Positioning Your Program During Transition Mike Birett Managing Director, CIF

Transition…….. What does it look like? How long will it take? What does it mean to your program? The harsh reality is no one really knows Or at least, isn’t saying But does it really matter?

CIF has been preparing you for change Now that the time is here , what will you do? Frankly, CIF has been working to prepare you for this eventuality for years You’ve heard us talk about cost allocation in depots, the evolving tonne and the BC model for over 3 yrs. We’ve been working with you to prepare your mrfs for change for 7 yrs. So now the time is here. What will you do?

Curbside collection Contract term Service levels Material mix Consider 5yr contracts plus multi-yr extensions Service levels Think twice about atypical requirements At the very least, break them out separately Material mix Leave flexibility to add/subtract Ownership of carbon credits my comments today will focus on the transitional window but keep in mind that this is a long game so it there’s one message to take away its this Keep your options open So lets talk about the next few years Plan for the worst, hope for the best We’re assuming 5 max (3yr min) Watch those contract end dates 10 yrs is risky E.g., multi-res, event collection, ic&i

Curbside collection (cont) Program changes Exercise caution Watch your residue rates Due diligence Know your stop counts Know your ABCs What does giving up collection mean to your community? Avoid big moves like autocart It’s a big capital expense if stewards require everyone to go 2 stream Not likely but certainly grounds for a discount Absolute and compared to your peers

Processing Are you in or out? Know your ABCs Interim Cap Ex requirements Know your asset’s value Be prepared to sell or repurpose Can you compete? Will you operate at a loss and will it be allowed?

Depots It’s all about knowing your ABCs Asset management Consider liquidity of assets Depots will be a core part of any service level discussion so odds are you’ll be approached Its just a matter knowing if your costs are covered so you can make an informed decision They won’t need you but may be obliged to provide geographical coverage twice about managing materials on municipal properties unless the assets can be repurposed

Plan now Take the time to map out your interests Examine how your interests intersect various scenarios Keep your options open

What are our interests? Max diversion Minimizing waste management costs Service level Jobs in the community Understanding your community’s priorities will be crucial

Questions?