SAN JUAN COUNTY SOLID WASTE

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List of stories about solid waste operations in San Juan County

Recycling record set

posted 01/27/04
The solid waste death spiral has begun. County residents recycled 337.79 more tons of recyclables and threw out 325.74 less tons of garbage last year compared to 2002. The county does not charge to process recyclables. As more material goes into the recycling bins and less onto the garbage tipping floor, revenue drops.

San Juan County Public Works Director Jon Shannon told the Solid Waste Advisory Committee (SWAC) at their Jan. 26, 2004 meeting, the 3,089 tons of recyclables processed last year was "world record by a mile" for the county. The county processed 11,325.36 tons of garbage in 2003.

The county Commissioners approved a rate increase effective April 1, 2004 in order to increase operating revenue. They did not address the need to generate revenue for capital costs. The Solid Waste budget for 2004 projects a shortfall of $300,000 in capital costs in 2004.

SWAC members discussed the dilemma at their Jan. 26, 2004 meeting, noting their October 2003 letter asking the Board of County Commissioners to consider a property tax or parcel fee to cover solid waste capital expenses wasn't effective. Charging for recycling was not considered a viable option since it involved more infrastructure and labor.

The commissioners considered SWAC's suggestion in November, 2003. The county has a solid waste utility district through which it could collect fees. Commissioners Rhea Miller and Darcie Nielsen favored such a fee or tax. Commissioner John Evans was adamant in his opposition to the idea.

During the BOCC's discussion, Miller said, "I never believed capital costs should come out of a fee for service. Any civilized society takes care of its garbage. I think capital (funding) should come from property tax/ parcel tax. Operations (funding) from fees.

Evans said, "I can’t and will not support a property or parcel tax. I think it is only fair that the people using the system pay proportionately.

Shannon reminded SWAC members the county has "desperate" infrastructure needs. "We still don't have a formula to pay off debt and keep up with equipment needs."

SWAC member Mike Kaill said, "If we don't maintain it, it will cost more to rebuild."

SWAC member Bob Freauf said, "If people understood how hamstrung we are, they would support a small base fee."

The advisory committee will continue to work to educate the public about the problems facing the county Solid Waste Division. SWAC member George Post suggested the financial dilemma could become a campaign issue. Two of the three commissioner's seat are up for election - Evans and Nielsen.

Town raises rent to counter county rate increase

posted 01/16/04
Facing an increase from $140 to $160 per ton for garbage tipping fees, Friday Harbor Town Council voted to increase the rent it charges the county for the use of the recycling area at the transfer station. It currently charges the county $10 per month. The new fee will be approximately $2,700 per month.

The town council instructed staff to calculate the exact amount needed to cover the estimated $33,000 the increased tipping fee will cost the town annually. A resolution will be presented at the next council meeting.

The town owns the Sutton Road property where the transfer station is located. The county has a 20-year lease with the town for the area where the tipping floors are located. If the town wanted to terminate that lease, it would have to pay the county the market value of the improvements the county has made. The town cannot raise the lease rate.

The town has a rental agreement with the county for the shelf area of the site. The recycling bins are set up there. The rental agreement can be terminated with a 30-day notice.

Public Works Director Jon Shannon met with the council on Jan. 8, 2004. He explained the tipping fees had been increased to cover increased operating costs. The increase does not cover capital costs. "We’ve raised your rates three times in 10 years," he said. He pointed out the fee increases averaged out to 2.5 percent a year over the past decade.

Shannon pointed out the $160 tipping fee is 33 percent lower than the $238 per ton self-haulers pay. The $160 per ton commercial rate is charged to San Juan Sanitation and the Town of Friday Harbor.

"The original reason for the low rent was because the town got a price break," Mayor Gary Boothman said, "I don’t buy the argument we are getting a break." He noted the town could choose to run its own transfer station.

Town Administrator King Fitch told the council at the Jan. 15, 2004 meeting that the town's incinerator building has a tipping floor. While it was designed to be used to move garbage into an incinerator rather than the container boxes used to transport garbage, it might be possible to convert it. Fitch said he hadn't done any research into the cost of converting the tipping floor or into contracts for a hauler to take the garbage off-island.

