Councillors at their recent meeting accepted a $8,440,000 tender from Pyrmont-based Lloyd Group Pty Ltd to construct the new Reuse Goulburn (RUG) facility at the waste management centre.

The company beat off two others to build the project, designed by Cardno Pty Ltd.

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Utilities director Marina Hollands reported the amount was above a 2019 estimate, completed as part of the design contract. The council has previously flagged a $7.5 million cost for the centre and in 2021/22 had allocated $6,750,000.

But Mrs Hollands recommended a further $896,947 be transferred from the domestic waste reserve to cover both a shortfall in price due to cost escalation in the past two years and to allow for a $500,000 contingency for potential construction variations.

She told The Post that as the structure would be built on an old landfill, there was a risk of what could be found underneath, including gases.

The project has attracted some grant funding, including $1,034, 951 from a Local Roads and Community Infrastructure Fund and $180,000 from the state government.

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Councillors signed off on the extra allocation. Deputy Mayor Peter Walker questioned the level of variation generally allowed for such projects. General manager Warwick Bennett replied it was normally five to 10 per cent of the tender price.

Mrs Hollands said construction work was expected to start in September and be completed by April.

The centre is billed as a modernised approach to sorting and handling of domestic waste that people take to the Sinclair Street facility. These include materials not picked up in weekly collections, such as mattresses, gas cylinders, electronic goods and other recyclables.

The first component comprises a 'tip shop,' enabling people to drop off materials that can be repaired and on-sold, such as furniture and building materials.

The second part is a new recycling shed near the current waste drop off bays. Residents can drive into the undercover, one-stop-shop for waste disposal with a community recycling centre for hazardous materials, drop off areas for recyclables such as mattresses, polystyrene and cardboard, plus facilities to allow the weighed disposal of items such as organic, co-mingled recycling and landfill waste.

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This will enable mixed loads to be separated at the point of disposal so that rather than having trailer load charges, the council can charge for recyclables at a cheaper rate than if disposed of in landfill.

There will also be an onsite education centre and a second weighbridge.

The council has marginally increased domestic and rural waste charges in recent years to pay for what Mayor Bob Kirk described as "a costly business."

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