Broken Arrow Municipal Authority
Meeting of: 09-17-2024
Title:
title
Approval of the Increase to Tulsa Transfer and Recycling (TRT) Processing Fee of $80.96 per ton plus Sustainable Environmental Adjustment (SEA) Fee
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Background:
On September 15, 2020, BAMA entered into a contract with Tulsa Transfer and recycling (TRT) for curbside recycling processing services. The agreement provided for the processing of recyclables and expires June 30, 2030, with a potential option to renew the Agreement for up to four (4) additional years, exercised as two (2) renewals periods, each consisting of two (2) years.
In April 2021, the Tulsa Recycle & Transfer (TRT) MRF experienced a fire caused by a lithium-ion battery improperly put in a recycling bin and then delivered to the MRF. This is a common occurrence across the country: industry sources estimate that on average there is a battery-caused fire at a MRF every single day. In the case of TRT, the fire was especially devastating, and the facility was offline for nearly a year. During that time, customers across the region were encouraged to continue the habit of source separating their recyclables but out of necessity, the material was being bypassed from curbside collection or disposed of as trash. Rate increases to date for processing have not been requested by TRT.
Under this agreement, BAMA will pay TRT $80.96 for every ton of Program Recyclable Materials, including rejects delivered by BAMA to the Recycling Facility. This covers the Recycling Contractor’s processing costs. In addition to the processing cost, a Sustainable/Environmental Adjustment (SEA) fee is added. The SEA fee may vary monthly. BAMA will receive eighty percent (80%) of the revenue from the Program Recyclables which will be applied to the processing fee. The contract provides for an annual increase of 3% to the processing fee. With this increase the processing fee for recycling will increase from $78.60 to $80.96.
Staff recommends approval of the contractual increase.
Cost for this service is funded from the Solid Waste and Recycling department budget and incorporated into the rate model.
Cost: Recycling - $11,800 annual increase (Based on a projected 5,000 tons)
Funding Source: Solid Waste and Recycling Operational Accounts
Requested By: Jerry L. Schuber Sr., Director
Approved By: City Manager’s Office
Attachments: Annual rate adjustment letter from TRT dated September 9, 2024
Recommendation:
recommend
Approve the processing fee rate increase to $80.96 for recycling processing plus Sustainable Environmental Adjustment (SEA) Fee.
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