Councilmember Wally Gillette suggested the town raise the per can fee to $6 per can. He asked if that would raise enough revenue to cover the increased tipping fees. Fitch said it would be more than enough.

The council voted 4 to 1 to direct staff to draw up a resolution regarding the higher rent fee. Gillette voted against the measure. He reminded the council Shannon had said the county would move its recycling boxes off the area and put them back in the leased area. Gillette said placing the recycling boxes in the crowded area would create an unsafe situation.

Town considers charging county more

posted 12/03/03
Town of Friday Harbor Administrator King Fitch suggested the town council consider increasing the lease rate the town charges for the recycling area at the transfer station. A cost of 18 cents per sq. foot would increase the rent to $2,700 per month from the current rate of "basically free," he said at the Nov. 20, 2003 council meeting.

At that rate the lease would bring in $30,000 a year - which equals the increase in tipping fees approved by the Board of County Commissioners last month. Town Attorney Don Eaton said, "If the town rates were to go up, an additional source of revenue would be to charge more for rental of the shelf (the recycling area)."

"Our agreement was $130 per ton," said Fitch. The town would let the county raise rates in the event of an emergency, he said. The BOCC increased tipping fees to $160 per ton.

The county leases space from the Town of Friday Harbor to operate the San Juan Island transfer station. There are two leases. One for the recycling area and the other for the garbage area. The larger garbage area is part of a long-term lease which has 11 more years to run. The other lease can be terminated with 30 days notice according to Fitch.

The county has purchased property for a new recycling plaza and is working on constructing the project. County Public Works Director Jon Shannon is scheduled to meet with the town council on Jan. 8, 2004.

Garbage disposal fees increased

posted 11/20/03
San Juan County Commissioners increased the tipping fees for garbage Tuesday, Nov. 18, 2003. For commercial accounts the rate will be $160 per ton. Self haulers will pay $6 per can rather than $5. Garbage by weight will increase 6.6 percent to $238 per ton.

The new rate structure will take care of an anticipated $300,000 shortfall in operational expenses. The commissioners did not come up with a way to cover a $300,000 shortfall in capital costs.

The county has a solid waste utility district through which it could collect fees. The fees would be assessed through property taxes or a per parcel fee. Commissioners Rhea Miller and Darcie Nielsen favored such a fee or tax. Commissioner John Evans was adamant in his opposition to the idea.

Miller said, "I never believed capital costs should come out of a fee for service. Any civilized society takes care of its garbage. I think capital (funding) should come from property tax/ parcel tax. Operations (funding) from fees.

Evans said, "I can’t and will not support a property or parcel tax. I think it is only fair that the people using the system pay proportionately.

Nielsen asked him why he had agreed with the noxious weed tax. "I don’t understand your philosophy, why is it OK for noxious weeds and not recycling."

Evans noted the voters approved the noxious weed tax. "If you want to go to voters and ask if they want to put a taxing district in place and if voters want to do that as they have done with noxious weeds, fine." he said. "I believe in asking the tax payer."

Solid Waste Manager Jon Shannon said, "If you put it to a vote of the people, it would probably fail. If you ask people at the tranfer station, they will probably say do parcel fees."

Nielsen made a motion to survey the users at the transfer stations to see what they preferred. The motion died for a lack of a second.

No motion was made to impose the utility district fee. The commissioners decided to approve the solid waste budget with the deficit. However they will not allow Shannon to purchase capital items unless actual revenue is higher than anticipated. If revenue doesn’t come in higher than expected, the BOCC will figure out what to do as the capital needs arise.

Free recycling likely to end

posted 10/29/03
The fees county residents pay for garbage disposal also cover the cost of disposal of recyclables. As more waste is diverted toward recycling, the cost charged for garbage must increase to avoid an operating deficit. The three county commissioners have individual ways to deal with this solid waste death spiral.

Commissioner John Evans said, "The formula we have right now where everything is paid for by garbage is not a sustainable financial model." He recommends recycling fees and garbage tipping fees be charged which cover the costs of operations. A gate fee should cover the cost of infrastructure.

