
Scottsdale, Arizona, City Council has approved an agreement to send its recyclables to Phoenix facilities for processing, reports the Arizona Daily Independent, Oro Valley, Arizona. With the deal in place, Scottsdale will send its recyclables to Phoenix for the next year, after which four one-year renewal options are available to the municipalities.
The need for the deal came after the Salt River Pima-Maricopa Indian Community Material Recycling Facility (SRPMIC), Scottsdale’s primary recycling facility, suffered a fire Oct. 26, 2019. The damage put the facility out of commission for at least 18 to 24 months.
Prior to the fire, Scottsdale had delivered all its recyclables to the facility since its opening in 2001. In the interim, Scottsdale was sending its recyclables to a landfill at a cost of $27 per ton, leading to a negative variance in the solid waste budget.
With no alternative in place, the city’s solid waste department began searching for alternatives outside of the SRPMIC contract and concluded partnering with Phoenix was the best option.
Phoenix is home to two recycling facilities: North Gateway Material Recovery Facility and 27th Avenue Material Recovery Facility.
Scottsdale will now pay a $75 processing fee for each ton of recycled material delivered to Phoenix facilities under the new agreement, with the hope an average quarterly outbound blended rate (AQOBR) Phoenix receives from marketing the individual commodities will help offset costs.
Scottsdale city staff anticipate they will pay a net rate of $31.98 per ton. Phoenix city staff estimates Scottsdale will deliver up to 31,200 tons over the next year.
If the market rate for AQOBR increases, Scottsdale will then pay less per ton and vice versa. Furthermore, Phoenix city staff say Scottsdale doesn’t get any revenue; but, if market prices increase during the term of the agreement, the two cities would equally split additional revenue.
To deliver recyclables to Phoenix, Scottsdale will need to adjust its contract with SRPMIC, which requires the city to deliver at least half its recyclables to SRPMIC’s facility. The SRPMIC contract also requires contractors to haul recyclables to SRPMIC from Scottsdale transfer stations. The city plans to adjust the contract so transfer haulers will transport to the Phoenix facilities.
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