Archived decisions
Hampshire County Council Cabinet 30 October 2006 Household Waste Recycling Centre Business Case - Contract Procurement Report of the Director of Environment |
Item 8 |
Contact: Clare Saunders, ext 5835 email: [email protected]
1. Summary
1.1 The household waste recycling centre (HWRC) network is a key frontline service provided by Hampshire County Council, accounting for over 40% of Project Integra recycling performance.
1.2 Effective operation of the HWRCs is being compromised by the illegal deposit of trade waste. There is also a need for a clear and comprehensive waste acceptance policy for managing waste deliveries into HWRCs. This will reduce confusion on-site between the public and the site operators, which acts as a disincentive to recycling.
1.3 Deposit of trade waste at HWRCs is not permitted under their Environment Agency site licences. It is estimated that by 2008 such activity will cost the County Council over £1,000,000 per year in disposal costs and landfill tax. The proposed trade waste controls are:
(i) a Household Recycling Permit Scheme;
(ii) Automatic Number Plate Recognition;
(iii) closed circuit television (CCTV);
(iv) provision of height barriers as an interim measure; and
(v) a detailed waste acceptance policy.
1.4 The detail of trade waste controls outlined in this paper was initially considered by the Environment and Transportation Committee before being approved by the Executive Member for Environment on 10 October 2006, subject to Cabinet now approving the principle of introducing trade waste controls and a waste acceptance policy.
1.5 The Director of Environment will conclude all other elements of the contract specification in consultation with the Executive Member for Environment. This contract retender exercise will aim to achieve the optimum balance between service to the public, achieving the best possible recycling levels, and cost.
1.6 Consultation and ongoing communication with the district and unitary councils within Hampshire is planned over the coming months. The proposed changes to operations and the phased introduction of the trade waste controls will be fully discussed and an implementation programme will be agreed with each authority.
2. Background
2.1 On 10 October 2006 the Executive Member for Environment, subject to Cabinet agreeing the principle of introducing trade waste controls:
(i) approved the elements of new trade waste controls, including a Household Recycling Permit Scheme, Automatic Number Plate Recognition, CCTV and height barriers, at the 24 HWRCs in Hampshire, together with support for improving and enhancing trade waste alternatives;
(ii) approved a proposed enhancement to service quality in the specification for the new household waste recycling centre contracts to operate from 2008; and
(iii) authorised the Director of Environment to conclude all other elements of the contract specification, the communications strategy and programme, and the phased introduction of the restrictive trade controls, in consultation with the Executive Member for Environment.
2.2 In furtherance of the above, Cabinet is now asked to approve the principle of introducing trade waste controls, including a waste acceptance policy, at all HWRCs in a phased approach from April 2007.
3. Introduction
3.1 The 24 HWRCs are a key direct public service provided by the County Council, receiving over four and a half million visitors per annum. They currently achieve a recycling/re-use rate of 60% and account for over 40% of the Project Integra recycling performance.
3.2 The HWRCs are managed under five separate contracts that will expire on 31 December 2007. The retendering of the contracts provides the opportunity to improve the operation, particularly with regard to cost efficiency and customer service levels. A review has identified trade waste and waste acceptance policies as key issues.
4. Trade Waste and Waste Acceptance at HWRCs
4.1 The County Council's HWRCs are currently accepting large quantities of trade waste. In 2008, when the new contracts commence, it is estimated that trade waste will cost the County Council in excess of £1 million per year in disposal costs and landfill tax. With waste growth, plus the landfill tax escalator, this will rise substantially over the years.
4.2 Deposit of trade waste is not permitted at HWRCs by their Environment Agency site licences. Trade abuse also impacts negatively on the general running of the HWRCs as extra tonnages are being managed and staff are put under increased pressure by trade users. This results in a reduced service to householders and the general atmosphere on-site is less likely to encourage segregation and recycling activity. Trade waste control will not only reduce cost exposure across the network, but will also reduce demand and in turn greatly assist with improving customer service provision.
4.3 It is perceived that fly-tipping can significantly increase as a result of introducing effective trade waste controls at HWRCs. However, the evidence from other authorities suggests that although a small increase in fly-tipping levels may be experienced, the levels are minor and need to be set against a general increase in fly-tipping anyway. In addition, adequate provision and communication of viable alternatives for traders will be a major factor in minimising fly-tipping (see sections 5.4 to 5.6 of this report).
4.4 Hampshire is surrounded by authorities which, either historically or as the result of recent changes, actively work to reduce trade waste levels. Introducing effective trade waste controls will bring Hampshire into line with practice in adjacent counties.
4.5 Household waste is defined in law according to its source rather than its content, and acceptable quantities of waste are not clearly specified. This makes it difficult to:
(i) control trade waste input, as its trade source is not obvious once it arrives at an HWRC; and
(ii) ensure that only reasonable quantities of specific waste types are accepted.
4.6 The lack of a coherent waste acceptance policy causes confusion and tension between site staff and the public; can lead to the possibility of increased customer complaints; can reduce the public's desire to segregate and recycle; and does divert site staff away from recycling activities. A new waste acceptance policy will help to address these issues.
