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HomeMy WebLinkAboutItem 12 Correspondence_Sanipac public comment letter - updated 11-1-23 **11/1/23 Update: Table on page 3 updated per Lane County Staff request for additional information showing % increase per month to total waste bill, page 4 added to show summary of page 3 table by customer type, and correction on table showing 33% discount on tip fee for non-profit.*** September 25, 2023 Lane County Board of Commissioners 125 E 8th Ave Eugene, OR 97401 Dear Lane County Commissioners, This letter is to express our concerns over the proposed Integrated Materials Recovery Facility (IMRF) for Lane County. Specifically, we believe this project will create significant impacts to garbage rate payers throughout the area and could be a substantial risk for the County given current solid waste and recycling market conditions. Regarding the impacts to garbage rate payers, we have attached a spreadsheet providing examples of the price impacts to local businesses as well as residents. These examples show the monthly and yearly increases on garbage rates after six years that will be exclusively due to the proposed IMRF. (We have already factored out the impact of disposal fees should the County continue only applying CPI increases, based on a 2.6% CPI per year – the average of the last 10 years.) These numbers are only factoring in the proposed tip fee (aka: per ton disposal fee) increase at the landfill (11% for 4 years, then 8%, then 5%), and do not account for other unforeseen costs. (For example, the Recycling Modernization Act’s funding amounts are still to be determined and will not be known until well into next year. Additionally, the cost of the facility itself is now $135 million as compared to the submitted RFP bid of $65 million.) Additionally, we understand Lane County Waste Management has other large projects on their agenda that could increase disposal fees (and thus garbage rates) even more. These projects include moving/renovating the Glenwood Transfer Site ($50 million), construction for the Cottage Grove Transfer Site ($11 million), and installation of a leachate pipeline from the landfill ($25 million.) We believe the leachate pipeline bears specific urgency as approximately 25-million gallons of leachate are transported annually using an average of 10 to 12 truck trips per day. Aside from the environmental footprint of the transportation is the potential risk for just one truck to have a spill of this liquid into the environment. Regarding the environmental benefit of sending recyclable materials north vs. to a processor in Lane County, it should be clarified this benefit is likely limited. Once materials are sorted at the proposed facility here, they will be baled and shipped out of the area for sale/further processing. This is in effect no different than baling the recycling here and shipping the bales of mixed recycling out of the area. Several years ago, we invested over $2 million on a baler and recycle sorting machinery at our EcoSort facility in Springfield and have been doing just that: baling mixed recycling before transporting it to increase efficiency and reduce environmental impact. Additionally, International Paper in Springfield and Garten Services (a non-profit employing developmentally disabled adults with a presence in Lane Couty) in Salem already accept and process the majority of the area’s recycling. These locations are south of the Portland area. In closing, we believe there are other opportunities for the County to increase its already highest-in-the state diversion levels. We would be happy to discuss with staff further how to use already existing infrastructure and businesses invested in recycling in the area to achieve their goals, with low risk to the County, and little or no impact to rate payers. Sincerely, Chris Kjar District Manager Sanipac Inc. DISPOSAL INCREASED COSTS EXCLUSIVELY BECAUSE OF IMRF AFTER 6 YEARS (Using 25lbs per 35 gallon cart and 125lbs per cubic yard for commercial waste) Actual Businesses in Lane County: ACCOUNT NAME Increase per month:Increase per year:Total waste bill per month: New waste bill (using only impact of IMRF)% increase Large Non-Profit (with 33% discount) $6,655.55 $79,866.56 $20,054.35 $26,709.90 33.19% Large construction project 2 $3,296.23 $39,554.73 $9,761.17 $13,057.40 33.77% Large Construction project 1 $5,342.18 $64,106.15 $15,408.31 $20,750.49 34.67% Large apartment complex 3 $411.47 $4,937.64 $2,805.96 $3,217.43 14.66% Large apartment complex 2 $534.92 $6,419.04 $3,848.56 $4,383.48 13.90% Large apartment complex 1 $1,289.29 $15,471.48 $9,024.80 $10,314.09 14.29% Industrial business 5 $2,557.82 $30,693.84 $12,747.66 $15,305.48 20.07% Industrial business 4 $3,789.34 $45,472.12 $11,714.00 $15,503.34 32.35% Industrial business 3 $4,114.20 $49,370.43 $11,325.02 $15,439.22 36.33% Industrial business 2 $4,169.95 $50,039.40 $13,578.93 $17,748.88 30.71% Industrial business 1 $6,288.37 $75,460.49 $21,702.10 $27,990.47 28.98% Hospital 2 $1,851.34 $22,216.08 $5,838.96 $7,690.30 31.71% Hospital 1 $5,218.01 $62,616.15 $15,871.23 $21,089.24 32.88% Area High School 2 $589.78 $7,077.36 $3,076.25 $3,666.03 19.17% Area High School 1 $438.91 $5,266.92 $2,022.74 $2,461.65 21.70% Common commercial services: (125lbs/yard)Increase per month:Increase per year:Waste Bill using City of Eugene Rates: New waste bill (using only impact of IMRF)% increase Sandwich/Coffee Shop: 3yd x 1/week $40.10 $481.23 $275.31 $315.41 14.57% Restaurant: (4yd x 2/week) $109.73 $1,316.72 $723.11 $832.84 15.17% Apartment Complex: (8-4yd x 1/week) $438.91 $5,266.92 $2,659.08 $3,097.99 16.51% Residential: (25 lbs per 35 gallon) Increase per month:Increase per year:Waste Bill using City of Eugene Rates: New waste bill (using only impact of IMRF)% increase 35 gallon x 1/week $2.74 $32.88 $26.15 $28.89 10.48% 65 gallon x 1/week $5.09 $61.08 $45.35 $50.44 11.22% 95 gallon x 1/week $7.45 $89.40 $55.96 $63.41 13.31% Using only impact of IMRF Roll off (construction / home work)Waste Bill using City of Eugene Rates: New Waste bill % increase 1 - haul at 2.6 tons $402.51 $534.28 32.74% Increase on disposal $131.77 Using only impact of IMRF **Table below updated 11/1/23 per Lane County Staff request for additional information showing % increase per month to total waste bill after 6 years due exclusively to IMRF, and correction showing 33% discount on tip fee for non-profit.*** $$$ Increase on each customer’s yearly trash bill exclusively due to IMRF % Increase on each customer’s yearly trash bill exclusively due to IMRF Average increases to customer’s monthly bill by sector from table (exclusively due to IMRF after 6 years): Residential: Commercial: Construction, Industrial, Large Commercial, Home Cleanout: 13.90% - 21.70% Increase per month on trash bill per business 20.07%-36.33% Increase per month on trash bill per construction job, industrial or large commercial customer, or home cleanout box. 10.48% - 13.31% Increase per month on trash bill per household $50.68 per ton increase at landfill (+55% from current per ton rate) after 6 years exclusively due to IMRF 2.6% = average of past 10 years CPI used for calculations