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HomeMy WebLinkAboutAgendaPacket 2-05-07_382-391_Solid Waste Management Update for the Convenience Station, Joining the Gallatin County Solid Waste Management District, and a Long Range Plan Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Steven D. Johnson, Superintendent Solid Waste Division Debbie Arkell, Director of Public Service Chris Kukulski, City Manager SUBJECT: Solid Waste Management Update for the Convenience Station, Joining the Gallatin County Solid Waste Management District, and a Long Range Plan MEETING DATE: February 5, 2007 BACKGROUND: A report was presented to the City Commission at your July 24, 2006 meeting that outlined possible options for the future of the Solid Waste Division. The following six options were reviewed at that time: 1) construction of a Convenience Station, including a self-contained Household Hazardous Waste (HHW) facility; 2) Expanding the Class IV (construction debris) cell; 3) Opening a new Class II cell; 4) contract for cardboard recycling; 5) Transfer Station/Material Recovery Facility (MRF); and 6) Gallatin County Solid Waste Management District membership. As a result of that meeting, the commission directed Staff to perform the following: 1. Proceed with the Convenience Station and HHW facility and report back on the issues related to opening the facility to county residents; set county user rate higher than city user’s rate; 2. Provide additional information on the expansion of the Class IV (construction debris) cell, with specific information addressing the public’s concerns of potential groundwater contamination; identify the financial impact the cell would have on the Logan Landfill; 3. Proceed with bidding a contract for cardboard recycling; 4. Continue negotiations to join the Gallatin County Solid Waste Management District; 5. Define the long range plan for City of Bozeman solid waste. Planning for future waste management functions looks at long range as being from three years to five years, with the plan updated annually. Waste management planning that follows this format allows foreseeable goals to be accomplished while maintaining a continuum of services appropriate for the community. 1. Convenience Station/HHW Facility. As directed on July 24, 2006, Staff has proceeded with the construction of a Convenience Station with HHW facility, and the Commission approved a site plan for the project on November 27, 2006. The self-contained HHW structure has been ordered and site preparation will continue as the weather allows. The Convenience Station and HHW facility are projected to be open in April 2007, weather permitting. The Convenience Station will offer the 1 385 recycling “binnies”, used motor oil collection, auto battery collection, and three roll-off containers for regular household waste. A “z-wall” will be constructed for the roll-off containers and customers with smaller amounts of trash will deposit their trash there, rather than go into the landfill. The current hours of operation at the Landfill are 8 a.m. to 12:00 noon, Tuesday through Saturday. In order to increase access and income, we plan to extend the hours the facility is open and remain open until 3:00 p.m. This will include both the Landfill and the Convenience Station. The HHW facility will only be open on Saturday mornings from 8:00 a.m. to 12:00 noon. Existing Solid Waste Division personnel will operate the facility, but one additional Hazardous Waste-trained employee will be required to work the HHW facility on Saturdays, and this position will be filled by a Collection employee putting in overtime. Budget: The present pricing structure would stay in place for compostables and white goods. The minimum gate fee of $5.00 will be increased as follows: City residents will be charged $10.00 minimum. Staff believes this facility should be open to County residents as well as City residents, and County residents would be charged $15.00 minimum. It will be apparent which customers have less than one ton of trash, so Convenience Station customers would pay at the scale and not have to return to the scale to weigh out. If there is a question, customers will be weighed both ways. Our estimated budget for the Convenience Station/HHW facility anticipates annual revenue of $65,250 from 25 City residents using the Convenience Station per day at $10/load; and $117,450 from 30 County residents using the Convenience Station per day at $15/load, for a total of $182,700 in revenue. The Convenience Station/HHW facility estimated portion of the SW disposal budget is $93,300 annually (attached). The construction of the facility and purchase of the HHW unit is estimated at $90,000. The first year has an estimated negative cash flow of $600 with an estimated positive cash flow of $89,400 in the year thereafter. Recommendation: Pass a resolution to increase the minimum tipping fee from $5 to $10 for City residents and $15 for County residents. 