|
| 21st December 2009 |
| SMR Launch Rubbish Collection Service |
 |
Providing the First Total Waste Management Service in the area
South Molton Recycle is a Social Enterprise which means that they are driven by a triple bottom line incorporating environmental and social aims as well as profit. They operate in the North Devon and Torridge areas and have recently expanded into parts of Mid Devon.
SMR re-branded and re-launched their recycling service for businesses in 2007 providing the same access to services for businesses that they had been providing for households for the previous 16 years in partnership with the local councils.
They cater for all size of business or event and offer different solutions depending on the size of the business, from bags to wheelie bins for storage of your recycling.
Since launching the recycling service, they have been constantly asked by businesses, if they would provide a ?total waste management service? by adding rubbish to the items that they can collect. Businesses realised that they could achieve real savings by recycling items previously put into the rubbish bin because recycling collections are cheaper than rubbish collections and disposal. However, their existing refuse collection operators would not reduce the size of the bins for rubbish and therefore the cost (as most of the items going into the rubbish could be taken out of the rubbish bin and recycled and thus reduce the need for such a large refuse bin) which meant that the cost savings achieved by recycling those items instead of land filling them, could not be realised by the business. The only way to pass on these savings to the customers would be if SMR managed the whole waste stream, which is what they are now doing.
Sarah Portsmouth, MD said ?we believe that the businesses in the area deserve access to quality, affordable recycling and waste management solutions. We listen to our customers and are responding to their needs. A lot of businesses are concerned about their carbon footprint and as we are a local business we are a much better option than the waste companies who are not based locally. We are very excited about this new rubbish service launch which means that we are the first ?total waste management solution? for businesses in the area?
SMR was at the forefront of bringing recycling to householders across the country, which has now become part of central government targets. They have now turned their focus to businesses to offer the same source segregated recycling systems, as these services are currently fall well below what they could be.
John Billingham Operations Director said ?SMR is now the first in the area to offer local businesses a total waste management service which will be available firstly to businesses in the South Molton, Barnstaple, Braunton, Saunton, Bideford, Torrington, Fremington, Bickington, Instow, Westward Ho! & Northam areas. Later in the year we are hoping, if the take up is good, to expand the areas covered by this new service?.
If you are in one of these towns and would like more information you can call one of our team on 01769 576 339 or go to our website www.southmoltonrecycle.com where you can find more information on the services that we offer.
|
|
| 16th November 2009 |
| Awards for North Devon recycling centres |
 |
South Molton Recycle Wins 'Most Improved Recycling Rate' - Ian Whattingham, CARC Manager Recieves Award
South Molton Recycle recognised at an annual Devon County Council awards ceremony.
Devon County Council has held the internal competition for its recycling centres since 2005 in order to reward the efforts of site staff.
The most improved recycling rate went to Maclins Quarry at South Molton, which improved by more than 12%.
Sarah Portsmouth, MD of SMR said ?we are delighted to have won this award, our staff at our Recycling Centre in South Molton have done a fantastic job raising the recycling rate by such a staggering amount and they should be really proud of themselves. I would also like to thank all of the local people for their support and help in achieving this fantastic result for our local community?
Councillor Roger Croad, Devon County Council Cabinet Member for Environmental and Regulatory Services, said: "Our recycling centres are incredibly busy and they play a vital role in encouraging householders to recycle more.
"Well done to all of the award winners and congratulations to all of our recycling centres which across the board are achieving impressive recycling rates and are continuing to improve on them. Praise should also go to people who use our centres because they are helping the county increase recycling and reduce the amount of waste that goes to landfill."
Devon County Council has 28 recycling centres and rural skip sites. In 2008/09 they achieved an average recycling rate of more than 73 per cent which contributed to the county's overall recycling rate of 51.6 per cent.
|
|
| 29th October 2009 |
| Recycling fuel |
|
South Molton Recycle Goes Greener!
SOUTH Molton Recycle has started to use biodiesel fuel, made from recycled vegetable oil, in its transport fleet in an effort to further reduce its carbon footprint.
The community recycling business currently collects from more than 30,000 homes and 1,000 businesses and operates some 25 vehicles.
