Agenda item

To consider the Corporate Director’s Report No. CD1503 (copy attached), on the future provision of waste and recycling collections, street cleansing, grounds maintenance and the cleaning of public conveniences.

            The Cabinet considered the Corporate Director’s Report No. CD1507, which set out the next stages of the procurement process and sought approval of various matters.

The Cabinet was reminded that the Council’s current environmental services contract with Veolia ES (UK) Limited was ending in March 2017 and that the Future Contracts Member Working Group had been set up to make recommendations on how to deliver services after this date. It was reported that the Group had met eight times and had explored a number of areas relating to the delivery of services, including:

·                     The Council’s financial position

·                     Recycling performance

·                     Innovation in contract letting

·                     Other models of service delivery including joint venture

·                     Views of Rushmoor residents

·                     Social Value

·                     Service specifications

The Group had agreed three objectives of the procurement process:

·                     Reduce costs in line with the Council’s 8-Point Plan

·                     Maintain or improve service quality

·                     Improve recycling performance

It was explained that a timetable had been established and this would lead to a final contract award taking place by September 2016. In order to meet this deadline, it was necessary for the procurement to progress in line with the outline timetable set out in Appendix 1 of the Report. The Group had considered whether the services should be let in an integrated contract or split into separate lots and had recommended that the most suitable procurement method would be to split the services into smaller lots comprising waste collection and street cleansing as lot one, grounds maintenance and toilet cleaning as lot two, with the third lot being a combination of the two.

It was explained that the current service specifications for grounds maintenance would remain largely unchanged but, taking on board feedback from soft market testing, would include the use of newer technology and incorporate a place based approach to parks management.  The proposed street cleansing specifications had been altered to place more onus on the contractor to keep the Borough clean rather than to keep to a specific schedule.  Regarding the specifications for the waste and recycling contract, the Working Group had considered ways to improve recycling performance and had concluded that, whilst some measures could lead to a modest improvement in the recycling rate, the most significant improvement would be brought about by the restriction in the volume of residual waste collection by either the provision of smaller refuse bins or a switch to alternate weekly collections.  It was reported that, of these options, only a switch to alternate weekly collections would provide a financial saving to the Council.  The Cabinet decided that this particular issue would require further consideration and it was, therefore, agreed to defer this element of the overall decision, so that it might be fully debated at an additional meeting of the Cabinet, which would be set up for Tuesday 14th July, 2015 at 4.30 p.m..

During discussion, Members discussed the concept of Competitive Dialogue and the circumstances under which this process would be considered to be appropriate, when procuring services.

The Cabinet RESOLVED that

(i)           the contract procurement structure for the procurement to be carried out in three lots, as set out in paragraph 5.4 of the Corporate Director’s Report No. CD1507, be approved;

(ii)          the contract conditions, as set out in the Report, be approved;

(iii)         the approach to the specifications for grounds maintenance and street cleansing for stage one of the procurement process, with authority to finalise these documents for use in the process being delegated to the Corporate Director, in consultation with the Cabinet Member for Environment and Service Delivery, be approved;

(iv)         consideration of the options for the future specifications for refuse and recycling be deferred to an additional meeting of the Cabinet, to be arranged for Tuesday 14th July, 2015;

(v)          authority to agree documentation describing the requirements and to make amendments as necessary to ensure that the Council’s needs and requirements were clearly described at the commencement of the procurement be delegated to the Corporate Director, in consultation with the Cabinet Member for Environment and Service Delivery; and

(vi)         authority to advertise the opportunity, select bidders to be invited to participate in the dialogue process, in accordance with the selection evaluation model, and, generally, to do everything necessary, through the multi-stage dialogue and submission of solutions process (including making amendments to the draft specifications and draft conditions of the contract as may be required to better reflect the Council’s requirements and / or may be commercially appropriate), to identify solutions that best meet the requirements of the Council, such that contract(s) could be awarded to the successful bidder(s) be delegated to the Corporate Director, in consultation with the Cabinet Member for Environment and Service Delivery.