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Solid Waste Ag - Landfill FeesJOAN BODNAR-NOON Personnel Assistant 563-589-4445 DUBUQUE COUNTY COURTHOUSE DUBUQUE, IOWA 52001-7079 JAN HESS Personnel Director Administrative Assistant 563-589-4462 TO:Dubuque County Municipalities RE:Fiscal Year 2004 landfill fees and budget FROM:Jan Hess, Secretary Dubuque Metropolitan Area Solid Waste Agency DATE:December 19, 2002 Attached for your information 1. A copy of fiscal year 2004 landfill fees as adopted by the Dubuque Metropolitan Area Solid Waste Agency Board at their meeting of December 18, 2002. 2. A copy of the expeniture and revenue budget for the Agency for fiscal year 2004 as adopted by the Agency Board at their meeting of December 18, 2002. 3. A copy of the minutes of the Agency Board form that meeting. 720 CENTRAL AVE. DUBUQUE, IA 52001-7079 · FAX: 563-589-7884 · EMAIL: personneH @dbqco. org DUBUQUE METROPOLITAN AREA SOLID WASTE AGENCY FY 2004 GATE/TIPPING FEES Solid Wastes Yard Wastes Special Wastes Appliances Friable ACM Non-fiSable ACM Non-planning area Friable ACM Non-planning area Non-Friable ACM Tires (unmounted) - Automobile Pick-Up Track Large Truck Other Minimum Charge Compgst $ 30.48 per ton $ 23.00 per ton $ 60.96 per ton $ 9.00 each $ 60.96 per ton $ 60.96 per ton $100.00 per ton $ 75.00 per ton $ 1.45 each $ 3.00 each $ 3.65 each $145.00 per ton $ 6.00 per vehicle $ 5.00 per cubic yard ($2.00 mirfimum) DUBUQUE METROPOLITAN AREA SOLID WASTE AGENCY FY04 PROPOSED BUDGET Landfill Operations Operating Budget Employee Expense Supplies and Service Administrative Overhead Payroll Overhead Finance/Legal/Billing Overhead $ 565,547 899,286 30,976 1,765 32,629 $1,530,203 Yard Waste Processing Operating Budget Employee Expense Supplies and Services Administrative Overhead $ 32,749 38,357 3,098 $ 74,2O4 HHMRCC Operating Budget Employee Expense Supplies and Services Administrative Overhead $ 13,907 48,665 3,098 $ 65,907 Education/Communication Operating Budget Employee Expense Supplies and Services Administrative Overhead $ 51,499 15,310 3,098 $ 69,9O7 Programs Budget Planning Reserve Expenditures Waste Minimization Grants Airspace/Dirt Use/Compaction Study Equipment Budget Crawler/dozer $ 50,000 100,000 t0,000 $ 180,000 Capital Project Budget Cells #7 and #8 Soil Borrow Site $1,500,000 195,000 $1,695,000 TOTAL PROPOSED FY2004 BUDGET $3,774,984 budget\lfoprbudg.doc DUBUQUE METROPOLITAN AREA SOLID WASTE AGENCY PROJECTED FY04 REVENUE STRUCTURE SCENARIO #2 - TONNAGE FEE INCREASED 75¢ Agency TotalFund's Balance: June 30,1995 June 30,1996 June 30,1997 June 30,1998 June 30,1999 June 30,2000 June 30,2001 June 30,2002 June 30,2003 Anticipated Receipts: 7/1/03 through 6/30/04: Fees - Cash Fees - Charge Investment Earnings State Grants (HHMRCC) Interest - Accounts Receivable Land Rental Sales Tax Collected HHMRCC Fees $4,236,660 $5,456,989 $5,682,959 $6,072,843 $7,250,905 $7,814,916 $7,026,338 $8,913,114 $8,259,278* $ 298,605 2,075,256 249,778 20,000 6,000 5,000 4,000 6,750 $2,665,389 Anticipated Expenditures: 7/1/03 through 6/30/04: Operating Budget Waste Minimization Grants Crawler/Dozer Cells #7 and #8 Soil Borrow Site Planning Reserve Expenditures Airspace/Dirt Use/Compaction Study $1,739,984 !00,000 180,000 1,500,000 195,000 50,000 10.000 $3,774,984'* Anticipated Totai Funds'Balance*: June 30,2004 $7.149.683' * Anticipated and equals all five reserve funds budget\dmgatfe2.bdg DUBUQUE I~ETROPOLITAN AREA SOLID WASTE AGENCY SCENARIO #2 - TONNAGE FEE INCREASED 75¢ ANTICIPATED RESERVE FUND BALANCES JUNE 30, 2004 Financial Assurance Fund (mandatory) IDNR Planning Fund (mandatory) IDNR Waste Minimization Grant Fund (mandatory) Capital Project/Equipment/Contingency Fund (voluntary) Operating Reserve Fund (voluntary) TOTAL ALLOCATED RESERVES* $2,353,467 237,648 158,295 4,221,055 179,218 $7,149,683' * Equals total Agency funds 5udget',dmsgtfe2.bdg DUBUQUE METROPOLITAN AREA SOLID WASTE