Report attached

The JEC received a report, advising the Joint Executive Committee of the latest

position regarding the Residual Waste Treatment Contract and other ancillary

waste joint contracts and activities 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.

 

RESIDUAL WASTE TREATMENT CONTRACT (RWTC)

 

During the ongoing COVID-19 coronavirus pandemic restrictions, household

waste levels have continued to remain high.  However, all partner authorities

have been able to maintain residual waste collections from households across

STWWMP without interruption. 

 

COVID-19 contingency measures remain in place across all SUEZ RWTC sites

and no significant staffing issues have arisen.  The three waste transfer stations

have continued to manage the waste levels received and the EfW facility

continues to operate as planned and process the waste for energy recovery.

 

Where possible, home working for support services has been implemented.

 

SUEZ have advised that they are intending to apply for funding to pursue a ground-breaking carbon capture and storage project with project partners BP.  Utilising the EfW facilities at Haverton Hill and Wilton, the project is aimed at neutralising carbon through liquification so it can be returned to gas reservoirs in the sea via underground pipelines.  The partner authorities have provided a letter of support for the project.

 

EfW Service Update

 

Appendix A (which was attached to the main reports) highlights the 2020/21

contract performance for the period April-October.  Plant availability has

remained strong at 97.69% and turbine availability 94.88%.  

 

Both contractual recycling and recovery performance continues to operate above target and the unprocessed landfill diversion rate remains at 100%.

 

The JEC were informed that the exercise to replace the Debt Service Reserve

Account (DSRA) with a contingent Debt Service Reserve Facility (DSRF) was

completed and closed in October.  The financial model has been agreed which

has resulted in a £1.69 per tonne reduction to the Band 0 price for all partner

authorities. Over the remainder of the contract, this equates to an estimated

saving per annum of Gateshead: £88,000; South Tyneside:  £84,000; and

Sunderland: £105,000.

 

The Annual Unitary Charge Forecast Monthly Payment has been amended for

2020/21 so the benefit can be realised immediately rather than being accounted

for within the reconciliation process.

 

The third JICR was previously submitted by Willis Towers Watson and reviewed

by STWWMP.  A response from STWER is still awaited.

 

2020/21 Insurance Premium

 

Due to market availability, STWER requested another change in the insurance

cover for the forthcoming insurance year (from 1 November).  They advised that

they expect the insurance premiums for Property and Business Interruption to

increase by approximately 20% in comparison to last year and may rise further

due to the impact of the COVID-19 pandemic.  STWER have completed the

insurance cover exercise and the documentation for approval of the waiver is

being reviewed by STWWMP with support from colleagues at the Department

for Environment, Food and Rural Affairs (Defra).

 

Waste Transfer Stations (WTS)

 

As highlighted above, all three of the WTS were fully operational between April

and October.  Recycling outputs from the sites include segregated street

sweepings, wood, and scrap metals.

 

Routine maintenance of buildings, plant and control systems continues to be

undertaken as scheduled at all three transfer stations.

 

Targeted Recruitment and Training (TR&T)

 

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 authority 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.

 

As a result of a promotional opportunity, the Operations Manager role at the

EfW plant is currently vacant and the recruitment process is ongoing. 

 

Community Education and Engagement

 

STWWMP remains committed to an ongoing programme of community

education and engagement, delivered 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.

 

Interviews were recently held for the new Visitor and Education Centre

Co-ordinator and the successful candidate commenced employment with

GNEC on 19 October.

 

Following the suspension of all previously planned and proposed activities as

a result of the COVID-19 pandemic, the programme is currently being reviewed

to allow opportunities for virtual activities to be considered. 

 

However, work has recently progressed on a competition for local school

children to design a vehicle wrap for a WEEE contractor’s vehicle to increase

awareness of the danger of disposing batteries in both the residual and

recycling waste streams.

 

In addition, a ‘Twelve Days of Christmas Campaign’ has also been launched

with schools.   Supported virtually by the new Visitor and Education Centre

Co-ordinator, the campaign can be tailored by each school to meet their own

requirements.

 

Community Liaison Groups

 

The pandemic also continues to impact both the Campground and Jack

 Crawford House Community Liaison Groups and meetings are still not able to

be held.

 

MATERIALS RECOVERY FACILITY (MRF) CONTRACTS

 

Table A at Appendix B provides the latest 2020/21 performance for blue bin

recycling (April-October).  All partner authorities have continued to maintain the

blue bin recycling collection service to households throughout the COVID-19

pandemic without interruption to service.

