Issue - decisions

Waste Procurement

22/02/2022 - Waste Collection Contract

The Cabinet considered a report of the Executive Director (Neighbourhoods and Environment) presenting two options for securing the future service provision of the Recycling, Waste and Cleansing Contract, with the express aim of supporting the Council’s declared Climate Emergency, the Southend 2050 Ambition and meeting the changing requirements of environmental legislation and the growing environmental demands of the Borough’s residents.

 

During consideration of the report the Cabinet resolved to go into Part 2 to enable questions to be raised on the commercial aspects of the matter.

 

Resolved:

 

1. That a Recycling, Waste and Cleansing contract be procured for a period to be determined via the competitive dialogue process (Option B).

 

2. That an early market engagement exercise be undertaken to explore:

 

a) The viability of maintaining a full weekly service whilst still delivering the aims and parameters set out in Resolution 4 below.

 

b) The market’s appetite for any potential contract.

 

3. That the findings of the early market engagement exercise be used to inform the draft contract specification/requirements which will then be submitted to Cabinet for review/approval.

 

4. That the aims and requirements of any new contract should:

 

·       Recognise the requirement for bidders to take into account the Council’s preference for a weekly collection service;

·       Recognise the declaration by the Council of a Climate Change Emergency in 2019 and the need to significantly reduce residual waste;

·       Comply with the Environment Act 2021 and its promulgated requirements for recycling (likely to be 65% by 2035) and other environmental matters and adaptability to further changes in legislation;

·       Satisfy the financial imperatives for the Council to ensure value for money principles are adhered to;

·       Follow the principles of the Waste Hierarchy;

·       Maximise the use of zero or low emission plant and fleet in the operation of the services;

·       Provide the best customer and digital experience for residents; and

·       Consider the inclusion of a commercial waste offering.

 

5. That all bidders be required (in the second tier of requirements) to use to the full their experience and knowledge of the industry and future trends in service provision, both in the UK and abroad, in order to show that they have fully considered alternative operating regimes and to give clear reasoning in their bids for their chosen submissions, as opposed to those other regimes.  In addition bids will be required to respond to the following:

 

·       The maximisation of the use of sustainable fuels and vehicles;

·       The employment of local residents;

·       A fully intuitive education programme in respect of recycling and related environmental procedures;

·       A comprehensive assessment of the need for social protection systems to be put in place for vulnerable residents; and

·       A comprehensive interpretation of the nature of Southend Borough and its different residential aspects and needs.

 

6. That an indicative annual budget envelope for the contract be established and forms part of the invitation to tender.

 

7. That authority be delegated to the Executive Director (Neighbourhoods and Environment) and Executive Director (Finance and Resources), in consultation with the Cabinet Member for Environment, Culture, Tourism and Planning, to negotiate a short term extension to the Veolia contract from October 2023, if required, to enable the Council to maintain a waste collection service until the procurement process for a new contract has concluded and that this is contained within the financial sums identified in the report.

 

8. That the outcome of the tender process and its associated financial implications be reported to a future Cabinet meeting with a recommendation as to the award of the contract.

 

9. That up to £1.5m be allocated from the Waste reserve to support the one-off costs of the procurement.

 

10. That it be noted that any additional financial costs for the extension of the current Waste contract from October 2023 are reflected in the budget setting for 2023/24.

 

11. That it be noted that the current levels of recycling are significantly below the future targets set by the Government, and the significant environmental and economic benefits that reducing residual waste, and increasing recycling will bring to the Borough.  (Action is therefore required to secure a future service provision that is capable of meeting the Council’s own targets and obligations).

 

12. That authority be delegated to the Executive Director (Neighbourhoods and Environment) and the Executive Director (Finance and Resources), in consultation with the Cabinet Member for Environment, Culture, Tourism and Planning, to:

 

a) Procure sector specific engagement and communications support, at a cost of up to £250,000 to run a dedicated and comprehensive engagement, information and education programme to support the aims of Option B to be funded by the Waste reserve.

 

b) Employ a Contract Manager at a cost of £75,000pa to support the management and effective performance of the contract by the Contractor to be funded by the Waste Reserve in 2022/23 and for consideration as part of the budget setting for 2023/24 onwards.

 

13. That cross-party Councillor oversight of the procurement process be through the Environment, Culture, Tourism and Planning Working Party.

 

Reasons for Decision:

 

1. To evidence that best value has been achieved by undertaking a thorough market exercise;

 

2. To engage with the market to properly consider the viability of maintaining the existing service model into the future, whilst delivering against the Councils stated aims and objectives;

 

3. To explore alternative collection models and innovative solutions for Southend other than is currently offered under Option A which could better meet the needs of residents;

 

4. To enable greater engagement with members and the residents and provide greater transparency in securing a future service which touches and concerns every household in the Borough; and

 

5. To explore solutions that could limit the commercial risk to the Council

 

Other Options:

 

As set out in the submitted report.

 

Note: This is an Executive Function

Called-in to: Place Scrutiny Committee

Cabinet Member: Cllr Mulroney


 

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