KITSAP COUNTY SOLID WASTE ADVISORY COMMITTEE AGENDA
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3 KITSAP COUNTY SOLID WASTE ADVISORY COMMITTEE City of Bremerton Utilities Building 100 Oyster Bay Ave N Bremerton, WA Date: October 4, 2017 Time: 4:00PM AGENDA APPROVAL OF AGENDA APPROVAL OF MINUTES CORRESPONDENCE KCPW Pat Campbell Initial Discussion of OVTS, RAGF Rate Study ROUND TABLE DISCUSSION PUBLIC COMMENTS
4 SOLID WASTE ADVISORY COMMITTEE (SWAC) MEETING MINUTES - October 4, 2017 Those present: Regional/Cities: City of Bremerton Wayne Hamilton, City of Port Orchard Stephanie Bailey, City of Poulsbo Shannon Wood, North Kitsap Douglas Chamberlain, South Kitsap Eric Lenius; Industry: Waste Management Joey Pellecchia; Suquamish Tribe Dee Williams, Jaime Lawrence KCPW SWD: Pat Campbell, John Steinmetz, Barbara Bricker KPHD: Jan Brower, John Kiess Those absent: Regional/Cities: City of Bainbridge Island Diane Landry, Central Kitsap John Poppe; Organics Management Jeff West; Agriculture Erika Anderson; Industry: Bainbridge Disposal Heather Church, Port Gamble S Klallam Tribe Ashley Brown, Navy Les Hastings APPROVAL OF AGENDA KCPW SWD added work plan for Agenda was approved. APPROVAL OF THE MINUTES Minutes were approved. CORRESPONDENCE There was no correspondence. KCPW Pat Campbell Preliminary discussion of Olympic View Transfer Station (OVTS) rate-setting issues (Handout attached.) Pat Campbell presented several issues for consideration in setting rates at OVTS for discussion and input from SWAC. a) Increased support of Kitsap Public Health District (KPHD) Solid and Hazardous Waste Programs Summary: State grant funding decreases have left KPHD looking for stable annual funding for solid and hazardous waste programs from other sources such as tipping fees and permit fees, in order to keep long term programs going. Currently KPHD gets $2.65 per ton from tipping fees. The amount needed to fund their programs could double over the next five years, resulting in increases to tipping fees. Recommendation: SWAC members are in favor of continued funding of KPHD solid and hazardous waste support programs with the amount of increase from tipping fees to be determined. Pat asked if an annual lump sum would be better than an allocation per ton. Jan indicated that the current allocation method works for KPHD.
5 b) Local funding of Household Hazardous Waste Collection Programs Summary: Decreasing State grant funds would require either an increase in local funding through tipping fees, or decreased HHW collection services. Approximately 25% of the HHW program costs have been funded by State grants. Recommendation: SWAC members are in favor of continued support to hazardous waste collection programs, but requested that staff look into the financial impact or discontinuing the acceptance of latex paint. Another suggestion is to look at paint recycling programs. Pat indicated that the County is still supportive of a statewide paint stewardship program. c) Financial support of the Kitsap Nuisance Abatement Team (KNAT) activities Summary: The newly reactivated KNAT is seeking funds from tipping fees. This is one of many options they are investigating as a way to fund the program. Discussion: There was some discussion that this is the property owner s responsibility. Using tipping fees to fund this would be charging people who do the right thing to pay for those who do not do the right thing. Pat commented that a similar argument could be made for the use of general fund, paid by law-abiding citizens, where a significant percentage is being used for the criminal justice system. SWAC commented that funding for this program should spread among the whole population, rather than targeting just the compliers. Recommendation: SWAC members present indicated unanimously that they are not in favor of funding KNAT nuisance abatement activities through tipping fees. It was decided that SWAC would generate a letter to the KNAT committee to that affect. Chairperson Stephanie Bailey will draft a letter. d) Rate Stability Reserve Fund Summary: This fund would cushion against loss of tipping fee revenue resulting from decreases in MSW tonnage. The goal would be to maintain a balance equal to 15% of our annual revenue requirement, equal to approximately $2.6 million. e) Future Capital Improvements Summary: The SWD is planning ahead for large capital improvements, particularly improvements to Silverdale RAGF and OVTS to accommodate increasing customer counts and larger volumes, now and into the future. Currently, we expect that we will need an additional $3-4 per ton for projects that are already underway; this does not include projects that have not yet begun.