 

However, as with residual waste levels, the impact of the pandemic continues

to see higher levels of recycling presented across the partner authorities as

many residents continue to work from home. 

 

Furthermore, the pandemic appears to be impacting on the types of materials

that are being recycled and whilst the amount of paper continues to fall, there

has been an increase in cardboard packaging.  For example, since the

lockdown in Gateshead, cardboard materials have represented nearly a quarter

of all the recycling that has been presented where previously, cardboard rarely

made up more than 10% of all the recycling collected. Tonnages of glass and

metals collected have also increased as consumer shopping habits have

evolved during the COVID-19 restrictions. 

 

The MRF contracts continue to be monitored closely by the joint partnership team.  As highlighted above, recycling tonnages of commingled materials remain at above average levels.  Therefore, frequent contract meetings/ calls are being held with contractors to discuss any mitigation that may need to be taken to ensure that the storage of material at the MRFs does not become an issue and that the sites are still able to process the additional tonnage that is being received.  The contractors’ updated business continuity plans have also been discussed with the joint partnership team.

Appendix B also contains Table B, which highlights MRF recycling and recovery rates (for comingled materials only) since Quarter 1 2019/20.  Unfortunately, the pandemic has also affected contamination rates, which have increased in Gateshead and South Tyneside throughout this period and has resulted in a lower recycling performance in Quarter 2 2020/21.  As sampling exercises are undertaken jointly, the results are the same for both partner authorities.  STWWMP continues to work with the contractor to identify how performance can be improved, including ensuring material sampling methodologies are robust.

 

The recycling trial that commenced in February 2019 on a single 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.  Table C at Appendix B provides details of the tonnage of paper and cardboard (known as mixed fibre) that has been collected since the start of the trial.  

 

Tonnages collected through the trial have generally remained static throughout the pandemic with a slight increase in South Tyneside.  The contractor has confirmed that there is a greater percentage of cardboard being collected and paper percentages have reduced.

 

Feedback from residents will be important when evaluating future service delivery models and benefit all three partner authorities in the longer-term.

 

The current partner authority MRF contracts expire at the end of March 2021 following the conclusion of the contract extension periods that were activated in 2018.  The contracts cannot be routinely extended beyond this date.

 

Therefore, under normal circumstances the STWWMP preparation for a full tendering exercise leading to the award of a replacement MRF contract(s) for the partner authorities from 1 April 2021 would have begun soon after March 2020.  Unfortunately, this was when the COVID-19 coronavirus pandemic struck and the national lockdown was put in place.  The unexpected disruption resulting from this public health emergency (such as the transition to remote working, realigned procurement priorities to ensure PPE could be sourced, the requirement for key staff to maintain the delivery of frontline services, and restrictions on travel and social distancing etc.) immediately impacted on STWWMP’s ability to move forward with the planned procurement exercise.

 

Household kerbside recycling collections are statutory waste collection services and it is critical that the partner authorities ensure that kerbside recycling collections are maintained without interruption from April 2021.  Consequently, alternative options in relation to the provision of such services were considered.  Following analysis of the options available and provisional discussions with a range of local MRF service providers, extending the existing contracts under the provisions of Regulation 72 of the Public Contracts Regulations 2015 (PCR2015) was identified as the most feasible option available to STWWMP. 

 

Initial discussions with the current Sunderland MRF contractor, J&B Recycling, indicated that they would be prepared to enter into a new short-term contract.  Unfortunately, the Gateshead and South Tyneside contractor, Palm Recycling, was not willing to accommodate such a provision.

 

However, the contract with Palm also includes sub-contracting arrangements with Ward Recycling Ltd (who operate the MRF at Teesside) and with Riverdale PLC at Team Valley (who operate the delivery point that receives the recycling collected by the partner authorities for onward transportation to the MRF).  Both companies indicated that they would be prepared to undertake a new short-term arrangement with Gateshead and South Tyneside.

 

Therefore, each partner authority is in the process of finalising approval to

utilise an urgent direct award under Regulation 32 (2) (c) of the PCR2015 to the

existing MRF contractor for Sunderland and the current Gateshead and South

Tyneside sub-contractors. 

