Issue - meetings

Note - Essential Reference Paper ‘B’ contains exempt information as defined in paragraph 3 of Part I of Schedule 12A to the Local Government Act 1972.  As such, it is enclosed for Members only.

That the Council proceed to the next stage, to develop an Outline Business Case for a Shared Waste and Street Cleansing Service with North Herts District Council (NHDC).

The Executive considered a joint report of the Executive Member and Ambassador for Shared Services and Executive Member for Environment and the Public Space on a proposal to develop an outline business case for a shared Waste and Street Cleansing Service with North Herts District Council (NHDC).

The Executive recalled that in December 2014, it had agreed in tandem with the NHDC Cabinet, that both Authorities undertake jointly, a project to consider whether there were benefits in developing a joint contract and shared service for waste collection and street cleansing services.  This had resulted in the strategic outline case, which was set out at Essential Reference Paper ‘B’ of the report submitted.  The Leader reminded Members that this contained exempt information and expressed her wish to consider the matter in the public arena as far as possible.  However, if Members wished to ask detailed questions relating to this document, the meeting could exclude the press and public.

The Executive Member and Ambassador for Shared Services referred to the strategic driver for the project in that both Councils were likely to have increasing financial pressures on their budgets in future years.  Therefore, new ways of working needed to be explored to determine what improvements and efficiencies could be achieved.  He explained that the existing contracts for both Councils terminated on the same day in May 2018, which would allow for a joint contract, if this was the preferred way forward.

In response to questions and comments from Members, the Executive Member and Ambassador for Shared Services stated that he expected to see savings achieved on both contractor and client management sides.  Further details would become clearer as the outline business case was developed.

The Leader referred to the Environment Scrutiny Committee’s support for the recommendation at its meeting held on 9 June 2015.

The Executive approved the proposal as now detailed,

RESOLVED - that the Council proceed to the next stage, to develop an Outline Business Case for a Shared Waste and Street Cleansing Service with North Herts District Council (NHDC).

The Executive Member for Environment and Public Open Space submitted a report setting out a strategic outline case for working in relation to Waste and Street Cleansing Service with North Herts Council.  Members were reminded that Essential Reference Paper “B” contained exempt information which was commercially sensitive and that if Members wished to discuss that information, then Members would need to move a resolution to exclude the press and public from the meeting.

The Ambassador and Executive Member for Shared Services and the Head of Environmental Services explained the background leading up to the submission of the strategic outline case for joint working and outlined the benefits to both Councils.

The Head of Environmental Services outlined the process to be followed if Members wished to recommend to the Executive that the Council proceed to the next stage.  The Head of Environmental Services explained that in moving forward and in terms of possible future options, there were three:

(1) do nothing;

(2) have a fully integrated service and joint infrastructure; or

(3) same as (2) but excluding the joint infrastructure.

In response to a query by Councillor P Phillips regarding North Herts’ commitment to a shared service, the Ambassador and Executive Member for Shared Services was confident that North Herts was serious about joint working.  The Chairman stated that North Herts’ Scrutiny Committee would be receiving the same report on 9 June 2015.

In response to a query by Councillor P Phillips about improving productivity and higher performance, the Head of Environmental Services suggested that one option for the Council could be to introduce separate food waste collection, which could be delivered through a new joint contract from 2018.  He stated that it was possible to add different services to different Councils with costs accruing to the responsible Council.

In response to a query from Councillor K Crofton, the Head of Environmental Services explained the benefits to be achieved from a larger joint contract including bulk buying of vehicles and access to cheaper fuel.

In response to a query by Councillor K Brush regarding competition and interest by smaller companies in the tendering process, the Head of Environmental Services explained that with regard to a waste contract, because the costs of equipment and vehicles were so high and larger companies were able to benefit from economies of scale, potential bidders were likely to be larger companies.  Contract tendering in relation to European legislation would be observed.

The Committee received the report and asked that Members’ comments as now detailed, be referred to the Executive along with its recommendation to the Executive for approval.

RESOLVED – that (A) Members’ comments as now detailed, be referred to the Executive; and

(B)       the Committee recommends to the Executive that the    Council proceed to the next stage, and that an Outline Business Case for a Shared Waste and Street Cleansing Service with North Herts District Council (NHDC) be developed.