Title
RESOLUTION NO. R17-44
A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING AND DIRECTING THE ENTERING INTO OF AMENDMENT NO. 1 TO THE INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF PEORIA FOR LANDFILL DISPOSAL SERVICES.
Staff Contact: Jack Friedline, Director, Public Works
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Purpose and Recommended Action
Recommendation
This is a request for City Council to waive reading beyond the title and adopt a resolution authorizing the City Manager to enter into Amendment No. 1 to the Intergovernmental Agreement (IGA) with the City of Peoria, Contract No. C-9157, to adjust the tipping fees effective July 1, 2017 and to extend the IGA through June 30, 2020.
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Background
The City of Glendale has provided solid waste disposal services to the City of Peoria through IGAs since 2012. The agreement remains mutually beneficial to both parties, in that it secures tonnage with guaranteed annual revenue for the Glendale Municipal Landfill, and it provides Peoria with an alternate disposal location for greater flexibility and efficiencies for routing solid waste collection vehicles.
In February 2012, the city entered into an IGA with Peoria that expired in June 2014. A new IGA, Contract No. C-9157, was entered into on September 17, 2014, with an initial term effective through June 30, 2017, and included one, three-year renewal, allowing the IGA to be effective through June 30, 2020.
Analysis
In Fiscal Year (FY) 2016-17, the City of Peoria is estimated to deliver approximately 75,000 tons of refuse to the Glendale Municipal Landfill at tipping fee of $22.50 per ton. Amendment No. 1 will increase the tipping fee to $25.00 per ton for FY 2017-18 and FY 2018-19, and to $27.00 per ton for FY 2019-20. If Peoria tonnage remains consistent, the landfill would see an increase in revenues of $187,500 in the first year and $712,500 over the three-year term. The tipping fees agreed to are aligned with full cost recovery of Glendale’s operation and capital costs.
If this Amendment is not approved, Peoria has indicated that they will divert much of that city’s waste to another landfill.
Previous Related Council Action
On August 12, 2014, Council adopted a resolution authorizing the City Manager to enter into an IGA, Contract No. C-9157, with the City of Peoria for Landfill Disposal Services.
On February 28, 2012, Council adopted a resolution authorizing the City Manager to enter into an IGA with the City of Peoria for Solid Waste Disposal Services.
Community Benefit/Public Involvement
The waste received from the City of Peoria will result in increased revenue to the City of Glendale to cover the proportionate share of operations and capital costs needed to manage Peoria’s tonnage.
Budget and Financial Impacts
Gross increase in revenue derived for Peoria tonnage through this Amendment to the IGA is projected to be $187,500 in FY 2017-18. As Glendale is currently disposing of Peoria’s tonnage, there are no additional operating costs as a result of this Amendment.