4.7 In view of the impact of the proposals, the policy change is referred to the Cabinet for approval.
5. Proposed Programme
5.1 The introduction of effective trade waste controls can only be delivered by appropriate and effective methods. Subject to Cabinet's decision in principle to adopt a robust trade waste acceptance policy, the Executive Member for Environment expects to procure the following methods for Hampshire:
(i) Household Recycling Permit Scheme - involves banning commercial vehicles as these are the type of vehicles mainly used by traders, and offers exemption permits for Hampshire householders who only have a commercial vehicle;
(ii) Automatic Number Plate Recognition - identifies frequent site users and provides irrefutable evidence and traceability of their use in a way that no other system can;
(iii) Follow-up process and eventual prosecution of offenders;
(iv) CCTV - as a back-up to investment in Automatic Number Plate Recognition and to improve site security and monitoring; and
(v) Height Barriers - an immediate restrictive measure which will be phased in from April 2007.
5.2 The start-up costs of implementing this package of trade waste controls are estimated to be just under £1 million. The annual running costs are estimated at around £140,000. Taking trade waste volumes to be 17.5% of site inputs (following independent site surveys), and on the prudent assumption that trade controls will only be able to remove 75% of trade waste volumes, the year-on-year cost avoidance is just over £840,000. This represents an investment payback period of less than two years.
5.3 It is proposed to create a formal HWRC waste acceptance policy aimed at clarifying to all stakeholders what wastes are acceptable and in what quantities. This will then facilitate the effective management of waste deliveries into HWRCs. The policy will be founded on reasonable interpretation of legislation, be based on industry best practice and clearly define what will and will not be accepted, particularly in the case of construction and demolition waste (where the lines between household and trade can be particularly blurred). It will also contain clear statements and working guidance on how policies will be introduced and enforced.
5.4 The waste acceptance policy will be used by the County Council and its contractors, both on- and off-site. It will be subject to change and update as required by internal policy, legislative and industry requirements and will be used as the basis for all HWRC public communications.
5.5 Facilitating the appropriate provision and communication of trade waste disposal alternatives will be at the heart of the new contracts. Close working with the Environment Agency will allow a definitive list of the wide range of services offered by licensed trade waste facilities to be produced. Leaflets with this information will be distributed and will also be available online. The leaflets, which will be produced well in advance of the changes, will clearly explain why trade waste cannot be accepted at HWRCs and what can happen if traders do attempt to make deposits.
5.6 In addition, the County Council will continue to work in partnership with the private sector to facilitate the construction of new sites capable of handling trade waste. The Minerals and Waste Development Framework will assist the private sector to bring forward appropriate development projects.
6. Next Steps
6.1 Consultation and clear communication with the district and unitary authorities within Hampshire will be vital. The possible impacts will be analysed, both individually and collectively, via the Project Integra network. Feedback will be used to ensure that all local issues are covered by the contract retender exercise, and in the development of agreed implementation plans for each area.
6.2 It is proposed to implement the trade waste controls and waste acceptance policy in a phased way, commencing in April 2007. A plan for implementation will be produced in the next two months. This plan will be subject to further consultation with the Executive Member for Environment, as well as with the district and unitary authorities and other stakeholders.
6.3 The Executive Member for Environment has authorised the Director of Environment to conclude all other elements of the specification for the new HWRC management contracts, in consultation with him. The contract specification will be finalised in March 2007 in time for the operation to be tendered. Contracts will be awarded by the end of August 2007 leaving sufficient time for handover, Environment Agency Licensing, etc prior to the commencement of the new contracts in January 2008.
7. Conclusions
7.1 Introducing effective trade waste controls supported by a detailed waste acceptance policy will not only reduce cost exposure across the network, but also reduce demand, and in turn greatly assist with improving customer service provision. Effective trade waste control can only be delivered by appropriate and effective methods. The proposed trade waste controls recommended by the Executive Member for Environment are:
(i) a Household Recycling Permit Scheme;
(ii) Automatic Number Plate Recognition;
(iii) CCTV;
(iv) provision of height barriers as an interim measure; and
(v) a detailed waste acceptance policy.
7.2 It is proposed to implement these measures in a phased way, commencing in April 2007. The costs of implementing this package of trade waste controls will be recouped in less than two years from avoided disposal and landfill tax costs.
7.3 Proactive measures will be taken to minimise any impacts on fly-tipping, through an extensive communication programme which will continue to publicise the range of trade waste alternatives.
7.4 The proposals set out in this report complement the retender exercise for the HWRC management contracts, which will aim to achieve the optimum balance between service to the public, achieving the best possible recycling levels, and cost.
8. Impact Assessments
8.1 Assessment of the Race Relations (Amendment) Act has been considered in this review but no adverse impact has been identified.
Recommendation
That Cabinet approves the principle of introducing trade waste controls, including a detailed waste acceptance policy, at all household waste recycling centres in a phased approach from April 2007.
This proposal does not link to the Corporate Strategy but, nevertheless, requires a decision because it will improve service levels to households, reduce waste inputs and costs, and will have a positive impact on Best Value Performance Indicators, eg increased customer satisfaction, reduced unit costs and higher recycling levels. |
Section 100 D - Local Government Act 1972 - background papers | |
The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report. | |
NB the list excludes: | |
1. |
Published works. |
2. |
Documents which disclose exempt or confidential information as defined in the Act. |
TITLE |
LOCATION |
Working File |
Environment Department Room 216 |
1077Rpt/CS