A new long-term recycling contract for Curbside Recycling has been finalized between the City of Saskatoon and Loraas Recycling.

The new agreement with Loraas will take effect January 1st, 2020 and will run until the end of 2027. Russ Munro, Director of Water and Waste Operations with the City of Saskatoon says the new contract will see an increase in service fees for single-family and multi-unit homes.

Under the new deal, the monthly price for single-family households will be $7.38 in 2020 and $7.47 in 2021. That’s an initial increase of $1.72 from the current $5.66. The proposed increase for multi-unit homes in 2020 is $3.71 and $3.86 in 2021.

He credits the rate increases to increased pressures and shifts in the global recycling market.

“There’s a significant increase in the required quality of materials coming in. There are different materials that contaminate things like paper, such as thin film and some of those markets have dropped off.”

Munro says as a result of those markets dropping off, in return you don’t get as much of a favorable price for the sale of materials which results in the overall cost of the program.

The new contract will also see the removal of black plastics which include take out containers and coffee cup lids and the removal of paper coffee cups.

The black plastic is a lower-value plastic and is difficult to recycle due to its pigment. Coffee cups often contain a protective barrier called polycoat, making them more difficult to recycle.

Munro adds the increased rates will be reviewed by City Council during budget deliberations and that the City’s committee on Environment, Utilities and Corporate Services will review a detailed report on the new agreement on December 2nd.

The City says the contract is worth $46 million over 8 years.