The truck wash at the former Warrnambool saleyards site - which had been projected to make a $117,000 loss - will instead be closed by the end of the year.
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Declining use since the closure of the saleyards in December 2022, and "significant" works needed to upgrade the ageing facility are behind the decision.
Councillors voted 5-1 to close and decommission the truck wash at their meeting on Monday, May 6, 2024.
Chief executive officer Andrew Mason said the decommissioning of the former saleyards was "well advanced".
Cr Debbie Arnott said staff had maintained the truck wash while the saleyards were being decommissioned by staff but they would no longer be on site to oversee the operation by the end of June.
"Declining use and increased operating costs clearly indicate the need to cease these operations," she said.
Cr Arnott said there were alternate providers of truck wash facilities in Mortlake, Camperdown, Hamilton, Casterton, Mount Gambier and Colac.
She said council staff had met with the Midfield Group - the key user of the truck wash facilities - and had been informed that the company had plans to develop their own truck wash for their fleet.
Cr Arnott said increasing financial losses were projected if the council kept the facility going and "significant" capital expenditure needed in the future.
"So it is important that this truck wash has an end of life and it is closed by December 31," she said.
"It's a prudent and financially sound decision to cease operation."
Cr Vicki Jellie said usage had declined by half over the past year or so and the projected $117,000 loss "cannot happen".
Cr Arnott and Mayor Ben Blain both said the truck wash was not council's core business.
Cr Blain said the closure of the facility would be an inconvenience for some of the users. "I'm not oblivious to that. But moving forward there are other options," he said.
Cr Blain said even though the council was meant to stop having staff on site from June 2024, the council had the option to run to the end of the year until other facilities were built or there were other options on the table.
"We are trying to give everyone as much lead time as possible. We're not just trying to take it away," he said.
Cr Blain said despite the closure, there would still be truck parking on the site.
Cr Richard Ziegeler was the only councillor to vote against the motion. Cr Angie Paspaliaris was not at the meeting.