Title
First Amendment to the Interlocal Agreement between Alachua County and the City of Gainesville for Recycling Processing (B)
This item is a request for the City Commission to retroactively approve an amendment to the Interlocal Agreement between Alachua County and the City for Recycling Processing; extending the term through FY20.
Explanation
Alachua County has provided processing and marketing of residential recyclables for the City of Gainesville since SP Recycling filed for bankruptcy in 2014. With the current depressed commodities prices and with the goal of creating a processing agreement that will remain sustainable despite market fluctuations, the City and County agreed to a new sliding scale tipping fee for FY19 that becomes a revenue share at commodity prices above $149/ton. Under this agreement the City will pay the County a processing fee on a sliding scale per ton based upon the blended total rate for commodity sales for the current month. This First Amendment extends the agreement through the end of FY20.
Fiscal Note
The City’s net cost for processing recyclables in FY19 was $207,974. Although commodity prices have been very difficult to predict in the current recyclables market, it is anticipated that processing costs will remain approximately the same for FY20 until the market for recycling commodities improves.
Funding is allocated and identified in the Solid Waste Fund through the monthly residential refuse rate.
Recommendation
The City Commission retroactively authorize the execution of the First Amendment to the Interlocal Agreement between Alachua County and the City of Gainesville for Recycling Processing through September 30, 2020 subject to approval by the City Attorney as to form and legality.