#4 Discussion on projected 2012 landfill waste flows and direction to staff
DEPARTMENT OF PUBLIC WORKS MEMORANDUM
June 15, 2012
TO: City Council
FROM: John Whitcomb, Operations Director
SUBJECT: 2012 Projected Landfill Tonnage and Revenue Shortfall
Summary
Waste hauling practices of several area companies have changed significantly in
2012. These changes are expected to result in a net loss of tons disposed in the
landfill, as compared to the amount budgeted in 2012. Associated revenue
losses result in an estimated reduction in Sanitation Fund unreserved balance of
$987,402, as compared to the budgeted reduction of $708,319.
The City has a waste disposal contract with Town & Country Sanitation
(Boscobel, WI) which includes a provision capping the amount of waste the
company can deposit in the City’s landfill at 40,000 tons in each 2012 and 2013.
The contract also includes language authorizing the City Manager to increase
this cap. The company has indicated it could deliver approximately 50,000 tons
of waste in 2012 and a similar or greater amount in 2013. This additional
reduction
tonnage from Town & Country would result in an estimated in Fund
$787,902reduction $708,319.
balance of , as compared to the budgeted of
Staff Recommendation
Staff recommends that the City Council authorize the City Manager to eliminate
the 40,000 ton cap on the amount of waste Town & Country Sanitation may
dispose of in the City’s landfill in both 2012 and 2013. The company has been a
good partner with the City for a number of years, and staff is confident it can work
with the company to appropriately balance the company’s waste flows into the
landfill in both years.
Staff does not recommend increasing landfill tipping fees to attempt to generate
additional revenue. Doing so could result in additional losses in tonnage.
Recommended Motion
Move to authorize the City Manager to exercise an existing provision in the City’s
contract with Town & Country Sanitation, amending the 40,000 ton maximum
landfill tonnage provision to 80,000 ton maximum landfill tonnage provision in
2012 and 2013.
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City Manager Recommendation
The City Manager recommends amending the 40,000 ton cap to 80,000 ton cap.
Amending the cap will alleviate the City’s immediate fiscal concerns without
compromising the long-term reduction in outside tonnage to the landfill.
Background
Veolia Environmental Services and Waste Management have decreased the
amount of waste they deliver to the City’s landfill below what was anticipated in
the 2012 budget. Another local company, Rock Disposal, has increased its
tonnage, but it is not expected this will fully offset the reduction in tonnage from
the other two companies. Staff estimates the landfill will receive about 157,000
tons of waste in 2012, which is about 17,000 tons less than budgeted.
The table below shows sanitary landfill tonnage, by source:
Sanitary Landfill Tonnage
2012
20112012Current
ActualBudgetEstimate
Town & Country Sanitation
50,517 40,000 40,000
Waste Management
16,331 19,000 11,410
Veolia Environmental Services
10,555 10,000 2,500
Sherman Sanitation
19,615 19,000 19,000
Green County Landfill
16,806 17,000 6,000
City of Janesville Residential
14,667 14,302 15,276
Rock Disposal, Inc.
16,640 20,000 30,000
Cash Customer
13,071 10,000 10,000
John's Disposal Service
8,200 7,000 8,200
Janesville Wastewater Utility
2,840 3,000 182
All other Accounts 15,824 15,600 14,460
Total
185,066 174,902 157,028
The 2012 Sanitation Fund budget includes expenditures in excess of revenue
totaling $708,319. Sanitation Fund unreserved fund balance was to be reduced
by this same amount, leaving a year-end unreserved fund balance of $558,638.
Based upon the current landfill tonnage projections and associated loss of
revenue, the reduction in Sanitation Fund unreserved balance is estimated to be
$987,402, leaving a year-end Fund unreserved balance of $279,555.
Increasing the contractual cap with Town & Country Sanitation and allowing them
to dispose of approximately 50,000 tons of waste in 2012 would result in a
reduction in 2012 Sanitation Fund unreserved balance estimated at $787,902,
leaving a year-end Fund unreserved balance of $479,055.
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The table below illustrates:
Sanitation Fund Income Statement
2012
20122012w/ Added
BudgetEstimatedTons
Landfill Tons 174,902 157,028 167,028
Total Sanitation Fund Revenues$ 7,122,520$ 6,611,070 $ 6,940,570
Total Sanitation Fund Expenditures$ 7,830,839$ 7,598,472 $ 7,728,472
$ (708,319)$ (987,402)$ (787,902)
Fund Revenues Over Expenditures (deficit)
Sanitation Fund Balance January 1$ 2,104,250$ 2,104,250 $ 2,104,250
Sanitation Fund Balance December 31$ 1,395,931$ 1,116,848 $ 1,316,348
Fund Balance Analysis Dec 31
Reserved for Superfund Site$ 837,293$ 837,293$ 837,293
Unreserved Fund Balance$ 558,638$ 279,555$ 479,055
$ 1,395,931$ 1,116,848 $ 1,316,348
Cc: Carl Weber, Director of Public Works
Peter Riggs, Assistant Operations Director
Mandy Bonneville, Solid Waste Manager
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