February 24, 2009

News Release

For Immediate Release

Put or Pay Agreement

The City of Springfield, Allied Services, LLC, and Waste Corporation of Missouri are pleased to announce they have reached agreement on the delivery of a specific volume of local waste to the Springfield Municipal Landfill during the next 10 years.

These agreements, which are expected to go to the City Council for first reading on March 9, 2009, will provide a dedicated and stable funding source to support the City’s voter-approved Integrated Solid Waste Management System (ISWMS).

Work on these agreements began in September 2008 in response to the recommendations of the Citizen’s Solid Waste Committee, which encouraged the parties to find the middle ground in securing a dedicated and stable funding source for the City’s ISWMS. The Citizens Committee recommended this approach as an alternative to “flow control”, which the U.S. Supreme Court restored for municipalities in 2007.

Under the agreements, Allied and Waste Corp. each have committed to deliver 175 tons of local solid waste per day to the Landfill beginning July 1, 2010. That tonnage would increase 2 percent a year during the 10-year term of agreement. Both companies have agreed to increase their tonnages by 25 tons per day every six months to reach the 175 tons per day commitment by July 1, 2010.

In addition to the 350 tons that will be transported by Allied and WCA, the City receives about 250 tons a day from other local waste-disposal providers.

Under terms of the agreements, increases in the Landfill tipping fee, which is currently the lowest fee in Missouri at $28.65 per ton, would be restricted to annual adjustments for increases in the construction cost index, as published in the American City & County Magazine, with an annual cap of 10 percent.

These agreements not only will stabilize solid-waste funding for the voter-approved ISWMS, they also will restore this funding to approximately 77 percent of FY94 funding levels.

The goals of the Solid Waste Enterprise Fund are to support the current and future operational expenses of the Landfill, comply with state-mandated solid-waste regulations, and support the voter-approved integrated solid-waste system. The ISWMS, supported by voters in 1991 and 1993 elections, includes the Household Chemical Collection Center, the recycling drop-off sites, the Yardwaste Recycling Center, the market-development program and the public education program. These programs have always operated without any General Fund subsidy.

At a rate of 600 tons per day, the Landfill has capacity for 26 to 30 years based on the 180 acres currently permitted out of 1,100 acres owned by the City.

“These agreements represent an Ozarks compromise and a creative solution to secure a dedicated and stable funding stream for this program,” Mayor Pro Tem Gary Deaver said. “We would not be here today without Allied and WCA’s cooperation and support. In addition, by working together, Springfield maintains its competitive tipping fee, currently the lowest in the state.”

“The real benefits, though, are to our citizens and our community as a whole because this agreement will reduce the carbon footprint associated with managing our local solid waste and enhance customer options for a number of recycling services,” Deaver said.

The revenue generated by these agreements will provide essential funding for the environmental programs and services of the City’s Integrated Solid Waste Management System in a number of ways:

The 2008 Citizens Survey results showed that 82 percent of the scientific sampling believes the City should increase its efforts to promote recycling. The survey showed 55 percent of respondents currently recycle and of those, 78 percent said they use City recycling facilities.

“This is a win-win-win agreement,” Deaver said. “I want to thank both Allied and WCA for their good-faith efforts to hang in there during a long negotiation and I also want to thank the Citizens Committee for studying all the angles and recommending the put-or-pay option to balance the interests of our solid-waste program and the free-market system we use for trash collection in Springfield.”

For more information, contact: Marc Thornsberry, Director of Public Works, 864-1902; or Mayor Pro Tem Gary Deaver, 866-6463.

city of springfield

Department of Public Works

840 Boonville Avenue • P.O. Box 8368 • Springfield, MO 65801
417-864-1900 • springfieldmo.gov