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Date
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December 4, 2006
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Agenda
Item No. 36 Roll
Call No. 06- Communication No. 06-765 Submitted by:
William G. Stowe, Assistant City Manager/Public Works/Engineering |
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AGENDA HEADING:
Adjustment of Prices Paid to the City for
Recyclables by MidAmerica Recycling.
SYNOPSIS:
On November 18,
2002, by Roll Call No. 02-2710, the City Council authorized the City Manager to
negotiate and sign a contract with MidAmerica Recycling (Michael J. Barry, Vice
President, 2742 E. Market St., Des Moines, IA, 50317)
for the processing of Des Moines recyclables collected at the curb. The City’s agreement with MidAmerica
Recycling allowed for two three-year renewal options. MidAmerica desires to exercise the renewal option and City staff
concurs. Staff has negotiated new pricing that will result in an approximate
$4,500 increase in City revenues for FY07 based on a projected total tonnage of
6,750.
FISCAL IMPACT:
Amount: Estimated FY07 revenue to be in excess of
$300,000.
Funding
Source: 2006-2007 Operating Budget, Fund EN151, Org
PWK100101, Solid Waste Enterprise Fund, page 257.
ADDITIONAL INFORMATION:
On September 23,
2002, by Roll Call No. 02-2332, the City Council authorized the issuance of an
RFP for an exclusive recycler to receive, process, and market recyclable
materials collected at the curb by the Public Works Department. On November 18, 2002, by Roll call No.
02-2710, the City Council accepted an RFP submitted by MidAmerica Recycling,
and authorized the City Manager to negotiate and sign a contract. On December 17, 2002, the City Manager
approved a contract with MidAmerica Recycling. This action resulted in $150,364
in City revenues for recyclables in year one of the contract – the first time
the City ever received revenues for recyclables.
The terms of the
contract provide for the annual renegotiation of the prices paid to the City
for recyclables. The Public Works
Department has negotiated a decrease in processing fees as well as an increase
in the prices paid to the City for selected materials:
- The
newspaper and mixed-paper processing fee paid by the City will decrease
from $26.50/ton to $26/ton.
- The new
pricing will be based on official board markets (yellow sheet) at the high
end of the Chicago market.
- The price
paid to the City for steel will increase from $65/ton to $75/ton.
- The price
paid to the City for plastic will increase from $100/ton to $175/ton.
- The price
paid to the City for glass will remain at $40/ton.
In
addition, the floor prices paid to the City will remain the same:
- Newspaper: $30/ton.
- Mixed
paper: $10/ton.
- Steel: $20/ton.
- Plastics: $55/ton.
- Glass: $35/ton.
Based
on the projected tonnage for FY 2007, the City may expect to receive an
estimated additional $4,500 in revenue for its recyclables.
PREVIOUS COUNCIL ACTION(S):
Date: October 24, 2005
Roll Call Number: 05-2564
Action: Renewal Addendum and Amendment to contract
with Mid America Recycling, Inc. for negotiation of rates and term on recycling
processing services for the Public Works Department. (Council
Communication No. 05-583) Moved by Vlassis to adopt.
Motion Carried 7-0.
Date: November 18, 2002
Roll Call Number: 02-2710
Action:
Negotiation of a contract with Weyerhaeuser Company for the receipt,
processing and marketing of Des Moines recyclables. (Council
Communication No. 02-601). Moved by
Brooks to amend and
accept the RFP submitted by Mid-America Recycling and authorize the City
Manager to negotiate and sign a contract with Mid-America Recycling in
accordance with terms and conditions of the RFP. Motion Carried 6-0. Council
Member Coleman declares a conflict of interest and abstains from voting.
Date: September 23, 2002
Roll Call Number: 02-2332
Action:
Recyclables Processing. (Council
Communication No. 02-503). Moved
by Hensley to adopt. Motion Carried 7-0.
BOARD/COMMISSION ACTION(S): NONE
ANTICIPATED ACTIONS AND FUTURE COMMITMENTS: NONE