Issue details

20/00122 - Contract for the Processing & Recycling of Wood Waste 2020

Proposed decision:

 

To provide delegated authority to the Cabinet Member for Environment to approve the award of a new contractual arrangement for processing the County’s waste wood deposited at the Household Waste Recycling Centre’s by Kent residents’.

 

Reason for the decision:

·         KCC currently has in place a contractual arrangement that is due to expire 14th November 2021, therefore KCC Waste Management is seeking a new contractual arrangement for the processing of waste wood from that date.

 

Background:

·         As the Waste Disposal Authority, KCC has a statutory responsibility to dispose of waste deposited at Kent’s 18 Household Waste Recycling Centres, of which one stream is wood.

·         KCC Waste Management currently operates a contract with Countrystyle Recycling Ltd for the processing of wood waste deposited at all Household Waste Recycling Centres in Kent by the public which amounts to an estimated 23,711 tonnes per annum.

·         By processing this wood, it is recycled into panel board or used for energy at a biomass facility in Kent.

·         The current contract commenced 4th October 2010 and following the initial term and 5 year extension period, a further 1-year extension period  in accordance with the Public Contract Regulations 2015 (PCRs) using regulation 32(2) (C) was invoked in November 2020 and is due to end 14th November 2021.

·         Medway Council also utilise the contract for the processing of their wood waste and KCC has agreed that this can continue with the new contract.

·         A commissioning activity is being undertaken to ensure continuity of service in respect of the acceptance of waste wood continuing at Kent and Medway’s Household Waste Recycling Centres.

 

Options:

·         Do nothing – the current contract will elapse. This is not an option as KCC as the Waste Disposal Authority has a statutory obligation to provide a waste disposal service.  

·         Discontinue accepting the Wood waste at the HWRCs – this is not an option due to KCC’s obligation to take this material under waste legislation.

·         Undertake a full commissioning activity to procure a new contract - The Contract has already been extended twice therefore a new commissioning activity is required to secure a provider who is able to process the waste material which is both financially and environmentally beneficial for the Authority.

 

Preferred Option:

·         Option 3 is the preferred option. The authority is seeking to appoint a new provider to secure a contract (for up to ten years) that will benefit and achieve the best outcomes for the authority and Kent households and fulfil the Statutory duty of KCC operating under the Environmental Protection Act 1990, to dispose of collected municipal waste.

 

The commission of this contract will meet Kent CC’s Strategic Statement 2015 – 2020 regarding the following outcomes:

Kent communities feel the benefits of economic growth by being in work, healthy and enjoying a good quality of life.

·         The vision is to focus on improving lives by ensuring every pound spent in Kent is delivering better outcomes for Kent’s residents, communities and business.

 

Decision type: Key

Reason Key: Affects more than two Electoral Divisions;

Decision status: For Determination

Division affected: (All Division);

Notice of proposed decision first published: 15/12/2020

Anticipated restriction: Part exempt  - View reasons

Explanation of anticipated restriction:
Commercially sensitive information relating to values offered. Schedule 12a, part1. Information relating to the financial or business affairs of any person (including the Authority holding that information).

Decision due: Not before 13th Jan 2021 by Cabinet Member for Environment
Reason: In order that the proposed decision can be published for a minimum of 28 days, in accordance with statutory requirements

Lead member: Cabinet Member for Environment

Lead director: Simon Jones

Department: Growth, Environment & Transport

Contact: Kay Groves Tel: 03000 411620 Email: kay.groves@kent.gov.uk.

Consultees

Public consultation is not required as there is no impact on the end user.

Financial implications: The cost will be met by existing revenue budgets. Haulage costs are accounted for within the Transfer Station contracts. The cost for the commission is circa: £3.7 million for an initial 5-year phase, with an additional £4.1 million for a further 5-year extension (including estimated indexation), with an overall cost of circa £7.8 million for a 10-year contract. There is possibility of a profit share or rebate on the recycled material. Budget code: P-7WC-61019-523-50Q-0000-00

Legal implications: A key function of the Waste Disposal Authority operating under the Environmental Protection Act 1990, is to provide outlets for the disposal of household municipal waste. In 2015, the European Commission adopted an ambitious Circular Economy Package to help make the transition to a stronger and more circular economy where resources are used in a more sustainable way. This circular economy model aims to reduce waste streams by reusing waste as a resource elsewhere. The Resource and Waste Strategy published in December 2018, states an ambition to reduce greenhouse gas emissions from landfill, this adheres with KCC’s aim of zero waste to landfill.

Equalities implications: An Equality Impact Assessment has been carried out and there is no adverse impacts

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