business case for an improved waste and recycling...
TRANSCRIPT
Appendix 1
Business Case for an Improved Waste and Recycling Service
Background
The Council has to replace approximately half its vehicle fleet in 2013 which is intended to
support its waste and recycling collection requirements for the following seven years
minimum. The type of vehicles it procures will be determined by the type of collection service
which in effect will be set for the seven year planned life of the vehicles. The opportunity has
therefore been taken to review its collection options according to local circumstances,
national trends, customer research, market developments and service cost.
At the same time, Northamptonshire County Council (NCC) is procuring its residual waste
disposal service and needs to know the tonnage and residual waste nature of each its waste
collection authorities. This service review will provide this information.
Given all these changes, the opportunity has been taken to review the current waste and
recycling collection service to determine what improvements can be implemented within the
cost constraints facing the Council. From an options appraisal undertaken by the Council’s
Review and Development Service Delivery Committee, the Cabinet at its meeting on 13
February agreed;
§ That officers be requested to submit a detailed business case for a weekly food waste collection service and moving to a three wheelie bin system by introducing an additional bin to collect dry recyclable materials including card in 2013 to the April meeting of Cabinet, such business case to include the proposed consultation process to achieve support for a weekly food waste collection service;
§ That the Cabinet supports the Review and Development Committee’s recommendation not to introduce charging for the garden waste collection service;
§ That Cabinet delegate authority to the Director of Community and Environment and the Head of Environmental Services, in consultation with the Portfolio Holder for Environment and Waste management to submit an expression of interest for funding and that further consideration of an outline bid be given to Cabinet at its April meeting.
This is a complex project which is reflected in the high number of inter-dependent
components necessary to deliver the new collection service successfully. This Business
Case contains the current position, relevant issues and proposals for each of the following
sections;
Food Waste Collection
Three Wheelie Bin System
A Four Day Collection Week and Rounds Review
Implementation Period
Vehicles - Purchase v Leasing and New Vehicle Requirements
Procurement Processes and Timescales
Outline Communications Plan
Project Management
HR Implications and Proposed Further Elected Member Consideration
Risk Management and Current Uncertainties
Financial Implications
Food Waste Collection
Currently, all food waste is either put in the residual waste bin for the majority of residents or
is home composted by a relatively small number of households. Food waste can constitute
upwards of 30% of the weight of most household’s residual waste bin. Therefore, having a
separate collection arrangement and treatment for this type of waste, will have a significant
effect on the tonnage of waste sent to landfill. This fact has been recognised by many waste
collection authorities which is why there is a growing national trend for this form of waste to
collected and recycled.
There are two main types of food waste treatment facilities - Anaerobic Digestion (AD) and
In-Vessel Composting (IVC). Usually food waste collected separately is sent to AD facilities.
Food waste collected with garden waste is sent to an IVC facility.
Anaerobic digestion works by breaking down food waste without the presence of air, leading
to the production of methane. The methane is drawn off and burnt by a gas engine which
produces heat to heat the anaerobic digester and to also generate electricity. Since the
electricity produced is now considered renewable, the operation of AD plants have become
more attractive in recent years.
IVC works by breaking down food waste with the presence of air. No methane or electricity is
produced in this process. The capital costs of building IVC plants can be less than ADs but
the running costs are not offset by electricity generation. Consequently ADs are becoming
more common as financially they become more attractive to own & operate than IVC sites.
Hence collecting food waste separately is becoming more common amongst collection
authorities than collecting mixed with garden waste. Collecting food waste separately on a
weekly basis is likely to ensure the maximum capture of food waste. Collecting food waste
mixed with garden waste usually captures slightly less food waste partly because such
collections are usually on a two weekly basis.
NCC has decided not to provide food waste processing facilities. Instead NCC are offering
districts £77/tonne for each tonne of food waste recycled. This is significantly more than
statutory recycling credits. The treatment costs for food waste collected separately are likely
to be in the range £40-£55/tonne. Hence the £77/tonne offered by NCC will not only cover
the treatment costs but will make a small contribution towards the additional running costs of
collecting food waste. As this is a non-statutory payment some certainty that these payments
will not be removed will be sought from NCC.
