The Corporate Director Communities presented a report providing an update on the future direction of the recycling and waste service and seeking Cabinet approval to proceed to tender, for an interim contract for the recycling and waste collection / community recycling centre management contract, for up to a two year duration. Approval was also required to delegate authority to the Corporate Director of Communities to negotiate and finalise acquisition fees for the existing vehicles, plant and equipment utilised in the provision of the current service with Kier Services Limited and to delegate authority to the Corporate Director of Communities to negotiate terms with Kier to change fuel supply for the existing fleet of recycling and waste vehicles and plant to a hydrogenated vegetable oil (HVO) derived fuel, in the period up to the end of the contract in 2024. The Corporate Director Communities was seeking approval to commence work on the future service provision post 2026, including looking at decarbonisation of the waste fleet and additional material streams for

recycling with the aim of being the best performing waste & recycling Local

Authority in Wales.

The Corporate Director Communities outlined the background to the recycling and waste contract which was awarded to Kier Services Limited in April 2017, due to end on 31st March 2024.  The current recycling & waste service overall performed very well. BCBC were well ahead of the recycling target with a low missed collection rate and a good rate of customer satisfaction. There was a great deal of uncertainty with regards to the methodology and targets for the future recycling and waste service model and it was difficult to see what a future contract should look like. For these reasons Cabinet was strongly recommended to make a decision to put a short-term interim contract into place, of no more than two years, to cover the period from 2024 to 2026. This would allow time for key decisions to be made re collection methodology and time to look at the fleet they wanted to bring forward.

The Corporate Director Communities explained that no public consultation was required at this stage as the contract would provide virtually the same contract as the current one. BCBC had the right to acquire plant and equipment from Kier as this was built into the original contract. They would negotiate to acquire these assets and this would be subject to a further report. Also an interim step was being explored and discussed between

Kier and Council officers, namely the introduction of Hydrogenised Vegetable Oil (HVO) derived fuel vehicles. Kier had undertaken investigations and confirmed that the existing fleet was able to be run using this fuel type.

The Cabinet member for Communities explained that a lot of work had taken place to get to this position. Measures needed to be put in place for the short term and long term and all options remained on the table at this stage. He added that the success of the scheme was primarily down to the residents of Bridgend.

The Leader referred to the success of sorting at the kerbside which had resulted in a recycling rate of over 72% this year, well above the statutory target. Other authorities were looking to change their methodology because they were struggling to meet the targets. He added that the introduction of Hydrogenised Vegetable Oil (HVO) derived fuel vehicles would not only help reduce our carbon footprint by 93% but would also improve overall air quality in communities across Bridgend.  

The Cabinet Member for Future Generationsmirrored the comments made and supported the aim to be the best and to be as sustainable as possible. He asked if the fuel could be sourced with a view to allowing them to “double down” on the resource to make it as green as possible eg recycled vegetable oil.

The Cabinet Member for Resources agreed with the comments made and added that the efforts made by residents were appreciated. Kier would not be in this business in future so this was necessary to bridge that gap and to understand the aspirations of WG.

The Leader added that there would be engagement with all members via the scrutiny process.

RESOLVED:       Cabinet: -

1.    Authorised officers to proceed to seek invitation of tenders for the provisions of the short duration waste contract from 2024 to 2026.

2.    Delegated authority to the Corporate Director of Communities in conjunction with the Section 151 Officer and Chief Officer Legal and Regulatory Services, Human Resources and Corporate Policy to negotiate with Kier and agree the final cost for the acquisition of the vehicles and plant and equipment from Kier required to perform the recycling and waste service.

3.    Delegate authority to the Corporate Director of Communities in conjunction with the Section 151 Officer and Chief Officer Legal and Regulatory Services, Human Resources and Corporate Policy to negotiate terms with Kier to change fuel supply

for the existing fleet of recycling and waste vehicles and plant to a HVO - hydrogenated vegetable oil derived fuel.

4.    Noted that future financial implications would be reported back to Cabinet and Council in due course.

Authorised officers to commence work on the future waste service model, commission specialist advice if required and report back to Cabinet on the new service model as developed.