Agenda item

The current Combined Cleansing Service Contract (CCSC) expires on 31 January 2026. To successfully procure a new contract within this timeframe, a Committee decision is required now in order to inform the strategic direction and scope of the new CCSC.

Upon the invitation of the Chair the Environmental Services & Strategy Manager presented the report. He explained that it was a requirement of the Environment Act 2021 that a weekly food waste collection to all properties in 2026 be implemented. The key decision required of Members this evening was whether to standardise the provision of a 180 litre residual bin or a 240 litre bin option for residents. Failure to make this decision and approve the other recommendations outlined in this report would result in delays to the procurement of a new contract and would significantly increase legal, procurement and financial risk to the authority.

Arun’s current recycling rate was just below 43%. The agreed vision target was to achieve a 55% recycling rate by 2025 and 60% by 2030. The current service of a weekly collection from sacks would never allow Arun to achieve this target.

Defra had provided capital funding of £1.66 million to procure vehicles and food waste caddies to deliver a weekly food waste service. Confirmation of transitional and ongoing revenue funding would follow shortly. In order to ensure financial sustainability and to ensure uptake of food waste collections, the residual collection frequency must be reduced and the recommendation was to move to a fortnightly residual collection service.

Choosing a 180 litre bin would support greater diversion of food waste and recyclable materials and encourage the right behaviours from residents. It was estimated that this would achieve a recycling rate of over 57% and deliver the Council’s immediate Vision target. A 240 litre bin provided more than ample capacity for a fortnightly collection and would potentially deliver a recycling rate of up to 53%. Both sizes would allow a future move to three weekly collections, although this was not deemed necessary at this time.

There was clear evidence from the 1-2-3 collections trial that high resident satisfaction could be maintained by introducing weekly food waste and reducing residual frequency. The recommendations in this report would ensure an enhanced and better performing service than the current one. Residents would receive an increase in core waste collections from 78 to 104 collections per year. Food waste made up approximately 42% by weight of a typical residual waste bin and targeted recyclables 13%. By giving residents the option to have both of these collected separately it reduced the need for residual collection frequency and capacity. When collected separately food waste could be processed via anaerobic digestion, which was a much more efficient and environmentally friendly way of processing and provided higher value end products in the form of bio gas outputs and fertiliser. There was an overall system benefit and carbon footprint reduction in this approach.

Other services provided under this new contract would largely operate as per the current ones. Dry mixed recycling collections and street cleansing operated effectively but would be reviewed in line with legislation and best practice.

The procurement strategy for this procurement was to deliver the best service and environmental solutions possible, whilst at the same time being mindful of the Council’s financial strategy and position and therefore ensuring that the contract was financially sustainable. Once all external funding and opportunities for efficiency and improvements were considered, it was hoped Arun would be in stronger financial position in relation to these services than currently.

Information provided by the industry from an early market engagement exercise supported and reinforced the recommendations in this report.

The recommendations were read out in full by the Chair, and were proposed by Councillor Wiltshire and seconded by Councillor Warr.

Members then took part in a debate and the following points were raised:

