by the tonnage of waste the Contractor would have secured if it had complied with its obligations under Clause 45.7, and
(ii) the Adjusted Eligible Tonnage of Contract Waste in the relevant Contract Year
MTTn Minimum Tonnage Threshold for Base Price Band ‘n’
BPn The relevant Base Price per Tonne for Base Price Band ‘n’, as set out in column 4 of the relevant table in
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Appendix 2
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5 LANDFILL PAYMENT (“L”)
5.1 Landfill Payment
The Landfill Payment for the Contract Year shall be calculated from the Initial Service Commencement Date in accordance with the following formula:
L = BLP + LTG
where:
BLP The Base Landfill Payment calculated in accordance with the following formula:
BLP = ((AALTR + ALG) x UT) + (AILTR x VT)
where:
AALTR The Actual Active Landfill Tax Rate
ALG The Landfill Gatefee per tonne for Active Waste in the relevant Contract Year
UT The lower of TALT and AALT
TALT The Target Active Landfill Tonnage in the relevant Contract Year calculated in accordance with paragraph 5.2
AALT The Actual Active Landfill Tonnage in the relevant Contract Year
AILTR The Actual Inactive Landfill Tax Rate
VT The lower of TILT and AILT
TILT The Target Inactive Landfill Tonnage in the relevant Contract Year calculated in accordance with paragraph 5.3
AILT The Actual Inactive Landfill Tonnage in the relevant Contract Year
LTG The Landfill Tax Gainshare calculated in accordance with the following formula:
LTG = EALTR x (TALT - AALT) x LTSP
: EALTR The Expected Active Landfill Tax Rate
TALT The Target Active Landfill Tonnage in the relevant Contract Year calculated in
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accordance with paragraph 5.2
AALT The Actual Active Landfill Tonnage in the relevant Contract Year
LTSP Landfill Tax Sharing Percentage
5.2 Target Active Landfill Tonnage
The Target Active Landfill Tonnage shall be calculated in accordance with the following formula:
TALT = ∑(AETCWn x LTAn) - CT + SA1 – SA3
where:
∑(AETCWn x LTAn) The sum of (AETCW x LTA) for each Base Price Band from 1 to ‘n’ as set out in column 1 of the relevant table in Appendix 2
AETCWn Adjusted Eligible Tonnage of Contract Waste falling within Base Price Band ‘n’ in a Contract Year
LTAn The relevant Landfill Target for Active Waste for Base Price Band ‘n’, as set out in column 6 of the relevant table in Appendix 2
CT The Commissioning Tonnage
SA1 The Seasonality Adjustment First Contract Year
SA3 The Seasonality Adjustment Third Contract Year
5.3 Target Inactive Landfill Tonnage
The Target Inactive Landfill Tonnage shall be calculated in accordance with the following formula:
TILT = ∑(AETCWn x LTIn)
where:
∑(AETCWn x LTIn) The sum of (AETCW x LTI) for each Base Price Band from 1 to ‘n’ as set out in column 1 of the relevant table in Appendix 2
AETCWn Adjusted Eligible Tonnage of Contract Waste falling within Base Price Band ‘n’ in a Contract
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Year
LTIn The relevant Landfill Target for Inactive Waste for Base Price Band ‘n’, as set out in column 7 of the relevant table in Appendix 2
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6 COMPENSATION PAYMENT (“C”)
6.1 Compensation Payment
The Compensation Payment for the Contract Year shall be calculated from the Initial Service Commencement Date, where applicable, in accordance with the following formula:
C = C1 + C2
where
C1 The Extended Opening Hours Compensation Payment calculated in accordance with paragraph 6.2
C2 The Rejected Load Compensation Payment calculated in accordance with paragraph 6.3
6.2 Extended Opening Hours Compensation Payment (“C1”)
6.2.1 During the first three (3) Months after the Initial Service Commencement Date, the Council will not be liable for the Extended Opening Hours Compensation Payment.
6.2.2 Subject to the provisions of paragraph 3.4.10 (c) and paragraph 3.3.4 of the Relevant Part of the Output Specification, the Council may pursuant to paragraph 3.2.2 of the Relevant Part of the Output Specification, on up to ten (10) occasions in each Contract Year prorated as appropriate, request that one or more Contractor Operated Waste Reception Point (excluding the Carrwood Road TLS) remain open for up to two (2) hours beyond the relevant Standard Opening Hours and such occasions shall not be included in the calculation of Cd pursuant to paragraph 6.2.3.
6.2.3 The Extended Opening Hours Compensation Payment, C1 shall be calculated in accordance with the following formula:
C1 = (CPD x Cd) + (CPH x Ch)
where
CPD
Cd subject to paragraph 6.2.2, the number of days, in the relevant Contract Year (excluding any day falling within the period referred to in paragraph 6.2.1), on which the Extended Opening Hours on that day are greater than
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zero (0) but less than or equal to two (2) hours for each Contractor Operated Waste Reception Point, in accordance with Service Output 3 of the Relevant Part of the Output Specification
CPH
Ch each additional hour, other than any hour falling within the period referred to in paragraph 6.2.1, (and in the case where the Extended Opening Hours for a Contractor Operated Waste Reception Point exceed two (2) hours but are less than three (3) hours, such period shall be rounded up to one (1) hour for the purpose of this calculation) in a Contract Year, where the Extended Opening Hours for each Contractor Operated Waste Reception Point are greater than two (2) hours per day, in accordance with the Relevant Part of the Output Specification
6.3 Rejected Load Compensation Payment (“C2”)
6.3.1 During the period from the date on which the Council first delivers Household Waste to the Contractor in the three (3) segregated streams set out in paragraph 4 of Schedule 36 (Council Baseline Collection Arrangements) until the date three (3) Months after the Full Service Output Specification Commencement Date, the Council will not be liable for the Rejected Load Compensation Payment.
6.3.2 The Rejected Load Compensation Payment, C2, shall be calculated in accordance with the following formula:
C2 = RL x PRL
where
RL The number of Rejected Loads (excluding any occurring during the period referred to in paragraph 6.3.1) occurring in the relevant Contract Year
PRL
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7 BMW DIVERSION PERFORMANCE DEDUCTION (“BD”)
7.1 BMW Diversion Performance Deduction
The BMW Diversion Performance Deduction for the Contract Year shall be calculated from the Initial Service Commencement Date in accordance with the following formula:
BD = (ABL – ECIT - BDT) x BDR
:
ABL The actual tonnage of accepted Contract Waste sent to Landfill in the relevant Contract Year which is BMW
ECIT The actual tonnage of accepted Excess Commercial and Industrial Tonnage in the relevant Contract Year which is BMW
BDT The BMW to Landfill Target
BDR The BMW Deduction Rate being the lower of: (a) The BMW Deduction Cap (b) The mean average cost or penalty per
tonne incurred by the Council in the relevant Contract Year under LATS or any equivalent successor regime as a result of ABL being greater than BDT
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8 PERFORMANCE DEDUCTIONS ("P") AND REPORTING DEDUCTIONS (“RD”)
8.1 Performance Deductions and Reporting Deductions
Subject to paragraph 8.2, Performance Deductions and Reporting Deductions shall be calculated from the Initial Service Commencement Date in accordance with the Performance Framework set out in the Relevant Part of the Output Specification.
8.2 Relief from Performance Deductions
8.2.1 During the first three (3) Months after the Initial Service Commencement Date, the Contractor will not be liable for any Performance Deductions and/or Reporting Deductions.
8.2.2 During the first Month after the Service Commencement Date for Welbeck HWRC, the Contractor will not be liable for any Performance Deductions and/or Reporting Deductions in respect of any failure to meet the Service Requirements of the Full Service Output Specification in relation to or arising from the Welbeck HWRC.
