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Waverley Borough Council Committee System - Committee Document

Meeting of the Council held on 18/02/2003
REPORT OF EXECUTIVE HELD ON 14TH JANUARY - REPORT TO THE MEETING OF THE COUNCIL ON 18TH FEBRUARY 2003



WAVERLEY BOROUGH COUNCIL

EXECUTIVE - 14TH JANUARY 2003

REPORT TO THE MEETING OF THE COUNCIL ON 18TH FEBRUARY 2003

Note pursuant to Section 100B(5) of the Local Government Act 1972

The following report items contain exempt information by virtue of which the public is likely to be excluded. The information is as specified in the appropriate paragraphs of Part I of Schedule 12A to the Local Government Act 1972, namely:-

Item A

Information relating to the financial or business affairs of any particular person (other than the authority) (Paragraph 7).

Items A and T
PART I – Reports containing recommendations for decision by the Council

A. ENVIRONMENTAL CLEANING CONTRACT – TENDER AWARD
[Wards Affected: All]

A.1 The Council has a statutory duty, under the Environmental Protection Act 1990, to provide an Environmental Cleaning service which includes the collection and removal of litter from all paved and un-paved areas of public highway in the Borough and other public land in the control of the Council, including the sweeping, vacuum cleaning and washing of paved surfaces, the emptying and cleaning of litter bins and dog waste bins, the cleaning of signs, seats and other street furniture, the removal of fly-tips and other associated works.

A.2 The existing Contract with Arkeco Environmental Services Limited expires on 31st March 2003. In response to a report “A Tendering Strategy for Environmental Services”, presented to the Executive at its meeting on 9th April 2002, the Council resolved to let an interim short-term contract for Environmental Cleaning for a period of two years, seven months from 1st April 2003. The purpose of this was to make this contract co-terminous with the Waste Management (Refuse Collection and Recycling), Public Convenience Cleaning and Grounds Maintenance Contracts to present the opportunity in 2005 to package these contracts for the best long-term economic advantage to the Council. The report explained that a risk of this strategy was that a short-term Environmental Cleaning Contract might be uneconomic for other contractors, but the greater benefits of a more attractive package of contracts in 2005, and the potential corresponding increase in competition at that time, should provide the best long-term advantage to the Council.

A.3 The Environmental Cleaning Contract was accordingly advertised for a period of two years, seven months from 1st April 2003. Of the ten contractors initially expressing an interest in tendering, nine qualified for evaluation by returning a pre-tender questionnaire giving details of technical ability, financial standing and references.

A.4 One contractor was eliminated because it was an agency supplying personnel only. Three contractors were eliminated on financial issues. Two were eliminated due to having no experience of contracts of the size and nature of Waverley’s and being unable to supply references for any similar contracts. The three remaining contractors:-

Arkeco Environmental Services Limited
Cleanaway Limited
Throwers Environmental Services

were chosen to be included on the Select List of Tenderers which was endorsed by the Executive at its meeting on 9th July 2002. Each was invited to tender and each expressed its intent to submit valid bids by the due date.

A.5 The closing date for the tender submissions was 4th October 2002. Both Cleanaway and Throwers Environmental Services failed to submit tenders. The bid received from Arkeco Environmental Services was above that which indexation of the current contract price, in line with inflation, would produce.

A.6 The re-tender included only minor amendments to the existing contract specification. Cleaning of town centres was re-defined as performance-based in place of frequency-based, which permits the more effective monitoring and measurement of the contractor’s performance. However, the standards of cleanliness were not increased and, in lower profile areas, such as trunk roads and remote rural roads, frequencies were reduced.

A.7 The existing contract was awarded to Arkeco in 1996, for an initial five-year term with an option for a two-year extension, which was exercised with effect from 1st April 2001 and therefore expires in March 2003. The contract was awarded at a time when there was more competition in environmental services and there were more technically and financially able contractors seeking such work. The market has since consolidated with numerous company mergers and take-overs.