Operations Director John Billingham said: "As a company our aim is to protect the environment and reduce pollution. We are always looking for ways to reduce our carbon footprint and so it was a logical step for us to use a fuel made from recycled waste.
'There has been a lot of discussion around the issue of people travelling by car to recycle. In this case we collect from the doorstep, using fuel with far less emissions. It's a win-win situation. These kinds of business partnerships make a really positive impact on our local communities."
MD Sarah Portsmouth said ?it fits in totally with our ethos, the fuel produces around 78% less CO2 emissions than normal diesel and is the only road fuel available in this country to be acknowledged by Friends of the Earth as being carbon neutral. It is a very exciting partnership for us and our vehicles are running brilliantly on the new fuel?
Greenearth, based in Crediton, manufacture and supply the biodiesel, made exclusively from waste vegetable oils.
Biodiesel produces around 78% less emissions than normal diesel and can replace or be mixed with normal diesel. It's also biodegradable.
Greenearth is based in the Devon town of Crediton and owned by Bill Brown, an experienced process engineer who has lived in Devon for some 10 years.
Bill's thoughts.......
' When you think that potentially, every bus, lorry and piece of plant could be running on recycled fuel, that's going to have a massive impact. I'm not trying to tell people how to live their lives or run their businesses, but if I can put waste to work in a way that helps the environment and saves people money, well, that just makes sense to me.
For more information about South Molton Recycle or Greenearth Biodiesel go to www.greenearth-biodiesel.co.uk
|
|
| 8th January 2009 |
| South Molton Recycle Awarded Social Enterprise Mark |
 |
Community business South Molton Recycle, provider of a range of recycling services in the Torridge area, is proud to have been accredited as the first organisation in the area to receive the new ?Social Enterprise Mark?.
The Social Enterprise Mark is a label which tells customers that a product or service is creating a social or environmental benefit. The Mark provides a simple way for social enterprises to advise customers about the wider social or environmental benefits they provide. It also gives these businesses a competitive edge in these economically-challenging times, because they are not driven by the need to generate profits for shareholders or owners. The Mark helps social enterprises to differentiate themselves from private business and any corporate social responsibility schemes because they are trading for people and planet.
Sarah Portsmouth, South Molton Recycle (SMR) Managing Director, commented:
?All of us at South Molton Recycle are very proud to have achieved the Social Enterprise Mark in recognition of our work. This scheme could have been designed with us in mind ? ?trading for people and planet? is exactly what we do. South Molton Recycle has been working in the area for almost 20 years. James Morrish is a keen supporter of our work for the people of Torridge, so we are delighted he presented the Mark to us.
There is a lot of press at the moment surrounding the crash in recycled material prices with some councils land filling their recycling because it has no value or outlet. However, Torridge District Council fully support SMR?s commitment to recycling and all SMR customers can have absolute confidence that all their hard work is not in vain, and it is continuing to all being recycled. Please continue recycling! if you would like to start or need an additional box for your recycling - please call our office on 01769573081. SMR would like to thank each and every customer for their support.?
James Morrish, Leader of Torridge District Council presented the Social Enterprise Mark to South Molton Recycle at the Council?s Riverbank offices today. Commenting on the award, he has stated:
"The Council really values the important work that South Molton Recycle does locally, ensuring that household recyclables are recycled rather than thrown away. South Molton Recycle's work brings double benefits to local people, reducing waste and landfill and reinvesting surpluses for the benefit of the local community. We are so pleased that South Molton Recycle is the first organisation in the district to receive the Social Enterprise Mark, bringing a great accolade to our locality, and building our credentials to be green."
Anne Mountjoy, Marketing Manager at RISE added:
?RISE is thrilled that South Molton Recycle, and more social enterprises are achieving the Social Enterprise Mark. We are particularly pleased that James Morrish from Torridge District Council presented this award. We believe that councils should be leading the way in buying from businesses that can prove their environmental or social credentials, rather than those using ?greenwash?.?
