Utilities Department Solid Waste System Tipping Fees November 11, 2008

Early 70’s – –Purchased 1500 acres – –Developed a system of Transfer Stations Early 90’s purchased 3500 acres Largest Publicly Owned Landfill in Florida Only Class I Landfill in Orange County Solid Waste System

Mandatory Refuse Collection – –Commenced 1985 Recycling Collection and processing – –Commenced 1990 – –25,600 tons 194,000 Customers MSBU funded programs

Solid Waste System Materials Recycling Facility – –Landfill site Recycling Transfer Facility – –McCormick Rd

Residential Collection ProgramResidential Collection Program –Contract begins January 1, 2009 –New contractors for Zone 2 and Zone 4 –Transition plan Meet with all contractorsMeet with all contractors Contact customers through letters and tagsContact customers through letters and tags –Customer service support –Communication with Commissioners Solid Waste System

Landfill Operations – –Class I Waste Putrescible Waste Over 2000 tons per day – –Class III Waste Non-Putrescible Waste Over 750 tons per day

Solid Waste System Landfill Operations – –Yard Waste Composting Landscaping Material Over 210 tons per day

Solid Waste System Special Waste Disposal – –HHW Facilities – –Asbestos – –Waste Tire – –Small Vehicle Drop Off Facility

Solid Waste System Transfer Station Operations – –McLeod Road 630 tons per day – –Porter 450 tons per day

Solid Waste System Maintenance Operation – –Heavy Equipment – –Transfer Vehicles – –Fleet – –Buildings and Grounds

Solid Waste System Engineering and Environmental – –Regulatory compliance – –Permitting – –Planning and Construction

Solid Waste System New cell construction – –Regulations – –Liners – –Leachate – –Roads

Solid Waste System Cell Closure Long Term Care

Landfill Gas to EnergyLandfill Gas to Energy –Landfill gas recovery project –OUC Stanton Energy Center –Expansion of gas recovery project for new cells –Provides alternative revenue source to supplement tipping fee revenue Solid Waste System

Solid Waste System Tipping Fees

Solid Waste System BackgroundBackground –Enterprise Fund –Tipping Fees are paid by solid waste collection haulers to dispose of waste at the County Landfill and Transfer Stations

Solid Waste System BackgroundBackground –Tipping Fees must recover: Operating expenseOperating expense Capital cost of all equipment and infrastructure including new cell developmentCapital cost of all equipment and infrastructure including new cell development Cost of closure and long term careCost of closure and long term care Debt ServiceDebt Service

Solid Waste System BackgroundBackground –Tipping Fees have not increased since 1992 with two exceptions 1994 – Creation of Class I Commercial fee1994 – Creation of Class I Commercial fee 1998 – Increase in the Waste Tire fee1998 – Increase in the Waste Tire fee

Solid Waste System BackgroundBackground –In 1999, competition resulted in a significant loss of tonnage / revenue –Engaged consultant to assist us with the development of a Solid Waste Business Plan

Solid Waste System BackgroundBackground –Tonnage agreements with municipalities and commercial haulers stabilized the loss –Fees and tonnage levels had been sufficient to meet our needs

Solid Waste System Current EnvironmentCurrent Environment –The system is not in sound financial health Substantial increases in the cost of new cell construction, closure and long term careSubstantial increases in the cost of new cell construction, closure and long term care Increased liability for closure and long term care is not fully fundedIncreased liability for closure and long term care is not fully funded Outstanding bonds were defeased in 2007 to avoid technical defaultOutstanding bonds were defeased in 2007 to avoid technical default

Solid Waste System Current EnvironmentCurrent Environment Tipping Fee revenue is not sufficient to properly fund the systemTipping Fee revenue is not sufficient to properly fund the system Current economic market makes it challenging to borrow to fund projectsCurrent economic market makes it challenging to borrow to fund projects Projects may be delayedProjects may be delayed Engaged consultant to update the Solid Waste Business PlanEngaged consultant to update the Solid Waste Business Plan

Solid Waste System Solid Waste Business Plan UpdateSolid Waste Business Plan Update –Updated cost of service –Analyzed current solid waste competitive market Recommends an increase to Tipping Fees for Class I and Class III waste based on market conditionsRecommends an increase to Tipping Fees for Class I and Class III waste based on market conditions –Explores alternative sources of system revenue which will take more time to implement

Solid Waste System Alternative sources of system revenueAlternative sources of system revenue –Additional agreements with two tier tipping fee system –Franchise Hauler fee to cover cost of capacity at the landfill –Expand Mandatory Refuse Program to multi-family residential complexes –Special assessment for landfill cell construction –Flow control

Solid Waste System Tipping Fee RecommendationsTipping Fee Recommendations –Class I Residential$30.65 to $ –Class I Commercial$32.95 to $ –Class III Waste$17.20 to $ –Yard Waste$28.35 to $ –Tire Disposal $99.00 to $ –Sludge $ 7.10 to $ 0.00 Accepted by agreement onlyAccepted by agreement only –Minimum Charge$ 5.25 to $ 6.00

Solid Waste System Tipping Fee Comparison – Class ITipping Fee Comparison – Class I Taft Recycling $53.00 Baseline Landfill (Marion County)$42.00 JED Landfill (Osceola County)$38.00 Orange County – Com (Proposed)$35.10 WMI Transfer$35.00 Osceola Road (Seminole County)$33.17 Orange County – Com (Current)$32.95 Orange County – Res (Proposed)$32.65 Orange County – Res (Current)$30.65 Central Disposal (Brevard County)$29.50

Solid Waste System Tipping Fee Comparison – Class IIITipping Fee Comparison – Class III Taft Recycling $48.00 Baseline Landfill (Marion County)$42.00 Osceola Road (Seminole County) $33.17 Central Disposal (Brevard County)$29.50 Orange County(Proposed)$24.00 Keene Road$20.50 JED Landfill (Osceola County)$20.00 Golden Gem Road $20.00 Orange County (Current)$17.20

Solid Waste System Mandatory Refuse and Recycling ProgramsMandatory Refuse and Recycling Programs –The MSBU adopted for 2009 is $ –The impact of the proposed fee increase is $2.92 per household –Program can absorb impact for 2009

Solid Waste System SummarySummary –Cost of operating the Solid Waste System is increasing –Closure and Long Term Care Liability Accounts not fully funded –Capital Improvement Program delays –Tipping Fee increases alone will not solve the financial issues

Solid Waste System SummarySummary –Short Term Tipping Fee increases neededTipping Fee increases needed –Long Term Evaluate alternatives to stabilize system revenueEvaluate alternatives to stabilize system revenue –We will return to the Board to discuss: Future tipping fee increasesFuture tipping fee increases Alternative revenue opportunitiesAlternative revenue opportunities Solid Waste Business PlanSolid Waste Business Plan

Solid Waste System Requested ActionRequested Action –Approval of the Resolution and Fee Schedule to revise Solid Waste tipping fees

Utilities Department Solid Waste System Tipping Fees November 11, 2008