CITY PLANNING, ECONO MIC DEVELOPMENT & EN VIRONMENT 30 SEPTEMBER 2020

5.1 Covering Report Refer to Confidential Agenda in accordance with Section 275 (1) (e) of the Local Government Regulation 2012 SUB-REGIONAL WASTE ALLIANCE – EXPRESSION OF INTEREST FOR RESOURCE RECOVERY AND/OR WASTE DISPOSAL SERVICES (HEW/05/2018)

REPORT OF: Health, Environment & Waste Manager

REPORT OVERVIEW

EXECUTIVE SUMMARY Council has been leading the procurement of an Expression of Interest (EoI) process to test the market for resource recovery and/or waste disposal services on behalf of a South East Sub-Regional Alliance of Councils that also involves Ipswich City Council, Council, Lockyer Valley Regional Council and Somerset Regional Council (the Sub-Regional Waste Alliance). The EoI process is an initial ‘discovery’ process available under section 228 of the Local Government Regulation 2012. The EoI process gives a local government an appreciation of the solutions offered by the market and can be used to identify a short list of respondents that it may invite to participate in a written tender process. There is no obligation for a local government to invite written tenders following the EoI process. This EoI was a significant and complex procurement process which commenced in late 2018. It involved significant collaboration and coordination between the Sub-Regional Waste Alliance and external advisers to invite and evaluate a potential sub-regional approach for resource recovery and/or waste disposal. Criteria: Direction - It requires Council to make a decision of a strategic nature; or Council has specifically requested it CORPORATE PLAN PRIORITY Green and Renewable Submitted under separate cover is confidential documentation relating to the above matter. This documentation is considered confidential due to the following reason: "The confidential attachments includes information relating to contracts that may be made by Council as well as commercial-in- confidence information”.

RECOMMENDATIONS

For consideration.

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REPORT DETAILS

INTERESTED PARTIES  Respondents to the Expression of Interest  Commonwealth Department of Agriculture, Water & Environment  Department of Environment & Science  Queensland Government Department of State Development, & Innovation  Queensland Treasury Corporation  Ipswich City Council  Redland City Council  Lockyer Valley Regional Council  Somerset Regional Council  Local Government Association of Queensland  Council of Mayors  Waste Management and Resource Recovery Association of Australia  Waste & Recycling Industry Queensland  Australian Consumer and Competition Commission  Waste consultancy sector PURPOSE OF REPORT/BACKGROUND The purpose of this report is to present the outcome of the evaluation of the Sub-Regional Waste Alliance Expression of Interest (EoI) for Resource Recovery and/or Waste Disposal Services (EoI reference HEW/05/2018) for Council's consideration. Background Under business-as-usual disposal volumes, the Browns Plains Landfill is expected to be exhausted of airspace in the late 2020s. Accordingly, at its meeting of 20 March 2018, Council resolved that Expressions of Interest be invited for future waste disposal, including exploring alternative waste technologies (Minute No 79/2018). In mid-2018, it was identified that both Logan City Council and Ipswich City Council had both resolved to embark on a similar EoI process. With various industry sources generally indicating that aggregated volumes of waste may attract solutions that would otherwise not be feasible for individual councils (for example, energy from waste technologies), discussions regarding a sub-regional approach was progressed during mid-2018. Ipswich City Council forwarded correspondence dated 6 July 2018 to Logan City Council seeking Logan City Council’s consideration of a sub-regional joint EoI approach to the market. Establishment of the South East Queensland Sub-Regional Waste Alliance To broaden the scope of the EoI to involve other councils, at its meeting of 13 November 2018 (Minute No 354/2018), Logan City Council considered Ipswich City Council’s invitation and resolved to invite Expressions of Interest for the provision of waste disposal services, including the use of alternative waste disposal and recycling technologies, to service the needs of the Logan City Council area, or as part of a regional arrangement, joint government entity or joint local government with other councils in South East Queensland.

