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HomeMy WebLinkAboutMemo from Ted Hutchison INTEROFFICE MEMORANDUM SUBJECT: DATE: DA VB NEAL, DIRECTOR /í~ 1ED HUfCJiINSON, SaUD WAS1E PLANNER Jß - LANDFILL TIPPING FEES REC.EIVED JUN 2 0 2005 To. FROM: 6/17/2005 City of Meridian City Clerk Office HISTORY OF RATES AND RATE CHANGE REQEUSTS Dave: As per your request, I have researched our files regarding landfill tipping fees and the incidence of the department's requests to the Board of Ada County Commissioners for changes in those fees since 2000. Following is a summary of the file infonnation and copies of correspondence between the department and the Board. June 2000: Department recommended increase in tipping fees. In a letter to the Board, the department outlined the need for increased fees based on on-going project costs, unexpected expenses, and future needs. The Board responded to this request in October 2000 with a favorable response. However, because of a multitude of issues facing the Board, formal action and adoption of the proposed rates was put on hold. March 2001:Following the election in the fall of 2000, no action was taken on the department's recommendation. In early March, the department once again recommended that the Board increase tipping fees. However, on March 21, 2001, the Board voted to deny the recommended changes to the fee schedule. The fee schedule recommended in March was actually lov.rer than the recommendation made in June 2000. After the Board's action, the issue of a fee increase was not formally raised again until May 2004. May 2004: The department recommends changes to the tipping fee schedule based on the impacts that subsidized programs, such as household hazardous waste management and organics recycling, have had on the overall budget and the department's ability to increase the reserve fund for future obligations. In 2002, Ada County began managing electronic devices containing cathode ray tubes (picture tubes in televisions and computer monitors) as hazardous waste. The impact of this single waste-stream item was to increase the cost of the household hazardous material management program two-fold. October 2004: In late 2004, the Board asked for information on the landfill tipping fees and revenue projections and an estimate of anticipated expenditures, including the costs of program subsidies. The department put together a letter to the Board laying out some rough estimates based on historical infonnation and projections. By January 2005, the adverse impacts of subsidized programs on the department's financial health became strikingly apparent. January 2005: Supplementing the information given the Board in October 2004, the department further outlined the need for a rate increase. In the January 25, 2005, letter to the Board, the department included infonnation on the impact of a rate increase on rates paid by residential customers. The department estimated that residential trash rates would rise by roughly 7% if the Board adopted the proposed rate change. May2005: The Board adopts Resolution 1314, changing the landfill tipping fees. The effective date of the change is July 1,2005. This was the first major change in tipping fees since 1998. I hope this is infonnation meets your needs. Ted Attachments .. .--" RESOLUTION NO. 1314 AT A MEETING OF THE BOARD ~OUNTY COMMISSIONERS, STATE OF IDAHO, ON THE 'B DAY OF 2005, THE FOLLOWING RESOLUTION WAS UNANIMOUSLY ADOPTED, TO WI : " WHEJ,mAS, the last resolution setting tipping fees was adopted on Au~t 1'7, 1998 (Resolution #548-3w98); and WHEREAS, a resolution initiating a $10.00 disposal fee for each cathode ray tube (CRT) was adopted on May 14, 2002 (Resolution #1137); and WHEREAS, in order to offset the increased costs incurred for hazardous waste management and wood waste recycling at the Ada County landfill, an amended fee schedule needs to be adopted; and NOW, THEREFORE, BE IT RESOLVED, that pursuant to Ada County Code Section 5-2-4, the following fee schedule identified as Exhibit "A" to this Resolution for Ada County Solid Waste Management Department, shall be effective on the 1 st day of July, 2005: BE IT FURTHER RESOLVED that Resolution #548w3-98 is hereby repealed in its entirety. BE IT FURTHER RESOLVED that Resolution #1137 is hereby repealed in its entirety. APPROVED AND ADOPTED this~ day of ?1J~ , 2005. Board of Ada County Commissioners By: ~ Rick Yzaguirre, ai an By: ~ "" "'t: AI .