ADMINISTRATION - Joe Huss. Finance Director
Title
EXTEND CONTRACT WITH WALTERS RECYCLING AND REFUSE, INC. FOR SOLID WASTE AND RECYCLING PROCESSING THROUGH JUNE 30, 2024
Background
In 2018, representatives from Walters Recycling and Refuse updated the City Council on a number of issues that are occurring in the solid waste and recycling field, including the collapse of recycling markets for material collected and processed in the US. With the changes in the recyclables markets forcing all haulers to pay a substantial commodity charge to offload collected recyclable materials, the Council approved an amendment to the contract in December 2018. The contract was amended pursuant to Section 4.6 of the current contract, wherein the event of a substantial market change in any of the Recyclable Material commodity prices allows either party to the contract to request to reopen negotiations for the amount per month charged for Recycling Collection services.
Considering the volatility of the current market, at the May 20, 2019 Workshop, Council discussed and considered extending the contract pursuant to terms of the contract under paragraph 2.1 which allows the City to exercise an option to extend the contract for a period of up to three years. Council consensus was to approve an extension at an upcoming Council meeting.
With approval of this amendment, the contract term will extend to June 30, 2024. It is the City’s intent to provide only one contract extension, thus a Request for Proposals will be prepared during the latter half of 2023. The fees will extend and increase at the same rate as in the current agreement and are displayed on the attached document.
Recommendation
By motion, adopt the following resolution to amend the contract with Walters.
Body
WHEREAS, substantial changes have occurred in the global recycling and local solid waste hauling markets; and
WHEREAS, these changes have resulted in considerable volatility in these markets resulting in substantial price adjustments; and
WHEREAS, the City finds it is both expedient and financially prudent to secure favorable pricing for the removal and disposal of solid waste and recyclables; and
WHEREAS, Walters Recycling and Refuse, Inc. has proven to be a reliable and responsible partner in this endeavor; and
WHEREAS, the City Council has reviewed the amended contract and is in favor of the proposed amendments and extension of the contract.
NOW, THEREFORE, BE IT RESOLVED, that the Blaine City Council authorizes the Mayor and City Manager to execute the amended contract as proposed.
PASSED by the City Council of the City of Blaine this 17th day of June, 2019.