AGENDA ITEM 4
APPENDIX 1
Borough of Poole
Supplementary Business Case Document
Garden Waste 2012
Version:
Date of Issue:
1
VO.1
October 2011
1. DOCUMENT DISTRIBUTION
This is a controlled copy document
Name
Shaun Robson
Ian Poultney
Rachel Davies
Job Title / Role
E&CPS – Service Unit
Head
E&CPS – Contracts &
Performance Manager
Action Required
Review & Approve
Principal Officer
Author
Review & Approve
2. DOCUMENT VERSION CONTROL
Version
VO.1
2
Date
04.10.2011
Amended By
Rachel Davies
Summary of Change
Initial Draft under Construction
Contents
Page number
1. Executive Summary
4
2. Background information on Garden Waste
5
3. Introduction of tri weekly collection
9
4. One off payment for green bins
12
5. Chargeable scheme
16
6. Do nothing
19
7. Bag Collections – Pros / cons
21
8. £250 million Government fund for weekly collections
22
9. Fortnightly Collection costs
23
3
1. EXECUTIVE SUMMARY
Purpose
 To meet the expectation of a net expenditure reduction included within
the Medium Term Financial Plan 2011- 2014 which was approved by
Council on 1st March 2011
 To meet resident’s demands for a kerbside garden waste collection
service that is available to all properties
 To divert garden waste away from landfill
What do we do now?
Provide a non chargeable garden waste collection service to 22,000
properties within the Borough using 240 litre bins with fortnightly collection.
The scheme operates from April to October and is delivered by double shifting
refuse vehicles with staff working from 15:00 to 23:00.
4
2. BACKGROUND INFORMATION ON GARDEN WASTE (Frequently
Asked Questions)
Is the collection of Garden Waste at the kerbside a statutory
responsibility?
The collection of green waste at the kerbside is a discretionary service; as
such it is a service the council is permitted to charge for.
Why do we need to recycle garden waste?
To remove biodegradable waste that would otherwise be sent to landfill. This
has environmental and financial benefits. It currently costs about three times
as much to dispose of waste in black bins as it does from green or blue bins.
This is largely due to a central government tax which is charged on all waste
landfilled. The Borough also has a recycling target which this segregation of
green waste contributes considerably to.
Why can’t garden waste go into the black bin?
Sending biodegradable garden waste to landfill has a detrimental impact on
the environment. In order to dissuade councils from doing this central
government have placed a tax on all waste disposed of at landfill. This tax
now means it is approximately three times more expensive to dispose of
waste at landfill than composting which is counted as recycling.
Why can’t garden waste go into the blue bin?
Waste collected in blue bins goes through a mechanical process when it is
sorted which is incapable of handling organic/ garden waste.
How do we recycle garden waste?
Waste collected in green bins is sent to Eco Sustainable Solutions Ltd in Hurn
Dorset. Once at Eco the waste is composted and then sold.
How many households currently have the Kerbside Garden Waste
Collection?
22,000 properties in Poole are serviced by a green bin collection, fortnightly.
How many tonnes of garden waste are taken annually to the civic
amenity site?
Last year around 4000 tonnes of garden waste were disposed of by residents
at the CA site.
What happens to this garden waste?
Civic Amenity garden waste is sent to Eco Sustainable Solutions Ltd in Hurn,
Dorset where it is composted.
What percentage of people who responded to the consultation wanted a
kerbside garden waste collection?
95% from leaflet/online form and 91% from POP (Poole Opinion Panel)
5
indicated they thought the Borough should offer a kerbside garden
waste collection service.
How many people who responded to the consultation wanted a two
weekly collection of Kerbside Garden Waste?
92% from leaflet/online form and 87% from POP
Why is a two weekly collection the preferred option?
 No other Authority provides a 3 weekly collection service. Neither
tonnage data or resident behaviour is available.
 Easier for residents to remember their collection as it is in line with
recycling collections.
