CMCOAG – Canning Melville Community Odour Action Group

City of Kwinana Minutes – SMRC RRRC WCF Odour Issue – 26 May 2010

21.2 Waste Avoidance and Resource Recovery – Strategic Waste Management Options for the Future

SUMMARY:
The SMRC’s ongoing fugitive odour emissions and the incessant email complaints have resulted in a change of leadership at the City of Canning. The City of Canning has subsequently notified the SMRC of its intention to withdraw from the SMRC effective from the 30 June 2010.

The odour emissions have seen the ongoing intervention by the Department of Environment and Conservation (DEC) to have the odour emissions substantially reduced and resulted in the DEC operating licence being reviewed and amended to permit continued operation.

The net effect of the City of Canning withdrawing their support is their 28.02% share of the RRRC must be spread over the remaining members. The much reduced tonnes will substantially reduce the SMRC’s income stream and leaves an operating capacity to be sought from the Town of Kwinana and the City of Rockingham or to seek additional waste from other councils or commercial operators.

The SMRC proposal has been considered and Council is invited to commence disposal of its municipal solid waste at the RRRC at a gate rate of $125 per tonne for year 2010/11 effective from 1 July 2010 on a graduated scale of fees with the option of joining as a full Project Participant in year two.

OFFICER RECOMMENDATION:
That Council not take up the offer presented by the Chief Executive Officer of the South Metropolitan Regional Council and await the public release of the City of Rockingham’s GHD Strategic Waste Assessment Report before any further evaluation is undertaken regarding the strategic future of waste management within Kwinana.

DISCUSSION:
Waste management is highly complex having legislative and legal obligations; technical, economic, financial, environmental and social implications; and significant strategic and long term impacts on the Council, business, industry and the community of Kwinana.

Simply, waste management must be compliant whilst remaining technically feasible in the broadest context and must be sustainable in the long term to benefit present and future generations.

For example, the Waste Avoidance and Resources Recovery (WARR) Act 2007 and Regulations are being driven by the West Australian Government in response to the Australian Government’s environmental programs. These programs are designed to reduce Carbon Footprints and thereby reduce global pollution and the level of Climate Change impacts such as greenhouse gas (GHG) and other related emissions.

A Councillor workshop was held on 25 May 2010 to discuss the draft report and to consider the following three options:

Option 1. Subject to legal advice on the contract proposed by SMRC (including specific advice on a suggested travel equalisation clause, any potential consequential impacts of the City of Canning’s departure, and the matter of potential odour complaint considerations of the State Government) deliver all municipal solid waste except recycling resources and green waste from its operations to the SMRC commencing 1 July 2010 under the Agreement proposed by the SMRC with Agreement of the RRRC Project Participants for the period of three years commencing at the gate rate of $125 per tonne for 2010/11, as outlined in SMRC correspondence dated 18 May 2010.

Option 2 Continue to dispose of all municipal solid waste except recycling resources and green waste from its operations to the City of Rockingham’s Millar Road, Baldivis landfill site at the current discounted rates offered by the City of Rockingham commencing 1 July 2010.

Option 3 Await the public release of the City of Rockingham’s GHD Strategic Waste Assessment Report before any further evaluation is undertaken regarding the strategic future of waste management within Kwinana.

At the conclusion of the workshop a clear indication was given by Councillors present that their preferred option for consideration was option 3 and as such the report has reflected that option in the officer recommendation.

Future Directions of Waste Management.
The direction of waste management practices within Western Australia are determined by the provisions of the Environmental Protection Act and regulations and the Waste Avoidance and Resource Recovery (WARR) Act 2007 and regulations. For example, the following identified resource recovery targets are applicable -

1. In metropolitan Perth at least a 70% recovery rate for municipal waste by 2016 (up from approximately 45%).
2. The contamination rate of kerbside recyclables collections will be reduced from approximately 25% to 10% by 2016.
3. The recovery rate for construction and demolition waste will be increased from 14% in 2006/07 to 50% by 2016 and to 70%   by 2020.
4. The recovery rate for commercial and industrial waste will continuously increase over the lifespan of the strategy. At least one facility for processing commercial and industrial waste will be established by 2016 and a second by 2020.
5. In larger regional areas with a population greater than 25,000 at least a 45% recovery rate for waste by 2016.
6. The Waste Authority will assist Local Government and Industry to be guided by the EPA in determining which forms of resource recovery are acceptable under which conditions

The continued development of resource recovery infrastructure and technologies is therefore a priority as landfill is an unsustainable long term option.