The Social Enterprise Mark is the only label of its kind that is open to all types of social enterprises that successfully meet a set of qualification criteria. The Mark is being piloted in the South West before being rolled out nationally within the next year or so.
|
|
| 28th July 2008 |
| NEW RED RECYCLING BOX FOR BUSINESS LAUNCHED |
 |
?Coming to a Business Near You? FIRST IN COUNTRY TO OFFER NEW RECYCLING SERVICE TO SMALL BUSINESSES IN DEVON
After being inundated with requests to provide a scaled recycling collection service for smaller businesses that do not have the space for separating their recyclable materials into wheelie bins, South Molton Recycle, a local not for profit community business, have responded by launching their new Red Box Kerbside Service. Recyclables can be mixed in a 55 litre box (same size as the green box for household collections) and are sorted into the various recyclable materials aboard a customized vehicle at the kerbside. You have one box (or more) for mixed recyclables and one box for your newspapers and magazines. This is one of the first collections of its kind in the UK combining small boxes and a kerbside collection for the smaller business.
Sarah Portsmouth, Managing Director of SMR said ?we have always been ground breaking in providing access to recycling for everyone whether they are householders or a small or large business. Small businesses are often forgotten by larger operators and the services they offer do not suit them. SMR is proud to offer this new service to every business across North Devon and Torridge and is initially aiming at small businesses in town and village centres that do not have the space for larger containers? she continued ?It also means that businesses already actively recycling can now recycle more, the recyclable items that didn?t warrant their own wheelie bin can now be mixed in the Red Box?. South Molton Recycle brought kerbside recycling to all households across the area starting back in 1991, ten years before the Government targets for recycling were introduced in 2001, Ms Portsmouth said ?it is a natural progression for the company to afford all businesses access to high quality, service orientated, recycling at affordable prices, reducing their waste costs and diverting as much as possible from landfill?
If you are interested in joining the scheme or would like more information, please contact SMR on 01769 576339 email trade@smrl.co.uk or log onto the website www.southmoltonrecycle.com
|
|
| 11th June 2008 |
| Steel packaging recycling in Devon gets a helping hand from Corus |
 |
Residents and businesses in North Devon and Torridge are benefiting from more efficient steel packaging recycling as a result of help from Corus and Not-for-profit community recycling organisation South Molton Recycle Ltd.
South Molton Recycle collects recyclable materials from more than 30,000 households on behalf of Torridge District Council but, until recently, sorted aluminium from steel packaging by hand, which was inefficient and could often result in lower quality recyclate. With a successful track record in recovering steel from household waste, South Molton Recycle was also keen to ensure that businesses, particularly those in the North Devon tourism and hospitality trades, had the collection facilities to recycle steel packaging.
By providing South Molton Recycle with a new can sorter and baler, Corus has helped to significantly increase capacity to process steel packaging in the local area. As a result, it is expected that 600 tonnes of steel packaging per year will now be processed by South Molton Recycle in preparation for recycling by Corus.
Sarah Portsmouth, Managing Director at South Molton Recycle, comments: ?Having the necessary equipment to sort and bale the steel packaging collected for recycling is fundamental to the quality of steel that we can send back to Corus. Businesses as well as householders are so much more aware of the recycling potential of their packaging materials these days, providing us with more opportunities to collect steel packaging to be recycled. With Corus? help in supplying two pieces of vital equipment, we are now able to run a more efficient service.?
Robert Jenkins, recycling projects manager for Corus Steel Packaging Recycling, comments: ?Household recycling rates are increasing, with more than 90% of local authorities now collecting steel packaging at kerbside; however, ?away from home? recycling does need more attention. South Molton Recycle is very forward thinking in its approach to recycling and its business collections will help to increase the amount of steel packaging recycled, diverting even more waste away from landfill.?
For further information on steel packaging recycling, visit Corus? dedicated educational website at www.scrib.org or www.cspr.co.uk.
|
|
| May 2008 |
| SOUTH MOLTON RECYCLE SAYS THANK YOU TO THE PUBLIC FOR THEIR SUPPORT |
 |
SOUTH MOLTON RECYCLE WOULD LIKE TO SAY FAREWELL AND A HUGE THANK YOU TO THE PUBLIC OF NORTH DEVON COUNCIL AREA FOR THEIR SUPPORT AS THEY HAND OVER THE COLLECTION CONTRACT TO NORTH DEVON COUNCIL
South Molton Recycle would like to thank all of the public throughout North Devon and Torridge for supporting us over the past 17 years and making household recycling the success it is today. It will be the first time that recycling has been collected by anyone other than SMR from the 42,000 plus households across North Devon Council district, although Torridge householders (over 28,000) will still benefit from SMR continuing its contract to collect the household recycling throughout their district.