 Best practice suggests a 240ltr bin is of sufficient capacity to
accommodate the waste for the size of property on the scheme for a
two week period.
 Waste if left too long in a contained state will begin to degrade and may
begin to smell.
How has the Kerbside Garden Waste Collection scheme been funded?
The garden waste kerbside scheme was established 2005/6 and was funded
via a central government grant (Waste Performance Efficiency Grant) up until
2007/8. Since that date the scheme has been built into the base budget of
E&CPS.
How do we maintain a Kerbside Garden Waste Collection in the future
which is available to all Poole Residents?
The Borough of Poole’s MTFP makes provision for the continued collection of
garden waste from 22,000 properties. There is no budget allocation to extend
the scheme. To make it available to all residents either the proposed
chargeable scheme would be necessary or additional funding would need to
be identified by the Council.
If a chargeable Kerbside Garden Waste Collection is implemented what
will happen to any surplus funds raised?
Any surplus funds raised would go to support other essential services
provided by the council.
6
Questions about a chargeable scheme
What proposals have been looked at in relation to how fees might be
collected?
Proposals for payment include:
 Online using credit/debit cards
 Over the telephone using credit/debit cards
 Cash would be accepted at E&CPS’s offices and Civic Centre
What will it cost to collect the money?
The setting up of the chargeable scheme and the on going customer service,
creditor and ICT services associated with collecting the money has been
budgeted at £33,500 per annum. This is based on 18,000 properties joining
the scheme.
Can consideration be given to using the Access to Leisure & Learning
(ATLL) scheme concession for people on means tested benefits?
Yes it could be. The challenge is to ensure that the costs of administering a
concessionary scheme are not so great that they render the business case
unviable.
We can accept ATLL and give a discount as long as the Customer pays face
to face at one of our planned pay points – Civic or E&CPS, Newfields.
However, we cannot accept payment on the web and give a discount for ATLL
due to the implementation timescales.
Access to Leisure and Learning is Poole's discount scheme that allows
disabled people, people on low incomes and those in full-time education
(aged 16 years and over) to take part in leisure and sports activities at
reduced rates.
There are currently around 4000 people in the scheme. Activities range
from sport and learning to leisure pursuits and are suitable for both children
and adults.
What happens if someone who currently has a green bin opts out of the
scheme? Will their bin be collected and reused elsewhere?
Yes. Bins will be inspected, jet-washed and sent out to other properties who
have joined the scheme.
What constitutes a budget deficit?
A budget deficit is a financial situation that occurs when a council has more
committed spend than it has funds available to cover the spend.
How many “Bring” sites are there in the Borough and where are they?
There are two all year round sites:
Rossmore Leisure Centre
Harbourside 2 Car Park in Baiter
7
Fortnightly (Saturdays) for 3hrs
Fortnightly (Saturdays) for 3hrs
And three winter sites from November to March:
Western Road Car Park Canford Cliffs Fortnightly (Saturdays) for 3hrs
Lake Pier Car Park in Hamworthy
Fortnightly (Saturdays) for 3hrs
Bearwood Playing Fields
Fortnightly (Saturdays) for 3hrs
Should we consult on the 3-weekly proposal and what would that
consultation cost?
We could consult on this. We would expect people to tell us that they have
already told us their views and that a 3 weekly service is not as good as a 2
weekly service. The garden waste consultation this summer cost £5,357. It
took place over 6 weeks and was supported by our temporary summer
promotions team (£12,000) who manned public information stands at several
locations. Any additional consultation could not be supported by a promotions
team.
What about further opportunities for Government funding?
The Government recently announced that it is making £250 million available
