Agenda item

Councillor Godfrey, Chair of the Task and Finish Group, gave the following presentation on the findings of the review:-

 

Scope of the Review

-          To explore the current provision of Household Waste Recycling Centres and special household waste collections (green waste and bulky collections)

-          Examine options for future provisions identifying potential areas for savings and/or income generation

-          Explore options for increasing recycling rates and introducing re-use into the Waste Collection Service

 

Legal and Policy Drivers

-          Environmental Protection Act 1990, Controlled Waste Regulations 2012 and Waste (England and Wales) Regulations 2011

-          Collection of household waste including at least four types of recyclable waste must be free of charge

-          Must provide HWRCs for depositing household waste free of charge open at all reasonable times; Legislation does not stipulate the number of sites or opening hours

-          The Council can charge for green waste, non-household waste (such as DIY wastes, hardcore, rubble) and commercial waste

-          RMBC’s Waste Strategy covers the period 2005-2020 but it does require review; this is in progress of production with BDR partners

 

Household Waste Recycling Centres (HWRC)

-          Four centres in Rotherham all of limited size

-          Managed and operated by FCC Environmental under BDR contract due for renewal in 2018

-          No business waste is accepted

-          All Centres closed one day per week with deferred decision to close for additional day in 2013

-          Some impact from closure felt in terms of increased congestion, traffic queues and customer service

-          One day closure has not led to any significant increase in flytipping although there have been isolated incidents at the entrance to sites

 

HWRC’S Charging for Non-Household Waste

-          Examined successful scheme in North Yorkshire

-          Kier runs the scheme and takes the income; North Yorkshire Council benefits through avoiding haulage and disposal costs

-          Extensive consultation prior to introduction

-          73% reduction of deposited waste but no discernible increase in flytipping; increased use of skips

-          Scheme also available to small businesses

-          Task and Finish Group recommends the Council to explore introduction of charging for non-household wastes – FCC supportive

 

HWRC’s – Introduction of Re-use Service

-          No current provision on any of our HWRCs

-          FCC introducing limited re-use in conjunction with WEEE Service provider and Doncaster refurnish.  Reluctant to scale up within existing contract

-          British Heart Foundation keen to establish re-use on HWRCs

-          Task and Finish Group recommend establishment of re-use on HWRCs as part of new contract

 

HWRCs – Joint BDR Contract

-     Work should commence now by BDR for contract renewal in 2018

-     Benefits of HWRC provision being considered as a whole across the partnership – greater economies of scale

-     Investigate longer term options for providing larger sites with greater scope to accept commercial waste, enhance recycling and re-use provision

 

Bulky Goods Collection

-          Statutory requirement but can make a reasonable charge

-          Price sensitive and operates at small loss

-          Some goods recycled but no current re-use

-          Potential to partner with a charity such as British Heart Foundation on jointly provided or complete outsourcing basis

-          Task and Finish Group recommend further discussions with British Heart Foundation to commission such a service

 

Textile/Small Electricals Kerbside Collection

-          Elmbridge Council – British Heart Foundation run schemes alongside normal kerbside collection service three times a year at no cost to the Council

-          Elmbridge were very happy with the scheme – recommend pilot in first instance

-          Tangible benefits in reducing waste; income for the British Heart Foundation and job creation and synergy with Heart Town status

 

Green Waste Collection

-          Summer service only at cost of £1M

-          Pressure to introduce charges – Sheffield already do and Doncaster considering

-          Charging unpopular with residents and low take up likely (only 3% in Sheffield) but other authorities have a much higher take up rate

-          Increased flytipping likely and green waste in black bin could have contract implications for BDR waste facility at Manvers

-          Home composting should be encouraged – look at cost/benefit of free/subsidised compost bins

-          Recommend BDR examine benefits of combined contract to save costs and maintain service

 

Commercial Waste Collection

-          Currently serve 12% of market with net budget contribution of £190K

-          Charges significantly higher than neighbouring authorities

-          Scope to expand this service threefold by taking advantage of available headroom in favourable price category within BDR Manvers contract

-          Discussions with Nottingham City Council which runs commercial waste collection as part of wider facilities management service for businesses

-          Nottingham City Council have large market share and generate surplus of £1.8M annually

-          RMBC would need to invest in establishment of a tailored team to significantly expand its customer base and potentially offer additional Council services

-          Task and Finish Group recommend production of a fully costed business plan with the option of a combined service throughout the BDR partnership to maximise scale and profitability

 

The Review Group’s recommendations were:-

 

Short Term (within the 2015/15 financial year)

 

1.    Consider the ways in which home composting may be promoted in Rotherham including the cost/benefit of offering free/subsidised compost bins to residents.

