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Home My WebLink About06. 14-306 JULY 8, 2014 14-306 RESOLUTION (CARRIED___7-0____LOST________LAID OVER________WITHDRAWN________) PURPOSE: APPROVE WINNEBAGO COUNTY RECYCLING SURPLUS REVENUE BALLOT INITIATED BY: CITY ADMINISTRATION WHEREAS, the City of Oshkosh currently has a recycling agreement with Winnebago County; and WHEREAS, Winnebago County has asked responsible units of government with signed recycling agreements to consider disposition of surplus commodity revenue; NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the attached ballot is approved and the proper City officials are hereby authorized and directed to execute and deliver the attached to the Winnebago Solid Waste Management Board. (41-) OJHKOJH ON THE WATER MEMORANDUM TO: Honorable Mayor and Members of the Common Council FROM: David C. Patek, Director of Public Works e_{) DATE: July 1, 2014 RE: Approve Winnebago County Recycling Surplus Revenue Ballot BACKGROUND The City of Oshkosh has an agreement to deliver all recyclable materials (paper& containers) to the Winnebago County Solid Waste Management Board. Winnebago County sells this recyclable material for all municipalities involved with their program. The communities of Winnebago County are asked every year to decide how to handle this revenue. Winnebago County is requesting that this revenue be returned to the communities except for$112,265, which is needed to cover the budget deficit for the Solid Waste Management Board. ANALYSIS Winnebago County has a budget deficit because of a $322,790 debt service charge for construction of the Tri- County Single Stream Recycling Facility. If the participating municipalities don't cover this budget deficit with funding from the commodity revenue, Winnebago County will need to raise their tipping fee to cover their expenses. The City is currently able to dispose of our recyclable materials for a tipping fee of$5/ton. FISCAL IMPACT The 2014 budget anticipated a $70,000 reimbursement for recycling surplus revenue. After the $112,265 expense is allocated to all communities, Winnebago County calculated the actual revenue payment for the City of Oshkosh to be $27,874.20 for 2014. This revenue payment is significantly less than the $284,065 received in 2012 or the $71,677.31 received in 2013. Winnebago County indicated that the prices for recyclables were much less for 2013 versus 2011 or 2012. In addition, this $42,000 deficit for 2014 will need to be reviewed in conjunction with possible changes to the $20 Recycling Fee that was implemented in January. One option to cover the declining revenue from Winnebago County would be to increase the new Recycling Fee in the 2015 Operating Budget. RECOMMENDATIONS Staff recommends approval of the resolution per the recommendation from Winnebago County to accept the surplus revenue except for$112,265. Apr ved: e 0Z4114,0° Mark A. Rohloff City Manager DCP/tlt I:\Engineering\Tracy Taylor\Memos to Mayor&Common Council\2014\Approve 2014 Winnebago Co Recycling Surplus Revenue Ballot_7-1-14.docx WINNEBAGO COUNTY SOLID WASTE MANAGEMENT BOARD SIGNING MUNICIPALITY RECYCLING SURPLUS REVENUE BALLOT FOR 2013 FUNDS MAY 30, 2014 ARTICLE IX FURTHER AMENDMENTS The Winnebago County Solid Waste Management Board (Winnebago.County or County) and the Signing Municipalities agree that this initial Agreement may be further amended and/or supplemented by written agreement of both the County and Signing Municipalities representing 70% of the total population of Signing Municipalities. ARTICLE VI FUNDING B. The County shall have the right to collect any and all revenues from the sale of recycled materials processed by the County under this Agreement. 1. From the time of the County MRF's opening until December 31, 1994, said revenues from Signing Municipalities shall be applied to the cost of construction, purchase and operation for all structures, equipment and personnel required by the County to perform its obligations under the Agreement. In the event that revenues from Signing Municipality processing fees and material sales exceed the cost of program operation, the net profit shall be rebated after year's end to Municipalities signing this Agreement. Rebates shall be based upon each Municipality's actual tonnage processed during that calendar year. 2. After January 1, 1995 the processing fee per ton shall be set to reflect the anticipated cost of services provided. The County shall maintain revenue rebates from Signing Municipality material sold during the year 2013 in the amount of one hundred twelve thousand, two hundred and sixty-five dollars ($112,265.00) to avoid a 2013 recycling deficit and rebate seventy-seven thousand, three hundred and eighty-four dollars ($77,384.00) to the Signing Municipalities. Please check the appropriate box for your municipality's choice, sign and indicate individual title, date and return this ballot on or before August 1, 2014 (include a copy of your city, town or village resolution or a copy of the municipal board meeting minutes authorizing this vote). Y‹ Winnebago County shall maintain $112,265.00 of the surplus recycling revenue to avoid a 2013 County recycling deficit and rebate $77,384.00 to the Signing Municipalities based on the Municipality's actual tonnage processed and sold for year 2013. • i I Winnebago County shall refund the recycling revenue surplus of$189,649.00 to Signing Municipalities based upon each Municipality's actual tonnage processed and sold for year 2013. Signature Print Name Municipality Title Date Signed City of Oshkosh, 2014 Proposed Budget and Performance Report FUND: FUNCTION: DEPARTMENT: ACCOUNT: RECYCLING RECYCLING PUBLIC WORKS 211-0480-XXXX-XXXXX 2013 Year End 2011 Expenditures 2012 Expenditures 2013 Appropriation Estimate 2014 Proposed Budget 762,227 1,113,305 991,300 1,423,500 1,053,600 2013 Year End REVENUES 2011 Revenues 2012 Revenues 2013 Appropriation Estimate 2014 Proposed Net Levy#4102 404,700 404,700 404,700 404,700 0 Grants&Aids 220,328 238,112 238,100 238,200 238,200 Fees&Charges 84,981 94,746 110,000 98,000 159,000 Miscellaneous 118,658 284,065 100,000 71,700 70,000 Surplus Applied 0 0 0 0 0 Recycling Fee 0 0 0 0 420,000 TOTAL REVENUES: 828,667 1,021,623 852,800 812,600 887,200 Current Net 66,440 (91,682) (138,500) (610,900) (166,400) Surplus/Deficit: Ending Fund Balance: 1,003,102 911,420 260,002 300,520 134,120 2013 Fund Balance-5534,900 Designated tor Equipment Replacement/$300,520 Undesignated. 2014 Budget Variances: Fund Balance-$705,600 Designated for Equipment Replacement/$110,120 Undesignated. Maintain an effective recycling program so as to reduce the amount of solid waste going to the landfill. Mission Statement: Links to City Strategic Plan: 1 Strengthen Neighborhoods 2 Improve quality of life assets 3 4 5 Significant Accomplishments: Implemented changes to Wednesday/Thursday/Friday route schedules Provided various yard waste collection programs • Objectives to be Continue to educate the public on single stream recycling Accomplished Next Monitor collection routes to evaluate cart utilization Year: Utilize existing personnel and equipment to handle additional service areas Implement fee for Recycling Program expenses