Amid a flurry of unanswered questions, Greater Dandenong Council has deferred a decision on a $4.38 million recycling tender.
At a 11 March meeting, councillors raised questions over the proposed two-year deal with Re.Cycle Operations to receive co-mingled recyclables.
Cr Rhonda Garad noted the “enormous spend” of the contract.
She asked how the council would monitor the sorting, processing and marketing of recyclables by Re.Cycle, as well as the volumes of waste diverted from landfill.
Garad also asked how the council had done “due diligence” to avoid a repetition of the “problems” of its present contractor Polytrade Recycling.
Polytrade was heavily fined by the Federal Court last year for underpaying workers on refugee visas at Dandenong and Hallam in 2018 and 2019.
It was acquired by Re.Cycle’s parent company Re.Group in 2022.
City Futures executive director Sanjay Manivasagasivam deferred his response to that question.
But he said Re.Cycle scored highly for their “relevant experience”, social procurement, capability and being locally based in Dandenong South.
The council would monitor volumes of recyclables diverted from landfill, he said.
Re.Cycle had been a “proven and capable contractor” that provided a “very good service” to the council, according to a council officer’s report on the tender.
It also offered the “lowest” tender price per tonne – a saving on the current rate paid by the council.
According to the report, the Australian-owned Re.Cycle was established in 2021. Its depot in Dandenong South could handle more than 450 tonnes of recyclables a day.
It employed people from social enterprises at their depots and were committed to also hiring the “long term unemployed and migrant, refugees and asylum seekers”.
A tender proposal from Cleanaway was reportedly more expensive, but scored marginally better for “non-price” points such as capability and capacity to do the service.
Cr Bob Milkovic questioned Re.Cycle’s three-year track-record compared to Cleanaway, which dated back to 1979.
Chief executive Jacqui Weatherill warned councillors that responding to the queries in public could breach tendering requirements.
On her advice, councillors voted to defer the decision for two weeks to allow for a private briefing.
