kitsap county solid waste advisory …...kitsap county solid waste advisory committee city of...

KITSAP COUNTY SOLID WASTE ADVISORY COMMITTEE

City of Bremerton Utilities Building

100 Oyster Bay Ave N Bremerton, WA 98312

January 10, 2018 4:00 PM

AGENDA

APPROVAL OF AGENDA

APPROVAL OF MINUTES

CORRESPONDENCE

KCPW

Election of Officers

Review of By-laws

2018 Work Plan

OVTS/RAGF Rate Study ROUND TABLE DISCUSSION PUBLIC COMMENTS

SOLID WASTE ADVISORY COMMITTEE (SWAC)

MEETING MINUTES

January 10, 2018

Those present: Regional/Cities: City of Bainbridge Island – Diane Landry, City of

Bremerton – Wayne Hamilton, City of Poulsbo – Shannon Wood, North Kitsap –

Douglas Chamberlain, Central Kitsap – John Poppe, South Kitsap – Eric Lenius;

Organics Management: Jeff West; Commercial: Bill Rich, Laura Kneib; Industry: Waste

Management – Laura Moser; Suquamish Tribe – Jaime Lawrence

KCPW SWD: Pat Campbell, John Steinmetz, Barbara Bricker

KPHD: Jan Brower

Those Absent: Regional/Cities: City of Port Orchard – Stephanie Bailey; Agriculture:

Erika Anderson; Industry: Bainbridge Disposal – Heather Church; NAVFAC - Les

Hastings; Port Gamble S’Klallam Tribe - vacant

APPROVAL OF AGENDA – Agenda approved.

APPROVAL OF THE MINUTES – December meeting minutes approved.

CORRESPONDENCE – No correspondence to report.

KCPW

Introduction of New SWAC Members –

Pat introduced the new commercial representative Bill Rich from Kitsap Transit and

alternate Laura Kneib, owner of F.R.O.G. Soap.

Election of Officers – Motion made and seconded to retain Stephanie Bailey as Chairperson and John Poppe as Vice-Chair. All members in favor. Motion carried. Bylaws Reviewed – Pat pointed out minor errors in the current adopted bylaws;

specifically, in Article 2, the number of members was not changed to fifteen when the

agricultural representative was added, though the list of members is correct and does

add up to fifteen; on Page 5, the most recent approval date is not listed. These seem

not to warrant Board approval at this time, but will be noted for inclusion in next revision.

Motion made by Jeff West and second by Eric Lenius to adopt SWAC Bylaws as

presented for 2018. All members in favor. Motion carried.

2018 Work Plan Draft Discussion – An annual work plan is requested by the Board for all advisory boards. Pat identified the following priorities for SWAC discussion:

Carryover from last year:

OVTS/RAGF Rate Structure Recommendations

Formal adoption and implementation of Solid and Hazardous Waste Management Plan

Finalize Disaster Debris Management Plan New this year:

Investigate Plastic Bag Ban

Tours/Meeting Suggestions for 2018:

Tours to Columbia Ridge and JMK

Jeff West mentioned open house and tour of new compost site at Olympic Organics tentatively in April.

Doug suggested a tour of the newly remodeled King County Transfer Station in downtown Seattle.

Diane suggested attending WSRA - WRED events.

Doug suggested a representative from a jurisdiction where the plastic bag ban has been implemented to speak at a meeting about challenges and successes.

Jeff suggested learning about the use of compostable bags and the challenges from Seattle.

Questions/Comments

Jan Bower added the Secure Medicine Return Ordinance Implementation to begin March 1. SWAC may be asked to comment on outreach materials. KPHD is coordinating a celebration for the finished Bremerton Auto Wrecking Landfill Remediation project, to be held in April. SWAC members will receive invitations. Jan asked what the schedule is for the HHW facility to be located in the north end area of Kitsap County. Pat responded that the Road Division is the lead on acquiring a site and they are looking at sites but nothing is expected to be ready until 2019. Diane Landry asked about adding Pre-consumer Food Waste Diversion. Pat responded that she would discuss with Chris but may not be able to be included, with so many other priorities identified for this year Pat announced the Poulsbo Recycle Center officially sold as of December 15, 2017. The funds will go to the Solid Waste Capital Improvement account.

Meeting Schedule: SWAC members agreed to continue to schedule monthly meetings, recognizing that meeting frequency may be reduced later in the year to every other month. Pat Campbell – OVTS/RAGF Rate Study (Handout and PowerPoint Presentation included) Questions/Comments Was there a change in the number of one-can customers at the RAGFs after the previous rate increase? Pat – There was a small difference at first but there are still a lot of one-can customers. What is the expected implementation date for the new rates? Pat – We are aiming for July 1, 2018. Where does the 3.6% SW collection tax go? Pat – It is a state tax and goes to the Washington State Public Works trust fund. SWAC recommends moving forward with the proposed OVTS fees, OVTS special fees, the OVTS minimum fee staying the same at $22.00 and the RAGF loose and can rates as presented. Motion made by Doug Chamberlain and second by Eric Lenius. All members in favor. Motion carried.

