Derbyshire Dales council is to consider proposals to switch to a three-weekly collection system for residual waste, under a new waste collections contract to start in 2020.
The move has been prompted by concerns over the cost of a new contract, due to changes in the recycling market.
Serco currently provides the waste and recycling collection service for the borough
The council is preparing for the end of its contract with current provider Serco, which began in 2012 and costs close to £1.9 million per year (see letsrecycle.com story).
Bidders for the new contract will be required to consider the impact of introducing a three-weekly residual waste collection service from 2024 – as well as retaining the existing service provision of weekly food waste collections, fortnightly wheeled bin dry recyclable collections and fortnightly collection of garden waste.
Other changes to be implemented will include charging for garden waste collections after the start of the new contract in April 2021.
Service
The council covers 800 sq. km and provides services to 71,000 people living in 34,000 households. The district contains five small towns: Matlock, Ashbourne, Wirksworth, Bakewell and Darley Dale, each serving large rural catchments. At present, the authority achieves a 57% recycling and composting rate.
Councillors agreed to a specification for the new contract at a meeting last week (14 March).
In documents published ahead of the meeting, council officers conceded that costs may rise as a result of the provision of the new contract, prompting the need to explore budget savings in other areas of the work.
The documents state: “It is very clear that whilst the current contract cost is around £1.9m per year, the future contract might cost considerably more. This is because the current contract was tendered at a time when the market was much more buoyant than it is now.
“To reflect this increased financial risk, the council’s Medium Term Financial Plan includes an additional £300,000 a year from 2020/21. The report explains that commodity prices for recyclable materials are a key financial risk, which potential bidders are no longer willing to fully take on.
“Predictions of commodity price fluctuations indicate that in any one year the cost could at worst reach as high as £2.8m. It is recommended a 70/30 risk share in favour of the contractor should be implemented. This will reduce some of the financial risks to the council, while hopefully not deterring potential bidders.”
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Derbyshire Dales council
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Source: letsrecycle.com Waste Managment
