Report attached.

At the request of Members, the sub-committee received a performance update on the FCC Waste Contract. The report provided an overview of the procurement, award and first year of the contract’s operation.

The integrated waste, recycling and street cleansing contract was awarded in January 2022, and commenced in October 2023. 

The award of the integrated contract for Waste, Recycling and Street Cleansing was agreed by Cabinet in January 2022, with the successful bidder being Urbaser Ltd (now absorbed into FCC Environment). 

The Sub-Committee reviewed the following contractmonitoring process that is carried out in a number of different ways: 

·      Monthly report from FCC: The raw data is accessible by Council officers to enable it to be verified. 

·      Street Cleansing Monitoring: The contract monitoring officer aims for 50 inspections per month at present, to check that roads are being cleansed to standard.  Where they fall below standard, a rectification notice is raised via the management system.  The grading system utilised is nationally recognised, with examples shown in the Members’ Handbook.  Spot checks are also carried out on service requests such as fly-tipping reports to check that clearance has taken place. 

·      Supervisor monitoring: This includes checking on work reported as completed by crews, as well as checking that roads are within the standards set out, and directing crews accordingly if roads fall below standard. 

·      Joint monitoring: Havering’s Monitoring Officer and FCC’s supervisors regular carry out joint inspections together to look at cleansing standards, as well as crew behaviours and safe working practices.  This helps to ensure that both parties are working and monitoring to the same standards. 

·      Complaints monitoring: Carried out by Havering officers to identify and address any recurring issues. 

The contract team also deals with the general running of the contract, and administration of items such as container distribution.  For example, the team manages the siting and replacement of street litter bins, but works with the contractor, the council’s Enforcement team and ward councillors, as well as using littering data to understand hotspot areas before deciding on the locations.  Bins are removed if abused, for example where they have previously been set on fire.   

It was stated that there are three key groups that meet to review the contract: 

·      Contract Partnership Board: To meet quarterly, or less frequently if agreed, and act as a strategic forum for contract improvement and development.  Comprises of senior management from Havering and FCC. 

·      Contract Management Group: Meets monthly, and comprises Havering’s Waste and External Contracts Manager or Head of Service, Assistant Director, FCC’s Regional Manager and Senior Contract Manager.  Discusses monthly performance management report, service improvements, and any escalated issues. 

·      Contract Operations Group: This consists of Havering’s contract monitoring team and FCC’s operational managers.  It focuses on the day-to-day running of the contract, and any key matters arising. 

In response to the Social Value of the contract. It was stated that FCC has various values as part of their commitment to Havering, both in terms of the day-to-day running of the contract, and specific commitments around provision of support and funding. This includes an annual £10,000 Environment Fund to support tree planting and other initiatives, and a £30,000 Community Engagement Fund.  Havering officers are working with FCC to allocate these funds accordingly. 

An example of one of the social value commitments was to provide 100 litter pick packs per year to the council to help with keeping the borough clean. These are utilised in various volunteering initiatives. Members welcomed this initiative and asked that this be operated across the borough.

FCC have also engaged with a lot of volunteer and community groups as part of the commitment to volunteer hours and assist in the local borough. Apprenticeships are also currently in progress for HGV drivers and an administrator. The company are recruiting more people from the local area and utilising local businesses such as electricians, plumbers and builders which helps to support the local economy.  

The Sub-Committee was informed of anticipated service changes and future contractdevelopments.  The main anticipated change within the current contract is the introduction of separate weekly household food waste collections; a requirement of the Environment Act 2021. 

Members noted that FCC have modelled for their expected service delivery, based on the number and spread of households, as well as expected volumes of waste to be collected.  The service is currently in its planning stages, with the rollout to commence from October 2025. 

There are further opportunities for continued service developments throughout the life of the contract, with an optional 8-year extension from 2031. An annual contract review will help to identify opportunities for shared efficiency savings as well as technological innovation and improved performance. 

The Sub-Committee received satisfactory responses to its questions. Members noted that the current cost of the integrated waste, recycling and street cleansing contract with FCC was detailed in the report.  Officers are working with FCC to establish the expected uplift for the coming year, taking into account inflation, national average earnings, and the increase in properties.  It was stated that this process will be reviewed annually via an agreed metric, and checked by officers.

The Sub-Committee noted the report.