Eligibility
Who is considered ‘eligible’ to participate in Phase 1 as a curbside and/or multi-family collector?
Phase 1 communities are considered eligible if they have: a minimum population of 3,500 persons, are currently operating curbside recycling with a direct agreement with SK Recycles under the shared responsibility program and be a maximum drive distance of 300 kms from Saskatoon or Regina.
Community-Led Model
If the city decides to sign a Master Services Agreement (MSA) and statement of Work (SOW) with SK Recycles under the community-led model, do they decide who the main collector of recycling is in their community?
Yes, if a community chooses the community-led model, it becomes the ‘collector’ and presides over operational decisions such as with whom to contract with.
Will a community maintain the flexibility with rescheduled collections due to holidays or other disruptions to ensure it does not conflict with green or black cart collections?
In a community-led model, the local government would continue to make operational decisions such as determining the collection schedule. If collection is scheduled to occur on a holiday, the municipality will need to coordinate directly with the Designated Facility and with SK Recycles, at least ten business days in advance of such holiday to schedule the delivery of in-scope packaging and paper products (PPP).
Program-Led Model
What happens to collection containers already implemented in an area where program-led collection is requested/implemented:
On a case-by-case basis, SK Recycles would either negotiate with the collection containers’ owner (private or municipal) for a transfer of carts already deployed or would arrange to purchase its own if transfer were not available or determined to not be cost-effective for SK Recycles.
What inventory controls will be implemented if SK Recycles assumes control of the program under the program-led model?
SK Recycles will adopt applicable inventory controls with its contractor to manage collection containers. Where possible, SK Recycles will adopt various efforts to minimize stolen, damaged or lost collection containers. For example: encourage residents to store their collection containers in secure locations and to set out/return their collection containers as quickly as possible; work with contractors to return collection containers in a safe and secure manner.
Under the program-led model, is SK Recycles responsible for determining all the operational aspects of collection (i.e., frequency, collection type – bins/bags, service levels)? Will SK Recycles be responsible for administrative work and customer service, or will this be the responsibility of the municipality? How will this be different under the community-led model?
Under the program-led model, SK Recycles will be responsible for determining all operational aspects of collection and administrative work; however, this will be done in consultation and collaboration with the municipality. SK Recycles is committed to delivering an effective and efficient recycling program with minimal disruption. In a program-led scenario, SK Recycles will look to leverage a community’s existing systems (e.g., Recycle Coach/Recollect system) as much as possible. In the community-led model, the community will be responsible for administrative and customer service work.
If a municipality has both curbside and multi-family recycling collection program, can it choose which one(s) it wants to operate?
Yes, a municipality has the option of turning over one or both collection programs to SK Recycles under the program-led model, subject to the criteria outlined in the Program Plan. If the municipality is intending to turn over one service to SK Recycles, it is SK Recycles preference for both to be turned over (assuming the program meets the criteria in the Program Plan), but it is entirely up to the municipality.
Post-Collection
When will we know where our Designated Facility is for a Phase 1 community-led launch?
Our intention is to mirror the existing post-collection network as much as possible, where practical and cost-effective. The post-collection team is having ongoing discussions, and this information will be shared when feasible.
Given that post collection will no longer be the responsibility of the municipality, can you clarify how that will change from what is currently happening?
SK Recycles will have a direct contract with service providers that are receiving collected material, sorting and processing material, or transporting material from receiving facilities to material recovery facilities or end markets.
How are you measuring the distance to a ‘Designated Facility,’ from the city center?
Yes, the measurement is from city center to the Designated Facility to determine which Designated Facility top-up tier a municipality will be classified under.
Incentive Rates
What are the incentive rates? How do the rates differ from current collection rates?
Incentive rates have been shared with the Phase 1 working group with the opportunity for each local government to provide feedback on the proposed rates. Rates are set to reflect the scope of work required under the new program, including the removal of costs associated with the post-collection management of PPP.
Does the proposed draft incentive rate include sorting and processing activities?
