Amended City Council Regular


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  ITEM 22.       
Meeting Date: 06/11/2019  
Submitted For: Michelle Woytenko
Department: Field Operations  

Subject

RESOLUTION NO. R19-64     
 
A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING AND DIRECTING THE ENTERING INTO OF AN INTERGOVERNMENTAL AGREEMENT FOR LANDFILL DISPOSAL SERVICES WITH THE CITY OF PEORIA.
Presented by: Michelle Woytenko, Director, Field Operations

Purpose and Recommended Action
This is a request for City Council to waive reading beyond the title and adopt a resolution authorizing the City Manager to enter into an Intergovernmental Agreement (IGA) with the City of Peoria for landfill disposal services; and to authorize the City Manager to renew the Agreement, at the City Manager’s discretion, for two additional terms of three years each.  The initial term of the Agreement is effective through June 30, 2024.
 
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.
 
Although the current IGA does not expire until June 30, 2020, with the provision of the Special Investment Credit, it was determined a new IGA was required.  

The rates for the presented IGA are: $27 per ton from July 1, 2019 through June 30, 2021; $29 per ton from July 1, 2021 through June 30, 2023; and $30 per ton from July 1, 2023 to June 30, 2024.  The rates represent an 11% increase over the five years of the IGA.  The initial rate was kept at the $27 per ton as in the exisiting IGA.
 
Analysis
The IGA includes a Special Investment Credit, in which the City of Peoria agrees to make a $2,200,000 payment to the Glendale Landfill sometime between July 1, 2019 and January 2, 2020 as an investment in future capacity.  This payment shall be recorded as a credit against future payments owed by Peoria to Glendale for tipping fees. The Special Investment Credit will apply to all inbound tons delivered by Peoria during the term of this Agreement until such special credit is exhausted or the term has ended. If at the end of the term any special credits remain, Peoria can request a new agreement or accept a refund from Glendale.
 
Upon council approval, the IGA will become effective on July 1, 2019 and will continue there after until June 30, 2024.  The agreement contains an option to extend the IGA for two additional terms of three years each, on the terms and conditions acceptable to both Glendale and Peoria. 
 
Previous Related Council Action

On June 27, 2017, Council adopted a resolution authorizing the City Manager to enter into Amendment No. 1, Contract No. C-9157-1, to the IGA with the City of Peoria for Landfill Disposal Services to adjust the tipping fees and to extend the term of the IGA through June 30, 2020.

 

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 Landfill Disposal Services.

Community Benefit/Public Involvement
The waste received from the City of Peoria will result in increased revenue to the City of Glendale and help maintain low cost solid waste disposal operations for Glendale residents.

Budget and Financial Impacts
Gross revenue from landfill tonnage received through this agreement is projected to be approximately $2,100,000 annually and increasing for fiscal years 2020 through 2023.  The revenue will be deposited into the Landfill Revenue Account 6110-449630.


 
Attachments
R19-64
Peoria IGA Disposal


    

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