Commissioner Darcie Nielsen favors a parcel assessment fee. A $20 annual fee would raise $350,000 which would cover the cost of recycling, she said. "Recycling benefits everybody. To me it is a net benefit," she said. " I view it as a holistic issue. I believe philosophically it is the thing to do." Increasing tipping fees for garbage could help fund infrastructure needs, she said. She didn’t favor a gate fee because it would be a deterrent to recycling. "You’d just see more recyclables dumped on the side of the road," she said. She would consider a recycling fee but wonders how the county would implement it.

Commissioner Rhea Miller doesn’t believe Public Works Director Jon Shannon’s numbers. He estimated a $250,00 shortfall in operational costs and another $250,000 in capital expenses. She said it was hard to believe the solid waste division managed to pay off $300,000 worth of debt in the past three years and now faced a shortfall. "Frankly, I don’t believe the dilemma," she said. "We have to cut our expenses. They are way too much."

Shannon replied that the issue was complicated. " In the past the board and public didn’t buy the dilemma and operated for six years in the red. I can’t make you believe it," he said. "In regards to cutting expenses, we could close the Lopez transfer station. It costs us a lot to run."

Shannon said the approaching operating deficit was a result of increases in costs during the past three years while tipping fees stayed the same. He noted the ferry costs had doubled during those three years. Labor costs had increased by the cost of living. The cost the county pays for disposal increased 6 percent during that period.

After a two and a half hour discussion about solid waste on Monday, October 27, 2003 the commissioners directed Shannon to bring back more rate information. He will compute the tipping fees needed for garbage and recyclables and a gate fee and a parcel fee. Various combinations of the fees will be presented to the commissioners at a future meeting.

SWAC suggests tax

posted 10/06/03
San Juan County’s Solid Waste Advisory Committee will ask the Board of County Commissioners to consider a property tax to cover solid waste capital expenses. Tipping fees would cover the costs of operations.

The committee members are concerned about the "death spiral" the county’s solid waste division faces. One of the goals of the Solid Waste Division is to divert more of the waste from landfills by encouraging recycling. There is no charge for recyclables, there is a charge for trash disposal. As the county becomes more successful in increasing the recycling rate, it reduces the amount of revenue received. The result is the death spiral.

One way to solve the problem is to charge for recycling. SWAC member Wally Gillettte suggested the county do so. Other committee members pointed out the need for more infrastructure and staffing to weigh the recyclables and collect the fees.

Since the existence of a solid waste operation increases the value of property, it seemed appropriate to the majority of SWAC members to charge either a per parcel fee or some other type of tax to pay for the infrastructure. By a vote of 6-1 during the Sept. 29, 2003 meeting, SWAC approved a resolution asking the BOCC to consider the tax idea.

Shannon: more funds needed for solid waste

posted 12/06/02
The problem with the county's solid waste program is the "pay as you throw" paradox according to Solid Waste Manager Jon Shannon. Because revenue is generated only through garbage tipping fees, diversion of garbage by recycling results in less revenue. Such a system conflicts with the county's goal of promoting waste diversion. One solution is to create a solid waste disposal district. Every property owner would pay for the privilege of having the service available. This is similar to library districts and fire districts. The idea is part of the report to be presented to a joint meeting of the Board of County Commissioners and the Solid Waste Advisory Committee set for 1:45 to 4 p.m. Tuesday, December 10, 2002 in the commissioners hearing room in the county Courthouse.

While the Solid Waste Division is now able to operate in the black after years of deficits, Shannon projects a $133,000 capital shortfall in 2003. The necessary funds could be generated by raising rates, excise taxes, or the minimum fee. Or by a combination of any of those increases. Shannon recommends the BOCC:

1. Implement a cost of service/rate study in fiscal year 2003. Money has been budgeted and this task could be accomplished by mid-year 2003.
   
   
2. Create two new county solid waste accounts - a capital account and a reserve account. This can be accomplished by the Auditor with a resolution from the BOCC. It should be done prior to the fiscal year 2003 accounting year start.
   
   
3. Choose a solution to generate an additional $133,000 of capital revenue in fiscal year 2003. This should be implemented as early in fiscal year 2003 as possible.
   
