Archived decisions
EXECUTIVE MEMBER FOR ENVIRONMENT
PART II
TRANSFER OF REMAINING HOUSEHOLD WASTE RECYCLING CENTRES TO THE MAIN HOUSEHOLD WASTE RECYCLING CENTRE CONTRACT
1. The Executive Member has approved the transfer of the remaining three household waste recycling centres (HWRCs) - Farnborough, Southampton and Portsmouth - from the Waste Disposal Contract to the HWRC Contract.
2. On 24 September 2007 a confidential report was considered by the Director of Environment which 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.
3. Three of the 26 HWRCs in Hampshire, however, were part of the Waste Disposal Contract managed by Veolia and could not be transferred to Hopkins at that time. The three HWRCs were as follows:
· Farnborough HWRC (Hampshire County Council)
· Southampton HWRC (Southampton City Council)
· Paulsgrove HWRC (Portsmouth City Council).
4. The management and operation of these 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.
5. The transfer of these remaining facilities into the main HWRC Contract managed by Hopkins Recycling is expected to facilitate the provision of a consistent and standardised service across all 26 HWRCs in Hampshire and strengthen site support to the ongoing delivery of trade waste controls and the Waste Acceptance Policy. It will also provide client management time savings as a result of having to deal with only one, high quality HWRC contractor. Based on the strong performance of Hopkins Recycling, it is also likely to lead to higher recycling rates with consequent cost avoidance in disposal costs and landfill tax.
6. 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. `One off `costs (primarily relating to the transfer of the Farnborough HWRC and the need for Environmental Permit transfers, changes to CCTV systems and charges associated with the creation of a sub-lease for Farnborough HWRC) are expected to be around £14,000. 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%.
7. 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. Given the integrated nature of the Farnborough Transfer Station and HWRC, an operating agreement, which is close to being finalised, will be required between the County Council, Veolia and Hopkins. The completion of the legal and property related formalities and the subsequent transfer of all three sites is, however, anticipated for completion by the end of 2009.
8. Full details of the decision taken are outlined in the report that may be accessed at /decisions/decisions-docs/091006-execmb-R0929101538
MEL KENDAL
Executive Member for Environment