Hertfordshire councils to team up on waste services in savings plan
Two Hertfordshire councils are to go ahead with plans to create a joint waste collection and street cleansing service, which could potentially save both councils a total of £707,000.
North Hertfordshire District Council (NHDC) Cabinet and the East Hertfordshire District Council (EHC) have agreed to join forces after developing a business case to explore the potential of such a partnership.
The reason behind the decision to develop the business case was the hope that a joint contract would allow the councils to cut costs while achieving the same level of service.
A ‘Strategic Outline Business Case’ was developed by the NHDC’s overview and scrutiny committee in June last year, after the councils announced their intentions to investigate the cost and service implications of joining up, and suggested that a joint total of £404,000 could be saved each year (£262,000 of which would be saved by NHDC).
However further investigation and a more detailed consideration of costs was subsequently produced, indicating predicted savings were closer to £707,000 per year, with NHDC saving £494,000 and EHC £213,000. This saving however includes a 25 per cent reduction in total client staff, which is the equivalent of cutting six full time positions.
Current contracts for NHDC and EHC services are due to come to an end in May 2018. A formal procurement process is expected to commence in September 2016 with the new joint contract being awarded in Spring 2017.
Joint initiative increasing in popularity
An increasing number of local authorities are deciding to team up to deal with waste management due to continuing budget pressures. Joint initiatives are often developed to save money through combining infrastructure, optimising waste collections and reducing vehicle and labour costs. Rob Gillies, Managing Consultant at Eunomia Research and Consulting, told Resource earlier this year that combining administration and management structures can also save money in addition to making life easier by removing ‘administrative boundaries’.
The NHDC estimated that to combat budget pressures a saving of £2.25 million must be made over the next three years, which has led them to establish new working practices.
According to a report approved by the NHDC cabinet in late July, the preferred option for the Hertfordshire partnership is to have a joint contract and contract team. This option was chosen as it would achieve the optimum savings for both councils. NHDC will receive a greater proportion of the savings as there are more opportunities to rationalise collection rounds within this council area.
The other options considered were to continue to operate independently of one another or to have a similar system in place without integrating the councils’ waste management infrastructure.
The last such waste partnership was formed in November 2015 when Cambridge City Council and South Cambridgeshire District Council teamed up in a move which was expected to save £700,000 within three years.
The proposed partnership will operate in a similar way to the one formed in November 2015 when Cambridge City Council and South Cambridgeshire District Council teamed up in a move that was expected to save £700,000 within three years. While the collection service will be operated by two local authorities, it will have a single management structure and workforce.
‘Both councils facing increasing financial pressures on budgets’
Commenting on the decision to team up with East Herts, Cllr Peter Burt, NHDC’s Portfolio Holder for Waste & Recycling and Environment, said: "With both councils facing increasing financial pressures on budgets in future years, we need to consider different ways of working and explore what improvements and efficiencies could be achieved, whilst doing our bit to protect the environment.
“The Waste Collection and Streets Cleansing services for both councils make up a significant proportion of expenditure and the project could mean an improvement in cost effectiveness without residents seeing any difference to the service."
Tony Jackson, NHDC Executive Member for Shared Services, added: "The joint service will allow us to continue to provide an excellent service while also making considerable savings. As the pressures on our budgets are only set to increase, this is an excellent opportunity to reduce costs while maintaining a high standard of service."
The report into the shared service between North Herts and East Herts councils can be downloaded from the North Hertfordshire District Council website.
