ELMBRIDGE BOROUGH COUNCIL

CABINET

Report of a special meeting held on 10th February, 2003

* A.J. Hopkins - Leader

* / J. Bartlett / * / H.G. Chubb
V.G. Eldridge / * / R. Green
* / Mrs. R.J.M. Lyon / E. Mallett
* / E. Rowe / * / M. Schofield
* / Mrs. J.R. Turner

(* Denotes attendance)

(M. Bennison, P. Heaney, P. Parker, T. Stewart and G. Winton were also present)

1. / DECLARATIONS OF INTEREST
There were no declarations of interest.
2. / EXCLUSION OF PUBLIC
RESOLVED that the public be excluded from the meeting during the consideration of the following items in view of the likelihood of the disclosure of exempt information of the description specified:
Minute no. / Item / Description of Exempt Information
(Schedule 12A)
5. / Waste Collection Recycling and Street Cleaning Contract – Tender Evaluation / 8 & 9
RECOMMENDATIONS TO COUNCIL
3. / WASTE COLLECTION RECYCLING AND STREET CLEANING CONTRACT – TENDER EVALUATION
(Business Policy Ref: EE1-EE3, EG1-EG6, EB1)
(Below is a brief summary of the matters discussed under this item. In view of the nature of the discussion which contained exempt information as defined under Paragraphs 8 & 9 of Part 1 of Schedule 12A of the Local Government (Access to Information) Act, 1985, a copy of the full Minute is appended [at the back of these Minutes] as Minute No. 5 for Members of the Council only.)
On consideration of the evaluations of the tenders received, the Cabinet made recommendations on the proposed tenderer for the Waste Collection, Recycling and Street Cleaning Contract as outlined in Part II of this report.
MATTERS OF REPORT
4. / WASTE COLLECTION RECYCLING AND STREET CLEANING CONTRACT – TENDER EVALUATION INTERIM REPORT
(Business Policy Ref: EE1-EE3, EG1-EG6, EB1)
At its meeting on 16th January, 2003, the Environmental Affairs Overview and Scrutiny Committee considered a report on Waste Collection Recycling and Street Cleaning Contract – Tender Evaluation Interim Report and made recommendations to Cabinet accordingly.
The Cabinet concurred with these recommendations and
RESOLVED that:
(a)the expansion of the Weybridge trial kerbside recycling scheme Borough-wide together with the phased introduction of kerbside glass collection be supported;
(b)should funding not be available for a comprehensive roll out, a phased introduction be considered.

______

The meeting commenced at 6.00 p.m. and concluded at 7.40 p.m.

