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Council approves final extension to City of Phoenix recycling processing agreement as market volatility reduces revenue
Summary
Avondale approved the fourth and final amendment to its recycling processing agreement with the City of Phoenix; staff reported volatile commodity markets that shifted processing costs from net revenue to costs per ton and said the city will evaluate options before the agreement ends.
The Avondale City Council on July 7 approved the fourth and final amendment to the city's recycling processing agreement with the City of Phoenix, which processes Avondale’s recyclable materials at Phoenix’s material recovery facility.
Harold (city staff) told council the Phoenix facility charges a per‑ton processing fee and provides a quarterly blended rate reflecting market value for collected materials. The per‑ton economics have been volatile: in fiscal year 2022 Avondale received approximately $8.42 per ton in net revenue from recyclables; by fiscal year 2023 the city paid about $30.85 per ton, and in fiscal year 2024 the average was about $58.38 per ton. In fiscal year 2025 the average processing cost fell to about $37.23 per ton. Harold said landfill disposal for fiscal year 2025 averaged about $35.25 per ton and first‑quarter fiscal year 2026 averages are projected near $33 per ton.
Staff reported Avondale recycled about 5,700 tons in fiscal year 2025 versus roughly 228,550 tons of trash, a diversion rate of about 20 percent. The city’s recycling drop‑off center (opened August of last year) has collected just shy of 20 tons since opening and monthly tonnage has increased; the center required more frequent servicing as volume rose.
Harold said staff will continue monitoring the volatile recycling market and review options for processing materials in preparation for fiscal year 2027, when the current agreement with Phoenix ends with this fourth extension. Council Member White asked whether targeting higher‑value materials (cardboard, aluminum) would change the blended rate; staff said Phoenix provides a blended rate by quarter and the city’s contract favors co‑collection rather than targeting individual commodities.
A motion from Council Member White, seconded by Council Member Solorio, carried to approve the consent‑calendar item.
