The desired outcome of adopting a proposed Solid Waste rate change is to ensure our City of Flagstaff Solid Waste operation is supported by a revenue base to provide our community with the operational, capital, and debt service obligation resources to meet our Solid Waste future operational needs.

Executive Summary: The last Solid Waste rate adjustment was in 2008. Since then, the number of collection routes and demand for services, such as bulk pickup, have increased significantly. Additionally, staff has identified future capital projects with costs of approximately $23 million, as well as $8.3 million in fleet capital. These projects are a combination of regulatory compliance, as well as Landfill and Collection fleet replacement costs needed to remain operational.   In order to achieve the diversion goals established in the Rethink Waste Plan, costs associated with implementing a volumetric pricing program and dedicated funding for education outreach, and marketing have been incorporated into the model.    In order to cover these costs, meet minimum required fund balance, and achieve waste diversion goals, staff recommends the following increase to rates:   Residential Trash and Recycling Service: 7.5% increase each year for 5 years. Landfill Fees: One-time 3% increase Commercial Trash and Recycling Service: One-time 3% increase Hoist and Haul Service: One-time 3% increase

The proposed rate increases will allow for the Solid Waste fund to remain above its minimum required fund balance.   The residential rate increase will have the following impact to the average monthly trash bill:     Year 1 Year 2 Year 3 Year 4 Year 5 Base Price  $    17.73  $    19.06  $    20.49  $    22.03  $      23.68 Rate Increase  $      1.33  $      1.43  $      1.54  $      1.65  $        1.78 New Rate Total  $    19.06  $    20.49  $    22.03  $    23.68  $      25.45   The one-time increase to commercial rates can be seen below for the cost to service a 4-yard dumpster one per week:     4 Yard Trash Dumpster 4 Yard Recycling Dumpster Base Price 73.78 46.09 Rate Increase 2.21 1.38 New Rate Total 75.99 47.47   The landfill tipping fee will see a one-time 3% increase, raising the rate from $44.42 per ton to $45.75.   The most critical items that this rate increase would fund  are listed below:   With approximately 40 years of available airspace remaining at Cinder Lake Landfill (CLL), the facility is the only regional landfill within the County. Although CLL is a favorable asset to the City, the facility will be required to absorb considerable costs for the future landfill gas collection infrastructure. New Environmental Protection Agency (EPA) rules could impact CLL by as much as $19 million ($11 million is currently set aside). Recent passage of new air quality rules by the EPA may require installation of landfill gas controls at CLL. Non-compliance could result in daily fines. CLL does not currently have an adequate three-phase power source to power and operate a landfill gas control system. Design and construction for the installation of this system may be required as soon as 2023. The Landfill Road is in need of future attention and repair.  The cost to improve the road infrastructure to safely accommodate on-going operations is upwards of approximately $7 million with construction potentially beginning in 2023. Implementation of a volumetric pricing program, also known as pay-as-you-throw or variable rate pricing, charges residential customers for their municipal solid waste based on volume. This creates a direct economic incentive to recycle more and to generate less waste. Volumetric pricing supports the City of Flagstaff’s goal to achieve a 90% diversion rate. The projected one-time cost of implementing this program is $300,000.  To achieve success in both the program and goal, efforts must be supported by adequate staffing and a robust outreach and education. Built into this rate structure is $100,000 ongoing for outreach and education efforts, as well as the Zero Waste Coordinator position ($55,000). CLL currently operates cells A thru C, which are estimated to last another 5-7 years depending on growth rates and solid waste diversion rates. Expanding operations to cells D and E (136 acres) will require the City to adhere to state and federal landfill requirements including a cell liner, at a cost of approximately $5.5 million.