The Sustainable Communities Overview and Scrutiny Panel met on Monday 11 November 2024 to discuss the proposed new recycling and waste collection services contract. The panel reviewed the details of the contract, which is set to commence on 1 April 2025, and considered its implications for residents and the council's environmental targets.

Recycling and Waste Collection Services

The primary focus of the meeting was the proposed award of a new contract for recycling and waste collection services. This contract, which is scheduled to begin on 1 April 2025, will run for an initial period of eight years, with the option to extend for a further two periods of eight years, totalling 24 years. The decision on awarding the contract is scheduled to go to the Cabinet on 16 December 2024.

Kelly Williams, Head of Waste and Street Environment, and Dan Jones, Executive Director for Environment, Civic Pride and Climate, presented the report on the new contract. They explained that the current contract, procured through the South London Waste Partnership (SLWP), expires in March 2025. Cabinet had previously decided not to extend this contract, opting instead to decouple street cleansing services from waste collections, bringing street cleansing in-house and reprocuring the waste collection services.

The new contract aims to future-proof waste collection services in preparation for legislative changes, such as the Extended Producer Responsibility (EPR), Simpler Recycling, and the Deposit Return Scheme (DRS). It also underpins the council's 2025 vision to become an exemplary borough in adapting to climate change, consuming fewer resources, and working towards a 65% recycling rate of Local Authority Collected Waste by 2030, an increase from the current rate of 40%.

Key changes and improvements outlined in the new service specification include:

• No major changes or disruption for residents regarding waste collection frequency.
• Operatives will be required to return containers to their point of storage and close gates, addressing a key resident concern.
• Larger estates will receive more frequent collections to manage capacity issues.
• Expansion of the food waste collection service for flats above shops.
• Tougher Key Performance Indicators (KPIs) for missed collections, with a target of 77 missed collections per 100,000, an improvement from the previous target of 80.
• Commitment to an audit of all estates by the contractor to ensure adequate capacity and appropriate bin locations with clear signage.
• Consideration of alternatives to the current diesel fleet, including electric vehicles or biofuels like HVO, aligning with Merton's decarbonisation strategy. This will be subject to a further report to Cabinet in 2025.
• A new contract management team comprising a contract manager and contract officer dedicated to quality control.
• The transfer of the gully cleaning service to FM Conway by way of a contract variation.
• Progressing Commercial Waste Option 2 for commercial waste services.

The procurement process involved a Competitive Procedure with Negotiation (CPN), which allowed for dialogue and negotiation with bidders. Only one compliant bid was received at the final tender stage. An independent assessment confirmed that the bid provided best value and was within the authority's financial parameters.

The Equalities Impact Assessment did not identify any potential for discrimination or negative impact on any protected characteristics, as the service is statutory and provided to all residents. The council also highlighted its commitment to Social Value, with 5% of the evaluation weighted towards social value commitments relating to jobs, growth, social outcomes, and environmental well-being.

The meeting also touched upon the governance structure for the new contract, which will involve several boards, including a Strategic Partnership Board and a Service Operations Board, to ensure robust contract management and performance monitoring.

The panel was informed that the decision to award the contract would be made by the Cabinet on 16 December 2024. The mobilisation of the new arrangements will commence following the contract award, with the new contract commencing on 1 April 2025.