for Councils, individuals or groups through a “Weekly Collections Support
Scheme”. This is primarily aimed at returning the 195 Councils who operate a
bi-weekly collection to a weekly collection and from dissuading the remaining
153 from changing to a bi-weekly collection.
Councils will be able to bid for a mixture of revenue and capital items.
Additional technical information about the scheme, the bid process and the
timetable is expected from DCLG shortly.
At this time we are unable to advise of the likelihood of gaining funding for
Poole’s waste collection service or when we will be in a position to know the
answer to this question.
8
3. OPTION 11 – INTRODUCTION OF TRI-WEEKLY
COLLECTIONS FOR 33,000 PROPERTIES
What is the Option?
11.That an additional 11,000 green bins are rolled out across Poole; that there
is no charge for either the supply of bin or subsequent waste collection
service and that all bins are emptied three-weekly rather than fortnightly.
Conditions
No garden waste in the black bins across the Borough
Officers will select the properties
7 month scheme – April - October
Assumptions
1. Tonnage yield
The financial model shows a range of possible tonnages of garden waste to
be yielded from adding an additional 11,000 properties to the garden waste
scheme. From analysis carried out on the contents of residual waste bins in
Poole, it has been estimated that approximately 3.5kg garden waste per
household per week is disposed of in the black bin. If this 3.5kg per household
is diverted each week over the 30 weeks the scheme is running this would
produce 1165 tonnes. It is probable that the yield would be greater than 3.5kg
per household per week however, as this is the average of properties
surveyed and we would be selecting houses where the most garden waste
could be diverted. The 22,000 households currently on the scheme, which
were selected for garden size currently produce 6.8kg per household per
week (4500 over the year). As it is unlikely that the next 11,000 properties
would produce as much garden waste as those selected for the first 2 phases,
a figure between 1165 and 2250 seems most likely.
2. Effect of 'No Green in Black policy'
The figures in this model do not take into account the effect the 'no green in
black' policy has on the households that are not part of the scheme
(approximately 33,000). If this policy were successful in diverting all garden
waste (100%) from the black bins of the remaining 33,000 properties this
would be approximately 1500 tonnes. However, it is extremely unlikely that
this amount would be diverted from properties without any access to a garden
waste collection, as our analysis of the black bin showed that even green bin
users (to whom a no green in black policy currently applies during the
collection season) place on average 1.1 kg per week in the black bin (1.49kg
on non collection week, 0.73kg on collection week).
If the diversion rate among green bin users is currently 82% on the noncollection week when bins are collected fortnightly, it is likely that this will drop
further when the collection of garden waste reduces frequency from
fortnightly to three-weekly.
If 1 household in 4 of the group not selected for the garden waste bin service
cease putting garden waste in their black bins and home composted instead
the cost saving would be £34,698.
9
3.Employee / Vehicle costs
Although theoretically half the work done by 2 double shifted vehicles over 2
weeks could be done by one vehicle in one week, it has been assumed that
extra resource is needed. Reducing collection frequencies from fortnightly to
three weekly will lead to heavier bins being presented, which will mean
additional resource is required to complete the rounds at 'heavy' periods
during the season (April, September and October). In the scenario where
11,000 bins yield 4,000 tonnes green waste, it has been assumed that an
extra round is required all year round. A round is a vehicle, driver and 2
loaders.
4. Printing
The costs of printing calendars for the extra 11000 properties are half the
current cost (£1159.80).
Advantages
- 11,000 new properties will have access to the scheme
- Further diversion of garden waste from landfill which will
impact on our recycling rate
- Further diversion of waste as a result of excluding garden waste from
black bins
Disadvantages
- We are not aware of any other Local Authority who has tried 3 weekly
collections before. There has been no analysis or testing. There is
therefore considerable uncertainty and significantly higher risk.
- 92% of residents who completed the consultation said they wanted a
fortnightly collection
- Waste left in a bin for three weeks is more likely to decompose and
produce odours as a result
- Garden waste collections w/c 3rd Oct 2011 did not finish their rounds
due to the large amounts of green waste in the bins. This meant that
vehicles had to tip waste 3 times leading to delays in collection. It is
likely that bins that are collected every three weeks will be heavier and
therefore rounds will not be able to collect as many bins as they do at
the moment
- Scheme is still not available to all properties in the Borough
- The MTFP gap would not be completely closed. The contribution would
heavily depend on the diversion achieved
- Inequity around disposal, residents without an option to have a green
bin will have to adhere to ‘no green in black’ policy without the same
disposal method availability
10
Financial impact
Option 11 - 11,000 additional bins - tri-weekly collection
2012/13
2013/14
2014/15
£
£
£
WASTE COLLECTION COSTS
Employee Related
68,849
68,849
68,849
Transport
31,025
31,025
31,025
Operational Running Costs
31,482
31,482
31,482
(88,507)
(88,507)
(88,507)
42,849
42,849
42,849
0
0
0
Total Income
0
0
0
Marginal Cost of Waste Collection Service
42,849
42,849
42,849
79,540
82,520
85,440
(184,404)
(202,524)
(220,604)
Marginal Cost of Waste Disposal Service
(104,864)
(120,004)
(135,164)
Net Impact on Council
(62,015)
(77,155)
(92,315)
exclude existing budget
Gross Marginal Cost of Service
Income
WASTE DISPOSAL COSTS
Green Waste Collected
Landfill additional/(avoided)
11
4. OPTION 12a and 12b – ONE OFF PAYMENT FOR GREEN
BINS
What is the Option?
That green bins are initially purchased via the B.O.P for £40, with collection
free from there on. Existing green bin users could continue to have a bin for a
one off purchase of £20.
Conditions
No garden waste in the black bins across the Borough.
Bins are currently delivered with a house number sticker attached. The
Borough would not wish to indelibly mark the bins as they are still the property
of the Borough and as such may be re-used.
Assumptions
1. As the scheme is an ‘opt in’ scheme we do not know how many
customers we would have. 5 potential scenarios have been modelled
with a range of participating households from 8,000 - 44,000.
2. We have to make a judgement about the amount of ‘old’ customers we
would retain on the scheme and how many ‘new’ customers we would
recruit. We have estimated that this would be in the region of 80% /
20% old: new, however a 50:50 split for the purpose of comparison has
also been included.
3. An assumption has been made in all scenarios that we will only
purchase bins for the ‘new’ customers and that those who have a bin
already will continue to use it. Used bins from households opting out
will not be reused.
4. For simplicity, an assumption has been made that after the first year no
more bins are purchased and no new subscribers are added to the
scheme.
5. In the fortnightly opt-in scheme it has been assumed that one crew
(double shifted vehicle + driver+2xloaders) will service 9000 bins. This
is lower than the number of bins currently serviced on one round
because those rounds were designed for optimum efficiency which will
not be achieved with an opt in scheme. Therefore there is an extra
crew and vehicle for every 9000 bins.
6. For three-weekly collections, it has been assumed that 1 crew can
service 12,000 bins over the 3 week collection cycle. The numbers of
vehicle and employees have been adjusted to reflect this.
7. The garden waste diversion has been calculated as 3.53kg per week
for 30 for ‘new’ customers and 6.8kg per week for ‘old’ customers (the
12
figure of 6.8kg per week is calculated by dividing the annual
collection tonnage by 22000 properties then by 30).
