The Brent Cabinet is recommended to bring the litter patrol service, currently provided by Kingdom Limited in a pilot programme, in-house when the pilot finishes:
The pilot has been a helpful exercise and the performance has been shown to be good. Operating issues around the application of this type of service in Brent are now properly understood. The FPN (Fixed Penalty Notice) issue rate has exceeded projections, payment rates, income have been stronger than projected, and a number of ‘added value’ services have been successfully trialled. It is therefore recommended that the Council now plans to continue providing this service, beyond June 2017, on a long term basis. The review suggests that an in-house service, delivered along the same operating lines as the pilot contract, may offer the best long-term value for the council.
Without any explicit reference to Cllr John Duffy's LINK concern that the Council was losing potential revenue through out-sourcing the service there is a recognition that, despite a greater risk to the Council, that an in-house service would generate greater income for the Council:
The issue is therefore to consider the likely surplus that the council would make
if it ran the operation in house. Using the same figures for ticket issue and
collection rates (which therefore implicitly assumes that the quality of service
would be the same) the council could expect to issue 5,962 FPNs in a year (i.e.
twice the amount issued in the pilot six months). The gross income for these
would be £0.477m if all were paid.
The collection rate has been established, in paragraph 8.6, as being around
85%, so total income would be £0.405m. Paragraph 6.2 has set out that the
likely cost of an in house team would be around £0.25m (£15k of which would
be up-front, year 1 equipment costs only), which would imply a surplus under
the in-house option of £0.155m.
There is therefore a reasonable expectation of a modest additional surplus
under the in-house model compared to the option of procuring a new contract.
Provided that the reasonable expectation was that the operational performance
of in house service would be at least as good as that provided by a private
contractor then the financial evaluation would support a conclusion that the
service should be provided in house.