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Agenda item
Agreeing the Delivery Model for the next Hastings Street Cleansing Service
Minutes:
There was a correction to the recommendation that “Cabinet would recommend to Council the recommissioning of street cleansing and bulky waste services set out in the associated part two confidential reports on this agenda”
Cameron Morley, Waste and Cleansing Services Manager presented a report on Agreeing the Delivery Model for the Next Hastings Street Cleansing Service. The purpose of the report was to provide Cabinet with comprehensive background information to the recommissioning of the council’s street cleansing and bulky waste services and seek their approval to proceed with the preferred service delivery model as set out in the associated part two confidential report.
Contracted-out prices are being obtained through the East Sussex Joint Waste Contract Procurement Team, hosted for the partnership by Rother District Council. They should be available on Monday 18 June.
In advance of this the council’s Waste and Cleansing Services Manager has developed a fully costed in-house service model. This will enable the council to assess whether or not the in-house model represents ‘best value’.
The council needs to decide which service delivery model to use for this very important service and notify the East Sussex Joint Waste Procurement Team by no later than 20th July 2018.
The Coastal Users Group was presented with the part one of the report, and gave their views on it in consultation. These views were then provided in the part two report to Charity Committee and both were happy with the report.
On July 172017 the council’s Cabinet considered a report called Future Waste and Cleansing Services. It provided an update on arrangements for the provision of our new waste and cleansing services from the end of June 2019. The report set out the background to the letting of the current East Sussex Joint Waste Contract to Kier Environmental in October 2012. In April 2017 these problems had result in a decision to agree to the mutual termination of the 10 year contract 3 years early at the end of June 2019.
The report to Cabinet last June, set out some of the reasons why the council should consider changing from the contracted-out model of delivery to an in-house service for our street cleansing services.
Councillors discussed that throughout the last contract with Veolia, and the current contract with Kier Environmental, the council has worked closely with a specialist waste consultancy called WYG to carry out independent audits of ‘street scene’ 3 times a year. They work to a recognised methodology associated with a previous national indicator known as NI195. This enables an objective assessment of street scene issues such as litter, fouling, graffiti, and detritus.
Historically there has often been an assumption that contracted out services are more cost effective and deliver better value than in-house services. This is really an unfortunate generalisation that dates back to the last century when some council workforces were not managed efficiently and had larger than necessary work forces. This resulted in the drive to contract out services through compulsory competitive tendering, which is an approach to service delivery that a growing number of councils are now reconsidering.
Fewer complaints about street cleansing would result in reduced demand on our community contact centre. Waste and cleansing calls and complaints have consistently been one of the highest sources of demand on this service throughout the current contract.
Councillor Fitzgerald proposed approval of the motion, seconded by Councillor Chowney.
RESOLVED (by 6 votes for, 0 against and 2 abstentions) that:
1. The Council’s next street cleansing and bulky waste service is delivered through an in-house service, commencing June 2019 as set out in the part two confidential report.
2. That Cabinet approve the associated upfront estimated capital and revenue expenditure as set out in the part two confidential report, which will be profiled over 2018/19 and 2019/20.
3. Delegated authority be given to the Assistant Director Environment and Place, in conjunction with the Chief Finance Officer in consultation with the Leader, to adjust the budget to take account of timing issues and adjustments to variations in mobilisation costs.
The reasons for these recommendations were:
As set out in the associated part one report, the Council has experienced significant problems with the existing contracted out street cleansing service. This has led to misgivings about the suitability of delivering this high profile high impact essential service in this way.
In July 2017 Cabinet approved a recommendation to develop a costed in-house service delivery model, and to seek prices for a contracted-out service so that an informed decision could be made on the most appropriate service delivery model for our future street cleansing services.
Supporting documents:
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