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File #: ID 19-0322    Version: 1 Name:
Type: Resolution Status: Passed
File created: 4/25/2019 In control: City Council
On agenda: 5/21/2019 Final action: 5/21/2019
Title: Resolution Authorizing Amendment 9 to Contract #2012-5340 Processing and Marketing of Recovered Recyclables with Republic Services in the Amount of $11,250,000
Attachments: 1. Recycling Contract Amendment City Council - Copy.pdf, 2. Republic Services-SOS.pdf, 3. 19-0322 RESOLUTION-AMENDMENT 9 TO RECYCLING CONTRACT.pdf
Title
Resolution Authorizing Amendment 9 to Contract #2012-5340 Processing and Marketing of Recovered Recyclables with Republic Services in the Amount of $11,250,000

Body
Department: Field Operations
Council District: All

Public Hearing: N/A
Advertising Date/By: N/A

Contact 1 and Phone: Dale Wyrick, 336-373-2783
Contact 2 and Phone: Chris Marriott, 336-373-7612

PURPOSE:
The Field Operations Department requests City Council approval to amend the contract for the processing and marketing of recovered recyclables with Republic Services. The proposed amendment is to be effective on July 1, 2019 and extend through June 30, 2025.

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 one 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. In October of 2017, Republic Services, Inc. acquired ReCommunity Holdings, II. That acquisition involved 26 recycling centers in 14 states, including the facility in Greensboro. In March of 2018, the City exercised its sole option to extend the contract term, now with Republic Services, through June 30, 2020.

In February of 2019, staff briefed City Council on the continued downturn in value of single-stream recyclables and requested an opportunity to renegotiate the current agreement with Republic Services in an effort to avoid significant and immediate processing fees effective ...

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