Waste Disposal Targets.

• All landfills servicing metropolitan Perth will be operating to appropriate standards by 2011.
• All landfills servicing larger regional areas with a population greater than 25,000 will be operating to existing standards consistent with those used by larger landfills in WA by 2015.
• Landfills that are not consistent with the existing standards of larger landfills in WA will be closed by 2015 if they lie within a 100km radius of a landfill that does meet the standards. These sites will be replaced with transfer stations.

Strategic Waste Management Plans (SWMP)
The Town of Kwinana participated in the preparation of the SWMP as a member of the Southern Metropolitan Regional Council (SMRC) and signed off on the SWMP in January 2009.

The Waste Authority and DEC will work with Regional Councils and individual local governments to establish a program of landfill rationalisation to replace many small landfills with transfer stations. The tools used to achieve this may include both incentives and regulatory approaches. This will further limit opportunities for the development of landfills and reduce substandard landfills with a potential to pollute.

Smaller landfills will be replaced with waste transfer stations and this development of transfer stations is an option for the Town to consider for the long term to reduce the time lost in transporting waste and recycling resources.

The waste management requirements and targets being imposed are going to have a major impact on the adopted regional Strategic Waste Management Plan of the SMRC which was adopted in December 2008 and incorporates each member Council’s Strategic Waste Management Plans. The Town of Kwinana’s SWMP, as part of the regional plan and the future services Council is expected to provide to achieve state targets imposed on Council, will be taken to include the inputs to the Southern Metropolitan Regional Council targets and objectives

City of Canning Withdrawal from SMRC:
The City of Canning has formally advised the Southern Metropolitan Regional Council (SMRC) that it will withdraw from the SMRC effective from the 30 June 2010. As a result of the City of Canning’s decision the Chief Executive Officer of the SMRC has written to the Town of Kwinana as a member of the SMRC with an offer for Council to consider joining as a Project Participate in the Regional Resource Recovery Centre (RRRC) Project.

Long Term Impacts
The long term impact created by the withdrawal of the City of Canning from the SMRC will increase the costs of all member Councils unless the City of Rockingham and the Town of Kwinana take up the void in capacity of the waste Compost Facility (WCF), created by Canning’s withdrawal and the share of the RRRC. Currently the City of Canning has approximately a 38% share based on population of the RRRC member participants. This does not include the City of Rockingham and Town of Kwinana as participants and they do not dispose of waste at the waste compost facility (WCF).

Based on current SMRC contributions for 2010/2011 without the City of Canning, the Town of Kwinana will only account for approximately 7.57% for the Governance and projects excluding the RRRC project. This percentage share will grow as a regional percentage as the Town’s population increases over the life of the plant, anticipated to be 20 years to cover the costs for the SMRC Membership Agreement, the Climate Project Agreement and the Office Agreement.

Greenhouse Benefits
Processing of waste at an alternative waste treatment facility such as the facility operated by the SMRC, will provide significant greenhouse benefits and will substantially reduce Council’s Carbon Foot Print by the value of tonnes deposited at the RRRC. It will provide further long term benefits when the Australian Government introduces a Carbon Pollution Reduction Scheme (CPRS) (earmarked to commence in approximately three years) as CPRS and NGER are interrelated. NGER will help the Town to quantify its Carbon Footprint, which is most likely going to be an important agenda for every organisation in the near future and once the Carbon Footprint is known, the Town can act on exploring opportunities on how to reduce it and monitor the progress.

