1. Utilities Department Solid Waste Business Plan and Tipping Fees
October 6, 2009

2. Background Early 70’s Largest Publicly Owned Landfill in Florida
Single landfill for the County
Developed a system of Transfer Stations
Largest Publicly Owned Landfill in Florida
Only Class I Landfill in Orange County

3. Solid Waste Division Landfill Operations Transfer stations Collection
Recycling

4. Current Environment The system faces significant financial challenges
Substantial increases in the cost of new cell construction, closure and long term care
Increased liability for closure and long term care is not fully funded
Tonnage decreasing

5. Current Environment
Engaged consultant to update the Solid Waste Business Plan
Tipping Fee revenue is not sufficient to properly fund the system
Current economic conditions makes it challenging to borrow to fund projects
Projects may be delayed

6. Solid Waste Business Plan Update
Updated cost of service
Analyzed current solid waste competitive market
Recommended increases 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

7. Solid Waste Business Plan Update
Alternate sources of system revenue
Flow control
Two tier tipping fee system
Franchise Hauler fee
Utilities biosolids disposal

8. Tipping Fee Recommendations
Business plan recommended 19% increase in Class I fee
Last year, Board approved 6.5% increase in a phase implementation approach
Return this year for approval of complete implementation plan

9. Tipping Fee Recommendations
Phase II - 6.5% for Class I and Class III fees
Effective December 1, 2009
Phase III – 6.5% for Class I only
Effective December 1, 2010
3% Annual Index
Effective October 12, 2012

10. Tipping Fee Recommendations
Tipping Fee Current Phase II Phase III
Class I Res $32.65 $34.80 $37.10
Class I Comm $35.10 $37.40 $39.80
Class III $24.00 $25.60 $25.60
3% Annual Index beginning in 2012

11. Tipping Fee Comparison Class I
Taft Recycling $54.50
Baseline Landfill (Marion County) $42.00
JED Landfill (Osceola County) $38.00
Orange County – Com (Proposed) $37.40
WMI Transfer $36.10*
Orange County – Com (Current) $35.10
Orange County – Res (Proposed) $34.80
Osceola Road (Seminole County) $33.17
Orange County – Res (Current) $32.65
Central Disposal (Brevard County) $29.50

12. Tipping Fee Comparison Class III
Taft Recycling $49.50
Baseline Landfill (Marion County) $42.00
Osceola Road (Seminole County) $33.17
Orange County (Proposed) $25.60
Orange County (Current) $24.00
O.C. Environmental $24.00
Central Disposal (Brevard County) $23.66
Keene Road $22.50
JED Landfill (Osceola County) $21.00

13. Summary 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

14. Summary
Short Term
Phase II and III Tipping Fee increases are needed
Return to the Board to discuss transfer stations - December
Return to the Board regarding implementing flow control in about 12 months

15. Requested Action
Approval of the Resolution and Fee Schedule to revise Solid Waste tipping fees

16. Utilities Department Solid Waste Business Plan and Tipping Fees
October 6, 2009