AGENCY PROPOSED FIVE YEAR CAPITAL PROJECT, EQUIPMENT PROCUREMENT AND PROGRAM BUDGET SCHEDULE Vehicle # Anticipated Equipment Purchases Description Fiscal Year Cost 3455 3456 3453 3463 3450 Project Crawler/Dozer 2004 $180,000 Crawler/Dozer 2005 $180,000 Trash Compactor 2005 $375,000 Pickup Truck 2006 $25,000 Pickup Truck 2008 $25,000 Anticipated Capital Projects Fiscal Year Cost Cells #7 and #8 Construction Soil Borrow Site Cells #3 and #4 Closure Cells #5 and #6 Closure Cells #9 and #10 Construction Program 2004 2004 2005 2007 2007 Anticipated Programs Fiscal Year $1,500,000 $ 195,000 $1,400,000 $1,400,000 $1,500,000 Cost Planning Reserve Expenditures Waste Minimization Local Grants Airspace/Dir[ Use/Compaction Study Strategic Planning Program Comprehensive Plan Update Operations Analysis Financial Systems Analysis Annual Annual Annual 2005 2005 2006 2006 $ 50,000/year $100,000/year $ 10,000/year $ 10,000 $ 10,000 $ 15,000 $ 10,000 budget\dmasequLbud MINUTES OF MEETING OF DUBUQUE METROPOLITAN AREA SOLID WASTE AGENCY December 18, 2002 MEMBERS PRESENT:Dan Nicholson, Alan Mantemach, Ann Michalski STAFF PRESENT:Don Vogt, Jan Hess, Paul Schnltz, Tom Driscoll, Nancy Otterbeck OTHERS PRESENT:Bob Bamsey, Steve Cavanaugh, Bob Nagle Teri Nagle, Sharon Manternach, Barbara Nicholson, Jay Walton, Kristen Bobb, Sue Kluesner, Coras Kluesner The meeting was called to order at 4:35 p.m. by Chairperson Dan Nicholson at Country Junction Restaurant, Dyersville, Iowa. Ms. Michalski moved, Mr. Manternach seconded, carried unanimously to approve the minutes of the meeting of November 13, 2002. Mr. Mantemach moved, Ms. Michalski seconded, carried unanimously to approve and authorize the chairperson to sign a Waste Delivery Contract with the City of Cascade. Mr. Manternach moved, Ms. Michalski seconded, carried unanimously to approve and authorize the chairperson to sign a cone:act with Greenman Technologies of Iowa at $95 per ton for piclcap, hauling and recycling of tires for a the period January 1, 2003 to June 30, 2004. Mr. Vogt explained that factoring in the additional charge quoted for hauling by the other bidder, and missing documents made the Greenman bid low. Ms. Michalski moved, Mr: Mantemach seconded, carried unanimously ~o approve and authorize the chairperson to sign a contract with CSG Services for pickup, hauling and recycling of appliances at $8.25 per unit for the period January 1, 2003 to June 30, 2004. Ms. Michalski moved, Mr. Manternach seconded, carried unanimously to authorize a response to a communication from the League of Women Voters of Dubuque, Wiflch made recommendations for the Comprehensive Plan Update, and direct that the League's communication and the response be forwarded to the Iowa Department of Natural Resources. Page 1 Mr. Vogt presented a cover letter to accompany documents detailing the correspondence between the Agency and the Postal Services about the mailing debacle with the "Garbage Guide" to Congressman Nnssle, as directed at the meeting of November 13. · Mr. Mantemach suggested forgetting it and moving on, noting projected waste of staff time and paper at the Federal level. Ms. Michalski commented that the relevant Postal Service Regulation probably exists to prevent fraud, but said it's too bad when the victim is another governmental entity. Mr. Nicholson said that the Agency staff did the right thing to attempt to recoup the Agency's investment and not waste paper and said he would mention the matter to Congressman Nussle. Ms. Michalski suggested adding an additional paragraph to the letter saying that the purpose of writing is to prevent similar incidents in the future. Mr. Mantemach moved, Ms. Michalski seconded, carried unanimously to drop the issue· Ms. Michalski moved, Mr. Mantemach seconded, carried unanimously to approve and authorize the Chair-person to sign an agreement with Allied/BFI for the Material Recovew Facility (MRF) on Radford Road