Presentation on theme: "Pescadero Transfer Station Has served the community from 1986 to the Present We cannot afford to lose this asset."— Presentation transcript:
Pescadero Transfer Station Has served the community from 1986 to the Present We cannot afford to lose this asset
Funding From inception the Countys Solid Waste Fund (SWF) shouldered the lions share of the burden During the year 2007 the SWF was being drawn down at a rate over $300,000/yr The SWF has no new sources of revenues replenishing it Without remedial action the SWF will be exhausted and as a result the Transfer Station closes
Solid Waste Fund Pescadero Transfer Station(PTS) is the only program funded by the SWF that is not a mandated program The mandated programs currently using the fund are: 3 closed landfills, National Pollutant Discharge Elimination System (NPDES storm water requirements) required by the State The projection for the SFWs total depletion is fiscal year 2015/2016
Past Actions to Prolong the Life of the PTS The County conducted a month long survey in 2007 to determine PTS usage The survey was in preparation of an Request for Proposals (RFP) to be issued the following year PMAC was brought into the loop through community presentations by DPW personnel (managers of the asset) And PMAC input into the RFP process was provided by Rodger Reinhart and Catherine Peery
Past Actions to Prolong the Life of the PTS A number of things were reviewed with the community from the survey and new contract negotiations. As a result the PTS – Replaced the gate house – Expanded recycling opportunities – Gate rate adjustments (from $1.00 to $4.00 per 32 gallon can)
Current Operating Contract & Site Renovations Of the two responding companies, Allied Waste offered the lowest cost alternative. The contract term is from July 2008 to August 2015. The RFP outlined several improvements at the site. Improvement costs were approximately $100,000
Impact of Current Contract Reduced the annual operating subsidy (draw down on the SWF) from approximately $300,000 to todays deficit of approximately $165,000 The PTS operates 5 days per week with a very reliable Allied Waste employee to serve us
County Required to Reduce Costs Due to the economic times the County is running a deficit of about $54 million County management was asked to look at their operations and recommend areas where costs could be reduced or at least controlled DPW personnel realizing no new revenues would feed the SWF, discussions were held within the community (2010 and 2011) to review future options for the PTS The goal being a zero subsidy from the SWF
PMAC & PTS Various PMAC members met with the County during the Summer/Fall of 2011 The intent of the meetings were to work together with the County to find ways to reduce costs and maintain the PTS going forward PMAC asked for the opportunity to analyze the financials of the operation and make any appropriate suggestions
PTS Financial Analysis During the analysis, PMAC members offered several suggestions that might reduce the PTS operating costs During the Fall of 2011 PMAC suggested the County turn the PTS into a community based operation which we (PMAC) believe could reduce costs by 50% by hiring a non-profit (to be determined) entity to manage the PTS. This community based operation concept would require review by the various departments: County Council, County Risk Management, County Real Property, and State and local planning commissions.
Plans Moving Forward A new RFP was recommended Discussions with Allied Waste, DPW and PMAC representatives were held The County has suggested a feasibility study for the site to determine other potential revenue sources to offset the subsidy rather than a RFP process that potentially replaces the current contractor. Prior to issuing a RFP we must look at ways to restructure the PTS and how we pay for it. The RFP process will take some time to assemble, distribute, and review. A waste characterization study is currently being conducted on two of the recycling boxes to determine what commodity value exists in the boxes.
Options Discussed for Public Comments Reducing the current days of operation from 5 to 3 days reduces costs by $28,000/yr (Thursday, Friday, and Saturday or Friday, Saturday, Sunday) Restructuring gate rates to align with other similar facilities in the area.
Gate Rate Restructure The vast majority of transactions at the T/S is the single can dump: Currently $4.00 per 32 gallon can This accounts for 80% of the activity and 25% of the income
Single Can Rate The proposal includes four items: – Increase the size of the can from 32 gallons to 45 gallons – Increase cost a single can dump from $4 to $11 – Restructure cost of second and third cans to be equal to the first. All cans @ $11. – Issue waivers for fixed and low income folks
Other Items Re-priced Small adjustments were made to the following items. – General debris and wood waste: $22.25 and 24 to $26/CY – Mattresses: $3 to $11 – Sofas: $6.50 to $11 – Low/fixed income cans: $5
PTS Monthly Averages
Summation Proposed Gate Rates will net over $36,000/yr Reduction in days of operation will net: $28,000/yr If these changes are put into place the life of the basic T/S operation is extended Contract re-negotiations with Allied Waste is being studied by County DPW Management.