01/28/2010: "Orcas & SJI Transfer Stations Add Friday To Closed Days"

With the drop in construction debris, less consumer garbage coming in, and the additional expense of recycling on Lopez, the operation of the transfer stations have continued to operate in the red.

The Solid Waste Advisory Committee meets Thursday 01-28-10; 11:30-1:30 at County Council Chambers) for a "Discussion & Response to Council’s Proposed Solid Waste Rate Structure & Fee Ordinance."

PW (Public Works) has decide that while waiting for the County Council to set policy on a funding source adequate to pull the department out of the financial hole their in, and one designed to allow the program to move forward with enough money to pay the bills, something had to be done.

Shannon told the Council last Tuesday (01-26-10) that operations and capital needs can be dealt with in the short run through service reductions and borrowing, so the Council can have time to agree on a sustainable means of funding the utility.

Quickest and simplest way to reduce costs is to close the gates. Service was reduced in 2009 by closing the stations on Saturdays, and on Tuesday (01-26-10) San Juan County Public Works Director Jon Shannon and Utilities Manager Ed Hale told the Council the County’s solid waste utility will be making additional cutbacks to reduce operating losses by closing transfer stations on Orcas Island and San Juan Island on Fridays and Saturdays.

Hale estimates the utility will save $80,000.00 per year by being open just five days per week, and depending on community input, the utility hopes to move to “co-mingled” recycling service on Lopez Island to save an additional $30,000.00 a year. Lopez is the only site which has recycling sorted by type of material.

The County Council, and the County Commissioners before them, have had discussions on various options for funding the solid waste program, but they have never been able to make a decision n what to do to solve the problem

Funded has been by “tipping fees” charged by weight of solid waste received, and by moving money around from one account to another, however the recent 40% drop in solid waste volume, the main source of money, is starting to force the Council to make a decision.

At Tuesday’s Council meeting, (see “Council Retreats On New Development Fees For Dumps”) Shannon said he fears that simply raising tipping fees to both make up for the shortfall and generate funds needed for capital improvements could send the utility into a “death spiral” with skyrocketing rates causing further reductions in volume until the operation is impossible to sustain.

The utility faces financial challenges in the immediate future, needing to make expensive capital improvements to meet Department of Ecology standards and also to design and construct a replacement transfer station facility on San Juan Island.

Among the potential sources of additional revenue being discussed are real estate parcel fees, “gate fees” for haulers entering the stations, fees for recycling and “hook-up”, fees for new property development, and closing the gap between self-haul and commercial waste haulers.

After hearing Shannon’s report, the Council postponed a February 9 public hearing on what was expected to be a short term funding solution, so that it can use the time to work on a comprehensive long-term funding plan.