Cabinet Member Report
Date:
Subject:
2 February 2009
Waste Collection, Recycling and Street Cleansing
Services Contract Re-Let – Approval of Service Levels
Summary
The current contract for Waste Collection, Recycling and Street Cleansing
Services is due for renewal on 15th September 2010. To deliver value for money
and continuing innovation the contract will be let using the Competitive Dialogue
procedure. This will enable bidders to contribute to the design of performance
management systems, make proposals to further reduce carbon emissions and
reduce financial risk by gaining a full understanding of the standards and scale of
services we require and how these can be delivered in a constantly changing
operating environment.
The ‘headline’ standards of service we will provide and be judged on by
residents, businesses and visitors will however not be a subject of discussion with
bidders. These will be firmly fixed in accordance with the wishes of Members and
the wider community.
The public consultation exercise has confirmed high levels of satisfaction with
existing services but with a strong demand for more recycling. Increasing the
number of litter bins and doing more to tackle smoking-related and fast food litter
were also frequently suggested as key areas for improvement in street cleansing
services. These changes and other suggested service improvements have been
incorporated into the proposed service levels for the new contract.
Recommendations
That the service levels detailed in Appendix 1 to this report are incorporated into
the tender documentation and that the contract be advertised for letting in
accordance with EU Public Sector Procurement Rules.
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Cabinet Member Report
City of Westminster
Cabinet Member:
Date:
Classification:
Title of Report:
Report of:
Wards involved:
Policy context:
Financial summary:
Cllr Danny Chalkley - Environment & Transport
2 February 2009
For General Release
Waste Collection, Recycling and Street Cleansing
Services Contract Re-Let – Approval of Service
Levels
Director of Environment & Leisure
All
A more sustainable, cleaner and greener city (City
Plan).
The current Contract has an annual value of £37.8m.
Report Author:
Mark Banks – Waste Strategy Manager
Contact details
Tel: 020 7641 3369
mbanks@westminster.gov.uk
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1.
Background Information
1.1
Formal preparation for this contract re-let commenced in summer 2008 with
the establishment of a Project Board chaired by the Deputy Chief Executive,
John Barradell, with senior management representatives from the finance,
legal, procurement, environment and customer services portfolios.
1.2
The re-let strategy has been reviewed, amended and agreed after consultation
with the Contracts Review Board, Chief Executives Strategy Group and on two
occasions with the Built Environment Policy and Scrutiny Committee. A
comprehensive public consultation exercise was also conducted during
September to December 2008. The service levels set out in this report were
designed at the end of this consultation phase and were then subject to further
scrutiny at a specially convened Members Task Group meeting on 19th
January.
1.3
The service levels set out in this report will form the basis on which tenderers
prepare their bid prices. It should be emphasised however that the range and
scale of individual services will change throughout the life of the contract. The
need for flexibility will be emphasised to bidders throughout the process.
2.
Process and Timetable
2.1
This report focuses solely on the range and standards of service to be
delivered directly to customers in the new contract. Many of the supporting
functions (provision of depots, types of vehicles, IT systems, retention and
training of staff etc.) that are critical to the successful delivery of high quality
services will be the subject of discussions with bidders before the full set of
contract documents is finalised. The development of these ‘dialogue topics’ is
being managed and authorised by a Re-let Project Board chaired by the
Deputy Chief Executive; John Barradell.
2.2
The large number of vehicles to be procured for the new contract means that a
10 month lead-time has been included in the re-let programme. Key stages in
the programme are:
Action
Date
Cabinet Member approval of service
levels
end Jan.
OJEU Notice published
early Feb.
Pre-Qualification
Feb-March
Dialogue Period
April – June
Evaluation of Detailed Solutions
July – August
Final Tenders Submitted
September
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Contract Award
Nov. 2009
Contract Start
Sept. 2010
3.
Results of Public Consultation
3.1
The public consultation programme ran for three months from mid-September
and was designed with support from the City Council’s Head of Consultation.
In total 1700 questionnaires were distributed to key stakeholders including
schools, places of worship, businesses and residents. In addition, 80 letters
were sent to the chairmen of the residents association. The consultation was
advertised in the recycling newsletter, Westminster Reporter and council
website. 170 residents and 75 businesses provided feedback via the online
consultation or hard copy questionnaires. A further 150 verbal responses were
gained via workshops at all of the Area Forums. Aside from a presentation at
the annual meeting of the Westminster Amenity Societies Forum, no residents
associations took up the invitation for officers to present on the re-let at
association meetings.
