Local Government Association
of South Australia
Model Waste Management
Contract
Section C
Conditions of Contract
Attachment 1
Service Rates Schedule
Version 3
(January 2014)
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Section C
Conditions of Contract
Attachment 1
Service Rates Schedule
CONTRACT NO:
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CONTRACT FOR:
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CONTENTS
Attachment 1
Service Rates Schedule
1.
OVERVIEW ................................................................................................................... 2
2.
SERVICE RATES ......................................................................................................... 2
2.1
Garbage Collection Services ........................................................................... 2
2.2
Recyclables Collection Services ...................................................................... 2
2.3
Organics Collection Services ........................................................................... 2
2.4
Recyclables Processing Services .................................................................... 2
2.5
Organics Processing Services ......................................................................... 2
2.6
Street Litter Collection Services....................................................................... 2
2.7
Hard Waste Collection Services ...................................................................... 2
2.8
Resource Recovery Centre Operations ........................................................... 2
3.
SERVICE RATES REVIEWS ........................................................................................ 3
3.1
Calculation of Revised Service Rates – Labour Component............................ 4
3.2
Calculation of Revised Service Rate – Fuel & Oil Component ......................... 4
3.3
Calculation of Revised Service Rate – All Other Costs .................................... 5
3.4
Calculation of Revised Service Rate – Special On-Property Collections.......... 5
3.5
Calculation of Revised Service Rate – Transport to Alternative Facility ........... 6
3.6
Use of Alternate Rise and Fall Indices ............................................................. 6
4.
DETERMINATION OF KEY VARIABLES ..................................................................... 8
4.1
Service-Entitled Premises Numbers ................................................................ 8
5.
PRESENTATION OF CLAIM ........................................................................................ 9
Section C – Attachment 1: Service Rates Schedule
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Version 3: January 2014
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1.
OVERVIEW
This Schedule forms the basis for determinations under the Contract with respect to:

Service Rates payable in respect of Services performed under the Contract;

Service Rates Reviews (Clause 10.6 Conditions of Contract); and

Calculation of Claims submitted periodically by the Contractor (Clause 10.2 Conditions
of Contract).
This Schedule comprises five (5) components and sets out:
1. An overview of the function and content of the Schedule;
2. The Service Rates applicable to the making of a Claim by the Contractor for payment
under this Contract pursuant to the provision of the Services;
3. The method and frequency of review of the Service Rates;
4. The key variables relevant to calculation of a Claim and how those variables are
determined; and
5. The manner in which a Claim is to be calculated and presented to the Council on a
Periodic basis.
2.
SERVICE RATES
This section will contain relevant tables and schedules of service rates for all aspects of the
Services as detailed in the successful Tender.
2.1
Garbage Collection Services
Details of Residual Waste Collection Rates as per the successful Tender
2.2
Recyclables Collection Services
Details of Recyclables Collection Rates as per the successful Tender
2.3
Organics Collection Services
Details of Organics Collection Rates as per the successful Tender
2.4
Recyclables Processing Services
Details of Recyclables Processing Rates as per the successful Tender
2.5
Organics Processing Services
Details of Organics Processing Rates as per the successful Tender
2.6
Street Litter Collection Services
Details of Street Litter Collection Rates as per the successful Tender
2.7
Hard Waste Collection Services
Details of Hard Waste Collection Service Rates as per the successful Tender
2.8
Resource Recovery Centre Operations
Details of Resource Recovery Centre Operation rates as per the successful Tender
Section C – Attachment 1: Service Rates Schedule
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3.
SERVICE RATES REVIEWS
The Service Rates are subject to review on an annual basis throughout the Contract Term
unless otherwise specified.
The Service Rates review is based on a rise and fall formula, and each of the Service Rates
is deemed to be comprised of the specified component parts in the percentages as identified
in the Tender Return Schedules: Schedule 12.
