Memorandum

City of Lawrence

Public Works Department

TO:	David L. Corliss, City Manager Charles F. Soules, Public Works Director
FROM:	Tammy Bennett, Assistant Public Works Director
CC:	Ed Mullins, Finance Director
Date:	July 1, 2013
RE:	Resolution 7029 Bond Authorization for Curbside Recycling Equipment

Please place the following item on the July 9th City Commission agenda:

Adopt Resolution No. 7029, authorizing the issuance of general obligation bonds for the purchase of equipment for the curbside recycling program.

Background:

Implementation of the curbside recycling program will require the issuance of debt to acquire needed equipment and spread the costs of new equipment over the life cycle of the equipment.

The City Commission approved the implementation of the city-wide curbside recycling program on March 26, 2013.  The City has entered into a contract with Hamm Inc. for the processing of recyclables at a material recovery facility (MRF).  City crews will collect the material curbside. 

Implementation of the curbside program will require the addition of four trucks to the fleet, roll-out carts, and dumpsters for some of the multi-family locations.  The capital costs will be bonded through the normal issuance of debt.  Resolution No. 7029 provides authority for the City to issue debt for this purpose.  The resolution was drafted by the City’s bond counsel.  Debt will be issued this fall for the trucks, due to the length of manufacturing time required on large equipment.  Debt will be issued in 2014 for the carts and other equipment needed.  Public Works staff will work closely with the Finance Director to ensure funding is available at the time needed. 

The debt will be repaid through the Solid Waste Fund, as collected from the fee for residential curbside recycling services.  The debt payments were figured into the rate of $2.81 per household for residential recycling when the rates were approved by the City Commission.  No other rate change is planned for 2014 in the Solid Waste Fund.

Action Request:

Please adopt Resolution No. 7029, authorizing the issuance of debt for the purpose of purchasing equipment for the curbside recycling program.