2. Status of Cardboard Recycling Contract. A contract to bale the City’s cardboard was bid and a Contract was awarded to Four Corners Recycling in October. City Staff collects cardboard from the Headwaters Recycling sites and from commercial garbage customers who receive the service as part of their city garbage collection. The material is delivered to Four Corners Recycling, who then bales and markets the product. Fifty percent of the revenue received for the baled cardboard is returned to the City. As was noted in the July report, the City could likely still lose money on this program. With the recent conversion of cardboard collection to the front load equipment, it takes about 5 hours per day to collect and deliver the cardboard to Four Corners, or 1,815 hours annually. The cost of running the program is as follows: personnel $40,800, equipment repairs $10,000 and fuel $23,000, for a total of $73,800. City income is based on 50% of market value which is conservatively $70 per ton. In the first 8 months of the program, 1,546 tons have been processed for total revenue of $54,110. Extrapolating the tonnage and revenue over twelve months produces 2,319 tons and $81,165, for net revue of $7,365. 3. Continue Negotiations to Join the Gallatin County Solid Waste Management District. Staff continues to attend the monthly Gallatin County Solid Waste Management District Board meetings to stay current on their operations, and to attempt to develop an agreement that both entities can feel 2 386 comfortable with which also meets the waste management requirements of each entity, both financially and operationally. A draft Interlocal Agreement to include the City of Bozeman in the Gallatin County Solid Waste Management District was discussed at the December 15, 2006 joint City and County Commission meeting. Revisions were made to the document and it was presented to the Gallatin County Solid Waste Management District Board meeting on December 20, 2006. The Board appointed a committee to review the Interlocal Agreement and make a proposal back to the City. Staff attended the Board’s January 17, 2007 meeting. The Logan Landfill Manager advised the Board that they have approximately one year of space remaining in the existing cell. The existing Staff and temporary laborers have been working on digging the new cell and have leased equipment for this work. Once the cell is dug, a company will have to install the liner and that work has not yet been bid. City Staff is somewhat concerned with this timeframe because we are under contract to deliver waste from our collection division and the District is under contract to accept it and if the new cell is not completed before the old cell is full, disposal could become an issue. With regard to Bozeman joining the Gallatin County Solid Waste Management District, the Committee recommended that if Bozeman joins the District, we should join with all of our assets and liabilities. The District could then deal with a Transfer Station and focus on the big picture, including placing containers in rural areas. It was suggested that the Board also approach Belgrade about joining the District. This topic was further discussed at the Joint City-County Commission meeting on January 19, and it was decided that the City joining the District needs to be kept simple and not get bogged down in details. On January 26, 2007 the City Manager and Superintendent of Solid Waste met with the District Committee. As a result, agreements were reached on several key issues; Collection Division and Landfill property ownership would remain with the City, remaining City landfill capacity should be filled by an agreed upon sunset date, and after that time, all City refuse would be directed to the Logan Landfill. The Draft Agreement is attached. Recommendation: Staff will meet with Board representatives as directed at the joint meeting and attempt to finalize the details so the City can join the District as soon as possible. We expect to have the Agreement completed within the next several weeks. 4. Long Range Plan. The City recently hired a Solid Waste Superintendent with over 25 years of experience exclusively in the Solid Waste business. After many discussions and analysis of our current situation, our recommendations for the City’s long range management of solid waste are: Join the Gallatin County Solid Waste Management District as Directed by the City Commission in 2005. • The District should consider constructing Class IV and/or Class II Cells at the City’s landfill site. These cells could be operated in harmony with the Logan facility, to provide convenient service to the more-populated northeastern portion of the county, including to commercial collection providers. Under the Agreement to join the District, said additional cells cannot be constructed without City Commission and District approval and they would be built and managed with District assets with a land lease from the City. • The District should construct a Material Recovery Facility (MRF) and Transfer Station, in cooperation with collection haulers in the valley. 