Broken Arrow Municipal Authority
Meeting of 3-20-2018
To: Chairman and Authority Members
From: General Services Department
Title:
title
Approval of the Covanta Tulsa Renewable Energy tipping fee rate of $11.22 per ton, an increase of $0.23 per ton, plus the applicable Oklahoma Department of Environmental Quality fee
End
Background:
On October 18, 2016, the Broken Arrow Municipal Authority entered into a contract with Covanta Tulsa Renewable Energy (Covanta) for disposal of the City’s residential solid waste. This agreement is in accordance with and subject to the provisions and pricing terms as contained in the agreement between the Tulsa Authority for Recovery of Energy (TARE) and Covanta as of May 17, 2012. On December 1, 2016, the Sanitation Division began transporting residential solid waste to Covanta.
The contract provides for annual tipping (dumping) fee cost increases based on the Consumer Price Index (CPI) for all Urban Consumers as the basis for the rate increase. The TARE Board approved the rate increase on February 28, 2017.
Currently, the tipping fee is $11.22 per ton plus the Oklahoma Department of Environmental Quality (ODEQ) fee of $1.25 per ton. Attached is the letter to Broken Arrow, from Covanta, in regards to the rate increase effective July 1, 2018. The new tipping fee will be $11.46 per ton, an increase of $ 0.24.
Cost: $0.24 per ton or approximately $9,600.00 (Based on a projected
40,000 tons of refuse to be collected in Fiscal Year 2019)
Prepared By: Lee Zirk, General Services Department
Reviewed By: Finance Department
Assistant City Manager, Administration
Legal Department
Approved By: Michael L. Spurgeon, City Manager
Attachments: Broken Arrow Annual Rate Adjustment Letter from Covanta, 3-2-18
City of Tulsa and Covanta Tulsa CPI Adjustment Spreadsheet
Recommendation:
Approve the Covanta Tulsa Renewable Energy tipping fee rate increase to $11.46 per ton plus the applicable ODEQ fee of $1.25 per ton.