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Home My WebLink AboutRecycling Cost Share Memo v.2 AGENDA ITEM SUMMARY JOINT MEETING DATE: January 19,2016 AGENDA ITEM TITLE: Recycling Centers Cost Share Equity Discussion STAFF RESPONSIBLE: Cathy Hall, Solid Waste Manager Brian Pettet,Public Works Director ISSUE STATEMENT: Partnerships to establish recycling drop off sites in municipalities have developed organically over the past 15 years, leading to inequities between how the County supports recycling drop off sites in municipalities. The County has coordinated with staff from the City of Aspen,Town of Basalt, and Town of Snowmass Village to develop a funding recommendation that is simple, consistent and equitable for all jurisdictions. BACKGROUND: Pitkin County has provided collection service to public drop-off recycling centers for well over 15 years. The County entered into a contract with Waste Management in early 2014 to privatize collection at these Recycling Centers resulting in a cost savings for the County. The estimated cost to service these centers was approximately$350,000 annually. Privatization has increased collection efficiency and has resulted in cost savings for the County. Since the conversion to single stream collection,there has been an approximately 30%increase in recycling materials deposited at the recycling centers. The global cost of recycling has increased in recent years as the recyclable commodity markets have seen a significant downturn. This cost is exacerbated in Pitkin County because of the distance required to haul recyclables to sorting centers and ultimately to processing and manufacturing facilities. The costs for processing and handling are passed on to the County through our contracted rates. Table 1 shows current costs per ton to manage recycling at the County recycling centers: Table 1. Recycling Center Costs Recycling Center 2015 Recycling Cost to Manage Cost per Ton Tonnage Rio Grande 1,177 tons $194,174 $165/ton SWC 1,232 tons $89,882 $73/ton Redstone 22 tons $5,238 $238/ton Total 2,431 tons $289,294 N/A The County currently covers all costs to manage and service the Rio Grande, Solid Waste Center(SWC), and Redstone Recycling Centers out of the SWC enterprise fund. No County tax or general fund dollars are used in the cost associated with managing the Recycling Centers. Aspen The County provides staffing, outside of the contract,to regularly clean the Rio Grande Center,pick up illegal dumping, and service the battery drop off bin. The City of Aspen also provides staff to monitor the center daily,prosecute illegal dumping, clean and maintain the center. Both the County and City of Aspen have ordinances in regard to recycling collection. The County and City of Aspen codes require haulers to charge based on the amount of materials hauled away to encourage resource recovery and recycling. The County's Waste Ordinance states that all waste haulers must offer curbside recycling services; however, it is up to the customer on whether or not they enter into a recycling collection contract with the hauler and recycling services are provided at an additional charge to trash services. The City's Waste Ordinance requires recycling services be included in the base rate for trash service, so the customer is paying for recycling whether they utilize the service or not. The City's ordinance also requires haulers to submit bi-annual reports on the amount of trash and recycling hauled out of Aspen. The County's ordinance requires haulers, licensed in Pitkin County,to bring their materials to the Solid Waste Center,but there is no reporting requirement for the amount of material being transported. Basalt The Town of Basalt opted to close the Basalt Recycling Center in February 2014 and divert recycling to Waste Management's public recycling drop-off at its Willits recycling transfer station. Waste Management opened the public drop-off at the Willits' transfer station in anticipation of Basalt's closing. During the Summer of 2015 Waste Management approached the Town of Basalt and the County for$46,666 in annual funding to keep the Willits public recycling drop off open. Basalt has been covering the monthly cost of operations since September 2015. The Town is planning to cover the costs for 90 additional days,through April 2016. Basalt has requested the County take on the cost for the Willits' recycling drop-off after April 2016. The Town of Basalt does not have a recycling ordinance. The Town's Green Team will be convening to discuss developing a waste and recycling ordinance recommendation. Snowmass The Town of Snowmass Village(TOSV)provides recycling and trash service. In 2015 TOSV brought 