Title
Agreement for the Processing and Purchase of Recyclable Materials from the Curbside Collection Recycling Program (B)
This item is a request for the City Commission to approve a contract with SP Recycling Corporation for the processing of recyclables generated by the City's Solid Waste Residential Curbside Collection program.
Explanation
For the past fifteen years, the City's residential curbside collection contract has required the hauler to take responsibility for the processing and marketing of recyclables generated by the program. Throughout that period, the hauler has always sub-contracted the processing and marketing of recyclables, and the contractor, the sub-contractor, and the City have split the revenues from the recycled materials.
During the final months of the last residential collection contract, City and County staff (who work cooperatively on such matters pursuant to the Interlocal Agreement for Solid Waste Management between the City and the County) determined that the processing of the community's residential recycling would be best served by the City and County contracting directly with the processor and marketer of the recyclable materials. This decision was made in furtherance of the City and County's desire to retain ownership of the collected recyclable materials and maintain greater control over its final disposition. For that reason, the costs for processing recyclable materials were not included in the new contracts that the City and County entered into this year for their residential collection program.
City and County staff evaluated options for the procurement of a processor for the recyclable materials and determined that the current processor, SP Recycling Corporation, was a sole source for the purchase based on the following circumstances:
1.) SP Recycling is the only vendor within Alachua County able to process all of the materials collected through the City and County's residential collection programs.
2.) The recyclable materials collected through the City and County programs must be directed to the County-owned Leveda Brown Environmental Park in order to maintain the viability of the recycling component of the Park.
3.) SP Recycling is currently the Lessee of the recycling center at the Park through the end of its lease in 2016.
The County negotiated contract terms with SP Recycling Corporation to process the recyclables from the residential collection programs of both the City and the County at the rate of $45/ton, which cost shall be at least partially offset by revenues paid to the City and County for the market value of the material that is resold by the processor. The amount of revenue paid will be calculated using a sliding scale which will pay the City and County from 10% to 50% of the Weighted Average Price of the materials based on published commodity prices in industry publications, such as the Official Board Markets, the London Exchange, and Waste News, selected by the City and County. The proposed contract is for a seven (7) year term with an option for the City and County to renew for up to two additional five year periods. Staff recommends this term as it coincides with the term for the solid waste residential curbside collection contract which is the source of the recyclables for this contract.
The County entered into a Contract with SP Recycling Corporation on September 22, 2009.
Fiscal Note
Funding is allocated and identified in the Solid Waste Fund through the monthly residential Refuse Rate.
Recommendation
Recommended Motion: The City Commission 1) approve the sole source selection of SP Recycling Corporation; and 2) authorize the City Manager to execute the Agreement for the Processing and Purchase of Recyclable Materials from the Curbside Collection Recycling Program with SP Recycling Corporation, subject to approval by the City Attorney as to form and legality.