Title
Resolution Authorizing Extension to Revenue Contract #2012-5340 Processing and Marketing of Recovered Recyclables with ReCommunity Holdings II, Inc., now Republic Services, Inc.
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 extend the contract for the processing and marketing of recovered recyclables with ReCommunity Holdings II, Inc, now Republic Services, Inc. Under the current agreement, the City of Greensboro receives $15 per ton for recyclables delivered to the Materials Recovery Facility located on Patton Avenue in Greensboro, NC.
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, the contract with ReCommunity was amended effective January 1, 2016. Under the terms of this amendment, the city reduced ReCommunity's payment to the city from $30 per ton to $15 per ton through April 1, 2018. The City also has sole option to extend the contract term through June 30, 2020 in the event the recycling markets remain low, which is the case now. This extension allows the City to remain whole in terms of the original contract revenue and provides protection in a down market.
In October of 2017, Republic Services, Inc. acquired ReCommunity Holdings, II. That acquisition involved 26 recycling centers in 14 states, including the facility in Greensb...
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