   
4. Raise the fee for refrigerated appliances from $30 to $40 per unit.
   
   
5. Develop a long term rate strategy. Based on the results of the rate study and a revisiting of system finances in mid fiscal year 2003, a solid waste system fiscal strategy should be outlined to guide system finances and rates through at least fiscal year 2005.
   
   

No garbage rate increase, for now

posted 10/09/02
A tipping rate increase for garbage is not in the Solid Waste Division's 2003 proposed budget. Solid Waste Manager Jon Shannon said, "With good luck we might be able to get through next year without going into the red without increasing rates."

The budget was discussed at the Board of County Commissioners October 8, 2002 meeting. Commissioner John Evans complimented Shannon on the work he has done to turn around the solid waste division. "I'd strongly recommend, to keep that momentum going, you begin work now on evaluating the rate increase we would need (to stay in the black)."He noted it takes time to hold the hearings and notify the commercial haulers and other customers "if and when we need to adjust rates."

Commissioner Rhea Miller said, "I don't see a reason to increase rates, we got out of $100,000 in debt in a year. The garbage rates are formidable."

The county does not charge for recycling. The new system of commingled recycling allows residents to divert more waste from the garbage bins. Evans said, "The comments I'm getting is this is a boon for people. The more recycling we do with no revenue coming in, the more cost for garbage."

Shannon said the commissioners may be surprised with some of the ideas he has about options for rate increase. He had planned to present it to the Solid Waste Advisory Committee in a work session before presenting it to the BOCC.

Commissioner Nielsen said, "I hope we can avoid a rate increase, but I am very fearful about where ferry fares are headed." Shannon should present the rate increase ideas to SWAC she said.

Solid Waste to ask for tipping fee increase

posted 09/17/02
Solid Waste Manager Jon Shannon will recommend two tipping fee increases even though San Juan Solid Waste Division just began operating in the black for the first time in six years. "We barely inched into the black," he told the Solid Waste Advisory Committee (SWAC) Monday, September 16, 2002. "If we don't do it (increase the fees) we will be back in the red."

Shannon will recommend an interim increase for 2003 while a rate study is conducted. He cited significant labor costs, the rise in ferry fares and the new bond debt to pay for the purchase of the Sutton Road property as the reasons the increase is needed. The county recently agreed to pay the Town of Friday Harbor $750,000 for the transfer station site.

The current fees are listed on this chart.

Solutions sought
for solid waste death spiral

By Sharon Kivisto

posted 01/30/03
Solid Waste Advisory Committee member George Post spoke to a group of 50 people In Eastsound Tuesday night (Jan. 23, 2003) and summed up the catch-22 facing the county's solid waste operations. "All the money comes from how much we throw away and we want to reduce waste, do you see the problem here?"

Post organized the meeting to educate islanders about the challenges the county faces. The Solid Waste Division is set up as an enterprise fund. It must generate enough revenue to cover costs. Besides a few grants, the only source of revenue is tipping fees for disposal of garbage, there are no fees for disposing of recyclables.

Revenue for capital improvements, education programs and "green" projects is not available. "As long as we are cutting back on every single cent, it is hopeless," said Post. "It is not substainable. We can’t do the things we say we want to do in these (county Solid Waste Management) plans."

Jon Shannon, who was the county Solid Waste Manager for the past two years and recently was chosen to be the new Public Works Director, said the solid waste operation had its first profit in 2001 after six years of running a deficit. "I indicated to the BOCC, if we don’t do something by the end of the year we will be going back into the red." He noted the county pays over $100,000 each year in ferry fees to haul off garbage and recyclables. In 2001 the ferry fees for commercial went up 32 percent and are projected to increase 35 percent in 2003. "Under Washington State Ferries' current plan, over a five year period the ferry rate will double."

Orcas Islander Dave Polis has been a consultant in the solid waste management field since the 70s. "I am always looking for tough problems," he said. "This is the toughest problem. The county loses money for everything we recycle." The emphasis should be on how to reuse materials and on waste reduction, he said.

Jennifer Hatch, who finds ways for large corporations to use recyclables, said, "There are several things that could be done on small scale. It is not hugely technical. There could be some innovative green type of small businesses in the islands." Grinding up paper and cardboard and converting it into blown in insulation could be a worthwhile little business, she said. One of the corporations she works with uses ground up tires to create shingles.

