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					EXECUTIVE DECISION RECORDING SYSTEM :
REFERENCE NUMBER 06050097


CABINET                                                    5 JUNE 2006


CONFIRMATION OF DELEGATED DECISION TO LET A CONTRACT
FOR THE COLLECTION OF BULKY HOUSEHOLD WASTE


REPORT OF EXECUTIVE DIRECTOR, ENVIRONMENTAL SERVICES


1.0    PURPOSE OF REPORT

1.1    To seek confirmation of a delegated decision to let a contract for
       the collection of bulky household waste

2.0    EXECUTIVE SUMMARY

2.1    On 21 December 2005 acting under delegated powers (EDRS
       Reference 5120093) the Executive Director, Environmental
       Services resolved to let the contract to FRC (Furniture Resource
       Centre).

2.2    Since the decision to let the contract was made, circumstances
       have arisen which led to a review of the information upon which
       the decision was based. This report seeks to notify Cabinet of the
       circumstances and seek to confirm the decision to enable the
       bulky household collection service to be delivered.

3.0    RECOMMENDATION

3.1    To confirm the delegated decision of the Executive Director,
       Environmental Services (EDRS Reference 5120093) to let a
       contract for the collection of bulky household waste to FRC.




h:\common\LB>C\0000224                                         Page No 1
CONFIRMATION OF DELEGATED DECISION TO LET A CONTRACT
FOR THE COLLECTION OF BULKY HOUSEHOLD WASTE


4.0    BACKGROUND

4.1    For some time the Council has been considering the method of
       collecting bulky household waste from residents in order to find a
       more efficient arrangement that also encourages and succeeds in
       increasing the amount of waste recycled and re-used.

4.2    Investigations have been made over a period of more than a year
       to establish such possibilities and evidence suggested that there
       were organisations who could provide such a service by
       developing a social enterprise that would utilise people who are
       currently unemployed, training them and preparing them for
       continued full-time employment.        On this basis, a bid for
       Neighbourhood Renewal Fund (NRF) and New Deal for
       Communities (NDC) monies was submitted and approved for £70k
       in total over the two organisations for a two year period (05/06 &
       06/07) for the creation and development of a social enterprise.

4.3    A Short Term Business Plan (STBP) was developed for the Waste
       Services Section that covered a number of initiatives that would
       enable the performance of the group to be transformed and one of
       these initiatives was to source an external provider to provide the
       bulky household collection service. The STBP was approved on
       August 5th (ERDS no. 5080023).

4.4    In advance of the approval of the STBP, a procurement process
       was commenced that started with an advertisement Prior
       Information Notice (PIN) in the Official Journal of the European
       Union (OJEU). In response to this notice several companies
       recorded an interest to participate. A letter seeking clarification
       was sent to all companies who had recorded an interest seeking
       outline proposals and giving them a deadline for a response.

4.5    Only one company responded within the timescale with a
       willingness to provide a service that fulfilled the criteria sought of
       improving efficiency, increasing recycling and developing a social
       enterprise.




h:\common\LB>C\0000224                                            Page No 2
4.6    The response was on the understanding that the Council sought to
       develop a social enterprise in the borough and to improve rates for
       re-use and recycling of waste. It is very likely that the provision of
       a service that simply collected and disposed of household waste to
       landfill could be delivered cheaper. However, the Council has a
       policy commitment to maximise employment opportunities in the
       borough and to also reduce the amount of waste that goes to
       landfill through recycling (there are tough targets for the borough
       and potential penalties for the Council in future years of not
       meeting them).

4.7    The Council has the powers of well-being under the Local
       Government Act 2000 to provide any service that it feels enables it
       to deliver its Community Strategy. Increasing employment and
       recycling rates are 2 of the borough’s priorities. The arrangement
       is also in keeping with Best Value principles that the Council also
       has a duty to comply with.

4.8    Negotiations were entered into with FRC and agreement reached
       to provide the service required (Bulky Bob’s as provided in
       Liverpool) for 5 years. The arrangements require utilising the
       current budget of £350k per annum for bulky collections allocated
       for the service (although due to the demand actual costs are
       estimated to be over £400k per annum) and an extra £70k per
       annum to be sourced from external funds.

4.9    Following the negotiations, a report outlining the decision to award
       the contract was approved in principle as a delegated item on 21
       December 2005 (EDRS 5120093). The report certified that a
       contract notice had been issued in accordance with the public
       procurement regulations which were in existence at that time. It
       has now transpired that this was not the case.

4.10 Whilst the service to be provided constitutes a part B service under
     the Public Services Contracts Regulations 1993, which means that
     the contract must only comply with limited parts of the Regulations,
     due to the emergence of case law from the European Courts of
     Justice (ECJ) which has held that the principles of equal treatment,
     non-discrimination and transparency, are to be interpreted as
     precluding the award of a contract, without same being subject to a
     form of advertisement appropriate to the value of the contract to be
     awarded.




h:\common\LB>C\0000224                                            Page No 3
4.11 Since the decision was taken to let the contract and the date upon
     which knowledge of the procedural flaw became known, officers
     from the Council and FRC have been working together in order
     that the new service can be introduced at the earliest opportunity.
     Both parties have committed time to delivering the project and
     FRC significant expenditure in preparation of the contract.

