MANAGER'S MEMORANDUM

DATE: August 29, 2003

TO: District Policy Committee Members

FROM: Jeffrey W. Aluotto, Solid Waste Manager, Cory R. Chadwick, Director

I. Introduction/Opening Comments

NOTICE: This memo is for the meeting to be held on September 11, 2003. This meeting will be held at 2:00 pm at the Hamilton County Department of Environmental Services, 250 William Howard Taft Road, Cincinnati, Ohio 45219.

II. Clerk's Report/Additions to the Agenda

A. Approval of Minutes - June 5, 2003

Minutes from the June 5, 2003 Policy Committee Meeting are included as Attachment A for the Policy Committee’s review and approval.

Please contact Susan Schumacher at 513-946-7734 or susan.schumacher@hamilton-co.org if you have items to add to the agenda.

III. District Revenue Updates

Updates will be provided on current revenue receipts and comparisons with prior years, as included in Attachment B.

The Finance Subcommittee met on August 22 to review the proposed 2004 Budget for the Solid Waste Management District. A copy of the minutes for that meeting are included in Attachment A. District staff constructed the proposed budget following the last meeting with the District Policy Committee. The budget is similar to past years’ budgets, from a programmatic standpoint, with a few additions. Increases in programming have been recommended in the following areas: Tire collection, e-waste collection, a mercury thermometer exchange, a home compost bin sale, and public outreach. The budget also contains $100,000 for implementation of a pilot permanent HHW collection operation and $95,000 for the Plan Update. In addition, the budget contains approximately $30,000 of contractual based increases in Health Department services and yard waste collection. A District budget, by activity, along with a formal narrative, is included as Attachment C. Please note that the chart labeled "Budgeted 2004 Program Expenditures" includes only programmatic expenditures and does not include personnel expenditures. The recommended budget totals $3,028,033.

Mr. Graham will provide a report on the Finance Subcommittee’s consideration of the budget.

Staff Recommendation: District Staff recommend that the Policy Committee adopt the budget as reviewed and approved by the Finance Subcommittee.

In addition to a review of the budget, the Finance Subcommittee discussed other issues pertaining to District finances including the amount and potential uses for District carry-over balances. The current strategy listed in the District’s Plan calls for a gradual reduction in the District’s carry-over. However, several Policy Committee members have raised the question of whether the District would benefit from certain one-time capital expenditures as a means of reducing the carry-over. This item will be open for discussion at the meeting. In addition, the amount of carry-over which the District should hold is also an item for discussion. Attachment D provides further information on the amount of the District’s carry-over balance.

Staff does not see any major regulatory hurdles which would prevent the District from making larger, capital expenditures to manage the carry-over balance - assuming such a strategy did not impact the implementation of the current Plan. Staff’s recommendation would be that if this were the desired course of action, that the expenditures be of long-term benefit to the District, from a recycling perspective, and that such expenditures assist the District with achieving its mission of reducing the waste stream. In addition, the Policy Committee should consider the resulting operating expenditures which may arise from any capital expenditure and the District’s ability to meet those new financial obligations.

Again, this item will be open for discussion at this point of the meeting.

In October, the District will hold the final two HHW collection events for 2003. The District plans on submitting an RFP for the 2004 pilot permanent collection facility in the Fall as well. In preparation for this, District staff would like to utilize the services of JAS Consultants to assist with operational issues pertaining to its HHW programming.

There are numerous complexities in the HHW business which make it different from all other aspects of solid waste management: legal requirements, operations, treatment technologies, etc. Mr. Jim Skora, of JAS, has considerable experience in HHW operations from both a public sector and private sector perspective. His point of view would be invaluable as the District determines how to continue future HHW efforts.

The Solid Waste District solicited proposals for school grants and received applications from 6 schools. Staff reviewed these applications. A summary of each is included as Attachment E. These grants are typically utilized to allow schools to better educate students regarding recycling programs by allowing them to implement and operate a program themselves.

Staff Recommendation: District staff recommends that the school grants be approved and funds distributed.

