Meeting documents
Cabinet
Wednesday, 7th December, 2005
Appendix 2 - Market Test of Waste Services
The Waste Strategy Project Board of 6th October 2005 approved the market test project plan and adverts have been placed seeking expressions of interest from industry to take part in a "soft" market test of the Council's front line waste services. (A "soft" market test engages prospective suppliers in a debate on how the service might be provided in the future. This means we could pursue a more formal tendering process at a later stage in the light of the outcome of this debate). Prequalification questionnaires will be returned by 29th November followed by interviews with selected candidates. This process will inform the development of new service specifications and the recommendation of specific delivery mechanisms.
Background
The Best Value Review of waste management services carried out in 2002 recommended that in-house service provision should be market tested in 2006 to ensure that we are delivering Best Value. In addition, the contract with ECT for the delivery of recycling services expires in 2006.
All services are currently operated in-house with the exception of the green box recycling collection service and the bring bank recycling service, which are operated by ECT Recycling Ltd. Our refuse disposal contracts are with WRG (Waste Recycling Group) - rail-haul to Calvert landfill Bucks, and Wyvern Waste - road-haul to Dimmer landfill Somerset. (These expire in 2008, but have the option for extension).
The requirement to market test presents the opportunity to re-specify the services that we require. New services will need to be developed to meet landfill diversion targets detailed in our Waste Strategy. Councils have been granted new powers to develop trading organisations, and this change provides scope for considering a wider range of partnering opportunities.
The development and procurement of new service specifications is a significant project designed to build on our previous successes in waste management and recycling.
Scope
The service specifications are to include:
1. Refuse collection
2. Trade waste disposal collections
3. Trade waste recycling collections
4. Bulky waste collection & reuse/recycling
5. Recycling collections
6. Composting collections
7. Kitchen waste collections
8. Recycling Bring Banks
9. Mini recycling centres
10. Recycling Centre Operations
11. Transfer Station Operations
12. Haulage to landfill/treatment/recycling facilities
Key Outcomes
1. A market test of current service specifications. Market led proposals for alternative waste solutions may be presented for consideration
2. The award of contract/contracts for the delivery of the above services
3. The implementation of new service specifications in 2007
4. Continuous improvement in service delivery to achieve Waste Strategy objectives
What are the Market Test Project drivers?
· The adoption of the Council's Waste Strategy (targets + action plan)
· Best value obligation to market test services in 2006
· Expiration of the ECT contract
· Environmental legislation in terms of the Landfill Allowance Trading Scheme (LATS). This new legislation sets all local authorities targets for the annual reduction in the amount of biodegradable municipal waste that it landfills. Exceeding the annual targets incurs a penalty of £150 for each tonne in excess of the target.
· The requirement to market test presents the opportunity to re-specify the services that we require. New services will need to be developed to meet landfill diversion targets detailed in our Waste Strategy.
· We have reviewed our current collection methodology and have identified short term improvements to existing service provision. These changes alone will not meet the targets and there are issues which require further debate and discussion in terms of major reconsideration of the collection systems and the use of charges/enforcement to influence behaviour and meet targets.
· The affordability of service specification options