The public inquiry into Shellharbour City Council has revealed a complete lack of understanding among councillors as to their role in the tender process.
Ratepayers are now paying nearly $2 million extra for rubbish collection and disposal because councillors did not follow the advice of staff and independent consultants.
ALP councillors have told the NSW Government's inquiry into their council that they had no idea they were acting illegally when they opted to award the waste contract to the incumbent, rather than the company recommended by the tender evaluation panel.
Graham Standen, the council's customer and environmental group manager, told the inquiry yesterday that the councillors' decision would add an extra $1.9 million to the waste bill over a six-year contract. He had warned the councillors in December that their decision would cost around $400,000 extra a year.
"I advised it would be in the order of $19-20 extra per year per household," he said.
Councillor Tom Hawker took the witness stand yesterday and, after lengthy questioning, told the commission it was unreasonable to expect councillors to know their error if none of the council staff had pointed it out at the time.
He did not understand why the tender came before councillors if they didn't have the option to pick the one they preferred.
The counsel assisting the inquiry, Daniel Meltz, asked Cr Hawker if he knew councillors had the option to reject the recommended contractor and opt to put it out to tender again. This is the only legal avenue open to councillors if they are unhappy with the tender in front of them.
The council's general manager, Brian Weir, conceded that he too did not know the councillors' actions were illegal.
Mr Meltz asked Mr Weir if the motion passed by the councillors to award the contract to Thiess was illegal.
"I didn't have that view at the time. I was surprised by the decision. If I thought it was illegal, if my staff drew attention to it I would have taken action," Mr Weir said.
Senior council officers last week gave evidence that the ALP councillors had caucused the waste tender decision and decided to award it to the incumbent, despite regulations that they go with the company already chosen, and despite significant extra costs to the council.
The eight Labor councillors have all been grilled on the matter during the hearings, and asked if they knew the company was a state ALP donor.
Thiess is listed as a donor to the NSW Labor Party and also the NSW Liberal Party on the Election Funding Authority website.
The Queensland-based company donated $57,908 to NSW Labor and $10,000 to NSW Liberal.
Cr Hawker said he and others had gone with the incumbent because they were concerned about workers losing their jobs before Christmas, and price wasn't everything.
"To me that's Thatcherism. Not looking at society things, just looking at money," Cr Hawker said.
"I'm an accountant, I'm used to looking at figures but price is not everything.
"I don't see the difference you're talking about, $13 per household, and I'm sure people of this city for $13 per household would be quite happy to keep people in jobs."