Agenda item

Contracts Update

Report attached

Minutes:

The JEC received a report advising them 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 JEC were advised, section 2 gives the background position on all contracts and procurements. The latest Materials Recovery Facility (MRF) contracts commenced on 1 April 2022. The contracts were awarded as follows:

 

·        Cumbria Waste Group Ltd – Gateshead and South Tyneside

·        J&B Recycling Ltd - Sunderland

 

The latest Green Waste contracts also commenced on 1 April 2022. These contracts were awarded as follows:

 

·        Remondis Ltd – Gateshead and Sunderland

·        Suez Recycling and Recovery UK Ltd – South Tyneside

 

Section 3 provided details on the Residual Waste Treatment Contract.

 

The Committee noted that Paragraph 3.1 stated that the Competition and Markets Authority (CMA) announced their provisional findings in May and have stated that, for a number of specified reasons it finds that the merger of the two businesses in the UK may be expected to result in a substantial lessoning of competition. It is therefore now considering possible remedies including a divestment of the SUEZ recycling and recovery UK business. In the meantime, SUEZ will continue to operate as normal in the UK.

 

Paragraph 3.2 states that Ian Sexton, Commercial Advisor at STWER is retiring on 30 June 2022. He will be replaced by James Dowell who is due to start work on 1 June and Ian will be held on a retainer for one year to support James.

 

Household waste levels have reduced slightly compared to the peak of the pandemic but still remain higher than pre pandemic levels.

 

The JEC were advised that Appendix A highlights the contract performance for the year end 2021/2022. Both contractual recycling and recovery performance continue to operate above target.

 

Paragraphs 3.6 to 3.10 gave details of the waste transfer stations and in particular the communications campaign developed to support prevention of fires and that the stickering of all residual and dry recycling bins is now complete. Also, that ITV news have visited Campground and recorded a piece highlighting the dangers of incorrectly disposing of batteries and small electricals which aired on Thursday 31 March 2022. The campaign was also put forward to the Let’s Recycle Awards and was shortlisted as a finalist in the Health and Safety category recognising its efforts to reduce fire and near miss incidents throughout the collection and processing routes for such materials. The Awards Ceremony was held in London on 18 May 2022, attended by Fiona Swinburne and Anna Harrison, however, unfortunately it was not selected as the winning bid on this occasion.

 

Paragraphs 3.11 to 3.13 gave the JEC details on line 4 and 5 availability and notes 2 breaches recorded.

 

Under community education and engagement work carried out by our Waste and Recycling Visitor and Education Centre Co-ordinator, it should be noted physical activity and outreach work have resumed with COVID-19 guidance with just over 2,400 local resident’s, children and young people having taken part during this period.

 

Newsletters are still being used to highlight and promote forthcoming activities. Paragraph 3.21 gave a list of promotions that have been circulated to all contacts on their database.

 

Section 4 gave the JEC details of the Materials Recovery Facility or MRF contracts.

 

Table A (i) and (ii) at Appendix B provides the performance for blue bin recycling for the year end 2021/22 and April respectively.

 

The JEC noted that paragraphs 4.1 to 4.3 state that comingled recycling tonnages have fallen when compared to the same period last year but are still higher than pre pandemic levels. Furthermore, separately collected paper tonnages continue to drop significantly and are at their lowest levels since 2014.

 

Table B highlighted the MRF recycling and recovery rates since Quarter 1 of 2020/21. Sunderland’s contamination levels continue to improve however, the contamination levels for Gateshead and South Tyneside remained higher in 2021/22 compared to 2020/21. All partner authorities are undertaking communications campaigns to highlight the impact of contamination on the blue bine recycling service.

 

The JEC were advised that paragraphs 4.6 and 4.8 gave further detail on how the new MRF contracts operate and that it is based on a risk share mechanism rather than a fixed price principle and therefore monthly costs will vary based on tonnages, composition, commodity prices and contamination levels.

 

Section 5 of the report gives details of the Household Waste and Recycling Centre contracts including recycling performance at the sites shown in Appendix C and that performance exceeded annual targets.

 

The JEC noted that paragraphs 5.3 & 5.4 gave details of the advanced booking systems that have now been implemented with these booking systems in the longer term but will regularly review how they are performing to ensure they are operating effectively. The Councils continue to receive positive feedback about the booking systems.

 

The Leader of Gateshead Council did receive a letter from DEFRA (Department for Environment Food & Rural Affairs) in March, asking the Council to carefully consider whether they continue with the booking system. The Council replied to this letter stating that they would be looking to retain the system permanently although they agreed they would review overall effectiveness after a period of six months. A report is currently being drafted for Overview and Scrutiny and has been taken to portfolio in Gateshead.

 

Section 6 of the report gave detail on the Green Waste Composting contracts.

 

The JEC were advised that paragraphs 7.1 & 7.2 gave details on the Waste Electrical and Electronic Equipment Contract and kerbside WEEE project. The WEEE kerbside project ended on 31 March 2022 when the funding ended.

RESOLVED – That the information be noted.

Supporting documents: