Explanation
This legislation authorizes the Public Service Director to establish an encumbrance within the Special Income Tax Fund to pay 2008 waste disposal tipping fees for the Refuse Collection Division. This expense is necessary to safely and contractually dispose of the waste collected by the Division in the course of pursuing its mission by providing residential refuse collection services to over 327,000 households weekly.
The Finance Department has determined that $14,250,000.00 should be adequate for this purpose. This number is based on estimated waste stream of 351,250 tons in 2008. Actual tonnage is ultimately dependent on variables such as the weather and the actual number of households collected that cannot be specifically calculated at this time. If necessary, additional legislation will be submitted to increase this at a later date. Previous years' actual tipping fee expenditures totaled $11,057,297.07 (2005), $11,943,315.38 (2006), and $12,989,226.07 (2007). Tipping fee rates are determined by SWACO's established rate setting process.
Also, pursuant to the ninth (9th) modification to the Agreement between the City and SWACO, part of the tipping fees will help fund the expansion of the drop-off recycling program.
Formal competitive bidding requirements must be waived for SWACO because waste disposal services, other than those provided by SWACO, are available in the marketplace; however the City is bound by contract to tip household waste at SWACO facilities. The Division will seek bids for waste stream disposal services not provided by SWACO: tire disposal, Construction and Demolition (C&D) material disposal, and processing of recyclables.
This 2008 expense is budgeted within the Special Income Tax Fund.
Emergency action is requested to avoid delays of payment to SWACO that could result in the City incurring interest penalties as specified within the Agreement between the City and SWACO.
Title
To authorize the ...
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