Laura J. Weber Solid Waste Project Manager St. Regis Mohawk Tribe ITEP Tribal Transfer Station Course

Laura J. Weber ITEP Tribal Transfer Station Course  Annual Operating Budget  Full Cost Accounting  Understanding Costs  Example of how to use Full Cost Accounting  Key points to remember

Laura J. Weber  Need to develop an annual operating budget for transfer station ITEP Tribal Transfer Station Course Budget CategoryTotal Operating Budget Personnel Fringe Benefits Contractual Telephone Disposal Fees Supplies Postage Insurance Advertising Maintenance-Vehicle Maintenance-Equipment Travel Training Mileage Fuel Equipment Rental Equipment Indirect Total Operating Budget

Laura J. Weber  Is a systematic approach for identifying, summing, and reporting the actual costs of solid waste management  Takes into account past & future outlays, overhead (oversight & support services) costs, and operating costs Source: into.pdf ITEP Tribal Transfer Station Course

Laura J. Weber  A solid waste management system consists of various activities and paths.  Activities-building blocks of system – what you do  Waste collection, operation of transfer stations, transportation, waste processing, disposal, and any sale of by- products  Paths – is what happens to the solid wastes  Recycling, composting, waste-to-energy, land disposal  Follows from generation to disposal  The costs of activities & paths determine your total costs to manage solid wastes ITEP Tribal Transfer Station Course

Laura J. Weber ITEP Tribal Transfer Station Course Cost to store, handle, haul out, dispose, & haul back

Laura J. Weber  Set rates/tipping Fees  Analyze alternative options for collection, processing, disposal, etc. etc.  Justify budget requests  Target cost reduction efforts  Determine actual program costs  Plan new facilities  Communicate cost information ITEP Tribal Transfer Station Course

Laura J. Weber  Hypothetical Indian Community  Robin River Reservation  Community of 8,000 people, located in rural Maine  Generate 10 tons/day of MSW=3,560 tons/year  Generate 0.5 ton/day of mixed recyclables=183 tons/yr  Have a direct discharge transfer station that employees 3 full time operational staff, 2 full time management staff, and receives support services from other Tribal departments  There is a county transfer station located 12 miles and county landfill located 30 miles from reservation ITEP Tribal Transfer Station Course

Laura J. Weber  Hypothetical Indian Community  Robin River Reservation  MSW is directly discharged by customers into compaction trailer & contracts with hauler to haul  Mixed recyclables are directly discharged into roll off recycling container, receives no revenue from sale of recyclables, & contracts with hauler to haul  Robin River Tribe provides collection services & community are also allowed to self-haul to transfer station ITEP Tribal Transfer Station Course

Laura J. Weber  Questions:  What is the tip fee that should be charged to breakeven for MSW & recyclables?  What is the cost/hour to operate the collection vehicle? ITEP Tribal Transfer Station Course

Laura J. Weber ITEP Tribal Transfer Station Course MSW Collection Transfer Station TransportLandfill Collection Activity Transfer Station Activity Transport Activity Landfill or MRF Activity Recyclables Collection Transfer Station TransportMRF

Laura J. Weber ITEP Tribal Transfer Station Course Must allocate budget categories to their activities in order to determine the activity cost Budget CategoryTotal Operating Budget Personnel$163,916 Fringe Benefits$54,381 Contractual$1,200 Telephone$6,077 Disposal Fees, includes hauling costs$319,129 Supplies$21,129 Postage$335 Insurance$440 Advertising$3,173 Maintenance-Vehicle$2,104 Maintenance-Equipment$5,503 Travel$1,400 Training$1,000 Mileage$500 Fuel$12,000 Equipment Rental$10,410 Equipment$10,000 Indirect$29,938 Total Operating Budget$642,635

Laura J. Weber ITEP Tribal Transfer Station Course Approach to assigning budget categories to activity costs Collection Activity Costs (CAC) Personnel + fringe benefits + disposal fee + maintenance vehicle + fuel Collection Activity Costs (CAC) Personnel + fringe benefits + disposal fee + maintenance vehicle + fuel Transfer Station Activity Costs (TSAC) Personnel + fringe benefits + maintenance equipment + fuel Transfer Station Activity Costs (TSAC) Personnel + fringe benefits + maintenance equipment + fuel Transport Activity Costs (TAC) Hauling Costs Transport Activity Costs (TAC) Hauling Costs Landfill or MRF Activity Costs (LAMRC) Disposal Costs Landfill or MRF Activity Costs (LAMRC) Disposal Costs What about the other budget categories? Contractual, telephone, supplies, postage, insurance, advertising, travel, training, mileage, equipment rental, equipment, indirect What about the other budget categories? Contractual, telephone, supplies, postage, insurance, advertising, travel, training, mileage, equipment rental, equipment, indirect

