084 of 2006 - Landfill budget for calendar year 2007 0 06-1
B 06-4
SALT LAKE CITY ORDINANCE
No. 84 of 2006
(Adopting the Solid Waste Management Facility budget,
which has been prepared and submitted by the
Salt Lake Valley Solid Waste Management Council
for calendar year 2007, subject to specific policy directives)
AN ORDINANCE ADOPTING THE SOLID WASTE MANAGEMENT
FACILITY BUDGET, AS PREPARED AND SUBMITTED BY THE SALT LAKE
VALLEY SOLID WASTE MANAGEMENT COUNCIL, FOR CALENDAR YEAR
2007, SUBJECT TO SPECIFIC POLICY DIRECTIVES.
PREAMBLE
On November 14, 2000, Salt Lake City(the "City") and Salt Lake County (the
"County") entered into an Interlocal Cooperation Agreement (the "Agreement"), pursuant
to Title 11, Chapter 13 of the Utah Code Annotated, regarding the joint management and
operation of a Solid Waste Management Facility. The Agreement established the Salt
Lake Valley Solid Waste Management Council and provided it with authority and
responsibility relating to the operation and management of the Solid Waste Management
Facility.
Pursuant to the Agreement, all actions by the Salt Lake Valley Solid Waste
Management Council constitute recommendations to the City and the County and the
City and the County have the power to review, ratify, modify, or veto any action of the
Salt Lake Valley Solid Waste Management Council.
The Salt Lake Valley Solid Waste Management Council has prepared the attached
Solid Waste Management Facility budget for calendar year 2007 and has submitted said
attached budget to the City Council for its approval. The City Council has authority
relating to budgets and appropriation of funds and, therefore, must approve, on behalf of
the City, the Solid Waste Management Facility budget. The attached Solid Waste
Management Facility budget has been available for public inspection in the Office of the
City Recorder for at least 10 days.
The City Council fixed the time and place for a public hearing to be held on
December 12, 2006 to consider the adoption of the attached Solid Waste Management
Facility budget and ordered notice thereof be published at least seven days prior to the
hearing. Notice of said public hearing was duly published as required herein. A public
hearing to consider adoption of said Solid Waste Management Facility budget was held
on December 12, 2006, in accordance with said notice, at which hearing all interested
persons were heard for and against the estimates of revenue and expenditures in the Solid
Waste Management Facility budget.
The City Council wants to adopt the attached Solid Waste Management Facility
budget for calendar year 2007, submitted by the Salt Lake Valley Solid Waste
Management Council, subject to specific policy directives.
Be it ordained by the City Council of Salt Lake City, Utah:
SECTION 1. PURPOSE. The purpose of this Ordinance is to adopt the attached
Solid Waste Management Facility budget, prepared and submitted by the Salt Lake
Valley Solid Waste Management Council, for calendar year 2007, subject to the attached
policy directives.
SECTION 2. ADOPTION OF BUDGET. The attached Solid Waste
Management Facility budget,prepared and submitted by the Salt Lake Valley Solid
2
Waste Management Council, for calendar year 2007, is hereby adopted subject to the
attached policy directives, and subject to similar approval by the County.
SECTION 3. RESERVE THE RIGHT TO AMEND. The City reserves the right
to amend the attached Solid Waste Management Facility budget at any time, consistent
with the Agreement.
SECTION 4. PUBLIC INSPECTION. Copies of the attached Solid Waste
Management Facility budget shall be available for public inspection during regular
business hours in the Office of the City Recorder.
SECTION 5. EFFECTIVE DATE. This Ordinance shall take effect on its first
publication.
Passed by the City Council of Salt Lake City, Utah, this 12th day of December,
2006.
saLf
CHAIRPERSON
ATTEST:
APPROVED AS TO FORM
144;(40
Salt Lake City Anomeys Office
(A
Date (p
CHIEF DEPUTY CITY Cf&---- By
Transmitted to the Mayor on 12-12-06
Mayor's Action: ,` Approved. Vetoed.
