R2021-92 Resolution Authorizing the City Manager and Economic and Community Development Director to Negotiate Terms and Execute an Agreement for Cleanup and Debris Removal Activities in Johns Hilll with Shemilah Outreach Center

Home Browse Search

City Manager DATE: 5/17/2021 MEMO: 2021-17 TO: Honorable Mayor Julie Moore Wolfe &City Council Members FROM: Scot Wrighton, City Manager Jon Kindseth,Deputy City Manager SUBJECT: Resolution Authorizing a Contract between the City of Decatur&Midwest Fiber, Inc. of Decatur for Processing Single Stream Recyclables. SUMMARY RECOMMENDATION: Staff recommends this contract be approved as presented to continue our existing relationship with Midwest Fiber for another 4 years. BACKGROUND: The City of Decatur has had a similar contract with Midwest Fiber for the past decade. Midwest Fiber is the only local single stream recycling facility in our region of Central Illinois. Essentially what they do is receive all of the recyclables collected in Decatur and then truck them up to Normal where they have a separating processing facility. Once the materials are separated, most can be sold for reuse. Any revenue collected from the sale of the recyclables is deducted from the cost of that separation service. The value of recyclables changes monthly and the cost of recycling separation will change annually. The current value of recyclables is $76.51/ton and the current cost of processing is $112.71/ton,meaning there is an expense of $36.19 to the city. As recyclables value increases,we hope that there will come a time when the value is more than the cost of processing,and then the City would actually generate revenue from these materials. These factors are beyond the City of Decatur's control. The City and Midwest will jointly work to increase community education around recycling to lower our contamination rate which has been increasing. Although staff is bringing this agreement forward now,we are not prepared to make changes in the recycling fee to the individual rate payers,until we better understand the fees being paid to the garbage haulers. The fee paid to Midwest Fiber is actually the smallest portion($.29)of the current$2.15 per month charged to our residents. The City has the financial capacity in the recycling fund to delay the price adjustment a couple of months while we engage with the garbage haulers to understand the calculus behind their rates, and other changes that need to be made to the City Code concerning refuse collection arrangements. Any rate adjustment to the residents will require 30-day advance publication in the newspaper per City Code. Staff will further analyze the project expenses related to recycling and provide a recommendation to the Council for an adjustment later this summer. POTENTIAL OBJECTIONS: No none or anticipated objections to this renewal contract. STAFF REFERENCE: Should there be any questions, Scot Wrighton or Jon Kindseth can be contacted for answers or more information. Both will be present at the City Council meeting. BUDGET/TIME IMPLICATIONS: The budget impact of this change is hard to fully know due to the monthly changes in recyclables value,but it is anticipated to have a net annual expense increase in an amount of$76,000,or about$.25 per household per month. ATTACHMENTS: Description Type Resolution Authorizing Contract with Midwest Fiber Resolution.Letter Contract with Midwest Fiber Exhibit