TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Ryan Zink, Franchise Administrator
SUBJECT:
title
Solid waste collection service and update.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
end
ISSUE:
1) 20-gallon every-other-week (EOW) garbage service
2) Energy from Waste Facility
RECOMMENDATION:
recommendation
Information only
body
SUMMARY AND BACKGROUND:
20-Gallon Every-Other-Week Garbage Service
During the solid waste rates public hearing held October 9, 2017, Estle Harlan, the consultant for the Mid-Valley Garbage and Recycling Association (haulers), reported that the haulers would return to City Council within 3-6 months with a plan to offer 20-gallon EOW service. This service offering is in response to requests and public testimony.
Renewal of Marion County Contract with Covanta for the Energy from Waste Facility
At the same hearing on October 9, 2017, following public testimony and comments from Marion County Commissioner Janet Carlson, City Council asked to stay informed of the negotiations process for a contract between Marion County and Covanta for the operation of the Energy from Waste Facility in Brooks, Oregon.
FACTS AND FINDINGS:
20-Gallon Every-Other-Week Garbage Service
Salem haulers will offer a 20-gallon cart EOW service starting in April 2018. This service will be offered as a full-service option to include commingled recycling and mixed organics. Collection of the garbage cart will be the same week as the collection of recycling for the route. The proposed monthly rate is $20.40 in Marion County and $15.70 in Polk County, a 13 percent discount from the current adopted rate for 20-gallon cart service. Subscribers of 20-gallon EOW service will be expected to adhere to recycling standards, including all changes that may result from material bans in the international recycling markets.
Per SRC 47.099, the City Manager may establish an interim rate until a final rate has been set by City Council. During the remainder of 2018, staff will work with the haulers to review the 20-gallon EOW cart service to determine the practicability of maintaining this service. Staff will return at a later date with the results of this review, and if appropriate, will propose a final rate to be adopted through a public hearing process.
Renewal of Marion County Contract with Covanta for the Energy from Waste Facility
Prior to commencing negotiations of a new contract with Covanta, the operator of the facility that converts the County’s waste, Marion County has undertaken a comprehensive look at all components of its integrated waste management system. The County hired Greshman, Brickener and Bratton (GBB), a firm specializing in solid waste management, to lead the analysis of the system. GBB’s final report on solid waste and energy was released to the public on December 13, 2017. The report is available online at <http://www.co.marion.or.us/PW/ES/Documents/GBB%20Report.pdf>.
Among several strategies for managing the County’s waste, the report recommends that the County negotiate a new agreement with Covanta and consider developing an in-county mixed waste processing facility before expanding the Energy from Waste Facility. The technology for processing and sorting materials from waste furthers the ability to recover marketable materials from the waste stream. This option has the potential to increase the County’s recovery rate, enable capacity for the Energy from Waste for future growth, and provide flexibility to expand composting and/or other options to produce renewable energy, and build capacity for expansion of the mixed waste processing facility as needed in the future. The report suggests that a detailed financial analysis for this and other options be conducted to establish the impacts and costs to the overall system.
The County’s targeted completion date of the contract is September 2019. Negotiations will begin soon with Covanta presenting a proposal for the future operations of the facility. This proposal will be heavily influenced by the Power Purchase Agreement between PGE and Covanta. The last time electrical rates were established under the agreement, the revenue from sale of electricity fell significantly, and the lost revenue to support operations was made up through substantial increases to tipping fees. More definition around the terms and conditions of the Power Purchase Agreement is needed for Covanta to present a proposal.
RYAN ZINK
FRANCHISE ADMINISTRATOR
Attachments:
1. None.