729 tons of recycling, at$25/ton tipping fee,to the SWC drop off. In 2015 Snowmass paid$18,225 for recycling drop-off at the SWC, and incurred$130,000 in recycling hauling costs. TOSV collected$35,000 in recycling revenues through collection contracts. Town of Snowmass Village provides trash and recycling service at six sites throughout the community. Residents are required to take trash and recycling to these centers. Curbside collection is offered to 120 homes. Table 2 shows the distribution of recycling costs between the county and municipalities: Table 2.Recycling Center 2015 Cost Share Cost City of Aspen/ Town of Basalt/ Town of Snowmass Breakdown Rio Grande Willits Village Cost to Manage Recycling $194,174 $42,000^ $183,217 Municipality's Cost Share $0 $14,000# $113,224* County's Cost Share $194,174 $0 $34,992 County/Municipality% Cost 100/0% 0/100% 20/80% Share Ratio ^This is a discounted rate for the Willits Center management,Waste Management is requesting$46,666 for 2016. #Basalt has been paying$3,300/month beginning in September 2015. Basalt is currently on a month to month contract. *Amount shows a deduction in$35,000 in TOSV recycling collection revenues. Recycling Center Surveys In an effort to understand the demographics of recycling center users the County, City of Aspen and Town of Basalt staff conducted user surveys. An informal survey was conducted for five days in July 2014 to determine the demography of Rio Grande recyclers. Responses to this survey suggest that 58% of people coming into the Rio Grande Center reside within COA limits; 75%of users were residential,and 25%were commercial. 89% of the commercial users were entities in Aspen and brought in significantly more material per load than did residential users. A copy of the recycling survey results are included in Attachment 1. A recycling user survey was conducted at Waste Management's Willits transfer station over the course of two weeks in July 2015. Residents were asked to provide what city,town or county they reside in,whether or not they had trash service at their home and if recycling was offered. The following provides a demographic breakdown of the Willits' facility use: 45%Basalt/Willits, 19%Garfield County, 19%Eagle County, 15% Pitkin County, and 1%other. The Willits facility does not allow commercial users to recycle at the site. A copy of the full survey results are included in Attachment 2. RECOMMENDATIONS Staff are recommending a 50/50 cost share for managing recycling at each of the municipalities. Table 3 is a cost summary for sharing the recycling costs. Table 3.Proposed Cost Share Amounts Rio Grande Basalt/Willits TOSV Municipality Share $97,087 $23,333 $56,612 County Share $97,087 $23,333 $56,612* Total $194,174 $46,666 $113,224 *The County's share includes the$34,992 in subsidized recycling hauling costs. Staff also are recommending taking measures to control costs at the recycling centers. These measures include restricting commercial users from the Rio Grande Center and to develop media campaigns directing residents and commercial businesses to utilize curbside and business recycling collection. SUMMARY Discussions between County, City and Town staff indicated all of the organizations would like to improve the amount of material diverted from the landfill. As a result,the BOCC and City Council approved a waste assessment study and plan to determine the current recycling rates, areas for increased diversion improvement, and developing a plan to establish and meet diversion goals. COA and Pitkin County are conducting a joint waste diversion study and development of waste diversion goals for the Roaring Fork Valley. A waste diversion plan will consist of determining baseline waste diversion data,creating diversion goals, and setting a timeline to meet those goals. Preparation of a waste diversion plan will take approximately two years to complete, and will be done in two phases. The first phase consists of data collection and stakeholder meetings. The second phase will be development of waste diversion goals and a plan to meet those objectives. Staff will return to present at the next scheduled BOCC/City of Aspen Council joint meeting on the zero waste/waste diversion Phase I results. LINK TO STRATEGIC PLAN: Conserve natural resources and environment of the Flourishing Natural and Built Environment Core Focus Area of the Pitkin County Strategic Plan. KEY DISCUSSION ITEMS: Does the BOCC support an equitable cost share arrangement for recycling center management between the municipalities? RECOMMENDED BOCC ACTION: Provide Staff with direction on moving forward with cost sharing arrangements and intergovernmental agreements for