5.0    OPTIONS/ALTERNATIVES

5.1    To confirm the delegated decision of the Executive Director,
       Environmental Services (EDRS Reference 5120093) to let a
       contract for the collection of bulky household waste.

5.2    To re-commence the procurement process for the provision of a
       bulky household collection service. Great effort has gone in to
       prepare the ground for the delivery of the new arrangements and
       FRC are poised to do so at very short notice. They have
       demonstrated much commitment and risk in developing their
       organisation to introduce a service for Oldham borough at short
       notice and have already appointed staff in accordance with the
       ethics of a social enterprise which include:

              Increasing the number of adults with the skills required for
               full employability and progression to higher levels of training
               through improving basic skills and employability skills.

              To provide jobs to long-term unemployed residents who
               possess low skills levels and who live in the local (Oldham)
               area and particularly women, people from BME communities
               and other disadvantaged groups as identified.

5.3 FRC have done this in anticipation of an imminent start. Failure to
    progress with the contract would threaten the employment of about
    7 local people who without it, would struggle to find work.

6.0    PREFERRED OPTION

6.1    The preferred option is to confirm the delegated decision of the
       Executive Director, Environmental Services (EDRS Reference
       5120093) to let a contract for the collection of bulky household
       waste.




h:\common\LB>C\0000224                                              Page No 4
7.0    CONSULTATION

7.1    Trade Unions and staff have been kept up to date with progress on
       the procurement arrangements on an ongoing basis. Contact
       Centre management have been consulted on the changes as the
       allocation of collections will change.

7.2    The Human Resources Group of the Environmental Services
       Department have been informed of the proposed change in service
       provider.

8.0    CORPORATE HUMAN RESOURCES COMMENTS

8.1    There are eight operatives working on the bulky household
       collection service currently operated by Oldham MBC. These
       members of staff will be transferred to other duties, in line with
       their job descriptions, within the Waste Management service prior
       to the start of the new contract with Bulky Bobs. (JW/KW)

9.0    LEGAL SERVICES’ COMMENTS

9.1    Legal Services have been involved in the production of this report
       and concur with its recommendations. (DH)

10.0 FINANCIAL IMPLICATIONS and TREASURER’S COMMENTS

10.1 Proposals to engage FRC will be cost neutral compared to the
     budget in the first two years (2006/7 and 2007/8) due to the
     injection of external funding. In 2008/9 the net additional cost of
     £70,000 will need to be met by anticipated reductions in the levy
     from the Greater Manchester Waste Disposal Authority due to
     reduced levels of refuse being handled by them. The up-dated
     STBP sets out full details of recovery (JB)




h:\common\LB>C\0000224                                         Page No 5
11.0 IT IMPLICATIONS

12.1 FRC would require access to OMBC's Mayrise system from their
     premises. For a cost of £750 per annum Mayrise would provide a
     licence which would limit FRC's access to bulky household waste
     data only, access to other parts of the Mayrise system would be
     denied. ICT would need to consider the security implications of
     allowing FRC access to the system, but are satisfied that access
     could be provided either by dial-up connection or secure
     broadband for a cost of less than £1000 per annum. ICT would
     reserve the right to source the PC on which access was to be
     provided. It is felt that a data sharing protocol between OMBC and
     FRC would be essential (TS).

12.0 PROPERTY IMPLICATIONS

12.1 The partner will source all accommodation required and the costs
     are included in the contract rates. The transfer of the bulky waste
     collection service to an external provider removes the need to
     store collected white goods at Moorhey Street depot. The area
     previously used for this can be converted to enable a paper
     bulking facility to be introduced by the Council. (DM)

13.0 ENVIRONMENTAL AND HEALTH AND SAFETY IMPLICATIONS

13.1 The arrangements will significantly increase the amount of bulky
     household waste recycled leading to improved environmental
     outcomes.

14.0 COMMUNITY COHESION IMPLICATIONS (INCLUDING CRIME
     AND DISORDER IMPLICATIONS IN ACCORDANCE WITH
     SECTION 17 OF THE ACT)

14.1 The service will be available to all residents of the Borough.

15.0 FORWARD PLAN REFERENCE

15.1 ES-23-06

16.0 SUPPORTING PAPERS

16.1 Supporting papers are kept by Rupert Casey on 4441.




h:\common\LB>C\0000224                                          Page No 6
The following is a list of the background papers on which this report is based in
accordance with the requirements of Section 100(1) of the Local Government Act
1972. It does not include documents which would disclose exempt or confidential
information as defined by that Act.

File Ref - Records held at Moorhey Street Depot

Any Person wishing to inspect copies of the above background papers should
contact:-

Mark Odell on 4323




h:\common\LB>C\0000224                                                Page No 7

				
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