8. A figure has been included for the amount of garden waste that may
find it’s way back into the black bin if fewer than the current 22,000 ‘old’
customers opt in. As households on the current scheme put 6.8kg per
week of green waste per household in the green bin it has been
assumed that for those who opt out, 25% of this goes back into the
black bin. The 25% reflects the fact that some residents will take into
account the ‘No green in black policy’.
9. For printing/marketing costs an assumption has been made that this
will be 3 times the amount we currently spend as we will be marketing
to the entire Borough.
10. For bin delivery an assumption has been made that it takes 1 vehicle
and 3 staff 4 weeks to deliver/collect the bins. This may need adjusting
in some of the scenarios.
11. In the three weekly spreadsheet it has been assumed that the amount
of garden waste put into the black bin by green bin users on their non
collection week (1.49kg) doubles. This is subtracted from the garden
waste diversion line.
Advantages
- May encourage non regular users of the scheme to buy a bin as there
is no annual fee so it is available ‘as and when’.
Disadvantages
- Residents who have already participated in the scheme free for 4 or 5
years have a preferable rate.
- The MTFP gap would not be completely closed. The contribution would
heavily depend on the diversion achieved.
13
Financial Impact – Option 12a
Option 12a - One-Off fee - fortnightly collection - 24,000 bins
2012/13
2013/14
2014/15
£
£
£
WASTE COLLECTION COSTS
Employee Related
84,882
84,882
84,882
Transport
38,250
38,250
38,250
Operational Running Costs
51,128
51,128
51,128
(88,507)
(88,507)
(88,507)
85,753
85,753
85,753
(82,286)
(82,286)
(82,286)
Total Income
(82,286)
(82,286)
(82,286)
Marginal Cost of Waste Collection Service
3,467
3,467
3,467
(2,561)
(2,657)
(2,751)
(33,786)
(37,094)
(40,395)
Marginal Cost of Waste Disposal Service
(36,347)
(39,751)
(43,146)
Net Impact on Council
(32,880)
(36,284)
(39,679)
exclude existing budget
Gross Marginal Cost of Service
Income
WASTE DISPOSAL COSTS
Green Waste Collected
Landfill additional/(avoided)
14
Financial Implications – Option 12b
Option 12b - One-Off fee - tri-weekly collection - 24,000 bins
2012/13
2013/14
2014/15
£
£
£
WASTE COLLECTION COSTS
Employee Related
56,588
56,588
56,588
Transport
25,500
25,500
25,500
Operational Running Costs
51,128
51,128
51,128
(88,507)
(88,507)
(88,507)
44,709
44,709
44,709
(82,286)
(82,286)
(82,286)
Total Income
(82,286)
(82,286)
(82,286)
Marginal Cost of Waste Collection Service
(37,577)
(37,577)
(37,577)
(28,635)
(29,708)
(30,759)
26,876
29,508
32,134
Marginal Cost of Waste Disposal Service
(1,759)
(200)
1,375
Net Impact on Council
(39,336)
(37,777)
(36,202)
exclude existing budget
Gross Marginal Cost of Service
Income
WASTE DISPOSAL COSTS
Green Waste Collected
Landfill additional/(avoided)
15
5. OPTION 6a – INTRODUCTION OF A CHARGEABLE
SCHEME AT £31 AS OF 27th APRIL 2012.
What is the Option?
6a.Offer a chargeable scheme for 9 months (March – November) for
£31 per year per 240 litre bin which is available to all properties
Conditions
No garden waste in black bin rolled out across whole Borough to those both
on and off the scheme
Assumptions
 Use of a 240 litre bin
 £31 charge per bin for nine months service (March to November)
 50% Discount available for Access to Leisure and Learning Card
Holders
 The service for existing properties starts on March 5th 2012 with
payment required no later than 27th April 2012
 New properties can sign up for the scheme at the end of November
2011and the service will commence no later than the 1st May 2012
 Fortnightly collection
 Available for all properties
 For printing/marketing costs an assumption has been made that this
will be 3 times the amount we currently spend as we will be marketing
to the entire Borough.
Payment can be made:
 Online using credit/debit cards
 Over the telephone using credit/debit cards
 Cash would be accepted at E&CPS’s offices and Civic Centre
Advantages
 Enhances choice to all residents with all existing options still available
(home composting, bring sites, Household Waste Recycling Centre)

