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The District of Sechelt will stay with its current residential curbside recycler, even though the move will increase the cost for the service by 11 per cent a year for the next two years.
"To see that we have extended for two years without tender the recycling contract for 11 per cent a year, that's compounded over 23 per cent, is probably welcome news for all the house owners who are going to pay more money," said Coun. Fred Taylor at the Oct. 5 council meeting. "I think that to get this out in the public is probably good news that we all can afford to have our budgets going up 11 per cent a year. This is probably a poor precedent, but at least all the other contractors know now."
The decision to stick with current contractor Direct Disposal was made in-camera, but the recommendation was released for council's public approval Oct. 5.
The original contract with Direct Disposal was signed five years ago, and staff explained that although the cost of oil and gas rose in that time, the price paid to the contractor by the District did not.
"So that's why this is 11 per cent for the two years, it's to catch up," said director of engineering and public works Ken Tang.
Tang said the actual cost of the increase will be about .50 cents per household per month in the first year and about $1.05 per household per month in the second year.
"One of the problems with the regional district budget two years ago was the change in the costs of the disposal and the resource because the prices had gone up, and that affected the budget," added Mayor Darren Inkster. "Council knows that because I told them. So I guess it is our come-uppance now in a sense, we are now being affected by that."
Council voted in favour of extending the contract for two more years based on a maximum 11 per cent a year cost increase, but Direct Disposal must also bring their recycling processing and storage facility into compliance with all District bylaws and regulations by March 31, 2012.
"One of the key issues is fire suppression. That was the big-ticket item and the contract was coming to an end so with the contract extension we've put those terms that [Direct Disposal] has to get those things into compliance and they have agreed to do so," said Sechelt's chief administrative officer Rob Bremner.