8.2.3 The Contractor will not be liable for any Performance Deductions and/or Reporting Deductions in respect of any failure to meet the Service Requirements of the Full Service Output Specification in relation to or arising from any of the following New Waste Management Facilities:
South Kirkby Main MRF;
South Kirkby Main Residual Waste Treatment Facility; and
South Kirkby Main Composting Facility,
until the date which is three (3) Months after the Service Commencement Date for that relevant New Waste Management Facility.
8.2.4 Where the Service Commencement Date is within the same Month for each of the following HWRCs:
Denby Dale Road HWRC
Glasshoughton HWRC
South Kirkby HWRC
then during the first three (3) Months after the Service Commencement Date for each of those HWRCs, the Contractor will not be liable for any Performance Deductions and/or Reporting
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Deductions in respect of any failure to meet the Service Requirements of the Full Service Output Specification in relation to or arising from those HWRCs.
8.2.5 Where the Service Commencement Date is not within the same Month for each of the following HWRCs:
Denby Dale Road HWRC
Glasshoughton HWRC
South Kirkby HWRC
then for the HWRC having the earliest Service Commencement Date, during the first three (3) Months after that Service Commencement Date, the Contractor will not be liable for any Performance Deductions and/or Reporting Deductions in respect of any failure to meet the Service Requirements of the Full Service Output Specification in relation to or arising from that HWRC. For the remaining HWRCs (having later Service Commencement Dates), the Contractor will not be liable for any Performance Deductions and/or Reporting Deductions in respect of any failure to meet the Service Requirements of the Full Service Output Specification in relation to or arising from those HWRCs for the first Month following the Service Commencement Date for that HWRC.
8.2.6 The Contractor will not be liable for any Performance Deductions and/or Reporting Deductions in respect of any failure to meet the Service Requirements of either the Initial Service Output Specification or the Full Service Output Specification (as applicable) in relation to or arising from the Denby Dale Road TLS until the date which is three (3) Months after the Denby Dale Road TLS Initial Service Commencement Date.
8.2.7 The Contractor will not be liable for any Performance Deductions and/or Reporting Deductions in respect of any failure to meet the Service Requirements of either the Initial Service Output Specification or the Full Service Output Specification (as applicable) in relation to or arising from the Carrwood Road TLS where the Carrwood Road TLS is Unavailable as a result of the occurrence of an Insured Risk or uninsured risk at the Carrwood Road Site (and "Insured Risk" shall have the meaning set out in the Lease of the Carrwood Road Site)
.
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9 MILEAGE DEDUCTIONS ("M")
9.1 Mileage Deductions
Mileage Deductions shall be calculated from the Initial Service Commencement Date in accordance with the following formula:
M = ∑Mr
where:
∑Mr The sum of Mr calculated for each relevant event (r) that a Waste Reception Point is Unavailable and the Council has to deliver Contract Waste to an Alternative Waste Reception Point, except where Carrwood Road TLS or part thereof is Unavailable as a result of (i)
or (ii) the occurrence of an Insured Risk or uninsured risk at the Carrwood Road Site (and "Insured Risk" shall have the meaning set out in the Lease of the Carrwood Road Site)
.
Mr DDr x (CTCr + CFCr) + (Hr x CSCr ) + OCr
where:
DDr the additional incremental distance (miles) travelled due to the relevant Waste Reception Point being Unavailable and the Council having to deliver Contract Waste to an Alternative Waste Reception Point
CTCr the Council incurred transport cost per mile (excluding fuel costs) applicable to the relevant vehicle type in accordance with the rates set out in the CTC table in Appendix 5
CFCr the Council incurred fuel cost per mile calculated in accordance with the following formula:
CFCr = CFCl x 1.2 x CFCFFC
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CFCl the average price per litre of relevant fuel charged by (or any
successor thereto) to the Council during the Month in which the Mileage Deductions are incurred
CFCCFFC the Conversion Factor for fuel costs applicable to the relevant vehicle type as set out in the CFC table in Appendix 5
Hr the additional incremental hours of staff time incurred due to the relevant Waste Reception Point being Unavailable and the Council having to deliver Contract Waste to an Alternative Waste Reception Point
CSCr the Council incurred staff cost per hour applicable to the relevant charge out rate in accordance with the rates set out in the CSC table in Appendix 5
OCr the other costs reasonably incurred by the Council due to the relevant Waste Reception Point being Unavailable and the Council having to deliver Contract Waste to an Alternative Waste Reception Point in accordance with the rates set out in the OC table in Appendix 5
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10 NON-ACCEPTANCE DEDUCTIONS ("N")
10.1 Non-Acceptance Deductions
Non-Acceptance Deductions shall be calculated from the Initial Service Commencement Date in accordance with the following formula:
N = ∑Nr
where:
∑Nr The sum of Nr calculated for each relevant event (r) that the Council is required to deliver Contract Waste to an Alternative Waste Reception Point and such Alternative Waste Reception Point is or becomes Unavailable
Nr GCr + TCr + AOCr + LACr – TSr – LSr – MSr
:
GCr additional gatefee related costs incurred by the Council including gatefee at both landfill sites and alternative treatment facilities
TCr additional tax related costs incurred by the Council which may, for the avoidance of doubt, include Landfill Tax
AOCr additional other costs incurred by the Council which may, for the avoidance of doubt, include additional transport related costs, staff related costs including overtime, additional administration related costs including rescheduling of rounds and the procurement of additional vehicles and/or staff
LACr additional LATS or any equivalent successor regime related costs incurred by the Council
TSr savings made by the Council in paying a reduced Base Payment to the Contractor to the extent that these have not already been considered in the additional costs above
LSr savings made by the Council in paying a reduced Landfill Payment to the Contractor to the extent that these have not already been considered in the additional costs above
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MSr savings made by the Council in paying a reduced Market Tested Services Payment to the Contractor to the extent that these have not already been considered in the additional costs above
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11 THIRD PARTY INCOME ADJUSTMENT ("T")
11.1 Third Party Income Adjustment
The Third Party Income Adjustment for the Contract Year shall be calculated from the Initial Service Commencement Date in accordance with the following formula:
T = GCPy + ETPIy
GCPy The GMT Clawback Payment for the relevant Contract Year calculated in accordance with paragraph 11.2
ETPIy The Excess TPI Share for the relevant Contract Year calculated in accordance with paragraph 11.3
11.2 GMT Clawback Payment (GCPy)
Where in any Contract Year the Adjusted Eligible Tonnage of Contract Waste is below the level of Adjusted GMT and as a result the Base Payment for that Contract Year has been calculated using limb (b)(i) of Zn (as defined in paragraph 4.2), the Council shall be entitled, through the GMT Clawback Payment, to receive excess Third Party Income prior to the sharing of such income with the Contractor.
