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Update on the Joint Waste Contract and Optimisation of the Round Schedules
Cllr Hayley Eachus, Cabinet Member for Regulatory Services and the Environment
Report to Overview and Scrutiny Committee
Ward(s): All
Key Decision: No
Appendix 1: Contract Management Structure
Appendix 2: Flow diagram of complaints process for the waste service
Appendix 3: Communications plan for the route optimisation project.
Papers relied on:
Joint Waste and Recycling Tender, Cabinet report, Sept 2017
Tendering of the Joint Waste and Recycling Contract, Cabinet report, March 2017
Management of the Joint Waste Contract 2018 onwards, Cabinet report, March 2016
Options for increasing the council’s recycling rate, Cabinet report, January 2015
Foreword - Foreword - Cllr Hayley Eachus, Cabinet Member for Regulatory Services and the Environment
As the Cabinet Member with responsibility for the delivery of waste and recycling
services in Basingstoke and Deane, I am pleased to be able to present this report on
the joint waste contract and optimisation of the round schedules.
Since the commencement of the contract with Serco, just over 12 months ago, the
service has gone through a period of significant change, including the introduction of
a new software management system and more recently with the reorganisation of
the round schedules, and changes to working practices. These changes were
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necessary to ensure that the council delivers a reliable and efficient service to its
residents.
The crews working on the Basingstoke and Deane element of the contract empty
620,000 waste and recycling containers per month, and optimisation of the rounds
involved changing all of the crew routes, as well as changing the collection days for
55,000 properties. Whilst in the majority of cases implementation of these changes
went smoothly, there were some issues, most notably with some of the garden waste
collections. Where issues have arisen, the council has worked closely with Serco to
identify the reasons for these issues and implement solutions.
Now that the round optimisation work has been completed, I am looking forward to
continued service improvement and working in partnership with Serco to deliver new
initiatives with the aim of reducing the contamination of communal bins, and
increasing the councils recycling rate.
The Committee is asked to note the contents of this report.
Background, corporate objectives and priorities
The purpose of this report is to brief members on the joint waste service and changes to the round schedules, which was subject to a major reorganisation of the waste collection rounds during the summer of 2019.
The contract, which is operated by Serco, commenced on 1 October 2018 and will end on 30 September 2026, the service employs 128 staff and utilises 37 vehicles across both districts emptying approximately 43000 waste and recycling containers per day.
The appointment of Serco to operate the contract was confirmed following a rigorous selection process. Tenders were invited from six contractors who had successfully passed the first stage selection process. Following an initial tender evaluation three preferred bidders were then subject to a period of detailed negotiation before final submissions were received and evaluated. Evaluation was based on the Most Economically Advantageous Tender (MEAT) representing weightings of 50% quality / 50% price criteria.
Prior to October 2018 Veolia had delivered the joint contract since 2011, and before this Veolia had operated the Basingstoke element of the contract, with the Hart service being delivered in house. Whilst discussions were held with Veolia about the possible extension of the contract after 2018, it was not possible to reach agreement on the contract cost. Service performance was a substantial problem in the Basingstoke area in the months leading up to the contract transfer to Serco.
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Delivery of a reliable waste service will contribute to achievement of the Council’s corporate plan key objective of improving residents’ quality of life and creating an organisation capable of delivering change.
Glossary of terms
Term Definition
Joint Governance Group
Client Management Group for the Joint Waste Contract, membership of group includes, Cabinet Portfolio Holders from Hart and Basingstoke and Deane, Hart Chief Executive, Executive Director of Borough Services, Head of Environment and Technical Services, Waste and Recycling Manager.
Partnership Board All members of the Joint Governance Group plus senior Serco Managers.
Main considerations
1 Executive summary
1.1 The purpose of this report is to update members on the joint waste contract and changes to the round schedules that were implemented in the summer of 2019.
