Broken Arrow Municipal Authority
Meeting of: 07-16-2019
Title:
title
Approval of the Covanta Tulsa Renewable Energy tipping fee rate of $11.68 per ton, an increase of $0.22 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 rate increase for this year is 1.91%. Attached is a letter from Covanta and the CPI index data detailing the increase. The new rates become effective July 1, 2019 The TARE Board approved the rate increase on May 28, 2019.
Currently, the tipping fee is $11.46 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, 2019. The new tipping fee will be $11.68 per ton, an increase of $ 0.22.
Cost: $7,920 annual increase (Based on a projected 36,000 tons of refuse to
be collected and delivered to Covanta in Fiscal Year 2020
Funding Source: Sanitation Operational Account
Requested By: Lee Zirk, General Services Director
Approved By: City Manager Office
Attachments: Annual rate adjustment letter from Covanta dated June 14, 2019
Recommendation:
recommend
Approve the Covanta Tulsa Renewable Energy tipping fee rate increase to $11.46 per ton plus the applicable ODEQ fee of ...
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