ROUND TABLE DISCUSSION

Jeff West – 2017 was a busy year for Olympic Organics recycling and composting. In

2018 we are moving forward with an expansion of the Olympic Organics facility and are

acquiring a sort line and buildings for taking construction and demolition materials.

There will be an open house for the retail outlet opening in East Bremerton sometime in

April, and a soft opening for sales starting this month. Jeff is working nationally on the

development of compostable products.

Diane Landry – Reminder of the Styrofoam and CD collection at Bay Hay and Feed on

Bainbridge Island Jan. 20 & 21.

Jan Brower – KPHD’s Grant Holdcroft has left Solid and Hazardous Waste to accept the position of PIC (Pollution Identification and Control) Program Manager for the shoreline, lake and stream monitoring program.

Pat Campbell –

The Styrofoam collection event held in December was a great success, and we are

planning more collections in the future. Thank you to Diane Landry and Laura Kneib

for volunteering at the event. There were approximately 340 customers and 160

cubic yards of Styrofoam was collected.

The Solid and Hazardous Waste Management Plan adoptions are complete in

Poulsbo, Bainbridge and Port Orchard with the others to be finished soon. When all

the presentations are done it will go to the Board of County Commissioners for

adoption. This should be in February. The March SWAC meeting will include the

State-required meeting of local stakeholders responsible for the Waste

Reduction/Recycling element of the Plan,

ADJOURNMENT

There being no further business the meeting adjourned 5:30 pm.

NEXT MEETING

The next meeting is tentatively scheduled for Feb. 7, 2018 at 4 pm.

KITSAP COUNTY PUBLIC WORKS SOLID WASTE DIVISION

SOLID WASTE ADVISORY COMMITTEE (SWAC)

OLYMPIC VIEW TRANSFER STATION / RECYCLING AND GARBAGE FACITILY

RATE PROPOSALS, 2018 – 2021

JANUARY 10, 2018

During the December 2017 discussion of rate-setting options at Olympic View Transfer Station

(OVTS), SWAC members raised several questions concerning the three options presented. Based

on that discussion, staff has reviewed the information previously presented, corrected errors that

were noted, and, as requested, prepared a summary of pros and cons of cash- vs. bond-funded

capital projects.

In using the projected revenue requirements over the next four years to develop rates for OVTS,

a calculation error was discovered. Specifically, the annual funding requirements for Kitsap

Nuisance Abatement Team (KNAT), Kitsap Public Health District (KPHD), and the new Rate

Stability Fund were inadvertently added as increases over the previous years’ requirements,

rather than as what was needed in the individual subsequent years. A corrected table

summarizing the projected revenue requirement for each of the options is presented below:

PROJECTED REVENUE REQUIREMENT (per ton) – NOTE: revised from 12/6/17

CURRENT TIPPING FEE = $71.00/ton 2018 2019 2020 2021 OPTION 1: Rate Stability Reserve Fund Balance achieved in 4 years; Capital Projects cash funded

$83.62 $97.19 $115.16 $121.33

OPTION 2: Rate Stability Reserve Fund Balance achieved in 8 years; Bonds issued for Capital Projects

$80.24 $81.47 $83.39 $86.00

OPTION 3: Rate Stability Reserve Fund Balance achieved in 12 years; Bonds issued for Capital Projects

$79.68 $80.93 $82.85 $85.47

With this correction, there is a negligible difference between Options 2 and 3, but Option 1 would

require an approximate 70% increase over the current $71 per ton by the year 2021. SWAC has

requested additional information on the advantages and disadvantages of using cash vs. issuing

bonds for capital projects. A general summary of the pros and cons of each option is shown

below.

CASH VS. BOND FINANCING FOR SOLID WASTE CAPITAL PROJECTS

CASH Pros Cons

No ongoing user fee collections for the project after construction

Project costs must be collected upfront - before start of project

Paid for up front - no ongoing debt service Higher user fees increases to accumulate needed cash up front

Frees up County’s General Obligation debt capacity for other uses

May be politically unpopular due to need for rapid fee increase

Lower overall project costs - no debt issue costs, debt service costs

Opportunity cost - lost investment income

User fees are increased rapidly, usually not decreased in the future

BONDS Pros Cons

County has the General Obligation debt capacity Higher project costs - debt service interest and bond issuance costs

Cash will be immediately available for the project Debt service and reporting over a longer period of time

User fee assessment for debt service over a longer period of time = smaller user fee increase

Ongoing user fee assessment for debt service for life of bond

Cost can be spread over the life of the asset; those who use the asset in the future are paying for it

Given the magnitude of the needed increase to cash-fund the capital projects planned in the next

six years, staff recommends issuing bonds for these projects in 2019, in conjunction with the

Road Division or other County departments to minimize administrative costs. SWAC discussion

in December seemed to generally also favor Option 2. This option has been used to calculate

rates over the four year period, averaging out the yearly increase needed to generate the total

revenue over the four year period. Attachment 1 contains spreadsheets with details of how these

figures were calculated.

