May 21, 2009 Manager's Memo

Manager's Memorandum

May 15, 2009

DATE: May 15, 2009

TO: District Policy Committee Members

FROM: Holly Christmann, Solid Waste Manager Cory R. Chadwick, Director

I. Introduction/Opening Comments

NOTICE: This memo is for the meeting to be held on May 21, 2009. The meeting will begin at 9:30 am at Hamilton County Public Health located at 250 William Howard Taft, 2nd Floor, Cincinnati, Ohio 45219.

Policy Committee Information (Agendas, Manager's Memos, Minutes, etc.) are available on the District's Website at www.hamiltoncountyrecycles.org.

II. Clerk's Report/Additions to the Agenda

A. Approval of Minutes – Minutes from the March 19, 2009 Policy Committee meeting are included as Attachment A.

B. Additions to the Agenda – Please contact Susan Schumacher at 513-946-7734 if you have items to add to the agenda.

III. District Revenue Updates/Analysis

Updates will be provided on current revenue receipts and comparisons with prior years, as included in Attachment B. Comparisons of District revenue and disposal tonnages, by quarter, are also included in Attachment B.

IV. Health Departments Update

As a result of the District’s Strategic Plan, quarterly updates on the Health Department contracts will be provided. The quarterly report summaries for Hamilton County Public Health and Cincinnati Health Department are included as Attachment C.

V. Policy Items

A. Litter Collection Program

In 2008, the Policy Committee authorized the District to spend up to $40,000 to conduct a demonstration litter collection/enforcement project through a partnership with Keep Cincinnati Beautiful and the Sheriff’s Department. The funds were used to conduct a demonstration litter collection program in the following eight communities: Golf Manor, Delhi Township, Colerain Township, Green Township, Forest Park, Mt. Healthy, Lincoln Heights, and Cheviot. In addition, District funds provide litter collection to eight Cincinnati neighborhood gateways. The City of Cincinnati and 3CDC provided funds to conduct daily litter collection in Over-the-Rhine. The program is scheduled to end July 31, 2009.

Results

The following table outlines the results of the demonstration litter collection program from July, 2008 – March, 2009:

	OTR	District-Funded*	TOTAL
Tons of Litter	124	50	174
Pounds recycled	428	135	563
Citations	7	2	9
Warning Letters	96	13	109
# reached through litter prevention	n/a	1,167	1,167
Miles Cleaned	869.3	455.2	1,324.5

*Cheviot, Colerain, Delhi, Forest Park, Golf Manor, Green Township, Lincoln Heights, Mt. Healthy, and eight Cincinnati neighborhoods

District staff is concerned about the financial impacts of continuing the litter collection program. While staff is not disputing the merits of this program, staff is not recommending that the litter collection program continue past the demonstration year for the following reasons:

For the 1st quarter of 2009, revenues have declined approximately 12% compared to 2008. With the uncertainty of when the recession will end, staff does not want to add another program at a time when it is unknown when revenues will rebound.

With the proposed State tipping fee increase, it is unknown what the impact will be on District revenues. Again, with this uncertainty, staff does not believe now is the time to add another program.

Staff is scaling back some of its current programs given revenue uncertainties. These programs include residential recycling outreach, collection program advertising, and education. It is difficult to justify funding a program that is not directly within the mission of the District when staff is scaling back programs that are directly related to the District’s mission.

Staff Recommendation: Staff does not recommend continued funding of the demonstration litter collection program.

B. State Tipping Fee Increase on Municipal Solid Waste

An increase in State tipping fees on municipal solid waste is included in Governor Strickland’s proposed budget. The proposed fee increase is $1.25/ton. The following is a breakdown of the funding:

Municipal Solid Waste Increase of $1.25/ton

$1.00/ton to Ohio EPA

$.25/ton to ODNR Soil & Water Conservation

A portion of the funds from these increases will be used to provide state matching dollars on what County Commissioners provide to Soil and Water Conservation Districts. The portion of the funds that Ohio EPA receives will be used to support 15 Ohio EPA programs including air pollution control and 401 wetlands permitting, and provide subsidies for local air and water planning agencies.

While the District understands the financial constraints the State of Ohio is facing, there are concerns with the proposed fee increase, including: impact on communities and the impact on waste flows.

Impact on Communities

The impact of this fee increase on Hamilton County political subdivisions could vary depending upon each community’s method of financing solid waste management costs. Some communities, including most townships, would see no impact on their general fund as solid waste costs are passed through, and paid, by residents.

Other communities, specifically those that either directly provide or contract for waste disposal for their residents will see a cost increase as these fees are either added to tipping fees or passed along through rate increases.

Impact on Community Recycling Programs

Assuming the fee increase is approved, there are three likely responses, assuming the community pays for waste management costs:

Absorb the fee increase while continuing to provide current programming.

