Phase 1 - Short term Contract PPP options - July 1, 2025, through October 1, 2026

At the January 6 Committee of the Whole Meeting, Administration outlined a number of options for Council’s consideration. Those options included:

Changes to how EPR PPP materials are collected at the Recycle Depot (Option 1)
Leaving the City’s recycling program as is (Option 2)
Only collecting EPR materials and stop collecting non-residential recyclable materials (Option 3)

Of the three options, Option 1 provided the best balance between all impacted areas from this decision (impact to City residents and Centra Cam), while still considering ongoing and future infrastructure replacement and maintenance, and the City’s overall budget. This also allows for a longer transition to how EPR PPP materials are collected and sorted, particularly if the City were to participate in Phase 2 of the EPR program (i.e. curbside recyclable collections).

For all three options, Administration worked with Centra Cam and Circular Materials to determine the anticipated impact on City revenues and expenses, which are summarized below:

	Option 1 – EPR loose collection (Recommended)	Option 2 – As Is	Option 3 – EPR Only
Summary	Start the transition, while maintaining/increasing the current level of service	Depot remains As Is collection and processing	Only EPR materials, all non-EPR allocated to other facilities
Service for EPR materials	Two large bins for bulk collection	EPR materials must be separated into nine bins	Large bins for bulk collection
Service for Non-EPR materials	As Is	As Is	No longer Accepted
City Revenue 2025	$384,146	$540,146	$80,000
City Expenses 2025	$461,000	$725,000	$147,625
Deficit	($76,854)	($184,854)	($67,625)

Community Impact	Minimal disruption to residents and non-residents Level of service for residential users increases as material sorting is significantly reduced (9 bins becomes 2)	Minor change to residents and non-residents for cardboard separation	Removal of recycling fee ($3/month) Moderate disruption to residents - Easier PPP sorting - New location for stewardship - Loss of lighting Major disruption to non-residential - No local option for PPP - New location for stewardship
Impact to City Operations	Baler costs would continue but lessen for Repairs of the baler Baler replacement would depend on extent of non-residential use	Cardboard Baler costs would continue (ongoing repairs and future replacement of baler still required)	Much of the site would become available for other potential uses
Impact to City Budget	EPR funding would cover the staff for EPR Bins to be provided and managed by the PRO Significant Operation costs decrease due to the transition of PPP materials Continued funding of non-EPR materials	EPR Funding based on market rates would fund 60% of the EPR material costs the remaining 40% to be funded by the City Continued funding of non-EPR materials	Minimal budget required as even Admin time is included within the contract with the PRO for management, advertising, public engagement, and public education

At the January 6 meeting, Council directed Administration to negotiate a contract with Circular Materials for the period of July 2025 through September 2026 on the basis of Option 1.