Purpose

The Director of Environment
and Community Services submitted a report for Executive consideration. The
report sought approval for the purchase of an additional 12,000 bins to respond
to the increased demand for the garden waste subscription service. The virement
of capital resource from the Traffic Signals scheme would fund the purchase and
delivery of the additional bins, and the report sought delegated authority for
the Director of Environment and Community Services to purchase additional waste
bins, in line with service demand.

 

Following the Executive
Report of 21 November 2023 the Council purchased 30,000 residual waste bins and
14,000 garden waste bins at a cost of £1.2m as part of the overall Waste
Strategy Review.  A total of £1.135m had
been spent on new bins to date. The reason for replacing bins was to move green
waste collection off diamond lift bins and on to comb lift bins reducing
vehicle costs and increasing resilience within the service. This also supported
the movement to a more sustainable waste collection service through the
reduction of side waste and other ancillary issues, promoting recycling rates.

 

On the 8 March 2024 the
Council introduced a chargeable green waste service and introduced fortnightly
collection for residual waste. The Council expected 9,300 subscribers. The
14,000 bins the Council had purchased were expected to cover subscribers to the
service and had a contingency level of bins following the Council’s decision to
implement a chargeable service.  The
demand for the garden waste subscription service had increased significantly
over anticipated demand modelling. The 
service currently had over 19,000 subscriptions, which was 9,000 more
than anticipated and this had resulted in the need for more brown garden waste
bins to be ordered urgently to meet demand. 
In order to meet this additional demand, and further potential increased
demand throughout the year, an additional 12,000 brown garden bins were
required at an additional cost of £0.376m.

 

As part of the Revenue and
Capital Budget Forecast Outturn position at Quarter Two 2023/24 report to
Executive on 21 November 2023, Executive approved the allocation of £1.2m in
the Capital Programme in order to fund wheeled bin replacements as part of a
comprehensive Waste Strategy Review.

 

The additional 12,000 green
waste bins would cost £0.376m and it was proposed that this was funded from the
remaining budget of £0.065m and a virement of £0.311m from the traffic signals
capital budget that was funded from Council resource which might be decommitted
due to the receipt of unplanned grant from TVCA as explained below.

 

Subsequent to the approved
Capital Programme by Council on 8 March 2024, TVCA had announced a total of
£2.5m in grant funding for the upgrade of traffic signals across the Tees
Valley, for which Middlesbrough was the lead authority. This included £0.5m allocated
to Middlesbrough. This grant funding could have replaced some of the Council
capital resource previously set aside to fund this work.  It was therefore recommended that £0.311m be
vired from the Traffic Signals scheme to fund the purchase and delivery of the
additional bins.

 

The procurement of the
additional bins would be undertaken in accordance with the ESPO framework
860_22 Refuse and Recycling Products.

 

Details of the expected
total capital cost of implementing the Council’s waste strategy were included
at paragraph 6.4 of the report.  The
increase in the demand for the garden waste collection service would result in
revenue income being higher than originally anticipated at budget setting. The
expected revenue income to be received from garden waste collection was also
included in the submitted report at paragraph 6.5.

 

The Executive Member for
Finance and Governance commented that the bins@middlesbrough.gov.uk
had been restored which would free some resource in the contact centre. For
residents calling the general 726001 phone number, a message was available
advising callers of the temporary bin shortage. The number also offered callers
the ability to speak to a member of staff if necessary.

 

The Mayor, the Executive
Member for Finance and Governance and the Executive Member for Environment
expressed their thanks to staff in the contact centre and Environment Services
for their efforts in the rollout in difficult circumstances.

 

The Executive Member for
Finance and Governance advised Members that a green waste bin cost the council
£25 per unit whereas the income generated was £40 per unit. In terms of
changing the type of bins it was confirmed this was going to happen anyway.

 

The Chief Executive
commented the bin rollout had, largely, been a success and there were lessons
to be learned. He also expressed his thanks to all staff involved.

 

Decision

ORDERED

 

That Executive approve:

 

1.   
The purchase of an additional 12,000
brown garden waste bins in accordance with the procurement arrangements set out
at paragraph 6.6 of the submitted report.

2.   
The virement of capital resource from the
Traffic Signals scheme to fund the purchase and delivery of the additional
bins.

3.   
That delegated authority was provided to
the Director of Environment and Community Services for the purchase of
additional waste bins, in line with service demand.