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2016-368-Minutes for Meeting June 01,2016 Recorded 7/8/2016NANCYUBLANKENSHIP, COUNTY CLERKS CJ 7416.368 COMMISSIONERS' JOURNAL 07/08/2016 11:19:38 AM 01111111111111111111111 111 III 2018-388 For Recording Stamp Only Deschutes County Board of Commissioners 1300 NW Wall St., Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.ora MINUTES OF BUDGET MEETING — SOLID WASTE DEPARTMENT WEDNESDAY, JUNE 1, 2016 Allen Room, Deschutes Services Building Present were Commissioners Anthony DeBone, Alan Unger and Tammy Baney. Also present were Tom Anderson, County Administrator; Erik Kropp, Deputy County Administrator; Mike Maier, Jimm Burton and Bruce Barrett, citizen members of the Budget Committee; Wayne Lowry and Loni Burk, Finance; Timm Schimke, Solid Waste, and Phil Henderson, Public. Meeting minutes were taken by Natalie Jones. Chair Bruce Barrett opened the meeting at 10:50 a.m. Mr. Schimke gave a general overview of budget — revenues are up 8% from last year. Expenses have increased 20+%. Reasons for this include DEQ increased disposal fees, difficulty finding vendors to grind wood waste (which is not being used as a fuel source any more), the recycling market is down and costs are up, and the cost of sorting and hauling to Bend is not offset by revenues. Despite these increases, transfer reserves are about the same. Most of these accounts have expenditures each year; however, they are losing some ground in the overall balance. Timm said it is unsustainable at the current level. The group discussed the disposal statistics handout. Minutes of Budget Meeting Wednesday, Junel, 2016 Page 1 of 4 Reviewed was Exhibit "B", Revenue and Expenditure Forecasting model, for the expected life of the landfill through 2029. Timm said that in FY18-19 he expects to have to build a new cell, with 4% growth and all other aspects staying the same; the fund would go into the negative in FY18-19. Page 2 showed that with changes, they would not go negative until FY 21-22. Page 3 showed with they must have an 8% increase to avoid going negative. Page 4 showed that with 3% inflation of the average tip fee, costs could be covered. The Negus Transfer station needs to be upgraded due to use, and capital will be needed. Some improvements were added at the SW station, but just repairs were done at Negus, i.e. the flow was updated and yard debris was moved to one side. This makes up about half of their usage. Timm said that Negus is heavily used all the time and something will need to be done soon. Some money will need to be allocated to look at alternatives to filling cells. The landfill will be full in the near future and there is new technology out there that does not go into the waste stream. Timm said we will always need a landfill, but with new processes for incoming waste streams and reduced volume (by 75-80%); this could extend life of the landfill by several years. Someone asked about the last page of Exhibit "B", where the landfill could continue to FY30-31. Timm said that the last increase of fees was $5.00 in 2010. With an increase in services and with a cost increase, the landfill's life could possibly be extended. Mike asked how Deschutes County compares with other like entities. Timm said it is low. The cost is $75-$80 in Portland. Timm said that the last estimate was done in 2009, as growth was exceeding capacity. With the recession, the number was revised to 2029. With recent growth, the capacity has moved closer again. Mike was fine with a rate increase. Timm said that he had not incorporated an increase into his current budget and it would take time to implement. The gate rate could go up as early as July 1, 2016, with increases to franchise collectors on Jan 1, 2017, or a bulk change January 1 or July 1, 2017 could be implemented if Timm got an okay to move in that direction. Tammy said she would like to see numbers on this. Timm thought maybe a small increase now of $5, with another in 5 to 7years, would work. Minutes of Budget Meeting Wednesday, June1, 2016 Page 2 of 4 The group was comfortable with Timm projecting costs without a third party consultant's input. Tammy would like to ride as long as possible without an increase and look at new technologies. Timm said the last consultant laid out three