Agenda item
Waste & Recycling - Future Service Modelling
Purpose
To update Members on the risks associated with the current waste depot site provisions and in order to review the business case for a single waste depot, to recommend service design and cost evaluation work is brought forward to enable a more informed decision on site acquisition.
Recommendation
It is recommended that Cabinet:
a) Note the risks set out in this report and endorse undertaking service design and cost evaluation work before a decision is taken on depot site acquisition;
b) Allocate revenue funding of up to £30,000 to appoint a specialist consultant, to undertake an evaluation of waste service options and a cost appraisal of each option, and provide an expert opinion on likely cost of each service from Ubico and the open market, together with the likely costs to acquire and develop land for mobilisation of an operational waste depot;
c) Allocate revenue funding of £1,000 to support a waste redesign consultation (if required);
d) Delegate the decision to award a contract for this consultancy work, following a procurement process, to the Head of Paid Service in consultation with the Cabinet Member for Environment.
Minutes:
Members received a report from the Business Manager – Contracts which updated them on the risks associated with the current waste depot site provisions and, in order to review the business case for a single waste depot, recommended that service design and cost evaluation work was brought forward to enable a more informed decision on site acquisition.
The report outlined the existing situation relating to the waste collection contract with Ubico which currently operated from two main depots in Witney. There were also two smaller sites at Greystones in Chipping Norton and Hensington Road Woodstock, which were used mainly for storage. The Council had identified that acquiring a single depot to house all of the operations and storage may provide operational efficiencies and opportunities to enhance services and generate financial savings. Further history relating to past discussions and work on this proposal were outlined in paragraph 1.5.
Members noted that the current contract with Ubico was due to end in 2024, coinciding with the majority of vehicles being seven years old and it was agreed that a service redesign was due. A redesign would also be an opportunity to consider future collection service design, fleet procurement choices (bearing in mind the climate emergency) as well as the size, cost and location of depot needed.
The report therefore recommended that an external specialist consultant be brought in to support the Council, at a cost of £31,000 to be allocated from the general reserves.
The alternative options available to Members were to purchase a depot now, accepting the financial risks associated with it; conduct a service options appraisal closer to 2024 when there would be a greater degree of assurance on price, however, acknowledging that there would likely then be not a necessary time available to purchase and mobilise a new depot; or continue with the current arrangement.
The Cabinet Member for Environment, Councillor MacRae introduced the report and reiterated the advantages of engaging a specialist to undertake the work. He reminded Members of the need to consider future waste options in light of the contract renewal in 2024. Councillor MacRae stated how the Council already delivered an excellent service to residents, with collection rates in excess of 99%, however, it was vital to consider the needs of an expanding population and future government plans.
Finally, Councillor MacRae assured the meeting that the external specialist would look at all available and potential options to shape the waste collection service before moving to the next contract in 2024. He therefore proposed the recommendations as laid out.
This was seconded by Councillor Harvey who advised that he had been involved in this process in previous years and it was the best way to ensure that the Council continued to deliver an excellent service for the people of West Oxfordshire.
Councillor Graham asked a question on behalf of Councillor Dan Levy who was unable to attend and who was keen that any review would look at efficiencies to be made working with other Councils, including those that co-owned Ubico.
Councillor MacRae reiterated his previous comments, advising that at this stage nothing would be ruled in or ruled out and the review would be all encompassing.
Having considered the report and having heard from those present, Cabinet
Resolved that
a) the risks set out in this report are noted and service design and cost evaluation work is undertaken before a decision is taken on depot site acquisition;
b) revenue funding of up to £30,000 is allocated to appoint a specialist consultant, to undertake an evaluation of waste service options and a cost appraisal of each option, and provide an expert opinion on likely cost of each service from Ubico and the open market, together with the likely costs to acquire and develop land for mobilisation of an operational waste depot;
c) revenue funding of £1,000 is allocated to support a waste redesign consultation (if required); and
d) the decision to award a contract for this consultancy work, following a procurement process, is delegated to the Head of Paid Service in consultation with the Cabinet Member for Environment.
Supporting documents:
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