Title
Intergovernmental Agreement with City of Peoria for Processing Recyclable Materials - Amendment (Ordinance S-48670)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Intergovernmental Agreement 149287 with the City of Peoria, to accept an additional infrastructure investment from the City of Peoria for the North Gateway Transfer Station Material Recovery Facility equipment upgrade and provide for credits for the investment. Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item. The additional funding received in this amendment will not exceed $200,000.
Report
Summary
The purpose of this amendment is to update the terms of the Intergovernmental Agreement (IGA) in consideration of City of Peoria’s $200,000 investment for the North Gateway Transfer Station Material Recovery Facility (MRF) equipment upgrades. With Peoria’s investment, in a market with low commodity prices, the City of Phoenix will credit the portion of processing fees owed by the City of Peoria up to a maximum of $200,000 over the term of the IGA. The City of Peoria pays the City of Phoenix for each ton of recyclables accepted and processed at the MRFs. The processing fee per ton that Peoria pays applies a blended rate per ton shipped from the City of Phoenix MRFs to different commodity brokers.
Contract Term
The IGA term will remain unchanged, ending on Dec. 31, 2023.
Financial Impact
This amendment is not adding any new expenses. Actual fees and revenues from this IGA and amendment may be higher or lower depending on recycling tonnage collected and commodity sales.
Funding is available in the Public Works Department's budget.
Concurrence/Previous Council Action
The City Council approved IGA 149287 (Ordinance S-45286) on Jan. 9, 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 7
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works Department.