Purpose

Proposed
decision
 
The Cabinet
Member for Environment is requested to
approve the extension of the contractual arrangement for receipt
and processing of organic waste in south west Kent (including
Maidstone green waste) collected by Tunbridge Wells,
Tonbridge & Malling, and Maidstone Waste Collection
Authorities, as well as green waste deposited at North Farm
household waste recycling centre.
 
The extension is proposed to be for a
19 month term to align with the expiration of other organic waste
contracts and to allow for a commissioning activity to be
undertaken. The
extension period is for continuity of service to fulfil the
statutory duty of KCC as the Waste Disposal Authority operating
under the Environmental Protection Act 1990.
 
Reason for
the decision
KCC currently has in place a
contractual arrangement that is due to expire 31st August 2024, and
therefore is seeking an extension for the processing of organic
waste material currently collected by the  waste collection authorities in south west Kent
and Maidstone.
 
Background

·        
As the waste disposal authority, KCC has a statutory
responsibility for the processing of organic
waste collected by a number of borough and
district councils from households at the
kerbside, and from residents depositing green waste at household
waste recycling centres.

·        
KCC currently operates three contracts with Envar
Composting Ltd in West Malling for the processing
of green waste, one of which
is due to expire in August 2024.

·        
KCC had been in negotiations with the previous owner
of the Blaise composting facility to secure more favourable terms
for the extension. However, during these negotiations the facility
was sold to Envar Composting Ltd.

·        
Although, the contract allows for an extension up to
60 months, KCC is seeking an extension period of 19 months to align
to the expiration of other organic contracts and to pursue a full
procurement exercise across all organic (green waste)
contacts.
Options

1.   
Option 1 - Do nothing –
the current arrangements will cease and KCC will be
unable to accept the waste - this is not an option due to
KCC’s obligation to receive this material under waste
legislation and dispose of it as per the Environmental Protection
Act 1990.

 

2.   
Option 2 - Continue to accept the waste but utilise alternative disposal
options by using landfill or incineration - This is not an option
as there is a desire and obligation to move material up the waste
hierarchy where possible, and to meet recycling and landfill
diversion targets. Furthermore, to send this material to
incineration would be costly against a treatment option.

3.   
Option 3 - Commence a full procurement exercise before the end of the
contract – this is not an option as there is insufficient
time to undertake a commissioning activity due to the unforeseen
sale of the facility and subsequent cessation of
negotiations.

4.   
Option 4 - Extend for a period between 24 and 60 months (full extension) -
This is not discounted and has been considered as a proposal put
forward by the new owners; however, it is felt that to align all
organic contracts to one end date may produce economies of scale
when a full county re-procurement is undertaken.

5.   
Option 5 The recommended
option - Extend for 19 months (to April
2026) and undertake a commissioning activity. This is the preferred
option to enable the undertaking of market research and a
commissioning activity to secure a provider who can treat and
utilise the waste material meeting the circular economy desired
outcomes.  The procurement of the full
suite of organic waste contracts aims to deliver greater value for
money as the bids should be more competitive.

 
Preferred
Option

·        
Option 5 is the preferred option. The
Authority is seeking to extend with the incumbent for 19 months,
with a full commisioning activity undertaken that will benefit and
achieve the best outcomes for the Authority and Kent households,
and fulfil the statutory duty of KCC operating under the
Environmental Protection Act 1990.

The commission of this contract will meet
KCC’s Strategy – Framing Kent’s Future 2022
– 2026 one of the four key
priorities:

·        
Priority 3: Environmental step
change: Continue to work with our
commissioning partners to create the infrastructure and jobs that
enable us to reprocess waste materials and produce energy within
the county, in order to maintain a closed loop local
economy.

The commission of this contract will
meet KCC’s Budget Strategy – Securing
Kent’s Future by seeking best value via the
commissioning and procurement route consistent with  the prioritisation of the Council’s best
value duty.
 

Decision

As Cabinet Member for Environment, I agree
to:
 
(i) EXTEND the existing contract for the
receipt and processing of organic waste for up to 19 Months;
and
 
(ii)       DELEGATE authority
to the Director of Environment and Circular Economy, in
consultation with the Cabinet Member for Environment to take
relevant actions, including but not limited to, awarding,
finalising the terms of and entering into the relevant contracts or
other legal agreements, as necessary, to implement the
decision.