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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 01/04/2003
ENHANCED RECYCLING SERVICE



The purpose of this report is to advise the Executive of current issues in relation to the enhanced recycling service. Arkeco have proposed options for revisions to service delivery, and these are reported, together with their financial implications and the results of a review of the operation of the existing service.

Officers have now concluded discussions for a negotiated settlement with Arkeco in order to secure a sustainable outcome. The details of the proposed negotiated settlement are contained in (Exempt) Annexe 1 to this report.

APPENDIX D.3

WAVERLEY BOROUGH COUNCIL

EXECUTIVE- 1ST APRIL 2003
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Title:
ENHANCED RECYCLING SERVICE
[Wards affected: N/A]
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Note pursuant to Section 100B(5) of the Local Government Act 1972

The annexes to this report contain exempt information by virtue of which the public is likely to be excluded during the item to which the report relates, as specified in Paragraphs 8, 9 and 12 of Part I of Schedule 12A to the Local Government Act 1972, viz:-

The amount of any expenditure proposed to be incurred by the authority under any particular contract for the acquisition of property or the supply of goods or services. (Paragraph 8)

Any terms proposed or to be proposed by or to the authority in the course of negotiations for a contract for the acquisition or disposal of property or the supply of goods or services. (Paragraph 9).

Any instructions to counsel and any opinion of counsel (whether or not in connection with any proceedings) and any advice received, information obtained or action to be taken in connection with-
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Summary and Purpose

The purpose of this report is to advise the Executive of current issues in relation to the enhanced recycling service. Arkeco have proposed options for revisions to service delivery, and these are reported, together with their financial implications and the results of a review of the operation of the existing service.

Officers have now concluded discussions for a negotiated settlement with Arkeco in order to secure a sustainable outcome. The details of the proposed negotiated settlement are contained in (Exempt) Annexe 1 to this report.

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Introduction

1. The Council opened discussions with Arkeco Environmental Services in September 2001 concerning its ambition to provide an enhanced kerbside recyclables collection service across the Borough, in order to respond to Government imposed targets. In the succeeding months, a series of options for the introduction and delivery of various levels of a recyclable collection service were developed in consultation and co-operation with Arkeco. Budget prices for a variety of vehicle and loader combinations collecting and sorting additional materials, both at weekly and fortnightly frequencies, were produced by Arkeco. The costs were used to inform the Council’s developing recycling and waste reduction strategy.

2. Seven different options for an enhanced and extended recycling collection service were developed, costed, considered and approved, initially through the Waste Management Special Interest Group. The preferred option for the progressive introduction of an enhanced collection service was approved by the Executive on 9th July 2002 and subsequently endorsed by Council. Arkeco was then invited to submit a formal quotation for the introduction of this option in six progressive phases, over a 21 month period between October 2002 and July 2004. It should be noted that whilst the possibility of inviting other companies to bid for this work had been explored, Arkeco would have remained entitled to operate the existing kerbside collection to some 27,000 households in the Borough, together with the serving of the bring sites and refuse collections to the whole of Waverley. The final quotation, confirmed in September 2002, was accepted and the phased introduction of the additional services was engrossed into the existing Waste Management Contract under a formal Deed of Variation to that contract.

3. The resources which the contractor proposed to employ on the enhanced service in terms of manning levels and vehicle numbers and specification were based on its best judgement of productivity levels. Estimation of the amount of materials presented at the kerbside each week, and the relative weights and volumes thereof, were similarly based on the contractors’ best judgement from information available at the time.

4. Phase I of the scheme commenced on 14th October 2002 with provision of the chosen collection service (paper, cans and three separated colours of glass on a weekly basis) to 9,000 households. Arkeco estimated that one 17 tonne specialist ‘kerbsider’ collection vehicle with driver and 2 loaders would be able to service that number of properties in the working week. The costs provided in the Arkeco quotation allowed for an assumed level of resources to meet anticipated volumes.

5. It quickly became apparent to the contractor that the quantity of material being presented by householders for recycling were significantly greater than anticipated and the resources allowed for the task were not sufficient. The contractor immediately needed to provide additional resources to complete this round within each working day.

Notice of Claim

6. Arkeco gave notice in writing on 30th October 2002 that the resources required to undertake the recycling initiative significantly exceeded its estimation and that it would like to discuss service efficiencies and the underwriting of its additional costs. Following a series of meetings between Arkeco and the Council’s contract officers, the contractor submitted a formal request for changes to the collection regime and/or reimbursement of its costs over and above that for which it had budgeted and contracted. It also gave notice that it would cease the enhanced service from the end of November 2002 and not implement any future phases of the scheme unless and until it received a positive response from the Council. Officers continued to meet with Arkeco and were able to postpone Arkeco’s notice.

7. As the nature and contents of the claim relate to a specific contract, the details of the claim and subsequent negotiations, together with your Officers’ recommendations, have been placed in (Exempt) Annexes 1, 2 and 3 to this report.

Executive Report - 14th January 2003

8. The difficulties providing the enhanced recycling service were presented to the Executive in a report to its meeting on 14th January 2003. A number of proposals for greater efficiency, economy and effectiveness of the service were presented. It was agreed that the following action should be pursued, viz;

i. Reconfiguration of Rounds 1, 2 and 3 so that the number of households would be more or less equal.
ii. Consider allowing collected glass to be mixed - avoiding the need to sort it at the kerbside. This option is subject to confirmation by Surrey County Council’s disposal contractor, which is expected imminently.
iii. Reconversion of an existing vehicle so that its internal load-compartments are better suited the volumes of recyclates.

9. The Council Officers agreed to press Surrey County Council’s waste disposal contractor to make provision to receive mixed glass recyclables at Slyfield Green Waste Transfer Station, and the Council agreed to fund the conversion of the vehicle. ________________________________________________________________________

Background Papers (DoE&L)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.
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CONTACT OFFICERS:

Name: Peter Maudsley Telephone: 01483 523398
e-mail: pmaudsley@waverley.gov.uk
Martin Shorten 01483 523434
mshorten@waverley.gov.uk






comms/executive/02-03/614