1.2 The report provides an overview of the procurement process, the work undertaken following the appointment of Serco and prior to contract commencement, information on management and performance of the contract, the need for and work undertaken to optimise the round structure. The report also sets out the expectations for the future service delivery and the benefits that will be delivered. This report will be supported at committee with a power point presentation.
2 Contract Procurement
2.1 Work on the tendering of the joint waste contract commenced in 2015 when a procurement team was setup. Representation on the team included key officers from both the Basingstoke and Deane and Hart. The first stage of the procurement involved reviewing options for delivery of the service together with opportunities for extending the existing shared working arrangement to include other neighbouring authorities. Once the continuation of the current shared working arrangement had been confirmed then the specification for the future service delivery was agreed and soft market testing carried out.
2.2 Eight completed selection questionnaires were received in response to the published contract notice inviting expressions of interest and, following a short listing process tenders were invited from six contractors. An initial tender evaluation was carried out in the summer of 2017 and final specification for the service was confirmed. A second short listing process
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was then carried out, with three contractors being invited to attend a series of negotiation meetings, following which the shortlisted contractors were asked to submit final tenders for the contract. These were evaluated in January and the contract award to Serco confirmed in February 2018.
2.3 During the procurement process all contractors were asked to submit a price for a potential option to fund the provision of vehicle fleet using a council loan.. The life cost of this arrangement was then evaluated against the contract cost without the loan facility.
2.4 On balance the provision of the loan was in the council’s interest and it was therefore agreed that Serco would be loaned just over £5m to purchase new vehicles to be solely used on this contract. The loan is secured against the vehicles and is also subject to a parent company guarantee.
2.5 The loan is interest free and the principal amount is repaid monthly via a deduction from the contractors invoice, so providing the council with a return on its investment through reduced annual contract costs.
2.6 The loan agreement will see the full amount paid back over the course of the eight year contract, leaving the vehicles in Serco’s ownership at the end of the contract.
3 Mobilisation of the contract
3.1 Following the contract award work commenced on mobilisation of the contract. This involved the procurement of 37 new vehicles, the transfer of 109 permanent staff from Veolia to Serco, together with the implementation of Whitespace (a new software system) which provides real time communication between the contact centre and the crews.
4 Service delivery model
4.1 Serco’s tender submission promised a significant number of service enhancements. The most notable of these are listed below:
New governance arrangements that will promote improved collaborative working.
Enhanced contract management arrangements that will deliver greater efficiencies from the joint contract.
Stronger performance targets and improved performance monitoring is included in the new contract.
Improved customer service and better IT systems with real time information to deliver improved customer service
A new fleet of vehicles will be provided which includes improved narrow access vehicles
Inclusion of bring sites, bulky and clinical waste within the contract.
A commitment to reduce carbon emissions from the waste collection service.
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Promotion of recycling and reduction of contamination with the contractor allocating a staff resource to assist with the promotion of recycling and reducing contamination.
Four resident satisfaction surveys per annum.
The contractor being responsible for the purchase and storage of bins.
4.2 Delivery of some of the key benefits including reduction of C02 emissions, improved service performance, and delivery of the contract within the tendered price required the collection rounds across the contract, but particularly in Basingstoke and Deane to be optimised.
5 Management of the Joint Waste Contract
5.1 Prior to commencement of the joint waste contract in 2011 it was agreed that Basingstoke and Deane and Hart councils would enter into an inter authority agreement with Hart being the administering authority responsible for management of the contract. Appendix 1 shows the management structure currently being operated for the joint waste contract. In summary Hart are responsible for overseeing delivery and managing performance of the joint contract.
6 Performance of the Waste and Recycling Service
6.1 The performance of the Basingstoke and Deane waste and recycling service is monitored through the following two key areas:
1. recycling performance
2. service performance
Achieving high levels of performance in both areas is a key priority for the service.
