Title
Intergovernmental Agreement with City of Peoria for Processing Recyclable Materials (Ordinance S-45286)
Description
Request to authorize the City Manager, or his designee, to enter into an Intergovernmental Agreement (IGA) with the City of Peoria to accept and process recyclable materials collected in the City of Peoria at the City of Phoenix's North Gateway and 27th Avenue Material Recovery Facilities (MRF). This agreement includes a $1 million infrastructure investment from the City of Peoria for the North Gateway Transfer Station MRF upgrade project in support of the City's lease purchase agreement for recycling equipment. Further request authorization for the City Treasurer to accept, and for the City Controller to disburse, all funds related to this item.
Report
Summary
Annually, the City of Peoria will deliver up to 20,000 tons of recyclable materials to City of Phoenix facilities. Under this agreement, Peoria may also deliver clean green organics to the City of Phoenix composting facility or solid waste at either transfer station, at tipping rates established in accordance with Chapter 27 of the Phoenix City Code. In consideration for the $1 million investment by the City of Peoria under this IGA, the City of Phoenix is providing:
- A five-year agreement term.
- 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 $1 million over the term.
- In a market with high commodity prices the City of Peoria will receive 75 percent of the net revenue share and the City of Phoenix will receive 25 percent.
Contract Term
The five-year term of this IGA will begin on Jan. 1, 2019 and conclude on Dec. 31, 2023. Provisions of the IGA do not include an option to extend the agreement.
Financial Impact
Over the life of the agreement, the revenue share for the City of Peoria is not expected to exceed $1,250,000.
Concurrence/Previous Council Action
The City Council previously approved IGAs with the City of Peoria in 2017 and 2007.
This item was recommended by the Water, Wastewater, Infrastructure, and Sustainability Subcommittee on Dec 5, 2018, by a vote of 3-0.
Location
The North Gateway Material Recovery Facility is located at 30205 N. Black Canyon Hwy. The 27th Avenue Material Recovery Facility is located at 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.