Title
Solid Waste Management System (B)
This item involves a request for the Commission to hear a presentation on the status of the Solid Waste Management System as it relates to the current solid waste disposal and future solid waste disposal options available to the City. This discussion will provide the City Commission with background information in preparation for the Joint City/County Commission meeting regarding Solid Waste scheduled for March 30, 2006.
Explanation
The City of Gainesville entered into an Interlocal Agreement with Alachua County for Solid Waste Disposal on May 12, 1998. This agreement obligates the City to require its contracted residential solid waste hauler to deliver all acceptable waste, collected from within the City to the County's designated facilities. The agreement ends September 30, 2007. In 2004, the City amended its agreement with the County to pay $44.00 per ton with an annual CPI adjustment for the remaining term of the Interlocal Agreement. The current tipping rate is $45.50 and is anticipated to reach $50.00 per ton by 2009.
The City's solid waste rates were adjusted in 2003 in anticipation of the new collection contract with Waste Management, Inc (WMI). This adjustment was the first since 1997, at which time the rates were actually reduced. Although the residential solid waste program operated in a deficit, the City utilized fund balance to offset the deficit. The current rate was developed to allow rates to remain constant for the term of the current collection contract, which ends September 30, 2009. It is important to note that due to higher than anticipated costs associated with the repairs of the Old Landfill at Sweetwater and the Airport Landfill and the impacts of the hurricanes in 2004, a rate adjustment may have to occur during the upcoming two-year budget cycle.
For the long-term viability of the County's solid waste disposal program, it is imperative that they control the entire waste stream in Alachua County on a long-term basis. One of the County's requests has been for the City to enter into a long-term partnership arrangement through 2018, which coincides with their agreement with New River Solid Waste Association (New River).
Alachua County entered into an agreement with New River on November 6, 1997, and has subsequently modified the agreement four times. The agreement provides a tiered disposal rate based on tonnages of waste delivered and is adjusted by CPI each year. The higher the total tonnage delivered at New River, the lower the rate of charge per ton. Based on the current rate schedule with Alachua County, the City does not realize any cost savings in the event the County is able to realize a lower rate at New River. It is important to note that the County did not involve the City during their negotiations with New River on any of the four amendments that are a major factor in the high cost of the County's tipping fees.
City staff has explored disposal options as alternatives to a long-term partnership with the County. It is our understanding that the private sector has options for disposal that could be a cost savings alternative for the City. The best way to determine the validity of this claim is to: 1) either bid the disposal of City waste in 2007; or 2) as an alternative, bid both the collection and disposal of solid waste, recycling and yard trash in 2009 when the current WMI collection contract expires. It will be important that a bid is structured to ensure all aspects of the current arrangement with the use of Alachua County's transfer facility are provided in a new contract (i.e., neighborhood cleanups, hazardous material disposals, dead animals, white goods, etc.).
City and County staff have worked together to develop a draft business plan that provides a framework for a mutually beneficial solid waste management partnership in the event the City and County Commissions choose to direct staff to continue in this direction. This business plan will be the basis for discussion at the Joint City/County Commission meeting scheduled for March 30th.
Fiscal Note
All costs associated with the Solid Waste Management System will be provided through the Solid Waste Enterprise Fund.
Recommendation
Recommended Motion: The City Commission: 1) hear a presentation; and 2) direct staff to continue discussions with Alachua County regarding the development of a mutually beneficial solid waste partnership.
Alternative Recommendation A: The City Commission direct the City Manager to negotiate a partnership with Alachua County for the collection and disposal and handling of solid waste, recycling and yard trash. The fiscal impacts of this alternative will be defined once the negotiations are completed. All costs will be covered by the Solid Waste Enterprise Fund.
Alternative Recommendation B: The City Commission: 1) direct the City Manager to continue to direct the disposal and handling of residential solid waste and recycling to the Leveda Brown Environmental Facility until September 30, 2009; and 2) direct the City Manager to prepare bid specifications for both the collection and disposal of residential solid waste and handling of recycling and yard trash for bid in FY 2009 with an implementation date of October 1, 2009. The fiscal impact of this alternative is that all costs would be covered by the Solid Waste Enterprise Fund.