Agenda item
Pilot Recycling Reward Scheme
Minutes:
Members were advised that the Borough of Halton had been developing a good recycling record and, with the support of local residents, it had currently reached a recycling rate of over 25%. The Council would like to support residents to do more and believed that reward incentives were a good way of encouraging residents to achieve higher levels of recycling, reduced levels of waste generation and the diversion of more waste from landfill. In addition to the environment benefits, the economic benefits of increased recycling had been highlighted in the Council’s Waste Management Strategy and Waste Action Plan.
As had also been highlighted in the Council’s Waste Action Plan, Halton had a predicted shortfall in Landfill Allowances from 2009/10. This shortfall, which would continue until 2014, when new waste treatment facilities were due to be in place, would necessitate either the purchasing of landfill permits or finding interim facilities that were available to divert more biodegradable waste from landfill during this period. Either of these two options would result in significant increased costs, as set out in the report.
Members were further advised that a communications campaign was currently being delivered throughout Halton, key elements of which included raising awareness of recycling and waste minimisation in Halton to encourage increased participation in the Council’s recycling services. This report outlined an innovative approach to increased participation and recycling rates even further and recommended that a Recycling Reward scheme be introduced, where residents would earn reward points for recycling which they were then able to spend at participating national retailers based in Halton and local retailers and businesses.
It was noted that Officers had been in discussion with RecycleBank, a
It was further noted that ReycleBank was the only company in the UK known to offer this precise product and, as such, the Executive Board were being requested to sanction, both in respect of a pilot scheme and a full borough-wide scheme, that an invitation be given directly to RecycleBank to deliver a Recycling Reward scheme in Halton.
Members were advised that the commitment to proceed arising out of this report was purely in relation to the pilot scheme. There would be no commitment to proceed beyond the pilot until the scheme had been evaluated and a further report would be presented to Members in March 2010. Subject to the completion of a successful pilot, and subsequent approval, it would be proposed that all households within Halton would be given the opportunity to participate in the RecycleBank “rewards for recycling” scheme within 12 months from the end of the pilot period, with the aim being to start in the Summer of 2010.
It was proposed that the recycling reward scheme would be introduced in two phases, commencing with an initial six months pilot scheme to approximately 10,000 properties by October 2009.
Members were advised that if the implementation of the
pilot scheme was approved, Halton would become only the second local authority
to introduce this programme in the country, and the first in the north of
Members were advised the scheme would be a voluntary “opt-in” scheme, only those residents who chose to participate would be included in the reward scheme. Only when a householder activated their account would RecycleBank begin to record the weight of recyclable materials associated to their household and give residents points for recycling. Householders would be able to choose to opt-in or opt-out at any time during the scheme.
It was noted that blue bins would continue to be collected using the Council’s current recycling collection vehicles that would be fitted with an automatic reader connected to on-board weighing equipment.
RecycleBank had identified
AMCS, a company it had worked with on a number or projects in the
It was further noted that RecycleBank would identify national retailers based in Halton, as well as local reward partners prior to the commencement of the scheme, and would continue to add more reward partners following the introduction of the scheme. It was estimated that residents could be able to earn up to £150 per household per year in rewards value.
The Council and RecycleBank would jointly produce publicity material that would be delivered to all households in the pilot areas. This would be to ensure that residents understood the benefits offered by the scheme, why the Council was introducing the initiative and also make sure that they were fully aware that the use of technology enabled them to earn rewards for recycling, and that it would not be used at any time to penalise them.
It was noted that average participation with Halton’s multi-material kerbside recycling service was 50%. It was expected that the reward scheme could increase participation with this service above 70%. It was also an aim that levels of recyclable materials collected could be increased by an average of 50-55kg per household per year. If the scheme were to be rolled out to all properties and with increased participation and materials collected per household, it was anticipated that this could yield in excess of a further 2,000 tonnes of recyclable materials per year, and the overall impact of the reward scheme could add 5% to the Council’s recycling performance. Other potential outcomes of this reward scheme were as set out in the report.
Members were asked to note that the full implementation of the recycling reward scheme would represent an “invest to save” as there were costs to the Council in 2009/10 and 2001/11, with the financial benefits being realised from 2011/12 and beyond. The financial implications of the pilot scheme, and indicative costs of the roll out beyond the pilot were set out in detail in the report. The cost of the operation of the pilot scheme would be £63,700. Subject to a successful pilot and the subsequent approval to roll out the scheme borough-wide, costs in 2010/11 would be as follows –
- The cost to install identification devices to the remaining blue wheeled bins was estimated to be £89,600 and the annual costs of maintaining the onboard weighing equipment was £11,400;
- An annual payment would be made to RecycleBank that would be based upon an agreed percentage of the savings made by the Council through the avoidance of waste disposal costs. This payment mechanism had not yet been finalised but would be contained in the report to be presented to the Executive Board in March 2010.
Members were advised that, based on forecasted additional recycling and waste diversion levels as detailed in the report, potential existed for savings of between;
· £62k - £88k in 2010/11
· £78k - £104k in 2011/12
· £94k - £120k in 2012/13
· £110k - £136k in 2013/14
The cost of delivering the pilot scheme would be met from existing waste management budgets and the report presented to Executive Board Members in March 2010 would contain further information on the financial implications of delivering the scheme borough-wide.
RESOLVED: That
(1) the Executive approve the delivery of a pilot Recycling Reward Scheme in Halton;
(2) a further report be presented to Executive Board in March 2010 following a review of the pilot Recycling Reward Scheme;
(3) relevant procurement standing orders be waived and RecycleBank be appointed to deliver the Recycling Reward scheme (both in respect of the pilot scheme and in respect of a full scheme in the event that it is rolled out borough-wide);
(4) relevant procurement standing orders be waived and AMCS be appointed to provide the necessary hardware and software to capture data for the pilot Recycling Reward scheme; and
(5) the Strategic Director for Environment be authorised, in consultation with the Executive Board Member for Environment, Leisure and Sport to take all steps necessary to develop and implement the Recycling Reward Scheme in Halton.
Supporting documents:
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