6.2 The annual recycling rate for Basingstoke and Deane in 2018/19 was 28.51%, whilst the rate for the first quarter of 19/20 was 30.21%, this is the first time in the council’s history that its recycling rate has exceeded 30%.
6.3 The graph below compares Basingstoke and Deane’s recycling rate since October 2018 with that recorded during the previous 12 months. It can be seen that during this period recycling performance has increased, one of the reasons for this being the increased take up of the garden waste service, and the introduction of garden waste bins as part of the Serco contract.
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6.4 Information on current contract performance will be presented to members
alongside this report.
6.5 Serco empty approximately 31,000 bins or containers per day on the Basingstoke and Deane element of the contract. In the majority of cases these collections are completed without incident. However, the nature of the service means that with normal day to day operations, there will always be some missed bins, and the contingency plans that are in place cannot cater for all eventualities. Achieving a 99.5% collection rate will still result in 155 missed collections per day. The reasons why a bin may not be emptied can include genuine error, restricted or blocked access or the bin being deliberately left as the contents have been contaminated. The contract includes the following service standard for the clearance of missed bins:
Missed collections reported before 12 noon are cleared on the same day.
Missed collections reported after 12 noon are cleared by 12 noon the following day.
6.6 Quarterly resident surveys are a new initiative introduced by Serco as part of their contract proposal. Four of these have been carried out since October 2018, and these show that resident satisfaction levels for the residual waste, recycling and glass collections elements of the service have been consistently maintained in excess of 80%.
7 Implementation of Round Optimisation
7.1 It had long been appreciated that the existing round structure, particularly on the Basingstoke and Deane element of the contract was inefficient and uneconomical, and that there was a need to optimise the round structures. Serco’s tender submission therefore proposed that the round structure was optimised to ensure delivery of a reliable, efficient service, which minimised carbon emissions and provided capacity to accommodate future housing growth. The new round structure would also provide a better working
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environment for staff as workloads would be harmonised and manageable for all crews. The proposal was to organise the routes on zonal arrangement, so making it easier for the work to be allocated between crews, and for crews to support each other when problems arose.
7.2 Serco’s proposal for the garden waste service was to combine resources on the Basingstoke and Deane and Hart elements of the contract, assigning the crews to work one week in the Hart area and the other week in the Basingstoke and Deane area.
7.3 Council officers and Serco commenced discussions about design of the new round structure in the spring of 2019. Design and implementation of the new route structure was a large scale and complicated project that needed careful planning. Serco therefore commissioned external consultants and seconded specialist staff from other areas of their organisation to assist with the delivery.
7.4 At an early stage it was agreed that the joint governance group would have a veto on implementation of the new routes, and approval would only be given if there was a high level of confidence that the new structure would work effectively. The joint governance group met to consider the proposals on a number of occasions before approval to implement the changes on 22 July 2019 was finally given.
7.5 The proposals, once agreed required a change to all round structures, resulting in all of the Basingstoke and Deane crews being allocated to different routes, and changes to the days of collection for 55,000 properties in the Basingstoke area. Around 8500 properties in the Hart district also required a day change.
7.6 The project was considered to be an eight to ten week programme of work. Weeks one and two were seen as the go-live period when there was a period of dual running with those properties which, as a result of the changes, were having to wait a long time between collections, receiving an additional collection. The routes were closely monitored during the first month with adjustments being made as required to ensure they were manageable for the crews.
7.7 It was appreciated that effective communication of the proposed changes to residents would be fundamental if the changes were going to be a success. An extensive communications plan was put in place, which included both printed and social media. As part of this every single household in Basingstoke and Deane borough received a letter informing them of the changes. A copy of the agreed communication plan for the changes is attached at Appendix 3.
7.8 Whilst the project was subject to careful planning it was accepted that issues would arise and that the new working arrangements would take time to stabilise.
