To approve an intergovernmental agreement with the City of Phoenix for Processing Recyclable Materials.

The City of Peoria’s Solid Waste Recycling program was implemented in 2007.  The City of Peoria has had an Intergovernmental Agreement with the City of Phoenix for processing recycled materials since the implementation of the recycling program.  The City also has an Intergovernmental Agreement with the City of Glendale and an agreement with Waste Management for the disposal of trash and recyclables. 

The original term of the Phoenix Agreement was for three (3) years with two (2) options to extend the Agreement for one (1) year each at the sole discretion of the City. The current Intergovernmental Agreement will expire on January 31, 2017 with no option year remaining.

Payment for Recycled Material

City of Phoenix will accept recycled materials at their North Gateway Material Recovery Facility and their 27^th Avenue Materials Recovery Facility.  The value of recycled materials is based on a percentage of the “Blended Rate.” The Blended Rate is the average sales price per ton for all material sorted and sold at the 27^th Avenue Material Recovery Facility during a calendar month.

The City of Peoria and City of Phoenix entered into the current agreement on or about February 1, 2012 to have Phoenix process Peoria’s recyclable materials at the North Gateway Materials Recovery Facility (MRF) located at 30205 North Black Canyon Highway. Additional agreements were made with Glendale on October 1, 2014 and Waste Management on May 18, 2016.  The agreement with Glendale will remain in effect until June 30, 2017.  The agreement with Waste Management will remain in effect until May 30, 2017.

A:  Council could act to approve the intergovernmental agreement with the City of Phoenix for Processing Recyclable Materials.

B:  Council could decline to approve the intergovernmental agreement with the City of Phoenix for Processing Recyclable Materials.

The proposed Agreement between the City of Peoria and City of Phoenix allows the City of Peoria to continue to use the Phoenix Materials Recycling Facilities.  This agreement allows Peoria to adapt Solid Waste routes to dispose of recyclable materials at the most convenient and cost effective location(s).  Due to declining commodity markets, and the new minimum wage impact to the vendor, the City of Peoria is anticipating a loss of approximately $80,000 in recycling revenue.

The Solid Waste Division continues to evaluate operational efficiencies and has been successful at reducing costs.  A significant factor in reducing costs is the diversion of recyclable materials to a materials recovery facility.  The City receives revenue for clean, recyclable material and avoids the cost of sending the material to a landfill.  The Residential Curbside Recycling program has consistently diverted an average of 24% of recyclable material from the waste stream since its inception.  Under this new agreement Peoria will benefit from the revenues consistent with the commodities market.  This success is attributed to the citizens of Peoria who participate in this program.