Presentation on theme: "Pescadero Transfer Station Has served our community since 1986 We cannot afford to loose this asset."— Presentation transcript:
Pescadero Transfer Station Has served our community since 1986 We cannot afford to loose this asset
Funding The Countys Solid Waste Fund (SWF) shouldered the lions share of the cost to operate PTS In addition to our transfer station the SWF is used elsewhere. One example is closing of the Pescadero landfill which recently applied for an Amendment to their CDP [for rehabilitation and replacement of disturbed wetlands]. The SWF has no new sources of revenues replenishing it Without remedial action the SWF will be exhausted in a few years and as a result our Transfer Station closes
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
Results of the 2007 Survey and subsequent negotiations The compactor on site was not worthy of repair and was targeted for removal. The gate keepers house atop the compactor needed to be replaced Recycling was to be made easier and have a broader scope. Gate fees were adjusted; increasing the cost to dispose of a 32 gallon can of trash from $1 to $4. Several of the new fees were/are illogical.
Current Operating Contract The current site operator is Allied Waste. Their contract runs through August The net cost to the county to operate PTS is approximately $14,000/month – This includes the revenues of the then revised gate rate structure. At this rate PTS was/is running a deficit of approximately $165,000/year.
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 made presentations to PMAC and the community during 2010 &2011 about the Transfer Station. Their goal being a zero subsidy from the County.
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 Transfer Station going forward PMAC asked for the opportunity to analyze the financials of the operation and make any appropriate suggestions
PTS Financial Analysis The analysis showed several opportunities to make the operation more efficient/less costly. – Monthly operating costs are not sustainable. The analysis highlighted a potential new revenue stream through more effective recycling. A best practices and gate rate review of similar facilities was done. – Clearly showed PTS gate rates were not comparable and would not sustain the facility.
Cooperative Discussions Meetings with Allied Waste, DPW and PMAC representatives were held to discuss opportunities, reduce costs and resolve issues. – The County suggested a feasibility study for the site to determine other potential revenue sources to offset the subsidy. – Analyze restructured gate rates that would be palatable yet make a marked difference. – Analyze the impact of changing recyclables from a cost item to a revenue i tem A waste characterization study was conducted by L4 Strategies a private consultant. This was funded by the county. The purpose was to determine what commodity value exists in PTS recyclables. – An RFP could be issued searching for a new site operator if we could not manage to find ways to sufficiently reduce costs/increase revenues.
Recyclable Characterization Study L4 Strategies was hired by the county to determine the potential value of Pescadero Recyclables. L4 sorted 100% of two full containers of Pescadero recyclables
Recyclable Charts Two Containers 3,100/lbs recyclable material Very little trash about 5%
Recyclable Charts Each container recycle value $293 less $82.00 to process: Each Container $ recycle value During the 12 months of our analysis 131 containers (211Tn) passed through the transfer station. 131 containers x $211/container Equal: $27,600 recycle value
Options Discussed at a PMAC Meeting for Public Comment 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 PTS 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 $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/Seniors: $5
PTS Monthly Averages
Low/Fixed Income and Seniors Out of Area Users Devising a rate structure that takes into account of all levels of our community was an important goal – Low and fixed income residents will receive a discounted rate on all single can usage ($5) – Seniors will receive a discounted rate ($5) – Out of area users will pay twice the gate rate. Pescadero users will be issued color coded cards to be shown when at the transfer station
Pescadero Card Holders PMAC will plan and hold sign-up gatherings. – The details of these gatherings will be discussed at a later date. At the sign-up events, a person/family presents their drivers license or other identification which shows their address. – This information is entered onto a form from which the cards will be made and then sent to the person or family.
Pescadero Cards With the assistance of Puente, low and fixed income people/families will be identified and validated. Seniors can/will be acknowledged at sign-up. – This year anyone with a birth year of 1947 or before qualifies as a senior. Three colors will be used for the cards: – Blue [standard]; Yellow [low/fixed]; Orange [Seniors]
Pescadero Cards If a user has not signed up and arrives at the transfer station, the attendant will charge the standard rate but will also complete the information form. – A PMAC rep will collect the forms and prepare the cards. Out of area users will be asked to produce their drivers license. – They will be charged the standard rate but will be told their rate in the future will be twice the standard gate.
Result of Cooperative Discussions Reduce days of operation from 5 to 3: – $28,000 annual savings Adjust Gate Fees: – $36,000 annual revenue increase Other Contract Reductions from AW: – $47,000 annual savings Total cost reductions and increased revenues: – Reduce deficit by $111,000 approximately Additionally
The New Look GOODWILL: Recycle E-Waste, among other items
Goodwill Trailer in Residence E-Waste: – Sold and recycled to benefit Goodwill Furniture, Clothing, Books etc – Recycled back into the community And the latest Development
The New Look Compactor for Recyclables In Place Now, Operational by July 13, 2012
Compactor for Recyclables Brought to the site last week should be operational by the end of this week. The compactor does not directly reduce the cost to the county but it shows AW is trying to make their operation more efficient.
Summation A real collaborative/cooperative effort brought about Solid/bankable solutions which will keep our Transfer Station open into the future. We hope to implement all these changes by October/November, 2012.