Although a great disappointment to the company and in particular Sarah Portsmouth, the Managing Director, this change, rather than being detrimental to the business, has provided the impetus for SMR to consider other avenues for promoting recycling. For example, to do what we do best ?to expand and build on the successful recycling service for businesses (as we did with households), facilitating further processing of recyclates and even local reprocessing of collected materials.
She said 'I would like to say a huge Thank you to everyone who has helped to make the service such a success, from the members of the public to our staff' she continued 'recycling is very close to my heart, my Dad founded the service 17 years ago and after his death two years ago from cancer it is hard to see the North Devon part of the service pass to someone else to operate. We have offered to give any help we can to North Devon Council so that the service level remains high, but as yet they have not taken us up on our offer'
SMR will continue to operate the Civic Amenity Site at Maclins Quarry, South Molton and is opening an extra day from 16th May so that the site will be open Thursday, Friday, Saturday and Sunday?s. Please see website for more details. (www.southmoltonrecycle.com)
SMR Phoenix:
On 1st April 2008 SMR?s reuse shop has been made into a Charity that will focus on our social aims. A key objective is helping disadvantaged people in the local community get skills and experience, currently in delivery and collection of reusable items and retail experience, but when our new premises is up and running, we will also offer workshop qualifications in woodwork, metalwork, furniture restoration and electrical refurbishment. We would like to have an internet café & coffee shop area as a meeting place as currently we cannot offer this to shoppers. We would also like to have an area that encourages and offers local trades and goods for sale to help smaller businesses or individuals with an outlet for their goods.
Due to the loss of the NDC collection contract, SMR has to make sure that all areas of the business are self sustaining. The reuse shop has always been helped from any profits made by the rest of the business. Unfortunately this could not continue due to the loss of such a major contract, and therefore the trustees had to make the decision to reduce staff numbers and consequently the shop opening times from 6 days to 5 days per week, but this is only in readiness to move sites and expand in the future.
|
|
| 6th March 2008 |
| Torridge District Council Press Release |
 |
QUALITY RECYCLING COLLECTION SERVICE CONTINUES THROUGHOUT TORRIDGE
Torridge District Council is pleased to announce a re-negotiation of the existing contract with South Molton Recycle Limited (SMR Ltd) from April 1st 2008 to continue to deliver the successful and performance driven weekly recycling collection service. The revised contract will mean an improved service delivery to Torridge residents and will result in an increase in the recycling rate.
Torridge District Council Leader James Morrish said: ?Our proactive and progressive approach to improving our recycling service here in Torridge is an asset that we are very proud of. Lead Member for Waste and Recycling Councillor Adam Symons and I are committed to maintaining our close working relationship with South Molton Recycle Ltd. and are confident that our customers will remain pleased with the service we are able to provide?.
Ricky McCormack, Torridge District Council?s Head of Operational Services said: ?I am confident that the combined efforts of the Council and SMR Ltd with those of the Torridge residents will help us to meet the future Government set recycling target of 40% by 2010.?
Sarah Portsmouth, Managing Director of SMR Ltd., said ?We are delighted to continue the work we started over 16 years ago working in close partnership with TDC, we want to move forward from the issues last year with NDDC and provide the residents of TDC with a quality service as well as continuing our company?s aims of increasing recycling, lowering the amounts sent to landfill and helping disadvantaged people back into the workplace?.
John Billingham, Development Director at SMR Ltd. added ?we are now moving forward in partnership with a progressive, forward thinking Council who are committed to recycling and providing a quality service to their taxpayers. We both have a firm commitment to partnership working which is at the forefront of government policies and is the way forward.?
Torridge District Council is committed to the protection of the environment and improving its recycling services.
|
|
| 17th January 2008 |
| Overview & Scrutiny Committee Outcome |
|
The Three questions the Committee had to decide on were:
4.1 ?There are serious differences between those figures reported to the Executive as being the tender price and the figures SMR claim to have submitted?
