Title
Resolution Authorizing Amendment to Contract #2012-5340 Processing and Marketing of Recovered Recyclables with ReCommunity Recycling
Body
Department: Field Operations
Council District: All
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Dale Wyrick, 373-2783
Contact 2 and Phone: Chris Marriott, 373-7612
PURPOSE:
The Field Operations Department requests City Council approval to amend the contract for the processing and marketing of recovered recyclables with ReCommunity. The proposed amendment is to be effective on January 1, 2016. City staff and ReCommunity presented this proposed amendment to the City Council Infrastructure Committee on November 12, 2015.
BACKGROUND:
At its October 16, 2012 meeting, City Council authorized the City Manager to enter into a contract with ReCommunity for the processing and marketing of recovered recyclables. The contract was to have an initial 5 year term with the option of 1 additional five-year extension. In January of 2013, the City entered into a contract with ReCommunity to provide these services, and in return the City would receive $30 per ton in revenue, or about $800,000 annually.
Due to a dramatic downturn in the value of single-stream recyclables, ReCommunity has asked the city to renegotiate its contract which requires ReCommunity to pay the city $30 per ton for recyclables through April 1, 2018. Under the terms of the current Greensboro contract, ReCommunity is losing in excess of $1.5 million annually.
City staff and ReCommunity have worked the past several months to find a mutually agreeable solution that will provide ReCommunity some financial relief in the depressed recycling commodity market while also providing the City of Greensboro with some revenue for the recyclables delivered to ReCommunity's facility. City staff and ReCommunity presented this proposed amendment to the City Council Infrastructure Committee on November 12, 2015.
Both parties...
Click here for full text