Common use of Future Planning Clause in Contracts

Future Planning. 5.1. Cabinet Committee Members may recall that the Environment and Cabinet committee endorsed this approach in 2017 of sharing savings which are entirely based upon performance. 5.2. Based upon current levels of performance, this new approach will lead to further savings for KCC, particularly within the East Kent District Council partnership when the existing legal agreements finishes, as this currently makes fixed enabling payments by KCC - regardless of actual performance or savings realised. This means the risk currently sit with KCC rather than the party with the ability to manage the risk. 5.3. Discussions are already underway with the East Kent (EK) Partnership, where it has been made clear that any future payments made by KCC will only be paid to recognise actual cost savings realised. This partnership covers Canterbury City Council, Dover District Council, Thanet District Council and Folkestone and Hythe District Council. The agreement was negotiated in 2009. 5.4. This EK Partnership has not realised its targeted levels of 50% recycling. In 2016/17 they achieved 41%. Average fixed enabling payments paid by KCC to each district are £708,157. 5.5. Mid Kent Waste Partnership - Maidstone, Ashford and ▇▇▇▇▇ - was negotiated in 2012 and whilst following the same principles, the payments are much less than those paid in East Kent and this partnership performs reasonably well with KCC. The targeted recycling performance was 48.2% and in 2016/17 45.9% was achieved. This Partnership agreement ends in 2023, average fixed district payments are £196,677 – substantially less than East Kent. 5.6. Dartford and Sevenoaks have decided not to adopt kerbside collection schemes that maximise recycling, currently preferring to retain weekly residual waste collections. In 2017 / 18 Dartford recycled 24% of it kerbside waste and Sevenoaks achieved 33%.

Future Planning. 5.1. 5.1 Cabinet Committee Members may recall that the Environment and Cabinet committee endorsed this approach in 2017 of sharing savings which are entirely based upon performance. 5.2. 5.2 Based upon current levels of performance, this new approach will lead to further savings for KCC, particularly within the East Kent District Council partnership when the existing legal agreements finishes, as this currently makes fixed enabling payments by KCC - regardless of actual performance or savings realised. This means the risk currently sit with KCC rather than the party with the ability to manage the risk. 5.3. 5.3 Discussions are already underway with the East Kent (EK) Partnership, where it has been made clear that any future payments made by KCC will only be paid to recognise actual cost savings realised. This partnership covers Canterbury City Council, Dover District Council, Thanet District Council and Folkestone and Hythe District Council. The agreement was negotiated in 2009. 5.4. 5.4 This EK Partnership has not realised its targeted levels of 50% recycling. In 2016/17 they achieved 41%. Average fixed enabling payments paid by KCC to each district are £708,157. 5.5. 5.5 Mid Kent Waste Partnership - Maidstone, Ashford and ▇▇▇▇▇ - was negotiated in 2012 and whilst following the same principles, the payments are much less than those paid in East Kent and this partnership performs reasonably well with KCC. The targeted recycling performance was 48.2% and in 2016/17 45.9% was achieved. This Partnership agreement ends in 2023, average fixed district payments are £196,677 – substantially less than East Kent. 5.6. 5.6 Dartford and Sevenoaks have decided not to adopt kerbside collection schemes that maximise recycling, currently preferring to retain weekly residual waste collections. In 2017 / 18 Dartford recycled 24% of it kerbside waste and Sevenoaks achieved 33%.