We’re seeking feedback on a proposal to enter a new lease for 20 years with Future Recycling Pty Ltd to operate the Bayside Waste and Recycling Centre located at 144 Talinga Road, Cheltenham.

In 2022, Council conducted a community engagement process where the community was asked to provide feedback (in the form of a survey) on how they use the Bayside Waste and Recycling Centre (e.g. what waste they deposit and how often), what their user experience has been and their suggestions for the future of the site.

The community told us that the most important services to them were:

• maximising the sustainability of the centre through recycling
• variety of items accepted
• affordable disposal costs
• quality customer service.

In light of the above, Council has completed a comprehensive two stage procurement process to find a suitable operator. Following completion of this process, Future Recycling has been selected as the preferred candidate to deliver and operate the updated transfer station.

Social and community considerations

Site visits of Future Recycling’s similar site showed that it was clean, welcoming, easy to use and professionally operated.

Future Recycling is certified under the National Carbon Offset Standard and operates on a carbon neutral basis. The company has a sector leading focus on reducing impacts to the environment and operating sustainably.

The proposal includes the complete redevelopment of the site to include a new purpose-built state of the art transfer station facility incorporating:

Improved dust and noise suppression included in the redevelopment will address issues with sound and dust/waste escaping the site.

Future Recycling will run a container deposit scheme from the site to align with the statewide introduction later this year.

Litter and illegal dumping will be minimised by the installation of security cameras onsite and by conducting daily ride on sweeper cleans of the site, fence boundary inspections and nature strip inspection adjacent to the premises.

Part of the lease proposal is to run a repair café where members of the community can bring in items for repair and a recycle shop (in association with Vinnies) where recycled items can be purchased by the community.

Financial considerations

Fit out

Future Recycling is proposing a complete redevelopment of the site, which will include the demolition of the current office and weighbridge as well as installation of a new hardstand throughout the site, undercover drop off and sorting shed and new recycling bays for green organics, timber, steel, soil and concrete. Existing structures will be demolished and replaced with a new purpose-built facility. Total expenditure on capital investment will be $4,698,000 and will include the following:

Capital Works attached to the site (to be retained by Council on cessation of lease)	$ Anticipated expenditure (ex GST)
Design, architectural & site preparation costs	$215,000
Core building works – Stages 1 & 2 (Office & Bays)	$3,950,000
Core building works – Stage 3 (CDS area)	$150,000
Site specific building works (eg fencing, utility connections, fire safety system)	$283,000
Weighbridge (commercial load length)	$100,000
Total	$4,698,000

Future Recycling have already engaged a contractor and subject to obtaining all necessary approvals, have set a completion date of all three stages outlined above by September 2024.

Financial return
Rental return includes $1,105,126 plus GST for the first 10 years. Estimate (subject to market rent review) for the entire Term is $10,105,126.

5% fixed increases to rent each year of the term.

A 5-year rent free period is proposed to support the significant capital investment in the site and the time it will take Future Recycling to rebuild the site and create increased patronage for the rebranded site.

The proposal includes a turnover rent, where if estimated revenue is exceeded over the first 10 years of the term, Future Recycling will pay 4% of gross revenue above each yearly estimate as turnover rent to Council.

White goods, e-waste and scrap metal will continue to be accepted free of charge.

Fees and charges will remain largely consistent with those currently offered.

Gate fee incentives will be offered for source separation.

We’re inviting feedback on the proposed decision to provide a new lease to Future Recycling Pty Ltd for the use of the Council property known as the Bayside Waste and Recycling Centre for a period of 20 years.

The engagement is designed in accordance with Council’s Community and Stakeholder Engagement Policy 2021 and Section 115 of the Local Government Act 2020.

What can the community influence?

• Whether Council offers a lease to Future Recycling Pty Ltd
• any variation to the terms of the proposed lease.

What can’t the community influence?

• The existence of a transfer station on the site
• the outcome of the expression of interest process.

This stakeholder assessment is a generalised understanding of sections of the community that have a connection to the project or matter. This information is used to understand the types of tools and techniques that will achieve the strongest and most effective outcomes for engagement and communication.

Impact: What level of change the stakeholder / community segment may experience as a result of the project / matter

Interest: What level of interest has been expressed or is anticipated

Influence: Reference to the IAP2 Spectrum

Stakeholder / community	Impact	Interest	Influence
Local residents	M	H	L
Users of the facility	M	H	L
Broader Bayside community	M	M	L

The tools and techniques selected for this project are informed by the project content, stakeholders and type of feedback sought.

Key tools for communicating the project

• site signage
• letters distributed to neighbouring residents
• news story on Council’s website and e-newsletter This Week in Bayside
• social media
• direct email to related community engagement project subscribers
• newspaper advertisement in The Age

Key methods for gathering feedback

• online consultation via Council’s Have Your Say platform, including opportunities to ask questions and provide feedback
• contact details for interested community members to ask for further information or provide feedback
• printed information available, as required.

Key Dates: For this phase
Item title	Start date (& time if relevant)	End date (& time if relevant)	Description (if required)
Community consultation	17 May 2023	28 May 2023
Consideration of community feedback	June 2023		A Community Engagement Summary report will be prepared.
Council considers feedback and decides on new lease	June 2023		Council is expected to consider the proposed lease and community feedback at its June meeting.

Community and stakeholder consultation on the proposed lease for the Bayside Waste and Recycling Centre will be held for a 10-day period from Wednesday 17 May 2023 – Sunday 28 May 2023.

Community feedback will be collated and presented to Council for their consideration and amendments will be made to the proposed lease, as required.

It is expected that a report on community feedback and the proposed lease will be considered for adoption by Council at its ordinary meeting in June 2023 (specific dates have not yet been released).

The agenda for this meeting, including the community engagement report and the proposed lease, will be published on Council's website on the Wednesday prior to the Council meeting. Project subscribers will be notified when the report is available.

All Council meetings are live-streamed via Council’s website. Community members can also ask a question or request to be heard at this meeting.

More information

Damien Darcy

Property Coordinator

ddarcy@bayside.vic.gov.au