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Ultimately, the following councils in South East Queensland (SEQ) resolved to participate in what was termed the 'South East Queensland Sub-Regional Waste Alliance' for the purposes of inviting Expressions of Interest for Resource Recovery and/or Waste Disposal Services:  Logan City Council  Ipswich City Council  Redland City Council  Lockyer Valley Regional Council  Somerset Regional Council A Heads of Agreement between the participating councils was developed accordingly. Development of Expression of Interest (EoI) Invitation In early 2019, the invitation documents were developed collaboratively by representatives from all councils. During this time, an application for approval from the Australian Competition and Consumer Commission (ACCC) was also developed and approval received. The EoI offered all councils’ waste and recycling streams to the market, and invited proposals for a sub-regional solution, or solutions for one or more of the waste streams, or for one or more of the councils. This flexibility for respondents was a requirement of the ACCC approval. The EoI did not include kerbside collection services, operation of existing transfer stations or tip shops. The invitation for EoIs was advertised on 25 May 2019 in local, state and national newspapers and via waste and recycling industry channels, with a closing date of 20 August 2019 (refer Figure 1).

Figure 1 - Advertisement for Resource Recovery and/or Waste Disposal Services

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Expression of Interest Strategic Context In its Waste Management and Resource Recovery Strategy, the Queensland Government has established:

 A VISION to become a zero waste society, where waste is avoided, reused and recycled to the greatest possible extent; and  the following TARGETS for Municipal Solid Waste (MSW): o Reduce waste generation by household by 25% by 2050; o Recycle 70% of MSW by 2050; and o Send no more than 5% of MSW to landfill by 2050. Logan City Council currently diverts approximately 33% of MSW from landfill to more beneficial uses (for example, contents of yellow lid bin for recycling and self-haul garden waste for composting). Local government is responsible for managing MSW across Queensland. Expression of Interest Objectives The key objectives of the EoI were for resource recovery and/or waste disposal services that:

 Are affordable, reliable and adaptable in providing long-term security to respond to potential changes in waste volumes and composition over time;  Minimise waste disposal to landfill and maximise the recovery of resources for beneficial reuse and/or recycling;  Encourage and enable economic development and circular economy in the sub-region giving consideration to the availability and maturity of end markets; and  Deliver environmental and sustainability benefits for the councils’ communities. ANY PREVIOUS COUNCIL DECISIONS At its meeting of 13 November 2018 (Minute No. 354/2018), Council resolved:

 To invite Expressions of Interest for the provision of waste disposal services, including the use of alternative waste disposal and recycling technologies, to service the needs of the Logan City Council area, or as part of a regional arrangement, joint government entity or joint local government with other councils in South East Queensland. FINANCIAL/RESOURCE IMPLICATIONS This information is confidential and is included in the confidential attachments to this report. RISK MANAGEMENT IMPLICATIONS This information is confidential and is included in the confidential attachments to this report. LEGAL/POLICY The EoI process has been undertaken in accordance with the provisions of the Local Government Regulation 2012, legal advice and probity protocols provided by Council’s legal and probity adviser.

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This EoI process supports the following actions in Council's Waste Reduction & Recycling Plan 2017- 2021 adopted by Council at its meeting of 6/12/2016 (Minute No 304/2016):

 Action 8 - Continue to monitor the feasibility of alternative waste technologies;  Action 10 - Investigate options for regional collaboration in the development of waste infrastructure;  Action 25 - continue investigations into Council’s waste disposal options upon the closure of the Browns Plains Landfill; and  Action 12 - Participate in regional collaborative forums and workshops that aim to minimise waste and maximise resource recovery. COMMUNITY AND OTHER CONSULTATION In conjunction with the release of the EoI advertisement in May 2019, a media release was issued that attracted some local interest at the time. Further, a website was established to provide public information regarding the process at www.seqsubregionalwastealliance.com.au Some of the key public messaging to the community and industry included that:  the councils agree that their communities may benefit from a regional approach to waste treatment and disposal;  the councils are working together to test the market for potential solutions through an EoI process;  there are no preconceived ideas on what the services, or combination of services (if any) will look like or where they may be located;  the councils will consider the outcome of the EoI process and decide on next steps in 2020;  the next steps may include progressing with joint or individual procurements or not proceeding in any way at all. CONCLUSION This information is confidential and is included in the confidential attachments to this report.

ATTACHMENTS TABLE

This information is confidential and is included in the confidential attachments to this report.

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