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FY 2025/2026 Tipping Fee
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Requested Action(s)
recommendation
Review and approve the Recommended FY 2025/2026 Tipping Fee Adjustment, as presented.
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Financial Impact:
Background Information:
Consumer Price Index for All Urban Consumers Increase & Variable Tipping FeeStructure
Pursuant to Section 4.V.2 of the Landfill and Material Recovery Facility Operations Agreement (Agreement) with Waste Connections, the contractor tipping fee, "shall be subject to an annual adjustment of the April-to-April percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for the West (1982-84-100)” up to 5%. The CPI-U increase for 2025/2026 is 5.97%; as such, the Contractor Tipping Fee will be increased by 5%
Change in Law and Phase I
As the Board is aware, Waste Connections has agreed to maintain Phase I with reimbursement of actual labor and equipment expense. This provided significant savings to the public as the Agency would have had to contract to perform annual maintenance otherwise. Additionally, the agreement between the Agency and Waste
Connections allows for Waste Connections to seek reimbursement for one half of the
groundwater monitoring costs after Phase I closes. Unfortunately, Waste Connections did not provide written notification or supporting documentation requesting these reimbursements by April 1, as stated in Section 4.V.6 of the agreement between the Agency and Waste Connections.
Per Section 4.V.3. of the agreement between the Agency and Waste Connections, Waste Connections may request to increase the Contractor Tipping Fee up to 15% per year (less the CPI-U increase) to offset the direct costs incurred due to Changes in Law, as approved by the JPA, until such costs are recovered. Waste Connections has indicated that they are not seeking reimbursement for any Changes in Law.
Fees to Public Agencies - JPA Fee
Per Section 6.B.1 of the Landfill and MRF Operations Agreement, if the cost to operate the Agency is more or less than the fee paid to the Agency on an annual basis, the Agency reserves the right to raise or lower the fee as necessary. At the April 7, 2025 Full Board meeting, the Board of Directors approved a budget that did not increase the JPA fee.
Summary of Recommended Tip Fee Adjustments Effective July 1, 2025 - June 30, 2026
Based upon the above information, staff is requesting approval to adjust the tipping fee as outlined below:
|
|
FY 2024/25 |
FY 2025/26 |
|
Contractor Tip Fee |
$98.81 |
$105.44 |
|
Cell Liner Tip Fee |
$11.79 |
$11.79 |
|
Phase III Permitting |
$0.50 |
$0.50 |
|
Change in Law |
$1.13 |
$0.00 |
|
JPA Fee |
$0.00 |
$0.00 |
|
Closure Fund |
$0.00 |
$0.00 |
|
Total (per ton) |
$112.23 |
$117.23 |
|
Minimum Fee (320 pounds) |
$17.95 |
$18.83 |
Once the Board approves the recommended tip fee adjustments, Waste Connections will advertise the fees.