SAC CITY, IOWA – NOVEMBER 22, 2010
November 22, 2010 Sac City Council Recycling Presentation
1. Tonnage has remained consistent over the last decade.
- This report doesn’t address the volume of recycling processed.
2. Revenue from the sale of recyclable materials has been “Somewhat sporadic”.
- Runs like a commodities market and the cost you can recover can very significantly.
-- EXAMPLE: cardboard can range from $20 per ton to $100 per ton.
3. The landfill picks up the difference between what the Howard Center loses in revenue and the operating cost.
4. Over the last two years there has been a spike upwards in the cost to process a ton of recycling.
5. What is the cost that the county pays, (rent, etc)?
- Question ignored.
6. Operating expense, administrative expense, and the interest paid to the Howard Center discussed.
7. Council discusses set of questions and answers from the council that John Winkelman has already committed to paper.
8. Pie charts show expenses averaged out.
9. Landfill commission and the council’s role in it explained.
10. John Winkelman gives a brief history of Howard Center funding.
11. Howard Center was contracted with to try and bring about a 25% reduction in waste at the landfill.
- Mandated by the DNR.
- This reduction hasn’t been achieved because of construction debris from weather damage in the last few years.
12. Howard Center was set up not to save money, but to save space at the landfill. (the 25% reduction.)
13. The Howard Center has charged a significant amount more to the landfill commission in the last two years.
- Winkelman blames the recession for the dip in the price for recovered recyclables.
- “the last two years have not been cost effective.”
14. Winkelman claims the rent that is paid is actually for the depreciation of the building.
- The depreciation is $13,241.00 per year.
- Depreciation is set to finalize in 2013
-- This is not presented as a fact.
15. In 2007 the can redemption business was discontinued due to the county no longer paying for the Howard Center employees to recover cans.
- At the time, when taking the recyclables somewhere else, the Howard Center argued that they could teach people how to work.
16. Contributing to the cost the Howard Center is charging is equipment breakage.
17. It is cheaper to landfill the recyclables and pay the fine than it is to sort the recyclables out and recover them.
18. BV county has given up on recycling.
19. Timing on the landfill moving out of the Howard Center could be “really good” because Winkelman is attempting to put together a wheelchair manufacturing business in the building now being used for recycling.
- This could help them support themselves.
20. Administrative cost briefly explained.
21. What is this 25%?
- The DNR mandated that landfills reduce the amount of waste taken in by 25% per year through recycling.
22. Could you describe the agreement?
23. Dean Stock describes the commission.
- It is a partnership between the 9 towns in the county, and the county at large.
- There are 13 members.
- 1 from each town, and 4 from the county at large.
24. Kuehl and Payer act as managers of the landfill.
25. At one point, the contract with the Howard Center was a yearly contract; it was changed to a three year agreement system
- The commission was at first reluctant to enter into the contract.
- Both parties are able to quit the contract with three years notice.
26. In 2007 the commission spent 34% of their operating budget paying the Howard Center. In 2008 it was 24% of the operating budget. In 2009 it was 39% of the operating budget.
- Almost 40% is a little bit on the high side compared to other counties.
- It’s closer to 20 to 25% of the operating costs at other landfills.
-- In large landfills, this may be zero as they are making money.
27. The county has between 800 and 900 tons of recycling each year.
- FY 09 – 10, 800 tons of recycling cost the commission about $132,000.00 to process.
28. If the Howard Center hypothetically decided to sever the arrangement, what would the commission do?
- Carroll will take the recycling for about $16,000 per year for 800 tons.
-- This might end up being less, according to the latest information.
29. The combination of costs for the increases transportation costs for the towns is between $20K and $30K.
30. It could cost another $20K (very rough guesstimate) to continue to provide a drop off point for recycling for people that do not use curbside (rural customers)
31. With all things considered, it could cost $56K to do recycling without the Howard Center as opposed to $132K letting the Howard Center take care of it.
32. In 2007, of $290,000 budgeted by the landfill, about $100,000 went to the Howard Center. In 2008 the total operating budget was $321,000 and in 2009, the operating budget was $287,000.
- In two of those years, they were developing new cells, (named “A” and “B”,)
- The landfill now has to develop another new cell, (named “C”)
-- This cell will cost about $360K
-- It will last about 4 or 5 years.
33. Revenue is up in the last two years due to increased tonnage from the hail storms and the subsequent roofing material that was land filled.
- Fills the landfill up quicker.
34. Houses are being torn down at a faster rate and being land filled.
35. The commission is spending $50K to $60K more per year to be in compliance with DNR clean air and water rules.
36. The landfill has about $450K in cash to put towards the bills that will come in for cell C next summer.
37. Last year the tipping fee and the assessment was raised.
- The assessment is based on 11,529 people.
-- Every dollar the assessment is raised, it brings in about $11K.
38. The solid waste agency’s strategy is to keep a little bit of cushion for future construction of cells.
39. What will the commission do with those savings?
- Could bank it in the solid waste agency.
-- Assessments and tipping fees wouldn’t have to be raised.
- Figure out a way to get the savings back to the community.
-- Give it back to the taxpayers.
40. It doesn’t pay to have a lot of money sitting in the bank because they are only getting 1% on it.
41. It’s getting too expensive to recycle things the way it is going now.
42. It’s good that everyone is working on this now and not two years from now.
43. The recycling equipment is described as being “very well”
44. Citizen feels that Carroll County is going to raise recycling fees per ton $10K per year and is concerned that if we send the business out of the county, we will be stuck.
45. Citizen asks if recycling fee will go up or down if the recycling is taken to Carroll.
- Frohardt reminds citizen that tipping and landfill fees will not have to be doubled.
- City administrator talks about how much more it may cost to deliver recyclables to Carroll.
46. Citizen expresses support for keeping recycling at the Howard Center.
47. Citizen misunderstood something Stock said earlier and it is clarified.
- recycling in Carroll may actually cost less than $20 per ton.
48. Howard Center is set up to be cost minus sales revenue, Carroll recycling may not be set up that way.
49. Dean Stock Summarizes his personal view.
- Is optimistic that something can be worked out.
50. John Winkelman summarizes his personal view.
- If the people of Sac County come up with a better way to recycle, then he will be supportive of that.
51. Brenny expresses the hope that the lines of communication stay open between the landfill and the Howard Center.
52. Citizen asks for further clarification about Cell C and how it affects cost.
- Explained by Nick Frohardt and Dean Stock.
-- Straight almost point by point recap of what was explained in items 32 – 42.
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