LAKEPORT — Lake County Public Services Department representatives discussed with the Lake County Board of Supervisors (BOS) on Tuesday several options available to help the county cover an anticipated $500,000 deficit from the Eastlake Landfill.
The options presented by Public Services Director Kim Clymire and deputy director Caroline Chavez included raising the landfill gate fees and importing waste from Ukiah.
The BOS ultimately took no action regarding the staff recommendations after a two-hour discussion at the Lake County Courthouse, instead deciding to continue the issues to the May 24 regular meeting.
Chavez told the BOS that the landfill has seen a 25-percent decrease in annual tonnage received since 2006, resulting in significant drops in revenue.
The effects of the recession as well as increased diversion and recycling efforts have contributed to the revenue decrease, which has resulted in the budget shortfall, Chavez said.
As a result, the department has been forced to investigate options to help cover the costs of landfill expenses, Chavez said.
One short-term option would be entering into a contract to import solid waste from Ukiah (about three trucks worth of pre-sorted waste per day). It would be a five-year contract and with the tonnage fee structure, it could result in $850,000 annually beginning in 2012.
A gradual gate-fee increase structure would accompany the import plan, featuring a 16-percent increase beginning July 1 and 6-percent increases for each of the following three years.
The franchise haulers would pass the gate fee increases to their residential and commercial customers.
Under the import structure, the haulers for the unincorporated county could charge as much as 50 cents more per month to residential customers, Chavez said.
The revenue generated from the importation would allow the department to cover expense costs and add money to reserves needed to fund capital improvements, such as developing an expansion plan for the landfill, which is currently 15 years away from maximum capacity, Clymire said.
Several Supervisors and members of the public argued against import, with some wanting to reserve the landfill for county residents and others suggesting that importing materials would be taking a step away from an overarching goal of reducing waste going into landfills.
The second option presented to the BOS would result in a 39-percent increase of gate fees beginning July 1, to cover the budget shortfall for the upcoming fiscal year.
The pass-through rate to residential customers could be less than $1 monthly, according to Chavez.
Chavez told the BOS that finding ways to increase revenue would be a more feasible way of addressing the shortfall rather than reducing expenses, which could occur by reducing landfill hours or eliminating subsidized recycling programs.
Such reductions could result in increased illegal dumping or unsafe personal accumulation, Chavez said.
The BOS indicated its opposition to importation when a motion introduced by District 5 Supervisor Rob Brown to approve the import died because of lack of a second.
District 4 Supervisor Anthony Farrington asked Clymire and Chavez to present additional information regarding operational savings and revenue sources in light of the lack of support for Brown”s motion.
Brown also asked whether the department had estimated the potential gate fee increases for future years, should the 39-percent increase for the 2011-12 fiscal year not provide the necessary funding.
The BOS opted not to make a final decision about the items related to the gate fee increases and associated importation plan, continuing the issues to May 24 at 1:30 p.m.
The BOS will also discuss with Public Services on May 24 whether to implement a quarterly variable fuel surcharge on curbside service rates. That issue had been scheduled for discussion Tuesday but was rescheduled to trail the gate fee items.
Contact Jeremy Walsh at jwalsh@record-bee.com or call him at 263-5636, ext. 37.
