Pescadero Transfer Station

Has served the community from1986 to the Present

We cannot afford to lose this asset

Funding

• From inception the County’s Solid Waste Fund (SWF) shouldered the lion’s share of the burden

• During the year 2007 the SWF was being drawn down at a rate over $300,000/yr

• The SWF has no new sources of revenues replenishing it

• Without remedial action the SWF will be exhausted and as a result the Transfer Station closes

Solid Waste Fund

• Pescadero Transfer Station(PTS) is the only program funded by the SWF that is not a mandated program

• The mandated programs currently using the fund are: 3 closed landfills, National Pollutant Discharge Elimination System (NPDES storm water requirements) required by the State

• The projection for the SFW’s total depletion is fiscal year 2015/2016

Past Actions to Prolong the Life of the PTS

• The County conducted a month long survey in 2007 to determine PTS usage

• The survey was in preparation of an Request for Proposals (RFP) to be issued the following year

• PMAC was brought into the loop through community presentations by DPW personnel (managers of the asset)

• And PMAC input into the RFP process was provided by Rodger Reinhart and Catherine Peery

Past Actions to Prolong the Life of the PTS

• A number of things were reviewed with the community from the survey and new contract negotiations.

• As a result the PTS – Replaced the gate house– Expanded recycling opportunities– Gate rate adjustments (from $1.00 to $4.00 per

32 gallon can)

Current Operating Contract & Site Renovations

• Of the two responding companies, Allied Waste offered the lowest cost alternative. The contract term is from July 2008 to August 2015.

• The RFP outlined several improvements at the site.

• Improvement costs were approximately $100,000

Impact of Current Contract

• Reduced the annual operating subsidy (draw down on the SWF) from approximately $300,000 to today’s deficit of approximately $165,000

• The PTS operates 5 days per week with a very reliable Allied Waste employee to serve us

County Required to Reduce Costs

• Due to the economic times the County is running a deficit of about $54 million

• County management was asked to look at their operations and recommend areas where costs could be reduced or at least controlled

• DPW personnel realizing no new revenues would feed the SWF, discussions were held within the community (2010 and 2011) to review future options for the PTS

• The goal being a zero subsidy from the SWF

PMAC & PTS

• Various PMAC members met with the County during the Summer/Fall of 2011

• The intent of the meetings were to work together with the County to find ways to reduce costs and maintain the PTS going forward

• PMAC asked for the opportunity to analyze the financials of the operation and make any appropriate suggestions

PTS Financial Analysis

• During the analysis, PMAC members offered several suggestions that might reduce the PTS operating costs

• During the Fall of 2011 PMAC suggested the County turn the PTS into a community based operation which we (PMAC) believe could reduce costs by 50% by hiring a non-profit (to be determined) entity to manage the PTS.

• This community based operation concept would require review by the various departments: County Council, County Risk Management, County Real Property, and State and local planning commissions.

Plans Moving Forward• A new RFP was recommended• Discussions with Allied Waste, DPW and PMAC representatives were

held • The County has suggested a feasibility study for the site to determine

other potential revenue sources to offset the subsidy rather than a RFP process that potentially replaces the current contractor.

• Prior to issuing a RFP we must look at ways to restructure the PTS and how we pay for it.

• The RFP process will take some time to assemble, distribute, and review.

• A waste characterization study is currently being conducted on two of the recycling boxes to determine what commodity value exists in the boxes.

Options Discussed for Public Comments

• Reducing the current days of operation from 5 to 3 days reduces costs by $28,000/yr (Thursday, Friday, and Saturday or Friday,

Saturday, Sunday)• Restructuring gate rates to align with other

similar facilities in the area.

Gate Rate Restructure

• The vast majority of transactions at the T/S is the single can dump: Currently $4.00 per 32 gallon can

• This accounts for 80% of the activity and 25% of the income

Single Can Rate

• The proposal includes four items:– Increase the size of the can from 32 gallons to 45

gallons– Increase cost a single can dump from $4 to $11– Restructure cost of second and third cans to be

equal to the first. All cans @ $11. – Issue waivers for fixed and low income folks

Other Items Re-priced

• Small adjustments were made to the following items.–General debris and wood waste: $22.25 and

24 to $26/CY–Mattresses: $3 to $11– Sofas: $6.50 to $11– Low/fixed income cans: $5

PTS Monthly Averages

Summation

• Proposed Gate Rates will net over $36,000/yr• Reduction in days of operation will net:

$28,000/yr• If these changes are put into place the life of

the basic T/S operation is extended• Contract re-negotiations with Allied Waste is

being studied by County DPW Management.