2017-04-11 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                      11 APRIL 2017


Some concerns were raised during the waste contract tendering process regarding Council
conducting potentially anticompetitive behaviour through introducing a 3 bin service (including a
fortnightly garden waste service) to single domestic dwellings in urban areas. These concerns
centred on the potential negative impact on businesses engaged in removing garden waste from
premises as part of a paid service.

To assess the risk associated with this issue, staff sought legal advice from King and Company
who advised it would be prudent for Council to seek the opinion of the Australian Competition and
Consumer Commission (ACCC) prior to any introduction of the 3 bin service.

Staff engaged AEC Group Pty Ltd to compile and present a report to the ACCC on Council’s behalf
regarding the proposal for the introduction of the compulsory 3 bin service to domestic premises.
The process included seeking comment from some service providers engaged in providing this
service now and estimating the potential impact on their business due to the introduction of the
garden waste bin.

Advice was received from the ACCC that it was not clear that the introduction of a 3 bin system
would in itself breach the competition provisions of the Competition and Consumer Act (CCA).
However if this did occur, both authorisation and notification would be formally required to provide
protection to Council from legal action for certain conduct that may breach the competition
provisions of the CCA where the public benefits from the conduct will outweigh the public detriment.
The ACCC also advised that Council could maintain a certain level of competition within the 3 bin
service to mitigate the impact on local competitors to largely maintain the viability of those business
operators.

To mitigate the risk of anti-competitive behaviour and minimise the impact on local businesses, an
undertaking has been given to service providers and to the ACCC that Council would not mandate
the third garden waste bin for unit complexes, or where the owner of a single dwelling employed a
service provider to remove garden waste.

5.    Waste Management Contract 1516T043 (2017 – 2024) - Specifications for Garden
      Waste Service Area

The new Waste Management Contract specifies the urban areas for the provision of a 3 bin
collection service in Part E, Separable Portion A, Schedule 1 - 10 maps detailing the external
boundaries of township areas.

It also specifies:
     The estimated number of new garden waste services to be provided from 1 September 2017
       at approximately 9,000 services over and above the almost 5,000 optional services that are
       currently being provided;
     A fortnightly collection of the garden waste recycling bins on the normal weekly service day
       for serviced premises, but on the alternate week to the recycling bin collection day;
     An optional garden waste service area within 5 kilometres of the defined township areas
       where the service is provided; and
     The contractor must deliver and service a 240 litre garden waste recycling bin or provide and
       service a larger 360 litre garden waste recycling bin where an owner requests a larger bin.

This information was relied upon by the contractor in providing tender prices for the provision of
the service. Any departures from the tender specifications would require a variation to the contract
through contract negotiations and may impact on the tender prices submitted.




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