City Council Special Meeting

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Meeting Date: 05/03/2023  
Co-Submitter: Evan Tyrrell From: Scott Overton, Public Works Director

Consideration and Approval: Termination of Lease, Construction and Service Agreement between City of Flagstaff and Norton Environmental, Inc.
Consideration and approval of the Termination of Lease, Construction and Service Agreement between City of Flagstaff and Norton Environmental, Inc. 
Executive Summary:

Norton and the City entered into a Lease, Construction and Service Agreement dated January 16, 1996, for Norton to design, construct and operate a materials recovery facility on property owned by the City and located at 1800 E. Butler Avenue, Flagstaff, Arizona, in order for the City to divert waste material from its landfill and to provide for the sorting, processing, transportation, and sale of certain recyclable waste.  Over the past 25 years, Norton has operated the facility processing collected recyclables for the City of Flagstaff.

On April 25, 2023, Norton closed the facility due to several factors, including staffing issues and a recent fire inside the Facility.  As a result, the City has entered into discussions and come to an agreement with Norton to terminate the lease and service agreement effective May 3, 2023. 

Financial Impact:
The cost to the city will be $75,000 to complete the transaction per the agreement.  This will be paid from the Solid Waste account numbers 211-06-166-0643-0-4290 and 211-06-166-0646-04290.  
Policy Impact:
The materials recovery facility was in transition as the existing agreement was to end September 30, 2023.  This action will allow the City to assume the site and operations control resulting in resuming curbside residential service and providing for the transfer of local collected recyclables.  
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
This action allows greater control for the City to incorporate improved waste stream goals and objectives moving forward. 
Has There Been Previous Council Decision on This:
Norton Agreement


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