¡J, IVU ,,- ¿Jp..ll" / udy Pea éywDérr, Conuftissioner By: i~]~~. ) Fred Tilman, Commissioner A TrEST: RESOLUTION NO. 1314 - PAGE 1 of2 z:\commissioncr\cocurrcDt\resolutions 2005\resolution no. 1314 - landfilll fee increase. doc .01 4- EXHIBIT" A" Material TiDDing Fee ',' Minimum Charge Compacted Waste Construction Debris! Appliances Non-compacted Waste Wood Wastel Refriferation Units2 Tires Asbestos (minimum, including disposal certificate) . Asbestos Disposal Certification Fee Reduction/W aiver4 $ 6.00 , $ p.OO per cubic yard $ 6.00 per cubic yard $ 3.00 per cubic yard $ 1.50 per cubic yard $i2.00 each $ 2.00 each $ 50.00 $25.00 per cubic yard $15.00 -0- 1. Recyclable wood loads must contain only wood waste. Individuals depositing loads containing other waste materials (mixed waste) will not receive the recyclable wood rate. Wood waste will include structural lumber, plywood, siding, pallets, utility spools, brush, and limbs. Maximum Length - 8', Maximum Diameter - 20". 2. Includes all units with refrigerant and compressors (i.e." refrigerators, freezers, and air conditioners). Limit - 2 per household per year. No commercial loads accepted. 3. Limit - 4 tires per vehicle per visit, cannot exceed 17" rim diameter 4. The Board of Ada County Commissioners may, from time to time, under circum- stances deemed appropriate, authorize a fee reduction or fee waiver. " RESOLUTION NO. 1314 - PAGE 2 of 2 z:\commissioner\cocurrent\rcsolutions 2005\resolution no. 1314 - landfilll fee :rease.doc General Landfill Expenses Ada County Solid Waste Management Department Handout May 2005 -' The last adjustment of landfill tipping fees (the fee charged at the landfill gate) was August 17, 1998. Since that time, there have been significant changes in circumstances involving environmental programs paid for by tipping fees. Among the programs funded by tipping fees are the household hazardous materials program, and the wood-recycling program. Other landfill activities, such as environmental controls systems, property acquisition for landfill buffer areas and expansion of recreational opportunities, and repair of the cover at the old Seaman's Gulch Landfill have created demands on the Solid Waste Management Department's budget which were unforeseen in earlier budget cycles. The following table compares the costs for the environmental programs conducted by the department. The household hazardous materials program is the most costly and has seen the greatest increase in cost since 1998. The next largest cost is the wood-recycling program. :Y-~~~~~~~~T~~~ ~!.- ~~!.~::J~ T.,CJ~~,,6(p_:~!~ ! ,,11~~"~u n!""~~"@~:::i~ ~~~"Ou~t£.~~r'~r-- -R ã~¡;=: ~-:--~~..:::,,:~ - --_.,,-,~,C="=~=::=:====::, " ": "I I ICo\eron¡ , , , I , : ! ' !: Old I Ii: i , ¡ , i i ¡ : Iii . , , : i : Household I I : ! i i Seaman's I ", -"~----,,-,,....._¡~;¥~~2~L:__,,~~;ri~,___¡J~~o~~;:~;a'__L"i A:~~~~_I_"~~~~fi~,_,,L!_~~~,~J:__,,_:_._,,-- "---""1 :"-""-""-~bÕci;"""-;~~i:~~~¡"_¡'-' -~ ~:~Õb~ ggõr¡-'--~~Öo:"õóõr-~--""~~~Õ~Õ~~+'" ""'-",, - -""'r-~-~~~~~~~~~~ +-."""-- --""--;",,--,,--,,.,.' C,,:,,-"'::_-'::-~~ Ò_~)"-'.:, ~:~~~~~8i;=:' "=-J!~~~9.~,,.9.9 6:"=~=: -==-Æ~~Q :"QQ~::::: ¡ -~-"J~~~:Õ~~]:::=:==[! -"'~~~ 6"58, 9 B.!"...,,=== i =:--=,,:==: ¡ 2008! $938,131 i I $1,600,000¡" $1,000,000;" IT1 $450,000; I $3,988,131" I : ==:,:_==r:::=::"-:.".:.".::L=.=..=.-.::.,,".:",,=,-=ct",,,,'::===,:=~~:~~=C:l::=::=:="" -"" ....::',=~~:"=.;::C-==.=,~.:=!_,,-~=~,=_r:.,:::::",,--=:: *Customers taking advantage of the wood recycling program pay tipping fees approximately equal to one-half (Y2) of the cost of the wood recycling program. **Environmental controls at the Hidden Hollow Sanitary Landfill include: . A groundwater remediation system that is cleaning contaminants from the groundwater flowing away from the landfill (the contaminants have been identified as being from landfill gas). The system is a pump-and-treat to strip the volatile organic compounds from the groundwater. A landfill gas extraction system consisting of 52 gas extraction wells and an enclosed utility flare (Ada County is examining the possibility of landfill gas to energy). A surface water control and management system that keeps surface water on-site for evaporation or percolation. . . ADA COUNTY SOLID WASTE MANAGEMENT DEPARTMENT 200 West Front Street, Boise, Idaho 83702 (208) 577-4725; FAX: (208) 577-4729 " January 25, 2005 Board of Ada County Commissioners 200 West Front Street Boise, Idaho 83702 Re: Landfill Tipping Fee Rate Increase Request Dear Commissioners, Attached you will find a chart containing information regarding requested rate changes for the Solid Waste Management Department. Included on this chart are the waste types, current tipping fees, year of last increase, and the anticipated revenue generation for Fiscal Year 2005 (pro-rated for a portion of the year) and for Fiscal Year 2006. This letter and chart supplements and slightly alters information contained in a letter dated October 14, 2004, in which the department laid out justifications and revenue effects of the rate increase. One issue not addressed in that letter was the effect on the average residential trash bill. Residential trash bills should increase about 7% per month because of this rate change, Should the Commission agree with this request for a rate increase of landfill tipping fees, the department recommends the rate increase take effect on May 1, 2005. Thank you for your consideration of this information and request. If the Commission has questions regarding this matter, please call me at 577-4725, Respectfully, Dave Neal, Director Ada County Solid Waste Management Department '. Attachments r. .' ADA COUNTY SO LID WASTE MAN A G EMENT D EP AR TMENT 200 West Front Street, Boise, Idaho 83702 (208) 577-4725; FAX: (208) 853-0253 \, October 14, 2004 Board of Ada County Commissioners 200 West Front Street Boise, Idaho 83702 Re: Solid Waste Tipping Fees and Revenue Projections Dear Commissioners: As requested by the Commissioners, the Solid Waste Department has examined the current landfill tipping fees and revenue. Because the department operates as an Enterprise Fund, no tax dollars are used for any departmental expenses. In preparation for each budget year, the department prepares an estimate of anticipated revenues and expenses. When revenues exceed expenses, the proceeds are placed in a reserve account to cover the department's financial obligations. When expenses exceed revenues, the funds are removed from the reserve account to cover the difference. Over the years, the department has been successful at maintaining an appropriate reserve fund balance to meet long-term obligations and extra-ordinary expenses, such as major construction proj ects, final cover and landfill gas system installation. The department has also been able to fund a number of programs, including household hazardous materials collection and organics recycling. As additional items (electronics and refrigeration units) are included in the household hazardous material management program, the costs of the program have risen substantially. Presently, just under 10% of the department's operating budget pays program subsidies. This amount is expected to increase due to the program's popularity and as more and more material enters the managed waste stream. The department has also seen an increase in the popularity of the organics recycling program. Increasing p'rogram costs, increases in operating costs, unanticipated one-time expenses, operation and maintenance costs for the landfill gas system, and preparation for final closure of the current landfill have placed considerable stress on the department's budget and its ability to maintain the reserve fund. Contracts covering landfill operations are renewed annually. Each year, the costs associated with operations have increased. One- time unanticipated expenses include repairing the cover of the old Seaman's Gulch landfill, acquisition 'of property for the new landfill site and buffer and, purchase of a X:\MyFiles\ADMIN\Landfill Tipping Fees\BOCC Rate Increase Comparison,doc ,- privately held 7-acre parcel within the b'Jl1ndaries of the landfill property. In April 2004, the department began operating a landfj i! gas system installed in an older part of the landfill. Between the years 2010 and 20 ¡ :;, the current landfill will reach its capacity and the final cap and landfill ga"s system ins1 ~1 ¡ led. Repairing the old Seaman's Gulch landfi II cover will cost between $250,000 and $500,000, depending on the amount of so i I needed. Expanding the landfill proøerty and buffer area involves purchasing up to 240 acres on the north side of the landfill property. Expenses for operating the landfill gas system are new to the department. Annual maintenance and operating expenses for the landfill gas system are estimated to be in the $125,000 to $150,000 range. These COSh will continue into the foreseeable future. The household hazardous material managem.:nt program, before 1998, cost the department roughly $150,000 per year. For fiscal year 2004-2005, the department will expend $1,050,000 to manage this waste stream, This