The GMT Clawback Payment for the relevant Contract Year (GCPy) shall be the lower of:
(a) ∑GD1 to y - ∑GCP1 to y-1 and
(b) EGDIy
:
∑GD1 to y The aggregate of GMT Downside (GDy) in respect of all Contract Years up to and including the relevant Contract Year
GDy (AGy – AETCWy) x BP1, subject to a minimum of zero (0)
AGy Adjusted GMT for the relevant Contract Year
AETCWy Adjusted Eligible Tonnage of Contract Waste for the relevant Contract Year
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BP1 The Base Price per Tonne for Base Price Band 1, as set out in column 4 of the relevant table in Appendix 2
∑GCP1 to y-1 The aggregate of the GMT Clawback Payments in respect of all Contract Years preceding the relevant Contract Year
EGDIy The Excess GMT Downside Income in respect of the relevant Contract Year as calculated in accordance with paragraph 11.4
11.3 Excess TPI Share (ETPIy)
The Excess TPI Share for the relevant Contract Year shall be calculated in accordance with the following formula:
ETPIy = (EIy - GCPy) x 50%
:
EIy The Excess Third Party Income in respect of the relevant Contract Year as calculated in accordance with paragraph 11.5
GCPy The GMT Clawback Payment for the relevant Contract Year as calculated in accordance with paragraph 11.2
11.4 Excess GMT Downside Income (EGDIy)
The Excess GMT Downside Income for the relevant Contract Year shall be calculated in accordance with the following formula:
EGDIy = ATPIcum – GGDTPIcum – ∑EGDI1 to y-1
:
ATPIcum The cumulative Third Party Income in the period between the Initial Service Commencement Date and the end of the relevant Contract Year
GGDTPIcum The cumulative Guaranteed GMT Downside Third Party Income in the period between the Initial Service Commencement Date and the end of the relevant Contract Year calculated in accordance with paragraph 11.6
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∑EGDI1 to y-1 the aggregate of the Excess GMT Downside Income in respect of all Contract Years preceding the relevant Contract Year
11.5 Excess Third Party Income (EIy)
The Excess Third Party Income for the relevant Contract Year shall be calculated in accordance with the following formula:
EIy = ATPIcum – ∑GTPIOTH1 to y - ∑GTPINCW1 to y - OTPIGCPy – ∑EI1 to y-1
:
ATPIcum The cumulative Third Party Income in the period between the Initial Service Commencement Date and the end of the relevant Contract Year
∑GTPIOTH1 to y The aggregate of the Guaranteed Third Party Income (Other) amounts (GTPIOTHy) in respect of each Contract Year, calculated in accordance with paragraph 11.8, up to and including the relevant Contract Year
∑GTPINCW1 to y The aggregate of the Guaranteed Third Party Income (Non-Contract Waste Gate Fees) amounts (GTPINCWy) in respect of each Contract Year, up to and including the relevant Contract Year
GTPINCWy The Guaranteed Third Party Income (Non-Contract Waste Gate Fees) in the relevant Contract Year
OTPIGCPy The Other Third Party Income used in the GMT Clawback Payment for the relevant Contract Year calculated in accordance with paragraph 11.10
∑EI1 to y-1 the aggregate of the Excess Third Party Income amounts in respect of all Contract Years preceding the relevant Contract Year
11.6 Guaranteed GMT Downside Third Party Income (GGDTPIcum)
The cumulative Guaranteed GMT Downside Third Party Income in the period between the Initial Service Commencement Date and the end of the relevant Contract Year shall be calculated in accordance with the following formula:
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GGDTPIcum = ∑GTPINCW1 to y + GGDTPIOTHcum
where:
∑GTPINCW1 to y The aggregate of the Guaranteed Third Party Income (Non-Contract Waste Gate Fees) amounts (GTPINCWy) in respect of each Contract Year, up to and including the relevant Contract Year
GTPINCWy The Guaranteed Third Party Income (Non-Contract Waste Gate Fees) in the relevant Contract Year
GGDTPIOTHcum The cumulative Guaranteed GMT Downside Third Party Income (Other) in the relevant Contract Year calculated in accordance with paragraph 11.7
11.7 Guaranteed GMT Downside Third Party Income (Other) (GGDTPIOTHy)
The cumulative Guaranteed GMT Downside Third Party Income (Other), GGDTPIOTHy, for the relevant Contract Year shall be the lower of:
(a) ATPIOTHcum and
(b) ∑GTPIOTH1 to y-1
where:
ATPIOTHcum The cumulative Third Party Income excluding Non-Contract Waste gate fees in the period between the Initial Service Commencement Date and the end of the relevant Contract Year
∑GTPIOTH1 to y The aggregate of the Guaranteed Third Party Income (Other) amounts in respect of each Contract Year (GTPIOTHy), calculated in accordance with paragraph 11.8, up to and including the relevant Contract Year
11.8 Guaranteed Third Party Income (Other) (GTPIOTHy)
The Guaranteed Third Party Income (Other) for the relevant Contract Year shall be calculated in accordance with the following formula:
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GTPIOTHy = ∑(BTn x TPIFOTHn)
where:
∑(BTn x TPIFOTHn) The sum of (BT x TPIFOTH) for each Base Price Band from 1 to ‘n’ as set out in column 1 of the relevant table in Appendix 2
BTn The Adjusted Eligible Tonnage of Contract Waste in the relevant Contract Year falling within Base Price Band ‘n’ which will equal
the higher of:
(a) Zn – MTTn
(b) Zero (0)
Zn
The lower of:
(a) Maximum Tonnage Threshold for Base Price Band ‘n’, and
(b) The higher of:
(i) Adjusted GMT except where the Contractor has failed to comply with Clause 45.7 the Adjusted GMT referred to shall be reduced by the tonnage of waste the Contractor would have secured if it had complied with its obligations under Clause 45.7, and
(ii) the Adjusted Eligible Tonnage of Contract Waste in the relevant Contract Year
MTTn Minimum Tonnage Threshold for Base Price Band ‘n’
TPIFOTHn The relevant Third Party Income Factor (Other) for Base Price Band ‘n’, as set out in column 5 of the relevant table in Appendix 2
11.9 NOT USED
11.10 Other Third Party Income used in the GMT Clawback Payment (OTPIGCPy)
The Other Third Party Income used in the GMT Clawback Payment for the relevant Contract Year shall be calculated in accordance with the following formula:
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OTPIGCPy = ∑GCP1 to y-1 - ∑NCWGCP1 to y-1
:
∑GCP1 to y-1 The aggregate of the GMT Clawback Payment calculated in accordance with paragraph 11.2 in respect of all Contract Years preceding the relevant Contract Year
∑NCWGCP1 to y-
1 The aggregate of the Excess Non-Contract Waste Gate Fee Income used in the GMT Clawback Payment calculated in accordance with paragraph 11.11 in respect of all Contract Years preceding the relevant Contract Year
11.11 Excess Non-Contract Waste Gate Fee Income used in the GMT Clawback Payment (NCWGCPy)
The Excess Non-Contract Waste Gate Fee Income used in the GMT Clawback Payment for the relevant Contract Year shall be calculated in accordance with the following formula:
NCWGCPy = the lower of:
(a) GCPy and
(b) ATPINCWy - GTPINCWy
:
GCPy The GMT Clawback Payment for the relevant Contract Year as calculated in accordance with paragraph 11.2
ATPINCWy The Third Party Income in respect of Non-Contract Waste gate fees for the relevant Contract Year
GTPINCWy The Guaranteed Third Party Income (Non-Contract Waste Gate Fees) in the relevant Contract Year
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12 RECYCLING DEDUCTION (“R”)
12.1 Recycling Deduction
The Recycling Deduction for the Contract Year shall be the greater of:
12.1.1 HWRTD, and
12.1.2 HWRCRTD
where:
HWRTD Household Waste Recycling Target Deduction
HWRCRTD HWRC Recycling Target Deduction being the aggregate of the HWRCRTD calculated in accordance with paragraphs 12.3 and 12.4.
