#3 Public hearing and action to increase landfill fees (File Ord. #2011-475)
DEPARTMENT OF PUBLIC WORKS MEMORANDUM
February 18, 2011
TO: City Council
FROM: John Whitcomb, Operations Director
SUBJECT: SECOND READING, PUBLIC HEARING AND ACTION ON A
PROPOSED ORDINANCE AMENDING THE CITY’S SOLID WASTE
ORDINANCE TO INCREASE SANITARY LANDFILL FEES (File
Ordinance 2011-475)
Additional update is included in this memorandum. In the version of this
memorandum dated February 11, 2011, the figures of $1 million and $1.2 million
contained in the second paragraph under the Recommendation section were
transposed and are now corrected. See highlighted figures.
Summary
File Ordinance 2011- 475 amends Janesville General Ordinance 8.64 (Solid Waste and
Recycling). Specifically, the proposed Ordinance increases the tipping fee at the
Sanitary Landfill, from the current rate of $30.00 per ton to $33.00 per ton, effective
March 1, 2011. Per vehicle disposal rates are increased proportionally. The increase is
necessary based upon 2011 estimated landfill expenditure and tonnage projections, and
accounts for recent significant changes in the regional waste disposal marketplace.
Background
As part of development of the 2011 budget, and after two Council study sessions
focusing on Sanitation Fund finances and operations, the Council implemented a
residential trash collection and disposal fee, and authorized one year waste disposal
contract extensions with three of four waste haulers the City had under contract. All
contracts were set to expire at the end of 2010. The goal in extending these contracts
was to maintain then current waste flows to facilitate permanent closure of a portion of
the landfill in 2011, which would help reduce offsite odor migration. Council also
directed that staff attempt to reduce waste flows at the landfill beginning in 2012. The
goal here is to ensure the operating landfill and planned first expansion area are able to
provide for disposal through 2045. Under the City’s contract with Janesville Sand &
Gravel, the City cannot access its second planned expansion area until this date.
Since development of the budget, there have been significant changes in the regional
marketplace:
Veolia Environmental Services has purchased the Mallard Ridge landfill in
Delevan, WI.
Veolia has reduced its waste deliveries to the City’s landfill by about half and are
now hauling that waste to their own landfill (10,000 ton reduction from 2010).
Town & Country Sanitation would not agree to a one year contract offer from the
City but has indicated they would agree to a three year contract to deliver a
minimum 30,000 tons through 2013. Town & Country has also agreed to haul
approximately 45,000 tons in 2011 to help minimize the City’s draw-down of
Sanitation Fund balance. In 2011, this is an approximate 15,000 tons reduction
from 2010. The company has further agreed to a 40,000 ton cap on tonnage in
2012 and 2013 to facilitate the overall goal of reducing waste long-term. Town &
Country has indicated they also have a disposal contract with Veolia, though that
contract has no minimum tonnage requirements.
Waste Management would not agree to a one year contract extension with the
City and is reducing its waste deliveries to the City’s landfill, instead hauling that
waste to their own landfill (15,000 ton reduction from 2010).
At this time, it is estimated the landfill will receive approximately 188,000 tons in 2011,
down from the 2010 waste flow of about 228,000 tons. This assumes the City enters
into the proposed three year agreement with Town & Country.
Recommendation
Based upon the reduced waste flows, and also considering savings in operating
expenditures, the landfill gate rate needs to be increased to $33.00 per ton. Again, this
assumes the City enters into a contract with Town & Country Sanitation. Without Town
& Country’s waste, staff is concerned per ton rates will increase to a point that will drive
additional waste from the landfill, and the draw-down of fund balance in 2011 becomes
significantly greater.
All of these changes impact the 2011 Sanitation Fund budget. The budget adopted by
Council provided for expenditures in excess of revenues of $253,364. It was intended
to draw down undesignated Sanitation Fund balance by this amount. The proposed
changes will reduce operating revenue by approximately $1.2 million, and operating
expenditures will be reduced by approximately $1 million. This will result in the
Sanitation Fund balance being drawn down approximately $180,000 more than
budgeted, or a total of approximately $433,000.
It should be noted that this drawdown is not due to the operation of the landfill, but
rather the past practice of having the landfill subsidize solid waste collection and
recycling costs. In 2011 a user fee was implemented for solid waste collection, but this
fee does not cover the entire cost of this program. The projected drawdown roughly
represents the portion of the solid waste collection and disposal program not covered by
the user fee and a portion of the net cost of the entire recycling program.
It is recommended that, following the public hearing, the City Council adopt File
Ordinance 2011- 475. A resolution authorizing the City Manager to enter into a three
year contract with Town & Country Sanitation, as described above, is an item under
New Business on the City Council’s February 28, 2011 regular meeting agenda.
City Manager Recommendation
The City Manager recommends City Council approval to increase the landfill rate to $33
per ton.
cc: Jay Winzenz, Director of Administrative Services/Assistant City Manager
Carl Weber, Director of Public Works
Peter Riggs, Assistant Operations Director
Mandy Bonneville, Solid Waste Manager
ORDINANCE NO. 2011-475
An ordinance amending Chapter 8.64 Solid Waste and Recycling Subsection II,
Section 8.64.150, Fee Schedule.
THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS
FOLLOWS:
SECTION I.
Sections 8.64.150(A), and (B) of the Code of General Ordinances of the
City of Janesville are hereby amended to read as follows:
8.64.150 FEE SCHEDULE
A.
For all materials hauled to the Sanitary Landfill in vehicles other than City
of Janesville owned vehicles, excluding special wastes and wastes used as daily cover,
the fee charged shall be the greater of:
Thirty three dollars and 00/100
Thirty dollars and 00/100 cents ($30.00)
cents ($33.00)
per ton, or
B.
The following applicable minimum fee regardless of the actual weight
deposited:
three dollars and
1. Passenger cars, three dollars and fifty cents ($3.50)
seventy five cents ($3.75);
2. Station wagons, mini-vans and sport utility vehicles, four dollars and
five dollars and 00/100 cents ($5.00);
fifty cents ($4.50)
3. Vans, mid-size pickup trucks and trailers with a capacity of two cubic
eight dollars and 00/100
yards or less, seven dollars and twenty five cents ($7.25)
cents ($8.00);
4. Full size pickup trucks and trailers with a capacity of more than two
eleven dollars and twenty five
cubic yards, ten dollars and twenty five cents ($10.25)
cents ($11.25);
5. All other vehicles and trailers, including those which have been
modified to increase capacity beyond standard capacity, thirty dollars and 00/100 cents
thirty three dollars and 00/100 ($33.00).
($30.00)
SECTION II. This ordinance and its fees shall take effect at 12:00 o’clock
a.m. on March 1, 2011, the public interest, welfare, benefit and good so requiring,
and the Common Council so finding.
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ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Brunner
McDonald
Perrotto
Eric J. Levitt, City Manager
Rashkin
Steeber
ATTEST:
Truman
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
City Attorney Wald Klimczyk
Proposed by: Public Services Director
Prepared by: Public Services Director
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