For the householder, best practice is to provide two caddies to each household. One is
usually 20-30 litres in volume and is kept outside with a lockable lid. The second is kept in
the kitchen closer to where the food waste is generated. The kitchen caddy is usually 5-7
litres in volume and holds 2 or 3 days of food waste arisings. Once full it is emptied into the
outside caddy. The kitchen caddy will be optional for households as some households would
prefer to empty their food waste directly into the larger caddy.
NCC through the Northamptonshire Waste Partnership (NWP) have set aside the capital
funds for districts to fund caddies. In total to provide each property in the District with the two
different sizes of caddies is estimated to be £180k. This funding is already set aside for
South Northamptonshire.
Some households like to line their kitchen caddies. This can usually be done by using
compostable liners or using paper. Good practice often shows that issuing a starter roll of
compostable liners helps initial participation and subsequently helps to develop permanent
recycling habits. This is because the liners can convince residents that food waste recycling
can be relatively clean. However very few councils issue free compostable liners beyond the
initial rollout due to the significant cost – typically £150k per year. Compostable liners are
sold from most supermarkets at about 10-12p per liner.
To collect food waste there are two main types of vehicles - smaller vehicles (typically 7.5 -
12 tonne) and larger refuse collection vehicles (RCVs) with a food waste pod. The small
vehicles seem best suited in urban areas where a two man crew can typically cover 2500 –
3000 properties per day. They empty the caddies into a wheeled bin and empty the wheeled
bins into the smaller vehicle.
Podded vehicles allow food waste to be collected at the same time as other materials. For
instance on one week they may allow the collection of food waste while a refuse collection is
being carried out and on the second week they may allow the collection of food waste while
co-mingled dry recycling is also being collected. They require an additional crew member in
urban areas but in less densely populated areas the collections in most cases do not require
an additional crew member.
The Government has made £250 million available for councils to bid for funds supporting
weekly waste collections. Although weekly refuse collections will receive the most favourable
response, weekly food waste collections will be considered. The fund is meant to support
food waste collections which would have not occurred unless they received financial support.
In addition, for a bid to be successful it must show that the scheme is supported by
residents. An expression of interest for £375k to support additional vehicle needs, launch
and publicity costs has been submitted. If the Council wishes to proceed, an outline formal
bid must be submitted by 16 May 2012 with a full bid submitted by mid August. The final
decision on award is due in October 2012.
It is proposed that food waste is collected on a weekly basis separately subject to financial
support from NCC as outlined above and support from the government’s £250m fund.
Householders would receive two caddies with these caddies being funded through
NCC/NWP capital funds. It is also proposed that a mixture of podded vehicles and small
vehicles are procured to allow district wide collections of food waste, with the small vehicles
concentrating most productively and therefore cost effectively on the urban areas. It is also
proposed that a procurement exercise is undertaken to source treatment facilities for food
waste collected.
Three Wheelie Bin Collection System
The current service can be summarised as follows
• Recycling: just over 35,000 households in South Northamptonshire receive the ‘standard’ household service: in week one cans and mixed plastics are collected in a black kerbside box. This mix has been supplemented from April this year by card from the green wheelie bin. In week two, paper and glass are collected in a green kerbside box. Around 920 flats receive a weekly dry recycling service for glass, cardboard, paper, cans and plastics from large communal wheeled bins. A total of 5,763 tonnes of dry recycling was collected in 2010/11.
• Garden waste: Garden waste and card was until April 2012 collected co-mingled in a green wheeled bin until the card was removed from April this year. Collections of garden waste only are fortnightly using vehicles which are alternated between the garden waste and residual waste services. A total of 10,845 tonnes of co-mingled garden waste and card was collected in 2010/11.
• Residual waste: all households also receive a fortnightly residual waste collection in a 240 litre wheeled bin on alternate weeks to the garden waste. A total of 17,368 tonnes of residual waste was collected in 2010/11.
