$134,063 in escrow in recycling-bill fray

District, contractor at odds over debt

A state agency is keeping in escrow $134,063 -- 10.4 percent of its budget -- that was once reserved for a curbside recycling incentives program and has not paid for the nearly five months that it has continuously been billed for that program because of a dispute between the recycling district and its contractor over whether it owes the money.

Waste Management has charged the Regional Recycling and Waste Reduction District -- also known as the Pulaski County Regional Solid Waste Management District -- for the Recyclebank program from April until the middle of August for a total bill of $53,000.

In August, the district's board of directors voted to cancel the Recyclebank program after board members and district officials expressed disappointment in the program's results and rewards.

The program operated for more than two years, and curbside recycling customers in Pulaski County were able to sign up for and redeem rewards for recycling until the service was canceled. The district received intermittent reports during that time on the program's progress and usage.

"We don't think that we received any services for the amount of money that they're demanding," said John Roberts, the district's executive director.

For now, the district is keeping the funds in escrow in case a judge orders it to pay Waste Management, Roberts said. The district is also hoping to enter another rewards program, possibly before the next fiscal year, beginning July 1.

"I think that's a good move on their part," said George Wheatley, public sector services manager for Waste Management.

The district contracted with Waste Management for a "Think Green Rewards" program, which turned into Recyclebank after Waste Management entered into a partnership with the New York-based company.

Through a partnership with Recyclebank, the SC Johnson Co. funded the first two years of the program. After that, the program's cost was to be split by Waste Management and the district.

This fiscal year, which began in July, the recycling district budgeted for the incentives program for the first time as it also ended the $135,000 recycling drop-off centers throughout the county at the start of the fiscal year.

Waste Management has paid Recyclebank $106,000, which includes the portion that it says the district now owes it under contract.

"We think without a doubt they are under contract for that," Wheatley said. "Why would they make a motion at the last meeting to stop the service if they didn't have the service?"

But district officials have recently questioned whether the district was ever in a contract for the Recyclebank program.

"Until they show me that we actually owe the money, I'm not particularly interested in writing them a check," Roberts said. "The communications between Recyclebank and the district have been sparse at best. We are proceeding with the idea that we no longer have any type of agreement or arrangement with Recyclebank."

The Recyclebank program offered rewards for people eligible for curbside recycling in three cities in Pulaski County: Little Rock, North Little Rock and Sherwood. It had a 20.7 percent participation rate when it was canceled in August.

The three cities, the district and Waste Management entered into a contract in 2011 for single-stream curbside recycling in each city beginning in April of 2012. The contract included the "Think Green Rewards" program.

Curbside recycling has a participation rate of more than 80 percent in the three cities, Wheatley said, up from 37 percent before single-stream recycling and Recyclebank were offered. Wheatley said he gives the district kudos for that difference.

Single-stream recycling allows residents to place all of their recyclables into a single container instead of sorting them.

Metro on 09/28/2014

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