The current recycling contract with Basildon is due to end in May 2015, and currently provides the Council with an income of approximately £250,000 per annum.

Over the past six months there has been a joint procurement undertaken with Basildon, Rochford and Uttlesford Councils, which offered the best opportunity to secure maximum value, due to the increased tonnage.  The Council is now at the final stage of this procurement, which will extend over the next four years, and it is apparent that the market for the sale of the dry recyclate is very depressed.

The final stage of the procurement process is for Member approval, and shows that as opposed to the income the Council currently receives, there will now be a payment to the contractor. The Council also tips their recyclate at the Basildon depot, who will charge a nominal fee of £5.00 per tonne as a gate fee.

The new contract will mean a net increase of over £85.00 per tonne for the Council, and will mean a net loss of approximately £540,000.  This will mean a pressure on the 2015/16 budget of £300,000.

Members requested to have a strong vision going forward to encourage ideas  cross party to fund the extra financial pressure.

After a decision, a motion was MOVED by Cllr Lloyd and SECONDED by Cllr Sapwell to receive the recommendation set out in the report.

RESOLVED UNANIMOUSLY to:

1.            That Members approve the introduction of the new recycling contract, which will commence in May 2015.

REASON FOR DECISION

This has been through a robust procurement process, and the price outlined in the report is the best price achieved.