COMPONENT
Labour
Fuel & Oil
All Other
Fixed Costs
Variable Costs
Residual
Waste
Collection
35%
Recyclables
Collection
35%
Organics
Collection
35%
Recyclables
Processing
35%
Organics
Processing
35%
Street Litter
35%
Hard Waste
35%
RRC
Operations
35%
Note: Distribution of the 65% variable Service Rate across the three components shall be as
per the successful Tender.
Section C – Attachment 1: Service Rates Schedule
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Version 3: January 2014
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3.1
Calculation of Revised Service Rates – Labour Component
Labour Rise and Fall
The labour component of the Service Rates set out in the Contract will be
adjusted annually on the anniversary date of the Services Commencement Date
as follows.
R1 =
(A - B) x P x100
B
Where:
R1 =
The percentage increase to be applied to the labour component of the
relevant Service Rate set out in the Service Rates Schedule.
P =
The percentage listed in Clause 3 of this Service Rates Schedule as
being the proportion of the Service Rate attributed to the labour
component of each waste stream.
A =
the amount specified in the Waste Management Award 2010 –
Classification: Level 6: Minimum Weekly Wage, as first published for
the quarter immediately preceding the relevant review.
B =
the amount specified in the Waste Management Award 2010 –
Classification: Level 6: Minimum Weekly Wage, as last published and
current as at the date of Tender.
If an Enterprise or other site specific industrial agreement is used as the
reference for Labour Rise & Fall, the maximum annual percentage increase shall
be limited to that which would have been achieved from use of the index number
allocated by the Australian Bureau of Statistics in the Consumer Price Index
Catalogue No. 6401.0 Tables 1 and 2 for All Groups (Adelaide).
3.2
Calculation of Revised Service Rate – Fuel & Oil Component
Fuel & Oil Rise and Fall
The fuel and oil component of the Service Rates set out in the Contract will be
adjusted quarterly on the 1st April, 1st July, 1st October and 1st January each
year as follows.
R2 =
(C - D) x P x 100
D
Where:
R2 =
The percentage increase to be applied to the fuel and oil component of
the relevant Service Rate set out in the Service Rates Schedule.
P =
The percentage listed in Clause 3 of this Service Rates Schedule as
being the proportion of the Service Rate attributed to the fuel and oil
component of each waste stream.
Section C – Attachment 1: Service Rates Schedule
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3.3
C =
The average Adelaide Terminal Gate Price (TGP) for diesel for the
three months immediately preceding the review date, calculated by
averaging the daily prices during the three months as published on the
Australian Institute of Petroleum website www.aip.com.au
D =
The average Adelaide Terminal Gate Price (TGP) for diesel for the
three months preceding the date of tender, calculated by averaging the
daily prices during the three months as published on the Australian
Institute of Petroleum website www.aip.com.au
Calculation of Revised Service Rate – All Other Costs
All Other Variable Costs Rise and Fall
The all other variable costs component of the Service Rates set out in the
Contract will be adjusted annually on the anniversary date of the Services
Commencement Date as follows:
R3 =
(E - F) x P x 100
F
Where:
3.4
R3 =
The percentage increase to be applied to the all other variable costs
component of the relevant Service Rate set out in the Service Rates
Schedule.
P=
The percentage listed in Clause 3 of this Service Rates Schedule as
being the proportion of the Service Rate attributed to the all other
variable costs component of each waste stream.
E=
The index number allocated by the Australian Bureau of Statistics in
the Consumer Price Index Catalogue No. 6401.0 Tables 1 and 2 for All
Groups (Adelaide) as first published by the aforesaid Bureau for the
quarter immediately preceding the relevant review.
F=
The index number allocated by the Australian Bureau of Statistics in
the Consumer Price Index Catalogue No. 6401.0 Tables 1 and 2 for All
Groups (Adelaide) as last published by the aforesaid Bureau and
current as at the date of Tender.
