WORK SESSION AGENDA REQUEST

Sponsor:

Board of Supervisors Meeting Date: 

Raymond E. Graham, Chairman, Cedar Run District Supervisor

July 13, 2006

Staff Lead:

Department: 

Anthony I. Hooper, Deputy County Administrator

County Administration

Topic: 

A Work Session to Discuss Landfill Tipping Fees

Topic Description:

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. 

 

Requested Action of the Board of Supervisors: 

Conduct a work session.

Financial Impacts Analysis:

See attached.

Identify any other Departments, Organizations or Individuals that would be affected by this request:

Environmental Services
Finance Department

Attachments: 

1.      CD&D Graphs

2.      CD&D Financial Plan

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