Decision details

(i)  Subject to approval of Council recommendations (i) to (iii) below, that approval is given for the procurement of a single supplier waste disposal contract for commercial waste.

(ii)  That authority is delegated to the Service Director Transactions and Universal Services to carry out a procurement process for the delivery of a waste disposal contract for commercial waste, as set out in this report, and to enter into contracts for the delivery of the service in accordance with the Contract Procedure Rules.

(iii)  To authorise the Service Director Transactions and Universal Services to take all necessary actions to implement the proposals contained in this report

1.  The Environmental Protection Act 1990 allows Southampton City Council to collect Commercial Waste from businesses within the City boundary and a charge may be levied for this service. The commercial waste service is successful, generating £2.2M per annum gross revenue, which contributes £0.25M to the overheads of the Waste and Recycling Service. It has a good local reputation, and there is potential to further develop and expand this service.

2.  Commercial waste must be properly disposed of, and therefore the council must have a contract in place with a supplier to provide this service. The current arrangement comes at the end of the Financial Year and a formal and compliant procurement process must take place in advance of this date to ensure continuity of service. Undertaking a formal procurement process will ensure the council achieves best value for money, as well as factoring in other considerations such as ethical disposal routes. It will put the council in a position to grow the commercial waste business, and provide a high quality, cost effective service to more businesses in the city. It will also ensure that compliance with council Financial and Procurement rules.

1.  As noted above, the Environmental Protection Act 1990 allows the council to collect Commercial Waste from businesses. The council, if requested, must arrange for the collection of commercial waste so the option to withdraw the current service was rejected.

2.  Extending the current procurement exemption, or seeking a further MOU under the Project Integra household waste contract are not viable alternative options. Neither of these options would be legally compliant, they would also not ensure maximum value for money.

3.  An option to outsource the commercial waste service, or to partner with a private company, was explored as part of the LATCO business planning process. This was rejected as it was felt that with the right support SCC could grow the Commercial offer in house, continue to provide jobs with fair T’s and C’s, and continue to invest in the Southampton Pound.

No