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Agenda Item No

 

The Vale of Glamorgan Council

 

Cabinet Meeting: 23 September, 2013

Report of the Cabinet Member for the Environment and Visible Services

 

Future Reprocessing of Municipal Dry Recyclate

 

Purpose of the Report

1.         To advise Cabinet of the current position with the Council's reprocessing arrangements for municipal dry recycling and to propose a course of action for the future procurement of this service.

Recommendations

1.         That Cabinet authorise the Director of Visible Services and Housing to progress a formal procurement process for the treatment of all dry municipal recycling.

2.         That, after full consideration of the financial details contained within a further report on this agenda at Part II, Cabinet agrees to the use of SiteServ as an interim service provider, from 1st October, 2013 to 31st January, 2014, for the treatment of the Council's dry recycling.

3.         That Cabinet authorise the Director of Housing and Visible Services to formally withdraw from the agreement with Caerphilly County Borough Council for the joint procurement of future recycling reprocessing.

4.         That the Head of Legal Services be authorised to agree the terms of the interim contractual arrangement with SiteServ 

Reasons for the Recommendations

1.         To enable a formal procurement process to progress.

2.         To ensure that there is an appropriate interim contract arrangement in place that represents the best value to this Council.

3.         To formally end any commitment to participate within the recycling contract jointly procured with Caerphilly County Borough Council for the treatment of dry recycling.

4.         To allow the interim contract to be formally adopted.

Background

2.         In January 2012 Caerphilly County Borough Council (CCBC) placed an OJEU Notice with 'Buy 4 Wales' for the procurement of a suitably qualified and experienced contractor to provide a 'Material Recovery Facility' for municipal dry recycling. Although initially including 5 South East Wales local Authorities, the completed procurement related only to the Vale of Glamorgan and CCBC.

3.         The successful bidder for the joint procurement was SITA UK Ltd. (SITA) whose bid was made up of a basic unit price per tonne plus haulage to their plant, details of which were provided to Cabinet on the 20th May, 2013.  Cabinet resolved that delegated powers be given to the Director of Visible Services and Housing in consultation with the Managing Director, Head of Legal Services and the Cabinet Member for the Environment and Visible Services to agree a Memorandum of Understanding (MoU) with CCBC in respect to joint use of the CCBC contract with SITA for the future processing of the Vale of Glamorgan's co-mingled recyclate materials (min C1343 refers).

4.         Waste Management and Cleansing (WM&C) Officers instigated pre contract discussions with SITA representatives, which included qualitative analysis of our collected co-mingled recyclate and discussions on the use of a local transfer station from the 17th June, 2013.  The Council's Legal Department on the 7th June, 2013 were however informed by CCBC that they had issues with SITA concerning performance of the contract, advising that it would be prudent to delay completing the MoU between our respective Councils.

Relevant Issues and Options

5.         Since this date it has not been possible for CCBC to progress its contractual arrangements with SITA and there is now no likelihood of this matter being resolved such that the Vale of Glamorgan could make use of the service offered by SITA, without breaching EC procurement rules.

6.         The Leader of the Council wrote to the Leader of CCBC on 5th July 2013 to raise his concerns at the problems that CCBC were experiencing with the SITA on this most important collaborative project. It was made clear that, through no fault of the Vale of Glamorgan or its officers, the dispute between SITA and CCBC meant that the Vale of Glamorgan Council was effectively without a contract for its dry recycling re-processing. Whilst a letter of response was received on 18th July 2013, no assurance was provided that the dispute would be resolved soon and no further correspondence on this matter providing any such comfort has been received. CCBC have advised that they are currently taking their material to SiteServ in Llandow as an emergency measure.    

7.         As there is likely to be no prompt resolution to this dispute it is now necessary for the Council to procure its own dry recycling treatment service in order to ensure the provision of a compliant long term contract for the Authority. This process will however take up to 4 months to complete due to the legislative timeframes for contracts of such a value and there will therefore also be a requirement for an interim contractual arrangement from 1st October, 2013 to 31st January, 2014.

8.         Biffa Municipal Limited (BIFFA) have already confirmed their willingness to continue to provide the Council with  an extended contract to the 1st October, 2013 and subject to Cabinet's approval, this has now been confirmed up until the 31st January, 2014.  They however have informed officers that their current arrangement is not financially viable and that they cannot continue to provide the Vale of Glamorgan processing at the same price as the previous contract in future.  They have also confirmed that they will not be submitting a bid for any longer term contract after this date.  Details of Biffa's proposed new charges are provided within a separate PART II report to this Cabinet.

9.         As Biffa are not prepared to match their existing service charge for any further extension of their services, enquiries have been made with SITESERV Ltd in Llandow, D C Smith Caerphilly and SITA to establish capacity and price for processing the Vale's recycling during the interim period when the main contract is being procured. Details of the prices received are shown within aforementioned Part II report.

10.      Whilst Biffa have shown considerable support to the Council since March 31st this year when their contract for re-processing our recyclate ended, for which officer are grateful, the proposed decision to award an interim contract to SiteServ, whilst the main procurement process is progressing, is based on the fact that their price demonstrates 'best value' for the period; 1st October, 2013 to 31st January, 2014.

Resource Implications (Financial and Employment)

11.      The procurement process for the longer term contract from 1st February 2014 will be undertaken by the Council's Waste Management and Cleansing Division utilising existing staff. It is proposed at this stage that the process be funded from existing waste management and cleansing budgets.

Sustainability and Climate Change Implications

12.      Recycling plays a major role in providing sustainable waste management, not only saving available resources but making a considerable impact on reducing climate change.  Failure to recycle the Council's municipal recyclate would have a negative impact on the environment, employment and cost efficiencies within the Vale of Glamorgan.

Legal Implications (to Include Human Rights Implications)

13.      The EC Landfill Directive (1999 / 31 / EC), Landfill Allowance Scheme (Wales) Regulations 2004 and the WG Waste (Wales) Measure 2010 sets statutory targets for local authorities for the division of waste from Landfill, the percentage of municipal waste to be recycled, prepared for re-use and composted aswell as making local authorities liable to pay penalties in the event that they fail to meet these targets.

14.      Any procurement shall be carried out in accordance with the EU Public Sector Procurement Directive (2004 / 18 EC).  The Head of Legal Services will be required to progress the contractual formalities for both the interim arrangements and any future contracts.

Crime and Disorder Implications

15.      These are no crime and disorder implications associated with this report.

Equal Opportunities Implications (to include Welsh Language issues)

16.      There are no equal opportunity implications as a result of this report.

Corporate/Service Objectives

17.      Minimising our impact on the environment:

E1 Work with a range of partners to provide appropriate residual waste and recycling collection treatment and disposed services and achieve the national recycling target of 58% (2015 / 2016).

Policy Framework and Budget

18.      This report is a matter for Executive decision.

Consultation (including Ward Member Consultation)

19.      As the report relates to the whole of the Vale of Glamorgan no specific consultation has been carried out with Ward Members.

Relevant Scrutiny Committee

20.      Economy and Environment.

Background Papers

None.

 

Contact Officer

Clifford Parish Operational Manager Waste Management and Cleansing Tel. No. 02920 673220

Officers Consulted

Accountant Building and Visible Services

Operational Manager Legal Services

Group Auditor - Audit

Procurement Officer

 

Responsible Officer:

Miles Punter Director of Visible Services and Housing

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