No, this is a cost that collectors will no longer bear directly. SK Recycles will be managing these activities and costs directly. The draft incentive rate proposed is for collection, promotion and education, and transportation of curbside-collected material to your Designated Facility only.
How will recycling contamination be managed in the new program? Currently, Material Recovery Facilities (MRFs) are sending contaminated material back to the municipality to manage for disposal or in some cases, billing the cost of disposal back to the municipality.
Any not accepted material (i.e., “contamination”) collected along with PPP becomes SK Recyles responsibility to manage through our agreement with the MRFs. Those costs (e.g., tipping fees) will be absorbed by SK Recyles. Municipalities acting as a collection service provider to SK Recyles under the community-led model will be required to work towards reducing contamination levels in accordance with the terms of the SOW.
Under the new program collection model, is there a restriction on what fees we can charge to residents for household recycling?
Under the community-led collection model, the intent is for the collector to not charge residents for the value of the incentives being paid by SK Recyles. If a collector needs to charge residents to make up for any gap(s) between their collection costs and the incentives paid by SK Recyles they could do so. For example: if SK Recyles pays a collector $40/household but their service costs $45/household, they can charge the difference ($5/household). For further information, please refer to the draft SOW Section 6 Additional Terms – 6.1 No Double Charge.
How will this new funding affect the quarterly payments?
This will depend on what a municipality decides to do:
- Status-Quo: no change to quarterly payments until 2027.
- Community-led model: proposed incentive rates have been provided to the working group for input.
- Program-led model: no payments made; SK Recyles assumes all operational responsibilities.
How are the incentive rates changing pre versus post transition? Will promotion and education be included in these rates?
SK Recyles intent is to provide financial incentives that drive efficient and effective collection of PPP by municipalities that wish to retain the role of providing this service to their residents. They are designed to provide collectors with sufficient incentive to collect the amount of PPP required by SK Recyles to meet its targets and to cover fair and reasonable collection costs borne by contracted collectors operating efficient programs.
SK Recyles shared draft financial incentives with the Phase 1 working group; proposed rates were derived from the following:
- 2022 Cost Study
- Inflation data
- Added cost drivers e.g., requirement to transport to a Designated Facility.
- Area scan of incentive rates from other PPP stewardship programs in Canada
- Promotion and education top-ups.
Will SK Recyles cover the cost of a contract regardless of where it falls compared to the incentive rate offered?
SK Recyles has shared the proposed incentive rates applicable under the community-led collection model. Those rates are intended to be the full amount SK Recyles will provide to municipalities that wish to function as a collection service provider to SK Recyles. It is the responsibility of the collector and their procurement process to obtain a competitive rate.
Contracts
If my community signed a multi-year agreement with a contractor to collect recycling and the agreement goes beyond December 1, 2027, how would this transition affect our community in relation to that contract? Would we need to break our contract?
SK Recyles recommends discussing options to amend your existing agreement with your collection contractor, as the community will need to decide in advance of December 1, 2027, about how they wish to proceed. SK Recyles will no longer provide incentive rates under the shared responsibility model after December 1, 2027. There are several options available, many of which would require an amendment or early termination of the community’s contract with their collection contractor, including:
- Moving forward as a collection service provider to SK Recyles under the community-led collection model by signing a new MSA/SOW prior to December 1, 2027;
- Turning over service to SK Recyles via the program-led collection model and continuing with the shared responsibility payments until the launch date of SK Recyles provided service (if prior to December 1, 2027);
- Turning over service to SK Recyles via the program-led collection model and signing a short bridging agreement under the community-led collection model to function as a collection service provider under the program-led collection model until the launch date of SK Recyles service; or
- Continuing with the shared responsibility payments until December 1, 2027, and operating the program independently of the SK Recyles program without payments by SK Recyles after that date until the collection contract expires (though this option is not recommended and SK Recyles does not believe this will be required).
As a private collector, how will this affect my current contracts with communities who are already SK Recyles members?
There are several options available to municipalities which may require an amendment to their existing contract with their collection service provider depending on the terms of the contract. As SK Recyles is not party to these agreements, we cannot speak of their direct implications.
