REPORT TO THE CITY COUNCIL
April 22, 2021
FROM: MICHAEL CARBAJAL, Director
Department of Public Utilities
BY: JERRY L. SCHUBER, SR., Assistant Director
Department of Public Utilities, Solid Waste Management Division
SUBJECT
Title
Actions related to residential recycling (Citywide):
1. Approve a Second Amendment to the Service Agreement with Mid-Valley Recycling, LLC., extending the term of the contract to June 30, 2036
2. Approve a Second Amendment to the Service Agreement with Cedar Avenue Recycling and Transfer Station, LP extending the term of the contract to June 30, 2036
Body
RECOMMENDATIONS
Staff recommends that the City Council approve a Second Amendment to the Service Agreement with Mid-Valley Recycling, LLC (Mid Valley); and approve a Second Amendment to the Service Agreement with Cedar Avenue Recycling and Transfer Station, LP (CARTS).
EXECUTIVE SUMMARY
On July 1, 2016, The City entered into the Service Agreements (Agreements) with Mid Valley and CARTS (together, Service Providers) for the processing of residential recycling material. Thereafter, on June 24, 2019, the City approved the First Amendments to the Agreements with Service Providers. The First Amendments revised the Service Providers' per-ton payment to the City to the proposed revised payments schedule reflecting the downturn of the recyclables market; and revised the recycled fiber market index to the PPI Recovered Paper - Export Market Index, Mixed Paper (54) - Official Board Markets Los Angeles commodity designation as the previously-named index was no longer operative.
The Department of Public Utilities recommends that the City Council approve Second Amendments to the Agreements to extend the term of the Agreements to June 30, 2036 with no change in the processing fee ceiling of $20 per ton or allowances for revenue sharing with the City depending on market conditions. The Amendments will ensure the City continues to meet landfill diversion requirements and provi...
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