• YOR
3
ATTEST:
CHIEF DEPU Y CITY REC RDER
(SEAL)
Bill No. 84 of 2006. ,t r
Published: 12-19-06 •
I:\Ordinance 06\Adopting the Solid Waste Mgmt Facility Budget-Oct 26,2006.doc
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SLVSWMF-2007
Initiative Name
(Blank) 2006-07
Initiative Number I Fiscal Year
Public Services Department (Type of Initiative)
Department I Type of Initiative
Greg Davis 535-6397
Prepared By Telephone Contact
General Fund (Fund Balance) Impact
Revenue Impact By Fund: 1st Year 2nd Year
2007 2008
General Fund
Total $0 $0
Internal Service Fund
Total $0 $0
Enterprise Fund
Salt Lake Valley Solid Waste Management Facility
Interest 2,950,000 2,950,000
Landfill Fees 10,884,000 10,884,000
Compost Sales 350,000 350,000
Salvage Sales 350,000 350,000
Interfund Charges 100,000 100,000
Other Sources 257,400 257,400
Fund Balance...(Favorable)/Unfavorable (2,627,957) (2,318,253)
Total $12,263,443 $12,573,147
Other Fund
Total 0 $0
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Staffing Impact:
Existing Number of FTE's 56.75 58.75
Change In Number of FTE's:
(1) Approved by SL County after SL City
had approved 2006 budget 6.00
(2) Proposed 2007 RIF (4.00)
Total 58.75 58.75
Description
Personnel approved from 01 Jan 06 to 31
Mar 06 (1) 4.00
A/P-Payroll (1) 1.00
Temp Employee (1) 1.00
6.00,
Personnel approved from 01 Jan 06 to 31
Mar 06 (2) (4.00)
Landfill 07 Budget fiscal note.xlsl0/26/200612:49 PM
Accounting Detail Grant # and CFDA# If Applicable:
Revenue:
Cost Center Number Object Code Number Amount
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Expenditure: 1st Year 2nd Year
2007 2008
Personal Services 3,425,398 3,596,668
Operating and Maintenance Supplies 226,500: 226,500
Charges and Services 5,537,345 5,675,779
;Capital Outlay 3,074,200, 3,074,200
Total 12,263,443' 12,573,147
Additional Accounting Details: •
(1) SLVSWMF budgets on a calendar year.
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(2) This is a co-approval budget opening for the SLVSWMF. Accounting for this facility
is handled by Salt Lake County. Therefore,cost centers and object codes are not P
applicable.
Grant Information: _
Grant funds employee positions? (Yes or No)
Is there a potential for grant to continue? (Yes or No) _
If grant is funding a position is it expected the position will
be eliminated at the end of the grant? (Yes or No)
Will grant program be complete in grant funding time frame? (Yes or No)
Will grant impact the community once the grant funds are
eliminated? (Yes or No)
Does grant duplicate services provided by private or
1Non-profit sector? (Yes or NO)
Landfill 07 Budget fiscal note.xlsl0/26/200612:49 PM
SOLID WASTE MANAGEMENT FACILITY
Fees and Charges Use/(Add To) c ,
Landfill I Compost I Salvage Interfund Other Fund
. Funding Interest Fee Sales Sales I Charges Sources Balance , Total .�
FY0506 Budget-Adopted 640,000 12,300,000 400,000 220,000 100,000 257,000 (987,077) 12,929,923 ,
FY0506 Budget-Mid year adjustments 420,000 127,789 547,789
FY0506 Budget-Amended 640,000 12,720,000 400,000 220,000 100,000 257,000 (859,288) 13,477,712
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Significant Changes N
Prior year assumed a large portion of cash reserves were
being distributed. Hence low interest. This distribution didn't
occur. Therefore interest is now much higher. 2,310,000 2,310,000
Loss of several major customers to Allied Waste's landfill (1,836,000) (1,836,000) '`
