The City of Richmond could be out of pocket hundreds of thousands of dollars as a result of a decision by Multi-Material BC, a new non-profit environmental stewardship organization, to choose Surrey as its post-collection site for blue bin and blue cart recyclables from Richmond.
"These costs could range anywhere between $250,000 - $750,000 annually, depending on whether a consolidation/transfer facility can be arranged, or if multiple additional trucks will need to be added," stated a report from Susan Bycraft, the city's manager of fleet and environmental programs, to the Public Works and Transportation Committee on Thursday.
The City of Richmond signed on with MMBC to collect recyclable materials under a new provincially-regulated stewardship program, starting May 19.
MMBC, however, retained the right to choose its processor and designate where the sorting plant is located.
The city retained its contract with Sierra Waste Services Ltd., which will now truck the materials to the MMBC designated processor (Green By Nature) in Surrey as opposed to the present processor in Richmond, Urban Impact, which lost out on the MMBC contract bid.
"The City was only recently informally notified…that the designated processing site for delivery of Richmond's recycling materials will be…in Surrey.
With this information only recently being made available, staff will begin identifying potential alternatives and options for how to most efficiently and cost-effectively manage delivery of the City's recycling materials to [Surrey]," noted the report.
MMBC is mostly funded by medium and large businesses, including multinational companies who must now, under law, collect and recycle their packaging materials for consumer goods (plastics, cups, jars, boxes etc.). The companies pay fees to MMBC to collect and recycle the materials. That money then goes to paying municipalities who choose to continue collecting materials on there own, like Richmond.
Under the terms MMBC will give the city $2.3 million annually as incentive to be part of its program. With that money the city is expected to pay Sierra Waste for curb side collection. It's expected to save the city $1.3 million, not factoring in the potential extra costs of trucking material to Surrey.
The "savings" also don't factor in a potential reduction of utility taxes presently charged to residents should city council decide to reduce current residential fees.
Critics of MMBC, such as NDP MLA and opposition critic for small business Lana Popham, charge that consumers will pay for recycling through higher prices for packaged goods. If residential recycling charges aren't reduced by local politicians to counter MMBC's incentive, the critics claim it's tantamount to a double-tax on recycling.
Under the changes more recyclable materials will be collected curb side. Residents should expect new sorting materials next month.
A new grey bucket will be distributed by Sierra Waste to separately collect glass materials. MMBC will not accept glass but the City of Richmond has chosen to continue this service.
One time costs associated with these changes will be $520,000, according to the report.
Bycraft recommended a letter be sent to MMBC addressing the financial and operational concerns.
City spokesperson Ted Townsend said final financial numbers and operational procedures have yet to be established.
"We always knew the numbers would change as we worked through the actual implementation of the system. …At the end of the day we see positive financial and environmental aspects," said Townsend.
He added that the city does lose some control of its recycling program.
"In the trade off we go from running the system itself to being a collector working for MMBC," he said.
Read more about MMBC and its affect on the city here
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