A.8 The Contract requires that the contractor operates from a depot in, or within a reasonable distance of, the Waverley Borough, in order to be able to provide an effective emergency response and reaction to local circumstances. The Council’s one remaining depot and workshop facility at Bourne Mill, Farnham is leased with the Waste Management (Refuse Collection and Recycling) Contract and cannot therefore be offered in whole or part to prospective tenderers for the Environmental Cleaning Contract. This was the principal factor influencing the decision of those contractors which withdrew from tendering.

A.9 An initial consultation with Waste Management Consultant, Robert Long Consultancy Limited, seeking a benchmark price for a similar service, confirmed the officers’ view that the tender bid did not represent the best value in the industry. Post-tender negotiations were therefore entered into. Details of the benchmarking of the tendered rates, the post-tender negotiations and an analysis of the Council’s options for the provision of this service into the future are contained at (Exempt) Annexe 1 to this report.

A.10 The Consultant agrees that the letting of this Contract for an interim period of two years seven months, with a view to a more attractive packaging of contracts with effect from November 2005, would offer the best long-term economic advantage to the Council. However, it would be prudent, following the experience of re-tendering this contract, to carry out a strategic review of the Council’s future tendering strategy to identify the best value procurement options for the 2005 major contract procurement round. That review needs to commence during 2003. It is proposed that, initially, competitive quotations be sought for the professional advice from specialist waste management procurement consultants which will be required to inform that review.

A.11 The Environmental Cleaning Service has a direct and visible impact on the street scene and any reductions in the existing standard will have an immediate detrimental impact on the environment of the Borough. It is imperative, therefore, that this service is adequately funded to maintain existing standards. Clean streets and public areas adds to the perception of public safety. The rapid removal of abandoned “sharps” (hypodermic needles), dog faeces, broken glass and other hazardous material is fundamental to public health. The Executive

RECOMMENDS that
B. FOUR-MONTH ROLLING PROGRAMME
[Wards Affected: All]

The Executive has considered and approved the four-month rolling programme of Key Decisions.
.

C. BUDGET UPDATE – GOVERNMENT SUPPORT SETTLEMENT
[Wards Affected: All]

The Executive received an update report on the latest position regarding the General Fund Budget following the receipt of the provisional Revenue Support Grant Settlement and agreed to give further consideration to the budget on 4th February 2003, prior to making recommendations to the Council on 18th February 2003.

D. TRANSFER OF LIQUOR LICENSING TO WAVERLEY
[Wards Affected: N/A]

D.1 The Executive received a report setting out an initial view of the implications of the radical changes to liquor licensing set out in the Licensing Bill 2002. The report had been considered by the Licensing and Regulatory Committee at its meeting on 13th January 2003 and observations to the Executive were tabled.

D.2 The Executive noted that the comments of the Licensing and Regulatory Committee were already covered by representations being made to the Government by the Local Government Association and it was recognised that it would be difficult, until the Bill progressed further, to assess the full implications for Waverley. In the interim, the Executive agreed that

a. a footnote be added to the Licensing and Regulatory Committee revenue estimates for 2003/2004 explaining the potential part-year revenue implications which cannot yet be quantified; and

b. as Waverley is covered by Guildford Licensing Justices, agreeing to approach Guildford Borough Council, Surrey Police and Surrey Fire and Rescue Service to open joint discussions with the Justices on arrangements for transfer.

E. CONSULTATION ON VARIATION OF PERMITTED HOURS FOR PUBLIC HOUSES
[Wards Affected: All]

The Executive considered a report inviting them to make comments to the Licensing Justices on an application received from Wetherspoons to vary morning opening hours. If adopted, this variation of opening hours could apply also to other licensed premises in the Waverley area. The report had also been considered by the Licensing and Regulatory Committee at its meeting on 13th January 2003, but the Committee had no observations to pass to the Executive. The Executive endorsed the view not to make any representation to the Licensing Justices.