12.2 Household Waste Recycling Target Deduction
The Household Waste Recycling Target Deduction for the relevant Contract Year is calculated in accordance with the following formula:
HWRTD = (HWRT – (AHWR + ARC + CRF)) x 100 x HWRFA
:
HWRT The Household Waste Recycling Target
AHWR The Contractor’s Actual Contribution to the Household Waste Recycling Target
ARC The Council’s Actual Contribution to the Household Waste Recycling Target
CRF The Council Recycling Failure to be calculated in accordance with the following formula:
CRF = GCC – ARC
:
GCC = Guaranteed Council Contribution
HWRFA The Household Waste Recycling Failure Adjustment
12.3 HWRC Recycling Target Deduction for Initial Facilities
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The HWRC Recycling Target Deduction for each relevant Contract Year for Initial Facilities is calculated in accordance with the following formula:
HWRCRTD = (HWRCRT - AHWRC) x HWRCRFA x 100
:
HWRCRT The HWRC Recycling Target
AHWRC The Contractor’s performance (as a percentage) against the HWRC Recycling Target in the relevant Contract Year, calculated in accordance with paragraph 3.1.2 of Part 1 of Schedule 1 (Contract Targets and Output Specification)
HWRCRFA The HWRC Recycling Failure Adjustment
12.4 HWRC Recycling Target Deduction for New Waste Management Facilities
The HWRC Recycling Target Deduction for each relevant Contract Year for New Waste Management Facilities is calculated in accordance with the following formula:
HWRCRTD = ∑HWRCRTDf
:
∑HWRCRTDf The sum of amounts calculated individually in accordance with the following formula for each HWRC:
(HWRCRT – AHWRCR) x HWRCRFA x 100
where:
HWRCRT The HWRC Recycling Target
AHWRCR The Contractor’s performance (as a percentage) against the HWRC Recycling Target in the relevant Contract Year, calculated in accordance with paragraph 3.2.2 of Part 1 of Schedule 1 (Contract Targets and Output Specification)
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HWRCRFA The HWRC Recycling Failure Adjustment
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13 OTHER COMPONENTS (“OC”)
13.1 Other Components
Other Components shall be calculated in accordance with the following formula:
OC = NNDR + EC – ES + SW + WCL - AA + MATSP + CRCP + OA1 – OA2 +/- PC
where:
NNDR The value of NNDR actually incurred by the Contractor in respect of the Sites listed in Appendix 1
EC The value of any Exceptional Cost
ES The value of any Exceptional Saving
SW Specific Waste Payment calculated in accordance with the following formula:
SW = ∑(Vw x Pw)
where:
∑(Vw x Pw) The sum of (Vw x Pw) for each Specific Waste Item listed in Appendix 4
Vw The number of units Handled by the Contractor for the relevant Specific Waste Item in the relevant Contract Year
Pw The Specific Waste Item Price for the relevant Specific Waste Item in the relevant Contract Year, where income shall be a negative price.
WCL The Waste Minimisation and Community Liaison Fee paid to the Contractor for performing the relevant services as shown in paragraphs 1 and 2 of the Relevant Part of the Output Specification being
for the relevant Contract Year.
AA The aggregate of Agreed Abatement(s) in the relevant Contract Year as calculated in accordance with Clause 55.1.19 (Changes to the Works or Service)
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MATSP The Maximum Annual Tonnage Surplus Payment shall be payable in the event that the Adjusted Eligible Tonnage of Contract Waste in any relevant Contract Year exceeds the Maximum Annual Tonnage in the relevant Contract Year and shall be calculated as follows:
MATSP = (AETCW – MAT) x CAD
where:
AETCW Adjusted Eligible Tonnage of Contract Waste in any relevant Contract Year
MAT Maximum Annual Tonnage in the relevant Contract Year
CAD Cost of alternative disposal for each tonne of Adjusted Eligible Tonnage of Contract Waste in excess of Maximum Annual Tonnage. The form of alternative disposal and the costs shall be agreed in advance with the Council (acting reasonably), shall not double count amounts which can be recovered by the Contractor through any other provisions of the Contract, and the costs shall be limited to:
i) relevant gatefees associated with the disposal
ii) relevant landfill tax associated with the disposal, and
iii) transport costs incurred
iv) additional other costs incurred by the Contractor which may, for the avoidance of doubt, include additional transport related costs, staff related costs including overtime and additional administration related
30
costs
CRCP The CRC Payment calculated in accordance with the following formula:
CRCP = (CRCELEC x EP) + (CRCGAS x EG)
where:
CRCELEC The prevailing rate of the CRC Cost per MWh for Electricity in the relevant Contract Year
EP The lower of TE and AE
TE Target Electricity as calculated in accordance with paragraph 13.2 in the relevant Contract Year
AE Actual Electricity in the relevant Contract Year
CRCGAS The prevailing rate of the CRC Cost per KWh for Gas in the relevant Contract Year
EG The lower of TG and AG
TG Target Gas as calculated in accordance with paragraph 13.3 in the relevant Contract Year
AG Actual Gas in the relevant Contract Year
OA1 Any other ad hoc amounts payable by the Council to the Contractor in accordance with the Contract
OA2 Any other ad hoc amounts payable by the Contractor to the Council in accordance with the Contract
PC Any amounts payable to the Contractor (+) or by the Contractor (-), as applicable, in accordance with Clause 77 (Pensions)
13.2 Target Electricity
The Target Electricity amount in respect of electricity consumed by the Waste Management Facilities shall be calculated in accordance with the following formula:
TE = ∑(BTn x CFELECn)
31
where:
∑(BTn x CFELECn) The sum of (BT x CFELECn) for each Base Price Band from 1 to ‘n’ as set out in column 1 of the relevant table in Appendix 3
BTn The Adjusted Eligible Tonnage of Contract Waste in the relevant Contract Year falling within Base Price Band ‘n’ which will equal
the higher of:
(a) Zn – MTTn
(b)
Zn
The lower of:
(a) Maximum Tonnage Threshold for Base Price Band ‘n’, and
(b) the Adjusted Eligible Tonnage of Contract Waste in the relevant Contract Year
MTTn Minimum Tonnage Threshold for Base Price Band ‘n’
CFELECn The Conversion Factor for electricity costs for tonnage band n as set out in column 6 of Appendix 3;
13.3 Target Gas
The Target Gas amount in respect of gas consumed at the South Kirkby Main Residual Waste Treatment Facility shall be calculated in accordance with the following formula:
TG = ∑(BTn x CFGASn)
where:
∑(BTn x CFGASn) The sum of (BT x CFGASn) for each Base Price Band from 1 to ‘n’ as set out in column 1 of the relevant table in Appendix 3
BTn The Adjusted Eligible Tonnage of Contract Waste in the relevant Contract Year falling within Base Price Band ‘n’ which will equal
the higher of:
(c) Zn – MTTn
32
(d)
Zn
The lower of:
(e) Maximum Tonnage Threshold for Base Price Band ‘n’, and
(f) the Adjusted Eligible Tonnage of Contract Waste in the relevant Contract Year
MTTn Minimum Tonnage Threshold for Base Price Band ‘n’
CFGASn The Conversion Factor for gas costs for tonnage band n as set out in column 5 of Appendix 3;
33
14 MONTHLY PAYMENT
14.1 The Monthly Payment shall be calculated from the Initial Service Commencement Date.
14.2 The Contractor shall prepare an Initial Waste Flow Forecast and Unitary Charge Forecast and submit them to the Council within five (5) Business Days of the beginning of the month of December before the start of each Contract Year. To prepare the Initial Waste Flow Forecast, unless the Parties agree otherwise, the Contractor shall:
14.2.1 calculate the ratio of the aggregate of the actual waste flows for the twelve (12) complete Months from October to September preceding the date on which the Initial Waste Flow Forecast is set to the forecast wasteflows in the Base Case for that same twelve (12) month period
14.2.2 apply this ratio to the Eligible Tonnage of Contract Waste tonnages set out in the Base Case for the subsequent Contract Year and the resultant figure shall be the Initial Waste Flow Forecast. The Initial Waste Flow Forecast shall be used to calculate the Unitary Charge Forecast for the subsequent Contract Year.