3.2
Individual consultation meetings were also held with organisations with specific
interests including the Business Improvement Districts, Transport for London
and neighbouring boroughs.
3.3
3.3.1
Waste Collections
76% of residents were satisfied with the current waste collection regime; this
finding being consistent with the 82% of residents that were satisfied with waste
collection services in the 2008 City Survey. As regards business respondents,
79% are satisfied with the current waste collection service with 46% wanting a
daily collection (which is the minimum frequency in the majority of business
areas and rises to three collections a day in many West End streets).
3.4
3.4.1
Recycling Services
This was the main area of discussion and comment from all groups consulted.
Whilst 76% of residents were satisfied with current recycling collections in the
2008 City Survey there is a clear demand for more frequent and more varied
recycling services. Twice weekly collections were requested by 42% of
residents. When asked what would encourage them to recycle more, 70%
wanted to be able recycle a wider range of plastics, while 46% said collect
Waste Electrical and Electronic Equipment (WEEE) and Batteries. Increase the
number and size of recycling containers and provide more street litter recycling
facilities were also common requests. The need for better communications and
more enforcement against non-participants were also frequently mentioned.
3.4.2
Business respondents were unhappy with the lack of commercial recycling
services provided with 40% expressing their dissatisfaction. The most common
materials requested to be collected for recycling were office paper and
redundant electrical equipment collections. These materials most probably
reflect the bias towards respondents mostly being ‘offices’ and glass, cardboard
and food waste would undoubtedly have featured on this list if more shops and
bars/restaurants had responded.
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3.4.3
It should be noted that many of the suggestions made by respondents are
already being acted upon – for example a new pilot recycling scheme aimed at
small businesses in Mayfair was recently launched. Little Venice is also using
a proportion of its Ward Budget to pay for a second doorstep recycling
collection each week. Food waste collections are also already taking place on
Church Street Estate.
3.5
3.5.1
Street Cleansing
The questionnaire results showed that 72% of residents believe the streets are
very clean or fairly clean. This again is consistent with the 83% of residents
who were satisfied with street cleansing services in the 2008 City Survey. The
main causes for concern raised by residents were split bags causing litter
issues, smoking related litter and fast food litter. 63% of residents suggested
that more litter bins should be installed and existing bins should be emptied
more often.
3.5.2
As regards business responses, 83% think their area is clean. 50% reported
smoking related litter is an issue while 40% said fast food waste was a
problem. 70% of businesses said installing more litter bins would help relieve
litter problems.
3.6
3.6.1
Waste Resources Action Programme (WRAP)
The Government’s waste agency WRAP undertook a ‘critical friend’ exercise
analysing the proposed recycling and waste collection specifications. The main
comment concerned the Big Black Bin Service which, given a comprehensive
doorstep waste collection service is already available, makes it easier to
dispose of ‘black bag’ waste than to recycle it. WRAP commented, “A
reduction in outlets for residential waste or bin sizes has been shown
elsewhere in the country to result in increased levels of recycling.”
3.6.2
Concerning the wider carbon agenda WRAP observes that “A desire to provide
more services could actually result in an increase in the numbers of vehicles.
This would need to be offset by any carbon/environmental savings that could
be derived from handling waste differently or from vehicles using different
energy sources or simply recognised that there needs to some short term
growth in order to achieve a longer term gain.”
3.6.3
WRAP also supported an extension of the “In-vessel Rocket” food waste
composting scheme operating in Church Street. They also suggest removing
glass from doorstep recycling collections to increase materials quality. The
provision of more bottle banks would also potentially increase the carbon
benefits of glass being recycled back into glass bottles/jars rather than its
current use as an aggregate replacement in road building etc.
3.6.4
WRAP also note the challenges of increasing recycling rates within an innercity environment with large numbers of flats. The table below compares
recycling rates for London boroughs with the largest proportions of flatted
accommodation (excluding City of London which has less than 2000
households in total). A comparison with other cities is less easily achieved as
councils service large suburban areas as well as households in the city centre.
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The key reasons for authorities with higher recycling rates than Westminster
are more frequent recycling collections or the local provision of a Recycling
Centre (‘council tip’).
