2017-10-10 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                              10 OCTOBER 2017


3.   Charging structure for 1,100 litre cardboard service

Council’s 2017/18 Revenue Statement does not include a rate for a 1,100 litre cardboard service.
As such the only current available method of charging is by amending Council’s schedule of
commercial charges and to invoice customers in lieu of issuing charges on a rate notice. The
method of charging would be addressed when developing the Revenue Statement for the
2018/19 budget.

The proposed charge would incorporate the direct contractor’s cost to collect the material, and
overhead costs less the anticipated revenue for cardboard sold. Council’s waste pricing model
has been updated to incorporate the new charge, which has resulted in a proposed charge of
$8.50 per week to ensure appropriate full cost pricing recovery.

Previous Council Consideration

Ordinary Meeting, 15 December 2016, Item 7, Page 10
That Council note the report by the Manager Waste and Environmental Health to the General
Committee Meeting dated 12 December 2016 regarding the new 7 year waste management
contract 2017 - 2024, and:
A    Award the Contract to Cleanaway Pty Ltd for performance of a Waste Management
     Contract 2017 – 2024 as detailed in tender documents under Separable Portions A, B, and
     C, for an initial period of 7 years (at an estimated contract value of $46 million)
     commencing on Friday 1 September 2017, and including the ability to award a first
     extension of contract for a period of two years and a further second extension of one year;
B    The awarding of the Contract being subject to Cleanaway Pty Ltd paying the specified
     Contract Performance Bonds for each Separable Portion A, B and C as detailed in the
     tender documents;
C    Accept the option provided in the tender documents for the introduction of a 3 bin waste
     collection service to single unit domestic dwellings in the urban areas to include a third bin
     for garden waste from September 2017 as detailed in the tender documents, Part E
     Annexure 1, Schedule 1 “10 Maps detailing the external boundaries of Township Areas”
D    Agree to the continued provision of an optional garden waste collection service to
     commercial and multi-unit domestic premises and other premises within 5 kilometres of the
     identified urban garden waste service area;
E    Request that staff develop a Policy for the provision of the garden waste service and report
     to a future meeting of Council;
F    Engage King and Company to finalise the relevant contractual documents including
     amendments resulting from contract negotiations and agreed contract departures, for
     signing by the successful tenderer.

Finance & Risk

Finance

The price paid for cardboard is volatile and can fluctuate on the commodity market between $30
and $140 per tonne. Any revenue generated under this agreement is shared with Cleanaway
under the terms of the Waste Management Contract. The 1,100 litre cardboard service compares
more favourably than the current approach of transporting the material to the Bli Bli MRF and
paying a disposal and processing fee (expense) per tonne.




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