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Signed Contracts_Dittmer/DMASWA_Marketing Agreement Amendment 4 Copyright 2014 City of Dubuque Consent Items # 22. ITEM TITLE: Signed Contracts SUMMARY: Amendment#4 to the Recyclables Processing and Marketing Agreement between the Dubuque Metropolitan Area Solid Waste Agency(DMASWA), Dittmer Recycling and the City of Dubuque SUGGESTED DISPOSITION: Suggested Disposition: Receive and File ATTACHMENTS: Description Type DMASWA4th Amendment- Recyclables Marketing Supporting Documentation Dubuque Metropolitan Ann SolldWasfeAgency pariJJn y anvlronmenmllysound'sakrl waste solutions TO: Michael C. Van Milligen, City of Dubuque City Manager FROM: John Foster, Solid Waste Agency Administrator SUBJECT: Amendment#4 to the Rec clables Processing and Marketing arketing ArJreement DATE: December 3, 2015 INTRODUCTION The purposes of this memorandum are to provide information and request your endorsement of the attached Fourth Amendment to the City's and Agency's Recyclables Processing and Marketing Agreement with Dittmer Recycling. i1 N DISCUSSION Section 16.4- Periodic Meetings of the Agreement provides for representatives from Dittmer Recycling and the DMASWA to meet to "troubleshoot any problems, monitor commodity prices and revenue shares, monitor Contractor operating costs, modify seasonal percentages of incoming material by mutual consent of Agency Hauler and Contractor....". A complaint lodged ti earlier this year by Dittmer Recycling was that the composition of the materials delivered to its facility was not comparable to the composition represented in the agreement -Attachment A (attached). After discussions on this issue, Mr.. Scott Dittmer admitted to staff that Dittmer Recycling cannot quantify the material delivered, let alone residuals, from the City of Dubuque Curbside Program, i since it is mixed with all the other materials Dittmer Recycling accepts. Any facility data would reflect what is collected throughout the tri-state area. As a result, Agency Staff suggested a recycling sort be conducted to collect this information. Don Vogt and Anderson Sainci agreed a l sort would address the complaint and also provide valuable program data. � r The goals of the sort were to provide a snapshot of the materials being collected to address Dittmer Recycling's claim, provide a baseline sample point for the evaluation of the City's recycling cart pilot program, provide direction for program education/marketing, and collect data for future request for proposals and/or contract negotiations. Dittmer recycling was consulted on the sorting method and categories but it did riot provide any resources for the sort, Below is a table of the sort results as a percentage of the week's sample, the statistical +/- % margin of error from the sample size, and the existing contract material composition percentages. This data is from just one sample point in May 2015. As noted in the Agreement and acknowledged almost universally by solid waste managers, the composition of recyclables changes on a seasonal basis. Staff has scheduled a follow tip sort in the upcoming weeks to ! establish a second data set to incorporate seasonal changes to compare with the May sample. 925 Kerper Court I Dubuque, lA 52001-2405 1 Phone: 563-580-42501 www,dmaswa.org 3 ii I1 DubuqueMetropolitan Area Solid Waste Agency Dft eym solid moslesolut its lolls The current contract's terms are predicated on a sort conducted sometime in 2011. Staff was unable to find any documentation of that sort to repeat it for accuracy. Sample Sort Results Compared t©the Deviation Range and Composition By Category As Listed in Appendix A of the Processing and Marketing Agreement May 2015 Sample Lower Upper Contract Composition Bound Bound Composition Paper yg� n "N R N all Mixed Paper(office paper) 62.21% 59.10% 65.23% 50.50% jG OCC 19.02% 18.07% 19.98% 26.00% .1 3 gw ,yw V, " L 0 gu- Q fflliil- .. 