PROPOSED OVTS FEES FOR MSW

2018 2019 2020 2021 Projected revenue requirement per ton MSW $80.24 $81.47 $83.39 $86.00

PROPOSED FEES (per ton MSW) (Current tipping fee is $71.00/ton)

$75.00 $80.00 $85.00 $90.00

Annual % increase 5.63% 6.67% 6.25% 5.88%

RECYCLING AND GARBAGE FACILITY (RAGF) PROPOSED RATES

Based on expenditure projections through 2021, allocating fixed (customer-related) and variable

(tonnage-related) costs (using the per ton allocation of the proposed OVTS tipping fees

developed above) for “can customers” and “loose load customers”, and rounding up or down to

make cash transactions easier for attendants and customers, the proposed RAGF rates are shown

below. Detailed spreadsheets showing calculations are included as Attachment 2.

PROPOSED RAGF FEES FOR MSW Proposed Fees Current 2018 2019 2020 2021

One-can customer $8.60 $9.65 $9.65 $10.62 $10.62

w/ 3.6% Solid Waste Collection Tax $8.91 $10.00 $10.00 $11.00 $11.00

Each additional can $2.35 $2.41 $2.41 $2.90 $2.90


Volume-based fees (per yard) $20.57 $24.13 $24.13 $26.06 $26.06


PROPOSED SPECIAL WASTE FEES – OVTS Proposed Special Waste Fees at OVTS were calculated by increasing in 1% increments each year

from the current rates through 2021. This should account for the contractual increase in

payments for special waste to Waste Management, as well as allocating to special waste

generators a proportional share of other miscellaneous expenses.

Proposed Fees - OVTS Current 2018 2019 2020 2021 Yard Waste $67.43 $68.77 $70.84 $73.67 $77.35

Contaminated Soils (gate) $42.08 $42.92 $44.21 $45.98 $48.28

Bulky Wastes $104.88 $106.98 $110.19 $114.59 $120.32

Asbestos $159.17 $162.35 $167.22 $173.91 $182.61

Coal Ash $50.18 $51.18 $52.72 $54.83 $57.57

Processed Wood Waste $41.74 $42.57 $43.85 $45.60 $47.88

Creosote Treated Lumber $50.18 $51.18 $52.72 $54.83 $57.57

Dredge Spoils $42.08 $42.92 $44.21 $45.98 $48.28

Biosolids (delivered loose) $68.00 $69.36 $71.44 $74.30 $78.01

Biosolids (delivered in intermodal containers) $60.45 $61.66 $63.51 $66.05 $69.35

White Goods $16.50 $16.50 $16.50 $16.50 $16.50

Self Haul Tires $5.00 $5.00 $5.00 $5.00 $5.00

The proposed Special Waste Fees for the RAGFs are being further researched and will be

presented at the SWAC meeting.

FURTHER QUESTIONS TO BE CONSIDERED

Based on previous discussions with SWAC and with the Board of County Commissioners, two

items in particular warrant further discussion:

1. Should there be a charge for recycling only customers at the Recycling and Garbage Facilities?

2. Should there be some type of discount program for low-income senior residents?

Caring about your every day!

Kitsap County

Department of Public Works

Kitsap County


Solid Waste DivisionCost of Service / Rate Study

OVTS and RAGFs

Presented to:

Solid Waste Advisory Committee

January 10, 2018

Pat CampbellKitsap County Public Works

Solid Waste Division

Kitsap County


Rate Study: Process

Began in July 2017

Board of County Commissioners (BOCC)

initial briefing – September 2017

Four SWAC meetings – October, November,

December, 2017; January 2018

SWAC Recommendation to BOCC February 2018

Kitsap County


Solid Waste Services Olympic View Transfer Station (OVTS)

Recycling and Garbage Facilities

Hansville, Silverdale, Olalla

Waste reduction/recycling/litter programs

Household Hazardous Waste program

Closed Landfill oversight

Clean Kitsap program

Litter and illegal dumping prevention and response efforts

Kitsap Public Health District (KPHD)

Solid and Hazardous Waste program regulation/enforcement

Kitsap County


MSW Rates from prior Rate Study

FacilityPrevious

Fees7/1/13 1/1/15 1/1/17

OVTS minimum $10 $15 $19 $22

OVTS per ton $62.02 $65 $68 $71

RAGF minimum $3.69/can

$8.60 first can;