2003 marked the most competitive year ever as it relates to the District’s recycling awards. The District received applications from 6 communities and forwarded those applications to a panel of past winners to determine this year’s winners in each category. Winners will be announced at the Policy Committee meeting.

Staff Recommendation: Upon the announcement of District CARE Award winners, Staff recommends that the Policy Committee forward these winners to the Board of County Commissioners for recognition.

A. City of Cincinnati Update

City and District Staff recently appeared before the Neighborhood and Public Services Committee to present a report detailing options the City has in keeping its curbside recycling program economically viable. A copy of the report is included as Attachment F. City Staff is currently preparing an RFP for recycling services which will bid out options for recycling consistent with the recommendations provided by the District. The City is not bound to accept the results of that process, however it is a positive first step toward maintaining the recycling program.

The District recently submitted pre-proposals for ODNR Market Development Grants on behalf of four Hamilton County firms. Three of these firms have been asked, by ODNR, to submit final proposals. If the District deems these projects acceptable, final proposals must be submitted, along with a District endorsement letter, no later than October 17, 2003. The District is still in the process of evaluating the individual nature of each of these projects. These firms, and their proposed projects, are described in Attachment G. By the time of the Policy Committee meeting, District Staff should be prepared to make a recommendation on each of these.

Sue Magness will provide a brief update on the results of the Districts school education program.

The District is preparing to release an RFP for consultants to assist with the process of updating the District’s solid waste management plan. The District is required to submit an updated Plan by April, 2005.

In addition, a stakeholder discussion for municipal, village, and township administrators is being planned for the morning of November 13. The purpose of this discussion is to obtain feedback from individuals significantly affected by District strategies and programs. Another stakeholder session is being planned for early 2004 which will focus on elected officials.

Several pieces of solid waste related legislation are currently active in Columbus.

HB 61 relates to the ability for "affected communities" to receive compensation from neighboring solid waste management districts for expansions or siting of solid waste facilities in that District. District Staff has worked with the Engineering Department at Rumpke to determine that this legislation, even if enacted, would not affect Hamilton County. It was designed to affect one particular situation occurring within Ohio.

HB 259 / SB 119 relates to construction and demolition debris landfills. The proposed bills change the siting criteria for these landfills, impose a disposal fee, and add requirements for background checks and post-closure bonding for certain CDD landfills.

In addition, Nancy Hollister has convened a solid waste study committee to look at various aspects of HB 592, Ohio’s solid waste legislation. The Committee is made up solely of the members of the House Energy and Environment Committee. Guests are invited to make presentations as desired by the Committee. Thus far, representatives from ODNR, OEPA, CCAO, and several solid waste management districts have made presentations. The purpose of the committee seems to be a desire, on the part of Rep. Hollister, to educate her committee members on the intricacies of HB 592. Issues discussed, to this point, include interstate waste flows, the history of HB 592, and ways to encourage increased recycling.

Upcoming District Events (Attachment H-click links below)

Resource Management Seminar - Geared toward business and industry. The focus of the seminar is to explore innovative contracting techniques available to industry to reduce waste generation, increase recycling and lower waste management costs. It will be held from 11:00 am until 4:00 pm on September 19 at TechSolve.

High Performance Schools Seminar/Daylighting Seminar - Targeted at those interested in exploring the elements of green building and green design in educational institutions and how those concepts can translate to improved student performance. Both seminars will be held at TechSolve from 8:00 am until 5:00 pm on September 24 and October 7, 2003.

Household Hazardous Waste Collection Events - October 18 at Winton Woods. October 25 at Coney Island.

Included as Attachment I is the most recent information received regarding ODNR’s statewide waste characterization study. The District is still awaiting additional tables which, we understand, will further break out some of the materials observed during the project (computers, furniture, paint/oil, etc.).

VII. Policy Committee Members' Comments

The next regularly scheduled Policy Committee meeting will be at 2:00 pm on November 13, 2003 at the Hamilton County Department of Environmental Services, 250 William Howard Taft Road, Cincinnati, Ohio 45219.

X. Adjournment (Target Time: 3:30 pm)