A.J. HOPKINS

Leader of the Council

Committee Officer
Miss C. Bartholomew
Other Officers in attendance
M. Lockwood
D.R. Wiltshire
Ms. B. Spittle
Miss. F. Keegan
R. Gosnold
A. Jeziorski
Ms. A. Gale / - / Chief Executive
Director of Planning and Environmental Services
Director of Community Services
Borough Solicitor
Chief Accountant
Head of Environmental Care
Finance Manager
NOT FOR PUBLICATION BY VIRTUE OF PARAGRAPHS 8 & 9 OF PART 1 OF SCHEDULE 12A TO THE LOCAL GOVERNMENT (ACCESS TO
INFORMATION) ACT 1985
ELMBRIDGE BOROUGH COUNCIL
CABINET
Minutes of a special meeting held on 10th February, 2003
RECOMMENDATIONS TO COUNCIL
5. / WASTE COLLECTION RECYCLING AND STREET CLEANING CONTRACT – TENDER EVALUATION
(Business Policy Ref: EE1-EE3, EG1-EG6, EB1)
As part of the Best Value Review of Waste Collection Recycling and Street Cleaning services, it was agreed that the Contract be awarded to the tender which was most economically advantageous to the Council, taking into account not only price, but technical merit, quality and service deliverability. The weighting of the evaluation was agreed at 80% on price and 20% on quality.
Three of the five tenderers progressed to the final stage of evaluation, (the other two were eliminated as they were excessively priced), which consisted of detailed evaluation and consideration of each tender.
In considering the non financial merits of the three remaining tender submissions, the evaluation group gathered evidence from site visits to other authorities, formal presentations and interviews, answers to specific written questions and detailed documentation submitted, in particular, their method statements. The results of the quality evaluation were outlined in the agenda.
For the financial evaluation, the rates contained in each tender were entered in to four different service models to determine the notional cost of the tender for waste collection, recycling and street cleaning services over the seven year period of the Contract. The models were devised to accord with possible service developments and contract changes. The results of the financial evaluation were outlined in the agenda.
The combined totals of the points awarded for quality and price resulted in Cleanaway scoring the highest for each service model. The evaluation group therefore recommended Cleanaway as the preferred bidder. Members of the Cabinet who had been in the evaluation group emphasised how impressed they had been with Cleanaway throughout the evaluation process.
The Head of Environmental Care informed the Cabinet of points of clarification received from Cleanaway which addressed several issues raised by the evaluation group:-
  • Cleanaway had indicated that they would move from 100 to 20 missed collections per 100,000 within six months which was lower than that achieved by the current contractor;
  • Cleanaway would be able to decrease their tender price for glass collection with a reduction in the number of vehicles used from five to four; to be agreed.
  • Cleanaway would like to undertake limited improvements to the Mill Road depot depending on service delivery options;
  • Cleanaway had indicated they would decrease the cost of the special collections
The Head of Environmental Care confirmed that all staff who worked for the current contractors would be offered employment with the new contractor. In response to a query, the Head of Environmental Care informed the Cabinet that Cleanaway would be able to use smaller vehicles and machinery to access narrow or heavily parked roads. They would also continue with the same ‘rounds’ for collection for the first three months so as to make a full assessment of the area.
A principal recommendation arising from the Best Value Review was the introduction of a fortnightly wheeled bin recycling service which it was anticipated would increase the Council’s recycling rate between 20% - 25%. The collection costs (£195,100 revenue in 2003/04) were based on transporting the collected waste to the sorting facility at Colnbrook, Berkshire, as was currently the case with the Weybridge trial scheme. Mole Valley District Council was actively pursuing the development of a similar facility at its site in Leatherhead which was hoped to be operational in 2004/05. This would reduce collection costs by approximately £90,000 (revenue) in a full year.
A further recommendation from the Best Value Review was the introduction of a pilot fortnightly (mixed) glass recycling collection service as funded from the award of £238,000 from DEFRA. This award included the purchase of two collection vehicles and recycling boxes in 2002/03. The first stage of implementing the pilot scheme was completed in January 2003, the second and final stage of the pilot scheme was planned for March 2003. The Best Value Review recommended that the scheme be introduced to the remainder of the Borough if it proved successful.
