Fiscal Note
The proposed resolution authorizes the Streets Division to enter into contract with Pellitteri Waste Systems for sorting, processing, and marketing recyclables collected by the Streets Division.
Pellitteri has been providing recycling services for the City since 2012 (authorized under Legistar 23489). In 2014, Legistar 34379 authorized an extension of the initial contract through 2021. In 2021 another five-year contract was authorized under Legistar 64004. This new contract would begin January 1, 2027, for an eight-year term, expiring December 31, 2034, and offers options for two three-year renewals.
The contract stipulates that the City pays Pellitteri a per ton tipping fee for processing the City’s recyclables. The fee is calculated annually and includes the following:
1. a Base Rate of $27.50 per ton, subject to a 3% annual increase during the life of the contract.
2. a Contamination Surcharge of $100 per ton based on the percentage of contaminated or not recyclable materials
3. a Market Flexibility Factor that will be used to adjust the base rate, based on the market value of recyclable commodities.
Title
Authorizing the City of Madison to Enter into a New Contract with Pellitteri Waste Systems for the Sorting, Processing, and Marketing of Recyclables Collected by the Streets Division
Body
WHEREAS, the City of Madison Streets Division began a curbside recycling program in 1968, making it the first such program in the nation, and;
WHEREAS, the City of Madison Streets Division collected 15,359.68 tons of mixed recyclables in 2024, and;
WHEREAS, the current contract for sorting and processing recyclables expires on December 31, 2026; and;
WHEREAS, Pellitteri Waste Systems has provided recycling processing services for the City of Madison since 2012, and;
WHEREAS, Pellitteri Waste System continues to be a valued partner in helping Madisonians recycle more and recycle right by investing in new sorting equipment, including state-of-the-art robotics, and educational videos, and;
WHEREAS, Pellitteri Waste Systems, following a request for proposals process conducted in February 2025 through March 2025, was selected as the vendor for the next contract to sort, process, and market the recyclables collected by the City of Madison Streets Division;
NOW THEREFORE BE IT RESOLVED that the Mayor and the City Clerk are authorized to enter into a new contract with Pellitteri Waste Systems for the sorting, processing, and marketing of recyclables collected by the City of Madison Streets Division and that the contract shall be for eight years with the possibility of two separate three-year extensions.