Calculation of Revised Service Rate – Special On-Property Collections
Special On-Property Collection Services Rise and Fall
The Special On-Property Collection Service Rate set out in the Service Rates
Schedule will be adjusted at the Services Commencement Date and thereafter
annually on the anniversary date of the Services Commencement Date as
follows:
R5 =
(J - B) x 100
B
Where:
Section C – Attachment 1: Service Rates Schedule
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R5 =
The percentage increase to be applied to the Special On-Property
Collection Service Rate set out in the Service Rates Schedule.
J =
the amount specified in the Waste Management Award 2010 –
Classification: Level 6: Minimum Weekly Wage, as first published for
the quarter immediately preceding the relevant review.
B =
the amount specified in the Waste Management Award 2010 –
Classification: Level 6: Minimum Weekly Wage, as last published and
current as at the date of Tender.
If an Enterprise or other site specific industrial agreement is used as the
reference for Labour Rise & Fall, the maximum annual percentage increase for
Special On-Property Collection Services Rise and Fall shall be limited to that
which would have been achieved from use of the index number allocated by the
Australian Bureau of Statistics in the Consumer Price Index Catalogue No.
6401.0 Tables 1 and 2 for All Groups (Adelaide).
3.5
Calculation of Revised Service Rate – Transport to Alternative Facility
Transport To Alternative Facility Rise And Fall
The Alternative Facility Payment Rate as set out in the Service Rates Schedule
will be adjusted annually on the anniversary date of the Services Commencement
Date as follows:
R7 =
(N - K) x 100
K
Where:
3.6
R7 =
The percentage increase to be applied to the Alternative Facility
Payment Rate set out in the Service Rates Schedule.
N=
The index number allocated by the Australian Bureau of Statistics in
the Consumer Price Index Catalogue No. 6401.0 Table 5 for
Transportation (Adelaide) as first published by the aforesaid Bureau
for the quarter immediately preceding the relevant review.
K=
The index number allocated by the Australian Bureau of Statistics in
the Consumer Price Index Catalogue No. 6401.0 Table 5 for
Transportation (Adelaide) as last published by the aforesaid Bureau
and current as at the date of Tender.
Use of Alternate Rise and Fall Indices
CPI Tables 1 and 2 for All Groups (Adelaide)
In the event that the Australian Bureau of Statistics ceases to publish the Consumer
Price Index Catalogue No 6401.0 Tables 1 and 2 for All Groups (Adelaide), or the
basis upon which that Index is calculated substantially changes then the Council may
nominate another suitable Index for the purpose of calculation of Rise and Fall under
this Contract that is equitable to both Parties.
Section C – Attachment 1: Service Rates Schedule
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Version 3: January 2014
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CPI Table 5 for Transportation (Adelaide)
In the event that the Australian Bureau of Statistics ceases to publish the Consumer
Price Index Catalogue No 6401.0 Table 5 for Transportation (Adelaide), or the basis
upon which that Index is calculated substantially changes then the Council may
nominate another suitable Index for the purpose of calculation of Rise and Fall under
this Contract that is equitable to both Parties.
Waste Management Award 2010
If the Waste Management award 2010 ceases to exist then the Parties shall select
some similar award or labour agreement for the purposes of the reviews incorporating
reference to this Award. In the event that they cannot agree on a selection then the
matter shall be resolved pursuant to Clause 13 of the Conditions of Contract.
Average Diesel Fuel Price (Adelaide)
In the event that the Australian Institute of Petroleum ceases to publish the terminal
gate price for diesel (Adelaide) or the fuel used by the Contractor no longer amounts
to at least 80% diesel, then the Council may renegotiate the fuel component in clause
3 of this Service Rates Schedule and nominate another suitable Index for the purpose
of calculation of Rise and Fall under this Contract that is equitable to both Parties.
Section C – Attachment 1: Service Rates Schedule
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4.
DETERMINATION OF KEY VARIABLES
In calculating the Claim applicable to any period, there are a number of key variables to be
determined to enable the calculation of the Claim in accordance with Clause 5 of this Service
Rates Schedule.
