Linearized operators describing inter-species and like-species collisions have been discretized and implemented in the gyrokinetic Particle-In-Cell (PIC) code ORB5 [S. Jolliet, Comp. Phys. Comm. 177, 409 ( 2007)] based on the delta-f approach. Simulation results for neoclassical transport are compared with both analytical predictions as well as results from other codes. This new version of ORB5 including collisional dynamics thus makes it possible to carry out simulations of microturbulence starting from a global neoclassical equilibrium including self-consistent electric fields. First results of ITG microturbulence simulations carried out in this way are presented. The issue of numerical noise, inherent to the PIC approach and further accentuated by the implementation of collisions in the delta-f scheme, is addressed. It is shown how a noise reduction scheme based on a coarse graining procedure [Y. Chen and S. E. Parker, Phys. Plasmas 14, 082301 ( 2007)] ensures the physical relevance of such simulations. Furthermore, a novel delta-f algorithm is presented, which switches between a canonical and a local Maxwellian background for carrying out the collisonless and collisional dynamics respectively, and its advantages are discussed.