On 15 October Councillors voted unanimously to extend its existing waste collection contract with Cleanaway, the owner of Citywide which was awarded the contract from July 2023 in controversial circumstances.

Deputy Mayor Bryan Mears said, “the new waste management contract of $48 million over four years represents good value and incentivises the contractor to deliver improved services and efficiencies for ratepayers in an environment of increased costs of waste collection and the State Government’s landfill levy”.

Residents were sceptical about Council’s ability to manage the waste contract after two audit reports in 2023 found the City of Port Phillip failed to comply with procurement processes and governance practices. Residents have not forgotten the 2023 waste collection chaos with missed bins for months, office staff sent to collect bins, and a confidential settlement with Citywide.

However, Council appears to have got it right this time; after putting out the waste contract for tender only Citywide and Cleanaway submitted proposals.

Under the new four-year contract, the City of Port Phillip and Cleanaway have agreed to

• Delay the implementation a fortnightly collection program pending community consultation on the new waste management strategy. Council is seeking feedback on a proposed initiative to transition houses, townhouses and small-scale apartment buildings to a fortnightly garbage collection service,  efficiencies and reduce costs, including reducing services paid for by third parties. Refer to https://haveyoursay.portphillip.vic.gov.au/dont-waste-it
• A ‘gain share’ arrangement where initiatives to reduce cost, will see savings being realised by both parties, thus incentivising Council and Cleanaway to identify and implement more efficient ways to deliver these services.
• Increased supervision by Council Officers and Cleanaway staff to ensure compliance and effective contract management. A strong focus on key performance indicators (KPIs) to maintain and improve service standards. Performance monitoring includes kerbside waste service expectations, missed bins, and contamination rates. These KPIs will be monitored and reported to Council Officers and the Council.
• Council has not committed to a glass collection system that is mandated by the Circular Economy (Waste Reduction and Recycling) Act 2021 and requires all councils including Port Phillip to provide a glass recycling service. Council is investigating the opportunity for exceptions because many properties do not have space for up to four bins and have requested information from DEECA to understand if exceptions are possible. Council is seeking community feedback on the glass service.

Ultimately, confidence in Port Phillip’s commitment to deliver quality waste services depends on managing the performance of the contractor.