Title
Intergovernmental Agreement with City of Avondale for Processing Recyclable Materials (Ordinance S-47425)
Description
Request to authorize the City Manager, or his designee, to enter into an Intergovernmental Agreement with the City of Avondale to accept and process recyclable materials collected in the City of Avondale and delivered to the City of Phoenix's North Gateway and 27th Avenue Material Recovery Facilities (MRFs). Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item.
Report
Summary
The City of Avondale offers recycling services to its residents and has delivered these recyclables to the City of Phoenix since 2016. The City of Avondale would like to continue this arrangement. The City of Phoenix can continue to 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 Intergovernmental Agreement (IGA) will authorize the City of Phoenix to charge a processing fee to the City of Avondale for recycling tonnage processed at the two City MRFs, which is designed to ensure all costs associated with processing recyclables are recovered. The terms of this IGA include:
- In a market with low recycling commodity prices, the City of Phoenix will charge a processing fee to the City of Avondale, and no revenue share to the City of Avondale will be available; and
- In a market with high recycling commodity prices, the City of Avondale 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, the City of Avondale will deliver up to 6,000 tons of recyclable materials to City of Phoenix facilities.
Contract Term
The one-year term of this IGA will begin on or about July 1, 2021 and conclude on or about June 30, 2022. Provisions of the IGA include four, one-year options to extend the agreement.
Financial Impact
Over the life of the agreement, the City of Avondale's 50 percent of the revenue share is not expected to exceed $150,000. Funding for the revenue share payments to City of Avondale is available in the Public Works Department's budget.
Location
North Gateway Material Recovery Facility - 30205 N. Black Canyon Highway
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.