Agenda item

            The Committee considered the undernoted report:

“Relevant Background Information

      Members will be aware that in May 2010 a review of charges for wheeled bin containers was approved. The charges were based on a tender exercise conducted by arc21 for the provision of wheeled refuse containers.

      Following the tendering exercise, the contractor for the 240 litre residual waste bins informed arc21 that they were unable to meet their contract obligations and, as a result, the contract was terminated and a new tender exercise conducted.

      This report outlines the new supplier for the provision of 240 litre wheeled refuse containers and the impact on the Council’s charging mechanism.

Key Issues

      Following the termination of the contract for the provision of 240 litre residual bins, arc21 has recently carried out a new tender exercise for these containers.  The tender was for the supply and delivery of 240 litre wheeled refuse containers and the main terms and conditions are as follows:

·         Contract duration is 7 months in order to tie in with the expiry date of the concurrent arc21 refuse containers contract.

·         Prices are fixed for the duration of the contract.

·         No minimum guaranteed quantities

·         No exclusivity of supply.

      The tenders were evaluated on a cost (90%) and quality (10%) basis.  The most economically advantageous tender was received from Tank Engineering Ltd.

      The Service recommends that its requirement of 240 litre residual bins is sourced from the above company and in line with the terms and conditions of the arc21 contract.

      Taking into consideration this new product price, the Service proposes a revised charge for 240 litre and 140 litre residual bins to householders, passing on the savings arising from the arc21 re?tendering exercise.

* Dependent upon availability

      As members are aware that charges are levied per bin sale to cover the price of the container, delivery to the customer’s home and associated administration charges.  The prices outlined above are for the provision of wheeled bin containers for domestic use, which do not attract VAT.  Wheeled bin containers for use in commercial premises will attract VAT at the prevailing rate.

      The Council’s current bin charging policy requires residents to pay for their bin and any replacements, unless their bin has been destroyed by the Council during the waste collection process.  Residents are therefore currently responsible for meeting the cost of replacement bins where the original bin has been destroyed as the result of anti social behaviour, such as bin burning, as to provide a new bin free of charge would cost the Council at least £12,000 per annum given that it is estimated that currently 25% of bin replacements arise from anti social behaviour incidents.

      Residents who do require a replacement bin as the result of a confirmed anti social behaviour incident will be offered a refurbished bin, which costs at least 50% less than the new purchase price. 

      Given the instances of bin burnings, the Service has investigated the possibility of procuring non-combustible bins.  However, this option is not recommended based primarily on cost grounds and market soundings.  This will, however, be kept under review as new solutions emerge. 

Resource Implications

      Financial

      The recommended charges for bin sales are set to cover the price of the container, delivery to the customer’s home address and the associated administration charge.

      Human Resources

      No human resource implications associated with this report.

      Asset and Other Implications

      No other implications associated with this report.

Recommendations

      It is recommended that the Service source its 240 litre residual bins from the above company in line with the terms and conditions of the arc21 contract.

      It is also recommended that the prices for 140 litre and 240 litre residual bins are amended in line with the above pricing table.”

            The Committee adopted the recommendations.