Decision details

It is resolved that Council:

(A)      note the Food Organics Cost Benefit Analysis Review prepared by Morrison Low Advisory as shown at Confidential Attachment B to the subject report is confidential as it contains confidential commercial information;

(B)      note the Food Organics Cost Benefit Analysis Review prepared by Morrison Low Advisory:

(i)         assessed 2 service delivery scenarios for food organics collection from residents:

(a)       Scenario 1 - insourced service delivery: continue the current service until June 2028, roll out the service to all households by June 2029, and continue full service from July 2029 by insourced staff; and

(b)       Scenario 2 - outsourced service delivery: outsource the rollout from as early as July 2028 so that the service is available to all households by 1 July 2029 and continue full service from that date; and

(ii)        identified key risks for financial modelling and procurement of food organics collection services at present:

(a)       limited evidence base - the domestic food organics collection market is immature with very limited data and pricing available from other councils or industry;

(b)       high service demand uncertainty - resident participation in the food organics service is not mandatory therefore post-rollout volumes are difficult to predict; and

(c)       limited market response - eight industry collection operators were contacted and only two provided pricing. There was a significant disparity between the indicative pricing provided for an outsourced service;

(C)      note the financial implications of the service delivery scenarios for food organics collection assessed in the Food Organics Cost Benefit Analysis Review at Confidential Attachment A to the subject report;

(D)      endorse the implementation of Scenario 1: Insourcing; and

(E)      note that a review of the food organics collection service delivery model including a cost benefit analysis will be undertaken after the first 5 years of full service operations and reported back to Council.

Carried unanimously.

X124209.003