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<br />~ FOR CITY COUNCIL AGEN~ITEM <br /> <br /> <br />Agenda Date Requested: De~. 1922 <br /> <br />Requested By: S. Gillett. Department: Public Works <br />I <br />Report Resolution XXXX Ordinance <br /> <br />Exhibits: Ordinance No. J~7h <br />Proposed Contract to Sell Recyclable Materials <br /> <br /> <br />SUMMARY & RECOMMENDATION <br /> <br />The City of La Porte has operated a successful drop-off recycling center <br />for approximately 18 months. Marketability of recyclables is the most <br />important element to a successful program. Due to the extremely volatile <br />nature of recyclable markets, the City constantly shifts its sale of <br />materials to achieve the best possible price. <br /> <br />Old Newspapers, the largest component, by volume, of the City's recycling <br />Program, has averaged less than $10.00 per ton. The current spot market is <br />$10.00 per ton. With the completion of Champion International's deinking <br />facility in Houston, a new subsidiary, Champion Recycling, has been created <br />to purchase and process feed material to recycle old newspaper and old <br />magazines. <br /> <br />Champion Recycling recently agreed to purchase old newspapers and magazines <br />from the City of Houston. The City of La Porte has kept abreast of these <br />developments, and has negotiated a three (3) year contract to sell these <br />materials to Champion. Champion Recycling has agreed to pay $20.00 per ton <br />for old newspaper and $12.50 per ton for old magazines. This will double <br />the amount received for old newspapers, and create a new opportunity to <br />recycle old magazines. <br /> <br />Current purchasing laws do not address the issue of sale of recyclable <br />materials. The City contacted the five (5) known buyers in the Houston <br />area. None were willing to enter any kind of contract to purchase these <br />materials. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Action Required by Council: Approve Ordinance No. If1~ approving and <br />authorizing a contract between the City of La Porte and Champion Recycling <br />Corporation for the sale of old newspapers and old magazines. <br /> <br /> <br />Availability of Funds: <br /> <br />General Fund Water/Wastewater <br />Capital Improvement General Revenue Sharing <br />Other <br /> <br />Account Number: Funds Available: YES NO <br /> <br />Agoroved for Citv CouUQjl Aaenda <br /> <br />Q~ T- ~ \~_O'4C\'1.. <br />Robert T. Herrera DATE <br />City Manager <br />