beginning January 1, 2003 subject to examination by the Agency's legal advisor and a conference call meeting December 30, 2002 for final approval of the Board. Mr. Schultz explained that the contract will require the Agency to pay a per ton fee for recyclables in accordance with market indicators; if the of recyclables price raises, the Company would pay the Agency. Mir. Vogt said that the contract will go through Jtme 30, 2006. Mr. Vogt said that there is provision for a mutually agreeable end to the contract but no prevision for unilateral termination. He noted that there is a performance bond required for noncompliance. Mr. Vogt presented budget document with various scenarios for future fee increases allowed in dehvery contracts. He said that within the constraints of the contracts, he prepared fora- expense-revenue scenarios. He noted that there operating budget has three cost centers, and a combined cost center for the Regional Recycling Center and education. He added that the DN-R had encouraged him to make education as separate cost center. He said that he had also made adjustments in anticipation of hiring a landfill administrator, with reductions to reflect less of his own time. He note the need/or a dirt-hauling contract under "miscellaneous and that he had increased the line item for increased payments to Allied/BFI for recycling. Other operating budget under constraints provided by the City of Dubuque budgeting department for anticipated costs of fuel, etc. Page 2 He said that revenue projections were based on 86,000 ton to be landfilled, as contrasted with the current budget which anticipated 95,000 ton. He added that ail scenarios anticipate building the last cell of the first generation, and the first two cells of the next generation, replacing heavy equipment, capping four ceils, and purchasing two soil borrow sites. Mr. Vogt said with all scenarios, the numbers prove out the Agency is still solvent during the next 5 years using FY 2003 assumptions. Ms. Michalski referred to FY 02 figures provided and the fact that with ail scenarios the allocated reserves go down during the next five years. She asked if the Agency could be assured that allocated reserves are adequate. She then asked which scenario of the four would be most likely and when the Agency needed to make a decision on the budget. Mr. Vogt replied that actual allocated reserves at the end of fiscal year were $8,913,114 and anticipated balances at the end of fiscal year are $8,259,278., noting that this includes the current MRF negotiation. He said that includes anticipated loan repayment from the City of Dubuque. Mr. Vogt said that staff was recommending no fee increase for fiscal year 04, but would anticipate fee increases down the road. He said that Scenario Number. #3 anticipates fee increases in 05 and 07 and #2 anticipates $.75 every year. He said that Scenario #4 is most likely. Mr. Michalski asked if the decision needed to be done that day. Mr. Vogt said that the budget is supposed to be done in December so that furore fee structure can be sent to municipalities in December for their budgeting purposes. Mr. Nicholson clarified that in Scenarios #3 or g4, there is a $.75 in 05 and 07. Mr. Vogt said that unless something strange happens, Cost Of Living figares compute to less than $.75, and the contracts have only the option for increase in Cost Of Living or $.75, whichever is greater. Mr. Mantemach asked whether the Agency could pass up an increase one year, mud then raise add the two increases together the next year if necassary. Vogt said that was grey in the last contract. However, he said, that the new contract would probably prohibit that.. Ms. Michaiski said that the Agency needs to review budgets carefally iftormage continues to fall, which result in problems with reserves. She noted that she had voiced that concern at the November 19 Board meeting. Mr. Mantemach said that the fee at