A DEAL has been struck between the City of Cockburn and Southern Metropolitan Regional Council over compensation for lost green waste.
The City is less than 12 months into a four-year plan to roll-out green waste bins to 42,000 residential properties in Cockburn.
The SMRC, which counts the Town of East Fremantle, City of Fremantle, City of Kwinana and City of Melville among its members, was against the roll-out because it would mean a diversion of green waste away from its Regional Resource Recovery Centre in Canning Vale and potentially lead to a $7 million budget deficit.
But City and SMRC representatives managed to negotiate a deal, which was signed off by Cockburn councillors in February.
Under the deal, the City will pay $77.70 to the SMRC for each tonne of green waste the local council processes at its Waste Recovery Park in Henderson until the end of June 2017.
Cockburn engineering and works director Charles Sullivan said about 300 tonnes would be collected in that time, with about $23,300 in compensation to be paid to the SMRC.
“After July 1, the City is free to dispose of all green waste as it sees fit,” he said.
“There will be no further processing of green waste at the SMRC after that date and hence no further compensation payment.”
Mr Sullivan said the City would process green waste at its Henderson facility at a much cheaper rate, saving it money in the long term.
Last June, the City was processing green waste into mulch at a rate of $30 a tonne.
Cockburn councillors at the February meeting also agreed to allow City chief executive Stephen Cain to sign off on a waste service agreement, in which the City will continue to deliver general household waste to the SMRC’s Waste Composting Facility for a further three years.
SMRC chairman Cameron Schuster was satisfied the deal worked for both parties.
“If a waste supply agreement had not been entered, a significant SMRC budget deficit would have occurred,” he said.