What to do about recycling may be one of the town of Signal Mountain’s first issues in 2016. WestRock, formerly known as RockTenn, the collection company contracted with the town to haul the collected materials, has said it will no longer purchase the town’s recycled material for resale.
Mayor Dick Gee said WestRock cited market conditions and a downturn in the value of recycled material. WestRock declined to comment.
The council is unsure whether WestRock will even continue to collect the recyclables if they have no value.
“Nothing like this has ever happened before,” said Gee. “It’s entirely unprecedented.”
The cost to run the recycling program last year was $58,553, he said. The resale of the material, as well as reduced landfill costs, offset that by $28,462. Without being able to recoup some of the expense for recycling through the sale of recycled material, Gee said Signal Mountain’s recycling program will cost the town more than it ever has.
This has the potential to impact the town’s relationship with Orange Grove. The nonprofit organization for people with intellectual disabilities is currently contracted to run the town’s Recycle Center.
Despite the rising cost, Gee said the council has no intention of ending the relationship with Orange Grove.
“We haven’t made any decisions yet, and it’s still under discussion with all parties,” he said. “We regret the idea that we might have to change the contract with Orange Grove. Our relationship with Orange Grove has been a very positive one and has grown over the years.
“They do a great service providing opportunities to those that might not have them in a normal work environment. It’s a relationship that has benefited both them and the town for years. You don’t just sever that kind of relationship on pure dollars and cents.”
Although he said the council will be looking at every avenue to maintain the relationship with Orange Grove, cost-cutting measures – such as the town staffing the Recycle Center and moving it to a part-time operation, or having volunteer hours available – are on the table.
“I think most Signal Mountain citizens would agree, environmentally, keeping the center open full-time is the right thing to do, but we’d have to have a council meeting and get input from the citizens,” said Gee.
He said the issue, which is still being evaluated, should be on the agenda for a town council meeting in the near future.
“The decision ahead of that we’ll have to make is if we’re willing to subsidize the entire cost for collecting recyclable material,” Gee added. “In the short term they’re [WestRock] willing to pick it up, but if they decide otherwise, we’ll have to move forward with a recommendation.”
While the economic value of recycled materials could bounce back sometime in the future, prices have been on a downturn for some time. The Wall Street Journal reported in April 2015 that lowered oil prices had dropped the value in recycled plastics, which are commonly derived from oil and petroleum, and that the resale of recyclables had been a harder sell across the world.
Email Shane Foley at sfoley@timesfreepress.com.