Agenda item

ENVIRONMENT SERVICES COMMISSIONING PROGRAMME UPDATE

Minutes:

Report ES17088

 

On 8th February 2017 the Executive agreed the lotting structure and procurement route for the main Environmental Services contracts:

 

Competitive Procedure with Negotiations

 

Lot 1 - Waste Disposal

Lot 2 - Waste Collection

Lot 3 - Street Environment

Lot 4 - Parks & Grounds Maintenance

 

Restricted Procedure

 

Lot 5 - Arboriculture

Lot 6 – Highways Major Works, Street Lighting and Professional Services

Lot 7 – Highways Minor Reactive Works and Winter Services.

 

The procurement timetable assumed that tender documents for Lots1-4 would be advertised in April 2017 with Lots 5-7 in January 2018. However, the documentation had not been completed to a point where Notices can be issued and Report ES17088 outlined reasons for delay, reviewed the lotting strategy and considered the impact of the proposed Trust at Crystal Palace Park on Lot 4 (Parks Management and Grounds Maintenance contract). The report also outlined the proposed strategy for depots in the Borough, some of which would be retained for environmental services, with others potentially released for capital receipts. The report also considered any capital investment required at the sites. 

 

A new timetable had been produced for issuing tender documents for Lots 1 -4 to meet the April 2019 award date. In view of the Mayor of London’s requirement for waste collection/disposal specifications to complement waste policies in the Mayor’s draft Environment Strategy (including a vision for London being a zero waste city with 65% of municipal waste recycled), the earliest date on which Notices could be issued is 20th December 2019. Tenders would then be returned mid-April with the first round of negotiations to be completed in six weeks (although consultation on any changed service levels could impact the timetable). On completing early negotiations satisfactorily, a final bid would be received in June 2017 with sufficient time then allowed to evaluate and recommend to Members. In the six month period  prior to 1st April 2019 both parties would need to complete due diligence; the service providers would also need to make arrangements for contract mobilisation.

 

With tendering for Lot 5 (Arboriculture Services) completed in sufficient time, a three-month lead-in period would provide for contract mobilisation prior to April 2019.

 

Lots 6 to 7 – comprising Major and Minor Highways Works – would be tendered for an August 2018 start date rather than April 2019. Extending current contracts for the services beyond their current term to align with an April 2019 start could potentially expose the Council to external challenge, partly due to additional Capital works included, as a modification, to the existing contract. With a two-month contract mobilisation, award would need to be in place by May 2018. With supporting officers already fully utilised on Lots 1- 4, external consultants would need to prepare contract documentation (funded from existing resources).

 

If value for money, other areas of service delivery could be later included in the contract lots, the OJEU Notice including  provision for this e.g. CCTV, Pest Control, Stray and Abandoned Dogs, and Neighbourhood Officers.

 

With Crystal Palace Park being potentially managed by a Trust, a separate price would be obtained for the service.

 

It was also necessary to consider depot assets to offer to potential bidders for environmental services such as waste collection, disposal, fleet use and office use and whether any depots could be released. Accordingly, Cushman and Wakefield reviewed the 19 depots/sites held by the Council, proposing their number reduce to ten (including the two central depots), with remaining sites suggested for disposal, potentially raising a capital receipt in the region of £9.45m subject to planning permission (less the cost of realisation – environmental remediation, abnormal construction and planning).

 

A procurement timetable was tabled and circulated to Members prior to the meeting. It was confirmed that the Environmental Services Commissioning Board provided specific oversight for Environment Commissioning (the Board meeting weekly) and a Corporate Commissioning Board, chaired by the Director of Commissioning, provided high level oversight of commissioning within the Council. Should adherence to the procurement timetable not be possible at any point, the Environmental Services Commissioning Board would report to the Corporate Commissioning Board and then to Executive via PDS.

 

Support for environment commissioning had been identified and included in budget. Achieving the procurement on time would be particularly dependent on the number of bids received.

 

Confirmation was sought that the estimated capital receipt from released deports amounted to a some £9.45m. It was agreed that further information would be obtained outside the meeting and circulated to Committee Members. The potential Gross Capital Receipt of £3.5m for the site at Denbarn, High Elms Country Park was particularly questioned. The site is in green belt land with planning permission necessary for any conversion to residential on the site and an additional two houses. The potential £2m Gross Capital Receipt - subject to planning permission - for the Beaverwood Depot was also highlighted being in the green belt and also subject to Conservation Areas policy. Rather than dispose of some of the other sites for a nominal amount It was suggested they might be useful to partner organisations. Should a contractor/provider wish to use any redundant properties, it was confirmed that terms could be agreed for their use subject to negotiation.

 

RESOLVED that the Executive be recommended to:

 

(1)  note and agree the proposed strategy for depots within the borough as set out at section 4 of Report ES17088; and

 

(2)  note and comment on the revised timescale for issuing the Notices for the tendering of Lots 1 -7 as set out at Section 3 of Report ES17088.

 

Supporting documents: