utilities department solid waste system tipping fees november 11, 2008

Utilities DepartmentUtilities DepartmentSolid Waste SystemSolid Waste System

Tipping FeesTipping Fees

November 11, 2008November 11, 2008

• Early 70’s– Purchased 1500 acres– Developed a system of

Transfer Stations

• Early 90’s purchased 3500 acres

• Largest Publicly Owned Landfill in Florida

• Only Class I Landfill in Orange County

Solid Waste SystemSolid Waste System


• Mandatory Refuse Collection – Commenced 1985

• Recycling Collection and processing– Commenced 1990– 25,600 tons

• 194,000 Customers• MSBU funded

programs


• Materials Recycling Facility– Landfill site

• Recycling Transfer Facility– McCormick Rd

• Residential Collection ProgramResidential Collection Program– Contract begins January 1, 2009Contract begins January 1, 2009– New contractors for Zone 2 and Zone 4New contractors for Zone 2 and Zone 4– Transition planTransition plan

• Meet with all contractorsMeet with all contractors• Contact customers through letters and tagsContact customers through letters and tags

– Customer service supportCustomer service support– Communication with CommissionersCommunication with Commissioners



• Landfill Operations – Class I Waste

• Putrescible Waste• Over 2000 tons per

day

– Class III Waste• Non-Putrescible

Waste• Over 750 tons per

day


• Landfill Operations– Yard Waste

Composting• Landscaping

Material• Over 210 tons per

day


• Special Waste Disposal– HHW Facilities– Asbestos– Waste Tire– Small Vehicle Drop

Off Facility


• Transfer Station Operations– McLeod Road

• 630 tons per day

– Porter • 450 tons per day


• Maintenance Operation– Heavy Equipment– Transfer Vehicles– Fleet– Buildings and

Grounds


• Engineering and Environmental– Regulatory

compliance– Permitting– Planning and

Construction


• New cell construction– Regulations– Liners– Leachate– Roads


• Cell Closure

• Long Term Care

• Landfill Gas to EnergyLandfill Gas to Energy– Landfill gas recovery projectLandfill gas recovery project– OUC Stanton Energy CenterOUC Stanton Energy Center– Expansion of gas recovery project for new Expansion of gas recovery project for new

cellscells– Provides alternative revenue source to Provides alternative revenue source to

supplement tipping fee revenuesupplement tipping fee revenue


Solid Waste SystemSolid Waste SystemTipping FeesTipping Fees


• BackgroundBackground– Enterprise FundEnterprise Fund– Tipping Fees are Tipping Fees are

paid by solid paid by solid waste collection waste collection haulers to haulers to dispose of waste dispose of waste at the County at the County Landfill and Landfill and Transfer StationsTransfer Stations


• BackgroundBackground– Tipping Fees Tipping Fees

must recover:must recover:• Operating expenseOperating expense

• Capital cost of all Capital cost of all equipment and equipment and infrastructure infrastructure including new cell including new cell developmentdevelopment

• Cost of closure and Cost of closure and long term carelong term care

• Debt ServiceDebt Service


• BackgroundBackground– Tipping Fees have Tipping Fees have

not increased since not increased since 1992 with two 1992 with two exceptionsexceptions• 1994 – Creation of 1994 – Creation of

Class I Commercial Class I Commercial feefee

• 1998 – Increase in 1998 – Increase in the Waste Tire feethe Waste Tire fee


• BackgroundBackground– In 1999, competition In 1999, competition

resulted in a resulted in a significant loss of significant loss of tonnage / revenuetonnage / revenue

– Engaged consultant Engaged consultant to assist us with the to assist us with the development of a development of a Solid Waste Solid Waste Business PlanBusiness Plan


• BackgroundBackground– Tonnage Tonnage

agreements with agreements with municipalities and municipalities and commercial commercial haulers stabilized haulers stabilized the loss the loss

– Fees and tonnage Fees and tonnage levels had been levels had been sufficient to meet sufficient to meet our needsour needs


• Current EnvironmentCurrent Environment– The system is not in The system is not in

sound financial healthsound financial health• Substantial increases in the Substantial increases in the

cost of new cell cost of new cell construction, closure and construction, closure and long term carelong term care

• Increased liability for Increased liability for closure and long term care closure and long term care is not fully fundedis not fully funded

• Outstanding bonds were Outstanding bonds were defeased in 2007 to avoid defeased in 2007 to avoid technical defaulttechnical default


• Current EnvironmentCurrent Environment• Tipping Fee revenue is Tipping Fee revenue is

not sufficient to properly not sufficient to properly fund the systemfund the system

• Current economic market Current economic market makes it challenging to makes it challenging to borrow to fund projectsborrow to fund projects

• Projects may be delayedProjects may be delayed• Engaged consultant to Engaged consultant to

update the Solid Waste update the Solid Waste Business PlanBusiness Plan


• Solid Waste Business Plan Update Solid Waste Business Plan Update – Updated cost of serviceUpdated cost of service– Analyzed current solid waste competitive Analyzed current solid waste competitive

market market • Recommends an increase to Tipping Fees for Recommends an increase to Tipping Fees for