Decreased yard and wood waste being processed (50,000) (50,000)
Higher market prices for salvaged materials 130,000 130,000
Misc 400 400
Fund Balance (1,768,669) (1,768,669)
Total Changes 2,310,000 (1,836,000) (50,000) 130,000 400 (1,768,669) (1,214,269)
FY0607 Budget 2,950,000 10,884,000 350,000 350,000 100,000 257,400 (2,627,957) 12,263,443
per landfill
Personal Materials/ Charges/ Fund
Budget History FTE Services Supplies Services Capital Balance Total
FY0506 Budget-Adopted 56.75 3,352,878 231,500 7,933,345 1,412,200 12,929,923
FY0506 Budget...after SL City adopted budget but before SL
County adopted budget:
Personnel approved from 01 Jan 06 to 31 Mar 06 4.00 37,344 37,344
A/P-Payroll 1.00 45,985 45,985
Temp Employee 1.00 10,345 10,345
FY0506 Budget-Mid year adjustments 34,115 90,000 330,000 454,115
FY0506 Budget-As Amended 62.75 3,480,667 321,500 8,263,345 1,412,200 13,477,712
Significant Changes
Adjustment to Base (17,925) (1,412,200) (1,430,125)
Personnel approved from 01 Jan 06 to 31 Mar 06 (4.00) (37,344) (37,344)
Computer Supplies+Computer Components (2,500) (2,500)
Communication Equipment (5,000) (5,000)
Janitorial Supplies 3,000 3,000
Pesticides 9,000 9,000
Small Equipment,value<$1,000+Small Tools (28,500) (28,500)
Landfill Cover Material (70,000) (70,000)
Landfill Closure Costs 25,400 25,400
Contract hauling-cost/ton decreasing by$17.35 (2,890,500) (2,890,500)
Fleet maintenance (105,000) (105,000)
Fleet fuel 244,000 244,000
Regulatory fees (40,000) (40,000)
Health Department fees (90,000) (90,000)
Travel+Mileage Allowance (5,800) (5,800)
Maintenance of facilities'n grounds+office equip+s/w 56,600 56,600
Utilities 38,000 38,000
Education'n Training (2,000) (2,000)
Printing (3,000) (3,000)
Intergovernmental Charges (28,000) (28,000)
Consulting:
SLC City Engineering Support 24,600 24,600
Landfill Excavation Services (135,000) (135,000)
Landscape Consultant (1,500) (1,500)
Leachate Pond:
SLC City Engineering Consulting-Design'n Construction 186,200 186,200
Construction 724,000 724,000
Pumps 34,200 34,200
Scraper 580,000 580,000
D9T Dozer 782,000 782,000
Transport Truck 108,000 108,000
Walking Floor Trailer,qyt 2 130,000 130,000
Rolloff Truck,qty 2 230,000 230,000
Water Wagon 286,000 286,000
Loader 175,000 175,000
Rolloff Container,qty 4 25,000 25,000
Miscellaneous adjustments (1,000) (1,000)
Total Changes (4.00) (55,269) (95,000) (2,726,000) 1,662,000 (1,214,269)
FY0607 Budget 58.75 3,425,398 226,500 5,537,345 3,074,200 • 12,263,443
10/26/2006 1:05 PM
SOLID WASTE MANAGEMENT FACILITY
Bridge from County to City numbers
FY0607 Budget
Revenue
Per County 14,891,400
plus:net addition to fund balance (2,627,957)
plus:gain on sale of vehicles
Per City 12,263,443 12,263,443
Expenses
Per County 11,648,879
less:depreciation (1,807,000)
less:loss on sale of vehicles (1,000)
less: indirect costs (651,636)
add:capital 3,074,200
Per City 12,263,443 12,263,443
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10/26/2006 1:05 PM
Initiative Name:
SLVSWMF - 2007
Initiative Number:
(Blank)
Initiative Type:
(Type of Initiative)
Initiative Discussion:
Each year the Salt Lake Valley Solid Waste Management Facility (SLVSWMF), which is jointly
owned by Salt Lake County and Salt Lake City, submits its budget to Salt Lake City for its
approval. Salt Lake City last provided its approval of the SLVSWMF budget in December 2005
for calendar year 2006.
