Title
Authorization to Enter into Lease Agreement with Closed Loop Fund for Zero Percent Interest Loan to Finance Recycling Equipment (Ordinance S-45259)
Description
An ordinance authorizing the City Manager, or his designee, to execute and deliver one or more installment-purchase or lease-purchase agreements, or supplemental or amended installment-purchase or lease-purchase agreements relating to use and acquisition of equipment to improve processing and recycling of solid waste materials by preventing or reducing the presence of contaminants in recycled materials; authorizing execution and delivery of other appropriate agreements in connection therewith, including but not limited to certificates necessary or appropriate for the financing and associated financing costs; authorizing the City Manager to take any and all other necessary or desirable actions in connection with such agreement and authorizing the City Controller to disburse all necessary funds therefor.
Report
Summary
Closed Loop Fund offers zero percent loans to municipalities to develop recycling infrastructure and waste reduction programs. Funding for the Closed Loop Fund comes from various manufacturing and retail companies such as Coca-Cola, Wal-Mart, 3-M, Proctor and Gamble, and Colgate-Palmolive, with a goal of advancing recycling technologies and developing the circular economy.
The Public Works Department desires to install optical sorting equipment, screens, conveyor belts, and other sorting equipment to improve the processing and recycling of solid waste materials by preventing or reducing the presence of contaminants in recycled materials. The equipment would be installed at the North Gateway Material Recovery Facility.
Financial Impact
This ordinance provides authorization to enter into a $3,000,000 lease purchase agreement with Closed Loop Fund to finance or reimburse costs of acquiring, constructing and improving real and personal property. The lease purchase amount would be repaid to Closed Loop Fund from recycling revenues over a five-year period at zero percent interest. Upon full payment of the lease purchase amount, the Public Works Department would own the installed recycling equipment.
Concurrence/Previous Council Action
This item was recommended for approval 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 Freeway.
Council District: 2
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher, Deputy City Manager Karen Peters, and the Public Works and Finance departments.