4.2 ?The full cost implications to the Council of bringing the service in-house were not considered by the Executive?
4.3 ?The decision taken by the Executive carried considerable risk to the Council?.?
Taken from the NDDC Constitution: Powers of the O&S Committee:
The Overview and Scrutiny Committee in exercise of its call-in powers whether by fast track procedure or in all other cases may only take the following decision:-
a. Make no comment on the decision
b. Support the decision with reasons therefore
c. Express reservation regarding the decision, record what those reservations are, but decide not to refer the decision back to the Executive decision taker in this instance
d. Require the decision taker to reconsider the decision for the reasons set out by the Committee
e. Where the Committee considers the decision to be contrary to the policy framework, or contrary to or not wholly in accordance with the budgetary framework, request Full Council to consider the issue for reasons set out by the Committee.
The Overview and Scrutiny Committee met on Wednesday night to hear evidence from a panel of Officers and the Lead Member for Waste and Recycling. There was a presentation to O&S members showing the sheet of figures that was given to the Executive on which they based the award to take the service back In-house. They also presented background figures and information and took questions from Members regarding the figures presented.
During the questioning the panel agreed that the figures and reports in the press stating SMR demanded £134 per tonne from November 2007 were false and misleading and they should not have appeared in the report presented to the Executive Members. Therefore the 37% increase was also false and misleading.
In the report to the Executive of 10th December 2007, in para 5.7, it states that ??in addition SMR have lodged two further claims to cover increased costs. The first is a backdated (to April 2007) claim to increase to £114 per ton and the second is to increase to £134 per ton from November 2007. ?.?
Sarah Portsmouth, Managing Director of SMR said:
?The reason why the decision to award the contract to SMR was not followed through with as per members decision in July 07 has been found to be factually incorrect (a claim for £134 as part of the tender negotiations) and was presented to members in a misleading manner. The failure to officially award the contract as at September 24th (2 months after the award) is what lead SMR to issue notice on the current interim contract. If NDDC officers had carried out members instructions in July they would not be in the situation they now find themselves. SMR is very pleased that the truth is now starting to come out and welcome a public enquiry into the matter as this process has only scratched the surface.?
It also became apparent through the scrutiny questions that the budget had been hurriedly put together and it differed greatly from the budget the panel presented to the Executive in July. In July the In-house cost was £1,047,712 with it dropping to £319,719 in the December report. This was explained by the panel as being a provision for depot costs which had now been removed because they had bought one (which would mean that they were looking at paying £727,993 each year for a depot). Also that they were assumptions and not based on fact as they had not asked SMR for the actual staff costs nor got quotes for the vehicles they intend to hire, so the budget figure put forward would rise if these assumptions were incorrect.
In the report to the Executive of 17th July 2007 it states in para 5.6?. ?An exercise was carried out to estimate the cost of providing the service in-house, taking into account the current delivery methodology and factoring in prudent safeguards to ensure that the Council could deliver the service reliably and safely. The estimated costs of providing the service in-house were extremely close to the tendered price submitted by SMR and came out at £1,047,712.?
In the report of 10th December 2007, the budget figure that is shown for taking the service In-house is £936,185, less income from material sales & recycling credit claimed by the Council, brings the cost down to £319,719.
It was later discovered that the figures did not include depreciation of assets (Roundswell site, capital equipment needed to operate) or rent to the Estates Department who are the department that own the asset. It also did not include a share of the Council back office costs (Management team ? Chief Exec. Etc. Human Resources, Payroll, Health & Safety, Accounts, Auditing) this was explained as there already being spare capacity in the Council staff to take on this additional work at no extra costs (are they under utilised at present then, is the question?)
It was found to be unrealistic and not in line with usual Council accounting practices to leave such items out of a budget for a service to be provided by the Council.
They are also to fill two posts that have remained vacant for the last year to help manage the contract. These positions are not included in the budgeted accounts presented to the Executive.