Council’s Future Waste Management Options:

1. Town of Kwinana 2009/2010 projected waste output.
Currently (2009/2010), the Town of Kwinana disposes of approximately 15,629 tonnes of waste made up as follows;

The Town will need to be more diligent towards a more environmentally sustainable outcome from its waste management programs which could achieve a larger percentage of resource recovery, reuse of resources and ultimately achieve a smaller carbon footprint. Initially though, all waste management improvement programs will have significantly higher input costs due to the level of infrastructure involved to in the development of Alternative Waste Technology (AWT).

2. City of Rockingham
The City of Rockingham has recently engaged consultants GHD to undertake a strategic waste assessment review of a range of aspects including;

• Municipal waste services applicable to the City;?
• Current and potential customers and catchment areas; and
• Relationship between the City and relevant local governments and waste management associations within the region.

This assessment will culminate in the action plan/strategy with a long term vision for waste management in the City. Currently the City has further life in the landfill at Millar Road but they are concerned that the rate of growth in the region is placing significant pressure on this finite resource.

The disposal cost for the Town of Kwinana at Millar Road landfill is discounted based on the disposal of more than 10,000 tonnes per annum. It is anticipated though, that the landfill disposal rates will continue to increase significantly to the predicted level of cost equalisation of landfill v’s AWT, as indicated in previous SMRC business plans, by about 2015. No firm projections can be made concerning the future costs and likely impacts from the City of Rockingham operations until their strategic waste assessment report is released to the City and assessed.

The 2010/2011 budget figures have been predicated on a likely 8% increase (business as usual basis) prior to the consultants being appointed. It is anticipated that the costs could rise as high as $107 per tonne including the current levy. The Minister for the Environment has not announced any likely levy increase but that is not to say it will not be increased and should be allowed for in the formulation of the future costs.

3. Southern Metropolitan Regional Council
Council is a member of the Southern Metropolitan Regional Council (SMRC) and has not been a project participant of the Regional Recycling and Recovery Centre (RRRC) since the facility was agreed to be built.

The SMRC Strategic Plan includes a second AWT in the southern portion of the region to accommodate the needs of the growing community. The business plan was to be developed with the funds allocated by City of Rockingham and the Town of Kwinana in 2008/09 but unforeseen circumstances, due to fire which destroyed the Materials Recovery Facility (MRF) at the RRRC, stifled the development of the Business plan for the second facility. This was further complicated with the change in management at the City of Rockingham and the strategic review which is referred to above under item 2.

The City of Canning, having notified the SMRC of its intentions to withdraw from the SMRC, has left a massive gap in the amount of waste being delivered to the Waste Compost Facility (WCF) and subsequently has substantially reduced the operational income stream which creates very sensitive cost pressures on the remaining Project Participants and member councils of the SMRC.

The budget options for the 2010/2011 have been considered by the SMRC and they have recommended an option which includes the Town of Kwinana disposing waste at the RRRC. The SMRC budget has substantially reduced expenditure in order to keep the gate fees as low as practicable, to minimise the flow on effect created by Canning’s withdrawal and to not have to access additional loans to keep the facility operating effectively until the MRF is reconstructed by mid year of 2011.

The MRF would normally provide additional income from the sale of commodities recovered from the waste stream which would provide a buffer against the higher operating costs of the WCF. Prior to the fire, which destroyed the MRF, the SMRC had budgeted for a dividend to be paid to all of the RRRC Project Participants. This loss of the MRF was a significant blow to the members including the Town of Kwinana whose recycling resources were being processed at the MRF.

The SMRC has agreed to build a replacement MRF at Canning Vale and is being progressed for reconstruction with some difficulty due to the withdrawal of the City of Canning who has caused delays and which has resulted in a SAT’s appeal and other legal complications relating to separation from the SMRC under the SMRC Establishment Agreement.

It is proposed by the SMRC that the member Project Participants of the RRRC will be anticipating costs of $200 per tonne gate fees (with the inclusion of the Town of Kwinana) for disposal of waste to the WCF in the year of 2010/2011 to cover costs.

