Agenda Item Title:
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Public Works Department presenting information on Resolution #22-37, which authorizes Administration to enter into a supplemental agreement regarding residential solid waste collection service agreement with Waste Management of Utah, Inc.
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Presenter:
Mike Gladbach, Pubic Works Director
Blake Leonelli, Waste Management, Services Manager
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Description/Background:
Waste Management is experiencing much higher operations costs due to higher than anticipated fuel, labor and equipment costs. The Nationwide-Water, Sewer, Trash CPI used for our annual fee adjustment, which we use by contract, is 3.7% this year and does not appear to accommodate these increases as it should. It was found that the Nationwide-All Items CPI, which is 8.3%, better reflects what has occurred in the market in this region as well as what Waste Management has experienced.
A one-time temporary use of the Nationwide-All Items CPI is requested for the period of September 1st, 2022 through June 30th, 2023. The temporary increase of 4.6% will be added to the fee adjustment for this period only, expiring on June 30th, 2023.
Fiscal Impact:
The estimated additional cost to the budget for the remainder of the year is $150,000. This cost can be absorbed by the current budget.
Further action to be taken:
Tonight is an informational report, but staff is requesting Council consideration and action at the December 20, 2022 Council Business Session.