Agenda item

Charging for Green Waste

Cabinet Member with Special Responsibility Councillor Hughes)

 

(Report of Chief Officer (Environment)

Minutes:

(Cabinet Member with Special Responsibility Councillor Hughes)

 

Cabinet received a report from the Chief Officer (Environment) which set out the current position with regards to the opt-in subscription proposal for green waste collections.

 

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

 

Risk

Comments

Low take up levels impact on the wider budget

This is a significant risk.

 

The attached sensitivity analysis shows that a 53.5% take up would achieve the required income to meet the 2017/18 budget.

 

Information from Wyre shows a 53% take up is achievable.

 

It is estimated that 58,000 households currently have access to the green waste scheme (this is the audited figure that we use to claim cost sharing from the County Council).

 

Until the scheme is up and running the actual budgetary impact will not be known. Once up and running it will be closely monitored and fed into wider budgetary considerations.

 

At this stage information on the potential take up scenarios is best shown in the form of a range of take up scenarios from 40-60%. (Note income on 18/19 assumes a £40 per container per year charge).

 

Assumptions have also been made as to the amount of households that will sign up to the service in this financial year and the first 3 months of the next in order to take advantage of the 15 months for the price of 12 offer.

 

If take up is lower than currently budgeted for it simply means that officers will need to provide further options to balance the budget.

 

In terms of maximising take-up the following is in place-

 

·         Incentivised pricing (initially 15 mths for price of 12)

·         Comprehensive communications plan (including leaflet to every household providing information on the scheme)

·         Online as preferred method of ordering / paying

 

Customer Services are swamped with initial demand

All information will highlight the best way to order / pay for the service is online.

 

If householders want to contact the Council by other means (telephone / face to face) there will be means of doing so and plans have been put in place to manage this. However, until the scheme is launched the amount of people who want to contact the Council directly will not be known.

Issues arise that delay implementation

The different aspects of the process needed to operate the scheme are currently at different stages of development. A problem with one key part of the process could still delay the scheme.

 

An option would be to delay implementation of the scheme until April 2017. However, this would clearly have a further financial impact in this year.

 

A further report would be brought back to Cabinet were this risk to materialise.

Consequent risks

These include-

·         Reduced overall % of recycling in the District.

·         Increased fly tipping

·         County Council as waste disposal authority significantly shift policy (eg introduction of a gate fee for green waste)

 

The introduction of charging for green waste whilst new to Lancaster City Council has been in place in many Councils across the country for some time now. So whilst it is new to us it is not something that hasn’t ever been done before. This doesn’t mitigate the risks but it does provide assurance that any problems will already have been encountered by others and therefore best practice can be found to help solve any such consequences.

 

In order to allow for forward planning and future budget projections Cabinet are however requested to agree that in principle the contribution to the service in 2018/19 will be £40 per container per year. There will be the opportunity to review this, in light of actual performance of the service, ahead of 2018/19.

 

OPTION 1- to agree that in principle the contribution to the service for 2018/19 will be £40 per container per year.

 

OPTION 2- that Cabinet proposes a different level of contribution for 2018/19.

 

The Officer preferred option is Option 1.

 

Councillor Hughes proposed, seconded by Councillor Whitehead:-

 

“That the recommendations, as set out in the report, be approved.”

 

Councillors then voted:-

 

Resolved unanimously:

(1)          That Cabinet notes the report, the charges for opt in green waste collection scheme, the communications plan, key facts and estimated financial projections for future years.

(2)          That Cabinet notes that the proposed pricing structure has been developed to maximise early uptake but retaining a balance between affordability for residents and meeting budgeted income targets.

(3)          That Cabinet notes that the charges will be:

·         Discount rate of £30 for sign up before 31 March 2017.

·         Rate of £37.50 for 16/17 if signed up after 1st April 2017. 

(4)          That Cabinet agrees a charge of £40 in 2018/19 (subject to performance     reports put before Cabinet).

(5)          That progress on the actual performance and take-up of the service is reported in future reports to Cabinet to inform future charging policy.

 

Officers responsible for effecting the decision:

 

Chief Officer (Environment)

 

Reasons for making the decision:

 

Council have already agreed that this scheme should commence. The report provides key details of the scheme, progress and highlights the key risks going forward.  The on-going position will be monitored and future updates reported to Cabinet as part of the monthly updates on savings and growth approvals.

 

Supporting documents: