Agenda and draft minutes

Councillor Kalsi – work commitments

None.

Last meeting held on 13 May 2025 (for confirmation)

The Committee agreed the minutes of the meeting held on 13 May 2025 as a correct record and they were signed by the Chair.

Report of Corporate Director for Communities, Environment and Resident Services

Neil Lindsey-Taylor, Divisional Quality and Governance Manager, presented the report and stated the following:

a)  the current Asset Management System (AMS) contract, which has been in place for 20 years, is due to expire in October 2025 after having several extensions. No further extensions are possible, and the supplier will cease support for the on-site server-based systems from October;

b)  the proposal is to go to open market and invite tenders for a new AMS contract and replace the existing software system, in compliance with the Procurement Act 2023 and the Council’s constitution;

c)  the AMS is integral to the effective management of the city's highway network, valued at approximately £1.8 billion and which covers around 8million square metres of roads and footways, including 767km of roads, 1,442 footway networks, 210 key bridges and structures, 33,329 streetlights, 144 traffic signalled junctions, 162 pedestrian signals and 37,349 road gullies;

d)  the AMS supports various services, such as highway inspections, maintenance, street works, street lighting, bridges and structures, public rights of way, drainage, waste management, tree management, cemeteries, parking services, bus stop maintenance and district heating;

e)  the system ensures compliance with legal requirements, optimises budget spend, maximises staff efficiencies and enhances customer service by providing real-time information and streamlining workflows;

f)  additional services currently supported include street cleansing, street waste bins, sweeping routes, grounds maintenance at parks (vectors, assets), parks waste bins, maintenance routes and lifebuoys. This facilitates real time capture of cleansing and grounds maintenance operations using the street, properties, park or street feature as the asset being maintained;

g)  activities currently being provided by separate software packages will be brought into scope, such as tree assets, inspections, maintenance and risk management, and playground play equipment assets and inspections;

h)  it is anticipated that the contract will commence from 1 October 2025 for an initial period of 5 years, with an option to extend for a further 15 years at the sole discretion of the authority (a maximum 5+5+5+5 years).

Resolved

(1)  to approve undertaking a tender process to procure an Asset Management System, with an initial period of 5 years commencing 1 October 2025 and including an option to extend for a further 5+5+5 years at the sole discretion of the authority (a maximum 20 years) at a maximum cost of £4.5m over the 20-year period;

(2)  to approve an exemption from contract procedure rules to extend the current contract with the current provider (Brightly) for the period of new contract implementation and handover (to be reviewed on a 6-monthly basis);

(3)  to delegate authority to the Strategic Director of Resident Services to award the contract(s) and oversee the budget.

Reasons for recommendations

a)  An asset management system underpins the daily operations of key strategic services including Highways, Street Cleansing and Grounds Maintenance. The current system is on-site server based and will not be supported by the supplier beyond the current extension, which ends October 2025.

b)  The recommendation to procure a new Asset Management System is based on  ...  view the full minutes text for item 14.

Report of Corporate Director for Communities, Environment and Resident Services

Carl Pendleton, Waste Disposal Manager, presented the report and stated the following:

a)  the Current contract for the processing of dry-mixed recycling and other waste streams not incinerated or composted expires in March 2026, having run for the last five years;

b)  currently, around 48,000 tonnes are processed via this contract, with a net present value of around £4.9m per annum;

c)  due to the value of this contract, it will require a new procurement as the current contract can no longer be extended;

d)  the contract provides the main outlet for the council’s collected dry-recycling, bulky waste and residual waste when the incinerator isn’t available, as well as inert waste such as rubble etc;

e)  this contract supports and contributes to our recycling / composting and landfill diversion rate, and to sustainability and CN28 objectives;

f)  previous tenders have attracted limited response and, as such, we are trying to engage with the market and structure the tender in such a way to encourage greater competition;

g)  approval is being requested to seek a new contract(s) via an open tender for an initial 2-year contract, with an optional 1+1+1 years (a maximum total of 5 years) at a maximum total cost of £25m for the 5-year period.

Resolved to

(1)  approve commencement of a tender process, seeking a 5-year contract, including optional break clauses (2+1+1+1), and totalling a maximum £25m over the 5 years, for the processing of municipal waste collected by the Council for waste treatment for dry-mixed recycling and other waste streams not incinerated or composted;

(2)  delegate authority to the Strategic Director of Resident Services to award contract(s) to the successful bidder, in consultation with legal and procurement colleagues.

Reasons for recommendations

a)  The Environmental Protection Act 1990 places a duty on a Waste Disposal Authority to arrange for the disposal of waste collected on its behalf. Securing a new contract delivers this requirement for the various waste streams that will be out of contract on 1 April 2026. Also, the tender will allow changes from simpler recycling to be incorporated.

b)  The Procurement Act 2023 and Procurement Regulations 2024 place an obligation on the Council to procure this service as the value exceeds the stipulated financial thresholds.

c)  A five-year contract(s), with optional breaks at two years and annually thereafter, until the full term is being proposed. The option to enact a break clause is purely discretion, with appropriate notice. This format allows flexibility to both evaluate market conditions and commodity prices, to review best practice and potential to drive additional value. The break clause will also enable us to respond to potential changes as a consequence of any Local Government Reorganisation.

d)  Allowing break clauses within the term will also allow us to respond to changes in government policy on waste and recycling. This approach also facilitates local government reorganisation and presents an opportunity to harmonise existing contracts.

e)  The requirements of the contract(s) can be broken down into three distinct units / Lots:

·  Recycling  ...  view the full minutes text for item 15.