4.1
Service-Entitled Premises Numbers
The agreed numbers of:
 Garbage Service-Entitled Premises to be included in the Garbage Collection Service,
 Recyclables Service-Entitled Premises to be included in the Recyclables Collection
Service,
 Organics Service-Entitled Premises to be included in the Organics Collection Service,

Street Litter Bins (including collection frequency); and
 Special On-Property Service-Entitled Premises,
at the Services Commencement Date are determined prior to the Services Commencement
Date based on Council data as supplied to the Contractor - “Base Numbers”,
These Base Numbers are reviewed and amended annually on the anniversary of the
Services Commencement Date by mutual agreement based on:
 Collection Data provided by the Contractor; and
 Council’s records and rate assessment database;
The review and amend process must be documented and completed by no later than the first
Periodic invoice date arising after the Collection Services Commencement Date anniversary.
Section C – Attachment 1: Service Rates Schedule
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5.
PRESENTATION OF CLAIM
The Contractor submits a claim for payment each month during the Contract Term as defined
in Clause 10 in the Conditions of Contract.
The Claim comprises fees for the relevant Services being provided under the Contract,
calculated as:
Garbage Collection Services fee during the month determined by:
The number of Garbage Service-Entitled Premises as determined in Clause 4 of
this Service Rates Schedule, multiplied by the number of Garbage Collection
Services provided to each Garbage Service-Entitled Premise during the month.
Multiplied by:
The Rate per Garbage Service-Entitled Premise applicable during the month.
Recyclables Collection Services fee for the month determined by:
The number of Recyclables Service-Entitled Premises as determined in Clause
4 of this Service Rates Schedule, multiplied by the number of Recyclable
Collection Services provided to each Recyclables Service-Entitled Premise
during the month.
Multiplied by:
The Rate per Recyclables Service-Entitled Premise applicable during the month.
Organics Collection Service fee for the month determined by:
The number of Organics Service-Entitled Premises as determined Clause 4 of
this Service Rates Schedule, multiplied by the number of Organics Collection
Services provided to each Organics Service-Entitled Premise during the month.
Multiplied by:
The Rate per Organics Service-Entitled Premise applicable during the month.
Recyclables Processing Service fee for the month determined by:
The weight of Recyclables as defined in Section D: Part 5 - Recyclables
Processing Specification processed during the month.
Multiplied by:
The Rate per tonne for Recyclables Processing applicable during the month.
Organics Processing Service fee for the month determined by:
The weight of Organics as defined in Section D: Part 6 - Organics Processing
Specification processed during the month.
Multiplied by:
The Rate per tonne for Organics Processing applicable during the month.
Section C – Attachment 1: Service Rates Schedule
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Version 3: January 2014
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Street Litter Collection Services fee for the month determined by:
The number of Street Litter Bins as determined in Clause 4 of this Service
Rates Schedule, multiplied by the number of Street Litter Bin Collection
Services provided to each Street Litter Bin during the month.
Multiplied by:
The Rate per Street Litter Bin Collection Service applicable during the month.
Special On-Property Collection Services fee for the month determined by:
The number of Special On-Property Service-Entitled Premises as determined in
Clause 4 of this Service Rates Schedule, multiplied by number of Special OnProperty Collection Services provided to each such Premises during the month.
Multiplied by:
The Rate per Special On-Property Collection Service-Entitled Premise
applicable during the month.
Hard Waste Collection Service Fee for the month determined by:
Hard Waste Collection Fee calculated as per successful Tender
Transport to Alternative Facility
Calculate as defined in Clause 4.5 of the Garbage Specification, Clause 6.6 of
the Recyclables Collection Specification, Clause 6.5 of the Organics Collection
Specification and Clause 6.5 of the Hard Waste Specification.
Section C – Attachment 1: Service Rates Schedule
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Version 3: January 2014