Laura J. Weber ITEP Tribal Transfer Station Course Budget Category Total Operating Budget (TOB) Collection Allocation (20% of TOB) TS Allocation (80% of TOB) Personnel$163,916$32,783$131,133 Fringe Benefits$54,381$10,876$43,505 Contractual$1,200$240$960 Telephone$6,077$1,215$4,862 Disposal Fees$319,129$63,826$255,303 Supplies$21,129$4,226$16,903 Postage$335$67$268 Insurance$440$88$352 Advertising$3,173$635$2,538 Maintenance-Vehicle$2,104 $0 Maintenance-Equipment$5,503$0$5,503 Travel$1,400$280$1,120 Training$1,000$200$800 Mileage$500$100$400 Fuel$12,000$10,000$2,000 Equipment Rental$10,410$0$10,410 Equipment$10,000$0$10,000 Indirect$29,938$5,988$23,950 Total Operating Budget$642,635$132,628$510,007

Laura J. Weber ITEP Tribal Transfer Station Course MSW Collection Transfer Station TransportLandfill Collection Activity Transfer Station Activity Transport Activity Landfill or MRF Activity Recyclables Collection Transfer Station TransportMRF Cost/ton = (Transfer Station Activity Cost + Transport Activity Cost + Landfill or MRF Activity Cost) / total tons Cost/ton calculation excludes collection activity

Laura J. Weber ITEP Tribal Transfer Station Course MSW & Recyclables Cost/ton Calculation Budget Category TS Allocation (80% of TOB) Recyclables Allocation (10% of TS Allocation) MSW Allocation (90% of TS Allocation) Personnel$131,133$13,113$118,020 Fringe Benefits$43,505$4,350$39,154 Contractual$960$96$864 Telephone$4,862$486$4,375 Disposal Fees (See note below)$255,303$25,530$229,773 Supplies$16,903$1,690$15,213 Postage$268$27$241 Insurance$352$35$317 Advertising$2,538$254$2,285 Maintenance-Vehicle$0 Maintenance-Equipment$5,503$550$4,953 Travel$1,120$112$1,008 Training$800$80$720 Mileage$400$40$360 Fuel$2,000$200$1,800 Equipment Rental$10,410$1,041$9,369 Equipment$10,000$1,000$9,000 Indirect$23,950$2,395$21,555 Total Operating Budget$510,007$51,001$459,007 MSW Generation = 10 tons/day = 3,560 tons/year Recyclables Generation = 0.5 tons/day = 183 tons/year MSW = $129/ton ($459,007/3560 ) Recyclables = $279/ton ($51,001/183) MSW Generation = 10 tons/day = 3,560 tons/year Recyclables Generation = 0.5 tons/day = 183 tons/year MSW = $129/ton ($459,007/3560 ) Recyclables = $279/ton ($51,001/183) Note: Disposal Fee includes transport activity costs and landfill activity costs for MSW or MRF activity costs for recyclables

Laura J. Weber ITEP Tribal Transfer Station Course Total Operating Hours for Truck Recyclable Collection = 187 hrs/year MSW Collection = 1685 hrs/year Recyclable Collection Cost = $70/hr ($13,263/187) MSW Collection Cost = $70/hr ($119,365/1685) Total Operating Hours for Truck Recyclable Collection = 187 hrs/year MSW Collection = 1685 hrs/year Recyclable Collection Cost = $70/hr ($13,263/187) MSW Collection Cost = $70/hr ($119,365/1685) Budget Category Collection Allocation (20% of TOB) Recyclables Collection Allocation (10% of Collection TOB) MSW Collection Allocation (90% of Collection TOB) Personnel$32,783$3,278$29,505 Fringe Benefits$10,876$1,088$9,789 Contractual$240$24$216 Telephone$1,215$122$1,094 Disposal Fees (See note below)$63,826$6,383$57,443 Supplies$4,226$423$3,803 Postage$67$7$60 Insurance$88$9$79 Advertising$635$63$571 Maintenance-Vehicle$2,104$210$1,894 Maintenance-Equipment$0 Travel$280$28$252 Training$200$20$180 Mileage$100$10$90 Fuel$10,000$1,000$9,000 Equipment Rental$0 Equipment$0 Indirect$5,988$599$5,389 Total Operating Budget$132,628$13,263$119,365 Note: Disposal Fee includes transport activity costs and landfill activity costs for MSW or MRF activity costs for recyclables

Laura J. Weber ITEP Tribal Transfer Station Course Question: How many tons/year of recyclables and MSW does the Robin River Sanitation Department collect & bring to the transfer station? Robin River Transfer Station Total MSW = 3,560 tns/yr Total Recyclables = 183 tns/yr Robin River MSW Robin River Recyclables Other MSWOther Recyclables

Laura J. Weber  Operate your program like a business with the goal to at least breakeven  Establish fees that are reasonable considering local market conditions  Keep good data & records  Be flexible  Analyze analyze and make changes to improve your economics ITEP Tribal Transfer Station Course

Laura J. Weber ITEP Tribal Transfer Station Course Laura J. Weber Solid Waste Project Manager St. Regis Mohawk Tribe M-F, 6:30 AM -2:30 PM EST