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FY 2026/2027 Tipping Fee
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Requested Action(s)
recommendation
Review and approve the Recommended FY 2026/2027 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 2026/2027 is 4.27%; as such, the Contractor Tipping Fee will be increased by 4.27%
Phase I Maintenance
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. Phase I maintenance and groundwater monitoring costs totaled $16,865.47, or $0.27 per ton.
Diversion Rate Incentive
Per Section 4.V.4.1 of the agreement between the Agency and Waste Connections, if Waste Connections exceeds its required diverted tons by 2% they shall be allowed to increase the Base Year Contractor Tipping Fee by 0.50%.
Landfill Compaction Rate Incentive
Per Section 4.G.17.d of the agreement between the Agency and Waste Connections, if Waste Connections exceeds a three-year rolling compaction rate of more than 1,250 pounds per cubic yard, they shall be compensated $125 per pound for all pounds above 1,250 pounds. Waste Connections' three-year rolling compaction rate for 2026 was 1,607, an increase of 357 pounds above 1,250 pounds. This equates to a...
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