14.3 For the purposes of the first Contract Year the Initial Waste Flow Forecast shall be assumed to be and for the purposes of the second Contract Year, the Initial Waste Flow Forecast shall be assumed to be tonnes unless the Parties agree that actual tonnages are predicted to be substantially different.
14.4 For the purposes of the first Contract Year and final Contract Year, the Initial Waste Flow Forecast and Unitary Charge Forecast shall be subject to a pro rata adjustment to take account of the number of days or Months in the first Contract Year or final Contract Year.
14.5 Within ten (10) Business Days of the end of each month of June, September, December and March the Contractor shall calculate the ratio of the aggregate actual waste flows, based on data which is available to the Contractor at the time for the preceding three (3) complete months to the actual waste flows in the equivalent period for the preceding Contract Year. This ratio shall then be applied to the actual Contract Waste tonnages for the preceding Contract Year and the resultant figure shall be used in order to revise the Unitary Charge Forecast for the current Contract Year.
14.6 not used
14.7 The Monthly Payment shall be calculated in accordance with the following formula:
MPm = UCFm x (m/M) - ∑UCF1 to m-1 + MAm + UCR
34
where:
MPm Monthly Payment for the relevant Month
UCFm Unitary Charge Forecast for the relevant Month
m The number of Months which have passed from the beginning of the Contract Year up to and including the relevant Month, for which the Monthly Payment is being determined. The value of m shall be between one (1) and twelve (12) depending upon the relevant Month in the Contract Year, for example in a full Contract Year for the Month of April, m = 1
M The number of Months in the Contract Year which shall equal twelve (12) save in the first Contract Year it shall be the number of Months from the Initial Service Commencement Date until the following 31 March and in the final Contract Year it shall be the number of Months from the 1 April in such Contract Year until the Expiry Date, or the Termination Date, if earlier
∑UCF1 to m-
1
The sum of the Unitary Charge Forecasts previously invoiced for each Month in the relevant Contract Year
MAm Monthly Adjustments for the relevant Month calculated in accordance with the following formula:
MAm = Cm-2 - Pm-2 – RD m-2 - Mm-2 - Nm-2 + OCm-x + ECIPm-x -GHAm-2
Cm-2 Compensation Payment for Month, m-2, if applicable, calculated in accordance with paragraph 6 of this Schedule 4 (Payment Mechanism)
Pm-2 Performance Deductions for Month, m-2, if applicable, calculated in accordance with paragraph 8 of this Schedule 4 (Payment Mechanism)
RD m-2 Reporting Deductions for Month, m-2, if applicable, calculated in accordance with paragraph 8 of this Schedule 4 (Payment Mechanism)
Mm-2 Mileage Deductions for Month, m-2, if applicable, calculated in accordance with paragraph 9 of this Schedule 4 (Payment Mechanism)
Nm-2 Non-Acceptance Deductions for Month, m-2, if applicable, calculated in accordance with paragraph 10 of this Schedule 4 (Payment Mechanism)
OCm-x Other Components for Month, m-x, if applicable, calculated in accordance with paragraph 13 of this Schedule 4 (Payment Mechanism) where x =1 or 2 unless the Parties
35
agree otherwise
ECIPm-x Excess Commercial and Industrial Payment for Month, m-x, if applicable, calculated in accordance with paragraph 18 of this Schedule 4 (Payment Mechanism), where x = 1 or 2 unless the Parties agree otherwise
GHAm-2 Glasshoughton Abatement for Month, m-2, if applicable, calculated in accordance with paragraph 21 of this Schedule 4 (Payment Mechanism)
UCR The Unitary Charge Reconciliation, to be made as soon as practicable but in any event within three (3) Months following the final Month in the previous Contract Year, calculated in accordance with the following formula:
UCR = FUC - ∑MPFY
FUC The Unitary Charge for the previous Contract Year calculated in accordance with paragraph 3.1 which shall reflect actual figures for the relevant Contract Year
∑MPFY The sum of Monthly Payments invoiced in the previous Contract Year (y-1) directly relating to that Contract Year:
∑UCF (1 to 12) y-1 + MA (1 to 12) y-1
14.8 The Monthly Payment shall be invoiced in accordance with Clause 57.2 (Invoicing and Payment Arrangements). The Monthly Payment for month m shall include the Base Payment in respect of the Fixed Proportion of Band 1 for Month m+1. All other amounts for the Base Payment shall relate to Month m.
36
15 INDEXATION PROVISIONS
15.1 Components of the Unitary Charge shall be subject to indexation, as follows:
Component of the Unitary Charge Index to be used
Deductions Cap
Base Payment – BP1
Base Payment – BPn where n >1
Landfill Payment – ALG (until 18 November 2013 following which the rate will be Market Tested)
Extended Opening Hours Compensation Payment, C1 - CPD
Extended Opening Hours Compensation Payment, C1 - CPH
Rejected Load Compensation Payment, C2 - PRL
BMW Diversion Performance Deduction – BMW Deduction Cap
Performance Deductions
Mileage Deductions – CTC
Mileage Deductions – CFC
Mileage Deductions – CSC
Mileage Deductions – OC
Third Party Income Adjustment -
37
Component of the Unitary Charge Index to be used
GTPINCW
Third Party Income Adjustment – TPIFOTH
Household Waste Recycling Target Deduction - HWRFA
HWRC Recycling Target Deduction - HWRCRFA
Other Components - Waste Minimisation and Community Liaison Fee
Market Tested Services Payment – Market Tested Price
Market Tested Services Payment - Base Price of Diesel
Market Tested Services Payment - Base Price of Effluent
Market Tested Services Payment - Base Price of Fixed Cost of Electricity
Market Tested Services Payment - Base Price of Fixed Cost of Gas
Market Tested Services Payment - Base Price of Fixed Cost of Water
Market Tested Services Payment -
38
Component of the Unitary Charge Index to be used
Base Price of Gas
Market Tested Services Payment - Base Price of Red Diesel
Market Tested Services Payment Base Price of Sewerage
Market Tested Services Payment - Base Price of transporting Contract Waste from Denby Dale Road TLS to the South Kirkby Main Residual Waste Treatment Facility
Market Tested Services Payment - Base Price of transporting Project RDF from the South Kirkby Main Residual Waste Treatment Facility to the Ferrybridge Facility
Market Tested Services Payment - Base Price of Water
RDF Offtake Facility Upside Share - RDFEP
Excess Commercial and Industrial Payment – Excess Commercial and Industrial Rate
Commissioning Payment - CR
15.2 Base Payment Index
39
The Base Payment Index shall be calculated in accordance with the following formula:
IBPI = (I2 x (1 – FP)) + FP
where:
IBPI Base Payment Index for the relevant Contract Year
I2 Full Indexation Factor (I2) for the relevant Contract Year calculated in accordance with paragraph 15.5
FP Fixed Proportion of the Base Payment which shall be during the Initial Service Period and
during the Full Service Period
15.3 Full Indexation Factor (RPIX)
The Full Indexation Factor (RPIX) for the Contract Year ‘y’ represents the increase or decrease in RPIX over the period since the Base Date and shall be calculated as follows:
base
y
RPIXRPIX
RPIXI
1
where:
IRPIX The Full Indexation Factor (RPIX) for the relevant Contract Year
RPIXy-1 The value published for RPIX for the January immediately preceding Contract Year ‘y’
RPIXbase The value published for RPIX at January 2011 being 228.2
The Full Indexation Factor (RPIX) shall be applied to the relevant components of the Unitary Charge as listed in paragraph 15.1 from each Indexation Date.
