Title
Interlocal Agreement Between Alachua County and the City for Recycling Processing (B)
This item is a request for the City Commission to approve an Interlocal Agreement with Alachua County for the processing of recyclables generated by the City’s Solid Waste Residential Curbside Collection program.
Explanation
In 2009 City and County working cooperatively determined that the processing of the community’s residential recycling would be best served by contracting directly with the processor and marketer of the recyclable materials rather than leaving that responsibility to the hauler.
A seven (7) year contract was negotiated 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 was at least partially offset by revenues paid to the City and County for the market value of the material that was resold by the processor. The amount of revenue paid to the City and County was calculated using a sliding scale of 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.
SP Recycling Corporation filed bankruptcy in 2014 and assigned their contract to Alachua County. This contract expires September 30, 2016.
Taking into account the current depressed commodities prices, and with an eye toward creating a processing agreement that will remain sustainable despite market fluctuations; the County is proposing abolishing the flat fee and revenue share and replacing it with a sliding scale tipping fee that becomes a revenue share at prices above $119.99/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 from the previous month.
Fiscal Note
The City’s net cost for processing recyclables for the past 20 months was $291,642. As...
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