The Goulburn Valley company overlooked for a multimillion-dollar waste collection contract in Greater Shepparton has been awarded a similar contract by Strathbogie Shire Council.
Foott Waste is believed to have been a bidder for a waste and recycling contract with Greater Shepparton City Council, but a motion put to council at its March meeting instead recommended the contract be given to ASX-listed Cleanaway.
Cleanaway is embroiled in ongoing industrial disputes with the Transport Workers Union and has been unable to fulfil all its collection obligations in the Hobsons Bay Council area in Melbourne due to a lack of drivers.
Greater Shepparton Council has deferred a decision on its waste and recycling contracts to on or before April 17 for councillors to be provided with more information, but Cleanaway remains the recommended company.
Strathbogie Shire has been through the same tender process as Greater Shepparton, which was known as the Collaborative Procurement Tender.
Greater Shepparton partnered with nine other councils, including Strathbogie, and two alpine resorts in the Hume region, to issue a collaborative request for tender, for waste and recycling services known as the Resource Recovery Collective – Hume.
The long-term contracts are for the collection, transportation and processing and disposal of co-mingled recycling, glass, food and garden organics and general waste.
Tenders were considered by a tender evaluation panel and recommendations made to council.
In total, the Shepparton contracts are worth more than $75m over 15 years.
Greater Shepparton was advised by its staff to award contracts to Cleanaway, Strathbogie staff recommended its kerbside collection and comingled recycling processing be given to Foott Waste.
“One of the overarching governance principles in section 9 of the Local Government Act 2020 is that priority is to be given to achieving the best outcomes for the municipal community, including future generations,” a report prepared for the Strathbogie meeting on February 21 by the director sustainable infrastructure Vlad Adamek reported.
Among a range of aims, the report also said the regional procurement intended to “encourage regional investment in people, sustainable infrastructure and innovative services“ and to build ”local service provider capability, resilience, and supplier diversity“.
Strathbogie Shire also awarded contracts to Veolia for glass processing and Western Composting for organics composting.
During the Strathbogie council meeting in February that considered the contracts, only Cr Chris Raeburn spoke at any length to the recommendation, and he emphasised the size of the decision being made.
“This is one of the biggest contracts this council will ever get involved in,” he said.
“It doesn’t start until 2025, but once again, through very diligent staff members of our council we are on the front foot of doing this and by not signing with one contractor, but by signing with different contractors, we are going to get a better service from across the board for our whole community and we will undoubtedly save money for our whole community.”