Minutes 03/26/2013 - Laserfiche WebLink

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March 26, 2013 Background: • The City of Portsmouth provided curbside recycling to citizens from October of 1990 -March of 2003. The recycling program was offered through the Southeaster Public Service Authority (SPSA). • Due to budget issues the curbside recycling program was eliminated and replaced by drop-off recycling sites as part of the FY-04 budget. • With the exception of the recycled materials from drop-off sites and yard wastes, almost all of the City's residential waste stream is processed at the Refuse Derived Fuel (RDF) plant at $125/ton. • Since the elimination of the original curbside recycling program, the recycling industry has made improvements to technology and materials processing. These improvements have lowered the operating costs for a comprehensive recycling program, making it more cost-effective to divert waste from the RDF plant. • This proposal capitalizes on the industry improvements and cost-saving opportunity with a bold new recycling program that will enhance curbside service to a new level and divert solid waste streams for the benefit of our environment and longevity of our landfill. Discussion: • Implementation of a bi-weekly, curbside recycling program requires the following capital outlays: o two automated trash trucks and one rear loader at a total cost of $710,000. 0 35,000 90-gallon curbside recycling containers that will be provided to each resident and business that pay refuse fees. The cost of the containers will be $1, 800, 000. • The Waste Management Unrestricted Net Assets has a balance of almost $4 million. In addition, almost $6.2 million of fund assets are set aside for future landfill closure costs, based on an expected remaining life of 32.8 years. The primary source of Fund revenues is charges for services. The proposed ordinance appropriates $2.5 million from the Fund for start-up capital costs. Implementing a recycling program will extend the life of the landfill, which will reduce the needed annual set-aside for landfill closure costs in the future. • The cash-funding of start-up equipment from the Waste Management Fund avoids debt service expense. • The operating cost savings from the diverted waste stream at $125/ton will cover both the operating costs of the expanded recycling program and ongoing capital costs. • A comprehensive recycling plan will increase the life expectancy of the Craney Island landfill. • There will be no increase in the cost of service to residents. • Recycling helps improve our environment by decreasing the City's carbon footprint. Financial Impact • The net impact on the operating budget will be $0. Recommended Action: • Adoption of the ordinance. Vision Principle: Change and New Directions. 1. Luke McCoy, 340 Canterbury Drive, spoke in support of this item. 2. Mark Geduldig-Yatrofsky, P. O. Box 50141, spoke in support of this item. 3. Joe Benedetto III, 4189 White Acres Road, VA Beach, spoke in support of this item. 4. Pat Simons, 801 Mimosa Road, spoke in opposition to this item. 5. Jake Erickson, 623 London Street, spoke in support of this item. Motion by Mr. Moody, and seconded by Mr. Meeks, to adopt the following ordinance, and was adopted by the following vote: