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Waverley Borough Council Committee System - Committee Document

Meeting of the Environment and Leisure Overview and Scrutiny Committee held on 04/07/2005
WASTE AND RECYCLING OPTIONS – FINANCIAL IMPLICATIONS AND RISKS



Annexe 1

WASTE AND RECYCLING OPTIONS – FINANCIAL IMPLICATIONS AND RISKS

Current Service
The following options for changing the current service to increase the recycling rate have been considered at the request of the Waste Management SIG at its meeting on the 21st June 2005. (1) Alternate Weekly Collections (AWC) of waste and recycling for all households using current kerbside sorting method of paper, tins and mixed glass in box and basket.

(2) Alternate Weekly Collections (AWC) of waste and recycling for all households using current kerbside sorting method of paper, tins, mixed glass and plastics in boxes and basket.

(3) Alternate Weekly Collections (AWC) of waste and recycling for all households using additional wheeled bin for mixed/dry recyclables of paper, tins, and plastics (no glass).

(4) In addition to option (4), introduce a separate alternate weekly kerbside collection of mixed glass in boxes.

(5) Alternate Weekly Collections (AWC) of garden waste using disposable or reusable bags based on an annual subscription service.



Current service - Weekly collection of waste and weekly collection (alternate for 14,700 properties) of recycling using kerbside sorting method of paper, tins and mixed glass in box and basket.

DETAILS

- Weekly collection of domestic refuse in 240L wheeled bins from 50,000 properties in Waverley
- Kerbside collection of recyclable materials from 35,300 properties on a weekly basis and 14,700 on an alternate weekly basis
- Currently achieving 21.9% recycling rate

COSTS

- Full year cost of waste management contract 3.5million
- Estimated current annual recycling credit received 360,000
- Estimated current annual recycled materials sales income 85,000

KEY ISSUES

- Very unlikely to increase recycling rate above current levels
- Limited ability to reduce volume of residual waste



(1) Alternate Weekly Collections (AWC) of waste and recycling for all households using current kerbside sorting method of paper, tins and mixed glass in box and basket.

DETAILS

- Collection of domestic refuse in 240L wheeled bins one week, collection of kerbside-sorted recyclable materials in boxes and baskets the following week
- Onyx estimate this will achieve an overall recycling rate of 30.8%

COSTS (see Exempt Table 1)

- Estimated one-off set up costs including implementation team, PR campaign and additional containers
- Overall net annual saving on existing costs

ASSUMPTIONS

- Onyx estimate a 5% reduction in residual waste and an increase in presentation of recyclables from current 45% level to 80%
- Assumes additional container provided per household KEY ISSUES AND RISKS

- Doesn’t add new materials to recycling collection
- Capacity of boxes and baskets – assumed to be sufficient to contain any additional volume of recyclable materials (one extra allowed for)
- Assumptions about recycling rate
- Timing of Council decision and/or implementation phasing may impact on quoted prices
- Timing of Council decision and/or implementation phasing may impact on achievement of any cost saving and recycling rate in year 1.
- Financing of set-up costs


(2) Alternate Weekly Collections (AWC) of waste and recycling for all households using current kerbside sorting method of paper, tins, mixed glass and plastics in boxes and basket.

DETAILS

- As option (1) but with an alternate weekly plastics collection with the recycling round from all properties
- Onyx estimate this will achieve an overall recycling rate of 31.5%

COSTS (see Exempt Table 2) - Estimated one-off set up costs including implementation team, PR campaign and additional containers
- Overall net annual saving on existing costs

ASSUMPTIONS

- Onyx estimate a 5% reduction in residual waste and an increase in presentation of recyclables from current 45% level to 80%
- Onyx estimate of plastic collected annually

KEY ISSUES AND RISKS

- Capacity of boxes and baskets - assumed to be sufficient to contain any additional volume of recyclable materials (two extra allowed for)
- Assumptions about recycling rate
- Assumptions about Surrey Waste Management’s agreement to receive plastics and the gate fees for this material
- Timing of Council decision and/or implementation phasing may impact on quoted prices
- Timing of Council decision and/or implementation phasing may impact on achievement of any cost saving and recycling rate in year 1.
- Positive impact on other recyclable materials collected and on participation rates if plastics are added (not allowed for)
(3) Alternate Weekly Collections (AWC) of waste and recycling for all households using additional wheeled bin for mixed/dry recyclables of paper, tins, and plastics (no glass)

DETAILS

- Collection of domestic refuse from 240L wheeled bin one week, collection of mixed dry recyclable materials in additional 240L wheeled bin the following week
- Options for delivery of recyclable materials – assumed delivery to Alton MRF
- Estimated overall recycling rate of 22.4% without kerbside glass collection (after allowing for rejected recycling loads due to contamination).