15.4 Full Indexation Factor (LAB)
The Full Indexation Factor (LAB) for the Contract Year ‘y’ represents the increase or decrease in RPIX over the period since the Base Date and shall be calculated as follows:
For the first Contract Year:
0075.01
base
y
LABRPIX
RPIXI
40
For each Contract Year following the first Contract Year:
10075.02
1
1
y
y
LAByLABRPIX
RPIXII
where:
ILAB The Full Indexation Factor (LAB) for the relevant Contract Year
ILABy-1 The Full Indexation Factor (LAB) for the Contract Year immediately preceding the relevant Contract Year
RPIXy-2 The value published for RPIX for the January immediately preceding Contract Year ‘y-1’
RPIXy-1 The value published for RPIX for the January immediately preceding Contract Year ‘y’
RPIXbase The value published for RPIX at January 2011 being 228.2
The Full Indexation Factor (LAB) shall be applied to the relevant components of the Unitary Charge as listed in paragraph 15.1 from each Indexation Date.
15.5 Full Indexation Factor (I2)
The Full Indexation Factor for the Contract Year y over the period since the Base Date and shall be calculated as follows:
I2 = (IRPIX x RPIx%) + (ILAB x LAB%)
where:
IRPIX The Full Indexation Factor (RPIX) for the relevant Contract Year calculated in accordance with paragraph 15.3
ILAB The Full Indexation Factor (LAB) for the relevant Contract Year calculated in accordance with paragraph 15.4
RPIx% during the Initial Service Period and during the Full Service Period
LAB% during the Initial Service Period and during the Full Service Period
The Full Indexation Factor shall be applied to the relevant components of the Unitary Charge as listed in paragraph 15.1 from each Indexation Date.
41
15.6 Electricity Indexation Factor
The Electricity Indexation Factor for the Contract Year ‘y’ represents the increase or decrease in RPIX over the period since the Base Date and shall be calculated as follows:
base
y
yRPIX
RPIXmidEIF
where:
RPIXmidy The value published for RPIX for the July falling within Contract Year ‘y’
RPIXbase The value published for RPIX at January 2011 being 228.2
The Electricity Indexation Factor shall be applied from the relevant Electricity Indexation Date.
15.7 Forecast Index
For the purposes of calculating indexation pursuant to this paragraph 15 where the relevant Index has not been published ten (10) days prior to the relevant Indexation Date or ten (10) days prior to the relevant Electricity Indexation Date, as applicable, then:
A forecast of the relevant Index shall be used in replacement for the relevant Index
Within twenty (20) Business Days of the Index Publication Date, the Full Indexation Factor for the relevant Contract Year shall be recalculated, using the published Index rather than the forecast of the relevant Index, and the relevant indexable items as set out in paragraph 15.1 for such Index shall be adjusted for the period from the relevant Indexation Date to the Index Publication Date; and
If the amount of the Monthly Payment paid by the Council in respect of the relevant period is either in excess of or less than the amount which would have been paid had RPIX for the month of January (in respect of the Indexation Date) or the month of July (in respect of the Electricity Indexation Date), in the relevant period been published, an amount equal to the shortfall or excess shall be added to or deducted from the first or succeeding Monthly Payment which follows the recalculation pursuant to this paragraph 15.
42
15.8 Changes to Indices Affecting any Indexation Factor
15.8.1 If there is a material change in the nature or basis of any Index, or if any Index is discontinued, the Parties shall seek to agree (acting reasonably) upon an alternative to that Index which as closely replicates the relevant Index as is possible, and such consequential changes shall be made to the calculations provided for in this paragraph 15 as are necessary to ensure that all payments to be made pursuant to this Contract shall be the same as if such change had not occurred. Any dispute regarding changes to the Index and/or calculations may be referred by either Party to the Dispute Resolution Procedure.
15.8.2 If any error or mistake shall occur in the publication for the figures for the relevant Index which have been used at any time in any calculation pursuant to this Schedule which is subsequently duly acknowledged and corrected by the Office of National Statistics or the relevant body with responsibility for the publication of such Index, the calculations in which the incorrect figures were used for the adjustments of any part of the Monthly Payment shall be recalculated using the correct figures. Any dispute regarding the recalculations pursuant to this paragraph 15 may be referred at the request by either Party to the Dispute Resolution Procedure. Any overpayment or underpayment by either Party to the other which has occurred as a result of the incorrect figures shall be paid or repaid by the Party to the other within seven (7) Business Days of the recalculation being agreed or determined (as the case may be).
43
16 MARKET TESTED SERVICES PAYMENT (“MTSP”)
16.1 The Market Tested Services Payment for the Contract Year shall be calculated from the Full Service Commencement Date in accordance with the following formula:
MTSP = MTPDDSK + MTPSKFB + MTPIT + MTPUTIL
where:
MTPDDSK The Market Tested Payment (TLS) in respect of the transport of Contract Waste from Denby Dale Road TLS to South Kirkby Main Residual Waste Treatment Facility, as calculated in accordance with paragraph 16.2;
MTPSKFB The Market Tested Payment (RDF) in respect of the transport of RDF from South Kirkby Main Residual Waste Treatment Facility to the Ferrybridge Facility as calculated in accordance with paragraph 16.3;
MTPIT The Market Tested Payment (Fuel) in respect of fuel consumed by vehicles for moving Contract Waste within or between the Waste Management Facilities and Landfill Sites in the provision of the Service, as calculated in accordance with paragraph 16.4;
MTPUTIL The Market Tested Payment (Utilities) in respect of utilities, as calculated in accordance with paragraph 16.5;
16.2 Market Tested Payment (TLS) (MTPDDSK)
The Market Tested Payment (TLS) for the Contract Year shall be calculated in accordance with the following formula:
MTPDDSK = TCWDD x MTPRDDSK
where:
TCWDD The tonnage of Contract Waste which is transported from the Denby Dale Road TLS to the South Kirkby Main Residual Waste Treatment Facility in the relevant Contract Year;
MTPRDDSK The Market Tested Price per tonne (Indexed) for transporting the tonnage of Contract Waste
44
from the Denby Dale Road TLS to the South Kirkby Main Residual Waste Treatment Facility in the relevant Contract Year or prior to the first Market Testing Date, the Base Price of transporting Contract Waste from Denby Dale Road TLS to the South Kirkby Main Residual Waste Treatment Facility in the relevant Contract Year;
16.3 Market Tested Payment (RDF) (MTPSKFB)
The Market Tested Payment (RDF) for the Contract Year shall be calculated in accordance with the following formula:
MTPSKFB = ∑(BTn x CFSKFBn) x MTPRSKFB
where:
∑(BTn x CFSKFBn) The sum of (BT x CFSKFBn) for each Base Price Band from 1 to ‘n’ as set out in column 1 of the relevant table in Appendix 3
BTn The Adjusted Eligible Tonnage of Contract Waste in the relevant Contract Year falling within Base Price Band ‘n’ which will equal
the higher of:
(a) Zn – MTTn
(b)
Zn
The lower of:
(a) Maximum Tonnage Threshold for Base Price Band ‘n’, and
(b) the Adjusted Eligible Tonnage of Contract Waste in the relevant Contract Year
MTTn Minimum Tonnage Threshold for Base Price Band ‘n’
CFSKFBn The Conversion Factor for transporting Project RDF from the South Kirkby Main Residual Waste Treatment Facility to the Ferrybridge Facility for tonnage band n as set out in column 4 of Appendix 3;
MTPRSKFB The Market Tested Price per tonne (Indexed) for transporting Project RDF from the South Kirkby Main Residual Waste Treatment Facility to the Ferrybridge Facility in the relevant Contract Year