increases over a 10 year period. He said they did this, and it put almost $14M in reserves. This carried them through the recession. Reserves are at a low, and an increase now would help to build those up in case of another recession in the future. Additional funds might be needed to implement new technologies as well. There may be other opportunities where our capital cost would be low. Timm is hearing more options where capital would be required, possibly $7M. Tom suggested looking at a range of items and maybe waiting for the price of gas to go up again, or have an agent of record to bring options to the County for consideration. Tammy asked about the rolling seven year contract. She said they have not done an open process since she's been here. Timm said they had never been put out to bid; they utilize the franchise ordinance and the four existing companies. He said that in the mid -80's they went to the seven-year term due to the life of equipment. If they were going to go out for bids, they would have to give notice that in seven years the bid would happen. Tammy thought we had a business responsibility to go out. Mike asked why go out for a bid when we have reasonable prices, low complaints, and good service. They thought maybe a highbred to an RFP could be used for this purpose or they could articulate why we aren't doing a bid. Tony suggested a talk regarding this, along with the three opportunities Timm suggested earlier. Mike suggested it would have to be done in cooperation with the cities of Bend, Redmond, and La Pine to have them all together in the bid. Timm said that the City of Bend has discussed it several times and the system has never been changed. Tom suggested that the County set this as a 'to do' for next year. They discussed past efforts researching the possible opening of a new site. A final discussion of a $5 increase indicated that this equates to $12/load versus $11/load. Timm suggest this would help, and they should look at this again in five years to assess needs. $5 will be put on the list for recommendation to the Board on Friday. Being no further discussion, the session ended at 11:45 a.m. Minutes of Budget Meeting Wednesday, Junel, 2016 Page 3 of 4 DATED this 6 Day of 2016 for the Deschutes County Board of Commissio rs. ATTEST SIGNATURES: 67fruA-Alu Recording Secretary Minutes of Budget Meeting Alan Unger, Chair Tammy Baney, V e Chair Anthony DeBone, Commissioner Wednesday, Junel, 2016 Page 4 of 4 BUDGET COMMITTEE AGENDA Wednesday, June 1st, 2016 9:00 AM • Reconvene the Deschutes County budget meeting 9:00 - 9:30 AM Fair and Expo Center (Funds 617-619 and 601) • Introductions • Budget discussion; Special Requests 14/428 9:30 - 10:00 AM County Assessor's Office (Fund 001-02) • Introductions • Budget discussion 10:00 - 10:15 AM Break 10:15 - 10:45 AM 10:45 - 11:45 AM 11:45 - 12:30 PM 12:30 - 1:00 PM 1:00 - 2:00 PM 2:00 - 3:00 PM 3:00 - 3:15 PM County Clerk's Office (Funds 001-05. 001-06 and 218) • Introductions • Budget discussion Solid Waste (Funds 610-614) • Introductions • Budget discussion Elected Officials Compensation Committee (Lunch - Discussion) Natural Resources Protection (Funds 326-327) • Introductions • Budget discussion Road (Funds 325. 328-340, 465) • Introductions • Budget discussion;Special Requests 14/427 Community Development (Funds 290-303) • Introductions • Budget discussion; Special Requests 14/422 Break Program Budget Tab/Page 4 / 161 4 / 131 4 / 137 4 / 185 4 / 181 4/168 4/145 Page 1 ggt c 3 c C C C d a d R 7 pW m fD gad 01 m a 0 a S V V OO M f0 W W W r�Vpp V O M 4 O Pa v VCO 0 O1 A W f0 V T00 VS008850 tO 0Opo�tO�l V +ola O (00 (0 0 W A 0 W V V A 01 0000P -'P -'50S05050.7 pp yip ....c.o. mo O W-. o 0-. 00 (0 o W V 0 f0 0 - O 07 O <0 m V -4 00 4D to o OpA� 01 yp tpn V -0.11 0 '4.1 pyp O W o W .1+ V OD t0 o V A AW V W io.0.500aorvo(�0(0�Oh 0W0wOo A 8 2 W FNOJp No a }V Of0 tp�p NN �j ppppl OD t,�pp 00 m T 0 N 0 N N A W V N pp Oso NNNN W — O O(0-�O 0vai. i0 V N 00 N 0) V 0) 01 N A VNW"y0 A -+ 0D N L N W W 0 W A N N W O O+ y+y �tl0111 OVV O G mpmy U011 Dap ODAN0O1 W+ V W O0 V OD AOOD /y3� ppp0pp�� �• (9 W A O1 U1 (0N11 A �Np N 0 O pO O I A W r T 8 j g O O W E N i 0p0� NA01T W V W V AA .)�pWp0 (T V CO0O W t A�pp 0 W 41 O '<0C eN 0Ol . 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