Title
Materials Recovery Facility Operations and Materials Marketing Requirements Contract Amendment (Ordinance S-49000)
Description
Request to authorize the City Manager, or his designee, to allow additional expenditures under Contract 131492, Materials Recovery Facility Operations and Materials Marketing between the City of Phoenix and ReCommunity (now Republic Services). Further request to authorize the City Treasurer to accept, and for the City Controller to disburse, all funds related to this item. The additional expenditures will not exceed $7,500,000.
Report
Summary
Republic Services/ReCommunity processes the City’s recyclables and is responsible for marketing recyclable commodities that are successfully captured through the program. The contract was originally approved by City Council on June 8, 2011, for a 10-year term with three, one-year options to extend, and has been amended several times over the term to address changing market conditions.
The City is requesting funds be added to the contract to cover operating expenses through June 2023, which covers the current contract extension term and an additional five months, if necessary. These additional funds are needed due to the Consumer Price Index inflation adjustments resulting from recent economic conditions along with increases in the recycling tonnage processed at the North Gateway Materials Recovery Facility.
Contract Term
Contract 131492 was approved by City Council on June 8, 2011, for a 10-year term with three, one-year options to extend to Jan. 31, 2025.
Financial Impact
Upon approval of $7,500,000 in additional funding, the revised aggregate value of the contract will not exceed $64,680,453. Actual fees and revenues from this contract and amendment may be higher or lower depending on recycling tonnage processed and commodity sales.
Funding is available in the Public Works Department's budget.
Concurrence/Previous Council Action
Contract 131492 was approved by City Council on June 8, 2011. City Council approved contract amendments on Sept. 30, 2015 (S-42059), Feb. 6, 2019 (S-45359), June 5, 2019 (S-45781), and Dec. 2, 2020 (S-47157).
Location
North Gateway Materials Recovery Facility, 30205 N. Black Canyon Hwy.
Council District: 2
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works Department.