Agenda Item No
The Vale of Glamorgan Council
Cabinet Meeting: 14th March, 2012
Report of the Cabinet Member for Visible and Building Services
Procurement of Future Municipal Waste Recycling Reprocessing
Purpose of the Report
1. To advise Cabinet on the progress for procuring future, kerbside co-mingled, domestic and street cleansing recycling wastes re-processing, post 1st April 2013.
2. To seek Cabinet approval to continue to work in partnership with Caerphilly County Borough Council (Lead Authority) and Blaenau Gwent County Borough Council, Merthyr Tydfil County Borough Council and Monmouthshire County Council to seek a new joint contract for the Vale's recyclable municipal waste following the expiration of its existing contract on the 31st March 2013.
3. To agree the location of a potential site for the bulk transfer of dry recycling materials should such a site ultimately be required.
1. That Cabinet approves a continued partnership approach for procuring future recycling reprocessing post 31st March 2013.
2. That the Director of Environmental and Economic Regeneration be authorised in consultation with the Cabinet Member for Visible and Building Services to carry out a new joint partnership, or Vale only procurement exercise, to comply with EU Regulations with a commencement date of 1st April 2013.
3. That the Director of Environmental and Economic Regeneration be authorised in consultation with the Cabinet Member for Visible and Building Services to sign a Memorandum of Understanding (MoU) (attached at Appendix A) between the partners authorising Caerphilly CBC as Lead Authority to issue a Procurement Notice (OJEU).
4. That Cabinet receive a further report following receipt of the procurement bid before fully committing to a partnership contract for future recycling reprocessing.
5. That the former Civic Amenity Site at Hayes Road, Barry be agreed, subject to planning consent and modification of the current Waste Management licence, as a potential site for the transfer of dry recyclable waste should such a site be required.
Reasons for the Recommendations
1. To ensure that any benefits from this continued collaborative approach are obtained.
2. To enable the Vale of Glamorgan Council to secure a new contract for recycling its municipal waste post 31st March 2013.
3. To enable Caerphilly CBC to formally include the Vale of Glamorgan's future municipal recycling needs within its 'Procurement Notice' seeking tender bids for reprocessing its recycling.
4. To enable Cabinet to be fully informed of the benefits of progressing with the partnership procurement process before providing a legal commitment to accept the terms and conditions and costs of the final bid submitted to the partnership.
5. To provide the necessary authority, subject to the appropriate waste licence being in place, for this site to be made available for use as a transfer facility.
4. It was necessary for Caerphilly CBC to carry out a procurement exercise for their future municipal recycling collections and in order to seek economies of scale they invited other local authorities to express an interest in working with them. Consequently, Officers from the Vale and three (Blaenau Gwent, Merthyr Tydfil and Monmouthshire) other local authorities have been working with Caerphilly over the last few months to draw up mutually acceptable draft procurement documentation.
5. Caerphilly have now reached the stage where they are proposing to issue an OJEU Notice, inviting bids for the future procurement of recyclate reprocessing and have now requested that the partners sign up to a MoU. This will provide some assurance of the partners' commitment and more importantly an indication of minimum tonnage to the recycling industry and prospective bidders.
Relevant Issues and Options
6. The Lead Authority, Caerphilly CBC is a Member of the Welsh Purchasing Consortium, which has been established to support its members in delivering joint collaborative contracts for the procurement of goods and services. It is the intention that the contract entered into between the Lead Authority and the Supplier shall be deemed a 'collaborative arrangement' and those bodies referred to in it as,' Blaenau Gwent County Borough Council, Merthyr Tydfil County Borough Council, Monmouthshire County Council and the Vale of Glamorgan Council' if required, be entitled to engage in the agreement upon the terms and conditions set out under Regulation 22 of the Public Contracts Regulations 2006. The expected joining dates for each individual authority will vary dependant on their existing contracts. For the Vale of Glamorgan this would be the 1st April 2013 should Cabinet ultimately sign up to the contract at a later date.
7. The Lead Authority is looking to contract with only one service provider who would be responsible for receiving delivery, and sorting of the materials. While the Lead Authority will allow sub-contracting under this arrangement by prior agreement with the Lead Authority, the final location of the reprocessing or delivery point will have a impact on our final assessment of 'best value' when Cabinet is asked to consider whether to formally join the partnership contract or not. It is likely that the Council may need a transfer station for their recycling contract in the Vale and it is proposed that this be at the former Civic Amenity Site at Hayes Road in Sully.
8. It is proposed that the eventual contract with the successful bidder will be initially for five-years from 2012, with the option to extend on an annual basis, subject to satisfactory performance and maintenance of reasonable cost income levels, up to an additional five years. It is expected that the contract will be cost neutral or provide an income to each partner local authority. The Vale of Glamorgan currently pays £14.50 per tonne for its recycling re-processing. Full details of the operational and financial implications resulting from this procurement will be included in a future report to Cabinet.
9. Should Cabinet feel that it is not appropriate to sign up to the MoU and pursue this partnering option to the final bidder stage, it will be necessary for the Council to start its own individual procurement exercise so that alternative new contact arrangements are in place when its existing contract expires in March 2013.
Resource Implications (Financial and Employment and Climate Change, if appropriate)
10. The only cost associated with this partnership at this stage is officer time, which will be catered within the existing Waste Management & Cleansing Revenue budgets.
11. The management of any potential future contract will also be carried out within the existing Waste Management & Cleansing Revenue budgets.
12. Further details of the financial implications will be provided to Cabinet following Caerphilly CBC's completing the procurement process.
Legal Implications (to Include Human Rights Implications)
13. The Council’s Director of Legal, Public Protection and Housing will progress any contractual procedures should the recommendation of this report be approved.
14. Caerphilly CBC as the Lead Authority is entering into a Memorandum of Understanding (MoU) agreement in respect to this procurement and possible Contract with the partnering Authorities. The entering of this MoU will be pursuant to the Local Government (Wales) Act 1994.
15. The Welsh Government Waste (Wales) Measure 2010 imposes a duty to meet recycling targets and for fines to be levied should we fail to achieve these targets. There is currently no statutory requirement to provide any specific methods of collection or reprocessing.
16. The Recycling, Preparation for Re-use and Composting Targets (Monitoring and Penalties) (Wales) Regulations 2011 allow WG to impose fines on Local authorities who fail to meet their statutory targets as defined in the Waste (Wales) Measure 2010.
17. There are no Human Rights implications with regards to this report.
Crime and Disorder Implications
18. There are no Crime and Disorder Implications.
Equal Opportunities Implications (to include Welsh Language issues)
19. There are no equal opportunity implications to this report.
20. It is a Corporate Priority to:
To work with partners to develop a sustainable community which maximises opportunities for economic growth social improvement and environmental regeneration and protection.
To protect and enhance the Vale’s natural and built environment
R5 Increase waste recycling rates to 50% and reduce levels of residual waste (2013).
Policy Framework and Budget
21. This is a matter for Executive Decision by Cabinet.
Consultation (including Ward Member Consultation)
22. None for this report.
Relevant Scrutiny Committee
23. Economy and Environment.
Clifford Parish, Operational Manager Waste Management and Cleansing Tel No. 02920 673220
Accountant, Building and Visible Services
Operational Manager Legal Services
Group Auditor Audit
Procurement Officer Audit
Rob Quick, Director of Environmental and Economic Regeneration.