SLVSWMF has submitted its 2007 budget to Salt Lake County for approval. SLVSWMF is also
seeking the approval of the 2007 budget from Salt Lake City.
After Salt Lake City approved the 2006 SLVSWMF budget, 6 of the 16 FTEs who were laid-off as
part of the approved 2006 SLVSWMF budget were added back to the budget by Salt Lake County.
The rationale was that additional FTEs would be needed while the major changes which were
occurring at the landfill and in the waste disposal industry as a whole leveled out. Four of these FTEs
were added back for a "three-month window." The remaining two were added back without time
limitations. As part of the 2007 SLVSWMF budget, the four "three-month window" FTEs are being
eliminated.
The post Salt Lake City approval FTEs, described above, along with the traditional types of
midyear adjustments seen each year have been combined with the approved budget to form the 2006
amended SLVSWMF budget.
Revenue is proposed to match expense with a contribution being made to fund balance. Year-to-
year both revenue and expense will decrease by $1,214,269 after a contribution to fund balance of
$2,627,957. The contribution to fund balance in calendar year 2007 is budgeted to be $1,768,669
more than the amended calendar year budget for 2006.
The major changes to revenue and expense follow. All comparisons are made to the amended
2006 budget. Landfill tipping fees are budgeted to decrease by $1,836,000, driven by a net loss of
approximately 40,000 tons of waste. Two factors are influncing this net loss. During the first three
months of 2006, some of Allied Waste's Inc. customers continued to use the SLVSWMF. Once the
Allied Transfer Station opened in April 2006, most of the remaining customers no longer came to the
SLVSWMF. This pattern is expected to continue. To try and offset the tonnage loss to Allied, the
SLVSWMF is proposing to reduce the price charged on commerical loads at the Transfer Station by
22.5% or $6.95/ton.
Interest income is projected to increase by $2,310,000. Increasing interest rates account for a
portion of this increase. However, the budget for 2006 was based on an assumption that
approximately 52.5% of the cash reserves of $40M would be distributed. This distribution did not
occur. Hence the base level of cash reserves on which interest is being calculated is much higher for
2007 than it was for 2006.
•
Expense at the SLVSWMF is proposed to decrease by $1,214,269. A major component of this
decrease is a reduction of $2,890,500 in contract hauling fees. Waste from the Transfer Station is
currently hauled by Allied Waste to its landfill in Tooele County. The cost for this service is $23.85 per
ton. In a very short time that contract will be terminated and the Landfill will use Western Disposal to
haul Transfer Station waste to the City/County Landfill site at a lower cost per ton.
The proposed budget also includes an additional $244,000 for fleet fuel, a decrease of $105,000 in
fleet maintenance and an additional $56,000 for the maintenance of facilities, grounds, office
equipment and software. Landfill excavation costs are also budgeted to decrease by $135,000
because of decreased tonnage coming to the landfill. Utility costs are also budgeted to increase by
$38,000.
Materials and supplies are projected to decrease by $95,000. The largest component of this
decrease is associated with landfill closure costs. Driven by the decrease in tonnage describe above,
closure costs are projected to be $70,000 less in 2007 than was budgeted in 2006. The budget for
small tools is projected to decrease by $28,500. An offsetting increase will be the cost of pesticides
which is expected to increase to by $9,000.
Capital expense is projected to increase by $1,662,000. All items on the list fall under scheduled
replacement except for the $758,200 in cost associated with the leachate pond construction and the
pumps for the leachate pond.
It is recommended that the Council approve the SLVSWMF budget.