Agenda item

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.

 

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.

 

OPTIONS

 

The other alternative was to do nothing and not order the additional 12,000 garden waste bins.  This was not recommended as it would mean the Council was unable to offer the new service to all residents who still wish to subscribe to it and we would also not be able to fulfil obligations to residents who have already subscribed to the service.

 

REASONS

 

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 that was proposed to be funded by 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 which was allocated to Middlesbrough. This grant funding could replace 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.