The two bin and two box system with some kerbside-sort of recyclable materials is a
relatively expensive method of collecting dry recyclable materials. A more cost efficient
method of collection whilst encouraging maximum recycling participation by households is a
three wheelie bin system – one each for residual waste, garden waste and all dry recyclable
materials including card.
Wheeled bins for dry recycling are particularly good for collecting materials such as plastics
and card ie materials which occupy a lot of volume. Usually the introduction of wheeled bins
for recycling increases the amount of materials recycled since bins do not have the
limitations on volume which boxes have. In addition bins tend to mean that there is less wind
blown litter than boxes.
Wheeled bin collections are quicker than box collections, hence vehicles can cover more
properties per day than kerbside sort vehicles. This leads to less vehicles and lower
operational costs.
Keeping materials separate can mean better prices. However the combination of rising
commodity prices, the improvements in sorting technology and the building of many very
large Materials Recovery Facilities (MRFs) has meant prices for co-mingled materials is
strong as demonstrated in the recent dry recyclables procurement process.
Wheeled bin collections have a number of additional benefits. For collection staff, collection
involves less bending and twisting and less cut hazards since crews do not sort the materials
by hand in the less than ideal conditions of the roadside.
For residents, the introduction of a wheeled bin should make recycling easier, particularly for
items such as plastics, card & cardboard. Some residents may have space concerns –
however smaller 180 litre bins could be made available to properties which have space
constraints.
A Four Day Collection Week and Rounds Review
A number of Councils have successfully operated a four day, Tuesday to Friday collection
week with the following benefits:
• Customer – Collections will always occur on the same day and will not be disrupted for
Bank Holidays on Mondays apart from at Christmas.
• The Council – four day week systems can substantially reduce overtime payments. For
SNC this could be around £40k per annum. Other savings can also be achieved from the
reduced need for publicity to inform customers about changes to collections brought
about by Bank Holidays. In addition, collections can be set up to achieve more efficient
routes to achieve fuel savings. Finally, in the event of disruption to collections from
adverse weather events, Mondays can prove very useful to allow a quicker catch up for
collections.
• Staff – whilst the four day week requires a longer average working day, it gives staff a
three day weekend and a better work life balance. In addition, a few Mondays per year
can be utilised for training making sure staff skills are kept up to date.
Currently there are seven rounds carrying out refuse and garden waste collections. Each
round serves around 5,000 properties per week. In the proposed new collection, the seven
rounds are likely to collect refuse and food waste one week and co-mingled dry recycling
and food waste on the next week.
The current recycling vehicles will be replaced and three rounds will collect garden waste
with this team being increased to four rounds during the peak of the summer. During the low
garden waste participation period (December – February) some of the garden waste crews
may be reduced to a driver and loader only.
Although geography is important, a three wheelie bin system can enable a single crew to
collect from 6,000 properties per week . If South Northants were to increase the number of
properties per round through the three wheelie bin collection service, it is anticipated that the
number of rounds could be reduced by one. However, due to the rural nature of the District,
it may not be possible to reach 6,000 properties per week and it would leave no capacity for
the anticipated housing growth in the coming years. Consequently, it would be more efficient
longer term to retain seven rounds but not always have an extra staff member for collecting
food waste. As housing numbers increase over time, the crew sizes can increase
accordingly for part of the housing growth delivered thereby maximising the period during
which the current crews numbers can operate and delay the need for an additional crew and
vehicle.
With the tipping outlets having already changed for dry recycling materials and the outlets
possibly changing for residual waste from April 2013 and new outlets being used for food
waste and potentially garden waste, then a review of routes will be needed. The Council has
access to a NWP owned IT package called Routesmart which can help. It is likely that by the
autumn, the residual waste outlets, food waste outlet and garden waste outlets will be
known. At this point a review of rounds needs to be carried out so the most efficient routes
are implemented in relation to the tipping locations to minimise fuel consumption.
Implementation Period
There are two main options when implementing a new collection scheme – implementing in
a phased manner or implementing everywhere at once.
Implementing all properties at once in a ‘big bang’ manner, can lead to a number of
customer service & operational capacity issues. With all 36,000 households changing over a
very short period, a large number of telephone enquiries to customer services would result.
