Local Government Association
of South Australia
Model Waste and Recycling
Collection Contract
Section C
Conditions of Contract
Attachment 1
Service Rates Schedule
Version 1 (April 2009)
Council
Contract Details
CONTENTS
Attachment 1
Service Rates Schedule
1.
OVERVIEW ................................................................................................................... 3
2.
SERVICE RATES ......................................................................................................... 3
2.1
Garbage Collection Services ........................................................................... 3
2.2
Recyclables Collection Services ...................................................................... 3
2.3
Organics Collection Services ........................................................................... 3
2.4
Street Litter Collection Services....................................................................... 3
3.
SERVICE RATES REVIEWS ........................................................................................ 3
3.1
Calculation of Revised Collection Service Rate – Labour Component ............. 4
3.2
Calculation of Revised Collection Service Rate – Fuel & Oil Component ........ 5
3.3
Calculation of Revised Collection Service Rate – All Other Costs ................... 5
3.4
Calculation of Revised Service Rate – Special On-Property Collections.......... 6
3.5
Calculation of Revised Service Rate – Transport to Alternative Facility ........... 6
3.6
Use of Alternate Rise and Fall Indices ............................................................. 7
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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Council
1.
Contract Details
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 Garbage 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
Street Litter Collection Services
Details of Street Litter Collection Services as per the successful Tender
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 Schedule.
Section C – Attachment 1: Service Rates Schedule
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Council
Contract Details
COMPONENT
GARBAGE
RECYCLABLES
100%
100%
ORGANICS
STREET
LITTER
Labour
Fuel & Oil
All Other
Variable Costs
Fixed Costs
3.1
100%
100%
Calculation of Revised Collection Service Rate – Labour Component
Labour Rise and Fall
The labour component of the Collection 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)*P
B
Where:
R1 =
The percentage increase to be applied to the labour component of the
relevant Collection 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 Collection Service Rate attributed to the
labour component of each waste stream.
A =
the amount specified in the Transport Workers (Refuse, Recycling and
Waste Management) Award 2001 – Classification: Driver Grade 6, as
first published for the quarter immediately preceding the relevant
review.
B =
the amount specified in the Transport Workers (Refuse, Recycling and
Waste Management) Award 2001 – Classification: Driver Grade 6, as
last published and current as at the date of Tender.
Section C – Attachment 1: Service Rates Schedule
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Council
3.2
Contract Details
Calculation of Revised Collection Service Rate – Fuel & Oil Component
Fuel & Oil Rise and Fall
The fuel and oil component of the Collection 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)*P
D
Where:
3.3
R2 =
The percentage increase to be applied to the fuel and oil component of
the relevant Collection Service Rate set out in the Service Rates
Schedule.
P =
The percentage listed in Clause service rates reviews3 of this Service
Rates Schedule as being the proportion of the Collection Service Rate
attributed to the fuel and oil component of each waste stream.
C =
The average Adelaide Terminal Gate Price (TGP) for diesel for the
quarter immediately preceding the review date, calculated by
averaging the three monthly averages prices as calculated from daily
prices published on the Australian Institute of Petroleum website:
www.aip.com.au
D =
The average Adelaide Terminal Gate Price (TGP) for diesel current as
at date of tender, calculated by averaging the three monthly average
prices as calculated from daily prices last published on the Australian
Institute of Petroleum website www.aip.com.au
Calculation of Revised Collection Service Rate – All Other Costs
All Other Variable Costs Rise and Fall
The all other costs component of the Collection 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)*P
F
Where:
R3 =
The percentage increase to be applied to the all other costs component
of the relevant Collection 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 Collection Service Rate attributed to the all
other 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
Section C – Attachment 1: Service Rates Schedule
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Council
Contract Details
Groups (Adelaide) as first published by the aforesaid Bureau for the
quarter immediately preceding the relevant review.
F=
3.4
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)
B
Where:
3.5
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 Transport Workers (Refuse, Recycling and
Waste Management) Award 2001 – Classification: Driver Grade 6, as
first published for the quarter immediately preceding the relevant
review.
B =
The amount specified in the Transport Workers (Refuse, Recycling and
Waste Management) Award 2001 – Classification: Driver Grade 6, as
last published and current as at the date of Tender.
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 - F)
F
Where:
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
Section C – Attachment 1: Service Rates Schedule
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Council
Contract Details
Transportation (Adelaide) as first published by the aforesaid Bureau
for the quarter immediately preceding the relevant review.
F=
3.6
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.
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.
Transport Workers (Refuse, Recycling and Waste Management) Award 2001
If the Transport Workers (Refuse, Recycling and Waste Management) Award 2001
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.
Section C – Attachment 1: Service Rates Schedule
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Council
4.
Contract Details
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,
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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Council
5.
Contract Details
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:
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.
PLUS
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.
PLUS
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.
PLUS
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.
Section C – Attachment 1: Service Rates Schedule
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Council
Contract Details
PLUS
Street Litter Collection Service Fee for the month determined by:
Street Litter Collection Fee calculated as per successful Tender
PLUS
Transport to Alternative Facility
Calculate as defined in Clause 5.5 of the Garbage Specification, Clause 7 of
the Recyclables Specification, Clause 7 of the Organics Specification and
Clause 5.5 of the Street Litter Specification.
Section C – Attachment 1: Service Rates Schedule
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