Agenda item

The Executive was reminded that, at its meeting on 3rd December 2013, it had resolved to jointly procure a new waste collection and street cleansing contract with a number of other local authorities. The Joint Waste Collection Contract (JWCC) has now been procured to provide a range of waste collection, recycling, street cleaning and associated services for the four partner authorities: Elmbridge Borough Council, Mole Valley District Council, Surrey Heath Borough Council and Woking Borough Council.

Whilst the Partner Authorities currently operated successful and cost-effective recycling services, all of which are operated under individual contracts, the aim of the Joint Contract was to put a contract in place which would build on existing success by encouraging further innovation and yield significant savings and service benefits for local tax payers.

Members were reminded that the Partner Authorities and Surrey County Council, as the Waste Disposal Authority, had signed an Inter-Authority Agreement (First IAA) during 2013/14 to regulate the terms and nature of the procurement. The Partner Authorities had been working together to procure the joint contract supported by a Project Manager and specialist technical and legal advisers.

Whilst the Joint Contract has been designed to provide each of the Partner Authorities with the same specification, the specification made some allowance for local choice and flexibility. Through the Joint Contract, Surrey Heath would be procuring the following services:

·       Municipal waste and recycling collection service, including mixed dry recycling, food waste, garden waste, electrical items, textiles and commercial waste;

·       Bulky waste collection service;

·       Clinical waste collection service;

·       Street-cleaning service;

·       Service Users’ Contact Management, including the administration of the garden waste service.

The initial term of the Joint Contract was 10 years, expiring on 3 June 2027, but after the initial term it could be extended with flexible extensions of up to a further 14 years, giving a total maximum 24 year term.

The Joint Contract had been procured so as to enable all other Surrey waste collection authorities to have the opportunity to join during the life of the contract, should they so wish; however, the arrangement ensured that the four Partner Authorities as the first cohort of authorities joining the JWCC would not be adversely affected by those joining at a later stage.

The Executive noted the main stages of the procurement process along with the key contract features. The outcome of the tender evaluation process was a recommendation to award the contract to Bidder ‘A’.

In order to ensure the contract was administered appropriately, a revised IAA (Second IAA) was required, which would set out how liabilities, rights, duties, undertakings and responsibilities arising from or out of the Joint Contract would be shared and managed between the authorities. It would provide the terms governing the Partner Authorities’ joint working arrangements throughout the term, including any extension, of the Joint Contract.

The Second IAA outlined how decisions in relation to the Joint Contract and the services delivered by the contractor would be made by elected Members and officers, and established new Terms of Reference for the JWCSC to oversee the implementation and evolution of the contract over its lifetime. The IAA also established a Contract Partnering Board and outlined the role of the Authorising Officer and the Contract Management Office. 

Members recognised that the outcome of the process was the result of a considerable amount of work and extended their thanks to all who had been involvedin the project.

RESOLVED

                               (i)          that Bidder A be awarded the Joint Waste Collection and Street Cleansing Contract (Joint Contract) with service delivery in Surrey Heath commencing on 5th February 2018 up to and including 5 June 2027, with the option for the participating authorities and the contractor to agree to extend the Joint Contract by one or more successive consecutive periods until 2 June 2041;

                              (ii)          to enter into the Joint Contract with each of the partner authorities and Bidder A;

                            (iii)          to enter into the successor Inter Authority Agreement (Second IAA) with each of the other partner authorities, Elmbridge Borough Council, Mole Valley Borough Council and Woking Borough Council  and Surrey County Council (in its capacity as the waste disposal authority (WDA)), which will regulate the relationship between the participating authorities (as necessitated by entry into the Joint Contract), establishes the shared contract management office (CMO) and the required governance arrangements, including the revised terms of reference for the Joint Waste Collection Services Committee (JWCSC Committee);

                            (iv)          to grant a lease of part of Doman Road Depot to Bidder A commencing on 5th February 2018 and co-terminus with Surrey Heath’s participation in the Joint Contract and the Second IAA at a peppercorn rent;

                             (v)          that responsibility for finalising the detail of the Second IAA and other related issues be delegated to the Executive Head for Community in consultation with the Portfolio Holder for Community; and

                            (vi)          that responsibility to implement any actions necessary to implement the recommendations of this report, including any changes to the Council’s constitution, be delegated to the Executive Head of Community; and

                          (vii)          that the Council be the administering authority for the Joint Contract.

RECOMMENDED to Council that

                               (i)          funding of £3.2m be included in the capital programme for 2017/18 and 2018/19 to provide capital funding for vehicle purchase funded by borrowing;

                              (ii)          the Executive Head of Corporate be authorised to update the Constitution with any required changes in light of agreeing the Second IAA;

                            (iii)          the Community Portfolio Holder (and an appropriate named deputy) be appointed as the Council’s representative on the Joint Waste Collection Services Committee;