Agenda item

Report by Head of Operational Services (attached).

The Executive considered a report by the Head of Operational Services (circulated previously), the options and/or alternatives and other relevant facts set out in the report regarding the replacement of the Materials Recovery Facility infrastructure.

The Head of Operational Services highlighted the following:

·         All recyclable materials collected were brought to Brynsworthy Environment Centre for sorting.

·         The existing equipment in the process hall was often at maximum capacity to bale the collected materials. The equipment was old and regularly broke down or needed additional maintenance and was now in need of replacement.

·         Some of the equipment was over 10 years old. 

·         As a direct result of the Recycle More project in 2017, which included the trial of the three-weekly residual collection service, the amount of recycling now collected had increased significantly.

·         The Recycle More project had influenced residents to recycle more than ever before resulting in the existing facility used to process the recycled materials not being capable of keeping up with the throughput. The occurrence of breakdowns were approximately twice per week with more major breakdown being monthly. Breakdowns were not restricted to one particular component and there were regular problems with any one of the three existing balers, conveyors and ancillary equipment.

·         In 2007/08, baling was introduced.  The collection of mixed plastics was introduced in 2014.

·         From 2014/15 to 2018/19 the collection of plastics had increased by 103%.  The collection of aluminium had increased by 140% and steel had decreased by 34%.

·         The existing equipment in the process hall was designed to deal with 6 tonnes.  It now handled in excess of 6 tonnes and was unable to cope with the current level of materials that were processed.  For the first 9-months of the financial year breakdowns and the recovery of breakdowns had cost the authority £44,264.00 which had not been budgeted for.

·         A decision had not yet been taken in relation to the roll out of the  three-weekly trial to other areas or district wide.  If was extended the problem with the process hall would be further exacerbated.  If this decision was not taken there would still be a need for the Council to increase its level of recycling to 50/55%.

·         Alternative options available –

·         Independent advice had been sought and it was recommended that new plant and equipment along with all of the necessary ancillary equipment was purchased.  If approved the process hall could be up and running to capacity by Christmas 2019 with improved reliability and throughput. The equipment would be able to not only cope with existing production but have the capacity to take the material if all the District were to recycle to its maximum ability along with increased trade recycling and also possible external additional business. 

·         During the period of decommissioning the old equipment and installing the new, Exeter City Council had agreed to process our steel/aluminium and plastics which would see a reduction in the overall income of approximately £12,500. Cardboard would still be moved under the current arrangement along with glass and paper.

·         It was recommended that the process hall was configured with a series of new bulk storage bays to hold the separated plastics, steel, aluminium and cardboard. This would be achieved by a bulk storage bay for mixed materials that would be loaded onto floor level conveyors that will then take the individual materials though a series of electro-magnets (to capture steel) and eddie current separators (to separate aluminium). These separated materials can then be forwarded on individually to a twin ram auto banding baler. Overhead gantries with picking stations also need to be included to allow for additional materials to be removed / recycled if we chose to expand the recycling service in the future, or if there was a market requirement to produce higher grade recyclet.

·         Presently 4 operatives were required within the process hall to operate the three existing balers, the mechanical loader (Telehandler) and the two fork lift trucks. With the introduction of the new equipment it was envisaged that this number can be reduced to 3, creating a saving of £23,000 pa.  This reduction would be managed through the normal vacancy process. 

·         The resource implications as detailed in paragraph 5.1 of the report.  The capital expenditure would be borrowed over a 10 year period.  There would be an increase in material income.  During 2019/20 there would be a loss of income as a result of the materials being processed by Exeter City Council during the decommissioning of the old and replacement of the new equipment.

In response to questions, the Executive were advised of the following:

·         The Government was in the process of consulting on the types of recyclable materials collected.  If the Government made the collection of some materials statutory, then it was anticipated that Local Authorities would be offered a financial incentive.

·         The new equipment would handle 6 tonnes per hour.  Most Local Authorities provided a recycling service and the majority undertook kerbside collections.  The value of materials collected fluctuated considerably.

·         There had been a reduction in the collection of steel and paper.  The collection of plastic, cardboard, steel and aluminium had all increased.

·         The recycling rate had reduced when compared to the same quarter last year, however it was explained that this was due to materials being stock piled at the depot.  Therefore it was anticipated that the recycling rate would increase.

·         The baler for plastics was 10 years old, steel was 7 years old and aluminium 4 years old.  Life expectancy for balers was 10 years.

·         It was the Council’s policy to borrow for the life of the asset.

·         The new plant and equipment would last 10 years and have capacity to handle an increase in the recyclable materials collected.

DECISIONS

            RECOMMENDED:

            REASONS FOR DECISIONS/RECOMMENDATION