Agenda item

This report concerns the contract award for the Integrated Street Cleansing, Waste Collections and Winter Maintenance Services Contract (‘The Integrated Contract’). The report summarises the process undertaken in tendering this contract along with the proposed service changes to be included and, following completion of the evaluation of tenders, seeks authority to award the final contract.

Cabinet RESOLVED:

(1)      To note the results of the public consultation on future waste collections and street cleansing services held in summer 2022 and the results of the alternate weekly twin stream recycling trial held in autumn 2022.

(2)      To agree the introduction of an intelligence-led approach to street cleansing from 1 July 2023 and an alternate weekly twin stream recycling collection service for street level households from 1 October 2023, together with other specification changes as set out in section 7 of the report.

(3)      To note that modelling would be undertaken in the new year to determine whether any alternate weekly twin stream recycling collection rounds might be better served using an additional wheelie bin for the storing of paper/card rather than a sack; and that such changes to specific rounds could be introduced subject to a proven business case once the new service goes live, as the collection arrangement provided flexibility.

(4)      To approve the award of the Integrated Contract to Veolia Environmental Services UK Ltd for an initial contract period of eight years, with an option to extend for a further eight year contract period in the estimated sum of £17.13m for 2023/24, circa £137m over the initial 8-year term of the contract or circa £274m over the full 16-year contract period.

(5)      To approve the allocation of capital through prudential borrowing of a sum of £21m, comprising £10.8m to finance the purchase of the fleet (including Public Realm Contract rollover assets) required for Year 1 of the contract and a further in principle allocation of £10.2m for vehicle replacements over the remaining term of the contract; and notes that the costs of deployment and maintaining the fleet are included in the contract price.

(6)      To approve the allocation of capital through prudential borrowing of up to £1.52m for the purchase and roll out of wheelie bins on alternate weekly twin stream collection rounds where a business case can be made (in line with (3) above).

(7)      To agree that the Council enters into a Pension Admission Agreement and a Risk Share Agreement or such other Pensions arrangement as appropriate, in respect of any ex-Brent Council staff who TUPE transferred to the current contractor in respect of the Public Realm Contract who may be entitled to retain access to the Local Government Pension Scheme under the Integrated Contract.

(8)      To delegate the resolution of any outstanding Pension issues referred to at (7) above in respect to the Integrated Contract to the Corporate Director, Resident Services in consultation with the Cabinet Member for Environment, Infrastructure and Climate Action.

Councillor Krupa Sheth (Cabinet Member for Environment. Infrastructure & Climate Action) introduced a report which detailed the outcome of the procurement process and sought approval to award the Integrated Street Cleansing, Waste Collections and Winter Maintenance Services Contract (Integrated Contract).

In considering the report, Cabinet noted that the recommissioning of the Integrated Contract had formed part of the wider Redefining Local Services (RLS) programme.  On the basis of the overarching delivery model agreed as part of the programme it had been agreed to retain the street cleansing, waste collections and winter maintenance services as an integrated service on the grounds of economies of scale, operational efficiency and value for money with the Education, Outreach and Communication (ECO) team to be insourced under a TUPE transfer from Veolia.  Members were advised this approach had been designed to provide the Council with direct responsibility for communication, education and outreach to assist in addressing the Council’s waste, climate emergency and circular economy objectives and challenges.

In recognising the challenging financial context and uncertainty in which the procurement had been undertaken and ongoing pressure on waste collection and disposal costs, members noted the impact in terms of service delivery options which had emerged and needed to be considered during the procurement process.  Cabinet was advised that the resultant changes in relation to street cleansing and recycling collections had therefore been designed to enable the council to continue delivering an efficient, and affordable service that remained fit for the future and better able to meet the Council’s environment and the climate objectives.

In outlining the benefits to be delivered through the Integrated Contract, Cabinet noted that these would include (as set out in section 7 of the report) a forecast increase and improvement in the quality and rate of recycling and income received; the provision of nine new electric vehicles; introduction of a free bookable small items collection service; and an intelligent-led approach to street cleansing with proactive, targeted management of hotspots through six new rapid response teams along with the retention of a majority share of future service efficiencies.

