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Public Hearings 17.

Regular Board of Supervisors Meeting

Solid Waste

Meeting Date:: 08/16/2016
Title:: Approve tipping fee for FY16/17 of $64/ton
Submitted By:: Karen Riggs, Community Development
Department:: Solid Waste

Presentation:

No A/V Presentation

Recommendation:

Approve

Document Signatures:

BOS Signature Required

# of ORIGINALS
Submitted for Signature:

NAME
of PRESENTER:

Karen Riggs

TITLE
of PRESENTER:

Community Development Administrator

Docket Number (If applicable):

Mandated Function?:

Not Mandated

Source of Mandate
or Basis for Support?:

Information

Agenda Item Text:

Adopt Resolution 16-23 to approve the Solid Waste tipping fee of $64/ton for Fiscal Year 2016/2017 as recommended by the Rate Review and Advisory Board in May 2016.

Background:

The Rate Review and Advisory Board (RRAB) is made up of the member cities in Cochise County who are parties to the Solid Waste IGA along with the County. The members are: County, Sierra Vista, Bisbee, Douglas, Willcox and Benson. The RRAB officially recommended in May of this year by a 3-1 vote to increase the tipping fee starting in FY 17 to $64/ton (Bisbee, Sierra Vista, Cochise County in favor; Douglas opposed). The Board held a joint work session with the RRAB in June. City of Benson who was not present at the May RRAB meeting was at the joint work session and their City Manager indicated that they would support increasing the tipping fee to $64. Before the end of the work session Douglas too indicated that they could support $64/ton. If a RRAB vote were taken at that time, unofficially the vote would have been 5-0 in favor of raising the tipping fee to $64. Willcox did not attend either the RRAB or the joint work session so did not vote.

The rate for FY 14/15 was $55.00. In FY 14/15 the RRAB recommended and the Board approved rates of $57.75 in FY 15/16 and $60.50 in FY 16/17. However essential costs were not included in those analyses, such as transfer station capitalization and fully funding Cell 5 development. Solid Waste undertook an internal update of an operational efficiency report done by an outside consultant two years ago. Our careful and extensive analysis supported the rate increase to $64/ton in FY 16/17 and the RRAB supported that recommendation. Including the additional necessary costs shows that a rate of $60.50 for this fiscal year will result in an annual loss of almost $100,000 and increased rates in the future over a rate of $64/ton.

The department recommends the Board approve a tipping fee of $64/ton for FY16/17.

Department's Next Steps (if approved):

The department will undertake the appropriate public notice for a fee increase as well as notice to our customers at each transfer station and implement the new fee upon completion of such notice.

Impact of NOT Approving/Alternatives:

The tipping fee has already been approved at $60.50, requiring less public notice than a new fee. But the $60.50 fee will result in a continued annual loss of the system.

To BOS Staff: Document Disposition/Follow-Up:

Record resolution. Return a copy to Solid Waste. Department staff will work with BOS staff to implement proper public notice of the new fee.

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