Goldsboro City Council prepared the way Monday evening to begin collecting refuse and recyclables at Seymour Johnson Air Force Base.

City Council approved an Intergovernmental Support Agreement (IGSA) March 18 with Seymour Johnson Air Force Base that allows the city to collect commercial refuse and recycling items beginning July 1. The contract lasts through June 30, 2029.

Rick Fletcher, Goldsboro public works director, said the contract with the city is approximately $251,000 a year.

The Department of Defense came up with the idea of using IGSAs with municipalities to save money, reduce administrative time and improve relationships with local communities, according to the U.S. Government Accountability Office.

“It kind of make sense for bases located in municipalities to allow them to provide certain services,” Fletcher said. “By adding the bases on some services, they can possibly save money.”

The U.S. Government Accountability Office did an analysis on eight IGSAs in 2018 and found the military services have gained financial and nonfinancial benefits from local or state governments providing services like waste removal, grounds maintenance and stray animal control.

Fletcher said when the Air Force was considering entering into an IGSA with Goldsboro one thing looked at was the city providing ground maintenance at the base. But to do that the city would have had to hire a separate crew, he said.

“They asked us about other contracts on base,” Fletcher said. “But the one we felt comfortable with was solid waste on the commercial side.”

Public Works already provides that service downtown. The city only has to hire one more person to collect the refuse from the base, Fletcher said.

“We’re saving them money, and we’re coming out with a revenue for our costs,” he said. “This also helps build our relationship. We have worked well together over the years.”

City Council approved the method of purchasing $603,000 worth of equipment to fulfill the contract Monday night.

Installment financing will be used to purchase a front loader, $269,000; a rear loader, $102,500; and a roll-off truck with grapple, $216,500. An additional $15,000 was approved for insurance costs, according to the city.

Since the vehicles were needed before financing could be finalized, reimbursement resolutions were adopted by Council at a previous meeting. Requests for proposals were mailed April 3, 2019, with 14 different financial institutions responding.

Zions Bank presents the most attractive proposal based on the lower Non-Bank Qualified total cost to the city with an interest rate of 2.68 percent over a 10-year term. Davenport Financial Advisors recommended that the city select the terms from Zions Bank.

Council approved the financing proposal by consent of the board.