Even with clear publicity literature, good website information and road shows, some
residents will have questions. Hence there will be a rise in phone calls at the launch of a
scheme which over a short period becomes difficult to resource. Additionally, launching over
a short timescale can make operational activities such as bin deliveries difficult. Delivering
36,000 wheeled bins plus a similar number of both caddies with associated literature takes a
lot of resource if delivered over a short period.
By delivering in a phased approach, numbers of customer calls and e mails can be better
managed. In addition, activities such as bin and container deliveries can be more efficiently
undertaken.
With pressure on the customer service centre high in March and April due to Council Tax
and NNDR billing, it is proposed that a new scheme is rolled out from June 2013, in seven
stages (one for each collection round). Allowing two- three weeks between each round
implementation should be completed by the end of September 2013. This phased approach
means that resources can be concentrated more effectively on one round at a time to
support the most effective roll out and calls to the Council will be spread over a longer period
which means that volumes can be managed more efficiently and a better quality service can
be given.
Vehicles - Purchase v Leasing and New Vehicle Requirements
Currently South Northants purchases small vehicles but leases larger vehicles with
maintenance included. SFS has been the Council’s provider for some years.
There are both pros and cons to how vehicles are acquired. Leasing with maintenance
means that vehicles are leased for a fixed period of time, normally seven years. A payment
is made each year for the use of maintained vehicles. Some additional payments are made
for unfair wear and tear.
Over a 7 year life a typical refuse collection vehicle, the following lease costs are incurred:
Lease cost with maintenance £236k
Unfair wear & tear £14k
Total expenditure £250k
Over a 7 year life a typical refuse collection vehicle purchased through a framework
agreement and self maintained incurs the following costs
Purchase cost £125k
Income from sale (£8k)
Maintenance over 7 years £91k
Total expenditure £208k
Hence there is a difference estimated to be £42k per vehicle. When it is considered that the
Council has 14 refuse collection vehicles, the value to the Council of purchasing instead of
leasing over the full life terms of the vehicles will be in excess of £500k.
Additionally, purchasing allows vehicle life to be looked at on an asset by asset basis. Hence
if an asset is in good condition after 7 years, the vehicle life could be extended further and
even greater value achieved. Therefore purchasing rather than leasing vehicles is proposed.
Currently there are seven refuse collection vehicles which have leases which commenced in
2010 or 2011 and are therefore relatively new.
There are nine vehicles used on recycling collections which are due for replacement in April
2013. In total, they incur leases costing £246k per year. These costs are capitalised under
IFRS requirements.
Given the needs of the proposed new service described above, the proposal is to purchase
5 refuse collection vehicles with food pods and 2 smaller food waste collection vehicles at
the following estimated costs:.
5 Refuse Collection Vehicles £750 - £800k
2 Food Waste Collection Vehicles £110 - £125k
Total £860k - £925k
The proposal is a reduction in two vehicles but will permit the use of a combination of
retained leased vehicles and new purchased vehicles to deliver the new food waste and
three wheelie bin collection service.
Procurement Processes and Timescales
There are a number of items which need to be procured for the proposed new scheme
Containers
36,000 wheeled bins for dry recycling and two types of caddies again for up to 36,000
properties
Estimated costs are £700k for wheeled bins and £180k for caddies.
These containers would be purchased through existing framework agreements such as
Yorkshire Purchasing Organisation (YPO) or Eastern Shires Purchasing Organisation
(ESPO). The estimated lead time is 3-6 months.
Vehicles
Seven vehicles again would be purchased through existing framework agreements. For
outright purchase the estimated value is around £900k. The estimated lead time is 6-8
months
Outlets for Food Waste & Garden Waste
Procurement of these services will likely require a full EU tender. The estimated value of the
tender or tenders would be around £150k per year for food waste and £200k per year for
garden waste. The estimated lead time would be around 6-9 months.
Because of the lead time required for these procurement processes and the need for cost
certainty as soon as possible, they will be commenced as soon as a decision on the new
collection service is made and the results of the procurement processes incorporated in the
draft 13/14 budgets whenever possible.
