Title
Intergovernmental Agreement with City of Prescott for Processing Recyclable Materials (Ordinance S-45907)
Description
Request to authorize the City Manager, or his designee, to enter into an Intergovernmental Agreement (IGA) with the City of Prescott to accept and process recyclable materials collected in the City of Prescott and delivered to the City of Phoenix's North Gateway and 27th Avenue Material Recovery Facilities (MRF). 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 Prescott offers recycling services to its residents and has delivered these recyclables to the City of Phoenix under the terms of an IGA for processing. The City of Prescott 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 the City of Prescott for recycling tonnage processed at the two City MRFs, which is designed to ensure all costs associated with processing recyclables are recovered by the fee. The terms of this IGA include:
• In a market with low recycling commodity prices, the City of Phoenix will charge a processing fee to the City of Prescott, and no revenue share to Prescott will be available.
• In a market with high recycling commodity prices, the City of Prescott 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, the City of Prescott will deliver up to 7,000 tons of recyclable materials to City of Phoenix facilities. This agreement may also allow the City of Prescott to deliver additional waste streams that may have value including but not limited to refuse, green organics and food scraps at tipping rates established in accordance with Chapter 27 of the Phoenix City Code.
Contract Term
The one-year term of this IGA will begin on July 1, 2019 and conclude on June 30, 2020. Provisions of the IGA include four, one-year options to extend the agreement.
Financial Impact
Over the life of the agreement, Prescott's 50 percent of the revenue share is not expected to exceed $525,000. Funds for the revenue share payments to the City of Prescott are available in the Public Works Department's budget.
Concurrence/Previous Council Action
The City Council previously approved IGAs with the City of Prescott on June 5, 2013.
Location
North Gateway Material Recovery Facility
30205 N. Black Canyon Hwy.
Phoenix, AZ 85085
Council District: 2
27th Avenue Material Recovery Facility
3060 S. 27th Ave.
Phoenix, AZ 85009
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works Department.