DATE: December 2, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Becky Caldwell, Director of Sanitation and Environmental Services
SUBJECT:title
Consideration of Ordinance 2015-49, an Ordinance to Amend Appendix A, Chapter 17, of the Franklin Municipal Code to Increase the Tipping Fees for Transfer Station Services. (11/12/15 Finance 4-0; 1st Reading 12-08-15 BOMA 8-0) SECOND AND FINAL READING
body
Purpose
The purpose of this memorandum is to provide information to the Board of Mayor and Aldermen (BOMA) to consider adjusting the fee structure charged at the City-owned transfer station.
Background
“Tipping fee” is the charge, per ton, for use of our City-owned transfer station. This fee pays for expenses associated with daily operations in the Disposal Division of our Sanitation and Environmental Services Department.
In 2011, the City increased the tipping fee to total $44.00 per ton; $42.00 per ton with a $2.00 surcharge when diesel fuel was above $3.00 per gallon at retail service stations in the City of Franklin. In 2013, after the City contracted with Bi-County Solid Waste for hauling and landfilling services, the tipping fee was reduced by $2.00 to remove the fuel surcharge associated with the added expense of diesel fuel for hauling waste to a permitted landfill.
During fiscal year 2013, the City processed 49,245 tons of landfilled waste through our transfer station. In FY 2014, the City managed 59,735 tons of landfilled waste through our transfer station. In the summer of 2014, we started to see a dramatic increase in the volumes of waste delivered to our transfer station. By the end of FY 2015, the total tons of landfilled waste processed by our transfer station was 81,651; the most ever in the 11-year history of the transfer station. As we communicated with other transfer stations, landfills and private hauling companies the feedback the City has received provide the reasons for the proposed fee increase. This feedback includes: (1) the City maintain a clean and safe facility during daily operations, (2) the City is efficient in moving customers into and out of the transfer station tip floor which saves time for waste collectors, (3) the City has professional and helpful staff at our facility, (4) the City’s facility is conveniently located near 840 and I-65 for easy accessibility and, most obvious, (5) Franklin’s tipping fee is less than most others in the middle Tennessee area. The total tonnage includes wastes collected from our City customers as well as that delivered by private hauling companies. Further research indicated the increase in volume included some household and business waste, with the majority coming from construction debris. Construction debris typically includes lumber, concrete, bricks and other similar type wastes. These wastes pose additional challenges because of the inability to compact these wastes to fill transfer trailers to capacity for efficient use of hauling capacity.
Partnering with Bi-County for hauling and landfilling services has proven successful. A 37% increase in volume, during a short period of time, is challenging for any operation to manage. The additional expenses for daily operations as well as added capital costs associated with purchasing more equipment for processing, hauling and landfilling in conjunction with a fluctuating volume directly affect daily operations as well as long-term planning. As of the week ending November 1, 2015, 18 weeks into the fiscal year, the City’s transfer station has processed 34,448 tons of landfilled waste. If this volume continues, the City will process approximately 99,500 tons of waste during FY 2016.
Financial Impact
There is a balance between efficient daily operations and increased expenses for any facility accepting waste from public and private hauling companies. Trends are helpful in predicting expected volumes, but trends do not always prove accurate.
The City is beginning to see an increase in operational costs as a result of the increase in volume at our transfer station. Bi-County has purchased additional equipment and hired more drivers to attempt to accommodate the added volume. As the City processes more volume through its facility, the wear and tear on City equipment/infrastructure creates added maintenance, repair and replacement costs which occur sooner than originally expected.
The Franklin transfer station has charged customers based on tonnage (weight volume) since its opening 11 years ago. Some facilities choose to charge for solid wastes based on tonnage with fees for construction debris charged by cubic yard. Most locations in middle Tennessee have moved away from charging by cubic yard to adopt a more consistent fee structure, based solely on weight volume.
The fee, per ton, at other facilities in the area, ranges from $30.50 to $65.00.
The facilities we used to determine this range are as follows:
Williamson County Landfill $38.00/ton solid waste and construction debris
Middlepoint Landfill $65.00/ton + administrative fees and taxes
solid waste and construction debris
Sam’s Creek Transfer Station $60.00/ton solid waste and construction debris
(Cheatham County)
Robertson County Transfer Station $45.50/ton solid waste and construction debris
Decatur County Landfill $39.96/ton solid waste and construction debris
Hamilton County Landfill $30.50/ton solid waste
The City of Franklin’s current fee is $42.00 per ton, with a minimum charge of $10.00.
List of Options
The following options, or combination of these options, are the preferred method for managing the dramatic increase in volume processed through our transfer station.
(1) Increase our tipping fee to $45.00 per ton with a $20.00 minimum to allow for additional revenues to cover added expenses associated with the increase in volume
(2) Maintain our current $42.00 per ton tip fee, with a $10.00 minimum, for solid wastes and increase our tipping fee for construction debris to $45.00 per ton to account for additional resources spent mixing wastes to achieve higher compaction rate in transfer trailers
(3) Maintain current tipping fee rate at $42.00 per ton with a $10.00 minimum for solid wastes and construction debris, with approval for the City Administrator, Director of Sanitation and Environmental Services or their designee to refuse construction debris when the volume is in excess of what can effectively be mixed with other wastes to operate efficiently
Recommendation
It is recommended an increase in the City transfer station tip fee from $42.00 to $45.00 per ton, with an increase in the minimum rate from $10.00 to $20.00 for loads weighing less than one (1) ton. Additionally, we recommend giving the City Administrator, the Director of Sanitation and Environmental Services or their designee(s) authority to refuse construction debris when the volume is in excess of what can effectively be mixed with other wastes to operate efficiently.