 

These contracts will commence on 1 April 2021 for a period of 12 months ending 31 March 2022.  Initial preparations for a full tendering exercise leading to the award of a replacement longer-term MRF contract(s) for the partner authorities from 1 April 2022 have already commenced and regular discussions are being held with the Officer Project Board.

 

HOUSEHOLD WASTE AND RECYCLING CENTRE CONTRACTS

 

Table A at Appendix C highlights the latest HWRC recycling performance for 2020/21 (April-October).  The new way of calculating HWRC recycling performance now excludes not only inert materials (such as rubble), but also electrical waste (WEEE), low grade wood, and dry mixed recyclables/textiles etc.  This means that the performance of a site appears to be lower than that of previous years. 

 

Discussions are ongoing with SUEZ regarding the impact of the COVID-19

restrictions (such as the national lockdown when all HWRC sites were closed to the public and the subsequent restrictions on materials that were accepted on site) on the contractual recycling targets.

 

Over the summer months, the partner authorities have continued to undertake a gradual easing of the restrictions in the alternative service delivery models that were originally introduced because of the pandemic. 

 

For example, in August, sites began to accept all of the materials that were

previously able to be disposed at HWRCs, such as metals, rubble, textiles and

large electrical appliances.  To help maintain a safe social distance, access to

the gantries overlooking the skips and the number of people allowed to leave

their vehicle while on site is restricted to one person at any one time

In September, the HWRC vehicle permit scheme was re-introduced and this enabled residents to apply for a permit to dispose waste using a car with a trailer.

 

From early November, the restriction on large vans was also lifted after the

numbers of people using sites continued to ease, which meant that all vehicles

which had previously been allowed access to the sites prior to the pandemic

are now able to do so again.  As usual, vehicles such as large vans will require

a permit before being allowed on site.

 

When the HWRCs reopened in May, to consider traffic management issues,

Gateshead and South Tyneside introduced an odd and even number plate

system to help manage traffic and reduce queuing.  In Sunderland, an advance

booking system was introduced.  As allowing larger vans on site is likely to

increase dwell times due to the quantities of waste that these vehicles typically

contain, to help reduce queuing both systems will remain in place for the

foreseeable future.

 

During the summer months, to help cope with the backlog of domestic waste

and recycling after the original national lockdown, all STWWMP HWRCs

reopened with extended opening hours of 8am to 8pm.  From 1 October, all

sites returned to the normal winter opening schedule, i.e. 9am to 5pm on

weekdays and from 9am to 6pm on Saturdays and Sundays in Gateshead and

Sunderland, and 8am to 6pm in South Tyneside.

 

However, despite the easing of some of the previous restrictions highlighted

above, which are aimed at returning HWRC services to as near as normal as

is possible within the current pandemic situation, STWWMP continues to

monitor the ongoing COVID-19 situation very closely to ensure the strict 2 metre

social distancing rules continue to be followed.

 

As highlighted above, the short-term extraordinary extension to the Sunderland

City Council HWRC contract with SUEZ is set to expire at the end of September

2021.  This coincides with the development and opening of a new HWRC

located in Pallion.  The joint partnership team is supporting the Council in the

procurement of a replacement contract to manage the new site.

 

GREEN WASTE COMPOSTING CONTRACTS

 

All three partner authorities have now completed the 2020 kerbside garden waste collection season, which were extended into early December in South Tyneside and Sunderland.

 

No significant issues or significant contamination issues were identified during the course of collections.

 

Throughout the winter period, residents can continue to dispose garden waste free-of-charge at the household waste and recycling centres.

 

WASTE ELECTRICAL AND ELECTRONIC EQUIPMENT (WEEE) CONTRACT

 

The extended WEEE Reduce and Reuse project delivery timetable has now been confirmed with the funders.  The team returned on a full-time basis in September and began reviewing methods of engagement to identify new methods to collect material to redistribute to vulnerable residents.  This now includes the provision of packs of working small WEEE for redistribution throughout the STWWMP area through the Changing Lives Charity and to young adults coming out of care and into their new homes. 

 

Recently, STWWMP received notification that the organisation funding the kerbside WEEE project, Material Change, had changed its name to Material Focus.  The contract has now been signed and a WEEE Behavioural Change Officer appointed to deliver project activities.  This includes collections of small domestic WEEE and batteries from properties in targeted estates/ areas in each partner authority area. 

 

The project will link to the Reduce and Reuse Project by providing working small WEEE appliances that have been collected and maximise reuse opportunities.

 

RESOLVED – That the information be noted.