Moira Shire Council has dumped local waste company DS Kendall Waste Services after 25 years in favour of companies from outside the municipality, including ASX-listed Cleanaway.
The council’s administrator, John Tanner, who was appointed after the dismissal of the shire’s councillors earlier this year, adopted a recommendation from staff at a meeting on Wednesday, April 26, that sees it going outside the shire for all its waste collection management contracts.
The recommendation awards kerbside collection to Cleanaway, comingles recycling processing and glass processing to Cleanaway Albury and FOGO (food organics garden organics) to Western Composting, each for a period of seven-and-a-half years with the option of doubling that period.
The recommendation authorises acting Chief Executive Officer Joshua Lewis “to enter into negotiations with the preferred contractors and to sign and seal the contract documents and to approve contract extensions within the provisions of the contracts”.
In the absence of any councillors to debate the issue, Mr Tanner asked the reporting officer, acting director sustainable communities Janet Martin, who reported that in deciding the recommended companies, cost was a key component of the tender process, but that the highest weight was given to environment and sustainability.
“There was a really comprehensive process that, as I say, included a large number of bodies and there was an extensive weighting process,” she said.
After delivering her report, Mr Tanner asked Ms Martin about the rigour of the tender process.
“You’re satisfied all due diligence was covered off in regards to that process?” he said.
Ms Martin replied that it was.
“A comment I would make is there were a range of people on the panel,” she said.
“They included consultants, lawyers, others involved with reference checks, what have you and the state government also played a very active role.
“There were a vast number of factors put into the weighting process and an extensive amount of investigation and research so the process was not taken lightly.”
DS Kendall Waste Services has held waste collection contracts, including kerbside and organics, in the municipality since 1998.
Don Kendall, from the Numurkah-based DS Kendall Waste Services, said he heard a decision had been made from outside the council and was only contacted by Moira Shire a few hours before the meeting.
“Yesterday, approximately three to four hours before the council meeting we got a phone call from the acting CEO saying, ‘Are you aware of what’s going on?’ and I said, ‘Yes I do’, but after 25 years, no meeting, no consultation. Not a thing from anybody,” Mr Kendall said.
“To find out three hours before the notice comes out. There was no consultation before and that’s what bothers me more than anything.”
The Moira Shire tender process was part of the Hume Collaborative Procurement Evaluation process, which included a number of shires across northern Victoria, including Greater Shepparton City Council.
Greater Shepparton has voted against a similar recommendation from its staff, which also recommended Cleanaway and Western Compost be awarded key contracts, and is deciding how to take its process forward.