8 Issues Encountered and Lessons Learnt.
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8.1 Implementation of the new routes on the 22 July 2019 generally went smoothly, and where bins were missed then on the majority of occasions these were cleared by the end of the week. Whilst most collections were successfully completed, the following issues were encountered:
Additional collections had been planned for those properties that as a result of the changes were going to have a long gap between collections. Unfortunately, due to a combination of staff absences and vehicle breakdowns it was not possible to complete all of these planned additional collections on the scheduled day.
During the first few weeks of operation, problems were encountered on two of the four garden waste routes in the Basingstoke and Deane area. This meant that initially these routes were often unable to complete their allocated work on the scheduled day. This was addressed through reorganisation and provision of additional resources and, as a consequence, the reliability of the garden waste service has improved significantly, with all rounds now completing.
One of the consequences of route optimisation was that all the crews needed to learn new routes, and to utilise whitespace in the organisation of their work. This took time and required a change to established working practices.
Despite a comprehensive communication plan there where some areas where residents followed previous behaviors rather than the planned schedule.
8.2 A large amount of effort was put into ensuring that the data used to plan the new routes was accurate. Whilst there is confidence that the data now being used has a high level of accuracy, the changes have highlighted where gaps in property details and bin store locations still exist. These gaps are being addressed and the data corrected as and when they are identified.
8.3 Whilst all routes are now regularly completing on a daily basis, isolated issues are still being encountered. To address this a key issues form is being used on the Whitespace system to record locations where repeat problems arise. Collections from these properties are then monitored closely by Serco’s supervisors and the joint client team until the issue has been resolved.
8.4 Serco have allocated additional vehicles and staff to the contract to ensure completion of the new rounds. This has included the secondment of staff (both crews and management) from other contracts, the provision of hire vehicles to support the scheduled rounds, and the allocation of staff working overtime at weekends to clear any outstanding missed collections. Vehicle reliability has also been improved with the completion of a purpose-built workshop at the Wade Road depot.
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8.5 Nationally it is recognised that collections from flatted developments are often more problematic that kerbside collections. The reasons for this include:
transient populations,
unpleasant or poorly designed bin stores,
lack of understanding as to what materials should go in which bin
lack of ownership of the stores.
A project to address this in Basingstoke and Deane is currently being planned. The project will involve the client team working with the management companies as well as Serco to provide better information to residents to ensure we reduce the wrong materials going into the recycling bins and will involve improved signage at the sites on the walls and on the bins by the joint waste client team
8.6 Whilst it is not anticipated that further round changes will be required within the contract period, lessons have been learnt which will benefit the continuous improvement of the service, which include:
the importance of continuous and refresher training on the use of tablets for all of the crews;
the improved transfer of local knowledge between crews prior to the implementation of any changes;
the continued reinforcement of the message that missed bins need to be reported via either the contact centre or the website.
8.7 One of the outcomes of joint working on the round changes is improved communications and working relationships between the joint waste client team and Serco.
9 Expectations for future service delivery
9.1 Since the end of September service performance has stabilised and the number of complaints received has reduced. Work will now continue to ensure that service performance is maintained within agreed targets, and in the event that this is not the case then the performance regime will be applied in accordance with the contract.
9.2 The round optimisation provides a stable and efficient collection service. This therefore allows Serco to deliver the many improvements included in the contract over the coming 12 months, which include:
Improved collections and communications to flats, houses of multiple occupation and communal areas. This will involve the provision of improved signage in bin stores and recycling promotion to residents.
The review of bring site facilities across the borough.
Improved mapping of contamination on Whitespace to allow targeted communication in hotspot areas.
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Utilisation of Whitespace to provide improved real time communication between the crews, client team and contact centre.
Improved access through the council’s website for the reporting of missed bins.
The introduction of push notifications that will alert residents in the event of service disruptions.
The introduction of a Christmas tree recycling service for all residents who have subscribed to the garden waste service.
Approval of a carbon management plan for the contract, and the delivery of fully electric vehicles for Serco’s supervisors.
Continued growth of the garden waste service.
