Item:
Title
Amendment to the Interlocal Agreement between the City of Durham and Durham County for the City to Provide Recycling Processing and Haul Services to Durham County for Target Recycling Materials.
Body
Date of BOCC Meeting: September 23, 2019
Request for Board Action:
Agenda Text
The Board is requested to authorize the County Manager to amend the interlocal agreement with the City of Durham in the amount of $98,850.00, for a total interlocal agreement amount of $175,000 for the City to provide recycling processing and haul services to Durham County for target recycling materials.
The County entered into this interlocal agreement with the City in 2016. The original agreement allowed the County to bring recyclables from our curbside recycling program to the City's Transfer station. The City then arranged for the transportation of the County's recyclables to their processor, Sonoco Recycling in Raleigh. The City charged the County a fixed tipping fee that allowed the City to recover the costs associated with the loading and transporting of the recyclables. The fee increases each year based on the CPI. The fixed fee for FY19-20 is $22.40 per ton.
Prior to 2018, the City's contract with Sonoco provided the City with revenue. Due to shifts in the global markets, the City is now charged a variable fee by Sonoco for each ton of recyclables, based on the monthly market rates. This amendment allows the City to pass the variable rate onto the County for the material brought by the County from the curbside program and the convenience sites. The County will now pay a combined rate for each ton of the fixed rate of $22.40 plus the variable rate charged by Sonoco. In July 2019, the variable rate was $54.33 per ton, creating a total tipping fee of $76.73 per ton. The Durham City Council approved the amendment to the ILA on August 19, 2019.
In FY19, the amount budgeted for this interlocal agreement was $51,150. Based on the price increase and the...
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