In addition, the results of a consultation exercise on Council Tax levels revealed that 61% of local people who responded supported the introduction of a borough wide recycling scheme and accepted the additional Council Tax increase that would result.
Mindful of the significant revenue growth requirements of implementing wheeled bin and glass recycling and the Government’s recycling targets, a two stage implementation of these services was recommended:-
Phase 1 – implementation during 2003/04 of wheeled bin recycling service to a further 22,500 households (with estimated revenue costs as outlined in the agenda and Capital costs funded by DEFRA) and continuation of both stages of the pilot glass collection service to 20,000 households (estimated capital and revenue costs outlined in the agenda).
Phase 2 – following an implementation pause in 2004/05, the implementation in early 2005/06 of the wheeled bin recycling service to the remaining 22,500 households and implementation of the glass collection service up to a further 20,000 households (estimated capital and revenue costs as outlined in the agenda).
It was agreed that as far as possible, and subject to discussions with the new contractor, those householders not receiving a second recycling wheeled bin in the coming year should receive a recycling box enhancement.
The Best Value Review recommended that a charging structure be set for the Council’s special collection service, including the level of subsidy, which was currently £28,000 per annum. The Best Value Review also recommended consideration be given to (i) the introduction of a reduced charging scheme for residents in financial hardship, (ii) an assisted collection service for wheeled bin recycling collections in addition to the assisted collection offered to residents who were unable to wheel their refuse bin, and (iii) the retention of the Civic Amenity service at Waterside Drive.
On consideration of the above issues, the Cabinet agreed to
(i)retain the Civic Amenity Service at Waterside Drive until new recycling services were introduced (budget provision had been made in the base budget)
(ii)introduce an assisted collection service for recycling (£2,900 in 2003/04, full year cost £3,500)
(iii)retain the current subsidy for special collections thus increasing charges to £22 for one item and £28 for two or more
(iv)introduce a financial hardship subsidy for special collection at a cost of £800 in 2003/04, full year cost £800
RECOMMENDED: THAT
(A)CLEANAWAY BE ACCEPTED AS THE COUNCIL’S PREFERRED CONTRACTOR FOR THE WASTE COLLECTION RECYCLING AND STREET CLEANING CONTRACT BASED ON THE APPROVED EVALUATION PROCEDURE FOR THIS CONTRACT;
(B)APPROPRIATE BUDGET PROVISION BE MADE FOR CURRENT SERVICE LEVELS IDENTIFIED IN THE AGENDA;
(C)THE FOLLOWING OPTIONS FOR ENHANCING THE RECYCLING SERVICES BE AGREED AND APPROPRIATE FINANCIAL PROVISION BE MADE;
(I)TWO PHASE IMPLEMENTATION OF WHEELED BIN RECYCLING SERVICE AND GLASS COLLECTION SERVICE BE APPROVED, AS OUTLINED IN THE AGENDA, AT THE FOLLOWING COSTS.
Revenue / 03/04 / 04/05 / 05/06 / 
Growth
£ / Band
“D”
£ / Growth
£ / Band
“D”
£ / Growth
£ / Band
“D”
£ / Growth
£ / Band
“D”
£
Phase 1:
Wheeled Bin
Glass (box) / 93,000
134,000 / 1.57
2.26 / 251,200
134,000 / 4.24
2.26 / 251,200
134,000 / 4.24
2.26 / 251,200
134,000 / 4.24
2.26
227,200 / 3.83 / 385,200 / 6.50 / 385,200 / 6.50 / 385,200 / 6.50
Phase 2:
Wheeled Bin
Glass (box) / -
- / -
- / 293,800
172,800 / 4.96
2.92 / 280,500
166,800 / 4.74
2.82
- / 466,600 / 7.88 / 447,300 / 7.56
227,200 / 3.83 / 385,200 / 6.50 / 851,800 / 14.38 / 832,500 / 14.06
Capital
Phase 1:
Wheeled Bin / DEFRA / - / - / -
Phase 2:
Wheeled Bin
Glass (box) / 20,000 / 267,000
20,000 / 0 / 267,000 / 0
Estimated Recycling
Rates / >15% / >18% / >23% / >24%
(D)OFFICERS BE AUTHORISED TO PROCEED WITH STAGE TWO OF THE PILOT GLASS COLLECTION SCHEME, AS FUNDED BY DEFRA;
(E)OFFICERS BE AUTHORISED THE COMMENCE PRE-CONTRACT NEGOTIATIONS WITH MOLE VALLEY DISTRICT COUNCIL AND ITS PROPOSED SERVICE PROVIDER WITH REGARD TO THE PROCESSING OF WASTE FROM THE PROPOSED ENHANCED RECYCLING SERVICE;
(F)SPECIAL COLLECTION SERVICE SUBSIDY AND OTHER SERVICE ISSUES AS OUTLINED BELOW BE AGREED AND APPROPRIATE FINANCIAL PROVISION BE MADE;
(II)THE SUBSIDY FOR SPECIAL COLLECTION CHARGES BE MAINTAINED AT ITS CURRENT LEVEL, WITH THE CHARGES THEREFORE AMENDED TO £22 (1 ITEM) AND £28 (2 – 4 ITEMS);
(III)ASSISTED COLLECTIONS FOR RECYCLING BE INTRODUCED AT A COST OF £2,900 IN 2003/04 AND FULL YEAR COST OF £3,500;
(III) FINANCIAL HARDSHIP ALLOWANCES BE INTRODUCED AT A REDUCTION OF 30% FOR SPECIAL COLLECTION SERVICE.

- 1 -