Municipalities across British Columbia are finalizing decisions about whether to enter into a curbside recycling contract with the industry-led Multi-Material B.C. (MMBC), or go it alone with a private contractor.
As the September 16, 2013 deadline approaches, restrictive conditions of the contract are making a number of B.C. municipalities unsettled, primary due to penalties that could incur under the agreement, expected to be a five-year contract with potential for a two-year extension.
B.C. municipalities such as Chase, Prince George and Kitimat are currently weighing their options.
While municipalities are offered financial incentives of $32 per household for collection, the contract includes a series of penalties that could be levied. For instance, if the recycling contamination rate exceeds three per cent, a $5,000 fine would be levied against the municipality by MMBC. If anything other than packaging or paper products wound up in a residential collection box, or if industrial, institutional or commercial materials wound up in the residential box, it too, would be considered contamination.
The municipality also has to provide all containers required for the program and deliver collected materials to the MMBC-selected processor, which can be anywhere within a 60-kilometre radius. MMBC will pay 60 kilometres mileage, but it’s unknown if that will be enough to cover both fuel and wages. Even labour shortages could trigger the hefty fine.
The recycling contract likely won’t be implemented until May 19, 2014.
By turning down the MMBC offer, municipalities allow MMBC to issue a request for proposals to find a contractor to provide the service. A municipality could also potentially issue a bid of its own.
MMBC on the 3% Rule:
“In general terms, this process would involve notification of the results of composition audits that identified more than 3% non-PPP, followed by additional audits after a specified period of time to provide an opportunity for improvement. If improvement is not identified through the subsequent audits, MMBC would require the development and implementation of a remediation plan, followed by additional audits after a specified period of time. If improvement is not identified, MMBC would provide written notice that the next composition audit identifying more than 3% non-PPP may be the basis for applying the service level failure credit. It is expected that the sequence of activities described above would have the effect of deferring service level failure credits for approximately the first year of operations.”
MMBC SEPTEMBER 4 REPORTING GUIDANCE WEBINAR
September 4 Reporting Guidance Webinar
How to prepare your material report. 10:00 a.m. to 12:00 nooon (PDT). Register to attend.