Outline Communications Plan
It is recognised that effective communications will be critical to the successful implementation of any substantial service change. The proposed approach to communications is that there will be two strands – internal (staff and elected members) and external – to guarantee that the correct messages are reaching the appropriate audience. External communication will concentrate on providing residents with the tools and information to make the transition as smooth as possible, thereby maximising recycling levels and minimising contact with customer services. This strategy will also rely on a great deal of support from local media to provide comprehensive coverage of the changes. The central purpose of internal communication will be to ensure staff involved in implementing the transition are fully prepared to help residents with their enquiries. The secondary aim is to gain positive buy-in from all remaining staff across the council to act as ambassadors for the scheme. Key Messages
• We are making these changes as part of a comprehensive overhaul of the Council’s refuse and recycling operation. Once complete, this will ensure stability for years to come.
• While residents already recycle half of their rubbish, the Northamptonshire Waste Partnership has targeted 56% by 2020.
• The Council has just entered into a new dry recyclables contract in collaboration with Cherwell and Aylesbury Vale leading to £170,000 increase in SNC’s income for 2012/13. This is likely to rise as a result of increased recycling levels provided by new scheme.
• Greater capacity in the new recycling bin will make it much easier for residents to recycle more and send less to landfill.
• The weekly food waste collection scheme will save the taxpayer £***,*** per year in landfill costs and is expected to increase income from recyclables by £***,***. This will help the Council keep council tax at the lowest possible level and protect frontline services.
• In the face of further anticipated reductions in Government grant, the reduced future service cost of over £200,000 will help the Council protect those front line services most valued by residents.
• Food waste recycling is only a part of the picture. Residents are being urged to cut their waste through smart shopping, portion control and using leftovers. If they have any food waste, much of this can be home composted to provide a rich soil conditioner for use in their gardens. Items which cannot be home composted can now be placed in the brown caddy for recycling.
• The introduction of weekly food waste collections will help reduce the risk of any unpleasant odours in the warmer spring and summer months.
• The food waste will go to an anaerobic digestion facility where it will be turned into compost and the gas it produces turned into energy.
• If residents recycle as much as they possibly can, refuse should be evenly distributed between the three bins, meaning there will be no need for overflowing bins and recycling boxes.
• There will be no charges for the garden waste collection service.
Proposed Approach The approach should ensure all stakeholders remain informed about the various stages of development, keeping them engaged and interested in the process. Having a shortlist of potential council spokesmen will guarantee that someone is available to comment at each stage while ensuring the key messages remain consistent.
• An initial press release has been drafted outlining the changes and proposed timescales. This will be sent to all local media, trade and local government press and posted in the news section of the Council’s website following the Cabinet’s decision. It is possible some of the local media might pick up on the proposals from committee papers before they are discussed. For this reason, a statement has been prepared for release on approach.
• Detailed communications plans have been compiled showing how the development will be publicised internally and externally to gain the most advantageous response from the media, public and staff.
• A stakeholder profile list has been drawn up detailing the main stakeholders, key messages and timescales. These stakeholders have also been plotted into an interest/influence matrix which outlines who the key players are felt to be.
• A list of frequently-asked questions has been compiled and can be added to throughout the process.