45
or prior to the first Market Testing Date, the Base Price of transporting Project RDF from the South Kirkby Main Residual Waste Treatment Facility to the Ferrybridge Facility in the relevant Contract Year;
16.4 Market Tested Payment (Fuel) (MTPIT)
The Market Tested Payment (Fuel) for the Contract Year shall be calculated in accordance with the following formula:
MTPIT = (MTPRD x D) + (MTPRDMIN x DDIFF) + (MTPRRD x RD) + (MTPRRDMIN x RDDIFF)
where:
MTPRD Market Tested Price per litre of diesel (Indexed) in the relevant Contract Year or prior to the first Market Testing Date, the Base Price of Diesel (Indexed) in the relevant Contract Year;
D the lower of:
- Actual Diesel, and
- Target Diesel
in the relevant Contract Year
MTPRDMIN the lower of:
- the Base Price of Diesel (Indexed), and
- the Market Tested Price per litre of diesel (Indexed)
in the relevant Contract Year
DDIFF the amount calculated by:
Target Diesel – D
in the relevant Contract Year
MTPRRD Market Tested Price per litre of red diesel (Indexed) in the relevant Contract Year or prior to the first Market Testing Date, the Base Price of Red Diesel (Indexed) in the relevant Contract Year;
RD the lower of:
46
- Actual Red Diesel, and
- Target Red Diesel
in the relevant Contract Year
MTPRRDMIN the lower of:
- the Base Price of Red Diesel (Indexed), and
- the Market Tested Price per litre of red diesel (Indexed)
in the relevant Contract Year
DRDIFF the amount calculated by:
Target Red Diesel – RD
in the relevant Contract Year
16.5 Market Tested Payment (Utilities) (MTPUTIL)
The Market Tested Payment (Utilities) for the Contract Year shall be calculated in accordance with the following formula:
MTPUTIL = MTPGAS + MTPRWATER + MTPRELEC
where:
MTPGAS The Market Tested Payment (Gas) in respect of gas consumed at the South Kirkby Main Residual Waste Treatment Facility, as calculated in accordance with paragraph 16.6;
MTPWATER The Market Tested Payment (Water) in respect of water consumed at the South Kirkby Main Residual Waste Treatment Facility, as calculated in accordance with paragraph 16.7;
MTPELEC The Market Tested Payment (Electricity) in respect of the fixed cost of electricity provision at the South Kirkby Main Residual Waste Treatment Facility, as calculated in accordance with paragraph 16.8;
16.6 Market Tested Payment (Gas) (MTPGAS)
47
The Market Tested Payment (Gas) for the Contract Year shall be calculated in accordance with the following formula:
MTPGAS = (TG x MTPRGAS) + MTPFIXGAS
where:
TG Target Gas as calculated in accordance with paragraph 13.3 in the relevant Contract Year
MTPRGAS The Market Tested Price per MWh (Indexed) for gas consumed at the South Kirkby Main Residual Waste Treatment Facility in the relevant Contract Year or prior to the first Market Testing Date, the Base Price of Gas in the relevant Contract Year;
MTPFIXGAS The Market Tested fixed cost of gas in respect of the provision of gas to the South Kirkby Main Residual Waste Treatment Facility in the relevant Contract Year or prior to the first Market Testing Date, the Base Price of Fixed Cost of Gas in the relevant Contract Year;
16.7 Market Tested Payment (Water) (MTPWATER)
The Market Tested Payment (Water) for the Contract Year shall be calculated in accordance with the following formula:
MTPWATER = MTPFIXWATER + (TWU x MTPRWATER) +
(TSU x MTPRSEW) + (TEU x MTPREFF)
where:
MTPFIXWATER The Market Tested fixed cost of water provision in respect of the South Kirkby Main Residual Waste Treatment Facility in the relevant Contract Year or prior to the first Market Testing Date, the Base Price of Fixed Cost of Water in the relevant Contract Year;
TWU The Target Water Usage
MTPRWATER The Market Tested Price per m3 (Indexed) for water usage at the South Kirkby Main Residual Waste Treatment Facility in the relevant Contract Year or prior to the first Market Testing Date, the Base Price of Water in the relevant
48
Contract Year;
TSU The Target Sewerage Usage
MTPRSEW The Market Tested Price per m3 (Indexed) for sewerage usage at the South Kirkby Main Residual Waste Treatment Facility in the relevant Contract Year or prior to the first Market Testing Date, the Base Price of Sewerage in the relevant Contract Year;
TEU The Target Effluent Usage
MTPREFF The Market Tested Price per m3 (Indexed) for effluent usage at the South Kirkby Main Residual Waste Treatment Facility in the relevant Contract Year or prior to the first Market Testing Date, the Base Price of Effluent in the relevant Contract Year;
16.8 Market Tested Payment (Electricity) (MTPELEC)
The Market Tested Payment (Electricity) for the Contract Year shall be calculated in accordance with the following formula:
MTPELEC = MTPEFIX
where:
MTPEFIX The Market Tested fixed cost in respect of the provision of electricity for the South Kirkby Main Residual Waste Treatment Facility or prior to the first Market Testing Date, the Base Price of Fixed Cost of Electricity in the relevant Contract Year;
49
17 RDF OFFTAKE FACILITY UPSIDE SHARE (“RDFO”)
50
51
52
18 EXCESS COMMERCIAL AND INDUSTRIAL PAYMENT
18.1 The Excess Commercial and Industrial Payment shall be calculated from the Initial Service Commencement Date.
18.2 In calculating the Excess Commercial and Industrial Payment the Excess Commercial and Industrial Rates included in Appendix 6 as at the Contract Date shall be used for the first two (2) Contract Years, save where the circumstances set out in paragraphs 18.2.3 and 18.2.4 of this Schedule 4 (Payment Mechanism) apply.
18.2.3 The Contractor and/or subcontractor is able to Handle a category of Excess Commercial and Industrial Tonnage (including through any Council Third Party Contracts novated/transferred from the Council to the Contractor and/or subcontractor at Initial Service Commencement Date) at a rate less than that included in Appendix 6 for the relevant category, in which case the relevant Excess Commercial and Industrial Rate will be the lower of the annual average of:
18.2.3.1 the actual rate incurred by the Contractor and/or subcontractor multiplied by , and
18.2.3.2 the rate included in Appendix 6 for the relevant category.
18.2.4 The Contractor and/or subcontractor is able to generate revenue from a category of Excess Commercial and Industrial Tonnage (including through Council Third Party Contracts novated/transferred from the Council to the Contractor and/or subcontractor at Initial Service Commencement Date) in which case the relevant Excess Commercial and Industrial Rate will be the actual rate received by the Contractor and/or subcontractor, net of any incremental costs (including. transport, multiplied by . For the avoidance of doubt where the Excess Commercial and Industrial Rate relates to revenue/income it shall show as a negative amount.
18.3 For the third and each subsequent Contract Year the Contractor shall prepare a proposal in respect of an update to the Excess Commercial and Industrial Rates included in Appendix 6 and submit it to the Council no later than nine (9) Months before the start of each relevant Contract Year. The Parties agree and acknowledge that the proposed Excess Commercial and Industrial Rates (which for the avoidance of doubt may be negative) shall be set at a level which covers the Contractor’s reasonable costs of Handling a tonne of each category of Excess Commercial and Industrial Tonnage. The proposed Excess Commercial and Industrial Rates provided by the Contractor shall:
53
18.3.1 be provided on an open book basis and be accompanied by an explanation setting out how the rates have been calculated for each waste type;
18.3.2 not include recovery of any amounts which have already been recovered through the payment by the Council of any other component of the Unitary Charge, and
18.3.3 not be in excess of the rates charged by the Contractor to any third party for the Handling of Non-Contract Waste of the same or similar waste type.
