Verbal update

The Head of Environmental and Operational Services referred to the Direct Services Business reports, circulated with the agenda and gave a verbal update. Previous areas of concern were pest control, cesspool emptying and trade waste. Overall there had been a healthy surplus of £83,605 for the first six months of the financial year, but the profited surplus is £11,000. The adverse variant was almost totally down to wasp nest treatment income, which was down over £45,000 on the same period last year. This year for Pest Control had been the lowest number of treatments for wasps nests. This was due to the weather over the spring. Only 126 treatments had been undertaken compared with 773 last year. Domestic properties are charged £52 and commercial properties are charged £60 for wasp nest treatments. It was noted that a Pest Control service is not statutory. If the service cannot cover it’s costs from charges then it will be reviewed. The service was currently in the second year of a three year review to see if it can recover its costs from charging. A report would be brought back next year.

The surplus for trade waste was £41,000 after six months. It was estimated that there would be a viable surplus for this service at the end of the financial year.

Pricing for cesspool emptying had been reviewed. There was an £11,000 surplus at the end of the six months. There are 800 active customers over the last 18 months. The majority of cesspool emptying was carried out in the south of the district. The Council would collect any volume, but customers requiring an emptying of 2000 gallons or less use the Council’s service most. There are two crew members and vehicles. Although it is not the lowest price compared to competitors, there is a very high customer satisfaction rate with the service.

The Head of Environmental and Operational Services tabled fuel prices which had stabilised and are slightly under the estimated price for the past 6 months. Since June, however there was an upwards trend and is now back up to £1.16 a litre for fuel which was favourably comparable the average price for trade transport.

Members asked if there were any major changes needed with MOT testing. The Operational Manager explained that there was new technology available for MOT testing and would be purchased as necessary. We have diagnostic equipment which can diagnose faults codes. Direct Services carry out, on average, nearly 700 MOTs a year along with a similar number of taxi tests. Tests only are carried out, and not repairs, arising from the tests.

In response to questions the Head of Environmental and Operational Services advised that the financial objective for Direct Services was to achieve the approved budgeted surplus, which is integrated in the Council’s 10 year budget plan. The main investment is in new vehicles, which is charged to the vehicle replacement fund. It is financed by depreciation charges on all vehicles. This ensures the fund is always available to maintain a vehicle replacement programme.

The household refuse collection service is budgeted to achieve a deficit. The cost of the service is charged at less than the actual cost of delivery. The deficit is made up through surpluses on the non - statutory services which are provided. If a tender exercise was carried out, a true reflection of the cost would have to be provided for the service. It last went to tender in 1995 during the Compulsory Competitive Tender legislation. The service had since been through a Best Value Review and at that time Members determined to continue delivering the service in house. Any decision to market test this service would be for the Council to determine.

Members requested if it would be possible to compare with other councils the cost of services in comparison. The Council achieved best value in the past in comparison to other Kent Council’s and compared favourable to Gravesham, another DSO, who provided a very similar refuse collection service.

Members discussed the use of wheeled bins. The Health and Safety Executive (HSE) had expressed their concerns over manual handling issues of a sack collection method in comparison to the use of wheeled bins. Letters would be sent to residents who are using wheeled bins to store their bags in, requesting that a box is put at the bottom of the bin or that a shallow bin is purchased, or that residents take their sacks out of the bin themselves to prevent back strain on the collectors. This is on the advise of the HSE.

There are currently eight Kent Districts who had adopted or are adopting the preferred collection method for Kent, which entails alternative weekly collections of food waste. Through these arrangements Kent County Council would contribute to containerisation through the disposal savings of waste which had been recycled or composted rather than be incinerated.

In response to Members’ questions a weekly collection of wheeled bins would result an increased number of crews and collections and this would be more costly.

Action 1: The Financial Services will provide details regarding the return on assets employed.

Action 2: The Finance Manager will provide details of the weekly refuse collection cost per household calculation.