Agenda item

Bristol Waste Company Business Plan

At the outset the Chair confirmed that officers were to be invited back to a future OSMB meeting to discuss waste and recycling service issues enabling the discussion at today’s meeting to be focused upon the business plan for the company.

ACTION - Waste Company officers to be invited to attend an OSMB as soon as is possible

The following points were raised and discussed by the members present: 

·         Questions were raised about the future plans for the Days Road site. Officers confirmed that there is a 99 year lease on the majority of the site but part of the site (where the bays currently are) has a lease due to expire in 2019. The company is waiting to hear back from Network Rail on their future plans however it was confirmed that most of the site will remain with BCC for the foreseeable future.

·         The business plan references the Waste Company’s contribution to Bristol being a better connected city. Officers confirmed that this relates to ongoing work with IBM on using mobile applications for bag tracking and other initiatives, all of which are currently in proof of concept stage. It was agreement that an update will be provided for scrutiny on this at an appropriate stage.

ACTION - An update on the Waste Company’s contribution to Bristol as connected city to be scheduled at an appropriate point.

One member of OSMB raised the following concerns:

·         The need for all of the report to be exempt

·         Reporting back on the achievements of the company over the last year

·         Officers from the company confirmed that an annual review has been written and circulated to members but that this and last year’s business plan will be recirculated.

·         Officers from the council advised that scrutiny had been given the full paper prior to the cabinet decision and in those circumstances it is required to be exempt. A public version of the business plans would be  published for cabinet with minimal amount of exempt information. The Chair of OSMB advised that there was the option to wait and scrutinise what was in the public domain or have the opportunity to scrutinise in exempt session the full set of reports. It was highlighted that reviewing the procedure for exempt information would be useful.

·         Council officers advised that it is not the intention to remove the reserve or change the ethos of reinvestment back into other activities but there is a need for the council to have clarity on the investment plan.

ACTION – Waste Company officers to recirculate the annual review and the 2017-18 business plan

·         Members questioned Bristol’s ambition at having a 47% recycling target (28% for flats) when 50% is the national average and there was a perception that Bristol is lagging behind European counterparts.  It was suggested that the company should do more to focus upon tackling waste and recycling in flats in order to make a step change. Officers from the company advised that there is a pilot in Hartcliffe on food waste and early results indicate it is having a positive impact but that they acknowledge that flats are a significant issue and are an area to target. Members highlighted that whilst targeting students is important they do change every year and so this won’t achieve the necessary improvement long term. 

·         Members questioned if more could be done in regards planning requirements (e.g. include in the Local Plan and be able to challenge applications on that basis) and also if business rates reductions could be used as an incentive to landlords and owners. Council officers advised that waste and recycling are already components of the council’s planning process. Business rates however would need to be explored to ensure it would add up financially.

·         It was noted that the focus on reuse was positive but that also there should be a holistic approach to all aspects e.g. examining impact of waste vehicles on Bristol’s roads. A member questioned the future market for the sale of recycled products. Officers confirmed that changes to the Chinese market have meant they have looked for other markets and are confident that they can maintain the level of income from sales in line with the business plan. They advised that Bristol has a strong product due to the minimal amount of contamination. 

·         Members questioned the future of the West of England NDT Plant contracts

·         Members questioned what commercial offer was being made to businesses to encourage take-up of Bristol Waste Services. Officers from the company confirmed feedback has been positive but that there has to be a competitive offer. The level of service offered by Bristol Waste was viewed as a strength in this market.

·         The issue of safety was raised. Company officers asserted this was their highest priority in terms of employees and customers and the company undergoes regular audits by the council and it is regular item for the board meetings and shareholder group. The Independent Shareholder Advisors (ISAs) interjected and advised that members should be reassured about the company’s focus on this area..

·         The lack of risk assessment in the business plan was questioned. Company officers acknowledged this and highlighted that a risk register was standing agenda item for the Waste Company Board and also the Shareholder group and that a risk and audit sub-committee (of the Board) was being established. 

·         Altering the charging rate for garden waste by season was put forward by members. Company officers advised that there was an increase in customers due to changing the service in the summer but that this was resource intensive and so at this time there is no set way forward on this.

·         Members questioned if and when the waste company waste collection and recycling methodology would be available for scrutiny given the importance of this to all Bristol residents. It was noted that a decision regarding the purchase of new equipment would be required in 2018. The Deputy Mayor advised that the executive wants scrutiny involvement early in this process and that there would need to be public consultation depending on what decision might be made. Members questioned if there is sufficient time for this consultation to take place particularly if there is to be a significant change e.g. moving to a single bin solution.. Council officers agreed to come back to the next meeting (11^th January) with an indicative timetable.

ACTION - Council officers to produce an indicative timetable for 11^th January meeting on the waste company methodology consultation and engagement and Scrutiny Officers to programme in scrutiny activity as appropriate.

·         Clarification was sought on the nature of Teckal companies and the percentage of turnover obtained from different sources. Officers from the council and company confirmed that the Waste Company can only trade 20% of its turnover with commercial customers (e.g. not from providing services to Bristol City Council which form the other 80%). The Deputy Mayor also confirmed that regarding the methodology of the kerbside waste collection the council, as the commissioner of Bristol Waste, would be responsible for making this decision making due to the impact upon citizens of Bristol.

·         It was noted that the council is likely to fund the purchase of the equipment (dictated by the collection methodology). The waste treatment and disposal contract with New Earth Solutions was raised. Officers from the company confirmed that this is continuing currently.

·         The Deputy Mayor concluded from the client side that the Executive is pleased with the performance of Bristol Waste Ltd. It is the view that the service has improved and that costs have reduced also.

·         The Chair drew the item to a close stating that the view from OSMB is that this is a robust business plan and it has been a positive trajectory over the last twelve months. Thanks were given to the company officers and from the client side specifically to Helen Wheeler for ongoing hard work.