Allied Waste details curbside recycling contract with City of Yu

Yuma

Allied Waste details curbside recycling contract with the City of Yuma

Posted:

YUMA, AZ - Two days after the Yuma City Council voted 6-1 to pass curbside recycling we are finally getting answers to clearly explain the dollars in this revenue sharing deal between the city and Allied Waste.

KSWT News 13 sat down with Allied Waste to crunch numbers, clear the air, and to get to the facts. 

Since Wednesday, after the Yuma City Council passed this curbside recycling deal, we've talked to players on all sides: City of Yuma Administrator Greg Wilkinson who negotiated the deal, Yuma Mayor Alan Krieger, who was the lone "no" vote, Councilmember Cody Beeson, who voted "yes." And today KSWT News 13 spoke to Derek Ruckman, General Manager of Allied Waste.

KSWT News 13 sat down with Ruckman to go over the contract so we could weed through the political in-fighting to show the taxpayer the real numbers that the Yuma City Council could have presented two days ago to set the record straight.

"When you roll out a recycling program, you have to understand what kind of volume we're going to be working with. We don't really know that, we have an idea," said Ruckman.

Ruckman says the revenue sharing formula presented in its contract with the City of Yuma is just an example based on fiction, not reality.

He admits using this formula will steer residents to calculate the wrong math.

"Is it confusing? Absolutely, it's confusing. It's confusing for anyone that's looking at it for the first time. There's some explanation needed," he said.

Ruckman says it's too soon to determine the company's net profit because yet to be analyzed is the true volume of recyclables collected including: paper, plastics, and fiber.

"We also don't know whatever tonnage we receive from the curb, what kind of tonnage it's going to be, we don't know how much newspaper it's going to have, we don't know how much cardboard it's going to have and most important thing, we don't know how much trash it's going to have and so all these play into the economics of curbside recycling," he added.

As for Allied Waste's capital investment, the recycling company will spend $1 million in upfront costs to buy 21,000 recycling bins which will be given to Yuma residents, free of charge. That means it won't cost the city of Yuma a single dime to start its recycling program.

We asked Ruckman what stake in this deal does Allied Waste have. "There's a lot or work that needs to be put in to make this deal successful. Getting a community to buy-in and behave differently is a challenge," he explained.

As for the overall revenue Allied Waste believes it can generate from this deal? Allied Waste projects it could earn $6 million in revenue over the seven year contract. However - that's a low estimate.

After the cost of doing business, paying employees, sorting and transporting recyclables, the profit margin will be much less. That figure has yet to be determined.

"There's a lot of cost involve and processing this material. Not only are we purchasing carts but we also have to use fuel to get it to the processing facility, we have labor we have a baler, a loader, a bobcat, we have 25 employees, medical insurance, electricity," said Ruckman.

  • Email Alert Sign Up

    Sign up here to receive breaking news stories from KSWT.com and morning updates to your email inbox.

    * denotes required fields


    Thank you for signing up! You will receive a confirmation email shortly.

KSWT-TV Affiliates

Go to KSWT-TV's Facebook page
  • Most Popular StoriesMost Popular StoriesMore>>

  • National

    Obama warns of delay in social sec. checks and veteran's benefits

    Obama warns of delay in social sec. checks and veteran's benefits

    Web Producer: Lucy Valencia, Assignment Desk Editor WASHINGTON (AP) -- Declaring "we are not a deadbeat nation," President Obama warned on Monday that Social Security checks and veterans' benefits willMore >>
    Declaring "we are not a deadbeat nation," President Obama warned on Monday that Social Security checks and veterans' benefits will be delayed if congressional Republicans fail to increase the government's borrowing authority in a looming showdown over the nation's debt and spending.More >>
  • Topic of the Day

    Morning after pill moved to over-the-counter

    Morning after pill moved to over-the-counter

    WASHINGTON (AP) -- The Plan B morning-after pill is moving over-the-counter, a decision announced by the Food and Drug Administration just days before a court-imposed deadline. Tuesday, the FDA loweredMore >>
    The Plan B morning-after pill is moving over-the-counter, a decision announced by the Food and Drug Administration just days before a court-imposed deadline.More >>
  • Coming soon...Wal-Mart

    Coming soon...Wal-Mart

    On Wednesday the Yuma City Council voted to change the zoning designation on the proposed land acquired by Wal-Mart. The property located near the intersection of Avenue B and 8th Street was the home of a mobile home park as zones for residential use; the new designation changes that to mixed which will allow the new store to move in to the property. The new store will be the fifth Wal-Mart for Yuma County.More >>
    On Wednesday the Yuma City Council voted to change the zoning designation on the proposed land acquired by Wal-Mart. The property located near the intersection of Avenue B and 8th Street was the home of a mobile home park as zones for residential use; the new designation changes that to mixed which will allow the new store to move in to the property. The new store will be the fifth Wal-Mart for Yuma County.More >>
  • Gov. Brewer appoints Maricopa County judge

    Gov. Brewer appoints Maricopa County judge

    Gov. Jan Brewer has filled a judicial vacancy in Maricopa County Superior Court.More >>
    Gov. Jan Brewer has filled a judicial vacancy in Maricopa County Superior Court.More >>
  • Crime Watch

    Police investigating dead body found in parked car

    Police investigating dead body found in parked car

    YUMA, Ariz. (13 On Your Side) - Yuma police say a dead woman was found in a car parked at Food City on 8th Street on Tuesday night, at around 6:20 p.m. Police are investigating her cause of death andMore >>
    Yuma police are investigating the death of a woman who was found in a parked car Tuesday night.More >>
  • Father beats accused child abuser, Daytona police say

    Father beats accused child abuser, Daytona police say

    Police say a Daytona Beach father beat an 18-year-old man unconscious after finding him sexually abusing his son. Authorities say the father called 911 early Friday after he walked in on the alleged abuse.Frolander motionless on the living room floor. He had several knots on his face and was bleeding from the mouth. Police said the father -- who was not identified -- told investigators he walked in as Frolander was abusing the boy. Police did not release the boy's age, but Frolander is charge...More >>
    Police say a Daytona Beach father beat an 18-year-old man unconscious after finding him sexually abusing his son. Authorities say the father called 911 early Friday after he walked in on the alleged abuse.Frolander motionless on the living room floor. He had several knots on his face and was bleeding from the mouth. Police said the father -- who was not identified -- told investigators he walked in as Frolander was abusing the boy. Police did not release the boy's age, but Frolander is charge...More >>
  • 13 arrested in Phoenix area stolen property probe

    13 arrested in Phoenix area stolen property probe

    Authorities say 13 people have been arrested after search warrants were served in Gilbert and Chandler after a seven-month drug and stolen property investigation.More >>
    Authorities say 13 people have been arrested after search warrants were served in Gilbert and Chandler after a seven-month drug and stolen property investigation.More >>
  • California

    Border patrol agents rescue 3 people and arrest gang member

    Border patrol agents rescue 3 people and arrest gang member

    YUMA, Ariz. (KSWT News 13) - El Centro Sector Border Patrol agents had a busy weekend. Agents arrested a dangerous gang member and then followed that up by rescuing three men lost in the desert. AlsoMore >>
    El Centro Sector Border Patrol agents had a busy weekend.More >>