With the 8-year waste and street cleansing contract with Veolia expiring in March 2025, the report outlines the service delivery options available for a new waste and street cleansing services post March 2025. The report will include a full options appraisal along with supporting financial summaries for each model.

Cabinet is asked to review the options and recommendations within this paper in order to inform the preferred delivery model and scope of services to be commissioned over the next two years

RESOLVED:

-       That Cabinet noted the reference of the Sustainable Communities Overview and Scrutiny Panel set out in paragraph 2.5 to 2.12 of the report

A. That Cabinet noted the Best Value Assessment of the four identified service delivery models for both waste and recycling collection, and the street cleansing service.

B. That Cabinet noted the findings from the Resident Engagement survey undertaken by the service which identifies high satisfaction with waste and recycling collection along with identifying areas of required improvement within the street cleansing service.

C. That Cabinet agreed, based on the Best Value Assessment and Resident Engagement findings, to a model of securing service delivery that disaggregates the street cleansing service from the waste and recycling service.

D. That Cabinet agreed that a competitive procurement offers the Best Value approach to securing a waste and recycling service; authorise the publication of a Prior Information Notice to notify the market of the intention to tender for a waste and recycling service; and confirm that officers can proceed to prepare all necessary tender documentation.

E. That Cabinet agreed with regards to the waste and recycling service that the tender opportunity is advertised on the basis that the successful bidder will be required to ensure all employees who are wholly or substantially engaged in delivering the contract have terms and conditions of employment that are equivalent to the Council’s.

F That Cabinet noted the implications for the Medium-Term Financial Strategy, from 2025/26, of agreeing to tender on the basis of equivalency of employment terms and conditions and the rationale for making this recommendation.

G. That Cabinet noted the Greater London Authority’s (GLA) role, under the Greater London Authority Act 1999, to issue directions to London boroughs in relation to waste management procurement and note the impact this has on the procurement timeline.

H. That Cabinet agreed that the setting up of a Direct Service Operation offers the Best Value approach to securing a street cleansing service and authorise the Waste and Street Cleansing Project Board to undertake further detailed work on a service specification that responds to residents’ concerns about the current service.  

I. That Cabinet noted that further Cabinet decisions will be sought as necessary with regards to the various components of the proposed service specifications for the waste and recycling, and street cleansing services.

J. That Cabinet noted that the recommended model, and underpinning rationale, for securing service delivery of waste and recycling, and street cleansing services, has been subject to pre-decision scrutiny by the Sustainable Communities Overview and Scrutiny Panel on 13 February 2023, and that any comment or recommendation from the Panel will be referred to Cabinet by the Panel Chair.

K. That Cabinet noted that in accordance with the Council’s Contract Standing Orders the proposed procurement strategy for the waste and recycling service will be considered by the Council’s Procurement Board, chaired by the Chief Executive, prior to final approval to proceed to tender