Staff costs are greatly under estimated due to the unrealistically low provision in the budget submitted. It is lower than SMR currently pay those staff and when you add on Local Authority Pension contributions it increases NDDC?s budget staffing costs by between 27-42%. The repairs and Maintenance is also under estimated by 62% - so when you start adding up all of these facts is brings the Council budget very close to the SMR budget which means that only a slight miscalculation in another cost centre (of which there are many) such as the vehicle leasing costs (by 20% which is within the other under estimates) would mean that SMR?s bid was cheaper to the Council Tax Payer. (even without NDDC?s depreciation and Council Overheads being apportioned to this service).
SMR has great concerns for the continuation of the service level especially during the hand over period.
Sarah Portsmouth, SMR?s Managing Director said :
?We have great concerns for the service, as current operators of the service the risk and responsibility the Council is taking on with this and the possible cost implications to the Tax Payers could be huge, NDDC do not have experience in collecting recyclables only in picking up a bag or wheelie bin and putting the contents into the back of the truck and discharging it at the landfill site, there is a lot more to Recycling especially if you do it properly.?
She went on to say
?I am a Council tax payer of NDDC and SMR has always worked in the best interests of the Council Tax Payer, we are challenging the Executive decision because as the current operators we know that the figures they are presenting are grossly under estimating the costs of providing the service, if NDDC could put forward and convince me that the figures were genuine I would be very happy as a Council Tax payer for them to take the service In-house, unfortunately I have yet to be convinced, the O&S Committee raised some very important points that remain unanswered, I hope that the Executive will fully look at all implications of any decision?
The decision was taken on Thursday night to refer it back to the Executive where a special meeting has been called for Monday to re-look at the decision.
John Billingham Director at SMR said :
?we hope that it will be a decision based on common sense and not based on political persuasion, we want the best for the Council Tax Payer not a decision based on a political party line. SMR would be happy to negotiate another interim agreement as is in operation presently from just such a situation they found themselves in in 2005, this would allow them to properly consider their options of re-tendering the service properly or taking the service In-house?
Based on Mike Mansells statement that the presentation given to the O&S committee and the background papers had not been given to the Executive and that the Risk Assessments of taking the service In-house had not been carried out and the admission that the figures presented to the Executive regarding SMR were misleading there was no choice but for the O&S members but to pass the decision back for the Executive to re look at.
The decision was carried with 9 members voting for and 4 against the decision to be returned to the Executive. This is the first time in the history of the Council this has happened.
Unbelievably 4 members voted that Executive had had the information although the Panel told them that they had not. This was a Conservative move to try to stop the decision being referred back to the Executive. Not based on evidence given during the hearing in which it was categorically stated by the officer they had not had the information.
John went on to say;
?this is a very big decision with large operational and financial cost implications and must be a fully informed decision as the Executive and Officers will be responsible for the decision and it?s implications both financially and operationally?
Sarah ended by saying :
?I would like to thank all the members of the public who have come up to our staff, called, emailed and left notes on boxes, the public support for SMR is overwhelming and it means a lot to all the staff and myself personally. I would also like to thank the members of the O&S Committee for their commitment to having an unbiased hearing and for coming to the right and only decision?
|
|
| 2nd January 2008 |
| SMR - The Story Behind The Headlines |
|
In November 2007 NDDC controversially terminated the contract for household recycling with SMR. Within our contract terms we have been legally constrained from putting forward the situation as we have experienced it but this is our side of the story:
Over the past 16 years SMR, who are a socially, ethically motivated non profit distributing community business rather than a commercially driven company, have worked in close partnership with NDDC to conceive and provide a kerbside dry recycling service for the residents of North Devon.
In 2005 NDDC had an audit report which criticised the council for not having a formal contract with SMR; ?the arrangement with the contractor to provide the service does not meet the requirements of European Procurement Regulations or comply with the councils own standing orders or financial regulations and does not give adequate safeguards to either party.? As a result of this criticism NDDC asked SMR to sign a basic contract to allow NDDC time in which to complete the required tender process. It was never intended as a long term agreement. Unfortunately at the time SMR?s Managing Director, Steve Portsmouth ? ?the king of recycling?, was terminally ill and the signed agreement was dated 5 days after his death.
