ARR Recycling Processing Contracts - ZWAC Presentation Update Corrected — original pdf

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Recycling Processing Contracts *Update* ZWAC Presentation January 12, 2022 Services Provided •20-Year Master Agreement with Reset Periods •Receipt of City Collected Recyclables •Process, Sort, Bale, and Market Recyclables Reset • Agreements allow for periodic contract resets • Award Percent – percent of City recyclable material delivered to each vendor (subject to reset) • Evaluation Criteria for determining Award Percent • Vendor’s pricing proposal • Vendor’s performance after First Reset Date, measured in part by percentage of Recyclable Materials that Vendor sold to reputable recycling processors or otherwise diverted from disposal for reuse • Vendor’s “good-will, teamwork, community engagement, and recycling education efforts” • Additional relevant factors Timeline–2nd Reset Action per Contract Date Notify Vendors of Reset Period August 1, 2020 Vendors submit documentation to City including Community Engagement Efforts September 30, 2020 Vendors notify City of desire to change volume or add services November 1, 2020 Vendors submit pricing proposals to City March 22, 2021 City to establish Award Percent September 15, 2021 Contract Reset Date October 15, 2021 Goals and Council Direction • Allow both COA and vendor(s) • Strong communication and to live through a range of market conditions • Shared risk and reward collaboration • Clear expectations CM Alter Direction • Negotiate terms that allow for stronger proof and transparency that our recyclable materials are being recycled rather than placed in landfills. • Further the city’s zero waste goals and minimize the city’s carbon footprint. As new technologies become available, the City Manager is directed to explore all avenues to recycle most materials from the City of Austin. • Negotiate terms that provide the best value for Austin’s ratepayers. Contract Highlights Balcones Resources Texas Disposal Systems Column1 Award Percent Min. Monthly Tonnage (avg.) Revenue Share % Processing Fee per ton Revenue Share Formula Change 60% 2000 75% $98 Yes 40% 2000 20% $50 No Contract Highlights Balcones Resources Texas Disposal Systems Column1 Indices: Ave. to High-side Customer Education Fee Expanded Audit Terms Expanded Safety Inspection Strengthen Non- degradation clause Yes Yes Yes Yes Yes No No Yes Yes No Revenue Share Payment Calculation Revenue Share Payment Texas Disposal Systems Balcones Resources (Revenue Percent X Value of Recyclable Material) – Processing Fee Net Value of Recyclable Material = Gross Value of Recyclable Material – Processing Fee Then Revenue Share Payment = Net Value of Recyclable Material x Revenue Percent In the case that the Processing Fee exceeds the Gross Value of Recyclable Material, the City will incur the cost equaling the difference between the Processing Fee and the Gross Value of Recyclable Material Going Forward • Next Reset Date October 1, 2026 • Annual Steering Committee Meetings • Regular Operations Audits • Semi-annual Composition Studies Questions