Decision details

To award a contract to Plan B for provision of a recycling materials broker service from 1 March 2023 for 3 years (2 years + 2 years extension option) with an approximate income vale of up to £1.3m per annum from the sale of recycling materials on behalf of Cheltenham Borough Council.

The council, as a waste collection authority, is required to collect waste and recycling at kerbside at its own cost.  These costs need to be mitigated by the sale of the recycling materials collected and, with the current budgetary pressures, maximising the income received from the recycling materials collected is a financial necessity.  The level of expertise required to deliver this is not available in house, therefore contracting this out is necessary.  Existing contractual arrangements expire 28 February 2023, and new contractual arrangements are required for the sale of recycling materials to meet existing income budgets agreed as part of the budget approval process.

The contract term for the provision of a recycling materials broker service is for an initial 3 year term with an option to extend for a further 2 years plus 2 years subject to satisfactory performance.  The contract will initially cover all core recycling materials collected at kerbside and gradually include all materials collected, either at kerbside, via bring banks, or the household recycling centre, now and during the contract term, to maximise income received by the authority.

The additional financial and performance reporting available as part of the contract will help deliver the authority’s priority in relation to the climate emergency by enabling decisions that support the circular economy, a reduction in carbon emissions, and its scope 3 reporting responsibilities, whilst balancing financial  imperatives.

Officers have considered whether this service is required.  However, the council, as a waste collection authority, is required to collect waste and recycling at kerbside at its own cost.  These costs need to be mitigated by the sale for the recycling materials collected and with the current budgetary pressures maximising the income received from the recycling materials collected is a financial necessity.  The level of expertise required to deliver this is not available in house, therefore contracting out is necessary.

Officers and the Cabinet member support the decision to award this contract to seek to improve income levels from the sale of recycling materials.

Internal consultation has taken place with the relevant officers and the Cabinet Member for Waste, Recycling and Street Services.