LAKE COUNTY, Calif. – Faced with a large budget deficit in the county's Public Services Department, the Board of Supervisors on Tuesday approved the first reading of a plan to import the city of Ukiah's solid waste stream for a five-year period, and increase curbside collection and landfill rates.
Public Services Director Kim Clymire and Deputy Director Caroline Chavez had presented those measures, and several others, to the board as a way of addressing a $500,000 annual shortfall in revenue over the last three years, with another $500,000 anticipated in the coming year if action wasn't taken.
Those shortfalls in revenue have eaten up much of the department's reserves, according to Clymire and Chavez.
The most debated of the department's revenue recovery steps, the waste stream importation with Solid Waste Systems – a Lake County Waste Solutions affiliate – was passed in a 3-2 vote Tuesday, with Board members Denise Rushing and Anthony Farrington voting no.
“It was one of the hardest decisions that I've faced as a board member,” Rushing said Wednesday.
The waste stream, which will begin coming into the county in January 2012, is estimated to total 22,500 tons annually, bring in $850,000 yearly in revenue and allow for lower gate fee increases, according to Public Services.
The waste importation discussion had been held over and continued from the May 10 board meeting, at which time the board had expressed reservations about the plan and asked Public Services staff to return with more options.
Chavez said Wednesday that Public Services staff returned to the board this week with an added commitment from Solid Waste Solutions to look at the feasibility of constructing what's called a “dirty MRF” in Lakeport.
A materials recovery facility, or MRF, separates trash from recyclables. Chavez said the agreement would require that two years from the contract's start date on Jan. 1, 2012, the waste company would need to return to the county and let them know if it's feasible to build such a facility.
At that point, the company and the Board of Supervisors would meet and confer, and the board would then decide whether or not to commit to a five-year extension of the waste importation agreement, Chavez said.
Chavez said the facility would handle both the Ukiah and Lake County waste streams, which could potentially further reduce the waste going into the Eastlake Landfill by about 30 percent.
She said the company believes that both waste streams could potentially support the facility in terms of flow and the dollars that could be recovered.
Rushing said that everything in solid waste management involves capital investment, and pointed out that it isn't yet known what it will take to get the proposed MRF facility open in the county.
Rushing, who along with Supervisor Jeff Smith sits on the Solid Waste Task Force, said she was concerned that the board received more information about the plan at the last minute. As a result she was concerned about making a decision of such significance without the information or understanding she would have liked to have had.
She said she and Farrington felt it was important to keep the existing landfill open as long as possible rather than changing the existing footprint, which brings with it monitoring challenges. That meant finding ways not to fill it up.
There are also many variables that need to be considered, she said, including the fact that the county's entire mobile home stock is reaching the end of its useful life, with many of those homes possibly headed for the landfill at some point.
In the end, if the MRF is eventually built and there is a reduction in the landfill waste stream, “It could be a very good decision,” said Rushing.
Besides the waste importation, department officials also had suggested a 39-percent gate fee increase to help offset the $500,000 annual deficit, although they explained that the increased gate fee wouldn't help the department address its rising compliance, reserve or expansion costs.
Chavez said that it would have required a 95-percent gate fee increase to match the revenue the waste import plan will provide.
The board on Tuesday accepted a smaller gate fee increase than originally proposed. In a 4-1 vote, with Farrington voting no, the supervisors approved a 16-percent gate fee increase at the landfill, which would be followed by a 6-percent annual increase over the following four years.
The supervisors also approved Amendment No. 5 to the agreement between the county of Lake and its franchise haulers – Lake County Waste Solutions Inc. and South Lake Refuse-Recycling LLC – to implement a quarterly variable fuel surcharge on curbside service rates. Farrington also voted no on that measure.
The surcharge, which will adjust every three months, will be a line item on bills so customers can track the changes, Chavez said.
Chavez said the fee will be passed through to customers, amount to about 2 to 3 percent more per month – or between 22 and 33 cents – on bills for Lake County Waste Solutions customers in the unincorporated area of the county. She didn't have calculations for customers in the cities of Lakeport and Clearlake.
On top of Public Services' revenue concerns, department officials reported that compliance requirements – such as a $3 million new full landfill gas system that will be required within the next few years under state legislation, AB 32 – are piling on.
“The compliance issues keep coming,” said Chavez.
“We're constantly getting new requirements and they cost money,” she added.
In addition to those growing costs, she said the department spends more than $100,000 annually on fuel, and more than $120,000 each year on equipment repair.
She said the department has been undertaking cost-saving measures. Two years ago, it closed the Lakeport transfer station to save $300,000 annually. The department also is proposing to eliminate an analyst's position in the department that recently was vacated.
Closing the landfill two days a week also was considered but abandoned. “It wouldn't be serving the public,” Chavez said.
Chavez said the ordinance will return to the board for a second reading on June 7, and will go into effect 30 days afterward.
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052411 BOS - Public Services Staff Report