Initiate efforts to take waste management and recycling costs off of the general fund and place onto local residents.

Explore options for reducing waste management costs, including expansion of waste reduction and recycling programs or elimination of such programs.

It has been suggested that an increase in the State’s tipping fee would make recycling a more attractive option compared to disposal. This could be true for industries, commercial businesses, and some communities. However, most community contracts are structured on a per household basis for collection and disposal, not a per ton basis.

Impact on Waste Flows

The District obtains virtually all of its revenue from landfill tipping fees as authorized under State law. It is possible that with the fee increase, waste which was once flowing to Hamilton County landfills could be diverted to out of state landfills. This would have an impact on District revenues.

Staff Recommendation: To the degree that it does not negatively impact other interests of the County, the District should ensure that the State legislature is informed of the impacts of the State fee increase on Hamilton County. Staff recommends that correspondence be sent to Hamilton County’s local legislative delegation detailing the following points:

While the District is cognizant of the budget constraints faced by the State of Ohio and commends the State for taking measures to reduce operating costs, the District is concerned about the local impact this fee increase will have on communities and businesses. Communities and businesses will bear the burden of the fee increase at a time when they are struggling with similar budget and financial constraints.

It should be recognized that higher State fees enhance the likelihood that waste, currently being disposed at in-District landfills, will begin to flow out-of-State. This would have revenue implications to the District.

As previously stated, the District is aware of the State’s budget constraints, however, the District is concerned that the State is funding programs with tipping fees that are not directly related to solid waste reduction or solid waste facilities. The District is concerned that a precedent is being set to fund State programs whose functions are not directly related to solid waste with landfill tipping fees.

C. District Priority Grant

Under the Solid Waste Management Plan Update, the District replaced the Reduction Assistance Grant with the District Priority Grant for communities and non-profit organizations. Under this revised grant program, the Policy Committee will identify three key solid waste management issues that will be eligible for District Priority Grant funding. Potential grantees will submit grant applications that address these key issues.

Staff has identified the following solid waste issues as potential topics for the Priority Grant: organics diversion, new, permanent residential recycling drop-offs, and recycling in public areas.

Staff Recommendation: Staff recommends the 2010 District Priority Grant address the following solid waste issues: organics diversion, new, permanent residential recycling drop-offs, and recycling in public areas.

D. Plan Update Consultant

The District's Plan Update Consultant Selection Committee interviewed three consultants on April 15th for the job of assisting the District with the update of its Solid Waste Management Plan. The three firms interviewed were: GT Environmental, Malcolm-Pirnie, and SCS Engineers.

Staff Recommendation: Staff recommends contracting with GT Environmental to assist with the Solid Waste Management Plan Update.

VI. Information/Discussion Items

A. First Quarter Performance Measures

As a result of the Strategic Planning Session, on a quarterly basis, Staff will report the results of the District’s performance measures. Attachment D provides an outline for the first quarter.

B. House Bill 1

In its Solid Waste Plan Update, the Stark-Tuscarawas-Wayne Solid Waste District enacted a rule where other Ohio counties would be permitted to ship waste to the privately-owned landfills in Stark, Wayne and Tuscarawas counties only if they equal or surpass the three counties’ recycling rate. As discussed at past Policy Committee meetings, the Hamilton County Solid Waste District does not meet the recycling standards required by Stark-Tuscarawas-Wayne (STW) Solid Waste District. In 2007, no waste from Hamilton County generators was sent to a landfill in the STW District.

The Ohio House of Representatives included an amendment to House Bill 1 to prevent STW from enacting the rule of prohibiting waste from being disposed in their counties if the county sending the waste doesn’t meet or exceed STW’s recycling rate. The amendment states that rules of a solid waste management district governing out-of-district waste apply only to county and district solid waste facilities unless the board of county commissioners or board of directors of the district submits an application to the EPA Director that demonstrates insufficient disposal capacity in the district and the Director approves the application.

Attachment E provides additional information on the House Bill 1 amendment.

C. Hamilton County Employee of the Year

The District is proud to announce that Michelle Balz was named Hamilton County Employee of the Year – Professional Achievement Award.

D. Compost Bin Sale

The District held its annual compost bin sale on Saturday, May 2nd in Anderson Township and Cheviot. In total, the District sold 1,603 compost bins.

VII. Tentative Future Agenda Items

VIII. Policy Committee Members' Comments

IX. Public Comments

X. Upcoming District Meetings

The next Policy Committee meeting is scheduled for July 16, 2009. This meeting will be held at Hamilton County Public Health, 250 William Howard Taft Road, 2nd Floor, Cincinnati, Ohio 45219 at 9:30 am.

XI. Adjournment (Target Time: 11:00 am)