RARE upgrades will take longer to pay off as local recycling moves to Hawkesbury

A recent $1.14-million investment at North Glengarry's RARE recycling facility will take longer to recoup after the Hawkesbury-area joint recycling committee took its business elsewhere.

The decision in August to upgrade the facilities came on the recommendation of public works manager Andre Bachand, who said the alternative was to close the RARE plant.

One month later, however, the committee consisting of Champlain, East Hawkesbury and Hawkesbury entered into a three-year service agreement for collection with Recycle-Action, which recently opened its operations facility at 1301 Spence Street.

Effective November 1, the contract with Recycle-Action will match the $58/tonne tipping fee charged by RARE, while its plant is located closer to the three municipalities than Alexandria - resulting in additional savings on fuel and transportation costs.

Recycle-Action also donates $1 per metric tonne to support environmental activities organized by the region's youth. The company will report to council on a yearly basis as to how the funds were spent.

A report presented by North Glengarry staff on Thursday, November 3 discussed the effect of losing the Hawkesbury-area joint recycling committee on RARE's upgrade plan.

While the efficiencies of the upgrades will allow RARE to reduce staff and overtime operations, the loss of the Hawkesbury-area municipalities will slow down the payback of the upgrades; together, they represent 25 per cent of the plant's processing.

"The anticipated cost savings in staff reductions are $450,000 +/-, which would have resulted in a repayment schedule of 36 +/-," township staff wrote in the report. "With the loss of the Hawkesbury and area joint recycling committee contract, which is approximately 25 per cent of the currently-processed material, the anticipated payback time is 45 months +/-."

The report says there is a silver lining in that cloud, however, as the above predictions do not account for increased revenues from the improved quality of processed product; new types of commodities from improved and increased sorting; increased processing and revenue from new customers; and profits generated from higher commodity prices.

Bachand alluded to some of this in his August report, noting that interest in recycling has grown across eastern Ontario and some municipalities have inquired about RARE.

"There have been inquiries by municipalities in the area regarding additional processing capacity at RARE," he stated, citing The Nation, Clarence-Rockland, the City of Ottawa and the City of Cornwall.

Bachand was also optimistic that such municipalities would avoid sending recyclable materials to the Greater Toronto Area through local transfer stations - a plan supported by the Ontario government - as the transportation and greenhouse gas cost involved "does not make economic sense."

The RARE upgrades include an automated double-ram baler and combined conveyor for $438,600, as well as other sorting and bailing equipment and some site work for $694,650. Half the cost is being financed with municipal reserves and the other half with savings from increased efficiencies that are expected over the next three years.

The expansion plan is expected to allow the facility to increase its capability to 15,000 tonnes per year with only one eight-hour shift per day. The new equipment will also increase the quality of the facility's fiber products, improve the sorting of plastics, increase the number of accepted products and reduce the processing costs per tonne.

Bachand noted the RARE facility made a profit of $205,000 last year, without such upgrades. Chief administrative officer Daniel Gagnon also said the investment was safe, noting if things turn sour for RARE, the township will be able to sell off its equipment. In the meantime, the efficiencies represent an immediate cost savings for RARE.