F. SUPPLEMENTARY PLANNING GUIDANCE: DUNSFOLD AERODROME PROJECT BRIEF
[Ward Affected: Alfold and Dunsfold]

F.1 The Executive received a report setting out a brief for the preparation of Supplementary Planning Guidance (SPG) to allow the Council to take a long-term view of the future development of the Dunsfold Aerodrome site. The Executive agreed the project brief and the timetable for progressing the draft SPG.

F.2 To facilitate the production of the SPG, the Executive agreed to establish a Special Interest Group, the membership of which would be discussed between group leaders and reported back to the Executive.


G. HOUSING SERVICE: EQUAL OPPORTUNITIES MONITORING
[Wards Affected: All]

The Executive received and endorsed a report providing monitoring information about housing applications in 2001/2002 in relation to race, gender and disability.

H. SALE OF LAND ADJOINING WOOLACOMBE, EWHURST ROAD, CRANLIEGH
[Ward Affected: Cranleigh East]

The Executive considered a report seeking approval for the sale of a piece of land adjoining Woolacombe, Ewhurst Road, Cranleigh. The sale would provide a capital sum. It agreed that the land should be sold to the owners of Woolacombe on terms and conditions to be negotiated and concluded by the Property and Development Manager.

I. MAYOR OF LONDON'S DRAFT MUNICIPAL WASTE MANAGEMENT STRATEGY – PUBLIC CONSULTATION
[Wards Affected: All]

I.1 The Executive received a report on the consultation draft of the Municipal Waste Management Strategy, which set out a variety of plans for furthering education on waste issues, promoting waste minimisation and increasing levels of composting, re-se and recycling in order to minimise the amount of waste that needs to be incinerated in the London area or exported for landfill.

I.2 The Executive agreed to note the implications of the Strategy for Waverley and that

a. support be given to the Mayor’s stated aim of dealing with London’s waste within its own boundaries and that such an aim is encouraged;

b. the Mayor be urged to recognise the impact that landfilling of London’s waste in surrounding counties has on the ability of those counties to deal with their own residual waste;

c. support be given to the Mayor’s plans for furthering education on waste issues, promoting waste minimisation and increasing levels of composting, re-use and recycling;

d. the Mayor be strongly encouraged and urged to push for the exceeding of London’s recycling targets, particularly since the level of exporting of London’s residual waste to surrounding counties is dependent upon this;

e. the Mayor be strongly encouraged to further his endeavours to develop and locate the additional composting and recycling infrastructure required within London’s boundaries; and

f. support be given to the South East England Regional Assembly (SEERA) Officer report of 6th December 2002 and to the conclusions and recommendation of the SEERA Planning Committee of 18th December 2002 regarding the Mayor of London’s Draft Municipal Waste Management Strategy.


J. REPORTS OF SPECIAL INTEREST GROUPS

J.1 Waste Management Special Interest Group
[Wards Affected: All]

The Executive received and noted a report of the Waste Management Special Interest Group, which had met on 7th January 2003, to consider up to date response figures for Round 1 of the service and discussed marketing methods and the progress of the Waste Awareness Campaign with a representative of the GEM Group.

J.2 Enhanced Recycling Contract
[Wards Affected: N/A]

J.2.1 The Executive received another report which had also been considered by the Waste Management SIG setting out service delivery issues in relation to the enhanced recycling service. The information within the report was accepted, along with the measures set out below to ensure the continued implementation of the Council's agreed extension of its kerbside collection service.

J.2.2 The Executive adopted the proposed settlement with Arkeco, set out in paragraph 6 of the Exempt Annexe to the report, to be funded from the balance in the recycling budget in 2002/03 and to authorise the Director of Environment and Leisure to agree to any reasonable request from Arkeco for reconfiguration of the three existing recycling rounds to equalise them as far as possible. It was also agreed that officers should prepare a report as soon as possible identifying the opportunities and costs associated with mixed glass collection and the relative advantages and disadvantages such a scheme might bring and that the newsletter being circulated to 9,000 householders in the first round be circulated to all members of the Council when available.

