Bass Coast,

Council awards waste contracts

Updated on 5 August 2016

Bass Coast Shire Council awarded contracts for the Shire’s Waste Collection Service and Waste Facility Management and Operation Services in the closed session of the July Ordinary Meeting in Cowes last night.

Current service provider and local Bass Coast business, Wonthaggi Recyclers Pty Ltd, was awarded the contract for waste services (kerbside collection, litter bins and hard waste collection) and operations of Council’s transfer stations at Wonthaggi and Inverloch.

Ace Environmental Pty Ltd was awarded the contact for the operations of Council’s Grantville landfill and transfer station. Both contracts have a combined value of approximately $6.6 million per year for a 10 year period.

The decision was made in a closed session of Council due to confidentiality around contractual matters.

The commencement of the new contract will introduce two new services, the first being a resale shop at the Wonthaggi transfer station, and the second, being the introduction of a three-bin service.

New three-bin service

The commencement of the new contract in September 2017 will include the introduction of a three-bin system made up of a 240 litre weekly kitchen food and garden organics collection (including kitchen caddy); a 240 litre fortnightly recycling collection; and a 120 litre fortnightly residual waste (garbage) collection.

The additional cost to ratepayers of $51 means the service will be less than $1 per week for each household.

The volume of waste in the general garbage bin for most households is expected to be reduced by up to 72 per cent, and would not include perishable food waste, therefore not omitting odour.

The organics and greenwaste bin will also be of use to households who already compost their own food scraps, as items that can’t be composted can be disposed of in the organics bin, such as bread, meat products (including seafood and bones), dairy products, and tissues and paper towels.

For residents concerned about nappies being collected in waste bins fortnightly, odours can be omitted by wrapping a nappy in itself and placing it in a biodegradable bag before disposing of it.

Council will undertake an education campaign leading into the three-bin service to teach residents how to use the system, and options to responsibly dispose of items such as medical waste and nappies.

The introduction of an organics and greenwaste bin will reduce Council’s annual EPA Landfill Levy costs by over $127,000 and reduce greenhouse gas emissions by over 2,600 tonnes of CO2 every year. It will also reduce landfill space by approximately 5,400m3 and over 4,000 tonnes of organic waste will also be removed from kerbside garbage per year.

Strategic outcomes

The contract appointment is consistent with the strategic objectives proposed in both the Council Plan 2013-17 and the Waste Management Strategy 2015-25.

The Council Plan 2013-2017 has a number of strategies and indicators that the three-bin system will address, including the reduction of:

  • council generated carbon emissions
  • waste to landfill and improve public awareness and responsibility for waste minimisation
  • municipal waste to landfill and increase percentage recycled

The Waste Management Strategy 2015-25 has an action to undertake a feasibility study for the provision of a three-bin kerbside collection, including the addition of a green organics bin collection and inclusion of kitchen organics.

An ‘Organic Options Analysis Study’ was completed and adopted by Council in February 2016, recommending that subject to the outcome of the tender process, Council introduces this new service.

This Study considered the previous green waste trial that was conducted on Phillip Island and the potential for green waste to be collected under a number of options.

The tender process allowed Council to test the market and obtain the information required to assess what the cost is to collect and transport the material and how the material is to be managed and disposed.

Tender evaluation process

As part of Council’s commitment to good governance, Council appointed a Probity Advisor to the Tender Evaluation Panel to ensure that the tender process was truly open and competitive, promoted fairness, consistency and transparency.

Managing Partner from Vigilance Australia, Dan Pironti participated in the evaluation, provided advice and was ultimately satisfied with Council’s process.

“In my view, probity was acceptable and the process that was followed resulted in a fair and competitive outcome for Council,” Mr Pironti said.

“The Tender Evaluation Panel successfully assessed both the Waste Collection Service and the Waste Facility Management and Operation Services tenders for compliance with the specification, the conditions of tendering and against the evaluation criteria.”

Furthermore, as this is a significant investment and mindful of the upcoming Local Government Election Caretaker period, Council wrote to Minister for Local Government The Hon Natalie Hutchins MP in May asking that she advise Council if she had any concerns regarding the tendering processes that have been undertaken.

At the very least, this was considered appropriate and a courtesy to inform the Minister.*

Bass Coast Mayor, Cr Jordan Crugnale was pleased to see the tender outcome reflected a rigorous process and resulted in good value for the community with a local business appointed.

“The tender submitted by Wonthaggi Recyclers Pty Ltd will provide Council with the best value for money offer, and they have demonstrated their capacity and capability to undertake the service required under the contract,” Cr Crugnale said.

“Although the successful tender was highly competitive with their pricing, it is also pleasing that as a local business, there will be local investment and economic flow-on benefits into our community.

“This is also the case for Ace Environmental Pty Ltd. A competitive price was submitted and they have the knowledge and capacity to undertake the works required at the Grantville landfill site, with many of the contractor employees also living locally in Bass Coast.”

*Although the Minister’s Office does not have a role in the decision making or tender evaluation process, it was pleasing to receive a letter from Local Government Victoria (LGV) on 4 August 2016. LGV noted the detailed tender process that Council embarked upon for its waste management services and was supportive of the approach Council had taken to ensure transparency of the process.

Phillip Island waste facility

The Probity Advisor also recommended that due to a limited response to the provisional tender item regarding a new Phillip Island waste transfer station facility, Council should undertake an Expression of Interest (EOI) process specifically for this construction and service, and continue to investigate further options and opportunities for the next six to 12 months.

Council’s CEO, Mr Paul Buckley PSM, said that the decision to continue seeking a suitable proposal, location and service for a waste transfer facility on Phillip Island shows Council is committed to progress this as a priority and leave no stone unturned.

“Based on the level of interest for a waste facility on Phillip Island, and advice from Vigilance Australia, Council will go back out to the market to ensure every effort is made in seeking a suitable expression of interest for a Phillip Island transfer station or waste facility,” Mr Buckley said.

“This does not omit the expressions of interest or proposals received to date through the tender process, but due to the limited uptake we could not demonstrate to the community best value for our investment through the tender process. The EOI will provide a bit more time for any other suitable proposals to be submitted and evaluated.

“The EOI process will continue after the appointment of the new Council and commence in the new year. This will ensure appointments can be made well before the commencement of the new waste contracts in September 2017. Council looks forward to getting the best outcome possible for the community,” concluded Mr Buckley.