City of San Antonio - File #: 18-3694

• File #: 18-3694
• Type: Miscellaneous Item
• In control: City Council A Session
• On agenda: 6/21/2018
• Posting Language: Ordinance approving a Consumer Price Index tip fee adjustment to the contract for recycling processing with ReCommunity Recycling in the amount of 1.63%, and allows for future CPI tip fee adjustments to the ReCommunity contract be approved by the City Manager or her designee. [Roderick J. Sanchez, Assistant City Manager; David W. McCary, Director, Solid Waste Management Department]

Date	Ver.	Action By	Action	Result
6/21/2018	1	City Council A Session	adopted	Pass

DEPARTMENT: Solid Waste Management Department


DEPARTMENT HEAD: David W. McCary


COUNCIL DISTRICTS IMPACTED: City-wide


SUBJECT: CPI Adjustment to Tip Fee for Recycling Processing Contract



SUMMARY:

The City of San Antonio currently has a contract with ReCommunity Recycling ("ReCommunity") to provide recycling services to the city at a rate of $34.98 per ton, plus an additional $17.50 per ton for transfer station costs when applicable (together the "tip fee"). The contract allows ReCommunity to request an increase in this fee every August based on the current Consumer Price Index. Based on the current Consumer Price Index ReCommunity has requested an increase of 1.63% which, if approved, would increase the cost per ton to $35.55, plus an additional $17.79 for transfer station costs when applicable.


BACKGROUND INFORMATION:

The City of San Antonio entered into a contract with ReCommunity Recycling for recycling processing via Ordinance 2013-06-06-0399 on June 6, 2013. The approved contract allows for ReCommunity to request an annual CPI tip fee adjustment beginning on August 1, 2017 and every August 1 thereafter (terminating on July 31, 2024).


ISSUE:

ReCommunity has requested a tip fee adjustment this year in the amount of 1.63%, which is within allowable CPI limits. The Solid Waste Management Department (SWMD) agrees with this request. The current tip fee paid by SWMD is $34.98 per ton, plus an additional $17.50 per ton for transfer station costs when applicable. The new tip fee will be $35.55 per ton, plus an additional $17.79 for transfer station costs when applicable. As there are currently no transfer station costs applicable under the contract, the annual impact will be a total of $46,100.00 increase over fiscal year 2017. If approved, the new tip fee will become effective on August 1, 2018.

This ordinance will also authorize the City Manager or her designee to approve future CPI tip fee adjustments to the contract with ReCommun...