In July the cabinet agreed to establish a LATCO to deliver waste collection and grounds maintenance as a way of cutting costs by an estimated £1m a year.
The council owns a 20 per cent share in Enterprise Liverpool, with Amey holding the remaining 80 per cent share. It is recommended that the council acquire the remaining share and the company's existing fleet as the quickest and most economical way of establishing a LATCO. The cabinet is considering the proposal today (30 October).
Councillor Steve Munby, who is Cabinet Member for Neighbourhoods, said: "These legal agreements allow us to move to the new company in a quick and efficient way. We are confident that the changes we have agreed with the workforce will deliver savings of £1m a year in running costs and help us reach our recycling target of 55 per cent by 2020.
"The icing on the cake is that we will bring the grounds maintenance contract into the LATCO three years before the contract would have finished. This is costing us £3 million a year at present and I believe there is scope for considerable savings."
Amey has agreed to waive any claims arising from the loss of income resulting from the early termination of the grounds maintenance contract.