As part of the procurement process, Cabinet was also advised of the extensive community engagement and public consultation process undertaken and outcomes identified, as detailed in section 5 and 6 of the report.  In noting the feedback provided as a result of the public consultation and the alternate weekly twin stream recycling trial, Cabinet were advised that further modelling would be commissioned in the new year to determine whether any alternate weekly twin stream recycling collection rounds might be better served using an additional wheelie bin for the storing of paper/card rather than a sack.  In addition to this, Cabinet was informed of the following modifications to the service due to be introduced in response to feedback from the alternative weekly twin stream recycling trial and the equalities assessment:

·            The use of a fully sealable sack lid on all sides to keep the paper and card dry.

·            The use of a more durable sack (to be explored with the contractor).

·            The provision of an additional sack to be given to residents requesting one.

·            Inclusion of a white square on the sack for residents to mark their house number.

·            Steps to be taken at the Waste Transfer Station to allow paper/card to dry out to maximise its value.

To ensure a successful transition to the new service, Councillor Krupa Sheth also highlighted the plans for development of a comprehensive information campaign and recycling engagement plan in January 2023, with a particular focus on tackling contamination, so that this was available to coincide with introduction of the new contract and the new recycling service.

In concluding, Councillor Krupa Sheth also welcomed the recommendations from the Resources and Public Realm Scrutiny Committee who had been provided with an opportunity to review the proposed contract and service changes at an additional scrutiny meeting specifically held for the purpose on 13 December 2022.  The recommendations made as a result by the Scrutiny Committee had been detailed within section 12 of the report, with members noting the confirmation that these would be progressed by officers early 2023.

Having noted the challenging financial context in which the service delivery options and procurement had needed to be developed, Cabinet expressed their support for the outcome and benefits identified in relation to the Integrated Contract, with insourcing of the ECO team particularly welcomed and thanked Councillor Krupa Sheth and the officers involved for their efforts in terms of its delivery which it was noted provided the opportunity to extend and further develop the relationship with a long-standing partner in terms of the Council’s needs.

Having considered the report, including the exempt information included within appendices 1 & 3, Cabinet RESOLVED:

(1)        To note the results of the public consultation on future waste collections and street cleansing services held in summer 2022 and the results of the alternate weekly twin stream recycling trial held in autumn 2022.

(2)        To agree the introduction of an intelligence-led approach to street cleansing from 1 July 2023 and an alternate weekly twin stream recycling collection service for street level households from 1 October 2023, together with other specification changes as set out in section 7 of the report.

(3)        To note that modelling would be undertaken in the new year to determine whether any alternate weekly twin stream recycling collection rounds might be better served using an additional wheelie bin for the storing of paper/card rather than a sack; and that such changes to specific rounds could be introduced subject to a proven business case once the new service goes live, as the collection arrangement provided flexibility.

(4)        To approve the award of the Integrated Contract to Veolia Environmental Services UK Ltd for an initial contract period of eight years, with an option to extend for a further eight-year contract period in the estimated sum of £17.13m for 2023/24, circa £137m over the initial 8-year term of the contract or circa £274m over the full 16-year contract period.

(5)        To approve the allocation of capital through prudential borrowing of a sum of £21m, comprising £10.8m to finance the purchase of the fleet (including Public Realm Contract rollover assets) required for Year 1 of the contract and a further in principle allocation of £10.2m for vehicle replacements over the remaining term of the contract; and notes that the costs of deployment and maintaining the fleet are included in the contract price.

(6)        To approve the allocation of capital through prudential borrowing of up to £1.52m for the purchase and roll out of wheelie bins on alternate weekly twin stream collection rounds where a business case can be made (in line with (3) above).

(7)        To agree that the Council enters into a Pension Admission Agreement and a Risk Share Agreement or such other Pensions arrangement as appropriate, in respect of any ex-Brent Council staff who TUPE transferred to the current contractor in respect of the Public Realm Contract who may be entitled to retain access to the Local Government Pension Scheme under the Integrated Contract.

(8)        To delegate the resolution of any outstanding Pension issues referred to at (7) above in respect to the Integrated Contract to the Corporate Director, Resident Services in consultation with the Cabinet Member for Environment, Infrastructure and Climate Action.