The City of Richmond could be out of pocket hundreds of thousands of dollars as a result of a decision by Multi-Material BC to switch its processing site for blue box recyclables.
"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 Suzanne Bycraft, the city's manager of fleet and environmental programs, about the collection site switch from Richmond to Surrey.
The city signed on with MMBC, a new non-profit environmental stewardship organization, to collect recyclable materials under a B.C.-regulated program, to be launched 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," notes the report.
"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)."
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 their 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 recycling fees presently charged to residents under the existing regime, should city council decide to reduce them.
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 local politicians don't reduce residential recycling charges to counter MMBC's incentive given to the city, the critics claim it's tantamount to a double-tax.
Under the changes more recyclable materials will be collected curb side. Residents should expect new sorting materials next month.
One time costs associated with these changes will be $520,000.
Bycraft recommended a letter be sent to MMBC addressing the financial and operational concerns.