SMRC Proposal
The Chief Executive Officer of the SMRC has proposed that the Town consider entering into an Agreement with the SMRC to process its municipal solid waste at the SMRC’s Waste Composting Facility. The proposal provided a gliding scale to minimise the cost impacts to the Town. The original ‘year 1’ price, was $135/tonne, however the Chief Executive Officer of the Town, through negotiations with SMRC, has secured a $10/tonne reduction to this initial offer (resulting in a $100,000 saving to Kwinana residents). The following proposal is now put forward for Council’s consideration, but is still subject to the Regional Council’s Approval:

1) A strategy to adopt a suitable glide path over 3 years with the intention to meet full membership in the RRRC project be considered based on the following base gate fees as follows:

2) A good faith clause be included in the agreement for the Town and the Project participants to enter into an agreement commencing from the second year term a discount plan for the purposes of a discount towards the calculation of a new participant’s contribution in the RRRC Project in accordance with clause 8.17 of the Establishment Agreement.

A copy of the agreement is attached for information and discussion (see Attachment 1).

Note in the Agreement it provides in clause 3.1.2 “Where there are increases or decreases in existing or the introduction of new government levies, taxes, or charges, the cost will be in addition or reduction to the base fee”.

The Agreement termination date is 30 June 2013 and either party can terminate the contract by giving one full financial year’s written notice.

The Town can exercise its right to join the RRRC project in accordance with the SMRC Establishment Agreement and the RRRC Project Participants Agreement and this may be exercised by giving one full financial year’s written notice of its intention to join the RRRC Project.

The good faith clause 9, included in the agreement, provides that the Town will forfeit any right to its benefits where it does not proceed to join the Project one year prior to the expiry of the contract term. These clauses need to be reviewed by Council’s legal advisors and it is suggested at least, that the ‘financial year’ clause, be modified to a shorter period of no greater that 12 months.

SMRC Benefits

• The Chief Executive Officer and other SMRC technical staff are the most experienced AWT’s operation staff in the Western Australian waste industry. No other regional Council has this level of experience or expertise in operating a Waste Composting facility. This has now provided real improvements in the plant operation to vastly improve the product quality and to substantially reduce and manage the odour from the RRRC.
• The WCF plant has undergone several engineering and odour assessments resulting in significant engineering and design improvements, which have been funded by the members to date to meet the requirements of the DEC.
• Potential in receiving a reduction in equity cost required to become a Project Participant after three years.
• Secure capacity allocation in the SMRC Waste Composting facility and Materials Recovery facility.
• Access to economic benefits of the projects future asset value e.g. MRF profits and value of the Canning Vale lease.
• Allows the Town to determine its own service fee prior to full project participation.
• Provides the Town with a three year pre-entry risk assessment program.
• Enables the Town to achieve a 66% diversion from landfill on all of its waste streams. The current diversion is 30.96% which includes the recycling resources and the green waste from the verge collections.
• As a member of the regional local government, the Town is joining an existing project with proven technology at a depreciated asset value, well below the replacement value of a new facility.
• Environmental benefits are significant and include ;

1. Avoided greenhouse gas emissions from landfill,
2. Composts provides for sequester of carbon in soil and improves soil fertility and assists in water retention, and
3. Alignment with community aspirations and expectations.