3 387 • The City should implement a curbside recycling program once a MRF is operational. We will be working as a member of the District so that these major components of a comprehensive Waste Management System can be accomplished. RECOMMENDATIONS: 1 - The City complete negotiations with Gallatin County to join the Solid Waste Management District. 2 – The City completes the installation of the Convenience Station and Household Hazardous Waste facility open to both City and County residence. 3 – Consistent with the attached Draft Agreement, the City expand utilization of our current Class II Cell in order to fill the current airspace by the proposed June 30, 2008 deadline. FISCAL EFFECTS: We anticipate increased revenues from both the Convenience Station and the remaining airspace in the Class II Cell, as outlined in the report above. ALTERNATIVES: As suggested by the City Commission. Respectfully submitted, _________________________________ ____________________________ Steve Johnson, Solid Waste Superintendent Chris A. Kukulski, City Manager Copy of report sent to: Hallie Rugheimer Lynn and Peter Rugheimer Bill Ranard, Bridger Creek HO Assoc. Charles Bowen Dane Gamble, Bridger Creek Golf Course Bob McIllhattan John McIllhattan Kathy Gallagher Jim Lakey Don Brelsford Bruce Hanson, Chair, Gallatin County Solid Waste Management District Board Report compiled on February 1, 2007 4 388 CONVENIENCE STATION/HHW FACILITY ESTIMATED ANNUAL BUDGET (1/29/2007) FUND ESTIMATE Personnel 23,400 1 employee for 8 hours regular time; 1 @ OT) Office Supplies 1200 Computer Supplies 1000 Personal Computers 2000 (new computer at scale) Clothing & Uniforms 600 (Per Union contract) Vehicle Supplies 900 Gas, Fuel & Oil 15000 (for disposal to landfill(s) ) Small equipment & tools 1200 General supplies 4000 Repair of equipment 1000 Repair of Buildings 500 Repair/Maint Other 1000 Electricity 1000 Telephone 1000 Consultant & Prof Services 5000 (initial oversight of HHW Operations) Medical Services 1000 (Per Union contract) General Contracted Services 15000 (Disposal of HHW) Travel/Training 1000 Advertising 2500 Postage 500 Taxes & Assessments 1500 (portion of street & tree assess) Insurance & Bonding 5000 (portion) Rents & Leases 1000 General 2000 Administrative Overhead 5000 (portion) TOTAL 93,300 5 389 Draft – 12/18/06 1 INTERLOCAL AGREEMENT TO EXPAND THE GALLATIN SOLID WASTE MANAGEMENT DISTRICT TO INCLUDE THE CITY OF BOZEMAN This Interlocal Agreement to expand the Gallatin Solid Waste Management District to include the City of Bozeman takes effect on the ___ day of ___________, 2007, by and between: GALLATIN SOLID WASTE MANAGEMENT DISTRICT BOARD (Board), Bruce Hanson, Chairman, Manhattan, Montana; and GALLATIN COUNTY COMMISSION (Commission), 311 West Main Street, Bozeman, MT 59715; and THE CITY OF BOZEMAN (City), 411 East Main Street, P. O. Box 1230, Bozeman, MT 59771-1230. IT IS UNDERSTOOD AND AGREED as follows: 1. The Gallatin Solid Waste Management District (the District) was created on May 20, 2003 to provide structured management of the Logan Landfill and any future solid waste management systems in the District; to provide a distinct entity under Montana law with the financial resources to fairly and properly carry out waste management duties and responsibilities; and to provide an opportunity to perform alternative methods of collection and disposal of solid waste, such as recycling and composting (County Resolution 2003-054). 2. The City of Bozeman entered into an Interlocal Agreement on October 17, 2005 for the disposal of solid waste that is collected within the City limits of the City of Bozeman at the Logan Landfill. 3. The following benefits would be attained by the City of Bozeman joining the Gallatin Solid Waste Management District: • The City and its residents would have a guaranteed place to deposit collected waste for the long term; • The District would be assured that all waste generated within the City would be deposited at the District’s Landfill, once the City’s current and existing airspace is filled closing landfilling operations by the City; • All parties could work together regarding district-wide recycling; • District residents could utilize the City’s household hazardous waste facility, with the District contributing toward the operations of the facility; • The City and District could potentially combine their solid waste assets and experience regarding landfill operations, equipment, collection and recycling to benefit all residents within the District; • One combined entity could better plan for the future of solid waste region- wide that would include household hazardous waste, recycling, 390 Draft – 12/18/06 2 composting, convenience sites as well as a potential Materials Recovery Facility or other long-range solid waste facility. 4. Upon the City becoming an official member of the District, the Board’s by-laws will be amended to include two (2) seats on the Board for City of Bozeman representatives. 