• Lead Councillors will be briefed to conduct print and broadcast interviews While it is essential that all concerned concentrate on the positives, there are a number of potential risks associated with such a large-scale change to the Council’s recycling operation. These will be addressed through the proposed approach above. Draft Communication Plan and Timeline
External
Date Message Audience Method Responsibility
28 March
2012
Cabinet papers go
live
• Media (reactive)
• Statement Communications
11 April
2012
Cabinet approves
changes to refuse
and recycling
• Media
• Residents
• Press release/Twitter
• Website/SNC Review/Twitter
Communications
June 2012 One year until roll-out • Media • Press release Communications
November
2012
Bin collection
calendar – last of
current arrangements
• Media
• Residents
• Press release
• Website/SNC ReviewTwitter
Communications
February
2013
New recycling plans
forthcoming year’s
big budget news
• Media • Press release Communications
May 2013 Roll-out set to
commence next
month
• Media
• Residents
• Press release
• Website/Twitter
Communications
May, 2013 New bin collection
calendar
• Residents • SNC Review Communications
June 2013 Roll-out commences
along with start of
delivery of new
vehicles
• Media
• Residents
• Press release/photo call
• Website/Twitter/Agripa
Communications
June 2013 First collections
(wagons roll)
• Media • Press release/photo call
Communications
June/July/
August
Step-by-step roll-out
with advice for those
householders who
have not grasped the
principles of the
scheme (this will
need to be broken
down into sections
reflecting the stage-
by-stage roll-out
which will also need
to reflect how
accommodation such
as flats will be
brought on-board)
• Media
• Residents
• Schools
• Press releases
• Delivery of information packs and bins/posters in areas of high footfall/website/SNC Review/Twitter/ doorstepping/ roadshows/
telephone
holding
messages
Communications
Environmental
Services
Customer
Services
September/
October
2013
Roll-out complete • Media
• Residents
• Press release
• Website/Twitter
Communications
November
2013
First full month of
new scheme –
recycling levels
• Media
• Residents
• Press release
• Website/SNC Review/Twitter
Communications
compared with
previous year where
possible
December
2013
Christmas recycling
with particular focus
on food
• Media
• Residents
• Press release
• Website/Twitter/recipe suggestions for leftovers
Communications
Internal
Date Message Audience Method Responsibility
26/27 March
2012
Briefing Cabinet
members responsible
• Councillors Mrs Clarke, Bambridge, McCord and Herring
• Briefing session Communications
Environmental
Services
28 March
2012
Cabinet papers to go
live
• All staff and members
• In Brief/
• Nellie/Your Council Matters
Communications
28 March
2012
Contact centre
briefing
• Contact centre staff
• Staff briefing Communications
Environmental
Services
11 April
2012
Cabinet approves
changes to refuse
and recycling
• All staff and members
• In Brief/ Nellie/Your
Council Matters
Communications
May 2012 Engagement on
implementation
• All staff and members
• Series of in-house events
Environmental
Services
July 2012 Feedback on staff
engagement
• All staff and members
• In Brief/ Nellie/Your
Council Matters
Communications
September
2012
Preparation of
information packs
• Key stakeholders
• Workshop Communications
Environmental
Services
November
2012
Staff and member
engagement on
effectiveness of
information packs
• Staff and member working groups
• Workshops Communications
Environmental
Services
February
2013
Finalisation and
ordering of
information packs
• N/A • N/A Communications
April 2013 Ordering of Agripa
panels
• N/A • N/A Communications
May 2013 Ordering of posters
to go in areas of high
footfall
• N/A • N/A Communications
May 2013 Roll-out set to
commence
• All staff and members
• In Brief/ Nellie/Your
Council Matters
Communications
May 2013 Preparation with roll-
out staff
• Tove Depot staff
• Training Environmental
Services
June 2013 Roll-out and delivery
of new vehicles
commence
• All staff and members
• In Brief/ Nellie/Your
Council Matters
Communications
June/July/A
ugust
Step-by-step roll-out
(can be broken down
when timetable
devised)
• All staff and members
• In Brief/ Nellie/Your
Council Matters
Communications
Environmental
Services
Customer
Services
September/
October
2013
Roll-out complete • All staff and members
• In Brief/ Nellie/Your
Council Matters
Communications
November
2013
First full month of
new scheme –
recycling levels
compared with
previous year where
possible
• All staff and members
• In Brief/Nellie/ Your Council
Matters
Communications
December
2013
Christmas recycling
with focus on food
waste
• All staff and members
• In Brief/ Nellie/Your
Council Matters
Communications
Project Management
The key to a delivering this new and changed service successfully lies in a combination of
comprehensive and thorough forward planning, a very effective communication plan and
strong project management to ensure all the components of the project are delivered to the
right standard at the right time. A good start has been made in that this matter has already
had some rigorous consideration well in advance of the proposed implementation period.