increase is due to the growth of the programs and the 1998 construction ofthl? permanent household hazardous materials collection facility. Estimated construction costs for final closure, including expansion of the landfill gas extraction system and post-closure care, are $18 million. Due to these increases in expenses - - normal operating expenses, long-term obligations, and one-time outlays, the Solid Waste Management Department's ability to generate reserve funds is very limited. By raising the landfill tipping fees, these budgetary shortfalls can be addressed. Table 1 pro.! eets the department's reserve fund balance to the year 2010 if the Commissioners approve 111e department's recommended rate increase. This table includes proj ected revenues, C\ penses, and investment interest. Year Table 1 FY'O5 - FY'10 50lid Waste Management Department Revenue. Expendit II r~s & Enter rise Fund Balance 2005 2006 2007 2008 2009 , -,_._...._,,-----' 2010 ---- Current Funds Rewnue Subtotal Expenditures Subtotal Interest. Enterprise Fund Balance $19,500,000 $7,703,298 $27,203,298 ($10,400,000) $16,803,298 $323,480 $17,126,778 $8,782,709 $25,909,487 ($18,600,000) $7,309,487 $113,603 $7,423,090 $10,103,915 58,782,709 $8,782,709 $16,205,799 $18,886,624 \$6,300,000) ($9,600,000) $9,905,799 $9,286,624 $198,116 $185,732 $9,472,356 $8,782,709 $18,255,065 ($4,000,000) $14,255,065 $285,101 $14,540,167 $8,782,709 $23,322,876 ($4,000,000) $19,322,876 $386,458 ...".,,--, "-'---" .,-~. $17,126,778 $7,423,090 $10,103,915 $9,472,356 $14,540,167 $19,709,333 .,--,,--, I I I ,-------, ---- ~-~-,----_., ,-_."._--+--,_.,....".....,.-,----1,-,,---'--"; .Anticipated interest ea.med calculated at 2%... ."." L-"--.-,-,,..j-_._.~J I I i ¡ '"1 I I I Table 2 provides the current fee structure; revenue accrued during FY'04, a proposed fee structure, and a projection for FY'05 and FY'06 revenues. The FY'05 figures are based on a fee increase taking effect April 1, 2005 (midway through the current fiscal year). This date will allow contracted trash haulers SLl t'ficient time to negotiate rate adjustments with the political subdivisions with whom th(v contract services. X:\MyFiles\ADMIN\Landfill Tipping Fees\BOCC Rate Inc'" case Comparison.doc ~ ,", Material Table 2 Tipping Fee Recommended Increase & Revenue Projections Current Tipping Fee (per cubic yard) $25.00 $5.50 FY'04 Revenue Proj ected Proj ected FY'05 FY'06 Revenue Revenue $11,925\ $11,925 $63 $66 i¡';:~{o):;f$'1' ','9S:6,"':'ii,'$11,986 $6.00 f',:$4~lÔ9:932':,i$4:931 700 $3.00 $1,064,971 $1,195,938 $11,925 $60 Proposed Tipping Fee (per cubic yard) $25.00 $6.00 "" ,,""" "" ""C'\"~1~"'~ff..aJ L:,j ~.... ';:;!L~1!~ E.:;;~l~K\2;;:i§i~SJ $4.00 $2.50 $934,004 $5.00 $51,365 $5.00 $51,365 $51,365 "$í 116;33'(j "$1,247,303 $6.00 $2,100,106 $2,200,212 $5.00 $33,255 $33,255 ~J~!i$S.g5i¡3,69 , $5.50 $2000,000 $5.00 $33,255 Varies by width $7,318 $7,318 $7,318 The Solid Waste Management Department strives to provide environmentally sound solid waste management solutions for the residents, businesses and institutions of Ada County at the lowest reasonable cost. The last increase of landfill tipping fees occurred in 1998. The recommended adjustment maintains the department's ability to continue its directed mission. ' Thank you for your consideration of this information. If the Commissioners have questions, please call me at 577-4725. If the Commissioners agree with this request, the department asks that the rate increase become effective April 1, 2005. Respectfully, Dave Neal, Director Ada County Solid Waste Management Department X:\MyFiles\ADMIN\Landfi11 Tipping Fees\BOCC Rate Increase Comparison.doc c -."" .. ADA COUNTY SOLID WASTE MANAGEMENT DEPARTMENT 200 West Front Street, Boise, Idaho 83702 (208) 853-1297; FAX: (208) 853-0253 May 25, 2004 Board of Ada County Commissioners 200 West Front Street Boise, Idaho 83702 Re: Solid Waste Management Department Revenue and Expenditure Issues Dear Members of the Board: As we enter the budget cycle for the next fiscal year, the Solid Waste Management Department took a look at the department's revenue and landfill programs subsidized by landfill tipping fees (fees collected at the landfill gate). The department's budget is set based on a reasonable estimate of anticipated revenue and expenditure. We are able to detennine how well we estimated as the fiscal year progresses and we compare our estimate with reality. We have done very well with two exceptions - investment interest and electronics waste management. The