9.3 Future changes in the specification for the service are anticipated as a consequence of legislative changes arising from the implementation of the governments waste and resources strategy and potential changes to Hampshire's recycling infrastructure.
10 Management of complaints
10.1 An effective complaints management system is important when identifying and resolving problems quickly, and implementing lessons learnt. This information can be used to drive continuous service improvement.
10.2 A flow chart of the council's complaints process for the waste service is attached at Appendix 2.
10.3 To ensure that complaints are managed effectively it is important that all complaints or missed bins are reported through the contact centre or website, this will ensure that Serco are notified of missed collections immediately. It also ensures that each individual case is identified to provide a solution to the resident, allows for trending across the service on performance issues and ensures all staff from crews, the contact centre, the joint waste client team and contract managers have a single unified view of the issues in real time.
10.4 Utilising emails to notify individual officers of an issue means this level of visibility is missing from the process and may result in issues taking longer to resolve, trends not being identified and missed opportunity for ongoing service improvement.
Corporate implications
11 Legal implications
11.1 None this report is for information only.
12 Financial implications
12.1 None this report is for information only.
13 Risk management
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13.1 A risk assessment was undertaken prior to the implementation of the round changes and used to inform the project plan.
14 Equalities implications
14.1 An Equality Impact Assessment was undertaken prior to finalising the specification for the Serco contract. The outcome of this assessment was previously reported to Cabinet in March 2017.
15 Consultation and communication
15.1 The communications plan for round changes is attached at Appendix 4.
16 HR implications
16.1 None this report is for information only.
17 Conclusion
The waste and recycling service has undergone a period of significant change during the first 12 months of the contract with Serco. This change was required to ensure the delivery of an efficient and resilient service for the future and would have been necessary regardless of the service provider. Changes of this magnitude were always going to cause service disruption, and, for this reason, a high level of management intervention was built into the project plan to ensure mechanisms were in place to respond swiftly to issues, identifying causes, find solutions and implement resolutions. However, some of these issues were repeated and where this occurred the lessons learnt have been used to improve performance.
The outcome of the round optimisation project is that Basingstoke and Deane now has a more reliable and resilient waste collection service that is better prepared to face future demands.
At the September meeting of this committee it was resolved that the committee require recommendation of a suitable independent body to review the current waste and recycling contract, and for this to be confirmed by the Chair. In light of the information provided in this report and the positive progress that has been made in optimising of the waste collection rounds, it is the officer’s recommendation that a review is not carried out at this time.
Date: 19th November 2019
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Lead officer John Elson, Head of Technical and Environment Services – Joint Waste Client Team
Report author John Elson, Head of Technical and Environment Services – Joint Waste Client Team
Version Draft V11
Dated 30/10/19
Status Open
Confidentiality
It is considered that information contained within this report (and appendices) do not contain exempt information under the meaning of Schedule 12A of the Local Government Act 1972, as amended, and therefore can be made public.
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Appendix 1
Joint Waste Contract Management Structure
Joint Governance Group
Hart Cabinet B&DBC Cabinet
Partnership
Board
Head of Environment &
Technical Services
Joint Waste Client Team
Serco - Joint Waste Contract
Hart - Administering Authority
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Yes
Yes
No
Yes
Appendix 2
Flow diagram of Basingstoke and Deane’s Complaints Process for the Waste Service
End
End
Start
Customer wishes to complain about their
service
Is the complaint about staff attitude/ behaviour?
Is customer satisfied with the rectification?
Log a Corporate Complaint Stage 1
Log a Corporate Complaint
Stage 1
No
End
No
Has the issue been reported in the past four weeks?