Residents will only pay for a scheme if they want it

More than one bin is available (at a price)

Two weekly collection

Two additional months compared to current scheme (March and
November)

Bin Collections will start in March 2012 with payment taken up until
27th April 2012
16

Fair inclusive scheme available to all

Inequality arising from all properties paying for a service received only
by 22,000 removed

Flats can benefit from the scheme

Neighbours can bin share if they wish and this will be promoted as an
option
Disadvantages
 Some residents may not be able to afford scheme

17
Unpopular with some residents who have benefitted from a free
scheme previously
Financial Implications
Option 6a - £31 annual fee - 18,000 bins
2012/13
2013/14
2014/15
£
£
£
WASTE COLLECTION COSTS
Employee Related
73,564
73,564
73,564
Transport
32,786
32,786
32,786
Operational Running Costs
120,811
120,811
120,811
exclude existing budget
(88,507)
(88,507)
(88,507)
138,654
138,654
138,654
(558,000)
(558,000)
(558,000)
Total Income
(558,000)
(558,000)
(558,000)
Marginal Cost of Waste Collection Service
(419,346)
(419,346)
(419,346)
9,216
9,562
9,900
(21,443)
(23,542)
(25,637)
Marginal Cost of Waste Disposal Service
(12,227)
(13,980)
(15,737)
Marginal Impact on Council
(431,573)
(433,326)
(435,083)
Gross Marginal Cost of Service
Income
WASTE DISPOSAL COSTS
Green Waste Collected
Landfill additional/(avoided)
18
6. DO NOTHING
What is the Option?
- Continue as we are
Conditions
No garden waste in black bin policy for users of the scheme only
Assumptions
Residents not on the scheme will be disappointed
Advantages
- Scheme remains in place
-
95% participation rate
-
Approximately 17,000 users
-
Diverting 4304 tonnes from landfill annually
Disadvantages
- Only 1/3 of Borough receives the scheme, therefore current inequality
persists
-
April start – too late?
-
October finish – too early?
Financial Implications
- Funding is not available to extend it further
-
19
The current gap in the MTFP would not be closed
DO NOTHING (CONTINUED)
What is the Option?
- Stop garden waste scheme altogether
Conditions
Assumptions
Waste will be put back into the black bins as an increased disposal cost to the
Borough
Advantages
Fair to all
Disadvantages
- This option reduces residents choice
Green bin scheme users - Resident dissatisfaction at scheme finishing
Non green bin scheme users - Want green bin, scheme has now been
removed with no opportunity for it to return (in foreseeable future)
-
Costs associated with retrieving the green bins and subsequently
storing them
Financial Implications
This will cost the Borough money, as waste currently diverted to composting
through the green bin will be sent to landfill at nearly three times the price –
The Council would incur a net cost of £125k
20
7. COLLECTION OF GARDEN WASTE USING BAGS
What is the Option?
A number of suggestions were received involving the provision of bag
collections, whilst this may appear to be suitable for a small proportion of
properties within the Borough due to the configuration of the existing service
and infrastructure which supports it, bags have been deemed inappropriate
for the following reasons.

Unless there is a register of bag purchases, it would be necessary to
drive every road in Poole on a specified ‘bag’ day which would lead to
an inefficient use of vehicles

The distribution of bags would be on a collection only basis from
Council offices which would prove costly to administer

The heights at which bags have to be thrown into refuse lorries (the
‘rave heights’ ) are such that approximately half of the male working
population would have problems throwing the heaviest bags into the
lorries

The collection fleet are manufactured and configured to collect waste in
wheeled bins. Manual handling of bags into these vehicles over a
sustained period is deemed unsuitable

Wherever possible, refuse collection should be carried out using
wheelie bins of appropriate sizes rather than bags or small dustbins
21
8. £250 MILLION FUND FOR WEEKLY COLLECTIONS

A £250 million fund from the Department for Communities and Local
Government to encourage councils to either retain or return to weekly
waste collections.

Additional technical information about the scheme, the bid process and
the timetable is expected from DCLG shortly. At this time we are
unable to advise of the likelihood of gaining funding for Poole’s waste
collection service

It will be available to local authorities who guarantee to return to, or
retain, weekly waste collections for at least five years.
22
9. FORTNIGHTLY COLLECTION COSTS
Officers have been asked to report to Members on the potential savings from
moving from weekly to bi-weekly collections.
Of the 348 waste collection authorities in England and Wales, 195 operate
alternate weekly collections (AWC) or fortnightly and 153 operate a weekly
collection of residual waste.
Nine out of the top ten recycling councils in the country currently provide
alternate weekly collections. The tenth operates a fortnightly residual waste
collection with a weekly food waste collection.
Some councils have found that alternating the collection of residual waste one
week and recycling the next increases the amount of recycling that residents
put out for collection.
If fortnightly collections of refuse (black bins) were introduced across the
borough, savings could be made from reduced staffing costs (£269,400) (4
crews consisting of 1 driver and 2 loaders) and reduced vehicle costs
(£203,200) (4 vehicles). There are currently nine refuse rounds but as bins
would be heavier over a fortnight than a week it is thought that five refuse
rounds would still be required. There may also be some savings from reduced
number of staff required on the roster staff team as there would be fewer
posts to cover for holiday/sickness.
There may however be some additional costs for purchase of bins as not all
properties currently have the same size bins. Provision for flats would also
need to be addressed.
23