recycling center cost sharing. Provide staff direction on implementing cost saving measures for recycling center management. Attachment 1 Rio Grande Recycling Survey Results 2014- Rio Grande Survey Data Total Surveys=243 Rio Grande Users: Within Aspen = 138 (57%) Outside Aspen = 88 (36%) No Answer= 17 (7%) Rio Grande Users ,111 ■Within Aspen ■Outside Aspen ■ No Answer Outside Aspen Users: Pitco Users= 61 (69%) Basalt Users= 11 (13%) Snowmass Users= 2 (2%) No Answer= 14 (16%) Residential Users: Within Aspen = 103 (55%) Outside Aspen = 83 (45%) Total Residential Users= 186 Residential Users ■Within Aspen ■Outside Aspen Commercial Users: Within Aspen = 27 (89%) Outside Aspen = 17 (11%) Total Commercial Users =44 Commercial Users ‘1, ■Within Aspen ■Outside Aspen Rio Grande User Type: Residential = 186 (81%) Commercial =44 (19%) Rio Grande User Type 1, ■ Residential ■Commercial Attachment 2 Willits Recycling Survey Results Willits Recycle Center User's County 120 100 80 60 40 20 0 I I I Unknown Eagle Garfield Gunnison Pitkin Willits Recycle Center User's County—Unknown Pitkin 35% Eagle 44% Garfield Gunnison 20% 0% Willits Recycle Frequency of Use 120 100 80 60 40 20 0 Bi-Weekly Daily Monthly Once Rarely Weekly Willits Recycle Frequency of Use ■Bi-Weekly ■Daily ■Monthly ■Once ■Rarely ■Weekly Willits Recycle Center User Jurisdiction 120 100 80 60 40 20 0 Aspen Basalt/Willits Rural Eagle Rural Pitkin Rural Other Garfield Willits Recycle Center User Jurisdiction •Aspen •Basalt/Willits Rural Eagle • Rural Pitkin •Rural Garfield •Other Willits Recycle Center User's Hauler 80 70 60 50 40 30 20 I 1 0 ar � ,cy tN a�� Q E o� J�Q �� yQe' ` Ks�Nk- e J� c��J�� o e 6a�� J e c �e Willits Recycle Center User's Hauler •Aspen Trash •Unknown •Evergreen Events S ■Intermountain •MRI •None id •Valley Garbage •VIP •WM Attachment 3 Solid Waste Center 5-Year Budget Plan Pitkin County Solid Waste Center Fund 2016 Budget&Five-Year Plan Projected 2015 Initial 2015 Budget Savings& 2015 Year-End Budget Adjustments Overages Estimate 2016 Budget 2017 Budget 2018 Budget 2019 Budget 2020 Budget d Waste Center Revenues Service Charges 4,786,575 887,500 5,674,075 5,203,800 5,318,284 5,435,286 5,560,298 5,688,185 Interest Income 26,060 26,060 54,800 92,740 161,110 192,810 204,250 Other Revenues 4,500 4,500 24,500 25,039 25,590 26,179 26,781 Grants - 326,024 326,024 - _ - - - Sale of Fixed Assets 95,000 95,000 - 49,056 - - 43,600 Total Revenues 4,912,135 326,024 887,500 6,125,659 5,283,100 5,485,119L 5,621,986 5,779,287 5,962,816 Esenditures Labor Wages and Retirement Contributions 679,288 (20,742) (20,000) 638,546 891,322 922,198 959,086 997,449 1,037,347 Merit Bonus - - 18,229 - - - - Overtime 10,000 10,000 15,000 15,600 16,224 16,873 17,548 Health Insurance 197,055 11,001 (80,000) 128,056 214,408 225,128 240,887 257,749 275,791 Workers'Compensation Insurance 30,068 30,068 31,849 32,645 _ 33,363 34,097 34,847 Education and Training 22,350 5,000 27,350 33,500 34,338 35,093 35,865 36,654 Services and Supplies 1,468,281 27,840 25,000 1,521,121 857,800 879,245 898,588 918,357 938,561 Landfill Contract 1,010,700 1,010,700 168,450 - - - - Aggregate Processing 650,000 650,000 500,000 512,500 523,775 535,298 547,075 Recycling Contract - 300,000 307,500 314,265 321,179 328,245 Grant Projects - 450,426 450,426 - - - - - Cost Centers(Admin Fee,Risk,Radio) 225,103 225,103 282,141 289,195 295,557 302,059 308,704 Fleet Cost Center 155,145 155,145 435,339 461,459 489,147 518,496 549,606 Total Expenditures 4,447,990 473,525 (75,000) 4,846,515 3,748,038 3,679,808 3,805,985 3,937,422 4,074,378 Operating Income Excluding Depreciation 464,145 (147,501) 962,500 1,279,144 1,535,062 1,805,311 1,816,001 1,841,865 1,888,438 Capital Projects and Replacements Vehicles 625,000 3,152..009 (371,000) 3,406,009 - 240,000 - - 200,000 Facilities - - - - - - - Office Equipment - - - - - - - Computer Equipment - - 9,300 - - 7,483 - Radio Tech 2,400 2,400 10,400 8,098 - 2,673 - Other Dept'I Equipment and Capital 19,630 85,000 104,630 20,000 41,000 39,130 6,000 10,000 Waste Water Treatment System - 524,926 524,926 - - - -Total for Capital and Replacements 647,030 3,761,935 (371,000) 4,037,965 39,700 289,098 39,130 16,156 210,000 Value of Inventory 377,136 Annual Surplus/(Deficit) (182,885) (3,909,436) 1,333,500 (2,381,685) 1,495,362 1,516,213 1,776,871 1,825,709 1,678,438 Additions to Post-Closure Reserve 30,742 31,664 32,614 33,593 34,600 Fund Balance 3,141,490 759,805 2,224,425 3,708,974 5,453,230 7,245,347 8,889,184 Ending Post-Closure Reserve 3,074,158 3,104,900 3,136,564 3,169,178 3,202,771 3,237,371 Adjusted Available Fund Balance 3,833,963 5,329,325 6,845,538 8,622,409 10,448,118 12,126,556