The MRF Opportunity Review was initiated in 2016 to develop a recommendation for the preferred MRF ownership structure and related recycling processing contract arrangement for Niagara Region considering the possible impact of the Provincial Extended Producer Responsibility (EPR) legislation. The review is to inform municipal decision making regarding MRF infrastructure planning, possible asset divestiture and changes to Niagara Region’s Blue Box processing services over the next 10 to 25 year period.

The driver of this review was that the Ministry of Environment, Conservation and Parks (formerly the Ministry of Environment and Climate Change) had previously identified that the transition of the Blue Box program to full EPR would occur over a five year period and as a result the review was to respond to the following:

●  Council Report PW 12-2016, February 16, 2016 recommendation ‘that staff DEVELOP recommendations for the Material Recovery Facility processing operations for Committee’s consideration’;

●  Councilor Information Request from the May 30, 2016 Waste Management Planning Steering Committee (WMPSC) meeting to ‘provide information outlining options for the Material Recovery Facility pending legislative changes. (WMPSC-C 25-2016)’.

The phases of the review completed to date are largely related to the valuation of the MRF and identification of recommendations of options for consideration.  The completed phases consist of the following:

●  Phase 1 - MRF Market Appraisal of Buildings and Land, July 2017

●  Phase 2 - MRF Processing Lines and Systems, Rolling Stock and Equipment State of Repair Assessment and Valuation, August 2017

●  Phase 3 - MRF Business Valuation, Strategic Option Evaluation and Market Analysis, February 2018

Based on the recommendations from the last project phase, Niagara Region Council direction is to proceed with Phase 4 of the review although the status and future timing of the transition of the Blue Box program to full EPR is still unknown.

Phase 4 will consist of an additional assessment to identify the preferred MRF ownership structure and transaction option along with the related recycling processing contract arrangement for Niagara Region. This includes use
of the Negotiated Request for Proposal process, among other possible alternatives,to determine any future opportunity for the MRF. In the event the recommendation is not to maintain status quo, the proponent must provide an associated implementation plan for the recommended change(s).