Shrewsbury & Atcham
Borough Council

5.1

The overall cleansing service including domestic refuse collection was awarded a 2 star good rating likely to improve. It offers local residents a quality good value service. Further business opportunities have been identified in the service matrix which will be investigated during the course of the review period and as part of our normal business planning process.

5.2

The base Refuse Collection Service has been compared to typical top quartile comparisons, from both public and private sector service providers. Members should note that the overall core service is in the top 50% with vehicle maintenance costs in the lower quartile. Wages are in the higher quartile which is attributable to the recent settlement for service personnel who now enjoy full single status terms and conditions.

5.3

Further public consultation is necessary to ensure that local resident's observations and comments are taken into account at this critical stage of service evaluation.

RECOMMENDATIONS

Carry out a service consultation exercise with the residents of Shrewsbury & Atcham Borough Council.

5.4

The Council's commercial waste collection service has grown steadily over a period of years to a position where it generates a net surplus of approximately 12.5%.

5.5

This level of performance is commendable and will enable the service the opportunity to develop a greater share of the local commercial market. Further service expansion will be dependant on a successful marketing strategy.

5.6

Work is currently underway to supplement promotion of the service through Yellow Pages advertising and development of a marketing brochure for the service to develop a more aggressive pricing strategy to increase market penetration. Development of compatible service opportunities may be possible to generate additional income for the Authority including bin repairs and bin washing opportunities.

5.7

To facilitate sustainable growth and remain cost effective the existing vehicle fleet will be re-deployed in the short term to accommodate service expansion. Spare capacity and or changes to service priority have been identified to cater for the predicted growth.

5.8

The commercial waste market offers considerable scope for development within the Shrewsbury & Atcham Borough Council area and where appropriate in other Shropshire districts.

5.9

In order to remain profitable and maintain a competitive edge the service must be resourced at a level which is compatible with private sector operators.

RECOMMENDATIONS

Develop a marketing strategy and promotional literature for the service and adjust the pricing structure to reflect current market conditions

Review manning levels and reduce the team from a driver plus two to a driver plus one with support

Investigate potential for a bin washing/repair service and other compatible business opportunities

Investigate the potential for cardboard recycling and introduce if financially viable

Utilise the existing fleet in the short term to cope with service development and commercial growth.

Evaluate further growth opportunities in the north and east of the county, to maximise the proximity to the new disposal facility.

c) Commercial Skips – A charge may be made – Under Section 47(1) of the Environmental Protection Act 1990

5.10

The commercial skip service operated by Shrewsbury & Atcham Borough Council is able to undertake various internal and commercial work for the Authority, to generate income from the hire and disposal of commercial skips. It is also able to supplement the recycling service to cope with fluctuating levels of demand and seasonal variations for the Bring Bank recycling operations.

5.11

Spare capacity available from recycling banks is utilised through the deployment of the vehicle for private works and support Parks services including the Countryside Unit, Open spaces, Cemetery, Crematorium work etc.

5.12

Due to the varied nature of the operation and the demand to empty Bring Banks, at short notice the service is strategically placed to provide backup support and respond to Shrewsbury & Atcham Borough Council's varying priorities and emergencies and generate income through commercial work.

5.13

A substantial rise in the commercial rate for the service is necessary to bring it in line with the private sector, members can be reassured that any changes to our pricing structure will take into account local market conditions. It is important, however, that the service is carefully monitored to ensure it remains commercially profitable.

5.14

To reconcile income and expenditure and manage the service to operate at a surplus two key decisions are necessary. Amend the pricing structure to reflect annual commercial rates and introduce a recharge system for internal works carried out on behalf of other divisions/sections.

5.15

The introduction of these measures will ensure that the service costs are transparent for each section. It will also facilitate potential to build and develop further commercial opportunities. Finally it retains a service which is able to respond quickly to Shrewsbury & Atcham Borough Council's operational needs and priorities.

RECOMMENDATIONS

Increase commercial charges to reflect current market rates and remain competitive

Introduce a system of identifying internal work for the service. Allocate as appropriate and develop the budget to reflect these charges during the 2004/5 process

d) Bulky Household Collection – A charge may be made – Under Schedule 2(1,2,3) of the Environmental Protection Act 1990

5.16

Phase 1 of the revised pricing structure has been approved to be introduced from the 1^st April 2003. The second price adjustment will take effect from April 2004. The combination of these charges will reduce the net cost to Shrewsbury & Atcham Borough Council chargepayers and still offer users a competitively priced service for removal of bulky items.