• Officers were thanked for such a good, detailed report.
• Was there the option of introducing soft plastics collection? It was confirmed that this was likely to be required in 2027, so was something Officers would be looking at including in the contract in the future.
• The 23 litre outside bin was quite low and it was asked whether Officers could explore the possibility of something being supplied to elevate the height of these for residents where required.
• It was asked whether Officers could look at whether fittings were available to install the small food waste caddies into kitchen cupboards.
• It was asked whether Members had a choice in whether the Group Head of Finance approved and signed off the framework agreement for the procurement and roll out of residual bins and food waste caddies. It was confirmed this was something the Group Head of Finance had delegated authority to sign-off.
• There was concern around providing a bin to all residents, as many would already have them. It was confirmed that an opt-out option could be offered, but the plan was to standardise the bins. During the trial only 1.5% of residents that took part opted out of receiving a new bin.
• Would special arrangements be made for people with limited storage capacity for bins? It was confirmed that the intention was to ensure each and every property had an appropriate solution, and these would be tailored where necessary.
• Would the spending of £1.2million for new bins equate to £1.2million in savings in future. The Consultant explained that standardising bins wherever possible would attract the most cost efficient contract prices. During the course of the eight year contract, there would be large financial benefits.
• Would larger families be supplied with larger bins when required? It was confirmed that if the Committee decided to standardise the 180 litre bin, a dispensation could be offered to larger families that needed bigger bins.
• It was asked whether residents were provided with larger recycling bins where required. It was confirmed this was currently provided when required, and would continue under the new contract.
• Further detail was requested on the estimated costs of the borrowing to fund the new bins and caddies. It was confirmed that based on an asset life of 12-15 years, it was estimated the borrowing costs would be around £135k per year, which could be funded through contract savings and potential future income that may be provided by the Extended Producer Responsibility Scheme.
• It was highlighted that if recycling bins were full, residents could put out additional recycling loose in a cardboard box, which would be collected (provided this remained dry).
• There was concern around borrowing money to fund the new bins, particularly in the current climate. The Group Head of Finance confirmed the level of borrowing in the general fund was currently very low. It was also possible that the level of contract savings and any potential future income that may be provided by the Extended Producer Responsibility Scheme, may mean borrowing would not be required, however this would not be known until nearer the time. This did not present a large financial risk. Borrowing was usual for a local authority, and the key was to look at the affordability of this.
• Clarification was sought on whether not standardising the bins could actually cost more in the long run. The consultant present confirmed standardising the bins was more cost effective and the savings would be substantial over a period of time.
• Neighbouring districts allowed people to purchase sacks to fill with green waste and have collected from the kerbside, had this been considered under the new contract? Officers confirmed this could be looked into.
• Were the bins made from recyclable plastics? Officers confirmed they would contain a percentage of recycled plastic.
• Further information was requested around the benefits of  administering the green waste subscriber service. Officers explained that further work needed to be carried out regarding this, however there would be customer benefits including pricing and customer service.
• Officers were asked for reassurance that cleanliness of public toilets would be a priority. Officers confirmed the contractual specifications would be looked at, and also clauses for non-performance.

The Chair asked the Committee to indicate which size bin residents should be provided with, a 180 litre or a 240 litre. A further discussion took place as follows:

• A 180 litre bin seemed sensible if larger families could be provided with bigger bins where necessary.
• One Member felt a 240 litre bin would be a better option as the collection was moving to fortnightly.
• It was felt that smaller bins would encourage less waste.
• With food waste being collected separately there should be less waste and people should be encouraged to throw out less by using smaller bins.

This was put to the vote and eight Members were in favour or the smaller 180 litre bin, with one Member in favour of a 240 litre bin. The Chair confirmed the Committee’s choice was to standardise the 180 litre bin.

The Committee

RESOLVED that

1.                    a)        The procurement of a new Combined Cleansing Services Contract based on the following changes to services provided under the contract, be approved:

                             i.       A new weekly kerbside food waste collection with a supplied 5 litre internal caddie and 23 litre external caddie

                            ii.        A fortnightly kerbside residual (refuse) waste collection from a 180 litre wheeled bin

                           iii.       Introduction of kerbside coffee pod, textiles and batteries collection services.

                          iv.       The new service to commence from 1^st February 2026.

b)             The inclusion of the following services as delivered under the current contract, be approved:

                             i.       A fortnightly kerbside dry mixed recycling collection from a 240 litre bin.

                            ii.        A fortnightly kerbside small waste electrical equipment items collection

                           iii.       A fortnightly kerbside garden waste collection service (subscribers only)

                          iv.       Street cleansing services

                            v.       Public toilet cleaning

                          vi.       A pay to use bulky waste collection service

c)             The award of the contract to the highest scoring bidder, based on the procurement strategy as set out in this report, be approved.

d)             authority be delegated to the Director of Environment & Communities to award the contract on the specified terms in accordance with the Council’s Contract Standing Orders.

2.         The following be noted:

a)             That the Group Head of Finance will approve and sign off a framework agreement for the procurement and roll out of residual bins and food waste caddies required to facilitate the new services.

b)             The principle of delivering the administration of garden waste subscriber services directly, based on the rationale provided in the report. The costs to providing this service will form part of a future budget report and will be offset through the commercial benefit of providing this service.

c)                 That the procurement, scope and evaluation of this contract consists of:

                             i.       An open tender procurement exercise.

                            ii.        A contract term of an initial 8 years with an optional extension of up to a further 8 years.

                           iii.       The tender evaluation strategy as set out in this report.

RECOMMENDED TO POLICY AND FINANCE COMMITTEE that

3.         it recommends that Full Council approve:

a)             the addition of £1,820,000 to the Capital Programme in 2025/26 to fund the purchasing and delivery of food waste receptacles and purchasing of vehicles necessary to provide the weekly food waste collection service as part of the CCSC, to be funded by a grant received from DEFRA.

b)             the addition of £1.2 million to the Capital Programme in 2025/26 to procure and roll out 180 litre residual bins for residents to facilitate a fortnightly residual collection service. This will be funded from borrowing if the Council is unable to secure further funding.