$2.35 each

additional can

no change no change

RAGF - cu. yd. $14.78 $20.57 no change no change

Kitsap County


Goals of Prior Rate Study

Conducted in 2012 – still in economic downturn, had

begun using reserves for current operations

Fully meet cost-of-service revenue requirements,

system-wide and within RAGF system as a whole

Solid Waste Fund (401) and Transfer Station Operations

Fund (437): 3 months of operating expenses

Fund Capital Projects through 2017

Kitsap County


Revenue / Expenditure History

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2011 2012 2013 2014 2015 2016

Funds 401 and 437

Revenue Expenditures

Kitsap County


Fund Balance Targets (PW Policy 4.08.01)

Solid Waste Fund (401) and Transfer Station Operations

Fund (437): 3 months of operating expenses

Clean Kitsap Fund (430): Minimum fund balance - $1 M

Capital Fund (438): Minimum fund balance - $1 M

Equipment Reserve Fund (434): $400,000 deposited each

year through 2021 for equipment replacement costs at

OVTS

NEW Rate Stability Reserve Fund: Minimum 15% of

annual estimated revenue in dedicated separate fund to

protect against revenue shortfalls (e.g. decrease in MSW)

Kitsap County


Additional Funding Requests

Kitsap Nuisance Abatement Team

Lead agency: Department of Community Development

Requesting $0.25 per ton of MSW to fund solid waste-

related nuisance abatement activities

Kitsap Public Health District

Current allocation is $2.65 per ton of MSW

Requesting sufficient revenue from tipping fees to offset

reduction/elimination of State financial assistance

through Department of Ecology

Kitsap County


Rate Study: Methodology

Project the expenses on an annual basis through

2021 for each fund (operations and reserve fund

balance requirements)

Project the revenues needed to pay for expenses

Separate projections for OVTS and RAGFs

Project OVTS fees for each waste type

Project RAGF fees for each waste type

Kitsap County


Rate Study: Methodology (cont.)

Developed three options for consideration:

Option 1: Cash Funding for Capital Projects, achieve Rate

Stability Fund target balance in 4 years

Option 2: Issue Bonds for Capital Projects, achieve Rate

Stability Find Balance in 8 years

Option 3: Issue Bonds for Capital Projects, achieve Rate

Stability Fund balance in 12 years

Chose Option 2 for further analysis

Kitsap County


Proposed OVTS Tipping Fee (MSW)

Current tipping fee: $71.00/ton

Proposed:

2018 - $75.00

2019 - $80.00

2020 - $85.00

2021 - $90.00

Minimum fee remains $22.00 (including tax)

Kitsap County


Proposed OVTS Tipping Fee (Special Waste)

Special Waste Type

2017

Fees

2018

Proposed

Fees

2019

Proposed

Fees

2020

Proposed

Fees

2021

Proposed

Fees

Yard Waste $67.43 $68.77 $70.84 $73.67 $77.35

Contaminated Soils (gate) $42.08 $42.92 $44.21 $45.98 $48.28

Bulky Wastes $104.88 $106.98 $110.19 $114.59 $120.32

Asbestos $159.17 $162.35 $167.22 $173.91 $182.61

Coal Ash $50.18 $51.18 $52.72 $54.83 $57.57

Processed Wood Waste $41.74 $42.57 $43.85 $45.60 $47.88

Creosote Treated Lumber $50.18 $51.18 $52.72 $54.83 $57.57

Dredge Spoils $42.08 $42.92 $44.21 $45.98 $48.28

Biosolids (delivered loose) $68.00 $69.36 $71.44 $74.30 $78.01

Biosolids (containerized) $60.45 $61.66 $63.51 $66.05 $69.35

White Goods - TBD $16.50 $16.50 $16.50 $16.50 $16.50

Self Haul Tires - TBD $5.00 $5.00 $5.00 $5.00 $5.00

Kitsap County


Kitsap County


RAGFs Revenue / Expenditure History

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

2000000

2014 2015 2016

RAGFs 2014 - 2016

Revenue Expenditures

Kitsap County


Proposed RAGF Disposal Fees

Proposed Fees Current 2018 2019 2020 2021 One-can customer $8.60 $9.65 $9.65 $10.62 $10.62


Each additional can $2.35 $2.41 $2.41 $2.90 $2.90


Volume-based fees (per yard) $20.57 $24.13 $24.13 $26.06 $26.06


Kitsap County


Next Steps in Fee Adoption Process

BOCC Briefing February 7, 2018

Public Outreach

75-days minimum notice to haulers required by

RCW 70.95.212

Target Implementation Date: July 1, 2018

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