 

2.    Continue the discussions with the British Heart Foundation with a view to commissioning:-

      

       (a)  A joint approach to the provision of bulky waste collection service to all householders in RMBC which enables greater reuse of unwanted furniture

 

       (b)  The establishment of a textile/bric-a-brac/small electrical goods household collection service

 

3.    Negotiate with FCC and a third sector/not for profit organisation to introduce a smalls scale re-use facility on one or more of the HWRCs as a means of encouraging re-use and raising awareness of the opportunities for re-use of household bric-a-brac and other small items.

 

4.    Explore with FCC the scope for introducing a charge for non-household waste at HWRCs during 2016/17 for the remainder of the contract period at all RMBC HWRCs for all items of non-household waste that the Council may legitimately make a charge for.  Evaluate the benefits to the Council as well as the likely impact on user satisfaction and any perverse consequences such as increases in fly tipping.

 

Medium Term (from 2016/17 onwards)

 

5.    Given that RMBC works collectively across a range of waste services with Barnsley and Doncaster and there is an effective governance arrangement already in place through the Joint Waste Partnership Board:-

 

       (a)  That work begins early in 2016/17 with BDR partners to jointly review the most cost effective way of commissioning HWRC services across the three Boroughs and scope a service specification that will ensure income is maximised and costs are minimised while maintaining a service level that will be acceptable to residents.

 

       (b)  That careful consideration be given to the establishment of re-use facilities at HWRCs either as part of a new joint contract through the BDR arrangements or as a RMBC sole commissioned service.

 

       (c)  That BDR examines the opportunities and benefits of a combined contract for the collection of green waste across the three Boroughs during the growing season thus maintaining a valued service to residents, increasing recycling rates and potentially saving money not excluding the possibility that a charge may need to be made for this service.

 

       (d)  That a fully costed business plan be produced for a substantial expansion of the commercial waste collection service throughout the Borough and potentially beyond the Borough boundaries including the option of a combined service through the BDR waste partnership to maximise scale and profitability.

 

Discussion ensued with the following issues raised/clarified:-

 

·           Kerbside Collection was subject to a full Service review that was currently underway

 

·           The Waste Strategy required a refresh due to changes in Legislation etc.  Work was taking place with Barnsley, Doncaster and Sheffield to develop an overarching strategy within which each of the individual authorities would have the ability to form a service to suit their local needs.  It was hoped to bring a report to Members by the end of the financial year for initial consideration and then go out for wider consultation

 

·           The issue of Rotherham residents not being able to use a Barnsley/Doncaster HWRC and vice versa needed to change.  When the BDR contract was due for renewal an improved co-ordinated approach should be sought

 

·           The Commercial Waste market was very well developed with a number of key national players.  However, Rotherham’s market share was less than others locally.  A proposal was being developed to focus on smaller companies who may not have Commercial Waste agreements in place and possible alignment with enforcement services

 

·           Possible use of resources to market the services

 

·           City Region – it was believed that there was scope probably with the need for substantial investment in disposal facilities but there was an opportunity to create facilities which would enable the Authority to review the way in which it collected.   Discussions had commenced with the other South Yorkshire authorities to ascertain what the implications would be with work commissioned as to the  differences between the different collection arrangements and what the Authority would need to do to align them

 

·           There was a joint steering group of Barnsley, Doncaster and Rotherham officers which initially met to discuss the Waste PFI but the remit now extended to encompass all matters of mutual interest

 

·           The Task and Finish Group had looked at charging for certain types of waste which may increase income/reduce costs and enable consideration to be given to reversing previous decisions to close sites

 

The Select Commission thanked Councillor Godfrey, Diane Thomas (Centre for Public Scrutiny) and Christine Majer (Scrutiny Officer) for the work they had done.

 

Resolved:-  (1)  That the report be received and forwarded to the Overview and Scrutiny Management Board for consideration.

 

(2)  That a progress report on the Task and Finish Group’s recommendations be submitted to this Select Commission in January, 2017, particularly in respect of commercialisation of the Service.