Further to the approved Cabinet report on the 5th October this report seeks approval to award the new waste collection contact.

Report to follow. 

The Cabinet member for community services and assets introduced the report and highlighted that on completion of the procurement process a new contract will be awarded.  Confirmed the new contract includes options and flexibility for the Council to phase the introduction of the new collection model and each element will be subject to a business case and a subsequent decision.  It was noted that the new contract will commence on 1 September 2024 with an initial term of 8 years with the option to extend by a further 12 years.  It will commence on the current collection model, meaning there will be no immediate changes for residents or businesses. In respect of the optional chargeable garden waste service the public consultation responses will be reviewed to support the business case for a subsequent decision.  Noted that further information is awaited from the Government’s waste reforms regarding the introduction of the food waste service. 

There were no comments from Cabinet members. 

Group leaders gave the views of their groups. There was support for the new waste collection service but concern was expressed regarding Herefordshire’s low recycling rates and if fly tipping will increase if the contract is too rigid.  More information should be provided to businesses and residents regarding what is recyclable in the interim. Clarification was sought regarding the Council’s current recycling rate and how is it going to be improved, what is the time frame for implementing the enhanced service and what protection does the Council have when new legal obligations are set when the Council is already committed to a contract. 

In response to the queries it was noted fly tipping will be monitored and despite how the waste contract is handled, the Council will try and remove fly tipping from the County.  It was acknowledged that the Council will encourage households to recycle and has the ambition to increase the information provided.  It was confirmed that the current recycling rate is 39.5% as of November 2023 and it was noted that not all Councils are the same, for example Herefordshire Council’s food waste goes to energy from waste not landfill but not all Council’s do this at this point.  Clarified that enhanced elements of the waste contract cannot be brought forward as the Council is awaiting confirmation of the new obligations from Government.  Confirmed that anticipated future changes are built into the contract and are benchmarked to avoid unfair price increases by the provider.

It was unanimously resolved that;

a)    Authority is delegated to the Corporate Director for Economy and Environment in consultation with the Cabinet Member Community Services and Assets, Cabinet Member for Environment and the Director of Resources and Assurance to award the contract to the preferred bidder for the new waste collection service under the existing collection model, within the proposed 2024/25 annual revenue budget, for an initial term of 8 years, including options to extend by up to a further 12 years (following budget approval and conclusion of the procurement process);

b)    Authority is delegated to the Corporate Director for Economy and Environment in consultation with the Cabinet Member Community Services and Assets, Cabinet Member for Environment and the Director of Resources and Assurance to authorise expenditure for the essential depot improvements, service enhancement and new receptacles essential for the standard service, within the approved £5.8m capital budget for the standard collection service within the new contract;

c)    To delegate authority to the Corporate Director for Economy and Environment to place the order with the preferred bidder for the new vehicle fleet prior to the contract award with the preferred bidder in order to meet the vehicle lead in times and ensure the new vehicles are available for the new Contract Commencement Date;

d)    To authorise the expenditure up to the value of £250,000 from the Waste Revenue Reserve to fund mobilisation;

e)    Cabinet approves the extension of the existing Waste Collection contract with FCC Environment from 2 June 2024 to 31 August 2024 to ensure alignment with the start of the new waste collection contract on 1 September 2024; and

f)      Delegate all operational decisions in order to implement the above recommendations to the Corporate Director for Economy and Environment.