Solid Waste Management Department operates as an Enterprise Fund. As such, revenue that exceeds expenditure is placed into a reserve account to cover long-term financial obligations for maintenance of the County's solid waste system. Presently, the reserve fund has a balance of roughly $20 million. Historically, the Ada County Treasurer's investment of this reserve fund has earned this department an interest rate of 4% to 5% per annum. However, recent interest rates have been very low - approximately 2% per annum. This low interest rate results in a significant loss of projected revenue ($400,000 vs. $800,000 to $1,000,000 per annum). For several years, Ada County has promoted programs at the landfill, including wood waste recycling, household hazardous material management, refrigeration unit management, waste tire disposal, and most recently, electronics waste (e-waste) recycling. Some of these programs have a co-pay to off-set some of the management cost, such as refrigeration unit management, wood waste recycling, and waste tire disposal. The fastest growing subsidy is the e-waste recycling. The e-waste management program was initially set up as a co-pay program where the generator of the e-waste paid a portion of the cost of processing the material. However, this caused considerable problems for electronics repair shops and non-profit charitable X:\MyFilcs\ADMIN\Landfill Tipping Fees\Program Subsidies BOCC.doc ~ .z- organizations who were used as illegal dumping grounds. In response to this problem, the Board waived the co-pay for this program. We knew there was a mass of outdated electronics (i.e., computers, monitors, televisions) being stored in the community. However, we underestimated the response to the. electronics waste management program. The response to this program has been nothing less than stupendous. ; To put this information into perspective, we have put together information regarding the department's revenue and the amount spent on program subsidies. The information reviews FY - 99 through FY 03. During this period, the Solid Waste Management Department took in $36,160,344 while paying out $3,349,401 for subsidized programs. Following is a year-to-year breakdown of revenue and subsidies. Fiscal Year Revenue Subsidies Subsidy as % of Revenue 1999 $6,632,554 $636,554 9.6% 2000 $7,207,452 $523,266 7.3% 2001 $7,685,435 $594,501 7.7% 2002 $7,473,015 $714,380 9.6% 2003 $7,161,888 $880,700 12.3% Totals: $36,160,344 $3,349,401 9.2% As shown in this table, there is a significant increase in the percentage of the department's revenue being consumed by program subsidies. We should note the decreasing revenue since 2002. The decreases are primarily due to low interest rates paid on the solid waste reserve fund and to the pilot diversion project where a small percentage of Ada County's waste is diverted to the Idaho Waste Systems, Inc. landfill in Elmore County. We anticipate that this trend will continue. The following table shows the projected effects for FY 04 and FY 05. Fiscal Year Revenue Subsidies Subsidy as % of Revenue (Projected) 2004 $6,529,177 $990,143 15.1% 2005* $6,400,000 $1,400,000 21.8% Totals: $12,929,177 $2,390,143 18.5% .lfthe Board agrees with this request for a rate increase, the projected revenue for FY 05 is $7.600. ODD, This would decrease the subsidy percentage to 18.4%for FY 05. As stated previously, the fastest growing segment of the subsidized programs is electronics waste management. Response to this program has been quite surprising. However, we are seeing increased participation in the other programs as well. These are important programs and integral parts of Ada County's solid waste management system. When one examines 'the intent of these programs, one can measure their success by their X:\MyFiles\ADMIN\Landfill Tipping Fees\Program Subsidies BOCC,doc ~ z.. ~ popularity and rates of growth. However, these increases are causing a significant drain on the department's ability to put money into the reserve fund for financial assurance, long- range planning, closure and post-closure care of the existing landfill, and development of a new disposal facility. This brings us to the hard part - the need to adjust the landfill tipping fees to off-set some of the increased subsidies and decreased interest income. At this time, the Solid Waste Management Department asks the Board to consider an adjustment to the tipping fee for compacted waste. Our recommended adjustment is $1.50 per compacted cubic yard. Presently the fee is $4.00 per cubic yard. The increase would raise the fee to $5.50 per cubic yard. This increase would generate additional revenue of approximately $1,200,000 per year. Although significant, this amount does not completely cover subsidized program costs. Thank you for your consideration of this request. If there are questions, please call me at 853-1297. If the Board agrees with this request, this department asks that the rate increase become effective October 1, 2004. Respectfully, Dave Neal, Director Ada County Solid Waste Management Department X:\MyFiles\ADMIN\Landfill Tipping Fees\Program Subsidies BOCC,doc " ~'j. '~¥'.' ~~.:~~ ;i...