• The DEC has re-issued the operation licence with amendments to address the odour impacts from the RRRC. The green waste processing, the bio filters and the WCF have been substantially upgraded to deal with the fugitive odours thereby reducing the potential impact from the RRRC. Some fugitive emissions may continue, however the DEC licence is intended to manage the impacts.
• The quality of the compost produced is acceptable to DEC and is accepted by rural industries. A business relationship to handle large volumes is being progressed with rural producers who anticipate it will develop into an income stream for the SMRC.
• The MRF when reconstructed will provide for an income stream from the sale of commodities and this will assist in offsetting the higher processing costs of the AWT.
• The green waste processing facility is able to be further developed to more quickly process the green waste. This material needs to be removed quickly from site to lessen the odour contribution which has been emitted from the shredded matter for further down stream processing into horticulture and compost processors. This stream also provides income for the SMRC.
• A significant benefit to Council as a Project member benefit is the potential for a share in the 50 year lease value of the Canning Vale site which is proposed to be redeveloped when the life of the RRRC project is concluded in 2023.
• The Canning Vale site is proposed to be redeveloped and leased to pay for a proposed future AWT when new technology is available to deal with the processing of waste. It is most likely to be located in the Kwinana Industrial Area within the air quality buffer of other waste processing industries and utilities. This lease arrangement will provide financial income to pay for the next generation AWT plant possible in the area of the Improvement Plan 14 in Rockingham and will be a significant benefit to Council and members of the SMRC.
• The Town has been a member of the SMRC since its inception and has an asset share in the SMRC office in Booragoon. The relationship, the program partnerships and goodwill that has been developed over the years is a valuable asset for Council and this should be developed further for the sustainability of the community relating to regional co-operation, waste management and environmental management.
  SMRC Negatives
• There would be an immediate $18 per tonne increase in the disposal rate which would equate to an equivalent increase in the rubbish rate charge (this does not include the additional transport costs which would be incurred as a result of the additional travel to the RRRC which is estimated to be an additional $14 on the rubbish charge).
• The additional 30 kilometres travel distance from Kwinana is a cost to the Council and the proposal price agreement makes no reference to the travel equalisation that traditionally other project members have been offered to lessen the distance impact. This extra travel cost is in excess of $151,057 per year which is an additional $14 to the rubbish charge.
• The odour issues have not been fully resolved by the SMRC as complaints continue to be received. This needs to be considered in light of the reduction in complaints and the reduced area of odour impact. The DEC licence has been amended to address the odour issues.
• The issues with the City of Canning may take a considerable period to negotiate and settle their differences. The Deloitte’s Consultant final report on the SMRC operations and the asset values is not yet available and cannot be considered.

4. Rivers Regional Council
River Regional Council Benefits

• The Rivers Regional Council is still pursuing their approvals to develop an AWT at the Water Corporation site, McLaughlin Road, Postans. This site is on land zoned for utility and is in compliance with the DEC buffer distances for the AWT proposed.
• Council’s position has been to not support the Rivers Regional Council proposed AWT development at the McLaughlin Road site. Therefore no further review has been undertaken with regard to the cost of this service provision. However, in discussions held on 20 May 2010 with the Chief Executive Officer of Rivers Regional Council, he advised that the cost per tonne cannot be finalised until the tenders are closed and accepted for either an aerobic, anaerobic or a combined aerobic/anaerobic AWT based on a Build Own and Operate (BOO) model. Of the 15 AWT’s operating in Australia 14 are based on BOO Model to be able to control the price and operational cost structures. It was predicted that the Rivers Regional Council plant would be in the vicinity of $130 -$150 per tonne. It is expected that the tender for an AWT will be out and closed by February 2011 and be ready for operation in about 18 months after the close of the Tender.
• Community consultation has revealed that, similar to the Mindarie Regional Council’s findings, the community supports more environmentally responsible processing of waste resources and are willing to pay between $1 and 42 per week for the service improvements.
• The locality provides benefits of proximity for transport and time savings which would greatly benefit the Town’s long term costs.
• Potential environmental gains could be negotiated for a facility situated at this location under the DEC approval process.
• Environmental benefits would most likely be similar to the SMRC dependant on the process technology.
• Model used is a BOO model and will manage the cost increases subject to the growing of staff experience and knowledge of the processes.

5. Perthwaste
Perthwaste, our current contractor for the collection and disposal of the Town’s Domestic Waste, has submitted a proposal offering to provide Council with an alternative to its waste management strategy based on their option of utilising their DEC approved waste transfer station which has an approved (Department of Commerce) calibrated weighbridge in Bibra Lake.

All waste would be delivered to the transfer station and then transported by prime movers to their landfill site situated on Albany Highway North Bannister.

The 1300 hectare site is in the process of being licensed with the DEC. It has its own buffer and will have no urban encroachment issues. All capital infrastructure is owned by the company directors and it is planned to receive 200,000 tonnes per year for 40 years. Perthwaste seeks to secure a long term relationship with the Town.

