Title
Reciprocal Agreement with Allied Waste Transportation, Inc., doing business as Republic Services of Phoenix, for Disposal of Solid Waste Material (Ordinance S-46519)
Description
Request to authorize the City Manager, or his designee, to enter into a waste exchange and Reciprocal Agreement with Allied Waste Transportation, Inc., doing business as Republic Services of Phoenix, to manage solid waste materials delivered for processing or disposal at City facilities. Further request authorization for the City Treasurer to accept, and for the City Controller to disburse, all funds related to this item.
Report
Summary
The City of Phoenix and Allied Waste Transportation, Inc. entered into an initial agreement for disposal of solid waste in April of 2011 based upon achieving operation cost benefits. The parties agree it remains mutually beneficial and good business for each party to institute a new agreement, with some changes to terms, to use the transfer station owned by the other on a reciprocal basis to support operations. This agreement creates business efficiencies for managing refuse collection and disposal with vehicle routing that reduces excessive travel time and distances, reduces air pollution, and maximizes fuel economy.
This agreement will provide for an equal exchange of 3,000 to 5,000 tons per quarter and will provide for either party to deliver excess tonnage to the other party to provide for additional cost-benefit. The agreement is structured to provide both parties access to the other parties post-collection facilities to achieve reduced vehicle travel expenses.
Contract Term
The initial term of this Agreement will begin on July 1, 2020 and conclude on Dec. 31, 2020. Provisions of the agreement include four, one-year options to extend the agreement.
Financial Impact
The City of Phoenix will be paying Allied Waste Transportation, Inc. for excess tonnage, beyond the agreed upon ton-for-ton exchange, delivered to Allied Waste transfer station locations at a value not to exceed $2.9 million over the term of the contract. Tonnage rates vary based on volume delivered. Based upon current routing, the agreement covers up to $1 million for the period of July 1, 2020 through Dec. 31, 2020. The remaining $1.9 million may be utilized in extension years if the savings in transportation costs exceed the tonnage rate in the contract as current routes are adjusted. Funds are available in the Public Works Department's budget.
Locations
North Gateway Transfer Station, 30205 N. Black Canyon Hwy.
27th Avenue Transfer Station, 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.