MANSFIELD DISTRICT COUNCIL
Report of Head of Neighbourhood Services
To
Portfolio Holder for Environment
for a
Delegated Decision
On
1 November 2013
DELIVER A CHARGEABLE GARDEN WASTE COLLECTION SERVICE IN THE
DISTRICT OF NEWARK AND SHERWOOD
1.
SUMMARY
Following the successful pilot of a chargeable garden waste service into Newark &
Sherwood District during 2013/14, this report seeks approval to continue to deliver
this service on a permanent basis subject to the scheme maintaining financial
viability. The advantages of this scheme are improved partnership working,
increased resilience and increased recycling of waste whilst using spare capacity
within the existing garden waste service. The report identifies the risks of continuing
with the scheme and how these risks would be managed.
Key Decision – This is a key decision because the new service could potentially
result in a turnover in excess of £50,000, and has been included in the current list of
key decisions.
2.
RECOMMENDATIONS
To be resolved by the Portfolio Holder for the Environment
(i)
That a chargeable garden waste collection service continues to operate in the
neighbouring Newark and Sherwood District (NSDC) on a permanent basis,
as the scheme does not require any subsidy from Mansfield District Council
(MDC) budgets, whilst not operating for commercial purposes.
(ii)
That the Head of Neighbourhood Services be authorised to terminate the
service at any time in the future if there is insufficient interest in the scheme to
make it viable.
3.
BACKGROUND
3.1
Following the decision by Mansfield District Council to introduce a charge for
their garden waste service there was a significant reduction in residents using
the service. As the service was previously free, the authority had 36,000
residents taking advantage of the scheme and following an introduction of a
charge this reduced to 18,500. The consequence of this was the authority had
MANSFIELD DISTRICT COUNCIL
spare capacity on its collection rounds and potentially 17,500 wheelie bins to
collect in and this would have resulted in a serious storage problem. As a
member of the Nottinghamshire Waste Management Board, discussions
commenced with Newark and Sherwood District Council who at the time did
not have a garden waste collection scheme or the capital to invest in
freighters and wheelie bins. It became apparent that an opportunity for
partnership working existed that would increase Newark and Sherwood’s
recycling performance which would support the countywide target and would
address Mansfield’s spare capacity. Following discussions the decision was
made by Mansfield District Council on 15 February 2013 to introduce a trial
service into the Newark and Sherwood District area for the period of 2013/14
only and that if this trial was successful a report would be submitted to
Mansfield District Council for continuation of the scheme.
3.2
During the trial year Mansfield District Council was able to reduce its
collection rounds resulting in an efficiency saving of £36,000. This saving was
facilitated by the introduction of the Newark and Sherwood service as the
additional work generated through Newark and Sherwood meant no job
losses. The result of the first year trial was that the service broke even on
operational costs whilst enabling a £36,000 efficiency saving for Mansfield.
3.3
The areas covered by the scheme are Clipstone, Edwinstowe, Boughton,
Ollerton, Southwell, Rainworth and Blidworth. It is intended to develop the
scheme into Farnsfield
3.4
As a result of the success of this trial, Newark and Sherwood District Council
are in negotiations with Rushcliffe Borough Council to operate a similar
scheme in the southern part of the district and they intend to commence the
scheme in the Newark area of the district. It has been agreed that all parties
would maintain a consistent charge for all residents of Newark and Sherwood
District Council and this charge is presently £30.
3.5
During consideration of this trial scheme it became apparent that should the
scheme operate on a profitable basis there would be a need for Mansfield
District Council to establish a trading company to undertake this work. The
business case attached to this report clearly identifies that the scheme
presently covers the operating costs and the prediction of increased take up
by residents in Newark and Sherwood will result in the scheme also making a
reasonable contribution to the Council’s fixed support costs. However the
business case (appendix1) demonstrates that even if all 20,000 potential
residents within the operating catchment area were to sign up to the scheme it
would not generate any profit but would make an allowable and significant
contribution to support costs for Mansfield, therefore a trading company does
not require establishing
4.0
CUSTOMER SERVICE
4.1
This trial scheme has also demonstrated that the authority can operate
efficiently without an adverse impact on service delivery by the contact
centre to Mansfield resident’s. An analysis of the calls from Newark and
MANSFIELD DISTRICT COUNCIL
Sherwood District Council customers has demonstrated that only a marginal
increase of calls of 1% - 3% which equates to an additional 8 – 10 calls a day
were generated by the introduction of the service. This is a very small figure
and it is expected that this will further reduce following the implementation of a
number of initiatives identified by a working group set up to address this issue.
5.0
SERVICE LEVEL AGREEMENT
5.1
A Memorandum of Understanding would be agreed between Mansfield and
Newark and Sherwood Districts before any contract was entered into. Within
this agreement would be recognition that Mansfield would cease to deliver the
service if it became a liability (cost or otherwise) to Mansfield Council.
