Agenda item

Procurement of Norfolk Dry Recyclables (Agenda item 10)

Report of Lynda Turner, Executive Member for Localism, Community and Environmental Services.

Minutes:

The Executive Member for Localism, Community & Environmental Services presented the report that asked Members to accept the collaborative procurement for the Norfolk Dry Recyclables Processing Contract.

 

In summary the joint venture proposal would provide the Council’s involved with:

 

§               a lower gate fee than existing;

§               a profit share rate that was higher than in the existing contract (subject to market variations);

§               higher levels of recycling through:

Ø      a larger range of materials to be recycled at the kerbside than was currently the case.  In Breckland the additional materials that would be able to be recycled within the black wheeled bin would include:

              glass;

              a wider range of cardboard related materials e.g. food packaging card, carrier trays, tetra-pak type containers;

              a wider range of plastics e.g. plastic rigid containers such as food pots, tubs and trays;

Ø      improved capture rates of existing recyclable materials;

Ø      potential reductions in contamination (as more materials will be able to be dealt with);

§               less waste to landfill resulting in carbon equivalent savings;

§               greater flexibility and measure of control over service changes;

§               joint management and control of risks presented through legislative, compositional and material market price changes, quality and contamination fluctuations over the ten year period.

 

The Executive Member for Localism, Community & Environmental Services pointed out that Breckland Council would be much better off financially if maximum assumptions on tonnage were met.

 

The Chairman stated that negotiations had been kept as simple as possible and that it was very good news that everyone would be able to recycle a great deal more.

 

The Overview & Scrutiny Commission Chairman said that Breckland Council must liaise with its Parish Councils in relation to their community bring-banks particularly in regard to glass.  On the subject of recycling, he asked if road sweeping would continue.  Members were informed that statistics had shown that bottle-banks in villages would still be supported.  In response to the latter, it was noted that the road sweeping service was under review.  Councillor Armes raised concerns about the income that Parish Councils relied on by having these community bring-banks.  It was noted that the Executive Member for Localism, Community & Environmental Services had this matter in hand.

 

The Executive Member for Assets & Strategic Development thought that this new contract was a ‘no-brainer’ and fully supported the recommendation and also welcomed the wider range of recyclables and profit made by this scheme. 

 

The Executive Member for Internal Services also supported the idea of public partnership as it did tend to drive down costs and he was pleased that there were no employee liabilities at the end of the contract; however, he was aware that the consortium would be at the mercy of the waste market.  Referring to the glass recycling, he asked how this would be sorted if it was put in the same bin as other recycling materials.  Inn relation to the Parish Councils he felt that 12 months would be a suitable weaning off period.

 

The Chairman pointed out that the only downside was if anyone withdrew from the contract as it would affect the overall tonnage. In relation to glass, Members were informed that the company would be installing a high-tech kit which had modern separation techniques.  As far as the weaning off period for Parish Councils was concerned, there had been a great deal of debate on this matter but it had been felt that 12 months was a suitable period of time for them to adjust their precepts accordingly.

 

Councillor North was pleased to see a greater recycling mix but had concerns about the size of the bins and felt that there could be many more requests for larger bins.  Members were informed that if residents wanted larger bins they could request them free of charge.

 

Councillor Bambridge wholeheartedly supported the recommendation.  On another matter, he thanked the Executive Member for Localism, Community & Environmental Services for her assistance in organising the clean-up in Bawdeswell in time for the village festival. 

 

Options

 

1.            Doing nothing was not an option.  The existing contract terminated on the 31st March 2014. After that date, without a replacement contract, the Authority would have no facility available to receive and sort the recyclable waste collected in the black bins.

 

2.            To reject the proposal as was currently configured, called a failed procurement and re-commencement of the procurement process.  This option was unlikely to produce a better outcome than the current procurement process and would be difficult to fulfil and implement before the existing contract terminated.

 

3.            To reject the joint venture proposal and go back to the consortium advising that it was this Council’s wish to accept the NORSE enhanced with glass complaint bid on a contracted basis only.

 

4.            To award NORSE Commercial Services Ltd (NORSE) a ten year contract for the recycling of dry recyclable material (being the enhanced contract with glass) pursuant to the procurement process carried out, on the basis that such contract be entered into between the District Councils of the Norfolk Waste Partnership and the JVC (as defined below);

 

a.      Approve the entry into of a joint venture shareholders’ agreement between the District Councils and Norse on the basis of the Memorandum of Understanding attached at Appendix 1 for the purposes of establishing a joint venture company (the “JVC”) to be the contractor under the recycling contract; and

 

b.      Approve the entry into of such ancillary documents as shall be necessary pursuant to the establishment of the JVC and the recycling contract to the JVC; and

 

c.   delegated authority be given to the Leader of the Council, in consultation with the Executive Member for Localism, Community & Environmental Services and Interim Environmental Services Officer to conclude those agreements and ancillary documents on behalf of the Council.

 

Reasons

 

The recommendation was in accordance with the outcome of a fully compliant EU procurement process and was considered to offer the Council the most economically advantageous tender.  Taking into account risk and reward it was judged to offer the best value for money for the Council.

 

RECOMMEND to Council that:

 

  1. A ten year contract be awarded to NORSE Commercial Services Ltd (NORSE) for the recycling of dry recyclable material (being the enhanced contract with glass) pursuant to the procurement process carried out, on the basis that such contract be entered into between the District Councils of the Norfolk Waste Partnership and the JVC (as defined below);

 

c.      the entry into a joint venture shareholders’ agreement between the District Councils and Norse be approved on the basis of the Memorandum of Understanding attached at Appendix 1 for the purposes of establishing a joint venture company (the “JVC”) to be the contractor under the recycling contract; and

 

d.      the entry into such ancillary documents as shall be necessary pursuant to the establishment of the JVC and the recycling contract to the JVC be approved; and

 

e.      delegated authority be given to the Leader of the Council, in consultation with the Executive Member for Localism, Community & Environmental Services and the Interim Environmental Services Officer to conclude those agreements and ancillary documents on behalf of the Council.

 

  1. the community recycling bank scheme continues to operate in 2014/15 but beneficiaries be informed of the potential reductions and Members consider whether they would wish to offer any compensatory payments in lieu of the potential reduction in tonnages collected through the banks and hence payments in 2014/15.

Supporting documents: