Issue details

20/00129 - Contract for the Processing & Recycling of Metal Waste

 

 

Reason for the decision

·       KCC currently has no formal contractual arrangements for the receipt and processing of metal, therefore KCC Waste Management is seeking a new formal contractual arrangement to manage the County’s waste metal.

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 metal.

·       KCC Waste Management has recently resumed ownership of metal as a waste stream since the completion of the HWRC and Transfer Station contract in Mid and East Kent (Nov 2020), where the provider held title. In West Kent, non-contractual arrangements have historically been in place and KCC is seeking to amalgamate the tonnages into a consistent and county-wide provision to seek optimum value for money for KCC.

·       A 5-year contract is sought to incorporate the processing of circa 4,000 tonnes which will include an appropriate break clause to protect KCC’s interests.

·       It is envisaged that the contract will be split into geographical Lots to take into consideration the haulage aspect of the disposal.

·       By processing metal, it is segregated into ferrous and non-ferrous streams, shredded, and recycled into either new steel products or sold on to other metal off-takers for reuse.

Options

·       Do nothing – the non-contractual arrangements will continue with an off-taker recycling the material. This is not an option as KCC will obtain best value for money through a competitive process and via a contractual arrangement.  

·       Discontinue accepting the metal 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 - a new commissioning activity is required to secure a provider who can 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 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.

 

Decision type: Key

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

Decision status: Recommendations Approved

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

Financial implications: • The current revenue budget is for £56,500 per annum of income, which is based upon the current contractual arrangement whereby contractors take title of this material. • The projected income for the commission is circa £1.9 million for a 5-year contract, the increase reflects the title of materials reverting to KCC. • Haulage costs are accounted for within the Transfer Station contracts. • The Metal price is market tracked and the income level can fluctuate. • Budget code: P-7WC-61021-929-511-0000-00

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 aligns 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

Decisions

Agenda items

Documents