Agenda item

To consider a report recommending an in-sourced delivery of customer facing sites and facilities, with these being supported by contracted haulage and disposal when the current Household Waste Recycling Centre contract expires in October 2023.

Cabinet Portfolio: Transport and Environment

Strategic Directorate: Regeneration and Environment

The Vice-Chair welcomed the Cabinet Member for Transport and Environment, The Strategic Director for Regeneration and Environment, Assistant Director, Community Safety and Sreetscene and the Head of Environmental Services to the meeting.

The report recommended an in-sourced delivery of customer facing sites and facilities, with these being supported by contracted haulage and disposal when the current Household Waste Recycling Centre (contract expires in October 2023.

Options considered include the contracting out of the services, alongside a range of internal delivery models. There were significant complexities attached to developing an in-house service in a highly regulated industry. However, there were also a range of potential benefits in terms of new services and more flexibility in delivering existing services, to meet the needs of residents and the Council. The report recommended an in-sourced delivery of customer facing sites and facilities, with these being supported by contracted haulage and disposal. The procurement of a delivery partner to provide the HWRC service for up to three years, whilst also supporting the Council to develop and implement its in-house delivery model was also recommended. The haulage and disposal aspects of the contract would continue to be provided by the market beyond the in-sourcing of the front-end of this service.

The Cabinet Member for Transport and Environment introduced the report. He outlined that current arrangements were to end in October 2023 and therefore, alternative arrangements were needed. It was proposed that the service followed a different operating model. It was stressed that it was a good performing area.

It was noted that Rotherham retained good relationships with Barnsley and Doncaster Councils. However, it was difficult to deliver Rotherham Council commitments such as the Real Living Wage, Social Value priorities and enhance re-use/ recycling targets in the current contractual arrangements.

Should the preferred option be approved, there would be a transition period of three years, with staff becoming directly employed by the Council at that stage. A contractor would retain onward movement of waste.

There had been some public engagement on service delivery and soft market testing had been undertaken to establish if the option was viable.

The Vice-Chair invited questions from the Board and a discussion on the following issues ensued:

Clarification was sought of the level of risk attached to bringing the service in-house and what mitigations were being put in place to manage these. It was outlined that there was a range of technical competences required but this was being addressed. It was also recognised that work was needed to support staff to acquire technical skills. It was noted that there was a level of operational and financial risk in the waste disposal market that needed to be understood.

The commitments to the to the real living wage and re-use processes were welcomed.  Clarification was sought if there was flexibility within contractual arrangements to stipulate that these could be delivered without taking on TUPE liabilities, training requirement and future pay awards. A view was expressed that the preferred option would cost more to the Council, with the authority assuming all of the risks. It was questioned if this option provided best value.

In response, it was outlined that the difference between the options was approximately £21k and the level of risk was not significantly more than the current contract. It was felt important that the public engaged with staff who would be directly employed by the Council. It was noted that in-sourcing provision would give flexibility to the service longer term to make changes that may require contractual negotiations if the service was to remain outsourced.

In response to a query regarding staffing, it was outlined that there were no plans to change to change staffing levels but this would be subject to review. It was noted that safety would be a primary consideration.

Clarification was sought if there were any reciprocal arrangements with neighbouring authorities to allow use of recycling facilities. It was outlined that Rotherham collaborated with other Councils on issues but the decision to extend use to non-residents lay with the respective authority.

Resolved:

1.    That Cabinet be advised that the following recommendation be supported.

1)         That Cabinet approve Option 3, which will provide for an in-sourced delivery of customer facing sites and facilities, with these being supported by contracted haulage and disposal, following an initial fully contracted service, and authorises the Strategic Director of Regeneration and Environment in consultation with the Cabinet Member for Transport and Environment (subject to confirmation by the Strategic Director for Finance and Customer Services) to agree the final delivery arrangements and subject to Council approval through the budget process.

2.    That Cabinet be requested to explore the feasibility of having reciprocal arrangements for use of Household Waste Recycling Centres with neighbouring authorities