Title
Intergovernmental Agreement with Maricopa County for Processing Recyclable Materials (Ordinance S-46362)
Description
Request to authorize the City Manager, or his designee, to enter into an Intergovernmental Agreement (IGA) with Maricopa County to accept and process recyclable materials collected in Maricopa County and delivered to the City of Phoenix's North Gateway and 27th Avenue Material Recovery Facilities (MRF). Additionally request the City Council to grant an exception pursuant to Phoenix City Code section 42-20(B) to authorize inclusion of mutual indemnification language that otherwise would be prohibited by Phoenix City Code section 42-18(A) and (B). Further request authorization for the City Treasurer to accept, and for the City Controller to disburse, all funds related to this item.
Report
Summary
Maricopa County offers recycling services to its residents and has delivered these recyclables to the City of Phoenix under the terms of an IGA for processing. Maricopa County would like to continue this arrangement. The City of Phoenix can accept these materials with some change of terms to address changing market conditions resulting in lower commodity prices and increased processing costs from contamination in the recyclables. This IGA will authorize the City of Phoenix to charge a processing fee to Maricopa County for recycling tonnage processed at the two City MRFs, which is designed to ensure all costs associated with processing recyclables are recovered by the fee. The terms of this IGA include:
- In a market with low recycling commodity prices, the City of Phoenix will charge a processing fee to Maricopa County, and no revenue share to Maricopa will be available.
- In a market with high recycling commodity prices, Maricopa County will pay a processing fee and will receive 50 percent of the net revenue share and the City of Phoenix will receive the remaining 50 percent.
Annually, Maricopa County will deliver up to 1,000 tons of recyclable materials to City of Phoenix facilities.
Contract Term
The one-year term of this IGA will begin on or about Feb. 1, 2020 and conclude on or about Jan. 31, 2021. Provisions of the IGA include four, one-year options to extend the agreement.
Financial Impact
Maricopa County will be paying Phoenix to accept recyclables to cover all expenses associated with the proper handling of the materials. If recycle market sales increase during the term of the agreement, Maricopa's 50 percent of the revenue share is not expected to exceed $150,000. Funds for the revenue share payments to Maricopa County are available in the Public Works Department's budget.
Concurrence/Previous Council Action
The City Council previously approved IGAs with Maricopa County on Nov. 20, 2013 and amended Jan. 5, 2016, Dec. 19, 2016 and June 6, 2019.
Location
North Gateway Material Recovery Facility, 30205 N. Black Canyon Hwy.
27th Avenue Material Recovery Facility, 3060 S. 27th Ave.
Council Districts: 2 and 8
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works Department.