5. The Board is awaiting the Montana Department of Environmental Quality’s (DEQ) most recent directives regarding the Corrective Measures Assessment for clean-up of an area at the Logan Landfill. The District will comply with all of the DEQ’s requirements. After directive is received from DEQ, the Board will assess the financial commitment needed for compliance with those requirements and will provide the City with the Board’s financial plan for compliance. The City of Bozeman will not be deemed a separate responsible party for this clean- up. 6. The City of Bozeman will be permitted to divert Class II garbage, collected within the City, to its current landfill, at a rate agreed to by the District, in order to fill the remaining airspace that exists. The tipping fees and all liabilities with the City’s existing landfill cells are solely the City’s responsibility. The City will not be able to continue this operation beyond June 30, 2008 unless authorized by the District. 7. The District has the right to request expansion of Class II and/or Class IV cells at the City’s landfill site. If their request is approved by the City Commission, the District would lease the land from the City and the District would be solely responsible for all costs associated with expanding said cells and all liability associated with the landfill operations will transfer from the City to the District. 8. While the over-arching goal of the parties hereto is to develop one cohesive County-Wide Solid Waste Management District, all parties hereto concur that the City of Bozeman shall continue to utilize and operate their collection and composting operations, and the final Resolution officially expanding the District will specifically so state. In so doing, the City agrees not to expand its collection division beyond the Bozeman City limits without prior approval by the District 9. The District agrees that one consolidated payment to Headwaters will be paid by the District. The City will continue its current recycling programs with the understanding that changes to these programs, that require District funding, are at the discretion of the District. The District agrees that once the current airspace at the City’s landfill is fully utilized, all costs associated with recycling will be the responsibility of the District. Any and all programs relying on the District’s financial support are at the sole discretion of the District. If through its collection division, the City offers recycling opportunities at the sole cost of the City they do not require District approval. 391 Draft – 12/18/06 3 10. The purchase and installation of a Convenience and Household Hazardous Waste Station will be made by the City and located at the City’s current landfill. The City and District will negotiate a long term agreement to have the District pay for the operational costs of maintaining this facility once the City closes its existing Class II cell. This agreement will be completed not latter than June 30, 2008. 11. In order to achieve a higher level of solid waste management consistent with the State of Montana’s Department of Environmental Quality goal to reduce, through source reduction, reuse, recycling, and composting, the amount of solid waste generated that is disposed of in landfills, a coordinated effort of methods of collections and disposal of solid waste such as recycling and composting is needed. The District is the best avenue for attaining a high level of regional solid waste management. The District’s top priority is the management and expansion of the Logan landfill. Once this is accomplished, the District will be able to devote attention to other areas of solid waste management, including but not limited to, the development of a Class IV cell somewhere in the District, recycling, and other solid waste management processes. NOW, THEREFORE, BE IT RESOLVED, that with the foregoing fully agreed to: 1. The Gallatin County Commission and the City of Bozeman will follow the process set forth in Sections 7-13-205 through 7-13-212, MCA (2005) and mail notices to all District and City of Bozeman residences seeking to add Bozeman to the District’s territory; 2. The Gallatin County Commission will direct the County Attorney and the City Manager for the City of Bozeman will direct the City Attorney to work together and reach an agreement on language protecting the city from any liability regarding the known pollution at the Logan Landfill as of the date of the City becomes a part of the District. 3. The Board will amend their By-Laws at the next regularly scheduled meeting following the City’s joining the District to include two (2) seats on the Board for City of Bozeman representatives. GALLATIN SOLID WASTE MANAGEMENT DISTRICT BOARD Chairman GALLATIN COUNTY COMMISSION 392 Draft – 12/18/06 4 Chairman Member Member CITY OF BOZEMAN, MONTANA City Manager ATTEST: _________________________ Brit Fontenot, City Clerk Approved as to legal content: _________________________ Paul J. Luwe, City Attorney 393