Issue - meetings

RESOLVED: To

1.1.          To approve the procurement strategy set out in this report for the procurement (via a Competitive Dialogue process) of waste and recycling collections, footway winter maintenance, vehicle maintenance and street cleaning, for a term of 8 years, with an option to extend for a further two periods of 8 years each by mutual consent for a maximum contract value of £432m over the maximum contract term of 24 years

1.2.          To agree that better and more economic options for the provision of a Clinical Waste Service will be explored as a separate procurement

1.3.          To agree that the procurement of new recyclate off-take contracts for the Council’s domestic recycling material will be explored through the South London Waste Partnership and that any proposed commissioning of such services will be subject to the Council’s governance process.

1.4.          To note the findings from the recent resident engagement survey and focus groups to help shape the design and specification of the new service.

1.5.          To note that the final specification to be issued with the Invitation to Submit Final Tenders (following the discussions with bidders under the Competitive Dialogue process) will be subject to the approval of the Corporate Director of Sustainable Communities, Regeneration and Economic Recovery in consultation with the Executive Mayor and Lead Cabinet Member for Street and Environment

1.6.          To note that a report will be presented to Cabinet in June 2024 highlighting the outcome of the proposed procurement along with recommendation of Preferred Bidder and their proposed fully costed solution. This will include details of the proposed governance arrangements to manage the contract supported by the resourcing levels for the monitoring of the services performance

The Executive Mayor considered the Waste and Street Cleaning Service Commissioning approach for service deliver (Re-procurement Waste and Street Cleaning Service) report which presented the Councils approach to reshape the future waste collection and street cleansing service in line with the Executive Mayor Business Plan.

The Executive Mayor addressed that as part of his pledge to improve the quality and appearance of the street scene, ensuring contractors were held to account and delivering value for money, he did not extend Croydon’s eight-year contract with Veolia beyond March 2025 following views of the residents and the recommendations of the South London Waste Partnership to which this council was a member.

The Executive Mayor was pleased to announce that the council were taking important steps to procure a new waste and street cleaning service for the borough from April 2025. Additionally, following feedback from residents, set expectations had been designed which would assist what the Council required from potential bidders. The council proposed to ensure the new contract provided better value to residents, whilst focusing on promoting increased recycling performance, proactively tackling fly-tipping across the borough and provide a consistent bin collection service for residents.

The Executive Mayor thanked colleagues and officers in particular Councillors Scott and Ward for all the work they had achieved and a special thank you to the Director of Sustainable Communities, Steve Iles, and his team.

The Cabinet Member for Streets and Environment, Councillor Roche informed Cabinet that the report was built on an early decision in November of 2022 to not extend the service and this was the only decision made. Three key areas were highlighted to Cabinet which were the service delivery model; the procurement strategy; and specification and scope of services. The report noted the options for provision namely Direct Service Organisation (which would service in-house), outsourced contracted services, and local authority trading company. The report further highlighted the best value which illustrated financial risks; and that the contract out of service was the best option. Councillor Roche continued to acknowledge the specification scope of the current services to be robust.

In response to the report, the Shadow Cabinet Member for Streets and Environment, Councillor Herman raised a question relating to the decarbonisation of the waste service, and what changes the Executive Mayor would like to see in the waste service for goals to be met.

In response, the Executive Mayor shared that there was an effective waste service cleaning the streets and ensuring deliverance was valued for money, further, decarbonisation was part of the council’s overall strategy and would play a part in the contract.

The Corporate Director for Sustainable Communities, Regeneration and Economic Recovery, Nick Hibberd, added that the design of the waste and recycling collection services would play a key role contributing to the council’s emergency climate action plan. Further, the service proposed a two-stage dialogue process with potential bidders, to address the innovation they could bring relating to contributing to the climate change and carbon neutral agenda.

The Executive Mayor  ...  view the full minutes text for item 7