Title
27th Avenue Material Recovery Facility Equipment Replacement
Description
This report provides an update to the Community and Cultural Investment Subcommittee on the 27th Avenue Material Recovery Facility equipment replacement.
THIS ITEM IS FOR INFORMATION AND DISCUSSION.
Report
Summary
In the 1980s, the Mayor and City Council led Phoenix to establish a comprehensive solid waste management approach with a focus on reducing, reusing, and recycling. In response to this strategy, the Public Works Department commenced a commingled curbside recycling program. On June 28, 1995, Council approved development of a Material Recovery Facility (MRF) at the 27th Avenue Transfer Station as part of the Phoenix Recycles Program. The facility has been operational since Sept. 1, 1998. The City's second MRF opened at North Gateway Transfer Station in 2006. The objective of Phoenix’s recycling program is to conserve landfill space, which is becoming a challenge across the United States, and to create economic value by selling select recyclable materials (commodities) to various markets. By seeing this material as a resource, Phoenix has made the paradigm shift from a linear to a circular model of waste management whereas materials are diverted from the landfill and redistributed to create economic activity.
In December 2019, technology upgrades were completed at the North Gateway MRF to increase capture of commodities, improve quality of product, lower operating expense and increase revenue from commodity sales. Given the success of the North Gateway MRF upgrades, a capital project to replace the 27th Avenue MRF was included with the solid waste financial plan approved by Mayor and City Council on Feb. 11, 2020.
The 27th Avenue MRF operations were suspended in January 2021 due to the equipment reaching the end of useful life and no longer being effective at capturing commodities that are prevalent in the current recycle stream. Since the operational suspension, recyclables from the 27th Avenue facility are hauled to the North Gateway MRF for processing. The City hired a consultant to evaluate the 27th Avenue MRF and they confirmed the long-term benefits of replacing the MRF versus continued hauling to North Gateway. Replacing the 27th Avenue MRF equipment is critical to meet the current volumes of inbound recycling and prevent North Gateway from aging more rapidly at the current volumes. It will also provide critical MRF redundancy for the City and region, provide capacity for population growth and new waste-to-resource diversion programs.
The Request for Proposals (RFP) opened on Aug. 13, 2021 to replace the 27th Avenue MRF with state-of-the-art equipment with improved processing speeds, adaptability for new materials, reduced maintenance costs, and greater efficiency to increase the capture rate and product quality. The last day to receive bids was Oct. 6, 2021 and the City is currently reviewing bid proposals with third party technical review for anticipated award recommendation in December 2021.
To prepare the 27th Avenue MRF for equipment replacement, a contractor was selected and deconstruction of the 27th Avenue MRF equipment occurred in October 2021. A second contractor has been selected to assess the building condition and design improvements necessary to support the new equipment such as fire-life safety, HVAC and electrical components.
Concurrence/Previous Council Action
The City Council approved the Solid Waste Rate Increase and Capital Plan on Feb. 11, 2020, by a vote of 7-2.
The Transportation, Infrastructure and Innovation Subcommittee received an informational update on the Solid Waste Resources, Infrastructure and Financial Plan on Feb. 3, 2021.
The City Council approved the American Rescue Plan Act (ARPA) Strategic Plan that included a $10 million funding allocation to partially offset the estimated equipment replacement costs for the 27th Avenue MRF on June 8, 2021, by a vote of 7-2.
Location
27th Avenue Material Recovery Facility - 3060 S. 27th Ave.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works Department.