However, once the Cabinet has agreed the business case for the required service change,
the planning, preparation and implementation of that change must commence immediately
and be progressed through a formal project management structure.
Given the importance of this service change, it is therefore intended to use the corporate
project governance and controls for a major project:
- A Project Board made up of the key individuals from across the Council who will be
charged with delivering the project. The core membership will be drawn from service
managers, finance, HR, communications, legal and procurement officers plus the
project manager.
- The PFH for Environment and Waste Management, the Director of Community and
Environment as joint project sponsors along with the Head of Environmental
Services to be Board members
- A Project Manager is appointed on a full time basis for the period from the beginning
of May 2012 to end of August 2013. It is proposed that this be Elly Attwood who is
currently the Council’s Environmental Team leader at the depot and who knows the
District and the service very well which will mean that her substantive position will be
backfilled.
- SNC’s project management methodology be used with oversight from the
programme office. Periodic progress reports be submitted to Cabinet meetings
- A project risk register which is actively managed and an integral part of the Board’s
focus
HR Implications and Proposed Further Elected Member Consideration
Detailed below is a timeline of relevant HR and other activity which culminates in a report to the Appointments and Personnel Committee in December 2012 along with other proposed reports to elected members to provide more detail of the proposals and progress.
Date Action Lead Officer
3 – 13 June 2011
Review of terms and conditions of Tove Depot Staff. Consultation paper informed staff that this project represented the first stages in a wider programme of work. Although the paper did not specifically mention a potential four day collection week, it referred to measures which may result in further operational and work pattern changes.
Completed
13 February 2012
Cabinet report – Future Waste and Recycling Arrangements An opportunity to review the current waste and recycling collection service to determine what improvements can be implemented.
Completed
February 2012
Team briefs – initial informal discussions have already taken place with staff about the proposed changes and a potential four day collection week
Completed
10 April 2012
Cabinet report – outline proposal for a potential four day collection week
Director of Community and Environment/Head of Environmental Services
May - July 2012
Development of Business Case and consideration by joint management team and/or JASG should a shared service be agreed.
Director of Community and Environment/Head of Environmental Services
August 2012
Informal consultation with affected staff carried out by Head of Environmental Services in conjunction with HR and Trade Unions
Head of Environmental Services
September 2012
Formal Consultation (three weeks) – consultation document issued to staff setting out the proposed changes to terms and conditions. Trade Unions invited to be involved in all stages. Consultation log maintained by HR.
Head of Environmental Services
October 2012
Formal Consultation meeting with staff Progress report to Service Delivery Review and Development Committee 3 October
Head of Environmental Services Director of Community and Environment/Head of Environmental Services
November 2012
Progress Report to Cabinet 12 November Consideration by Local Joint Committee
Director of Community and Environment/Head of Environmental Services Head of Transformation /Director of Community and Environment /Head of Environmental Services
December 2012
Consideration by Appointments and Personnel Committee
Head of Transformation/ Director of Community and Environment/Head of Environmental Services
Beginning of March 2013
Advise all staff of implementation plan Issue updated terms and conditions (12 weeks notice)
Head of Environmental Services HR Manager
April and May 2013
Meet with crews to clarify new arrangements Offer staff the opportunity for a 1:1 meeting with Environmental Works Manager
Head of Environmental Services
1 June 2013 Commencement of revised contracts to coincide with implementation of new service
Risks Management and Current Uncertainties
This business case has been compiled with the latest position as of March 2012 on all
aspects of the project. However, there are several issues which cannot be precisely
quantified at this point in the process either because the information is currently unavailable
or because they rely on other project details to be confirmed first. Those issues which fall
into this category currently are as follows;
- Finalising the external funding from NCC, NWP and potential funding from the
Government (this last element may not be confirmed until October 2012). NWP one
off funding is reasonably certain as is the NCC financial support for the food waste
collection and disposal cost. However, this needs to be formalised and clarity need to
achieved regarding the need for it to be linked to the on going provision of the service
and not time limited.
