R2011-01 AUTHORIZING CONTRACT - SINGLE STREAM RECYCLING PROGRAM

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> DEVELOPMENT SERVICES MEMORANDUM No. 11-06 January 12,2011 TO: Honorable Mayor Michael T. McElroy and City Council Members FROM: Ryan P. McCrady, City Manager Greg C. Crowe,Assistant City Manager SUBJECT: Five year contract with Midwest Fiber, Inc, of Decatur for processing of single stream recyclables and acquisition and distribution of recycling carts SUMMARY RECOMMENDATION: Staff recommends approval of the Five (5) year contract with Midwest Fiber, Inc. of Decatur for processing of single stream recyclables and the acquisition and distribution of recycling carts for Decatur residents. The carts will be available at no additional charge to residents. BACKGROUND: On December 20, 2010, the City Council approved amendments to City Code Chapters 56 and 56.1 to allow for residential curbside collection of single stream recyclables starting April 1, 2011 for all residential properties with 6 units or less in Decatur. The recyclable materials will be collected by the licensed residential haulers who will then drop off the materials at a Recycling Transfer Facility (RTF) of Midwest Fiber located in Decatur far five years per the terms of this contract. Midwest Fiber will transfer the materials to their Single Stream Material Recovering Facility in Bloomington, IL for processing. Midwest Fiber shall remit $10/ton to the authorized Haulers for recyclable material delivered to the RTF from the City's recycling programs over the life of the contract. The Contract also requires Midwest Fiber to acquire recycling carts for any resident of Decatur who requests a cart for single stream recycling with the City reimbursing them for the cost of the carts. The all inclusive cart costs to the city cannot exceed $55.00 per cart through Fiscal year 2011/12. The recycling carts will be distributed to residents who request them during two phases and residents will also have the option of using their existing 18-gallon recycling bins. During the initial distribution phase the carts will be assembled and distributed to residents by the company that supplies the carts to Midwest Fiber. After the initial phase, the carts will be assembled and stored by Midwest Fiber and distributed to residents by the licensed haulers as they are requested. The carts will all be Pepsi blue in color (nationally recognized standard color for recycling carts) with the City logo on the front or sides of the cart with a label on the cover listing acceptable recyclable materials. Unless the contract is extended at the end of five years, the City shall acquire all the remaining carts purchased by the Contractor for the City's Single Stream Recycling program at the end of the current contract term. The buy-back cost for each cart shall be equal to the initial purchase price by the Contractor plus $4.00 for the cost of stocking, warehouse space, assembly and handling. POTENTIAL OBJECTIONS: None. INPUT FROM OTHER SOURCES: Assistant Corporation Counsel has reviewed the five year contract with Midwest Fiber, Inc. of Decatur. STAFF REFERENCES: If Council members have questions they may contact Greg Crowe at 424-2727 or gcrowe@decaturil.gov.