Title
Intergovernmental Agreement with Gila River Indian Community for Processing Recyclable Materials (Ordinance S-46637)
Description
Request to authorize the City Manager, or his designee, to enter into an Intergovernmental Agreement (IGA) with the Gila River Indian Community to accept and process recyclable materials collected in Gila River Indian Community and delivered to the City of Phoenix's North Gateway and 27th Avenue Material Recovery Facilities (MRF). Additionally request the City Council to grant an exception pursuant to Phoenix City Code section 42-20(B) to authorize inclusion of the following mutual indemnification language that otherwise would be prohibited by Phoenix City Code section 42-18(A) and (B). Further request authorization for the City Treasurer to accept, and for the City Controller to disburse, all funds related to this item.
Report
Summary
Gila River Indian Community offers recycling services to its residents and has delivered these recyclables to the City of Phoenix. Gila River Indian Community would like to continue this arrangement. The City of Phoenix can 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 IGA will authorize the City of Phoenix to charge a processing fee to Gila River Indian Community 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 Gila River Indian Community, and no revenue share to Gila River Indian Community will be available.
In a market with high recycling commodity prices, Gila River Indian Community 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, Gila River Indian Community will deliver up to 500 tons of recyclable materials to City of Phoenix facilities.
Mutual indemnification: “Each party (as "Indemnitor") agrees to defend, indemnify, and hold harmless the other party (as "Indemnitee") from and against any and all claims, losses, liability, costs, or expenses (including reasonable attorney's fees) (hereinafter collectively referred to as "Claims") arising out of bodily injury of any person (including death) or property damage, but only to the extent that such Claims which result in vicarious/derivative liability to the Indemnitee are caused by the act, omission, negligence, misconduct, or other fault of the Indemnitor, its officers, officials, agents, employees, or volunteers.”
Contract Term
The one-year term of this IGA will begin on or about June 1, 2020 and conclude on or about May 31, 2021. Provisions of the IGA include four, one-year options to extend the agreement.
Financial Impact
Over the life of the agreement, Gila River Indian Community's 50 percent of the revenue share is not expected to exceed $10,000. Funds for the revenue share payments to Gila River Indian Community are available in the Public Works Department's budget.
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.