COSTS (see Exempt Table 3)

- Assumed Onyx acquire bins and spread cost to Waverley over period of contract
- No income from sale of materials but gate fee for mixed materials at MRF
- Estimated set-up costs including bin delivery, implementation team and PR campaign
- Overall net revenue saving on existing costs

ASSUMPTIONS

- Assumed 240L recycling wheeled bin for recyclables, however a smaller 180L bin is similar in cost
- Estimated recycling rate assumes bring-site use returns to pre-kerbside level for glass
- Assumed contamination penalty rate at Alton MRF

KEY ISSUES AND RISKS

- Estimated prices – need Onyx Board approval
- No kerbside glass collection – can’t be included in wheeled bin
- Assumed recyclable volume similar to AWC with as-is service
- Assumptions about Surrey Waste Management’s agreement for recyclable materials to go to alternative location.
- Timing of Council decision and/or implementation phasing may impact on quoted prices and/or vehicle termination costs
- Timing of Council decision and/or implementation phasing may impact on achievement of any cost saving and recycling rate in year 1.
- Timing of Council decision may impact on ability to agree use of Alton MRF.
- Contamination of recyclables – manage down with education and strict controls over contractor
- Waverley could choose to purchase the wheeled bins directly and finance from Prudential Borrowing. Cost comparisons indicate that this would be similar in cost to Onyx supplying them.
(4) In addition to the twin-bin option (3), introduce an alternate weekly kerbside collection of mixed glass in boxes.

DETAILS

- Use existing boxes to collect glass at kerbside to 95% of Borough
- Options for delivery of mixed glass – assume delivery to Slyfield
- Estimated increase in recycling rate above that achieved in option (3) of 8% with a total achieved of 30.3%.

COSTS (see exempt Table 4)

- Overall net additional cost of AWC with twin bin and separate AWC of glass
- Estimated set-up costs including bin delivery, implementation team and PR campaign

ASSUMPTIONS

- Assumes similar recovery rate to current levels
- Assumes glass collection utilises some vehicles and staff that would otherwise be surplus under the AWC twin-bin change in option (3)
- Assumed contamination penalty rate at Alton MRF
- Estimated gate fee for mixed dry recyclables at Alton MRF

KEY ISSUES AND RISKS

- Capacity of boxes and baskets - assumed to be sufficient to contain additional volume of glass and amount collected over a two-week period.


(5) Alternate Weekly Collections (AWC) of garden waste using disposable or reusable bags.

DETAILS

- Stand-alone service that can be added to any one of the options (1) to (4)
- Garden waste collected from kerbside on an alternate weekly basis and taken to Onyx’s composting plant at Little Bushy Warren
- Based on subscription service with Waverley providing the householder with a reusable bag and a pre-paid token
- Costing is based on re-usable bags as bio-degradable bags cannot be accepted at Onyx’s composting plant, however, the over the period of the contract, costs would be similar with either type
- The increase in recycling rate resulting from the addition of a green waste service will depend on the price charged for the subscription. Onyx estimate that based on a 45.00 annual charge, the take-up will be 15% of properties (7,500). It is estimated that this should increase the recycling rate by 5%. If a charge of 25.00 was made, take-up could be 20% (10,000 properties), increasing the recycling rate by an additional 6.6% overall.

COSTS (see Exempt Table 5)

- Based on a 45.00 subscription charge, broadly break-even financial position
- Overall net additional costs based on a 25.00 subscription charge

ASSUMPTIONS

- Onyx’s estimate of average weight of garden waste presented
- Assume 25% of income at concessionary or second bag rate



OTHER ISSUES

Card

- Volumes and acceptability of card at the MRF are uncertain, therefore, no allowance has been made in the costing or in the calculation of estimated recycling rate under the twin-bin options for card. In financial terms, introducing card should be cost-neutral as the recycling credit exceeds the estimated MRF gate fee.
- No allowance has been made for the introduction of card in the boxes and baskets method of collecting recyclables in option (1) or (2). The practicalities and costs involved in adding card to a kerbside sort collection would need to be examined in more detail. Assumptions

- Onyx assumptions based on their experience with other contracts and on Waverley provided analysis of waste and recycling volumes
- Costings for all options are based on estimated volumes of waste and recyclable materials Set-up costs for AWC

- Waverley would seek external funding to contribute to set up costs

Onyx Contract

- The timing of the Council’s decision about changing the service will impact on the arrangements for agreeing the contract details with Onyx for the term of the contract


Comms/o&s3/05-06/016