Agenda item - Changes to Textile Collections from Bring Sites Securing Revenue for Brighton & Hove City Council and Local Charities

Report of the Executive Director Environment, Development & Housing (copy attached).

That the Environment Transport and Sustainability Committee:

1)   authorises the procurement of the contract for the installation, maintenance and servicing of textile banks in Brighton & Hove, following the timeline and evaluation criteria set out in the report with a contract term of 3 years from November 2015 with the option of a two year extension;

2)   Authorises the re-investment of 60% of the net income from the contract in service improvements such as maintenance of on-street recycling bins and investment in wheelie bins for recycling;

3)   Authorises the ring-fencing of 40% of the net income from the contract to the incentive fund formally agreed by the Committee in March 2014;

4)   agrees to the review of the scheme after six months to assess income generated and its allocation within the service and to the incentive fund; and

5)   authorises all necessary measures to remove the unregulated textile banks from council-owned land so that they can be replaced by those authorised under the contract;

6)   Grants delegated authority to the Executive Director Environment, Development & Housing:

·         to award the contract for 3 years following the recommendations of the evaluation panel and the results of the tendering process; and

·         to extend the contract for 2 years subject to satisfactory performance of the provider in respect of the initial 3 year period.

7)   Notes that the contract will be awarded as soon as practicable allowing for the procurement process.

10.1      The Committee considered a report of the Executive Director Environment, Development & Housing that sought approval to procure a contract for the installation, maintenance and servicing of textile banks in Brighton & Hove to enable textiles to be recycled with the rising revenue ring-fenced to local charities and groups and service improvements.

10.2      Councillor Greenbaum noted there was no mention in the report of any consultation with the existing collection providers or any consideration to the option to license or regulate the current arrangement.

10.3      The Head of Strategy & Projects noted that there was currently a good network of textile collection points but no direct benefit in the revenue from those sites remained within the city. The Head of Strategy & Projects added that the council had been contacted by a number of locally based charities asking that the council help them to benefit from such collections.

10.4      On behalf of the Conservative Group, Councillor Janio moved a motion to amend recommendation 2.1.2 and 2.1.3 as shown in bold italics below:

(That the Environment, Transport & Sustainability Committee):

2.1.2   Authorises the re-investment of 60% of the net income from the contract in service improvements such as maintenance of on-street recycling bins and investment in wheelie bins for recycling;

2.1.3  Authorises the ring-fencing of 40% of the net income from the contract to the incentive fund formally agreed by the Committee in March 2014;

10.5      Introducing the amendment, Councillor Janio stated his general support for the proposals noting that the scheme would only apply to council land and that collection points on private land could continue. Councillor Janio added that whilst he supported the principle, he believed local charities needed more support rather than directed to the council’s General Fund and would it was his preference that the ring-fenced income directed to the incentive fund be increased from 10% to 40%. Councillor Janio supplemented that he hoped the matter could be revisited once it had been in operation for a period.

10.6      Councillor Theobald formally seconded the motion.

10.7      The Chair noted that the income received from the scheme would not be directed to the General Fund but would be used for issues such as the repair of communal bins and repayment of the wheelie bin trial just agreed by the committee.

10.8      Councillor West stated it wasn’t true to say that the wheelie bin trial was solely dependent on a 90% re-investment of the net income from a textile collection service as the report on that matter had identified funding for the scheme would come from central funds and the issue would be how that amount was recouped. Councillor West stated he was supportive of bringing textile collection to local benefit but he was disappointed that existing providers had not been consulted and he had received a lot of correspondence from those providers on the impact of the proposals. Councillor West stated he was keen for the money to be shared fairly and would be supporting the Conservative Group amendment.

10.9      The Chair noted that the financial implications of the Wheelie Bin recycling trial report previously agreed had identified money generated from textile collections as an income generator for the scheme and asked what impact the proposed amendment might have.

10.10   The Head of Strategy & Projects noted that the Wheelie Bin recycling trial report had identified that the money for the trial would be funded from capital reserves and repaid from schemes such as textile collections, commercial waste schemes and from other savings on waste disposal. However, none of those income streams were guaranteed and a likely effect in the reduction in income would be that the repayment period for the Wheelie Bin recycling trial would have to be extended from 2-3 to 3-4 years. The Head of Strategy & Projects noted that should the Wheelie Bin trial be successful, funding for a full roll of the scheme would have to found.

10.11   Councillor Barradell stated that a continuing challenge for local government in the context of funding cuts from central government would be generating income to provide services such as those on the agenda. Councillor Barradell stated that she had sought information from the Charity Commission on TRAID and found that of a £4.9m income, £4.6m was costs and only £300,000 was passed to charities. Councillor Barradell stated that the recommendations might mean that more could be returned to local charities in Brighton & Hove. Councillor Barradell added that she was also unsure whether the European Recycling Company had charity status.

10.12   Councillor Greenbaum stated that she also had reservation about the legal status of some of the organisations involved in textile collections and upon researching further; it did not appear that European Recycling Company was a registered charity.

10.13   Councillor Miller stated that he agreed the contribution should be higher as public perception was very important on this issue.

10.14   Councillor Nemeth asked if there would be resources required to move the existing banks and a timescale for the council to begin its scheme.

10.15   The Head of Strategy & Projects stated that informal discussions had taken place. Removal of the banks would require a Notice to Remove and no issues were anticipated.

10.16    The Chair then put the motion to a vote which was passed.

10.17   The Chair then put the report recommendations as amended to a vote which passed.

10.18   RESOLVED-  That the Environment Transport and Sustainability Committee:

1)   Authorises the procurement of the contract for the installation, maintenance and servicing of textile banks in Brighton & Hove, following the timeline and evaluation criteria set out in the report with a contract term of 3 years from November 2015 with the option of a two year extension;

2)   Authorises the re-investment of 60% of the net income from the contract in service improvements such as maintenance of on-street recycling bins and investment in wheelie bins for recycling;

3)   Authorises the ring-fencing of 40% of the net income from the contract to the incentive fund formally agreed by the Committee in March 2014;

4)   Agrees to the review of the scheme after six months to assess income generated and its allocation within the service and to the incentive fund; and

5)   Authorises all necessary measures to remove the unregulated textile banks from council-owned land so that they can be replaced by those authorised under the contract;

6)   Grants delegated authority to the Executive Director Environment, Development & Housing:

·         to award the contract for 3 years following the recommendations of the evaluation panel and the results of the tendering process; and

·         to extend the contract for 2 years subject to satisfactory performance of the provider in respect of the initial 3 year period.

7)   Notes that the contract will be awarded as soon as practicable allowing for the procurement process.