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File #: 23489    Version: 1 Name: Authorizing the Mayor and City Clerk to enter into a contract with Pellitteri Waste Sysrtems for the processing and marketing of the recyclables collected by the City of Madison
Type: Resolution Status: Passed
File created: 7/29/2011 In control: BOARD OF ESTIMATES (ended 4/2017)
On agenda: 9/6/2011 Final action: 9/6/2011
Enactment date: 9/7/2011 Enactment #: RES-11-00756
Title: Authorizing the Mayor and City Clerk to enter into a contract with Pellitteri Waste Systems of Madison to process and market the recyclables collected by the City of Madison.
Sponsors: Paul R. Soglin, Steve King, Jill Johnson
Attachments: 1. Pellitteri Recommendation Letters.pdf
Fiscal Note
The proposed agreement is expected to save $72,300 in annual processing fees for recyclables, an annual expenditures reduction of approximately 7%.  Savings for 2012, the first partial year of operation, are projected at $59,271.  Initial year savings are lower that annual savings as a transfer fee will be paid to haul the materials to another location during the first quarter of 2012.
 
In addition to the processing fee savings, it is anticipated that the contractor will enhance the tax base by construction of a new facility, and increase local employment by fourteen or more workers.
 
Title
Authorizing the Mayor and City Clerk to enter into a contract with Pellitteri Waste Systems of Madison to process and market the recyclables collected by the City of Madison.
 
Body
Whereas, the City of Madison began collecting newspapers for recycling in 1968 making it the first city in the nation to have a curbside recycling program and,
 
Whereas, the City of Madison's recycling program currently diverts 66% of our community's trash from the landfill and,
 
Whereas, the City of Madison's curbside recycling program collects almost 20,000 tons of paper and containers each year from city residents, and
 
Whereas, that 20,000 tons of material requires sorting, processing and shipping to markets, and
 
Whereas, the City of Madison's current contract for the processing of recyclables expires December 31, 2011, and
 
Whereas, the City of Madison solicited proposals from companies interested in processing its recyclables and received three responses, and
 
Whereas, the City of Madison conducted and extensive analysis of the proposals and held negotiations with the final two vendors, and
 
Whereas, Pellitteri Waste Systems of Madison's proposal provided for the construction of a new processing facility in the City of Madison, and
 
Whereas, Pellitteri Waste Systems will employ 14-16 new workers to operate the facility and up to 50 new jobs in the future, and many others during the construction of the facility, and
 
Whereas, the Pellitteri Waste System's facility will enhance the City's property tax base and generate as much as $50,000 in annual property tax payments to the City, and
 
Whereas Pellitteri Waste Systems will work with City staff to develop an education facility at the new facility for tours by school groups and citizens, and
 
Whereas, The Pellitteri Waste Systems proposal will save the City $72,300 per year compared with the other finalist,
 
NOW THEREFORE BE IT RESOLVED that the Mayor and the City Clerk are authorized to enter into a contract with Pellitteri Waste Systems for the processing and marketing of the recyclables collected by the City and that the contract shall be for five years with two mutual options for two year extensions.