Why has there been no discussion regarding the fact that a contracted collector will not be allowed to be the post collection contractor? As it stands, most of the existing recycling being done today is collected and processed by common entities.
SK Recyles will certainly be contracting with post-collection service providers; however, there will be separate contracts for collection and post-collection. It is expected that most private companies will continue to provide both collection and post-collection services. There is no limitation on companies providing both collection and post-collection services moving forward, but all post-collection services moving forward will be contracted through SK Recyles.
Other
Will smaller urban communities that are not currently signed up for SK Recyles be able to participate in the future?
Once SK Recyles has developed the Community Curbside and Multi-family Collection Eligibility Criteria for Phase 2, which will include a formal consultation process, communities that meet that criteria that are not currently included in the SK Recylesprogram, if applicable, will be provided with a timeline and process for onboarding into the program.
With full EPR transitioning, where do municipalities find themselves in terms of having a say over local waste management and decisions? Where there are conflicts between the producers and municipalities, are there considerations to resolve the conflicts?
With full EPR transitioning, municipalities have a choice with how they would like to offer the collection and processing of household paper and packaging products. They can choose the community-led model, the program-led model, or remain status quo until the shared responsibility model option is no longer available as of December 1, 2027. The MSA and SOW offer the terms with which SK Recyles and the community will operate under the community-led model.
If the collection of glass bottles and jars is to begin in Phase 1, is there going to be a safe and secure way to collect glass? One of the methods is the integration of the introduction of glass collection at SARCAN depots. Is SK Recyles talking with SARCAN about opportunities?
SK Recyles is actively working on the development of a glass collection model for Phase 1, which includes discussions with SARCAN.
“Multi-family collection” is defined as the collection of PPP from residential complexes with five or more units. Does that mean that units between 2 and 4 are not considered multi-family collection anymore going forward? If so, will that conflict with the existing provincial and municipal zoning and subdivision bylaw?
In accordance with the Program Plan, Curbside collection is defined as the collection of PPP from single-family dwellings, buildings with up to four households and row house complexes with any number of households where each household sets out material separately for collection on a weekly or bi-weekly basis. Multi-family collection is defined as the collection of PPP from residential complexes with five or more units where all households deposit their recycling at a centralized location in shared containers located at or immediately adjacent to (and on the same property as) the residential complex. Municipalities can define housing types in any way as they see fit, but for the purposes of determining whether a particular household will be considered as curbside for inclusion in a Curbside SOW (and payment per the appliable curbside incentive rate) or multi-family for inclusion in a Multi-Family SOW (and payment per the applicable multi-family incentive rate), these definitions will be applied.
What are service level failure credits?
Service Level Failure Credits (SLFCs) are deductions from the incentives paid by SK Recyles to the municipality associated with specific breaches of a SOW. While SK Recyles does not expect to apply SLFCs in all cases where a breach of a SOW has occurred, they are included in SOWs as an option of last resort and to ensure that service providers are taking all reasonable steps to ensure they are acting in compliance with the SOW. SLFC rates will be included in the final versions of the Curbside and Multi-Family SOWs when available.
What do municipalities do for recycling from existing depots? The meeting noted that this is covered in Phase 3, but how do we manage them in the interim? Can we even continue to operate depots/large bin collection centers? Or does this need to be removed as a service option until phase 3?
Municipalities operating existing depots in the SK Recyles program will continue to do so under the shared responsibility model until Phase 3.
Can Industrial Commercial and Institutional (ICI) material go to the same sorting/processing/end markets? Or will a municipality have to negotiate all of this with a third party?
As per the curbside collection procedure, material will not be collected from ICI locations unless it is collected and managed completely separately from In-Scope PPP on a separate collection route. A municipality would be solely responsible for establishing contracts with a third-party service provider for the post-collection management of recyclables from the ICI sector.
What happens to Assisted Collection programs?
Under the community-led model, municipalities may continue to provide an assisted collection service to their residents. Under the program-led model, SK Recyles will aim to continue this service provided reasonable criteria have been applied by the municipality to gauge resident eligibility.