Bill 260793

Title Authorizing the Sanitation Commissioner and Procurement Commissioner, on behalf of the City of Philadelphia, to enter into agreements with several vendors to process and market recyclable materials, under certain terms and conditions. Body WHEREAS, the Sanitation Department requires the support of one or more contractors to process and market recyclable materials; and WHEREAS, the Sanitation Department, acting with the Procurement Department, developed a comprehensive request for proposals to secure the required recycling processing and marketing contracts; and WHEREAS, the responses to these requests have been evaluated by the City to select those vendors of recycling processing and marketing which are best qualified in terms of cost, environmental impact, neighborhood impact, and operational efficiency; and WHEREAS, Waste Management of Pennsylvania, Inc., Mazza Recycling Services, LTD., and BFI Waste Services of Pennsylvania, LLC have been selected through a competitive process to provide recycling processing and marketing services for materials collected by the City and other authorized governmental agencies; now, therefore, THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS: SECTION 1. The Sanitation Commissioner and the Procurement Commissioner, on behalf of the City of Philadelphia, are hereby authorized to enter into separate agreements for recycling processing and marketing services with Waste Management of Pennsylvania, Inc., Mazza Recycling Services, LTD., and BFI Waste Services of Pennsylvania, LLC, pursuant to terms substantially set forth in Exhibit A. SECTION 2. The City Solicitor is hereby authorized to draft, negotiate, review and approve all documents necessary to effectuate this Ordinance, and to impose such terms and conditions on them as the City Solicitor may deem necessary and proper to protect the interests of the City and to carry out the purpose of this Ordinance. SECTION 3. This ordinance shall take effect immediately. Exhibit A Terms of Proposed Multiyear Agreements to Process and Market Recyclable Materials 1. Vendors: Mazza Recycling Services, Ltd.; Republic Services of Pennsylvania, LLC; and Waste Management of Pennsylvania, Inc. 2. Commencement Date: January 1, 2027 3. Term: The initial term of each contract will be for four (4) years. The City may exercise the option to extend the term of any contract by up to three (3) additional one-year terms. 4. Services: Processing and marketing of City collected recyclable materials. Delivery and processing of the recyclable material will take place at the following facilities Mazza Recycling 5109 Bleigh Ave. Philadelphia, PA 19136 Republic Services 220 Saulin Boulevard King of Prussia, PA 19406 Waste Management 5109 Bleigh Ave. Philadelphia, PA 19136 5. Fees and Revenue Payments: Each contract specifies per-ton base operating fees and fees for disposing of residue materials, for 2027 through 2033. The City will receive 70% of the total material blended value of the recyclable materials. The blended value is calculated by multiplying the percentage of each recyclable material by the current adjusted value of each material, based on market indices. Any revenue generated for the City is deducted from the fees due. 6. Economic Opportunities: In accordance with the EO Plan accompanying the RFP for Small Business Participation. Fees City Market Share - 70% Mazza Recycling Fiscal Year 2027 2028 2029 2030 2031 2032 2033 Base Operating Fee 120.00 124.20 128.55 133.05 137.70 142.52 147.51 Contamination Fee 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Republic Services Fiscal Year 2027 2028 2029 2030 2031 2032 2033 Base Operating Fee 103.00 105.47 108.00 110.60 113.25 115.97 118.75 Contamination Fee 83.31 85.31 87.35 89.45 91.60 93.80 96.50 Waste Management Fiscal Year 2027 2028 2029 2030 2031 2032 2033 Base Operating Fee 121.53 125.18 128.93 132.8 136.78 140.89 145.11 Contamination Fee 130.66 130.66 130.66 130.66 130.66 130.66 130.66 End