~y~'; 'J",-,~. '.'l_~ ADA COUNTY SOLID WASTE MANAGEMENT DEPARTMENT 650 Main Street, Boise, Idaho 83702 (208) 853w1297; FAX: (208) 853-0253 March 16, 2001 ADA Cov ty , Belird of Comrr ~sloners RE: Landfill Tipping Fees 01' ADA COUNTY C()MMI88IONEA8 ,.. 0IIr ( (~ ) ~) ( ) Yi Board of Ada County Commissioners 650 Main Street Boise, Idaho 83702 Dear Members of the Board: To ensure the Solid Waste Management Department can meet the demands of current and future operations, this department reviewed the landfill tipping fee schedule and compared it with departmental operating costs. The department examined costs for the following: . current operations; projected landfill closure; new landfill opening; existing and upcoming environmental control systems; and, household hazardous material collection and disposal. . . . . We are also watching the horizon for new state and federal environmental and solid waste regulations. The Solid Waste Management Department is committed to providing the best service for the lowest cost to the public. We must, however, ensure that the rates charged our , customers cover all costs associated with current and future solid waste disposal and hazardous waste management. Therefore, this department is seeking a rate increase to meet anticipated financial obligations. In October 1998, the Board adopted the present landfill tipping fee schedule. Since then, the Solid Waste Management Department's consulting engineer, CH2MHill, has completed a re-examination of the landfill's capacity. Factoring in rate of fill, waste diversion programs,' landfill cell construction, and other associated issues, CH2MHill determined that the landfill's capacity was less than originally estimated. Closure for the Hidden Hollow Landfill will occur around the year 2009 instead of the year 2013. To establish that the Solid Waste Management Department is on-track with revenue and cost projections, AI Associates, Inc., reviewed the department's financial status. AJ Associates has experience in landfill operation, engineering, and financial management. J;'ased on the landfill's projected life-span, revenue and costs, AJ Associates found that revenue generated by this proposed fee increase will aid the County in meeting its regulatory requirements for closure and post-closure care and in meeting its current and foreseeable obligations. Some of the current, on~going projects that are funded through landfill tipping fees are: . Collection and disposal of household hazardous materials; Operation of the groundwater remediation equipment; Planning for landfill gas control system, i.e., extraction and flaring; Acquisition of80 acres of Bureau of Land Management land; Wood scrap recycling program~ Education and outreach programs; Personnel training; Daily operations and maintenance. . . . . . . . Some projects are ongoing expenditures; some are one-time outlays. Because no tax money is spent for operation of the Solid Waste Management Department, we must meet all financial obligations through user generated revenue - - the landfill tipping fees. Less capacity than projected has shortened the time allowed for generation of funds needed to cover long-term obligations, such as closure and post-closure care. Each year, Ada County must prove to the State that the County can meet its obligations regarding closure, post-closure (30 years beyond closure date) and corrective action costs for the landfill. Groundwater remediation and landfill gas extraction and treatment are part of the corrective action costs for which the County must prove its capability. These corrective action costs increase the County's long-term liability for landfill care. The Solid Waste Management Department is working to ensure that it can meet these obligations. However, analysis of current revenue sources reveals that meeting the long-term financial obligations of the department requires a tipping fee increase. Attached is a chart showing our existing rates, proposed rates, and anticipated revenues from the proposed change. The Solid Waste Management Department recommends that the Board adopt the proposed fee schedule effective October 1. 