On Tuesday night, TRC agreed it would pursue the purchase of Challenge's Materials Recycling Facility and a business takeover and laid its conditions on the table for a better future working relationship with Challenge.

Tensions flared between TRC and the disability support service after the council split its waste contract into two parts; kerbside pick-up and recycling processing.

The proposal remains commercial in confidence at this stage but mayor Col Murray told the Leader he believes if the Challenge board accepts the conditions, it will be a "good outcome for everyone involved".

"I think most of the kinks have been sorted out between the two organisations, and there was unanimous support from the council last night [Tuesday] to agree on its position," he said.

"Whilst we can't preempt what the Challenge board might consider, I think it will be something that the community will be pretty happy with."

It comes as more than a year of lengthy negotiations failed to come to a solution for both parties.

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Keeping Challenge workers employed at the site has been "front and centre" throughout the negotiations, Cr Murray said, and was highlighted in discussions at Tuesday's closed council meeting.

"It was important for us to agree to a scenario that the Challenge board are able to consider and we certainly hope that'll be viewed favourably by Challenge," he said.

"We think it will, and we think the community will be pretty happy, but we're not in a position to disclose those commercial terms as yet.

"We look forward to the opportunity to fully inform the community of the outcome of these long, drawn out negotiations."

Challenge chief executive Peter Maher said council's terms and conditions were put to the board on Wednesday morning, and he expects the decision will be made promptly.

"We've had ongoing discussions with council and we've been working with council to get positive outcomes all along and I'm very comfortable that the outcomes being achieved will be excellent for everyone," he said.

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