Class I and Class III waste based on market Class I and Class III waste based on market conditions conditions

– Explores alternative sources of system Explores alternative sources of system revenue which will take more time to revenue which will take more time to implementimplement


• Alternative sources of system revenueAlternative sources of system revenue– Additional agreements with two tier tipping Additional agreements with two tier tipping

fee systemfee system– Franchise Hauler fee to cover cost of Franchise Hauler fee to cover cost of

capacity at the landfillcapacity at the landfill– Expand Mandatory Refuse Program to Expand Mandatory Refuse Program to

multi-family residential complexesmulti-family residential complexes– Special assessment for landfill cell Special assessment for landfill cell

constructionconstruction– Flow controlFlow control


• Tipping Fee Recommendations Tipping Fee Recommendations – Class I ResidentialClass I Residential $30.65 to $ 32.65$30.65 to $ 32.65– Class I CommercialClass I Commercial $32.95 to $ 35.10$32.95 to $ 35.10– Class III WasteClass III Waste $17.20 to $ 24.00$17.20 to $ 24.00– Yard WasteYard Waste $28.35 to $ $28.35 to $

29.0029.00– Tire Disposal Tire Disposal $99.00 to $148.00$99.00 to $148.00– Sludge Sludge $ 7.10 to $ 0.00$ 7.10 to $ 0.00

• Accepted by agreement onlyAccepted by agreement only

– Minimum ChargeMinimum Charge $ 5.25 to $ 6.00$ 5.25 to $ 6.00


• Tipping Fee Comparison – Class ITipping Fee Comparison – Class ITaft Recycling Taft Recycling $53.00$53.00Baseline Landfill (Marion County)Baseline Landfill (Marion County) $42.00$42.00JED Landfill (Osceola County)JED Landfill (Osceola County) $38.00$38.00Orange County – Com (Proposed)Orange County – Com (Proposed) $35.10$35.10WMI TransferWMI Transfer $35.00$35.00Osceola Road (Seminole County)Osceola Road (Seminole County) $33.17$33.17Orange County – Com (Current)Orange County – Com (Current) $32.95$32.95Orange County – Res (Proposed)Orange County – Res (Proposed) $32.65$32.65Orange County – Res (Current)Orange County – Res (Current) $30.65$30.65Central Disposal (Brevard County)Central Disposal (Brevard County) $29.50$29.50


• Tipping Fee Comparison – Class IIITipping Fee Comparison – Class IIITaft Recycling Taft Recycling $48.00$48.00

Baseline Landfill (Marion County)Baseline Landfill (Marion County) $42.00$42.00

Osceola Road (Seminole County) Osceola Road (Seminole County) $33.17$33.17

Central Disposal (Brevard County)Central Disposal (Brevard County) $29.50$29.50

Orange CountyOrange County (Proposed)(Proposed) $24.00$24.00

Keene RoadKeene Road $20.50$20.50

JED Landfill (Osceola County)JED Landfill (Osceola County) $20.00$20.00

Golden Gem Road Golden Gem Road $20.00$20.00

Orange County (Current)Orange County (Current) $17.20$17.20


• Mandatory Refuse Mandatory Refuse and Recycling and Recycling Programs Programs – The MSBU adopted The MSBU adopted

for 2009 is $226.59for 2009 is $226.59– The impact of the The impact of the

proposed fee proposed fee increase is $2.92 per increase is $2.92 per household household

– Program can absorb Program can absorb impact for 2009 impact for 2009


• Summary Summary – Cost of operating the Solid Waste Cost of operating the Solid Waste

System is increasingSystem is increasing

– Closure and Long Term Care Liability Closure and Long Term Care Liability Accounts not fully fundedAccounts not fully funded

– Capital Improvement Program delaysCapital Improvement Program delays

– Tipping Fee increases alone will not Tipping Fee increases alone will not solve the financial issuessolve the financial issues


• Summary Summary – Short TermShort Term

• Tipping Fee increases neededTipping Fee increases needed

– Long Term Long Term • Evaluate alternatives to stabilize system Evaluate alternatives to stabilize system

revenue revenue

– We will return to the Board to discuss:We will return to the Board to discuss:• Future tipping fee increasesFuture tipping fee increases• Alternative revenue opportunitiesAlternative revenue opportunities• Solid Waste Business PlanSolid Waste Business Plan


• Requested Action Requested Action – Approval of the Resolution and Fee Approval of the Resolution and Fee

Schedule to revise Solid Waste tipping Schedule to revise Solid Waste tipping feesfees

Utilities DepartmentUtilities DepartmentSolid Waste SystemSolid Waste System

Tipping FeesTipping Fees

November 11, 2008November 11, 2008

utilities department solid waste system tipping fees november 11, 2008

Documents

solid waste collection

recycling collection

loss fees

cost of new cell construction

new contractors

floridaonly class

commercial haulers

owned landfill