Other islanders suggested creating art out of waste and selling the products to tourists.

Other suggestions focused on ways to increase revenue. They ranged from charging for recycling, charging a gate fee or creating a taxing district.

San Juan County Commissioner John Evans said, "We’re like a family that just can’t quite make it month to month. If you are poor, you can’t do the neat things you would like to do." He had three suggestions.

• Do the best we can to freeze the cost of getting rid of garbage
• Either charge a gate fee, or
• charge something for recycling

By keeping a substantial difference between the fee for garbage disposal vs recycling disposal, recycling would still be encouraged, he said. "If we could cover two-thirds of the cost of recyclables, we would have all the money we would need," he said.

Orcas Island resident Bob Gamble said, "I agree with John Evans. New money has to come into the system, whether it is higher fees, fees for recycling or a tax. We need broader education of the public. We need input from citizens. Otherwise we are into a death spiral." He suggested islanders petition to place a referendum on a tax to create revenue for solid waste operations.

Post noted a survey last year of users of the Orcas Island and San Juan Island transfer stations indicated people were willing to pay for recycling. "We've never asked the people if they want to solve the problem," he said. "The purpose of this meeting was to get this issue to the people."

Dump holes an unintended consequence
of charging for steel recycling

By Sharon Kivisto

posted 08/21/01
Damaged backhoe tires, dump holes on Orcas Island and reduced reuse opportunities -- are just some of the unintended consequences of the BOCC's recent decision to charge for recycling steel according to Solid Waste Advisory Committee members. "The policy shut off the stream of steel," said Solid Waste manager Jon Shannon. "Rather than collecting a significant revenue it stopped the stream."

Audience member Ian Harlow of Orcas Island said some people on Orcas Island are digging holes and burying steel instead of taking it to the transfer station. Neil Hansen, who is the recycling coordinator for the county has noticed more steel being dumped in with the garbage. He said people don't understand that steel is still being recycled. Or they just don't think the five cent difference in the cost of dumping garbage (11 cents per pound) vs steel is worth the trouble of sorting it.

The county started charging six cents per pound for steel on July 1. Commissioners John Evans and Darcie Nielsen voted to end free steel recycling due to concerns over the $70,000 to $80,000 it was costing the county annually to dispose of the steel.

Commissioner Rhea Miller opposed the fee. She preferred to tackle the overall problems with the county's solid waste operations be creating a taxing district for funding. She made a motion in August 14 to create a taxing district . Evan said the idea of a "trust fund from taxpayers to support solid waste was ridiculous." The motion did not pass.

SWAC member George Post submitted a letter to the BOCC July 24 detailing the problems the fee is causing the Exchange on Orcas Island. He wrote:

This presents a serious problem to the Exchange. Many of the items we accept are metal or have a significant metal component. We regularly accept things like table saws, lawn mowers, furniture, plumbing and electrical fixtures, small appliances, toys and sporting goods, fencing, gates, bicycles and wood stoves that may be whole or contain usable parts. We hold them until all or most of their value is reclaimed in some way and then separate the remaining metal to be recycled. Often it is the frame or chassis, the heavy part, that is left for recycling. If we have to pay $.06/lb for all of the metal we end up recycling, we will be forced to refuse many of the goods with metal in them that people bring to us for reuse. We will no longer be able to offer the broad range of goods that people have become accustomed to finding at the Eschange. Its a simple formula: The less we take in, the less we divert from the waste stream...In this attempt to solve the chronic solid waste budget situation, the county's most successful reuse program will be penalized and diminished.

Committee chair Carolyn deRoos noted the committee had not been asked for its advice before the BOCC made its decision. She read a statement at the July 17 BOCC meeting expressing the committee's concerns. She said:

Our concern is that we believe there are additional factors which the members want to discuss, including the overall effect of a piecemeal approach to charging for recyclables... The members believe they volunteer their time willingly, and that they represent a broad range of community interests and concerns, and frankly, they were surprised that a major change in policy was not brought before the advisory committee for discussion and comment prior to adoption.

