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Home My WebLink AboutMarch 26, 2025 PresentationWELCOME 1 WHAT are we doing HERE? 2 PUBLIC WORKS STAFF 3 Should a “Capital surcharge” be added to the current tipping fee for garbage disposal at the transfer station in order to pay for needed facility improvements? 4 Should residential recycling services be privatized beginning April 1, 2026 with service provided through a curbside collection program and with payment for service made directly between the customer and service provider? 5 Should and additional $6.00 be added to the current tipping fee for garbage service to fund the transport of recycled glass to Oregon? 6 7 TRANSFER STATION CAPITAL NEEDS 8 WHAT’S AN ENTERPRISE FUND? 9 Enterprise Funds are used to finance operations in a manner similar to a private business, where the costs of providing goods or services to the general public are financed primarily through user charges. 10 County Run 11 99.6% of revenue is from fees charged for garbage disposal 12 0% of revenue is from taxes 13 $0.00 AMOUNT RECEIVED FROM COUNTY GENERAL FUND SINCE 1993 14 Solid Waste is A TRIPLE BOTTOM LINE BUSINESS in all but name 15 WHAT’S A TRIPLE BOTTOM LINE BUSINESS? 16 “a SUSTAINABILITY FRAMEWORK THAT MEASURES A BUSINESS’S SUCCESS IN THREE KEY AREAS: Profit, people and planet” Harvard business school 17 FINANCIAL HEALTH (Profit) ENVIRONMENTAL STEWARDSHIP (Planet) SOCIAL RESPONSIBILITY (People) Lots Lots Not enough 18 Chapter 1: Goals “maintain an economically responsible program for solid waste management that recognizes the needs for environmental protection and service to the citizens of the County” 19 214 PAGES 20 ONE MENTION OF MAINTAINING FINANCIAL HEALTH 21 Chapter 1: Goals “maintain an economically responsible program for solid waste management that recognizes the needs for environmental protection and service to the citizens of the County” 22 23 SWAC Meeting 24 FINANCIAL HEALTH ENVIRONMENTAL STEWARDSHIP SOCIAL RESPONSIBILITY EQUILIBRIUM 25 26 FINANCIAL HEALTH ENVIRONMENTAL STEWARDSHIP SOCIAL RESPONSIBILITY Maintain Fee at CPI Self-financed: No General Fund or other tax revenue Cash basis: 0 debt service Employment for IDD clients Low-income discount Moving toward low-income discount for curbside Fees close to or below regional average DIY facility repairs 27 FINANCIAL HEALTH ENVIRONMENTAL STEWARDSHIP SOCIAL RESPONSIBILITY A- 28 FINANCIAL HEALTH ENVIRONMENTAL STEWARDSHIP SOCIAL RESPONSIBILITY +50% recycling rate Level of service = to King County Close to State organics diversion goal Financial support of Public Health’s illegal dumping program Lowest refrigerated appliance rate in region HHW collection events and Kitsap County ILA 302 of 303 days of scheduled operation 29 30 FINANCIAL HEALTH ENVIRONMENTAL STEWARDSHIP SOCIAL RESPONSIBILITY A- 31 FINANCIAL HEALTH: SHORT ON GOAL 32 FINANCIAL HEALTH 2023 Fee Schedule Revisions Resolution No. 28 23 Two Fund Benchmarks: “a projected year end reserved capital fund balance of 25 percent of current capital replacement value in equipment and buildings, excluding any GO bond funds” “a projected year end reserved operations fund balance of 25 percent of the projected annual total solid waste operation expenditures” 33 FINANCIAL HEALTH ENVIRONMENTAL STEWARDSHIP SOCIAL RESPONSIBILITY Operations Fund balance = +$500K over target balance on January 1, 2025 but 2025 projected revenue below projected expenditures __________________ Equipment Reserve Fund balance = $1.8M under target balance Equipment Reserve Fund balance = $3.6M under Capital repair/replacement needs 34 35 FINANCIAL HEALTH ENVIRONMENTAL STEWARDSHIP SOCIAL RESPONSIBILITY D 36 37 FINANCIAL HEALTH ENVIRONMENTAL STEWARDSHIP SOCIAL RESPONSIBILITY F 38 39 Scales $650,000 From 3/6/25 inspection report: “Scales built in 1986. Main I-beams have corrosion into web and flanges. Corrosion depth is not repairable or fixed with sandblasting and painting or any type of welding repair. Cross members have major corrosion and some have bent downward. Should be replaced in very near future.” 