Republic voices concerns over rising recycling costs

Recycling services in Canton will not stop in the immediate future, but Republic Services, the town operator of trash and recycling collection, informed selectmen earlier this week that the company is operating Canton’s recycling services at a substantial loss.

The operating loss, estimated at $179,000 annually, is due to new requirements and restrictions put in place by China, the world’s largest acceptor of recyclable materials.

Dan Higgins and Brian Skehan of Republic Services, who have long negotiated contracts with selectmen, asked the board to reopen the contract and adjust the recycling prices paid to Republic. The town has a contract in place with Republic for trash and recycling services that runs through June 30, 2021. Selectmen took the matter under advisement and may revisit it at a future meeting.

The operating loss is certainly not the fault of residents, who have enthusiastically embraced recycling in the last six years. In 2013, Canton residents and businesses discarded 7,550 tons of waste while recycling 1,120 tons — a 12.9 percent waste diversion rate. Under the Republic Services new automated collection system, Canton has cut its waste tonnage to 6,343 while upping its recycling to 2,002 tons for a 24 percent diversion rate. In six years, Canton’s waste tonnage has decreased by 16 percent, resulting in an annual savings of $80,000 and a savings since 2014 of $400,000.

With the current market rate of recyclable materials, Higgins said Canton’s disposal rate through Republic is significantly below the market rate and the town is saving $105,000 annually with Republic picking up the additional recycling costs.

In 2017, China announced its National Sword policy, which included dramatic changes for acceptance criteria of imported recyclables. Additionally, China banned all mixed paper from import. Reductions took effect in March 2018, which Higgins said drove costs and changes at most recycling facilities in the country to meet new standards. Higgins said six independent recycling contractors have either reneged or gone out of business in the Boston area.

Higgins and Skehan said Republic Services is working with communities to readjust prices but told selectmen of Randolph’s decision to sever ties with Republic because they could not come to an agreement on the price adjustments.

Skehan said Republic Services and the town of Canton have enjoyed a great relationship and they wish to continue that relationship going forward.

Selectman John Connolly, who has negotiated past contracts, said Republic is under contract to provide services to residents until the contract expires.

Republic will work with the town on a public education campaign to notify residents and businesses on what is now acceptable for recycling pickup …

See this week’s Canton Citizen for more BOS meeting highlights. Not a subscriber? Click here to order your subscription today (also available in digital form).

Short URL: https://www.thecantoncitizen.com/?p=58035

Posted by Mike Berger on Jun 28 2019. Filed under News, Town Government. Both comments and pings are currently closed.