Explanation
This legislation authorizes the Public Service Director to establish an encumbrance within the Special Income Tax Fund to pay 2006 refuse tipping fees to the Solid Waste Authority of Central Ohio (SWACO) for the Refuse Collection Division. This expense is necessary to safely and contractually dispose of the refuse collected by the Division in the course of pursuing its mission by providing residential refuse collection services to over 325,000 households weekly.
The Finance Department has determined that $13,809,000.00 should be adequate for this purpose. This number is based on estimated refuse tonnage of 356,037 tons estimated to be taken to SWACO in 2006. Actual tonnage is susceptible to variables such as the weather and the number of households collected that cannot be absolutely predicted at this time. If necessary, additional legislation will be submitted to increase this amount later this year. Previous years' actual tipping fee expenditures totaled $10,787,906.67 (2001), $10,551,338.72 (2002), $10,916,155.71 (2003) and $10,816,454.46 (2004). Through November 2005, actual 2005 expenditures totaled $11,057,297.07. In 2005, tipping fees increased $4.75 per ton ($3.25 SWACO fee increase and $1.50 State of Ohio environmental fee). Effective January 1, 2006, SWACO raised tipping fees by $2.50 per ton to $45.25 per ton or $38.25 per ton after the $7.00 per ton debt retirement credit is applied.
Formal competitive bidding requirements must be waived because refuse disposal services other than those provided by SWACO are available in the marketplace, however the City is contractually obligated to tip at SWACO facilities. Tipping fee rates are determined by SWACO's established rate setting process.
This 2006 expense is budgeted within the Special Income Tax Fund.
Emergency action is requested to avoid payment delays to the Solid Waste Authority of Central Ohio (SWACO) that will result in the City incurring an interest penalty.
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