J.2.3 New Constitution Special Interest Group
[Wards Affected: N/A]
The Executive received an update report on the outcome of the New Constitution's Special Interest Group's first meeting which set out the work programme and approach to be followed by the SIG. The Executive endorsed the approach set out in the report and wished to encourage all members to submit comments on the operation of the constitution so that they could be taken into account by the SIG.

K. APPOINTMENTS TO OUTSIDE BODIES – DISBANDMENT OF FARNBOROUGH AIRFIELD CIVIL ENCLAVE LIAISON COMMITTEE
[Wards Affected: N/A]

The Executive was informed that, following the introduction of a new Committee to provide a forum for the discussion of matters relating to the development and operation of the Farnborough Aerodrome in place of the Civil Enclave Liaison Committee, Waverley would no longer be invited to appoint an annual representative. The Executive agreed that representations should be made to Rushmoor Borough Council that Waverley Borough Council should continue to represent the interests of residents in Farnham and surrounding affected areas in the Borough.


L. THE HERONS, HASLEMERE - UPDATE
[Wards Affected: All Haslemere Wards]

The Executive received a report presenting members with the current situation in relation to the remaining defects at the Herons and the overall financial situation and agreed that

M. MONITORING REPORTS - VARIOUS
[Wards Affected: All]

The Executive has noted monitoring reports on voids, lettings, rent arrears and housing benefit.

N. LITTLEMEAD INDUSTRIAL ESTATE, CRANLEIGH
[Ward Affected: Cranleigh West]

The Executive noted that officers were making arrangements to progress this matter, a report on which had been withdrawn from the Council meeting on 17th December 2002.

O. ACTION TAKEN SINCE LAST MEETING
[Wards Affected: N/A]

The Executive noted that there was no action to report under this heading.

P. 2003 STAFF PAY AWARD
[Wards Affected: N/A]

The Executive agreed that the 4% structured settlement reached with the staff representatives for the 2003 staff pay award, be approved with effect from 1st February 2003.


Q. THE WHARF DEPOT AND GODALMING KEY SITE
[Wards Affected: All Godalming Wards]

The Executive received and noted a progress report on this matter which set out that, following negotiations between Belvedere Smith and other landowners in an effort to assemble the whole of the Key Site, the exercise was expected to progress early this year. Discussions had also taken place with the Guildford and Waverley Primary Care Trust regarding the possible provision by the Trust of a Local Care Centre.

R. LAND OFF A281, HORSHAM ROAD, ALFOLD
[Ward Affected: Alfold and Dunsfold]

The Executive received an oral update on the outcome of the legal action of 13th January 2003, along with the action taken by officers to press the Office of the Deputy Prime Minister for a swift decision on the planning appeal for the site.

S. EAST STREET, FARNHAM
[Wards Affected: All Farnham Wards]

S.1 The Executive received and noted a report summarising current progress relating to the East Street Regeneration Project, as at 24th December 2002 and agreed to receive a further report to its February meeting. It also agreed that

1. the Director of Planning and Development, after consultation with the Portfolio Holder for East Street, be authorised to enter into an exclusivity agreement with Crest Nicholson and Sainsbury's Property Company for a period not exceeding six months;

2. if necessary, a Special Executive meeting or meetings and Special Council meeting be held in March to consider the conditional contract;

3. the full report be circulated to all members of the Council to enable them to be kept briefed; and

4. the development brief be reaffirmed as the brief for the project and any proposals of any type for departures from, or enhancement to, the brief be reported to the Executive to be considered for recommendation to the Council, with a full cost benefit analysis of the proposals.

S.2 The Executive also agreed that the Portfolio Holder for East Street may bring matters forward to the Executive after discussions with the appropriate Directors and Portfolio Holders had taken place.

T. THE PROVISION OF BANKING SERVICES TO THE COUNCIL
[Wards Affected: N/A]

The Executive received a report on this matter and agreed that the banking services contract with HSBC be extended for a period of three years commencing 1st April 2003 on the terms referred to in the report at (Exempt) Appendix N of the agenda.

comms/council/2002/03/064 32892