At this time the landfill is not approved by the DEC. The state government waste policies and the draft WA Waste Strategy must be taken into account to determine the impact of such a relationship.

There is mention of landfill levy being included in the annual fixed cost of $95.50 per tonne plus GST ($105.05 per tonne) and as the waste is generated in the Perth region it still will attract the rising landfill levy. Any increase in landfill levy will be applied from the effective date and any other taxes applied will also apply.

The proposal provides for a fixed rate annual rate with a 5% fixed annual adjustment on the Gate Rate on the basis of a 10 year contract. However, this must be put out to tender to be considered and would be open to the market influences from all stakeholders.

Perthwaste Benefits
Subject to a successful tender submission potential benefits are;
1. Long term relationship based on annual fixed gate fee with no capital risk.
2. No additional charges for the additional transport charges based on distance.
3. Reduced governance costs associated with Regional Council structure.

Perthwaste Negative Impacts
DEC approval to develop not finalised for North Bannister Landfill.

Resources mixed in municipal waste stream not proposed to be recovered.

Does not meet the policy intent, nor the draft waste strategy intent of zero waste to landfill by 2020 and recovery and processing of resources for bio waste and energy recovery.

Does not reduce the impact of NGER Act and CPRS impacts in the long term.

Landfill levy still applies and will increase.

6 Moltoni Energy
Moltoni Energy operate in the waste to energy (WTE) sector and have technology supply agreements with manufacturers. These technologies are tried and proven and reliably deliver on the community expectations and are commercially viable.

Moltoni have advised of a proposal to develop a facility within the Kwinana industrial area using Martin Grate technology which is a high temperature, mass combustion process that can accept all municipal solid waste (MSW), most commercial and industrial waste (C&I) and sewage sludge without the need for pre-treatment and converts to renewable energy and or steam and heat for use by industry.

The plant meets the Australian and WA Governmen’ts and Waste Authority and DEC objective of zero waste to landfill. There are over 800 WTE plants and over 600 WTE’s are Martin Grate technology, which operate with stringent emission standards across the world with a large number of these plants within residential precincts.

The expected gate fee for a plant in the Perth region would be around $90 per tonne, making it more competitive than landfill with the rising levy and pollution controls applied to landfill. The end energy product is in greater demand compared to the production of compost.

The plant creates 50 full time jobs over a 24/7 shift. They are considered as base load power stations and fill a desirable niche in the renewable energy markets. Volumes needed are as low as 70,000 tonnes and as high as 400,000 tonnes. Their economic operating range is within the means of Australian conditions.

Moltoni Benefits
This is the sustainable way of the future and is a most productive way to deal with waste through capturing the energy and using it in a socially and environmentally responsible manner to benefit future generations as recognised in many communities around the world.

Located in the industrial area this would provide a significant resource recovery program similar to the previous WTE plant proposed by Global Olivine. However, the technology has improved and this may provide a real option for future waste management.

LEGAL/POLICY IMPLICATIONS:
The current waste legislation stems from the Intergovernmental Agreement on the Environment (IGAE) made on the 1 May 1992 which specifically refers to waste under Section 3 – Principles of Environmental Policy and particularly section 3.5.4 dealing with;
1. improved valuation, pricing and incentive mechanisms which includes reference to environmental factors in the valuation of assets and services,
2. Polluter pays for those who generate pollution and waste should bear the cost of containment, avoidance, or abatement, and
3. The user of goods and services who should pay prices based on full life cycle costs of providing the goods and services, including the use of natural resources and assets and the ultimate disposal of wastes.

The IGAE was intended amongst other items;
1. To recognise and address the many environmental concerns and issues which respect neither physical nor political boundaries and are increasingly taking on inter-jurisdictional, international and global significance in a way that was not contemplated by those who framed the Australian Constitution.
2. To recognise that the concept of ecologically sustainable development, including proper resource accounting, provides potential for the integration of environmental and economic considerations in decision making for balancing the interests of current and future generations and further, the Agreement was designed to facilitate :

• Cooperative national approach to the environment;
• A better definition of the roles of the respective governments;
• A reduction in the number of disputes between the Commonwealth and the states and territories on environmental issues;
• Greater certainty of Government and business decision making; and
• Better environmental protection.

