GILL — Like most Franklin County towns, Gill will be paying much more for the same recycling services starting in July.
Town Administrator Ray Purington estimated the rate changes will result in a $10,000 increase to the town’s total recycling costs each year. The Selectboard accepted the new price on Monday.
Gill’s recycling is processed by the same facility in Springfield that almost all towns in Franklin County use. Earlier this winter, it was revealed that the facility’s prices would be significantly higher when the five-year period for the towns’ contracts rolls over this spring.
It’s not that the Springfield facility is doing anything different; rather, the worldwide market for recycled materials has changed, and prices for processed materials have plummeted. In the past, China was a major market for recyclable materials. But in 2018, China changed its import policy, and no longer buys plastic waste from other countries.
This has flooded American recycling markets with a surplus of material, which in turn has driven prices down, according to Amy Donovan, program director of the Franklin County Solid Waste Management District.
This also means that the Springfield facility’s problem is not unique. Donovan and Purington both noted that facilities throughout the state are having similar problems.
The Springfield facility uses dual-stream recycling — separating papers and plastics — so its finished product is high quality, and in the past it has sold for a relatively high price, Donovan said.
The market value was so good that the per-ton credit Gill received from the Springfield facility was greater than the per-ton cost to process the materials. Thus Gill, like many other Franklin County towns, turned a minor profit on its recycling. For example, in 2018, Gill recycled 145 tons of materials, and made about $6 per ton, Purington said.
In the new contract, which goes into effect at the beginning of July, the cost to process the materials is higher than the credit the town receives, meaning that Gill will now lose money through recycling. The previous net gain of $6 per ton will now be a net loss of about $68 per ton. Based on 2018’s volume, yearly recycling costs will likely be about $10,000.
“You never like to have a brand new expense of that size,” Purington said. “It’s got the potential to be quite a budget buster.”
The Selectboard did its due diligence in terms of seeking out possible alternatives. The board got a second offer from USA Waste and Recycling, the company that handles Gill’s curbside pickup, which also has its own single-stream recycling service (paper and plastic are mixed) at a facility in Connecticut.
The Selectboard said on Monday that, in its analysis, this offer would not necessarily be any less expensive than sending recyclables to the Springfield facility. The board agreed to renew its contract with the Springfield facility, at the new price.
“It’s not financially pleasant,” Purington said.
Courtesy : www.recorder.com