The council has agreed to vary its contract with Endeavour Industries and provide a drop-off point for bulky recyclables and co-mingled recyclables at its waste management centre.
The arrangement, agreed at the most recent council meeting, operates outside the usual yellow bin service provided to residents.
Councillors unanimously agreed to remove the requirement for Endeavour to provide the drop-off point at its Sinclair Street recycling yard.
It came after the not-for-profit organisation wrote to the council stating it had "serious concerns over the safety of our staff, members of the public and contractors," amid the COVID-19 pandemic.
As a result, the drop-off point was temporarily moved to the council waste management centre in April.
Now it will become a permanent arrangement.
A council spokesman said the Endeavour site had limited space for a safe purpose-built drop-off point due for residents away from machinery and truck movements.
"There have also been ongoing issues with continued dumping of waste received with recycling left at Endeavour Industries. These waste streams are accepted at all of the council's waste management centres on an ongoing basis," he said.
Endeavour general manager Sonya White said the shift had led to a significant reduction in the dumping of rubbish and contaminated material including sharps and dead animals.
The council pays the organisation $615,553 annually for the recycling contract but removing the drop-off point obligation will reduce this by $6155.
Waste and recycling business manager Teena Riley said the parties had enjoyed a good working relationship over many years.
"This is largely because Endeavour Industries provides a valuable contribution to the community, including employment for vulnerable people," she wrote in her report.
"...The COVID-19 pandemic highlighted the inherent risks in of recycling processing using a hand sorting facility such as that utilised by Endeavour Industries."
Deputy Mayor Peter Walker, an Endeavour board member, applauded the parties' cooperation.
Meantime, residents can dispose of cardboard or co-mingled recyclables only at the council's waste centres for $6 a trailer load.
A council spokesman said this fee did not cover the costs of providing appropriate waste collection receptacles, the cost of staff who assist with sorting of recycling, or the transfer of this waste to Endeavour. However there were no immediate plans for the fee to rise.
"Residents are encouraged to sort their rubbish, as a trailer load of recycling ($6) costs significantly less than the $35 charge for a load of sorted, mixed waste. Residents with a rural waste card are also able to dispose of recyclables and cardboard as part of their weekly disposal allowance," he said.
"Furthermore, during the annual bulky waste free weekend, the council accepts recyclables free of charge. We work closely in a positive manner with Endeavour Industries, which will continue, as they will still process recycling collected during the domestic waste collections."