6 Recommendation: It was agreed that more specific numbers would be needed to have a discussion about raising rates for rate stabilization and capital project funding. Additional policy questions to be considered: There was a quick overview of several questions brought up by the Kitsap County Commissioners for possible consideration. These questions may be evaluated further as rate discussions continue. a) Should we charge a different (higher) rate for commercial construction and demolition waste to encourage commercial generators to recycle this waste stream? This would be a way to incentivize haulers to go to recyclers in Tacoma. Should we be charging more than the actual cost of service in order to encourage generators to transport materials elsewhere for recycling? Is this a question of capacity? In terms of tonnage, we have not yet exceeded the design capacity of OVTS; the limitation is the availability of rail cars. But added transportation results in increased carbon dioxide emissions, so recycling may not produce an overall environmental benefit. Because our tipping fees are low, we actually see out-of-county C&D waste coming to OVTS. b) Should we consider subsidizing private sector organics collection sites with tipping fee revenue to provide an incentive for residents to self-haul green waste to these sites rather than dumping in garbage (or elsewhere)? What if subsidy was used for decreasing cost of curbside yard waste, making it cheaper to subscribe? People are more likely to sign up for curbside yard waste if it didn t cost as much. How about opening curbside yard waste to the entire county to get yard waste to the recyclers? Joey Pellecchia of Waste Management said this would double or triple the number of existing routes. The curbside containers are not large enough for rural properties. c) Should we use tipping fees to pay for regular enforcement of unsecured loads? We should be consistently charging the customers with unsecured loads the $10.00 fee. Poulsbo has recently been charging extra for overfilled commercial containers and customers have responded. Better to target offenders, not use tipping fees for enforcement. Question of whether fines could be assessed (or tickets issued) based on evidence caught on camera. Using tipping fees is charging those who do right to correct for those who do not. Some discussion of possibly giving coupons toward a tarp purchase during the transition to enforcing the fee, in order to decrease arguments from customers. This would cost nothing, as the coupons would be covered by the $10.00 fee.
7 d) Should we consider issuing bonds for future capital projects rather than relying on fund balance and/or current tipping fees? That is the way Public Works projects are often funded. Need more information on how bonds work in order to make recommendation. e) Is there a target rate increase that we should be considering (e.g., no greater than x % per year), deferring target fund balance requirements to meet this target? Rates should be increased only to meet needs as they come up. We should look at what types of increases other jurisdictions are incurring. General feeling is that we need to keep fees as reasonable as possible, but still cover expenses. ROUND TABLE DISCUSSION Jan Bower Provided a copy of the memo given to the Board of Health about the Secure Medicine Return program. The representatives of the pharmaceutical companies have provided the second plan to KPHD for approval. KPHD is hoping implementation will begin by the end of this year. Jan provided two lists of businesses: one showing confirmed interest in having the take-back kiosks, and a second list of potential businesses. KPHD would appreciate any suggestions of additional businesses that would be good candidates for the kiosks. Pat Campbell Asked Doug to provide input for 2018 SWAC work plan, since he will be gone for several months. He suggested considering a plastic bag ban. Commercial SWAC rep is still needed. Diane Landry has one made one suggestion. Additional suggestions are welcome for other possible commercial representatives. Shared the completed KCPW Solid Waste Division 2016 Annual Report and the Poulsbo Recycle Center closure brochure. Congratulations to Diane Landry for the article about her in the West Sound Home and Garden Magazine. There will be a Styrofoam recycle event in December at the Kitsap County Fairgrounds. Shannon asked that once publicity is available it be shared with cities to include in their newsletters. Dee Williams Introduced Jaime Lawrence, who works for the Department of Natural Resources at the Suquamish Tribe. ADJOURNMENT There being no further business the meeting adjourned at 5:45. NEXT MEETING The next meeting is tentatively scheduled for November 1 at 4:00 pm.
8 OLYMPIC VIEW TRANSFER STATION RATE-SETTING PRELIMINARY DISCUSSION SOLID WASTE ADVISORY COMMITTEE OCTOBER 4, 2017 Draft Rate Setting Policy in Solid and Hazardous Waste Management Plan The Solid and Hazardous Waste Management Plan includes several recommendations for consideration in setting rates, as outlined in Chapter 12 (Administration and Organization): Rates at County-owned facilities should be structured to achieve the following: a) Include the cost of free recycling in the disposal fees at the RAGFs. b) Set rate structures at RAGFs such that it is less costly for customers with small volume loads to sign up for curbside collection than it is to self-haul their garbage. c) Encourage customers to consolidate their materials so that they bring fewer but larger loads. d) Encourage customers with large loads and C&D (construction and demolition) materials to deliver their materials directly to OVTS. e) Consider the potential impact of rate structures on illegal dumping with information as available. f) Consider the needs of low-income residents. g) Are projected for a 5-year period. h) Charge equivalent fees at each of the County-owned RAGFs. i) Generate sufficient revenue to cover the costs of operations maintenance, and reserve requirements. Additional funding needs that have recently been identified: In 2017, there have been increasing requests for Solid Waste Tipping Fee revenues, including: a) Increased support of Kitsap Public Health District (KPHD) Solid and Hazardous Waste Programs The State s Coordinated Prevention Grant (CPG) funding has in previous years provided $200,000-$300,000 annually to KPHD for Solid Waste Enforcement activities. Cuts to CPG funding had been proposed for the biennium, but the failure to pass a State Capital Budget resulted in an elimination of the grant program entirely. The future of this grant program is uncertain at this time. b) Local funding of Household Hazardous Waste Collection Programs The SWD also lost long-time CPG revenue, which recently has been used exclusively for household hazardous waste collection programs. For the most recent biennium, the total grant was $397,000; the previous biennium was $797,000. In order to provide the same level of service, local funds must now fully support this program. c) Financial support of the Kitsap Nuisance Abatement Team (KNAT) activities Funding of solid waste litter and illegal dumping activities throughout Kitsap County is within the mission of the SWD, which for years has been funded through the Clean Kitsap portion of the tipping fee, currently $1.30 per ton. Since KNAT activities ceased in
9 approximately 2009, Clean Kitsap has responded to increasingly more requests for private property clean-up assistance. The SWD fully supports reactivation of KNAT and the use of tipping fees for solid waste-related abatement activities. In addition, since tipping fees are paid by all citizens of Kitsap County (and beyond) regardless of jurisdictional boundaries, the County should determine how best to allocate contributions made by the cities and tribes back to them for similar solid waste related abatement purposes. d) Rate Stability Reserve Funds During the economic recession of , tonnage disposed at the transfer station (and corresponding revenue) decreased by 19%, requiring the use of fund balance to meet expenditures. Public Works is developing reserve policies, including a rate stabilization fund to protect against future unpredictable declines in revenue. The recommended target for this fund is 15% of annual estimated revenue, which for the SWD would be approximately $2.6 million. e) Future Capital Improvements The current fund balance in the Capital Improvement fund is $2.6 million, with anticipated expenditures based on staff estimates of $3.9 million between 2018 and Additional policy questions to be considered a) Should we charge a different (higher) rate for commercial construction and demolition waste to encourage commercial generators to recycle this waste stream? b) Should we consider subsidizing private sector organics collection sites with tipping fee revenue to provide an incentive for residents to self-haul green waste to these sites rather than dumping in garbage (or elsewhere)? c) Should we use tipping fees to pay for regular enforcement of unsecured loads? d) Should we consider issuing bonds for future capital projects rather than relying on fund balance and/or current tipping fees? e) Is there a target rate increase that we should be considering (e.g., no greater than x % per year), deferring target fund balance requirements to meet this target?
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