Huxted, Town sign recycling contract
Shannon LeClair
Times Reporter
Earlier this year a Memorandum of Understanding (MOU) was signed between the Town and H&H Huxted Enterprises regarding recycling services. The 10-year arrangement has Huxted taking care of the recycling yard services at least at its current level of quality, if not better.
The terms of conditions have been defined within the MOU. Included in the 10-year-contract Huxted will receive approximately five acres of land at the current recycle yard as compensation for the first five years of the contract. The remaining five will be based on an annual assessment of the recycling operations financial position. For the first five years there is no cost to the Town, and in the final five years the maximum charge to the Town will be $100,000. The recycle yard had been operated with a more than $160,000 per year deficit. The worst-case scenario will see the Town paying a total of $500,000 over the next 10 years versus the minimum $1.6 million if they stuck with the current operators.
Councillor Earl Best voiced concerns about the proposal.
“I feel giving away five acres of town land is atrocious. I feel that paying up to $100,000 annually for services that we don’t do that we can help a private industry with their business is precedent setting and I certainly can not be in favour of this,” said Best.
Councillor Bob Sobol questioned the $100,000 amount that was being proposed.
Jesse Parker, director of engineering and operations for the town said he has spoken with Huxted and that there would be a financial assessment of the status of the business annually. The assessment will look at the revenues and expenses to determine fair compensation up to $100,000 for years six to 10 of the contract. The land to be transferred to Huxted will be subdivided and transferred with a clause that if the contract is broken in the first five years it will be returned to the town.
Councillor Dave Hamilton made a motion for the contract to be awarded to H&H Huxted as outlined in the proposal put forth by administration. The compensation includes the five acres of land and the annual amount will be determined in six to 10 years, and is not to exceed $100,000. Approximately $900,000 could be saved over the next 10 years. Councillor Earl Best was opposed to the motion.