2014-07-22 Infrastructure & Services Committee Agenda

INFRASTRUCTURE & SERVICES COMMITTEE MEETING AGENDA                                      22 JULY 2014


2.    Contract Extension Provisions

Details of the contract terms and extensions available are detailed below.

Separable Portions A and B have an initial term of 6 years from 1 st September 2008 to 31st
August 2014. These portions make provision for Council to extend the contract for an a period of
2 years at the discretion of Council and Council may extend the contract after that initial
extension for an additional period of 1 year.

Separable Portion C was let with an initial contract period of 3 years, an extension was available
for a 3 year extension to August 2014 which has already been taken up. A further 3 year
extension is available until 2017. However, staff have negotiated with Cleanaway to only take up
2 years of the available 3 years to align the 3 separable portions to extend to August 2016.
Portion C would be extended to 2017 if Portions A and B were extended to 2017.

All extensions available to council are at Council’s discretion by notice to the contractor and the
Contractor is obligated to undertake the extension if required by Council.

Table 1 Summary of Contract terms and extensions available.

               Initial Term               1st Extension              2nd Extension
Portion A      1/9/2008 to 31/08/2014     1/9/2014 to 31/08/2016     1/9/2016 to 31/08/2017
Portion B      1/9/2008 to 31/08/2014     1/9/2014 to 31/08/2016     1/9/2016 to 31/08/2017
Portion C      1/9/2008 to 31/08/2011     1/9/2011 to 31/8/2014      1/9/2014 to 31/08/2017
Negotiations                              3rd Extension              4th Extension
Portion C
Portion C                                 1/9/2014 to 31/08/2016     1/9/2016 to 31/08/2017


3.    Contract extension negotiations

During the 6 year term of the contract and through amalgamation and deamalgamation certain
issues have arisen that required negotiation in preparation for the extension of the contact. A
summary of the significant contractual negotiations are detailed below. Most will involve a cost
saving to Council or improved service delivery.

1.    Regarding the recent connection of the landfill to sewer for disposal of leachate.
      Cleanaway will continue to pay Council the costs previously paid by Cleanaway for
      transporting leachate to sewer to assist Council to offset costs payable to Unitywater of
      trade waste disposal to sewer.

2.    Agreement to reduce the period of extension for Portion C from 3 years to 2 years to align
      with the extension periods of the other Portions and if other portions are extended Council
      can offer a further 1 year extension to align with Portions A and B.

3.    Agreement to use the garden waste vehicle previously used for servicing Sunshine Coast
      Council to extend the garden waste service area to rural townships Cooroy, Pomona and
      Boreen Point and other areas if service take up makes service provision viable.

4.    No payment to Cleanaway for 50% share of sales of mulch at Cooroy and Pomona.
      Council to take over the management of green waste stockpiles from Cleanaway.

5.    Phasing out of 140 litre waste bins by not providing any new bins but continuing to service
      the existing small number of 140 litre bins existing until the end of the contract.

6.    Cleanaway to assist with trial recycling services for the Hastings Street area.

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