Explanation
Background: This ordinance authorizes the Director of the Department of Public Utilities to enter into a Tenth Modification of the Lease and Transfer Agreement between the City and the Solid Waste Authority of Central Ohio ("SWACO"), dated April 1, 1993, (together with the First through the Ninth Modifications to that Agreement, the "Lease Agreement") for the purpose of accommodating SWACO's proposal to increase revenue to meet its operational obligations and apply such funding increases throughout the district. SWACO proposes to generate the increased revenue by increasing the $7 per ton fee for all waste disposed of at its landfill or waste generated within the district and disposed of at another authorized landfill, rather than increase the tipping fee for disposal at its landfill. The former benefits the City by imposing the increase on a broader class of waste generators thereby keeping the increase lower than it would otherwise be. However, this type of increase requires modification of the Lease Agreement so that any increase above $7 per ton to the City is paid to SWACO rather be credited against the amended schedule of Lease payments as is currently required.
Fiscal Impact: The modification will change the manner in which such funding increases are accounted for by the City and will require an annual payment by the City to SWACO, but only as to the amount of the increase. The increased amounts will not be credited to SWACO's amended schedule of Lease payments which it owes to the City, as is required by the other provisions of the Lease Agreement, but will be retained by SWACO to be utilized for its operational needs.
Title
To authorize the Director of Public Utilities to enter into a Tenth Modification of the Lease and Transfer Agreement by and between the Solid Waste Authority of Central Ohio and the city of Columbus.
Body
WHEREAS, the City and the Solid Waste Authority of Central Ohio ("SWACO") entered into a Lease and Transfer Agreement dated April 1, 1993 (together with the First through the Ninth Modifications to that Lease and Transfer Agreement, the "Lease Agreement") to, among other things, transfer possession of the City's Solid Waste Reduction Facility ("Facility") to SWACO as Lessee of the Facility and to require that SWACO make lease payments to the City; and
WHEREAS, SWACO collects a $7.00 per ton fee with respect to all waste disposed of at its landfill, including that from the City, and all waste generated within the district and disposed of at another authorized landfill, which fees are referred to by the parties in the Lease Agreement as "New Revenue," and
WHEREAS, SWACO deems it necessary and advisable to increase the New Revenue to provide for the continuation of its operations and proposes to facilitate the payment there of by the City and to restate the City's obligations with respect to such increased revenue; and
WHEREAS, the City and SWACO now desire to enter into a Tenth Modification of the Lease Agreement to account for the payment by the City and the expenditure of such revenue increase by SWACO; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Public Utilities is hereby authorized to enter into and execute the Tenth Modification to the Lease Agreement between the City and the Solid Waste Authority of Central Ohio.
Section 2. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.