Agenda item

Report attached

The Joint Committee received a report on the current position regarding the Residual Waste Treatment Contract and other ancillary waste and recycling contracts managed by the South Tyne and Wear Waste Management Partnership (STWWMP).

The Joint Partnership Team continues to undertake several waste management  functions on behalf of the partner authorities, including reviewing and verifying monthly contract reports, which detail materials processed and service issues. Once approved, invoices are processed and, where appropriate, apportioned between partner authorities within contractual timescales.

This is enabling, amongst other things, a proactive and timely approach to management of the RWTC which is operated under strict timescales. Similar benefits are also afforded to the procurement and management of other ancillary contracts, such as MRF, HWRC, and green waste composting.

Appendix A which was appended to the main report highlighted the latest 2019/20 contract year performance. During recent months, service availability  has continued to be strong with plant availability 99.31% and turbine availability 99.04%.

The Joint Committee were also advised that the exercise to replace the Debt Service Reserve Account (DSRA) with a contingent Debt Service Reserve Facility (DSRF) is still progressing and hopes to be finalised within this financial year.

The Joint Committee were advised that the joint insurance cost reports are provided by STWER every two years which set out the mechanism for the insurance review procedure and sharing insurance cost differentials. The report illustrate the state of the insurance market during the term and any resulting increase of benefit from relevant insurance costs are shared between STWER and STWWMP.

The Joint Committee were advised that the third JICR has now been submitted by Willis Towers Watson and reviewed by STWWMP, with some issues raised for action. Initial indicators are that due to movements in the insurance market in relation to our technology the position is not as good as it has been previously.

The Joint Committee were also advised that all three of the WTS have continued to remain available and are accepting STWWMP contract waste without significant issues. Recycling activities are ongoing at each site, which includes the segregation of materials, such as street sweepings, wood and scrap metals.

Routine maintenance of buildings, plant and control systems continue to be delivered as planned and no issues have been identified.

The Environment Agency visited the Jack Crawford House WTS on 12 December 2019. No issues were raised during the visit.

The Joint Committee were advised that the RWTC affords provision for Suez to help to improve local prosperity across the partnership area by promoting  vacant posts within their facilities. Local vacancies are circulated to partner authorities economic development services for circulation to their client bases. Vacancies are also highlighted at the Jack Crawford House and Campground Community Liaison Groups to enable opportunities to be circulated across community contacts.

The Joint Committee were advised that currently, Suez are in the process of recruiting some posts at the EfW facility.

STWWMP remains committed to an ongoing programme of community education and engagement managed by Groundwork North East & Cumbria (GNEC) at the visitor and education centre, the energy-from-waste facility, and through outreach activities held in local schools and community settings.

Between April 2019 and January 2020, 5,982 local residents, children & young people and community group members took part in waste awareness events, activities and site visits.

The Joint Committee were advised the MRF contracts continue to be monitored closely by the joint partnership team This includes processing payments, holding regular contract meetings and performance reviews, and Health & Safety site inspections at the various contractor facilities to ensure that recycling performance is maximised.

Appendix B appended to the main report highlighted the latest 2019/20 performance April 2019 – January 2020) for the materials collected by each partner authority  in the kerbside ‘blue bin’ recycling service. The results are also broken down to demonstrate the paper collected separately in the inner box and the comingled materials collected in the main section of the blue bin.

The commingled recycling tonnages in each partner authority continue to fluctuate due to several different reasons, including the development of light weight recyclable materials across the sector, householder participation, and seasonal variations. However, paper tonnages collected separately in the inner caddy continue to fall year on year.

Appendix B appended to the main report, also highlighted MRF recycling and recovery rates (for comingles material only) since Quarter 1 2018/19. Recycling performance has generally remained at similar levels in each partner authority. Sunderland City Council continue to identify actions to help increase their recycling rates and reduce contamination rates (shown as recover in the table), including direct engagement with the public.

The recycling trial that commenced in February 2019 on a singe collection round in both Gateshead and South Tyneside is enabling around 2,400 households to recycle paper and cardboard materials together in a separate, additional, wheeled bin. Details of tonnage of paper and cardboard that has been collected since the start of the trial were also highlighted at Appendix B.

Although the trial is taking place in Gateshead and South Tyneside,  the trial feedback and results will benefit all three partner authorities and will be used when evaluating future service delivery models.

The trial will continue to be delivered in the existing collection rounds until the end of the current MRF contract in March 2021. However, following further discussions with the contractor, the trial will not be extended into additional collection rounds in other parts of Gateshead and South Tyneside. This is due to the time remaining within the delivery of the current contract for the mobilisation and distribution of a significant number of additional bins, plus the necessary pre and post-trial communications and workshops that will be required to be delivered. Furthermore, the ownership of the additional bins may have a potential impact on the forthcoming MRF procurement exercise that is scheduled to commence later this year.

The Joint Committee were advised on 30 January 2020, STWWMP were advised of a serious Health & Safety incident that occurred at the Wards mixed fibre

Facility at Hartlepool. As Wards are a sub-contractor to Palm Recycling Ltd, this facility receives some material from Gateshead and South Tyneside mixed fibre trial highlighted above. Unfortunately, a Wards member of staff suffered serious injuries during the incident and died at the scene. Enquiries are ongoing into the circumstances of the incident and a joint investigation is taking place with the Health & Safety Executive.

The current MRF contracts for each partner authority will end on 31 March 2021. Previously, STWWMP secured free-of-charge consultancy support from the Waste and Resources Action Programme (WRAP) to support the next MRF contract procurement. This included a collections options appraisal analysis and the final report will be used to evaluation the best option for the kerbside collection model that the partner authorities will have in place and its impact on the next MRF contract specification and procurement.

Table A, Appendix C appended to the main report highlighted the latest HWRC recycling performance for 2019/20 (April 2019-January 2020), excluding inert materials, such as rubble.

STWWMP has recently completed a joint procurement exercise for the management and operation of the HWRCs from 1 April 2020. Gateshead and South Tyneside awarded a new joint contract to SUEZ (subject to Cabinet approval in South Tyneside). The contract is for a period of 36 months with an option to extend for a further 3 x 12 month periods.

However, under this procurements exercise, Sunderland were unable to award a new contract as the bids received did not meet the affordability criteria. Alternative arrangements have now been identified to ensure service continuity from 1 April 2020.

The Joint Executive were advised that the regional contract procured through the North East Procurement Organisation (NEPO) for the collection and management of Waste Electrical and Electronic Equipment (WEEE) and batteries was awarded to Valpak Limited. The 36-month contract commenced on 1 January 2020, with an option to extend for a further 2 x 12 month periods.

STWWMP appointed a project officer and part-time electrician to deliver the externally funded small WEEE Repair and Reuse Project. Their employment with GNEC commenced in January 2020 and the project’s first repair event was held at Gateshead Civic Centre on 14 February 2020.

A formal launch for the project has been arranged for 18 March 2020 at the Visitor and Education Centre, with a formal invite circulated to relevant officers and councillors.

A second project, focusing on kerbside WEEE recycling, will commence once the grant has been formally received from the funding body. The receipt of funding has been delayed due to a rebranding of the funders from the WEEE Fund to Material Change and the launch of their new campaign ‘Recycle Your Electricals’

RESOLVED -  That the Joint Executive Committee noted the contents of the report.