the landfill is at bottom end of the scale on tonnage fees with other landfills. Page 3 Mr. Manternach said that he was concerned about costs falling back on the property tax; Ms. Michalsld said she was concerned about that, and about required reserves failing. Mr. Manternach moved, Ms. Michalsld seconded, carried unanimously to increase the landfill fee by $.75 per ton for fiscal year 2004. Mr. Vogt said that the average homeowner would pay approximately $.03 per more month. Mr. Manternach moved, Ms. Michaiski seconded, carried unanimously to adopt the following resolutions. Resolution Number 03-02 Whereas, an ordinance passed and adopted by the Agency on April 26, 1976, requires the preparation and adoption of an annual operating budget; and Whereas, the requirements are for the preparation and adoption by resolution of a detailed budget of revenue and expenses; and , Whereas, following the adoption of a resolution approving the budget the ordinance stipulates that copies of the budget shall be mailed to municipalities in Dubuque County. Now therefore be it resolved by the Directors of the Dubuque Metropolitan Area Solid Waste Agency: Section 1. That the official budget for Fiscal Year 2004 by and is hereby adopted as shown on the attached. Section 2. That the Secretary of the Agency be authorized and directed to forward copies of the approved budget for Fiscal Year 2004 to the member mmnicipalities of Dubuque County. Resolution Number 04-02 \Vl~ereas, mn ordinance passed and adopted by the Dubuque Meh-opolitan Area solid Waste Agency on April 26, 1976 requires the preparation and adoption of an annual tipping fee structure; and Whereas, following the adoption of a resolution approving the tipping fees the ordinance stipulates that copies of the budget shall be mailed to municipalities in Dubuque County. Now therefore be it resolved by the Directors of the Dubuque Metropolitan Area Solid Waste Agency: Page 4 Section 1. That the solid waste tipping fee be established at $ per ton, for any special wastes as authorized the tipping fee be established at $ per ton, and any yard waste the tipping fee be established at $ per ton, all effective on July I, 2003. Section 2. That the Secretary of the Agency be authorized and directed to forward copies of the approved tipping fees for Fiscal Year 2004 to the member municipalities of Dubuque County. There was discussion of ancillary fees. Mr. Vogt noted that the document lists appliances $9 per ton, which should be per unit and brought up the earlier action in which the Agency would pay only $8.25 per unit. There was consensus to leave the fee at $9 per unit. There was discussion of the yard waste fee. Ms. Michalski suggested leaving it as is for this budget year and asked for a study to resolve yard waste issues. Ms. Michalski moved, Mr. Maniemach seconded, carried unanimously to approve the ancillary fee schedule for fiscal year 2004, leaving the ym'd waste fee at $23 per ton. Under staffreports, Ms. Michalski noted the issue of how hard it is to communicate with only three board members, since two members constitute a quorum. Mr. Nicholson asked about disposal of deer carcasses.. Mr. Vogt said that the DlCR recommends that the landfill keep taking them or directs that the Agency would have to provide another source to take them otherwise. Mr. Vogt said he would keep the Board apprized of this issue. Ms. Michalski moved, Mr. Manternach seconded, carded unanimously to receive and file staffreports. There was discussion of possible dates in January for the next Board meeting. Ms. Michalski moved, Mr. Mantemach seconded to go into closed session to discuss possible purchase of real estate under Chapter 21.5-1.j of the Code of Iowa at 5:40 p.m. Upon motion of Mr. Mantemach, seconded by Ms. Michalski, carried unanimously, the Mr. Mantemach moved, Ms. Michalski seconded, carried unanimously to adjourn at 5:55 p.m. Jan Hess, Secretary Page 5