44,mq M ,,- im 4� IFF HDPE #2 Color 2.29% 2.18% 2,41% 5.00% HDPE #2 Natural 2.29% 2.18% 2,41% 3.00% Old Tin Cans 2.97% 2.82% 3.12% 4.00% PET#1 3.97% 3.77% 4.17% 6.50% Plastics #3-7 (#3-5 Agreement) 2.31% 2.19% 2.42% 1.00% Used Beverage Containers 0.99% 1 .94% 1 1.03% 1.00% -W= V Z h J! -xz- The May sort confirmed that the composition of the materials delivered to Dittmer Recycling was significantly outside the contract amount for rigid materials and slightly outside for paper materials. The composition of the materials delivered to Diftmer for recycling affects how the revenue/cost share is computed. The overall value of the stream as a whole will be reduced because of the decrease quantities of HDPE and PET plastics. These plastics still retain some of the highest and most stable market values. The residuals were within the acceptable range from the sample. One point I would like to make on this case is that the drivers collecting the materials for the sort took everything that was in the bins. They mimicked the same process that would be in place for recycling carts. This number is higher than actual delivery composition because the City crews are instructed to remove Non- Acceptable Materials and leave them at the curb. This practice will not be feasible with an automated cart system. All parties (with Don Vogt and Anderson Sainci representing the City) agree on modifying the previously-stated composition of materials in Attachment A of the agreement through the attached amendment. Staff discussed this course of action with City of Dubuque Attorney Barry Lindahl and he affirmed that this action requires an amendment to the agreement. The Agency, 925 Kerper Court I Dubuque, IA 52001-2405 1 Phone: 563-589-42501 www.dmaswa.org Dubuque Metropolitan Area ,salidWasteAgenty proiirltngernrronrnen[:tlysotmd solid ascese3vfiairs the contract guarantor, previously committed to making any change resulting from the May 2015 sort retroactive to July 1, 2015. The results of the upcoming sort may farce the agreement to be amended again. However, this Agreement expires June 30, 2010 ,and staff is discussing future options, We will finalize these options and provide a recommendation to you before the end of the month. REQUESTED ACTION Staff requests your endorsement of the Fourth Amendment to the Recyclables Processing and Marketing Agreement with Dittmer Recycling. It has already been approved by the DMASWA Board of Directors. If agreeable, keep one copy for your records and return the other copy to me. Attachment H CC: Don Vogt, City of Dubuque Public Works Director Kevin Firnstahl, City of Dubuque City Clerk Anderson Sainci, City of Dubuque Resource Management Coordinator I l I � l 925 Kerper Court Dubuque, IA 52001-2405 1 Phone: 553-589-42501 www.dmaswa.org i V FOURTH AMENDMENT TO AGREEMENT FOR THE PROCESSING AND MARKETING OF RECYCLABLES BETWEEN AND AMONG DUBUQUE METROPOLITAN AREA SOLID WASTE AGENCY, DITTMER RECYCLING, INC. AND THE CITY OF DUBUQUE, IOWA This Fourth Amendment to the Agreement for the Processing and Marketing of Recyclables between and among Dubuque Metropolitan Area. Solid Waste Agency (Agency), Dittmer Recycling, Inca (Contractor) and the City of Dubuque, Iowa (City) is dated for reference purposes the 20th day of November, 2015. WHEREAS, Agency, Contractor and City entered into the Agreement for the j Processing and Marketing of Recyclables (the Agreement), dated for reference purposes the 20th day of June, 2011, which Agreement expires June 30, 2016; and, WHEREAS, Agency, Contractor and City now desire to amend the Agreement as provided herein effective as of July 1, 2015. II NOW, THEREFORE, IT IS AGREED BY AND AMONG AGENCY, CONTRACTOR AND CITY THAT THE AGREEMENT IS AMENDED AS FOLLOWS: J Section 1. Attachment A (2) is amended to read as follows: � (2) Agency, Contractor, and City agree .to the following apportionment of Acceptable Recyclable Materials by a percentage of marketable commodities and residuals for the calculation of the Revenue/Expenditure Share: a Paper- 81.23% • Special News, De-ink Quality (PS-8) 62.21% (chipboard and junk mail included) • Corrugated Containers (PS-11) 19.02% (b) Rigid Containers and Materials -14.83% (Metal Cans and Plastic Bottles) • Used Beverage Containers 1.00% • Tin Cans 2.97% (includes miscellaneous metal: copper, aluminum, steel, empty paint and aerosol cans, pots, and pans) • #1 PET 3.97% • #2HDPE - Natural 2.29% • #2HDPE — Colored 2.29% • #347 Plastic Containers 2.31% 111615bal 4 (c) Residual Materials - 3.94% (includes cartons, glass, films, hazardous wastes, and fines) Section 2. All other terms and conditions of the Agreement shall remain in full force and effect. DUBUQUE METROPOLITAN AREA DITTMER RE YCLING, INC. SOLID WASTE AGENCY i By: By: RiW. Jones Sc ittmer, President Agency Cha person By By: Mary Ann Specht Joe Rettenmeier, Vice President Agency Secretary—Attest CITY OF DUBUQUE OWA By: Michael C. Van Milligen City Manager �I 1 By: Ke6 Firnstahl City Clerk F:\USERS\tsteckle\Li ndahl\Agreements\DittmerP rocessi ng&Marketing Recycla bl es_4thAmendment_111615.doc kk II 2 s