- Tipping and treatment outlets – other than for dry recyclates which have recently
been procured and therefore tipping and treatment sites determined, these cannot be
determined until the respective procurement processes for garden waste, food waste
and residual waste (an OCC process) have been completed.
- Rounds Review – this is more appropriately undertaken as part of a detailed later
piece of work which takes into account the waste and recycling tipping locations to
minimise travel time and distance, how a four day collection week can be best
implemented and making the best use of the different types of vehicles to maximise
crew productivity.
- Tonnages – the new service will result in a different make up of tonnages of waste
collected. Estimated new tonnages for residual waste, dry recyclable materials,
garden waste and food waste have been included in the modelling as a basis for
projecting overall costs. These have been influenced by the market intelligence which
Eunomia were able to offer in the early stages of this process but remain a risk until a
full operational year has been completed. This risk is felt to be a low to moderate
one.
- Food and Garden Waste Gate Fees – whilst the tonnages affect the amount paid by
the Council in gate fees, the actual gate fees per tonne cannot be determined until
the relevant procurement processes have been completed. In the meantime, average
gate fees have been included in the cost model which has also been influenced by
the market intelligence which Eunomia were able to offer in the early stages of this
process.
It is intended that the project’s risk register will include such uncertainties which will be
targeted for resolution as early as possible in the project plan.
Financial Implications
It is clear from the above that there will be many changes to the Council’s current costs and
income streams arising from the new service when compared to the current approved
budget. The initial calculations arrived at by a combined Environmental Service and Finance
team have concluded the following full year effect based on the 2012/13 revenue budget.
The figures below are a summary of the full year revenue effect following implementation
which are expected to materialise in 2014/15. There will be further one off costs in 2013/14
associated with communications, additional implementation crews and project management
which are not included here as they will be considered as specific 2013/14 budget items for
that budget preparation process.
Revenue Impact Food waste Tonnes Rate
Northamptonshire CC Credit 3,250 £77 £250,250
Gate Fee for processing food waste 3,250 £50 £162,500
2 small vehicles running costs £11,150 5 extra crew ( 1 small vehicle) + 1 on 3 of the podded vehicles £116,809
Total £40,209
Dry Recycling
Loss of income £407,000
Co-mingled income 9,500 £22 £209,475
12 staff savings (4 less drivers, 7.5 less loaders) £239,689
Fuel savings (estimated at 40,000 litres) -£43,541 Three less vehicle savings (estimated based on lease costs) £130,630
Total £216,335
Efficiencies
Four day week (overtime saving) -£40,000
Better rounds, more efficient set up less fuel -£10,000
Total -£50,000
Change
Extra food waste costs £40,209
Dry recycling saving £216,335
Efficiency saving -£50,000
Loss of Interest on Capital per year on £1.6m £14,880
Ongoing Annual Revenue Savings £211,246
There are some one-off costs of implementation for rolling out the food waste scheme.
External funding is being bid for to offset these costs but the costs are detailed below.
One-off Implementation costs Delivery of food waste containers £5,000
Advertising panels for the fleet (new and existing) £20,000
Part funding towards communication materials for householders
£36,000
Initial supply of compostable liners for all households and set up of vending machines/supply network for householders to purchase in future
£50,000
Total £111,000
Less: External funding
Government Funding £111,000
There are also capital costs associated with the proposals and these are set out below:
Capital Impact
Purchase of Refuse Collection Vehicle with Food Pod 5 £160,000 £800,000
Purcahse of Food Waste Collection Vehicle 2 £62,500 £125,000
Purchase of Wheeled Bins for Dry Recycling 36,000 £19.44 £699,840
Purchase of Food Waste Caddies 36,000 £5.00 £180,000
Total £1,804,840
Less: Funds Already Available in the Capital Programme
Vehicle Replacement (12/13) -£123,972
Wheeled Bins & Recycling Boxes (12/13 & 13/14) -£130,000
Total £253,972
Less: External funding
NCC - food waste caddies 36,000 £5.00 -£180,000
Government Funding -£264,000
Overall Additional Capital (saving)/cost (subject to Government funding being granted)
£1,106,868