Local Government as a party to the IGAE has responsibilities to the terms of the agreement.

The National Greenhouse and Energy Reporting Act (NGER) and associated reporting schemes, which came into effect in 1 July 2008, will have significant long term impacts for Council as the waste stream continues to grow with ongoing development and growth across the Town.

The control of most waste in Western Australia is under the Waste Authority and is contained within the following legislation in WA:

The major legislation relevant to the Waste Authority is contained within:
The Waste Avoidance and Resource Recovery Act 2007
The Waste Avoidance and Resource Recovery Levy Act 2007
The Waste Avoidance and Resource Recovery Regulations 2008
The Waste Avoidance and Resource Recovery Levy Regulations 2008
This Waste legislation does include transitional provisions for those matters previously contained in the Health Act.

The draft Waste Strategy II released in March 2010 provides for significant reductions in waste to landfill in keeping with the Zero waste to Landfill by 2020 Policy.

FINANCIAL/BUDGET IMPLICATIONS:
Financial implication for the disposal of waste will be the additional costs over what is budgeted for 2010/2011.

This difference of $107 per tonne to Millar Road landfill and $125 per tonne delivered to the SMRC costing an extra $194,418. In addition to this is additional contract collection costs for moving the disposal point from Millar Road to Canning Vale of 30.62Km from the centre of Kwinana, which adds another $151,058 + GST. The total impact of the change to the SMRC will be $345,516.

It is important to recognise that landfill costs will continue to rise in an effort to divert waste from landfill and Alternative Waste Treatment will become the least costly option.

ENVIRONMENTAL IMPLICATIONS:
The report details/indicate the environmental benefit which is substantial when waste is processed via an approved AWT. Over the longer period it will meet the objectives and requirements of the WARR Act 2007, Council’s Strategic Waste Management Plan, SMRC Strategic Waste Management Plan and the Policy and Waste Strategy of the State Government.

STRATEGIC/SOCIAL IMPLICATIONS:
The waste services for the community are a critical and essential service.

The next two or three years is a critical period to decide what to do for the long term benefit of the community to be able to serve all premises to recover the resources for reprocessing so no waste is going to landfill by 2020, in line with the WA Government Waste Policy. This policy is being underpinned with the Draft Waste Strategy March 2010 prepared by the DEC for the Waste Authority.

RISK IMPLICATIONS:
The waste management risk equation at this time is highly complex, no decision will be a simple or quick fix and any decision will be costly to implement over the long term.

There is one clear certainty, and that is the costs of disposal to either landfill and subsequently processing is costing more and are being driven higher to achieve the environmental objectives legislated by the Australian and Western Australian Governments.

Until the City of Rockingham’s GHD consultant report is publicly released to guide the regional direction for all stakeholders we are in somewhat of a void of information as to what our significant neighbours are considering. The Deloitte report on the SMRC situation with regard to the City of Canning’s withdrawal from the SMRC is also needed to provide more certainty to determine the financial implications into the future.

No long term decision should therefore be made which locks Council into any one operator and the relationship with the SMRC as a regional council member should be acknowledged, but it may not be the best option long term based on the current information and the moving of strategic goals and objectives of waste management.

Any change will have impacts on relationships with either City of Rockingham or the SMRC and their individual members and may place the Town in an invidious position of being seen to not be a committed member and as importantly, the Town of Kwinana may not be able to secure the same opportune pricing offer in the future, compared to what is on ‘on the table’ now.

COUNCIL DECISION
131
MOVED CR KEARNEY

SECONDED CR DUPAGNE
That Council not take up the offer presented by the Chief Executive Officer of the South Metropolitan Regional Council and await the public release of the City of Rockingham’s GHD Strategic Waste Assessment Report before any further evaluation is undertaken regarding the strategic future of waste management within Kwinana.
CARRIED