To inform Cabinet of the proposed appointment of a preferred bidder under the Council’s waste services procurement and subject to satisfactory completion of the legal processes formally enter into a contract with the preferred bidder for the provision of the Council’s Waste Collection and Community Recycling Centre (CRC) Services for a period defined by the contract of seven years from the contract commencement date of the 1^st April 2017.

The Corporate Director Communities reported on an update on the proposed appointment of a preferred bidder under the Council’s waste services procurement and subject to satisfactory completion of the legal processes, formally enter into a contract with the preferred bidder for the provision of the Council’s Waste Collection and Community Recycling Centre Services (CRC), for a period defined by the contract of 7 years from the contract commencement date of 1 April 2017.  He stated that Cabinet would be requested to consider an exempt report in respect of the award of the Waste Collection and Community Recycling Centre Services which is commercially sensitive and relates to the business and financial affairs of the Council and the preferred bidder. 

The Corporate Director Communities reported that Cabinet at its meeting on 15 March 2016 approved proposals to re-procure the Council’s waste collection and CRC services on the basis of securing improvements to the recovery and recycling of materials and the Council’s recycling performance as measured by the Welsh Government’s performance management framework.  He outlined the principle services to be provided by the bidders, whereby the contract included a financial mechanism to share the fluctuations in the value of recycling income generated under the contract, based against market indices.  He stated that a performance management framework had also been included in the contract with financial deductions for defaults to be applied when certain default thresholds are exceeded.  Following the receipt of initial tenders from 4 bidder and evaluation, two bidders were taken forward to the negotiation stage, while 2 bidders were not taken forward to the next stage and were given their evaluation scores.  Dialogue discussions were held with the two selected bidders and on conclusion of this stage the Call for Final Tender documents were issued to the two selected bidders.  Final bids were received by 7 October 2016.

The Corporate Director Communities reported on the procurement process in that Cabinet would be requested to award the contract to the preferred bidder and to delegate to him in consultation with the Corporate Director Operational and Partnership Services and Head of Finance and Section 151 Officer finalisation and completion of the process of entering into the contract with the preferred bidder.  He stated that bidders were directed to collect in line with Welsh Government guidelines but otherwise given the opportunity to propose the containment method that represented best value.

He informed Cabinet that the final tender submission made by the preferred bidder will improve the Council’s environmental performance and assist the Council in meeting waste targets and avoid the imposition of fines. 

He informed Cabinet that a growth bid would be submitted as part of the budget setting process for 2017/18 to secure additional resource in order for the Council to provide the service going forward.  He stated that further savings of £221,000 are anticipated from other waste budgets in 2017/18 and future savings were anticipated due to the reduction of residual waste being sent to landfill.  He informed Cabinet that an equalisation reserve would need to be established to smooth the effect of annual movements on the budget due to the nature of the financial mechanism to share the fluctuations in the value of recycling income generated under the contract.

The Cabinet Member Resources placed in record his thanks to officers for their advice and guidance given the significance of the contract.  The Leader commented on the need for a Member Development Session to be held in order that Members gain an awareness of the new waste management arrangements.  He stated that it was crucial that a communications plan be put in place in order that the key messages of the new waste management arrangements are shared positively with the public in order to achieve the ambitious recycling targets.  The Cabinet Communities commented on the importance of conveying to the public the need to separate waste due to the stringent checks that would be put in place.  The Cabinet Member Adult Social Care and Health and Wellbeing commented on the need for awareness raising of achieving recycling targets in order to avoid considerable fines. 

The Corporate Director Communities informed Cabinet that a report would be brought to the next meeting of Cabinet on the process for granting dispensations, enforcement and a communications plan.

RESOLVED:           That Cabinet noted the information contained in the report.