Consideration and Approval of Contract:  Approval of an Intergovernmental Agreement (IGA) between the City of Flagstaff and the City of Winslow for the use of the Materials Recovery Facility (MRF) for recycling collection services.

On December 14, 2010, The City of Flagstaff and the City of Winslow entered into an agreement titled "2010 Winslow Agreement," through which the City of Winslow agreed to deliver and deposit all of the recyclables collected by the City of Winslow to the Materials Recovery Facility (MRF), with the City of Flagstaff agreeing to allow Winslow to use the MRF for delivery of recyclable materials.  While the original agreement, and the renewal periods for this agreement, have expired, this Intergovernmental Agreement between the City of Flagstaff and the City of Winslow renewals this relationship and partnership through the proposed IGA between the two City entities. 

This Intergovernmental Agreement has historically been beneficial to the City of Winslow in providing a viable location for the delivery of recyclable materials for their community.  This IGA benefits the City of Flagstaff in that the tonnage provided by the City of Winslow to the MRF facility increases the total recycling tonnage provided to Norton Environmental, offsetting the total recycling costs to the City of Flagstaff.

In 1997, the City of Flagstaff partnered with Norton Environmental Incorporated to process and market recyclables collected and delivered from within city limits.  Per the Lease, Construction, and Service Agreement, often referred to as the "Norton Contract", the City of Flagstaff is required to deliver a minimum amount of recyclable tonnage to Norton Environmental annually.  This required tonnage amount is referred to as the Annual Minimum Guarantee (AMG).  Currently, the AMG is 18,200 tons per year.  Therefore, the City of Flagstaff must deliver 18,200 tons to the MRF, or pay the shortfall at a rate of $32.25 per ton.  In addition, the city splits revenues from the marketing and sales of the material at a rate of 50% to Norton, 50% to Flagstaff.

IGAs such as the Winslow IGA count toward the city's AMG and help to offset the deficit owed at the end of the year.  In contract year 2015/2016, our IGA partners (Winslow, Coconino County, and Williams) delivered 232 tons to the MRF.  Of this amount, Winslow delivered 68 tons.  The proceeds from the Winslow IGA totaled $1,163.  The proceeds from the Winslow IGA are split 80/20, with Winslow receiving 80% and Flagstaff receiving 20%.  This revenue is used to help offset the annual cost to Norton Environmental.

COUNCIL GOALS:
3) Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics
7) Continue to implement the Flagstaff Regional Plan and focus efforts on specific plans

REGIONAL PLAN:
Policy PF.2.5.  Pursue cooperative and coordinated planning between government jurisdictions, agencies, educational institutions, non-profits, and private service providers.

The previous IGA with the City of Winslow was approved by Council in 2010.

1.)  Not accept the Intergovernmental Agreement with the City of Winslow.

Per the Norton Contract, the City of Flagstaff is required to deliver an annual minimum guaranteed (AMG) tonnage of recyclables, or pay the difference if we do not meet our quota.  As a way of boosting our tonnage numbers, Solid Waste enters into agreements with surrounding communities (Winslow, Coconino County, and Williams), allowing them use of the MRF.  When they deliver recyclables to the MRF, the tonnage counts toward our AMG.

This agreement is a continuation of an expired IGA that was executed on December 14, 2010.

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