2014-03-25 Infrastructure & Services Committee Agenda

INFRASTRUCTURE AND SERVICES MEETING AGENDA                                        25 MARCH 2014


The agreement initially offered by SCRC specified a non-industry standard low compaction rate
for materials in the collection vehicles. It also specified a new gate fee per tonne for the
acceptance of material for processing and there was no offer to share in the revenue returned to
SCRC.

Noosa staff responded to this offer by seeking options on:

•    Amendments to the proposed agreement from SCRC;
•    A separate proposal from VISY Recycling, and
•    Costing from Cleanaway to transport recycled material to a recently constructed facility at
     Hervey Bay, owned by Cleanaway.

4.   Further Proposals Received

SCRC varied its offer by increasing the allowed compaction rate per cubic metre for material in
collection vehicles but did not reduce the gate fee per tonne for material delivered for processing.

The VISY proposal offered industry standard compaction rates in collection vehicles and a lower
gate fee per tonne. The pricing structure proposed by VISY is on a sliding scale depending on
the percentage of contamination of the recyclable materials.

The definition of contamination includes as examples:
•    Garden waste
•    Food scraps
•    Timbers
•    Polystyrene
•    Old clothes
•    Personal hygiene products
The lowest price is based on contamination levels of less than 9.99%. The price doubles for
contamination rates of between 10.00% and 14.99% and increases five-fold for contamination
levels of more than 15%. The current contamination rates for Noosa recyclables currently sits
around 5 to 6%. It is therefore important to ensure that the community is aware of this price shift
to enable contamination rates to remain low and therefore reduce the cost to the community.
Cleanaway provided a written proposal to transport material to Hervey Bay. Given the high costs
proposed due to the large distance involved, this offer was not progressed.

5.   Confidentiality

Offers by VISY Recycling and SCRC specify non-disclosure of the terms of the draft agreements.
Details of the pricing and contractual conditions therefore have to be reported in the confidential
session of the Infrastructure and Services Committee meeting.

6.   Most acceptable offer

The VISY proposal presents the best value proposal available to Council.

Previous Council Consideration
Refer to background information above.




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