2001. Adoption of this fee schedule will ensure that the County can meet its commitments to environmentally sound solid waste disposal and hazardous waste management. If there are questions regarding this request, please call me at 853~1297. ~ect~, " d-, e Neal. Dir tor Ada County Solid Waste Management Department Attachment PROPOSED LANDFILL TIPPING FEE INCREASE (10/01/01) PROJECTED REVENUE INCREASE Anticipated Revenue Current Proposed Increase " 1. Minimum 5.00 6.00 $30,000 2. Recyclable wood 1.25 1.50 $25,000 3, Non~compacted waste 2.50 3.00 $180,000 4. Compacted waste 4,00 5.00 $700,000 5. Urban Rubble! Appliances 5.50 6,50 $375,000 6. Asbestos (minimum) 50.00 50.00 0 7. Asbestos 25,00 25.00 0 8. Tires 1.50 1.50 0 9. Remgeration units 10.00 10.00 0 10. Disposal certification 15.00 $1,310,000 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. RECOMMENDED LANDFILL TIPPING FEES EFFECTIVE DATE - OCTOBER 1, 2001 Minimum fee Recyclable woodl(a) $6.00 1.50 Non-compacted wastel Compacted wastel Urban rubblel/appliances 3.00 5.00 6.50 50.00 Asbestos (minimum) Asbestosl(b) 25.00 1.50 Whole tires(c) Refrigeration units(d) 10.00 11. Disposal certification(e) Fee reduction/waiver<t) 15.00 lCharges are based upon cubic yards. (a~ecyclable wood loads must contain only wood waste, brush and limbs, structural lumber, plywood, siding, pallets, and utility spools. To receive this rate, the load must be placed in the wood recycling area. (b)Charge includes fee for disposal certification. (c>r.imit offour (4) passenger car tires per vehicle per visit. Cannot have a rim diameter larger than sixteen inches «16"). ' (d)¡.¡ousehold refrigeration units and compressors (i.e., refrigerators, freezers, air conditioners). Limit of two per household per year. No commercial units accepted. ("When desired by the hauler or required by law, Solid Waste Management Department staff will watch to ensure that a load has been destroyed and buried. This fee covers the additional cost of having staff certify the disposal. (f}¡-he Board of Ada County Commissioners may, fÌ'om time to time, under circumstances deemed appropriate, authorize a fee reduction or fee waiver. ADA COUNTY SOLID WASTE MANAGEMENT DEPARTMENT ~" f ~ Comm. 0181. No.'/ - -YU- Comm. Dill No. ~. DItt. No. -~ '. 650 Main Street, Boise, Idaho 83702 208.853.1297; fax 208.853-0253 e-mail: adaswm(åJmicron.net ,~& h»t I' < DO ~/O77 ~ ~ ~J2~ ~ ~ June 13, 2000 RE: Landfill Tipping Fees ADA County ~ ~mlTli8Ðjoner$ -------- Board of Ada County Commis 1 650 Main Street Boise, Idaho 83702 Dear Members of the Board: To ensure the Solid Waste Management Department can meet the demands of.current and future operations, this department reviewed the landfill tipping fee schedule and compared it with departmental operating costs. The department examined costs for the following: . current operations; projected landfill closure; new landfill opening; existing and upcoming environmental control systems; and, household hazardous material collection and disposal. . . . . We are also watching the horizon for new state and federal environmental and solid waste regulations. ' The Solid Waste Management Department is committed to providing the best service for the lowest cost to the public. We must, however, ensure that the rates charged our customers cover all costs associated with current and future solid waste disposal and hazardous waste management. Therefore, this department is seeking a rate increase to meet anticipated financial obligations. In October 1998, the Board adopted the present landfill tipping fee schedule. Since then, the Solid Waste Management Department's consulting engineer, CH2MHill, has completed a re-examination of the landfill's capacity. Factoring in rate of fill, waste diversion programs, landfill cell construction, and other associated issues, CH2MHill detennined that the landfill's capacity was less than originally estimated. Closure for the Hidden Hollow Landfill will occur around the year 2009 instead of the year 2013. To establish that the Solid Waste Management Department is on-track with revenue and cost projections, AJ Associates, Inc., reviewed the department's financial status. Al Associates has experience in landfill operation, engineering, and financial management. Based on