Flats as %
of total
households
Recycling
Rate 07/08
Ranking
Westminster
87
22
5
Camden
83
24
=2
Tower Hamlets
82
14
9
Kensington & Chelsea
80
27
1
Islington
79
21
6
Hackney
73
16
=7
Lambeth
70
23
4
Wandsworth
63
24
=2
Southwark
61
16
=7
Authority
* BVPI 82a data i.e. excludes composting rate
3.7
3.7.1
Greater London Authority
The City Council has a statutory duty to consult the Greater London Authority
on all waste contracts and to take account of their comments. Officers have
been in contact with GLA colleagues throughout the re-let to date and this will
continue throughout the process. In meetings to date the GLA’s main focus has
been on encouraging the City Council to increase the amount of waste sent for
recycling or composting (and most particularly food waste composting).
3.7.2
As noted above the growth of recycling services will be a key driver during this
re-let and a subject for discussion with bidders. Collecting food waste is
dependent on having a processing facility to deliver it to and there are currently
no such facilities with spare capacity within Greater London. This situation will
undoubtedly change during the next few years and the possibility of collecting
food waste will be included in the specification as an option but is unlikely to be
implemented on the contract start date.
4.
Scope Of Services
4.1
A summary of the proposed service levels is detailed in Appendix A. The
‘headline’ proposals for services in the next contract are that:
Waste Collection
 There are to be no changes to the current frequencies of waste collections
for residents and businesses. All residents will continue to receive a
minimum of two waste collections per week;
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

The large ‘OMB’ Big Black Bins are to be ‘retired’ due to ongoing reliability
problems. All Big Black Bins will be wheeled bins which shall all be emptied
at least three times each day. The number of sites will also be reduced
from 178 to 140 and all sites will be paired with Recycling Bins;
The Special Collection Service will have extended operating hours
(including Sunday collections) that are more convenient for customers. It
will be made easier to pre-book a collection and a wider range of materials
will be collected including small electrical items.
Recycling
 Equality of opportunity - every opportunity to deposit waste will be matched
with a recycling opportunity whether on-street, at home or in the workplace;
 If the Little Venice scheme proves to be successful and if affordable, then a
second weekly doorstep recycling collection will be introduced for all
households;
 Pairing of litter bins and recycling litter bins;
 Street sweepers to separately collect recyclable litter;
 Provision of a limited recycling collection service on Christmas Day;
 Collection of batteries and small electrical items at libraries, one stops and
selected Micro Recycling Centre sites;
 A city-wide garden waste collection service;
 A call-off option for food waste collection services;
 An expansion of commercial waste recycling services.
Street Cleansing
 An increase in the number of litter bins from 1,500 currently to 2000 in total;
 Wherever practical litter bins will be ground-fixed so that they remain where
they are most convenient to the public rather than the person who empties
them;
 Litter Bins will be emptied a minimum of 2 and 6 times daily in Zone 1
(‘residential’) and Zone W (‘commercial’) respectively. The current
requirement for 4 and 8 times respectively is considered excessive and
inefficient;
 Improvements in mechanical and semi-mechanical equipment used;
 A more targeted flushing regime with an emphasis on quality rather than
quantity – as well as routine flushing to clear detritus and superficial staining
there will be a deep-cleaning capacity for heavy staining, and the
microbiological treatment of fouling sites will be mechanised;
 The Janitor Services for Chinatown and Leicester Square are to be
combined in recognition of the street cleansing activities now being provided
by third parties;
 Services to remove dead animals and on-street hazardous waste to be
enhanced.
 The Olympics and other exceptional events will be priced separately with
resources being called off as required;
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4.2
4.2.1
Big Black Bins
The large OMB Big Black Bins (2400 and 3200 litres capacity) were introduced
in 2004 on the basis that they provided more capacity than standard (&
previously used) 1280 litre wheeled bins and could be emptied less frequently
(once or twice per day compared to three times daily for wheeled bin sites). It
has been found however that the extra capacity is under-utilised and ongoing
vehicle reliability problems have caused significant service problems. OMB’s
will therefore be phased out and only wheeled bin sites will be used in the new
contract.
4.2.2
At the same time it is proposed to reduce the total number of Big Black Bins
from 178 to 140 with all sites also being paired with Recycling Bins. The reason
for the reduction in numbers is to re-establish the service for its core purpose
i.e. providing disposal facilities in areas with large numbers of converted flats
and short-stay accommodation. During the current contract there has been a
creeping trend to install Big Black Bins as a first response in areas with
dumping problems rather than the more difficult approach of identifying
miscreants and undertaking education and/or enforcement action. This trend
will be reversed.