5.8
The Council’s insurance policies indemnify against vehicle, public and
employers liability.
6.0
OPTIONS AVAILABLE
6.1
Option 1
Deliver a garden waste collection service in the Newark & Sherwood District
to the areas of Clipstone, Edwinstowe, Ollerton, Boughton, Rainworth,
Blidworth, Southwell and Farnsfield at the charge of £30 per bin.
This is the preferred option as it will make a financial contribution to
Mansfield’s operational and support costs
6.2
Option 2
Deliver a garden waste collection service in the Newark and Sherwood District
to the areas of Clipstone, Edwinstowe, Ollerton, Boughton, Rainworth,
Blidworth, Southwell and Farnsfield only if a charge higher than £30 per bin
can be agreed with Newark and Sherwood District Council.
This option is not recommended as it would create varying charges with
Newark and Sherwood District and would not be supported by Newark and
Sherwood District Council
6.3
Option 3
Cease the trial service started in 2013/14
This option is not recommended as the authority would lose the opportunity to
generate a financial contribution to its support costs, the contribution to the
County’s recycling levels would be lost and job losses within Mansfield would
be necessary.
MANSFIELD DISTRICT COUNCIL
7.0 .
RISK ASSESSMENT OF RECOMMENDATIONS AND OPTIONS
Risk
Option 1
High demand
High demand
Risk Assessment
Risk
Level
Callers cannot get medium
through to HLD so
decide to try the
contact
centre
number.
A large number of bins medium
need to be delivered
before 1st April.
Risk Management
Staff taking calls at HLD would
be increased using temporary
staff to deal with demand.
Collect unused bins from
Mansfield properties as soon
as report is approved. Procure
additional temporary staff and
hired transport to meet
delivery needs.
High demand Staff numbers and medium Introduce additional rounds
vehicles to collect the
using hired vehicles and
bins are insufficient.
flexible staffing arrangements
to meet demand surge.
Very high
Insufficient bins to medium Continuously monitor demand
demand
meet high demand
to identify trend. Identify new
bin procurement options in
advance to enable immediate
purchase of bins if needed.
Low demand
Potential for operating Medium Reduce number of rounds to
cost to be greater than
reflect reduced demand. Avoid
income
the risk to jobs by using an
agency/temporary/permanent
mix of staff that work in
parallel to existing rounds.
Low and
Inefficient
use
of Medium Minimise
the
risk
by
scattered
resources
publicising
to
existing
demand
collection areas only. Give
delegated authority to cancel
the scheme if it is not viable:
N&S residents would get a full
refund.
Service
N&S see the operation Medium Build flexibility into transport
termination
as a success and wish
hire and staffing contracts.
to take over the
These contracts can become
service in-house
more permanent if the shared
service
arrangement
is
extended.
Option 2 – Operate as option 1 only if NSDC agree to increase in charge
NSDC do not Service stopped
high
Need to arrange for recovery
agree to fee
of bins at a cost to the
increase
authority, then reduce the
number of staff employed by
the equivalent of 1.5 FTE’s.
Option 3 – Cease delivering the service
MANSFIELD DISTRICT COUNCIL
Complaints
from
NSDC
customers
expecting the
service
to
continue
Staff (both contact high
centre and HLD) need
to
deal
with
complaints
Staff time spent dealing with
complaints diverts a resource
from day to day operations to
the short term detriment to the
core service.
8.0.
ALIGNMENT TO COUNCIL PRIORITIES
8.1
The provision of a garden waste collection service to areas outside of the
Councils jurisdiction / area of operation is not a priority for Mansfield District
Council. However, the potential to generate income in the future from outside
the District, through the reuse of surplus brown bins owned by the authority,
which would help contribute to the achievement of the Medium Term Financial
Strategy, is a sufficient reason to pursue the delivery of this service in Newark
& Sherwood.
682
Continuing with the service also contributes to the Council’s corporate priority
to provide a high quality and sustainable environment within Nottinghamshire,
it would contribute to regeneration by maintaining employment to 1.5 FTE’s,
and would continue to demonstrate shared service partnership working with
neighbouring Newark & Sherwood district.
9.0.
IMPLICATIONS
(a)
Relevant Legislation
The Environmental Protection Act 1990 s55 (3)(a) gives a waste collection
authority the power to buy or acquire waste with a view to recycling it.
The Agency Workers Regulation entitles agency workers to similar benefits as
those staff employed by the Council after they have been employed for more
than twelve weeks. Such benefits would include same rates of pay, leave
entitlement, overtime payments. However, this does not include entitlement
to benefits such as sick pay above the statutory requirement, notice or
redundancy payments or contributions to pensions.
Section 3 LA 2011 confers a power to charge and so long as the charges do
not exceed the cost of provision then it is not necessary for the Council to set
up a trading company.