In the lead up to the tender process NDDC had expressed concerns about the level of service that SMR could provide which had been constrained by the levels of previous funding. This led directly to SMR making much needed investments from their reserves in order to address these concerns and sustain the current level of service with the increasing tonnages being collected. As the tender process progressed further investments were required which were made on the basis of constructive negotiations and the verbal assurance and minutes of the award of the tender by the members of NDDC. SMR continued and accelerated its investment programme in preparation for the new contracts.
? Late 2006, NDDC issued an incomplete invitation to tender (ITT). (1.1, 1.2)
? November 2006, SMR returned a compliant tender along with other
bidders. (1.5)
? Tender meeting held in which it was verbally stated that the tenderer must find a site on which to operate the refuse and recycling. (1.3, 1.4)
? When tenders were returned, NDDC realised that it could not afford to pay for the high service standard that it had specified within the tender document; once a tender is issued it cannot be changed legally.
? SMR identified the Roundswell site and asked NDDC if they had any interest in it. (2.1)
? NDDC replied that they knew of the site but had discounted it. (2.2)
? SMR proceeded with an in depth assessment and feasibility study of the site.
? SMR submitted a bid that NDDC were aware of, the same day NDDC visited the site and then submitted a bid themselves.
? After discussions with NDDC, SMR agreed to withdraw its bid to avoid a bidding war.
? SMR passed over research that it had done on the site to NDDC.
? NDDC purchased the site in summer 07.
? Early 2007, SMR has reason to believe that NDDC carried out a ?ghost bid? to assess the capability and costing of taking the service in house. (1.7)
? April 1st 2007 tender contract start date.
? In early April NDDC invited SMR to enter into negotiations using SMR?s open book variant bid in which transparent Partnership working and mutual trust were key components. At this juncture the tender process was in jeopardy. (3.1-3.4, 4.1-4.2)
? SMR continued negotiations to try to rescue the tender process, presenting the open book variant as a solution, avoiding a market failure which would force the council to re-tender and would inevitably mean more costs to the tax payer. (4.1-4.2)
? SMR carried out extensive work to reduce the first and second year budgeted costs which even included reducing their already low management fee and profit (reduced from 4% to 3%). (4.2)
? SMR notified NDDC on 14th May of the imminent expiry of the 180 days in which the tender remained valid (4.3)
? NDDC wrote to SMR inviting them to extend the acceptance period until 12th August 07.
(4.4)
? SMR wrote back to NDDC accepting the extension whilst pointing out that SMR was currently operating the contract at a loss and therefore requested additional funding. A small increase was awarded but not enough to cover all the costs being incurred. (4.5)
? SMR had not previously applied all of the annual RPI increases due in order to keep the costs of providing the service as low as possible for the councils. This was done in the spirit of partnership working. (4.5)
? If SMR had applied the RPI increase year on year (which is industry standard) it would currently be receiving more than SMR was requiring in the modified first year budgets.
? SMR awaited the outcome of the executive meeting where the tender was to be awarded.
? NDDC awarded the contract to SMR in its executive meeting on 17th July 07 with the following members present, as per the minutes: (4.6)
1. Cllr Mike Harrison
2. Cllr David Brailey
3. Cllr Richard Edgell
4. Cllr Eric Ley
5. Cllr Malcolm Prowse
6. Cllr Faye Webber
7. Cllr Colin Wright
? Officers of NDDC advised SMR verbally that their tender had been successful.
? It is a requirement of the procurement process that the successful tenderer be notified in writing of the award as soon as possible; although to this date SMR has not received any written confirmation of this award.
? On the 12th August 2007 the extension deadline was reached but due to the verbal assurances of NDDC officers this did not unduly concern SMR at that time.
? No further extension of the acceptance period was requested by NDDC.
? During August and early September 2007 NDDC & SMR were in the process of examining the possibilities of a joint operation of a depot on the Roundswell site recently acquired by NDDC. (4.7)
? SMR submitted its basic requirements for the site. (4.7)
? By early September 2007 SMR?s financial situation with regard to the kerbside contracts was a cause for serious concern. The lack of formal written notification and implementation of the new contract was threatening the viability of the company.
