“Go with the Flow” Flow Control in the City of...

“Go with the Flow”

Flow Control in the City of Keene

Duncan Watson

Assistant Public Works Director, Solid Waste

Manager, Recycling Coordinator

City of Keene, NH

Environmental Business Council of New England

Energy Environment Economy

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Environmental Business Council

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Keene- located in Southwest NH Population approximately 23,000 (triples during daytime) Economic hub of Southwest NH Solid Waste Division part of Keene Department of Public Works Employs 13 full and part time employees Revenues $4.7 million

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Background

Solid Waste Fund structured as special revenue fund- NO impact on tax rate

Revenues in excess of $4.1M/yr

Expenses in excess of $4.5 M/yr

Mayor formed Ad-Hoc Committee in September 2009 to make recommendations for sustainable funding model


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Current

Solid Waste Division operates as public/private partnership

8 Cost Centers including Administration, Facility, Transfer Station, Recycling, Hazardous Waste, Demo Recycling, Landfill Monitoring, & Landfill Gas

Employs 8 full time, 5 part-time employees.

Transport & Disposal from transfer station is sub-contracted

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Existing Conditions

Average of 30,000 tons through Transfer Station.

75%+ delivered by Waste Management

Bulk of residential waste generated in Keene brought to Keene

Estimate of up to 10,000 tons of commercial waste leaves the community.


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Existing Condition

Subsidizing losses for years

No more low hanging fruit

Difficult policy decision


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Existing Condition

Increased fees for disposal

Comprehensive fee review, reclamation trust fund

Decreased operational costs

Reduced 1 employee at Recycling Center

Recycling basically a revenue neutral program

Net revenues average $65,000/yr from 2004-2009

If recyclable material had been sent through Transfer Station it would add $3.4 M in disposal costs


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Option 1-Shut Down

Would shift $355,000/yr to the general fund


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Option 2- City collects residential refuse & recycling, competes for

commercial business

Capital startup costs $1.6-2.6M (residential)

Displaces existing network of private contractors


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Option 3- Privatize Facility

Previous experience- WMNH ran transfer station- paid $27,000/month facility use fee- did not renew contract

City would need $55,000 facility use fee/month to eliminate revenue deficit


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Option 4- Flow Control Flow control would require private

contractors operating in City of Keene to deliver all material generated within City limits to Keene Transfer Station & Recycling Center

Creates sustainable funding mechanism- takes a community resource and benefits Keene taxpayers

Levels the disposal playing field Preserves network of private

contractors


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Option 5- Place shortfall on tax rate

Keene’s solid waste system has historically not relied on property taxes

There appears to be a better funding option that does not add to tax burden


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Conclusion

Ad-Hoc Committee charged with recommending sustainable funding model for Solid Waste Division

Ad-Hoc Committee felt it was important that model not rely on property taxes


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Conclusion

Require private contractors to deliver all material generated within City limits to Keene Transfer Station & Recycling Center

Continue business relationship with Waste Management to attract volume from outside Keene and for transport & disposal


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Conclusion

Benefits taxpayers

Preserves private network of haulers

Levels disposal cost playing field in Keene

Continues successful diversion program

Creates sustainable funding mechanism


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Flow Control Ordinance Enacted October 1, 2010

Haulers required to be permitted-

term of permit required any private contractor to transport for disposal all residential, commercial or industrial waste generated and or collected with the City of Keene limits to the solid waste facility.


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Compliance generally good.

38,000 tons average per year

Several small loopholes that are being discussed that will result in small language changes in ordinance

Net effect of loopholes is minor

City of Keene will conduct annual audits starting in 2014 to ensure compliance.


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Duncan Watson

Assistant Public Works Director

City of Keene

603-352-6550

[email protected]


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