5.17

We are pleased to report that the public response to the phase 1 increase has had no impact on service demand which demonstrates the importance of reviewing charges periodically. Nevertheless the overall demand for the service remains high with average waiting time in excess of six weeks.

5.18

A further review is necessary to evaluate the level of resources necessary to reduce this time to a period of 4 weeks maximum.

RECOMMENDATIONS

Introduce regular annual price review for the service, and carry out a review to offer discounts to senior citizens, the disabled and other appropriate categories

Review the cost implications to reduce waiting time to a maximum waiting period of 4 weeksAnalyse the potential to incorporate bulky items collected to increase our recycling performance or use specialist local charitable organisations

Evaluate the feasibility to incorporate the works with the Freighter service and report back to committee during 2004 on the outcome.

e) Clinical Waste – A charge may be made – Under Schedule 2(4) of the Environmental Protection Act 1990

5.19

The Clinical Waste service arranges collection and disposal of waste under Schedule 2(4) for which a charge may be made.

5.20

The free weekly service offered by the Authority has been offered to local residents for over 25 years. Appendix No 6 identifies the various categories of private and commercial customers.

5.21

From January 2003 regulations were introduced and amended primarily to reflect the manner in which Clinical Waste is contained and transported. To comply with these new arrangements the operation required the service of a further vehicle. No additional income was made available by the Government to fund the increased expenditure to maintain the service.

5.22

A number of options and possible alternative solutions are available to members to help to minimise the impact of these regulations on our service costs.

5.23

A policy to charge or subsidise the cost of provision is available to members to minimise the financial impact for the collection and disposal from residential properties. In addition a price increase to private users would also reduce the net cost of the service to the Authority.

5.24

The combination of both options would help to negate the cost of complying with these regulations. Very little advance knowledge was made available to Local Authorities to plan and manage for the introduction of the new regulations in January 2003.

5.25

Specialist contractors are capable of managing and administering these services on behalf of the Authority. Our statutory responsibility can be discharged through the use of a third party arrangement with a private sector operator. The net effect of these considerations would provide reduced expenditure to invest in the core service or exploit other financially viable business opportunities.

RECOMMENDATIONS

Research the impact and cost implications to introduce a charging system to cover/contribute to the net cost of providing the service

Evaluate options to subcontract the service via a specialist operator and report to committee during 2003/4

f) Freddie the Freighter – A charge may be made – Under Schedule 2(1,2,3) of the Environmental Protection Act 1990

5.26

The present service was introduced in 2001 and supplements the Bulky Household collection arrangement, both operations collect bulky items from householder residing in the Shrewsbury and Atcham area. Prior to this arrangement a Saturday morning collection operated for a 4-year period.

5.27

The Bulky Household (BHA) collection system is arranged by way of an appointment system to collect from individual householders and charged at the rate of £11.00 for the 1^st item and £9.00 for subsequent bulky items.

5.28

Freddie the Freighter service is managed through a regular scheduling arrangement to each ward in the Borough at a 4 to 5 per year frequency. This service is advertised by ward members notifying local residents of the specific day and time the vehicle will visit a particular street or road.

5.29

No charge is made for this service which operates 5½ days per week throughout the year. The driver operator assists and disposes of bulky items into the rear loading area of the refuse freighter. White goods are excluded from the list due to recent environmental regulations and operational restrictions.

5.30

The service is popular with the general public and ward Councillors. Members notify local residents of the collection schedule in local newsletters/ward updates etc. Best Value inspectors also commented favourably on the service during their inspection in 2001.

5.31

A research study should be undertaken to determine the types/volume of articles collected, participation rates, and if the service is able to supplement the trade waste collection service during the predicted growth period for the commercial service.

5.32

To contribute towards the operating cost of the service consideration should be given to the introduction of a form of charging system based on a minimal sum of between £2.00 and £5.00 per household per collection. This could be incorporated seamlessly into the existing operation by way of a ticket system purchased at main Council Offices/retail outlets etc.

5.33

Due to Environmental Regulations we are unable to reinstate the skip service which preceded the Freighter Service.

RECOMMENDATIONS

To carry out a review of the operation including participation rates type of articles removed and the feasibility of introducing small fee for the service.

Assess the impact of the service to provide additional support for commercial bin service growth.