40 Tarping Rack $150,000 41 Upper Lot Asphalt Repairs $100,000 42 Lower Lot Asphalt $150,000 43 Tipping floor building roof $566,000 Recycling building roof $594,000 44 Recycling Center Loading Dock $75,000 45 Recycling Center Stormwater Drain $75,000 46 Tipping Floor Leachate Drain $100,000 47 Crane Replacement $1,080,000 REMOVE 48 Back-up Generators $100,000 49 50 $3,640,000 cup of Joe 51 52 Number of Analysts in Solid Waste Division: 1 53 Equipment Operator SWAC Liaison Bidding Contract Development/Management Budget Forecasting Closed Landfill Groundwater Monitoring Permit Compliance Grant Writing/Management Webpage Updates Organics Management Recruitment/Staff Development Facility Replacement Project Cost Estimating Capital Project Management Unfunded Mandates 54 How Do we pay for it all? Who PAYS FOR IT? 55 Here’s the plan… 56 How Do we pay for it all? 57 “CAPITAL SURCHARGE” 58 Tipping fee increase dedicated to Capital Fund 59 60 who pays for iT? 61 SCALE CUSTOMERS Low-Income Discount Self-haul less than 240 pounds G-Cert Hauler Yard Debris Self-haul over 240 pounds 62 SCALE CUSTOMERS Low-Income Discount Self-haul less than 240 pounds G-Cert Hauler Yard Debris Self-haul over 240 pounds 63 How would it work? BoCC adopts new per ton fee which includes a Capital Surcharge and lowers minimum fee weight to align with new fee In 4th quarter of each year Public Works estimates the year-end total transfer station tonnage, multiplies by the Capital Surcharge value, and moves that amount out of Operations Reserves and into Capital Reserves 64 65 Should a “Capital surcharge” be added to the current tipping fee for garbage disposal at the transfer station in order to pay for needed facility improvements? 66 RECYCLING PROGRAM 67 Why is it subsidized? How much is it subsidized? Should it be subsidized? 68 Why is it subsidized? 69 Oscar DeCorti dba Iron Eyes Cody 70 How much is it subsidized? 71 July 1, 2023 – December 31, 2024 actuals + 6-month forecast based on 2024 actuals 72 TIPPING FEE SUBSIDY = ANNUAL TONS / PROGRAM COSTS 73 Should it be subsidized? 74 75 76 77 78 79 Chapter 1 of the SWMP, under GOALS OF THE SWMP, provides a hierarchy of landfill diversion activities and lists in descending order of priority, a solid waste management system that: • Reduces the waste stream • Promotes reuse • Promotes recycling 80 VALUE STATEMENT 81 SPENDING ALLOCATIONS 82 2024 Spending Allocations 83 2022 CONTAMINATION RATES 84 85 TIPPING FEE SUBSIDY PRIVITIZE 86 TIPPING FEE SUBSIDY PRIVATIZE 87 Program Annual Cost Amount of Tipping Fee Solid Waste Education $72,073 $3.04 Low-Income Discount $53,000 $2.23 IDD Employment $63,444 $2.67 Transfer to Public Health $24,000 $1.01 Quilcene Drop Box (Loss) $40,000 $1.69 HHW Collection Events $60,000 $2.53 Artist in Residency Program $200 $0.01 Total Cost Savings $312,717 $13.18 88 TIPPING FEE SUBSIDY PRIVATIZE 89 90 91 92 93 94 95 96 97 $31.07 Transfer Station Customer Survey 2025 WUTC Rate $31.93 98 99 100 Should residential recycling services be privatized beginning April 1, 2026 with service provided through a curbside collection program and payment for service made directly between the service provider? 101 RECYCLED GLASS 102 103 104 105 Recycle $97.25 per ton Landfill $81.34 per ton 106 $6.00 107 108 Should $6.00 be added to the current tipping fee for garbage service to fund the transport of recycled glass to Oregon? 109 110 2024 TRANSFER STATION SCALE TRANSACTIONS BY CUSTOMER TYPE 111 112