(b)
Human Rights
None affected
(c)
Equality and Diversity
None affected
(d)
Climate change and environmental sustainability
MANSFIELD DISTRICT COUNCIL
Provides the Council with the ability to increase the level of waste recycling
through separating out garden waste from residual waste bins where it
presently goes to landfill.
(e)
Crime and Disorder
Not applicable
(f)
Budget /Resource
The service would operate at a “no cost to the authority” basis, recovering its
variable operation costs with a contribution to its fixed overhead costs.
10.0. COMMENTS OF STATUTORY OFFICERS
(a)
Head of Paid Service – The report identifies that the provision of this service
enables the council to utilise existing capacity within the current work force. If
this service was not provided the council would need to reduce its work force
by 1.5FTE’s as a result of the reduced workload arising from the introduction
of charging for the Garden Waste Service in Mansfield District.
(b)
Deputy Monitoring Officer –
Under Section 45 of the Environmental Protection Act 1990 a local authority
has a duty to collect the household waste including recyclable waste in its
area. Under section 45A of the Environmental Protection Act 1990 a local
authority also has a duty in its area to make provision for the collection of two
types of recyclable waste (including compostable waste).
I am aware that Mansfield District Council collects paper, plastic bottles and
tins in addition to “green waste” and I am informed that Newark and
Sherwood District Council also fulfills this duty with regard to collection of two
types of recyclable waste. The collection of green waste is therefore a
discretionary service as an addition or enhancement to a mandatory service
above the level or standard that an authority has a duty to provide may be a
discretionary service.
In this case I am satisfied that the collection of green waste amounts to a
discretionary service and can be chargeable.
The powers to operate this service in the Newark and Sherwood District
derive from Section 1 of the Localism Act 2011 (LA 2011) which states:
Local authority’s general power of competence
(1)
A local authority has power to do anything that individuals generally
may do.
(2)
Subsection (1) applies to things that an individual may do even though
they are in nature, extent or otherwise—
(a)
or
Unlike anything the authority may do apart from subsection (1),
MANSFIELD DISTRICT COUNCIL
(b)
(3)
(4)
Unlike anything that other public bodies may do.
In this section “individual” means an individual with full capacity.
Where subsection (1) confers power on the authority to do something,
it confers power (subject to sections 2 to 4) to do it in any way
whatever, including—
(a)
Power to do it anywhere in the United Kingdom or elsewhere,
(b)
Power to do it for a commercial purpose or otherwise for
a charge, or without charge, and
(c)
Power to do it for, or otherwise than for, the benefit of the
authority, its area or persons resident or present in its area.
An authority relying on the general power of competence is not obliged to
identify a particular benefit accruing to its area and can operate outside its
area.
The existing restrictions on charging and trading contained in Sections 93 and
95 of the Local Government Act 2003 have been more or less replicated in
Sections 3 and 4 of the LA 2011. Section 3 LA 2011 confers a power to
charge for services if the following conditions are met:
(a)
the service is not one that a statutory provision requires the authority to
provide to the person, (in this report the service proposed is
discretionary)
(b)
the person has agreed to its being provided , (customers will request
the service) and
(c)
ignoring this section and section 93 of the Local Government Act 2003,
the authority does not have power to charge for providing the service.
(there is no other statutory charging regime for green waste).
Importantly if charges are made using the general power of
competence, then (as with charges under s 93 of the LGA 2003), the
charges must not, taking one financial year with another, exceed the
costs of provision in respect of each service. If the authority wished to
undertake the provision of this service for commercial purposes then it
could only trade through a company within the meaning of Section 1(1)
of the Companies Act 2006. I am satisfied that the business plan
demonstrates that the service is not exceeding the cost of provision
and is not generating surpluses and therefore a company is not
required. However, the Council must ensure it continues to keep this
MANSFIELD DISTRICT COUNCIL
under review and adjust the charges or the legal structure for delivering
the service accordingly.
(c)
Deputy Section 151 Officer –
The Business Plan set out in this report shows that the garden waste scheme
will be implemented within Newark and Sherwood at cost neutral to Mansfield
District Council, although there may be some scope for the scheme to
contribute towards the support costs incurred by Mansfield District Council.
If the scheme for Newark and Sherwood can not be implemented cost neutral,
then the Head of Neighbourhood Services will have authority (as per
recommendation (ii) to this report) to cancel the garden waste collection at
Newark and Sherwood so to ensure that scheme is not subsidised by the
residents of Mansfield and district.
11.0
CONSULTATION
a) Continued liaison between Mansfield and N&S councillors to satisfy the
needs of both Districts.
b) Internal departments of sundry debtor, ICT, legal, PR, insurance and
customer services and the Unions.
12.0. BACKGROUND PAPERS
None
Report Author
Designation
Telephone
E-mail
-
K Poyntz
Neighbourhood Services Manager
01623 463283
kpoyntz@mansfield.gov.uk