8.
City Council Work Session
- Meeting Date:
- 11/27/2018
- From:
- Todd Hanson, Solid Waste Section Director
- Department:
- Public Works
Co-Submitter:
Dylan Lenzen
TITLE:
Sustainable Solid Waste Fund
Staff will provide additional information on the Solid Waste Fund and clarify funding needs. Additional Solid Waste rate proposal scenarios will be provided for consideration.
DESIRED OUTCOME:
Provide direction to staff on which rate proposal option to bring forward to City Council consideration at the December 4th meeting.
EXECUTIVE SUMMARY:
| Executive Summary: The last Solid Waste rate adjustment was in 2008. Since then, the number of collection routes and demand for services, such as bulky pickup have increased significantly. In addition there are multiple capital projects that need to be addressed, with costs that are not covered by the current rate structure. These projects are outlined in the table below:
Funding these projects would allow the Solid Waste Section to increase efficiency, better serve Flagstaff residents, meet state and federal requirements, and support multiple Council goals. For example, implementing landfill gas capture on the current operating cell would allow the City to reduce greenhouse gas emissions generated by the landfill, which make up 11% of Flagstaff’s total emissions. Additionally, by bringing water infrastructure to the landfill, the City would have the capacity to compost food waste and other organics on-site for which a water supply is necessary. Included in these proposed projects is volumetric pricing and recycling outreach funding, which would help residents recycle more and better material. In order to fund these projects the following rate increases are proposed: Option 1 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 Staff has also prepared additional rate increase options that propose smaller increases to residential trash and recycling services. Option 2 Residential Trash and Recycling Service: 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 Option 3 Residential Trash and Recycling Service: 3% increase each year for 3 years. Landfill Fees: One-time 3% increase Commercial Trash and Recycling Service: One-time 3% increase Hoist and Haul Service: One-time 3% increase |
INFORMATION:
| The proposed residential rate options will have the following impacts to the average monthly trash bill: Option 1: 7.5% each year for 5 years
Option 2: 5% each year for 5 years
Option 3: 3% each year for 5 years
The one-time increase to commercial rates can be seen below for the cost to service a 4-yard dumpster one per week:
The landfill tipping fee will see a one-time 3% increase, raising the rate from $44.42 per ton to $45.75. In Option 2 (5% increase), some projects are eliminated or delayed. These changes are reflected in the table below. Option 2 Capital Impacts
Under Option 2, capturing the landfill gas on the current operating cell would not be possible, increasing greenhouse gas emissions compared to Option 1. By eliminating gas collection, the post-closure monitoring and maintenance costs for that cell are reduced from $11 million to $5 million. Option 2 also makes the assumption that a trend of reduced tonnage delivered to the landfill will continue, which would delay the construction of the new operating cell by two years. Costs would also be delayed by installing the landfill gas capture system for the new cell when it is necessary as opposed to when it is initially constructed. In order to propose Option 3 (3% increase) the following changes were made to the proposed capital projects: Option 3 Capital Impacts
After careful consideration and in-depth discussion Option 3 is not recommended by staff for multiple reasons. First, the costs of fleet replacement are reduced by assuming a life of fleet vehicles longer than historical trends. Additionally, landfill operations will utilize an additional operating cell to delay the construction of the new cell. Currently, this additional cell acts as a reserve disposal location in the event of emergencies, such as a landfill fire, slope failure, or natural disaster on the current operating cell. Using this reserve cell after the closure of the current operating cell would mean that there is no location to dispose of material in the event of an emergency. Doing so delays other costs associated with the new cell, including the landfill gas collection system and the need for three-phase power. This option also reduces costs by removing water infrastructure from planned projects. This would eliminate the possibility for a composting operation at the landfill, as well as the ability to mine economically valuable material in future operating cells. In all of these options, the Solid Waste Section is able to implement a volumetric pricing program, as well as increase outreach spending and staffing. This programming will increase the amount of material diverted from the landfill, extending its life, and further delaying costly capital projects. |