? In mid September SMR approached the council with the aim of progressing and finalising the basic terms on which the variant would be operated, in an effort to bring negotiations to a conclusion so the new contract could become operational. (4.8)
? NDDC then notified SMR that they were looking at bringing in a third party to operate a major component of the contract. Without this component SMR?s variant proposal was not financially or potentially operationally viable. Negotiations with the third party were undertaken without SMR?s knowledge and were outside the legal requirements of the procurement process. (5.1)
? NDDC?s action also had the affect of destroying a key component of partnership working, namely trust, since negotiations with the third party must have been taking place for some time without SMR?s knowledge or involvement.
? This is the point at which the relationship broke down.
? Late September SMR issued a letter requesting that their position be made clear and a heads of terms be entered into in an attempt to re-stabilise the situation. (5.2)
? This was responded to by NDDC with a refusal based on procedural points. (5.3)
? This left SMR no option but to take expert legal advice to clarify the legal position. (5.4)
? After receiving this advice SMR replied to NDDC on 5th November 2007 giving 6 months notice on the interim contract that SMR was operating under at a loss. (5.5)
? As a non profit distributing social enterprise with very low profit margins SMR is unable to absorb a loss for any period of time and certainly not on an indefinite basis. SMR had no alternative than to serve notice on the interim contract. The directors of the company were legally obliged to take this course of action as continuing on this basis would eventually lead to bankruptcy.
? In a final attempt to salvage the situation SMR included in that letter an option to re-instate the tender or any of the variant proposals within 14 days. (5.5)
? TDC was issued the same letter and have returned to the negotiating table. Extremely productive negotiations are now taking place to secure the service for TDC. (7.1-7.2, 5.1)
? NDDC requested an extension to the 14 day deadline. (5.6)
? SMR agreed to a 7 day extension. (5.7)
? SMR has always been anxious to reach agreement but has been continually frustrated by NDDC?s unwillingness to do so.
? It was envisaged that negotiations would continue with both councils and the contract awarded based on those negotiations. (5.10)
? Since 24th September there has been no communications from NDDC apart from short, carefully worded responses to our correspondence.
? The first thing that SMR knew of press involvement was when the receptionist at SMR was contacted by the North Devon Journal on Tuesday 20th November and asked to comment on the fact that SMR had lost the contracts. It later emerged that an officer of NDDC had contacted the Journal and released the story for a front page. (6.1)
? NDDC subsequently claimed that SMR broke the news to the press, which was untrue
? Due to confidentiality clauses within the current contract and the ITT, it has been extremely difficult for SMR to defend its position in the public domain.
? With increasing press involvement, various supporters of SMR have tried to facilitate an understanding of the reasons why SMR has been forced into taking this regrettable course of action. These attempts are being met with strong opposition from certain key council members. (6.1-6.4)
? The factual timeline above is intended to clarify a complex series of events to provide a basic understanding of the situation and the actions taken by SMR.
? SMR has documentation to support the above
? SMR would be very happy to present a full presentation to any interested parties.
SUMMARY:
1. SMR tendered for the contract
2. NDDC executive committee awarded the contract to SMR
3. NDDC officers failed to implement that award
4. SMR could no longer carry on making a loss on the interim contract while it waited for NDDC to award the tender
5. SMR served notice on the interim contract but left the door open for NDDC to come back and negotiate on the tendered contract
6. NDDC refused
SMR did serve notice on its interim contract
SMR did withdraw its bid but left the door open
WHY?
Because of the above sequence of events and SMR were appalled that after 16 years of partnership working they would be treated in the manner in which they have been.
Below is the extract from the minutes of the meeting of 17th July 2007;
KERBSIDE RECYCLING CONTRACT AND BULKY
HOUSEHOLD COLLECTIONS
The Executive considered a report by the Chief Financial Officer
(previously circulated) regarding the Kerbside Recycling Contract
and Bulky Household Collections.
DECISION
(a) That the Kerbside Recycling contract be awarded to
South Molton Recycle Limited in line with the financial
implications outlined in paragraphs 6.1 to 6.3 of the
report.
Executive: 17 July 2007
9
REASONS FOR DECISION
(a) National priorities for recycling have evolved over recent
years and significant increases in targets and collection
rates have required the authority to re-negotiate its
current arrangements for Kerbside collections.
|
|
| |
|
|
 |
|
