Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report

1. Executive Summary

1.1. The purpose of this paper is to seek approval for the transfer of the three "Recycling Contract 6" household waste recycling centres (HWRCs) - Farnborough, Southampton and Portsmouth - from the Waste Disposal Contract to the HWRC Contract.

1.2. This paper sets out:

(i) background to the transfer;

(ii) expected annual cost savings of around £120,000 per annum, to be split between the County Council and the two Unitary Authorities, and the costings of the transfer; 80% of the savings will be retained by the County Council;

(iii) anticipated performance benefits; and

(iv) progress on transfer preparation.

2. Contextual information

2.1. On 24 September 2007 a confidential report to the Director of Environment was submitted by Waste and Resource Management (W&RM). This report detailed the outcomes of the contract retender for the management and operation of the HWRCs and gave a recommendation to award the contract to Hopkins Recycling. This recommendation was accepted and the contract was awarded to Hopkins Recycling Limited with a commencement date of 1 January 2008.

2.2. Three of the 26 HWRCs in Hampshire, however, are part of the Waste Disposal Contract managed by Veolia and could not be transferred to Hopkins at that time.

2.3. The three HWRCs, referred to as "Recycling Contract 6", are as follows:

· Farnborough HWRC (Hampshire County Council)

· Southampton HWRC (Southampton City Council)

· Paulsgrove HWRC (Portsmouth City Council).

2.4. The management and operation of the "Recycling Contract 6" HWRCs was tendered in 2007 as priced options in the new HWRC contracts. This was on the basis that the tender for these sites could be accepted if the County Council and the two Unitary Authorities deemed that this would be beneficial to all parties.

3. Finance

3.1. The transfer of these sites is expected to result in overall savings of around £120,000 per annum. These arise from reduced management fees, an estimate of annual revenue from the sale of scrap ferrous metal and savings from the introduction of a new and improved soil and rubble service.

3.2. There are a number of one-off costs involved, the majority of which relate to the transfer of Farnborough HWRC. The total costs are expected to be around £14,000 and include Environmental Permit transfers, changes to CCTV systems at Farnborough HWRC, and charges associated with the creation of a sub-lease for Farnborough HWRC.

3.3. The one-off costs and the annual savings will be split between the County Council and the two Unitary Authorities. The County Council's proportion will be around 80%.

4. Performance

4.1. The transfer of "Recycling Contract 6" to the HWRC Contract managed by Hopkins Recycling also offers performance benefits and is expected to:

(i) facilitate the provision of a consistent and standardised service across all 26 HWRCs in Hampshire, with high levels of customer service as delivered by Hopkins Recycling, under the new HWRC Contract, for the other 23 HWRCs;

(ii) strengthen site support to the ongoing delivery of trade waste controls, and the Waste Acceptance Policy;

(iii) give rise to client management time savings as a result of managing only one, high quality HWRC contractor; and

(iv) based on the strong performance of Hopkins Recycling, it is likely to lead to higher recycling rates with consequent cost avoidance in disposal costs and landfill tax.

5. Progress with Transfer Preparation - August 2009

5.1. Legal Practice has advised that, if approved, the three HWRCs can be removed from the Waste Disposal Contract. After consultation with Veolia and the two Unitary Authorities, it has been agreed that the three HWRCs should be transferred together on a mutually convenient date. The date is subject to the completion of associated permitting and sub-lease matters being in place for this date, however it is anticipated that the transfer could take place by the end of 2009.

5.2. The transfer of Southampton and Paulsgrove HWRCs is anticipated to be straightforward. However, due to the integrated nature of the Farnborough Transfer Station and HWRC, an operating agreement will be required between the County Council, Veolia and Hopkins. An agreement has been drafted and is close to being finalised.

5.3. Rushmoor Borough Council has agreed to the principle of a sub-letting of the Farnborough HWRC area by Veolia to the County Council. The Director of Property Business and Regulatory Services (Head of Estates) sought agreement for the sub-lease from the Executive Member for Policy and Resources via the Schedule of Routine Items which was approved at the Decision Day on 9 September 2009.

6. Recommendation

6.1. That the transfer of the three "Recycling Contract 6" household waste recycling centres from the Waste Disposal Contract to the Household Waste Recycling Centre Contract be approved.

2159Rpt/958/MD

CORPORATE OR LEGAL INFORMATION:

Links to the Corporate Strategy

IMPACT ASSESSMENTS:

1. Equalities Impact Assessment:

1.1. No impact anticipated.

2. Impact on Crime and Disorder:

2.1. No impact anticipated.

3. Climate Change:

a) How does what is being proposed impact on our carbon footprint / energy consumption?

This transfer relates to a change of management contractor rather than a change in operations, therefore little impact is anticipated except for an increase in recycling which would slightly reduce carbon footprint and energy consumption.

b) How does what is being proposed consider the need to adapt to climate change, and be resilient to its longer term impacts?

As above, this transfer relates to a change of management contractor rather than a change in operations, therefore adaptation to climate change could not be considered at this time.