Attachment

UTILITY COMMITTEE AGENDA April 11, 2005 - 5:30 P.M. - Council Chambers - City Hall - City of Dover Public comments are welcomed on any item and will be permitted at appropriate times. When possible, please notify the City Clerk (736-7008 or e-m ail at Jgreen@dover.de.us) should you wish to be recognized. AGENDA ADDITIONS/DELETIONS 1. Differential Disposal Fee Agreement - Delaware Solid Waste Authority 2. Adjournment by 6:00 P.M. /jg S:\ClerksOffice\Agendas&Minutes\Committee-Agendas\2005\04-11-2005-Utility.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

ACTION FORM PROCEEDING: Utility Committee AGENDA ITEM: 4/11/05 – 1 DEPARTMENT OF ORIGIN: Public Works DATE SUBMITTED: 1-25-05 PREPARED BY: Scott D. Koenig, P.E. , Director of Public Works SUBJECT: Differential Disposal Fee Agreement – Delaware Solid Waste Authority REFERENCE: N/A RELATED PROJECT: N/A APPROVALS: City Manager, Finance Director EXHIBITS: Exhibit A – Current Differential Disposal Fee Agreement; Exhibit B – Proposed Differential Disposal Fee Agreement EXPENDITURE REQUIRED: $1,287,350 EST. (FY-2006) AMOUNT BUDGETED: $ N/A FUNDING SOURCE (Dept./Page in CIP & Budget): Sanitation Division Budget; page 332 of the 2005 Annual Operating Budget (Line item # 110-1800-555.30-31); FY-2005 Line item budget is $1,133,000 TIMETABLE: Execute agreement prior to June 30, 2005 RECOMMENDED ACTION: Authorize the City Manager to execute the proposed Differential Disposal Fee Agreement with the Delaware Solid Waste Authority (DSWA) to provide municipal solid waste disposal services for the City of Dover from July 1, 2005 thru June 30, 2010 at the rates set forth in the agreement. BACKGROUND AND ANALYSIS On August 31, 2001, the City of Dover entered into a formal agreement known as the Differential Disposal Fee Agreement, with the Delaware Solid Waste Authority. This agreement set the disposal rate for municipal solid waste at $58.50 per ton and bulk or dry waste rate at $40.00 per ton. The current agreement expires on June 30, 2005. The bulk/dry waste rate of $40.00 per ton has yielded the following savings: FY-2002: 1,252.60 $ 23,271.77 (6 months) FY-2003: 3,290.38 $ 62,469.88 (12 months) FY-2004: 3,053.78 $ 55,755.34 (12 months) FY-2005 1,647.41 $ 30,477.09 (6 months) In addition, the annual rebate associated with the current agreement has yielded the following savings: FY-2002: $ 171,447.90 (Received on 08-14-2002) FY-2003: $ 159,555.70 (Received on 08-15-2003) FY-2004: $ 175,582.80 (Received on 08-13-2004) Estimated Impact: The proposed agreement covers the period from July 1, 2005 thru June 30, 2010 and sets the solid waste rate at $61.50 per ton and the bulk or dry waste rate at $42.00 per ton (maximum) for the duration of the agreement. Based on the current solid waste tonnage projections in the amount of 21,900 tons (19,500 tons of municipal solid waste and 2,400 tons of dry waste) for FY-2006 which begins July 1, 2005, the Department of Public Works anticipates an impact on the sanitation budget in the amount of $62,666.50 (increase). This impact is the result of the $3.00 per ton increase on municipal solid waste plus the $2.00 per ton increase on the dry waste component of the tonnage. The projected increase assumes that we will be receiving a 1% discount for early payment as has been traditionally applied to the City of Dover account. This increase in the expenses does not change the projection of the Delaware Solid Waste Authority rebate which will remain at $10.00 per ton for municipal solid waste. To the best of our knowledge, the proposed agreement does not address any of the proposed recycling legislation other than the continuance of the Recycle Delaware Program (drop off locations). In FY-2005, the user fee of $58.50 per ton includes Environmental Surcharges of $6.65/Ton for Recycling Programs and $0.19/Ton for the Household Hazardous Waste Collection Program.