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At last month’s meeting in
response to lower Construction and Demolition Debris (CD&D)
tonnage and revenue, the Board postponed taking action on
two issues: (1) raising the CD&D tipping fee to $46 per ton,
and (2) award of a contract for CD&D recycling equipment.
During the past month, staff
has reviewed the impact of tipping fees and fuel prices on
CD&D waste deliveries and created several long term
financial scenarios. The scenarios are based on average
tonnage and revenue at past tipping fee levels. The
attached graph “CD&D Average Tons Vs. Average Revenue”
indicates that monthly revenue will be maximized when CD&D
tipping fees are in the $30-$38 per ton range. Currently,
landfill disposal is the only management option so a high
tipping fee in the $45 - $46 range makes sense to conserve
limited landfill space. However, after the recycling
operation is underway, tipping fees will need to be lowered
significantly to increase tonnage and maximize revenue.
As can be seen in the
summary below scenario (A) “no CD&D recycling” maximizes the
life of the landfill but will require significant General
Fund transfers, scenarios (B and C) show that a tipping fee
of $45 or $38 improves economics but has an impact on
landfill life, and (D) a tipping fee roll-back to $35 per
ton when the recycling facility opens has the best long term
financial implications with a relatively minor additional
impact on landfill life. This latter financial projection
(scenario D) is attached.
CD&D
PROJECTION SUMMARY (THROUGH CELL 1)
|
Scenario |
2008
CD&D Tons
|
Landfill
Life |
Number of
Deficit Years
Requiring
GF Transfers
|
Greatest
Single Year
Deficit |
Landfill
Fund
Balance |
|
(A) No CD&D Recycling
|
0 |
2020 |
13 |
-$8,079,000 |
-$41,800,000 |
|
|
|
|
|
|
|
|
(B) CD&D Tipping Fees @ $45 per ton
|
85,600 |
2017 |
5 |
-$4,665,000 |
$2,164,000 |
|
|
|
|
|
|
|
|
(C) CD&D Tipping Fees @ $38 per ton
|
110,500 |
2015 |
3 |
-$4,289,000 |
$5,962,000 |
|
|
|
|
|
|
|
|
(D) CD&D Tipping Fees @ $35-$45 per ton
|
134,286 |
2014 |
2 |
-$3,744,000 |
$13,625,000 |
Notes:
1.
2008 CD&D Tons: Estimate based on required tipping fees
2.
Landfill Life: Through Cell 1 only
3.
Greatest Single Year Deficit: Great difference between
Beginning & End of Year Fund Balance
4.
Landfill Fund Balance: Through Cell 1 only; assumes no
General Fund Transfers
In addition to the provided
attachments, staff has completed landfill volume tables at
differing CD&D tonnages, evaluated potential tonnage and
revenue from CD&D recycling activities, and updated both
CD&D operating and capital budgets. This information has
been incorporated into the current financial projections,
and will be available at the Work Session.
Based on the above work, its
recommended that (a) the required CD&D processing equipment
be procured to allow sorting and recycling of the delivered
waste stream, (b) construction activities proceed in a
timely manner, (c) the required mobile equipment
(excavators, rubber tire loaders, roll-off truck,
containers) be procured, and (d) the needed equipment
improvements proceed in the recycle building to allow more
rapid sorting and baling of the increased tonnage.
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