Consideration and Approval of Contract:  Service Agreement for Refuse and Recycling Collection (Service Agreement) between the City of Flagstaff and Arizona Board of Regents for and on behalf of Northern Arizona University (NAU).

The City of Flagstaff has been providing Solid Waste services to NAU based upon an 2005 Intergovernmental Agreement (IGA) that expired in August of 2015.  Throughout the course of the IGA, the City of Flagstaff has been contracting with Norton Environmental, Inc. to dispose of recylable materials collected at NAU. 

Prior to the 2015 expiration, the City of Flagstaff and NAU entered into negotiations to update pricing for Solid Waste services provided to NAU.  Under the new Service Agreement, the pricing for NAU's refuse service was increased to 75% of the City's commercial rate, in effect offering NAU a 25% discount for their trash service.  The pricing for NAU's recycling was not discounted, as the majority of the cost of providing recycling service is subsidized by the fees for the trash service. 

The financial impact to the City of Flagstaff is an increase in revenue for Solid Waste.  Staff negotiated a rate for service that accounted for volume and density efficiencies.  A complete breakdown of how Staff determined the fees for service can be found in the attachment "Financial Impacts".

Overview of Fees:
Pre-Agreement Monthly Service Fees - $14,443
New Agreement Monthly Service Fees - $18,361

COUNCIL GOALS:
3) Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics
7) Continue to implement the Flagstaff Regional Plan and focus efforts on specific plans
REGIONAL PLAN:

Council approved a previous and similar IGA between the City of Flagstaff and NAU in August of 2005, but there has not been a previous decision on this Service Agreement.

Deny the agreement and leave NAU's pricing as it currently is. These revised rates are the same offered to all commercial entities (apartment complexes) with eight containers or more.

In July 1997, the City and NAU entered into an Intergovernmental Agreement for the City to provide, among other services, refuse collection and recycling services to the NAU Residence Halls on the NAU campus. In 1999, the City and NAU entered into two separate cooperative purchasing agreements, which replaced the original IGA; one for refuse collection services and one for Residence Hall recycling services. On July 1, 2003, the Refuse Agreement and the Recycling Agreement were both renewed for two (2) year terms. On July 1, 2005, the terms of the Refuse Agreement and the Recycling Agreement expired and the City and NAU replaced these agreements by consolidating them into an intergovernmental agreement between the City of Flagstaff and NAU.

This agreement is an extension of the 2005 IGA with updated pricing and verbiage.  Major changes to the agreement are as follows:

• An increase in monthly service charges - We adjusted the price for refuse collection to 75% of the current commercial rates and adjusted the price for recycling collection to current commercial rates.
• Removal of annual CPI adjustments - We removed the requirement of yearly CPI adjustments to NAU's rates and based all future rate adjustments on council decisions.
• Added verbiage for glass recycling - Per NAU's request we added language for glass recycling, should they want to implement the program on campus.

 

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