At their August 20 meeting, SWAC decided to ask the BOCC to approve an interim exemption for the steel recycling fee for non-profits that are an integral part of the county's solid waste program. The Exchange on Orcas and the Town of Friday Harbor's Thrift Shop are two such organizations. The committee will also ask the BOCC to review the policy at the end of this year.

Free steel recycling ends Sunday

posted 06/27/01
Chopping up junk vehicles and deposting the pieces in the free steel recycling bin will no longer be an option beginning Sunday (July 1). County Commissioners Darcie Nielsen and John Evans approved an end to free recycling of the metal yesterday (June 26). Residents will pay $.06 per pound ($120 per ton). Commissioner Rhea Miller opposed the move.

"I believe we are engaged in a policy of scapegoating recycling, " Miller said. "I really disagree, I think we'll seriously regret it." She would like the county to create a solid waste taxing district.

Nielsen said she was willing to look at the general fund to cover costs of recycling. Last year the county spent $275,000 for recycling. It received $52,500 for the sales of the recyclables for a net loss of $222,500. (See story below for more background information.)

"I'm not willing to lay off people in health or permits to cover recycling (costs)," said Evans. "Why would recycling be less of a heartfelt value if people had to pay a fee to do it?"

Is recycling too costly
for the county?

posted 06/19/01
Remember those math story problems from school. Try this one. Operate the county's Solid Waste Program in the black, provide no-cost recycling, repay $400,000 in debt and do it all without any funds for capital improvements needed to reduce the cost of operations. Finding an answer has proved impossible. After a heated debate Tuesday, June 19 the Board of County Commissioners may be ready to change the question.

Commissioner John Evans would take no-cost recycling out of the equation. "This thing is broken." he said. "It is bordering on malfeasance. We're still going in the wrong direction. We need to stop recycling or charge for it." He didn't favor increasing over all rates since San Juan County's garbage rates are more than twice as high as the next closest rates in the state.

Commissioner Rhea Miller is strongly opposed to eliminating recycling. She said, "I would entertain taking the solid waste program out of the enterprise system." As an enterprise fund, it must pay for itself. She favors consideration of a taxing district for solid waste.

Commissioner Darcie Nielsen noted county residents are committed to recycling due to concerns about the environment. "It needs to be taken out of enterprise and put into the general fund," she said.

Public Works Director Tom Huse told the commissioners, "It's hard to get to where we want to be because there is no way to capitalize." Since the BOCC has mandated the solid waste department must operate in the black, any capital improvement must pay for itself within the budget year.

Solid Waste manager Jon Shannon suggested ways to achieve significant savings in the recycling program during the monthly Solid Waste Advisory Committee meeting June 18. The county paid $214,662.09 to San Juan Sanitation last year to move bins from Orcas and San Juan Islands to the baler located on Lopez Island. Most of the cost was for recyclables.

According to Shannon the county could save almost all of that cost by placing balers on Orcas and San Juan Islands. Two balers would cost about $120,000 ($60,000 each). A glass crusher could be purchased for San Juan Island for about $40,000.

So far this year the county has spent more than $65,000 to move recyclables to the baler. Almost $5,000 to move glass. See the roll-off cost chart for more details. Without funds to invest in the capital improvements the roll-off costs cannot be eliminated.

Other operating efficiencies could be more easily achieved if the BOCC allowed the managers (Huse and Shannon) to set the hours the transfer stations are open, Shannon said. He would like to change the hours in order to separate the commercial haulers from the self-haulers. "It is unconscionable to have the commercial haulers waiting in line behind 10 cars bringing in aluminum cans." Being open both Saturdays and Sundays, may result in a better traffic flow for the self-haulers he said.

In the past the BOCC has set the operating hours by resolution. Miller agreed to allow the mangers more flexibility. She suggested they would still be wise to run the hours by the board for feedback.

While no other decisions were made Tuesday, free steel recycling may end soon. People are cutting up cars and placing the pieces in the steel recycling pile -- an unanticipated consequence of the newly passed junk car ordinance according to Tom Huse. Both Nielsen and Evans expressed willingness to start charging for taking steel. Shannon told SWAC $80,000 could be saved by eliminating steel recycling.

SWAC is planning on holding a series of public meetings on the solid waste program in August. Recycling and hours of operation will be discussed. No times have been set yet.

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