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...
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