DATE: November 11, 2014
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russ Truell, Assistant City Administrator/CFO
Becky Caldwell, Sanitation and Environmental Services Director
SUBJECT:
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Consideration of Interlocal Agreement Between Marshall County and the City of Franklin For the Processing of Recyclables (COF Contract #2014-0305)
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning changes to the processing of our blue bags collected from curbside in our residential recycling service.
Background
Williamson County requested bids for contractors to operate their county-owned recycling facility in September of 2014. The County bid documents included the requirement for the contractor to accept City blue bags (residential recycling), but did not limit the tip fee associated with accepting and processing blue bag recyclables. The County stated the chosen vendor would need to work directly with the City to solidify the arrangements for processing of blue bag recyclables. On October 13, 2014, the contract for operating the Williamson County recycling facility was awarded to P&H Properties.
In parallel with the County process, the City's Sanitation and Environmental Services (SES) team working with Purchasing staff sought quotes to handle the City's recycling directly. The County understood that the City would be exploring options in addition to the County contractor. Becky Caldwell, Director of SES, and City Administrator Eric Stuckey met with County Mayor Rogers Anderson and County Solid Waste Director Nancy Zion to discuss the process and mutually agreed to this approach.
In pursuing options for processing the City recyclables, SES Director Caldwell met with Morgan Thomas, Marshall County Solid Waste Director, to explore an intergovernmental agreement to accept Franklin's recyclables. Marshall County recently purchased a vacant manufacturing building and has developed the facility into an efficient, organized recycling processing operation. Marshall County is prepared to enter into a long-term inter-local agreement to accept the City of Franklin's recyclables with no tip fee charged to the City. Marshall County would keep any rebates from the sale of recyclables. The City will need to transport the blue bags to the Marshall County facility in Lewisburg, which is approximately 40 miles away. The City currently has sufficient equipment and staff to provide the transportation of the required one (1) or two (2) loads of recyclables per day.
P&H Properties, the company awarded the contract to operate the Williamson County recycling facility, is the only vendor that responded to the City's Request for Quotes to accept and process blue bags of recyclables. The tip fee quoted for the City recycling is $50/ton, with no rebates paid to the City.
The proposed agreement with Marshall County:
· Provides for the City delivering blue bags of recyclables to the Marshall County facility at no cost; Marshall County retains any revenues received from the sale of recyclables
· Marshall County acquires and maintains the resources to manage up to 275 tons of recyclables, per month, from the City of Franklin
· Initial term is a period of five (5) years, with two (2) additional three (3) year options for renewal - totaling eleven (11) years
· Termination is with or without cause, at the City's sole discretion, with a 90 calendar days' notice to Marshall County
Marshall County will consider the inter-local agreement with the City at their Solid Waste Board meeting, Tuesday, November 18, 2014, at 5:00 pm, at the Marshall County Recycling Facility. The Marshall County Commission will vote on the proposed inter-local agreement at the Marshall County Courthouse Annex during their November 24, 2014 meeting.
Financial Impact
The $50/ton tip fee, quoted by P&H Properties, would result in an annual cost of approximately $135,000; based on our average 225 tons per month of recyclables.
Transporting residential recyclables to the Marshall County facility will result in a cost of approximately $150 per truckload based on values recently used in our transition to the 4 10-hour day workday process. The estimated cost, in comparison, is approximately $50,000, annually. Additionally, the Marshall County facility can accommodate a tractor-trailer truckload of blue bag recyclables, with minor modifications to their existing operation. This alternative would allow the City to haul more volume in fewer trips, saving monies by reducing the number of trips, fuel and time spent in transporting the recyclables for processing.
Recommendation
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Approval of the inter-local agreement between the City of Franklin and Marshall County is recommended.