the landfill's projected life-span, revenue and costs, AJ Associates found that revenue generated by this proposed fee increase will aid the County in meeting its regulatory requirements for closure and post-closure care and in meeting its current and foreseeable obligations. Some of the current, on-going projects that are funded through landfill tippi~g fees are: . Collection and disposal of household hazardous materials; Operation of the groundwater remediation equipment; Planning for landfill gas control system, i.e., extraction and flaring; Acquisition of 80 acres of Bureau of Land Management land; Wood scrap recycling program; . Education and outreach programs; :personnel training; Daily operations and maintenance. . . . . . . . Some projects are ongoing expenditures; some are one-time outlays. Because no tax money is spent for operation of the Solid Waste Management Department, we must meet all financial obligations through user generated revenue - - the landfill tipping fees. Less capacity than projected has shortened the time allowed for generation of funds needed to cover long-term obligations, such as closure and post- closure care. Each year, Ada County must prove to the State that the County can meet its obligations regarding closure, postwclosure (30 years beyond closure date) and corrective action costs for the landfill. Groundwater remediation and landfill gas extraction and treatment are part of the corrective action costs for which the County must prove its capability. These corrective action costs increase the County's long-term liability for landfill care. The Solid Waste Management Department is working to ensure that it can meet these obligations. However, analysis of current revenue sources reveals that meeting the long-term fmancial obligations of the department requires a tipping fee increase. Attached is a chart showing our existing rates, proposed rates, and anticipated revenues from the proposed change. The Solid Waste Management Department recommends that the Board adopt the proposed fee schedule effective January 1, 2001. Adoption of this fee schedule will ensure that the County can meet its commitments to environmentally sound solid waste disposal and hazardous waste management. If there are questions regarding this request, please call me at, 853-1297. Respectfully, j f¡'", '71 tld- ~ n:e'cti;^ C Ada County Solid Waste Management Department Attachment . PROPOSED LANDFILL TIPPING FEE INCREASE (1/1/01) PROJECTED REVENUE INCREASE Anticipated Revenue Increase FY '98-'99 Current Proposed " , 1. Minimum 5.00 7.00 $60,000 2. Recyclable wood 1.25 1.50 $25,000 3. Nonwcompacted waste 2.50 3.00 $180,000 4. Compacted waste . 4.00 4,80 $560,000 5. Urban Rubble/Appliances 5.50 6.60 $400,000 6. Asbestos (minimum) 50.00 50.00 0 7. Asbestos 25.00 25.00 0 8. Tires 1.50 1.50 0 9. Remgeration units 10.00 10.00 0 ~ 10. Disposal certification 15.00 $1.225 000 " .. RECOMMENDED LANDFILL TIPPING FEES EFFECTIVE DATE - JANUARY 1, 2001 1. Minimum fee $7.00 2. Recyclable woodl(a) . 1.50 3. Non-compacted waste I 3.00 4. Compacted wastel 4.80 5. Urban rubblel/appliances 6.60 6. Asbestos (minimum) 50.00 7. Asbestosl(b) 25.00 8. Whole tires(c) 1.50 9. Remgeration unitS(d) 10.00 , 10. Disposal certification(c) 15.00 11. Fee reductionlwaiver't} ICharges are based upon cubic yards. ('>Recyclable wood loads must contain only wood waste, brush and limbs, structural lumber, plywood, siding, pallets, and utility spools. To receive this rate, the load must be placed in the wood recycling area. (b>Charge includes fee for disposal certification. (c>¡'imit of four (4) passenger car tires per vehicle per visit. Cannot have a rim diameter larger than sixteen inches «16"). (d>fIousehold remgeration units and compressors (i.e." refrigerators, freezers, air conditioners). Limit of two per household per year. No commercial uruts accepted. (e>when desired by the hauler or required by law, Solid Waste Management Department staffwill watch to ensure that a load has been destroyed and buried. This fee covers the additional cost of having staff certify the disposal. ' (f>Jbe Board of Ada County Commissioners may, from time to time, under circumstances deemed appropriate, authorize a fee reduction or fee waiver. Ada County Solid Waste Mapagem~nt Department " """",:;:.-":,, ,'.. """""'".-.-J"">:", ,': ",'.", ',;,,' "'../" '\"",:"-" ',"";\,'" ";"", DAVE NEAL DIRECTOR , .., 1j;MCt~EST FRONT STREET ,,:::ïJöii:íi;'IoAHO 83702 ..',',:(208')'577 -4725 ?FÀx (208) 577-4729 E-MAIL: dneal@adaweb.net