Issue details

20/00128 - Contract for the receipt and processing of Paper and Card

Reason for the decision

         KCC has entered into a short term supply agreement (from 16 January 2021 until 1st December 2021) for East Kent Paper and Card (est. 15,000 tonnes p/a) to ensure continuity of supply, whilst KCC goes out to market for the wider receipt and processing service which incorporates County-wide provision within a longer-term contractual arrangement.

 

Background

         As the Waste Disposal Authority, KCC has a statutory responsibility to dispose of waste collected by the Waste Collection Authorities and deposited at Household Waste Recycling Centres, one stream being  Paper and Card.

         The current arrangements are:

o        an existing contract with Smurfit Kappa (which ceases in December 2021) for the receipt and processing of paper and card collected at Kent’s 18 Household Waste Recycling Centres (HWRCs) and received from South West Kent’s kerbside collections.

o        a short-term contract (10.5 months) for the receipt and processing of paper and card collected from the East Kent kerbside which became KCC’s title in January 2021.

         A longer-term contractual arrangement (up to 5 years) is sought for the receipt and processing of paper and card collected from the East Kent and South West Kent kerbsides and to include paper and card from all Kent’s HWRCs.

         It is envisaged that the commission will be presented in geographical Lots to take account of haulage considerations to the treatment facility and will include provision for managing circa 33,000 tonnes of Paper and Card.

         This is an income generating material which is market tracked. There is further financial benefit in segregating the card from the mixed paper at the HWRCs.

 

 

Options (other options considered but discarded)

 

         Option 1 – Do nothing – the current arrangements will continue; this is not an option as one of the contracts is a short term contingency for East Kent only and the other contract ceases in December 2021 with no extension provision; best value would be secured from a longer term contract providing for all of the County’s Paper and Card processing needs.

         Option 2 – Discontinue accepting  Paper and Card waste from the Collection Authorities and at HWRCs; this is not an option due to KCC’s obligation to take this waste as the Waste Disposal Authority.

         Option 3 – Continue to accept the waste, but utilise alternative disposal options by using landfill or incineration; this is not an option as there is a priority  to move this material up the waste hierarchy and to meet landfill diversion targets.

         Option 4 – continue with the interim arrangement whilst undertaking a commissioning activity to secure a provider/s who is able to process and recycle the waste material meeting the circular economy priority outcomes which is both financially and environmentally beneficial for the Authority.

 

Preferred option:

         Option 4 is the preferred option. The authority is seeking to appoint a new provider to secure a contract (for up to five 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.

 

Decision type: Key

Reason Key: Expenditure or savings of more than £1m;

Decision status: For Determination

Division affected: (All Division);

Notice of proposed decision first published: 04/01/2021

Decision due: Not before 2nd Feb 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: David Beaver, Head of Waste Management and Business Services Tel: 03000 411620 Email: david.beaver@kent.gov.uk.

Financial implications: This is a revenue-based INCOME contract. • The current markets for mixed paper and card fluctuate as they are market driven, such factors can affect the overall cost and although historically there is value in this material stream, the value and demand has dropped over the last few years as can be seen on a range of industry indices. - The income from the interim arrangement from January 2021 – December 2021 is projected to be circa £450k; - The total income of the commission for the 5 year period is projected to be circa £4.9m; - Haulage costs are accounted for within Transfer Station contracts; - Budget Line: Waste Facilities & Recycling Centres P 7WC 61021 929 510 0000 00

Legal implications: • Under the Environmental Protection Act 1990, as the Waste Disposal Authority, KCC has a legal obligation to provide a waste disposal service. The temporary arrangement enabled the Authority to discharge its statutory duty as Waste Disposal Authority • 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 EQIA has been carried out and no equality implications have been identified as this is a business to business service. Any public interaction at the HWRCs with regard to segregating paper and card will be covered by the HWRC EQIA.

Agenda items