4.3
4.3.1
Recycling and Re-Use Services
In response to the targets established by the Waste Framework Directive and
the Climate Change Act, the City Council has set itself a number of very
challenging recycling and carbon targets during the period of the next contract.
Levels of household waste, which includes street cleansing waste, that have to
be reused and recycled will need to increase from the current rate of 23% to
above 40% in the life of the next contract. As is clear from the consultation,
residents want to reuse and recycle more materials more frequently.
4.3.2
Minimum standards of service will be specified for the ‘basic’ range of recycling
services to be provided (numbers of households to be served, numbers of bins
on streets etc.). Reducing, re-using and recycling or composting more waste
will however be an increasing area of focus and growth throughout the next
contract period and it is therefore proposed to discuss this area with bidders to
see how benefits can be maximised.
4.3.3
It is recognised however that this contract is only one element in the delivery of
recycling services. How we effectively communicate with residents and
businesses will remain the responsibility of the City Council. Increasing the
range of materials collected for recycling will be determined largely by our
waste disposal contracts. Re-using electrical items, furniture and other ‘niche’
waste materials may be better delivered through local community groups rather
than this contract.
4.3.4
While the bulk of communications activity will be undertaken by the City
Council, the specification will also expand the role of collection crews as
service ambassadors taking a more proactive role than previously in reporting
service problems, monitoring specific services including contamination
reporting, participation monitoring, container use levels, checking bag stock
levels to inform delivery schedules, and delivering literature to properties that
fail to engage in services.
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4.4
4.4.1
Street Cleansing
Regarding the issues highlighted during consultation, split waste bags spilling
their contents is primarily an enforcement issue and won’t be pursued as part of
this contract re-let process outside of specifying rapid response times to clear
such spillage as soon as it is identified or reported. Tackling smoking and fast
food related litter is again partly an enforcement issue but the provision of more
litter bins with ‘stubber’ plates to encourage smokers to do the right thing will be
included in the specification.
4.4.2
Litter Bins - As noted above significant changes to the litter bin service will be
the main area of change in the street cleansing services. A decision has not
yet been taken on whether a new design of litter bin is needed or whether
modifications to the existing design can be made to improve their appearance
and more effectively encourage smokers to responsibly dispose of their
cigarette butts. Such decisions will not however effect the base specification
which bidders will use to prepare their quotations.
4.4.3
Greater attention will also be paid to the cleaning and maintenance regime for
litter bins e.g. ensure that clean bins are taken out on a vehicle and swapped
with the ones on-street to prevent problems currently experienced with
reinstatement (e.g. bins being put in the wrong location, the wrong type of bins
being put out, and bins not being returned to locations at all).
4.4.4
Flushing - will also be increased from current levels. Vehicles will be fitted with
GPS tracking systems so managers will know whether, when, and where the
vehicles are being deployed. The Client (and BIDs, who during stakeholder
consultation have all emphasised interest in validating the baseline
agreements) will know what proportion of the service is actually being
delivered. Vehicle capacity will continue to be available for ‘Civic Watch’ and
similar initiatives, and within a 2 hour Response Time for ad hoc requests.
‘Spotting’ will cease in favour of periodic deep-cleaning of larger areas and the
use of a denaturing cleaning agent.
5.
Financial Implications
5.1
The annual contract price was inflated by RPI(X) (@ 5.316%) on the recent
contract anniversary; 15th September. This inflator alongside additional
recycling services added during the current financial year brings the current
contract price to £37.8m.
5.2
The existing Business Plan for the Environment and Leisure Department
includes a total saving of £838K relating to Waste Collection and Street
Cleansing services by 2011/12 (agreed figures also inflated by 5.316%). A
cash limit on spending increases of 2% is also proposed from 2011/12. The
annual budget for the new contract will therefore be approximately £37.0m.
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Environment & Leisure Business Plan
2009/10
2010/11
2011/12
Total
Business Plan
-
(£668K)
(£170K)
(£838K)
Proposal
-
-
-
-
Difference
-
-
-
-
5.3
Bidders will be made aware of the council’s budget but will also be made aware
that they are competing on price as well as quality and risk. The evaluation
model to be included in the tender documentation will clearly show the relative
weightings given to quality, price and risk.
5.4
Northern Strategic Depot - To stimulate competition it has been agreed to
purchase, should it be necessary, a Northern Strategic ‘vehicle park’ depot to
the north west of the City. A sum of £6million has been included in the 2009/10
Capital Programme for the purchase and development of a site.
6.
Legal Implications
6.1
There are no legal implications arising directly from this report. The re-letting
exercise will be subject to EU Public Sector Procurement Rules. External legal
advisers (Sharpe Pritchard) have been appointed to support and advise officers
and members throughout the procurement process.
7.
Staffing Implications
7.1
A major area of growth in the new contract will be the continuing expansion of
recycling services. To support this growth a One City bid (£117K) has been
prepared to expand the current recycling team of 4 FTE’s by a further 3 FTE
positions from 2009/10. These new positions will be focused on promoting
behavioural change at a neighbourhood level. There are no other specific
implications for council staff arising from this contract re-let.
7.2
Tenderers will be required to form their own view as to whether they consider
the Transfer of Undertakings (Protection of Employment) Regulations 1981 to
apply or not and to indicate the basis upon which their bid is submitted.
8.
Business Plan Implications
8.1
The proposed draft specification and changes to the existing services are in line
with the Environment & Leisure Departments Business Plan aims to maintain
Westminster’s position as one of the cleanest European Cities, to maximise
wherever possible the levels of waste reduction, reuse, and recycling while
reducing the carbon emissions of the service.
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9.
Ward Member Consultation
9.1
All Members have been consulted on the proposed re-let. Their comments
principally covered requests to increase the range and scale of household and
commercial recycling services.
10.
Health and Safety Issues
10.1
The services delivered are inherently dangerous as they involve significant
amounts of manual handling, large vehicles stopping frequently in congested
areas, lone working, exposure to potentially hazardous waste materials and
outdoor working in all weather conditions and at all times of day and night. As
with the current contract, comprehensive risk management systems and
procedures will be designed into the specification, evaluation process, and
contract management culture.
11.
Risk Management Implications
11.1
The Re-let Project Team is working closely with the Council’s Risk and
Governance Manager to identify, analyse and mitigate key risks associated with
the re-let process. A further set of risks associated with the operation of the
contract (and the council’s initial opinion on which party is best equipped to own
and manage each risk) have also been identified for inclusion within the tender
documentation for review by bidders.
12.
Reason for Decision
12.1
The City Council’s is required to tender this contract in accordance with EU
Public Sector Procurement Rules.
If you have any queries about this report or wish to inspect one of the
background papers please contact Mark Banks on 020 7641 3369 or email
mbanks@westminster.gov.uk.
Background Papers
Built Environment Policy & Scrutiny Committee – Waste Contract Re-let reports of 3rd
September and 1st December 2008.
Waste Collection, Recycling and Street Cleansing Services Contract Re-let Task Group
of 19 January 2009
Public Consultation Outcome
WRAP ‘Critical Friend’ Summary Report
Appendices
A. Draft Service Levels
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For completion by Cabinet Member for Environment & Transport
Declaration of Interest

I have no interest to declare in respect of this report
Signed ……………………………. Date ………………………………
NAME: Councillor Danny Chalkley – Cabinet Member for Environment & Transport

I have to declare an interest
State nature of interest ……..……………………………………………
………………………………………………………………………………..
Signed ……………………………. Date …………………………………
NAME: Councillor Danny Chalkley – Cabinet Member for Environment & Transport
(N.B: If you have an interest you should seek advice as to whether it is appropriate to
make a decision in relation to this matter.)
For the reasons set out above, I agree the recommendation in the report entitled
‘Waste Collection, Recycling and Street Cleansing Services Contract Re-Let –
Approval of Service Levels’.
Signed ………………………………………………
Cabinet Member for Environment & Transport
Date …………………………………………………
If you have any additional comment which you would want actioned in connection with
your decision you should discuss this with the report author and then set out your
comment below before the report and this pro-forma is returned to the Secretariat for
processing.
Additional comment: …………………………………………………………………
………………………………………………………………………………………….
………………………………………………………………………………………….
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NOTE: If you do not wish to approve the recommendations, or wish to make an
alternative decision, it is important that you consult the report author, the Head of Legal
Services, the Director of Finance and, if there are staffing implications, the Director of
Human Resources (or their representatives) so that (1) you can be made aware of any
further relevant considerations that you should take into account before making the
decision and (2) your reasons for the decision can be properly identified and recorded,
as required by law.
Note to Cabinet Member: Your decision will now be published and copied to the
Members of the relevant Policy & Scrutiny Committee. If the decision falls within
the criteria for call-in, it will not be implemented until five working days have
elapsed for any call-in request to be received.
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