REPORT TO THE CITY COUNCIL
October 30, 2014
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
BY: JERRY L. SCHUBER SR., Assistant Director
Department of Public Utilities, Solid Waste Management Division
SUBJECT
Title
Authorize the City Manager to enter into an Agreement with the County of Fresno for landfill disposal services at Fresno County's American Avenue Landfill
Body
RECOMMENDATION
Staff recommends that Council authorize the City Manager or designee to enter into a twenty year (20) agreement with the County of Fresno for landfill disposal services at the Fresno County's American Landfill, subject to City Attorney review and approval of the terms and conditions.
EXECUTIVE SUMMARY
In 1992, the City of Fresno entered into a contract with the County of Fresno for landfill disposal services at Fresno County's American Avenue Landfill. This contract expired June 30, 2014. Since this time, the City has continued to utilize the American Avenue Landfill through a month to month agreement that was approved by Council on September 25, 2014.
Negotiations between the City of Fresno and Fresno County, which began in March of this year, have resulted in the parties reaching a tentative agreement in which the City's tipping fees will be based on the number of tons of solid waste material that are delivered by the City of Fresno to the American Avenue Landfill.
The new tiered rate will result in the City's tipping charges being reduced from $23 per ton to 18.50 per ton, based on the amount of solid waste material currently being delivered. The annualized savings from the new rate is approximately $950,000. The lower rate also applies to the City's Commercial Solid Waste providers. In addition to a lower tipping fee, the new tiered-rated schedule also includes a fixed, annual cost escalator of 2.5% per year, with the first increase not occurring until July 1, 2016. The new agreement also includes...
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