A ticket is raised for Serco to return and rectify
Log a Corporate Complaint
Stage 1
Stage 1 Complaints
- Acknowledgement is sent within 1 working day of receipt
- Full Response within 10 working days. - Waste & Recycling Officer to respond
Stage 2 Complaints
- Acknowledgement is sent within 1 working day of receipt
- Full Response within 10 working days. - Waste & Recycling Manager/Head of
Service to investigate and respond
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Appendix 3
Communications Plan for Waste Route Optimisation Project
Date Method Message
June 14
Launch
Councillors’
briefing
Issued the first briefing note to borough councillors
Joint press
release
Issued to local media outlining round change plans and reasoning.
Websites Websites updated with bin-changes page for residents to access.
7,600 visits to this page from 14th-16th following announcement.
Front page of the website updated
Parish
briefing
Information regarding the changes and an offer of posters and
postcards for display and distribution.
Internal
comms
Messages on Sinbad/Friday emailer
Basingstoke only parish
and town
magazines
and
websites
release
Issued to parish magazines and newsletters outlining round change plans and reasoning.
Facebook Changes to you bin collections from Monday 22 July. For more info
visit www.basingstoke.gov.uk/bin-changes
Reached 23,341 people and had 205 shares including local
community groups.
B& D Emailer
Bin changes special sent to 2395 addresses. 1245 people clicked on links.
Twitter Changes to your bin collections
Reception displays
Plasma screens and sprints in reception advising of bin changes.
June 25 Facebook &
Animation notifying of changes and information on reason for
changes and when they will take place.
June 28 Councillors’
briefing
issued
Promoting online look up and leaflets being distributed
June 28 Parish Promoting online look up and leaflets being distributed
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councils
briefing
issued
June 28 Internal
comms
Friday emailer,
Sinbad
Promoting online look up and leaflets being distributed
June 28 B&D Today
emailer
Issued promoting the online look up and leaflets being distributed
June 30
Facebook Information on new collection dates will start arriving on doormats tomorrow and over the next two weeks.
July 1 Joint press release
Full release detailing extent of changes and the reasoning behind them.
July 1 Facebook &
New collection dates available online
July 3 Postcards
and posters
distributed
to 30
community
hot spots
Postcards explaining round changes are happening and where you
can look up your new day
July 1 – 12
Leaflet An addresses leaflet to each property detailing collections dates.
July 4 Facebook &
Look out for your calendar
July 8
Facebook 2 weeks to the start of new bin collection dates. Look up at
www.basingstoke.gov.uk/bin-changes
July 10 Facebook &
Do you know your new collection day? Changes from 22nd
July 15 Facebook &
One week to go. Those with no day change will see a change to the
time of their collections so please put bins out by 7am
July 17 Facebook &
5 days to go, do you know your new collection day?
July 18 Facebook &
Four days to go. Do you know your day? Check family and friends
too.
July 18 Councillor
briefing
New collections due to start. Please share information and bin-
changes web page with residents.
July 19 Parish and
town
councillor
briefing
New collections due to start. Please share information and bin-
changes web page with residents.
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July 19 Internal
comms
Friday
emailer and
Sinbad
New collections due to start.
July 19 B&D Today emailer
Issued reminding people bin changes start on Monday and the check the look up
July 19 Joint press
release to
local media
Bin collections start Monday, check the look up
July 19 Local town
and parish
magazines
and
websites
Basingstoke only release
July 19
Facebook & Twitter
Bin collections change in 3 days. Put bins out by 7am as the time will change even if your day hasn’t.
July 20
Facebook & Twitter
New collections start Monday 22nd. If your collection day has changed we will take extra waste for the first week. We always take
extra recycling in clear bags or cardboard boxes.
July 21 Facebook 1 day to go. Check collection days online and check out our FAQ for any questions you have.
July 22 Facebook New bin collection days start today. Please check your new day and
put bins out by 7am.
July 23 Facebook Check your waste collection days online.
Please leave garden waste and recycling bins out if you are due an
extra collection.
July 24
Facebook &
New collection days started this week. Check your date.
July 28 Facebook &
We are now using new collection days. If you are a garden waste
customer collections start tomorrow.