18.4 The Parties shall meet as reasonably necessary following the receipt by the Council of the Contractor's proposal pursuant to Clause 18.3 in order to discuss and agree (acting reasonably) by no later than three (3) Months before the start of each Contract Year, the Excess Commercial and Industrial Rates which are to be included in Appendix 6 for use in the following Contract Year. Where the Parties are unable to agree the Excess Commercial and Industrial Rates by three (3) months prior to the start of the next Contract Year either Party may refer the matter to the Dispute Resolution Procedure.
18.5 The Excess Commercial and Industrial Payment shall be calculated in accordance with the following formula:
ECIP = ∑(ECITc x ECIRc) where:
∑(ECITc x ECIRc) The sum of (ECITc x ECIRc) for each category of Excess Commercial and Industrial Tonnage as set out in Appendix 6
ECITc The Excess Commercial and Industrial Tonnage in the relevant Contract Year falling within that category ‘c’ which has triggered the Excess Commercial and Industrial Payment
ECIRc The Excess Commercial and Industrial Rate for the category ‘c’
18.6 The Contractor shall not have an exclusive right to any Contract Waste which, were it to be delivered to the Contractor, would fall within the definition of Excess Commercial and Industrial Tonnage.
54
19 COMMISSIONING PAYMENT
19.1 The Commissioning Payment shall be calculated during the Commissioning Payment Period in accordance with the following formula:
CP = CT X CR
CT The Commissioning Tonnage
CR per tonne
55
20 ADDITIONAL GUARANTEED TPI PAYMENT
56
57
58
59
21 GLASSHOUGHTON ABATEMENT
21.1 Where on the Full Service Commencement Date, the Practical Completion Certificate has not been issued for Glasshoughton HWRC, the Contractor shall be liable for the Glasshoughton Abatement from the Full Service Commencement Date until the date on which the Practical Completion Certificate has been issued for the Glasshoughton HWRC.
21.2 The Glasshoughton Abatement shall be calculated in accordance with the following formula:
GHA = GHDP x GHDD
where:
GHDP
GHDD where paragraph 21.1 applies, each day in the relevant Month where following the Full Service Commencement Date the Practical Completion Certificate has not been issued for Glasshoughton HWRC
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APPENDIX 1
NNDR Sites
Sites
Castleford Site
Ferrybridge Site
Fitzwilliam Site
South Kirkby Manface Quarry Site
Ossett Site
Welbeck Site
Glasshoughton Site
Denby Dale Road Site
South Kirkby Main Site
Temporary TLS Site/Temporary HWRC Site
0
APPENDIX 2
Base Price Bands used in calculating the Base Payment
Initial Service Period
Base Price Band
Minimum Tonnage
Threshold
Maximum Tonnage
Threshold
Base Price per Tonne (£) within Base Price Band
(Indexed)
Third Party Income Factor (Other) (£) within Base Price Band (Indexed)
Landfill Target for Active Waste
Landfill Target for Inactive
Waste
Band 1
Band 2
Band 3
1
Full Service Period
Base Price Band
Minimum Tonnage
Threshold
Maximum Tonnage
Threshold
Base Price per Tonne (£) within Base Price Band
(Indexed)
Unindexed element of Base Price per Tonne (£) included in Base Price (for
information)
Third Party Income Factor
(Other) (£) within Base Price Band (Indexed)
Landfill Target for
Active Waste
Landfill Target
for Inactive Waste
Band 1
Band 2
Band 3
0
APPENDIX 3
CONVERSION FACTORS
Base Price Band
Minimum Tonnage Threshold
Maximum Tonnage Threshold
CFSKFBn CFGASn CFELECn
Band 1
Band 2
Band 3
0
APPENDIX 4
Specific Waste Items
Specific Waste Item Unit
Specific Waste Item Price in first Contract Year and subject to Clause
62 (Market Testing) thereafter
Specific Waste which the Contractor is requested to Handle by the Council, on an ad hoc basis
Animal Carcases
Collection from HWRCs for the Recycling of Lead Acid Vehicle Batteries
per tonne
Collection from HWRCs for the Recycling of Domestic Batteries
per tonne
Landfill of white cement resin bonded Asbestos Waste
(Note: part of WMML Welbeck Contract Interim II)
per tonne
Disposal of Clinical Waste per tonne
Collection from HWRCs for the Disposal of Household/Garden chemicals
Collection from HWRCs for the Re-Use of Paints and Varnishes
Collection from HWRCs for
1
Specific Waste Item Unit
Specific Waste Item Price in first Contract Year and subject to Clause
62 (Market Testing) thereafter
Disposal of Paints and Varnishes
Collection from HWRCs for Recycling of Tyres
per small de-rimmed tyre
per rimmed or 4x4 tyre
per small truck tyre
per large truck tyre
Collection from HWRCs for Reuse of Used gas bottles
per collection
Collection from HWRCs for Recycling of Used Gas Bottles which cannot be Reused
per collection
Collection from HWRCs for Recycling of Used Oils
per collection
2
APPENDIX 5
Mileage Deduction Tables CTC Table
Vehicle Type £/Mile Indexed
7,500 KG REFUSE COLLECTOR/LIFT
26,000 KG REFUSE COLLECTOR/LIFT
7,500 KG TIPPER (CAGED/LIFT)
18,000 KG SKIPLOADER
32,000 KG SKIPLOADER REAR END
STREETSWEEPER
RORO
CFC Table
Vehicle Type CFCFFC
7,500 KG REFUSE COLLECTOR/LIFT/ADDITIONAL EXTERNAL HIRE 7,500 KG REFUSE COLLECTOR
26,000 KG REFUSE COLLECTOR/LIFT/ ADDITIONAL EXTERNAL HIRE 26,000 KG REFUSE COLLECTOR
7,500 KG TIPPER (CAGED/LIFT)/ ADDITIONAL EXTERNAL HIRE 7,500 KG TIPPER
18,000 KG SKIPLOADER/ADDITIONAL EXTERNAL HIRE18,000 KG SKIPLOADER
32,000 KG SKIPLOADER REAR END/ADDITIONAL EXTERNAL HIRE 32,000 KG SKIPLOADER REAR END
STREETSWEEPER
RORO
3
CSC Table
Staff £/Hour Indexed
Time Time & 1/3
Time & 2/3
DRIVER
DRIVER PLUS 1 LABOURER
DRIVER PLUS 2 LABOURERS
SUPERVISOR
OC Table
Description Cost
Additional Driver as per Table CSC
Additional Driver plus 1 Labourer as per Table CSC
Additional Driver plus 2 Labourers as per Table CSC
Supervisor as per Table CSC
Additional Vehicle as per Table CTC + CFC
Additional Agency Staff Driver
Additional Agency Staff Labourer
Additional External Hire 7,500kg Refuse Collector
Additional External Hire 26,000kg Refuse Collector
Additional External Hire 7,500kg Tipper
Additional External Hire 18,000kg Skiploader
Additional External Hire 32,000kg Skiploader Rear End
4
APPENDIX 6
Excess Commercial and Industrial Rates during first two Contract Years
Commercial Dry Recyclable Waste
Commercial Green Waste
Commercial Residual Waste
Commercial Segregated Waste - Card
Commercial Segregated Waste - Paper
Commercial Segregated Waste – Scrap Metal
Commercial Segregated Waste – Timber
Industrial Waste
5
APPENDIX 7
Forecast Commercial and Industrial Tonnage
Contract Year Commercial and Industrial
Tonnage
2012/13
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
2024/25
2025/26
2026/27
2027/28
2028/29
2029/30
2030/31
2031/32
2032/33
6
Contract Year Commercial and Industrial
Tonnage
2033/34
2034/35
2035/36
2036/37
2037/38
2038/39
2039/40
7