Decision Maker: Executive

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: November 14, 2024

Purpose: To consider and approve operations delivery for Chelveston Operating Centre.

Content: RESOLVED   KEY DECISION   That the Executive:   a)      Approved the recommendation to transfer services currently provided by the external provider in respect of waste collection and cleansing, to an in-house operating model.   b)      Delegated authority to the Executive Director of Place and Economy in consultation with the Executive Member for Highways, Travel and Assets to make decisions required to undertake activities relating to the project to transfer the service in-house.   c)      Included as part of the Council’s MTFP and budget for 2025/26 additional funding for the increased costs relating to the transfer back to an in-house model as set out in the report.     Reason for Recommendations – This option fulfils the Council’s ambition to have a consistent waste collection and street-cleaning service delivered through an in-house model. It will enable the Council to seek internal efficiencies between the teams to assist with offsetting the increased demand, and cost, for delivering the services to a growing population.   Alternative Options Considered –   Extend the contract for a period up to 7 years (at any intervals mutually agreed with the contractor): The provider has indicated that they would be interested in any extension between 2-7 years. This would result in having one operating area delivered through a contracted model whilst all other areas are delivered through an in-house service. In terms of implementation, this option requires the least resource to deliver and presents the fewest operational risks to the Council as the service would be uninterrupted and continue as currently. Most of the existing fleet could be run for a further two years, with increased maintenance costs, and the procurement of some specialist vehicles for food waste and street cleaning. Any longer extension would require new fleet for waste collections. The contractor would be willing to amend the routes to blend them with NNC’s other operating centres to maximise the efficiency across the area e.g. they could take on some areas in the Wellingborough area and give up some to the Corby area.   Re-procure for a new external supplier: This option is not possible to deliver within the required timescale. A short extension of two years of the existing contract would enable the Council to carry out this exercise across all service areas to procure a single provider. This would enable the Council to determine whether the service can be provided more cost effectively by an external provider than the in-house service. It would also be possible to undertake this option in the future, once all service areas were operating within the in-house model.   Transfer the service to new, wholly owned Council company: This option is not possible to deliver within the required timescale. A short extension of two years of the existing contract would enable the Council to assess this option, and if advantageous, look to implement it across all its service areas. It would also be possible to undertake this option in the future, once all service areas were operating within the in-house model.