Agenda Item Title:
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Public Works Department recommending the council adopt Resolution #22-37c, 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:
This item was originally presented to the Council during the December 13, 2022 City Council Work Session.
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:
The Council may choose to take no action (Taking no action would result in no change to the current contract).
The Council may make a motion to approve Resolution #22-37c (approving the resolution as written will result in changes to the contract as described by staff).
The Council may make a motion directing staff to make specific amendments to the contract proposed in Resolution #22-37c and to bring back said amendments for future council action (requested amendments may require further discussion and negotiation with Waste Management by staff)...
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