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Landfill tonnage drops off

By BRIAN LEAHY
of The Gazette
The recent sale of LB Trucking to a Superior Services Inc. hasn't quite pulled the rug out from under the Portage County Solid Waste Department, but it has knocked the department off balance.

"It's a hard time for the department with a lot of delicate issues to deal with," said county Solid Waste Administrator Gene Edwards. "I really think the (Solid Waste Management) board and department are facing some tough choices in the next couple of months."

Unlike LB Trucking, Superior Services has its own landfill. Instead of taking waste to and paying tipping fees at the Portage County landfill, Superior Services been sending its trucks to its Cranberry Creek landfill in Wisconsin Rapids.

The tipping fees paid at the county landfill pay for the bulk of the department's operation, which the county operates as an enterprise fund. User fees and grants fund the department, not property taxes.

Based on the first three weeks in January, it looks like tonnage at the county landfill could drop between 15,000 to 17,000 tons this year, Edwards said. At an average tipping fee of $41 per ton, the tonnage reduction would cause a revenue loss of between $650,000 and $700,000.

Not all the revenues turn into profit. Costs at the landfill would drop as tonnage drops, but because of the economies of scale, not as fast as the revenues, Edwards said.

"If the tonnage does not go down further (than currently projected), my perception is that the landfill could continue to operate cost effectively at the reduced tonnage," Edwards said.

The county Solid Waste Management Board was scheduled to meet in a closed session Thursday, Jan. 25, to discuss competitive issues related to the sale of LB Trucking and the conduct of the business of the county landfill. After returning to open session, it may take action.

That crucial meeting could determine the future direction of the department, Edwards said.

Edwards hopes the board will give him some leeway allowing him to go out and recapture the waste now leaving the county.

With the sale of LB Trucking, that basically leaves Deluxe Disposal, the city of Stevens Point and a few smaller haulers taking waste to the landfill, Edwards said. A couple of private businesses have indicated they are interested in now hauling waste, which may fill a niche. Individuals, like those doing remodeling or construction projects, that take pickup truck or trailer loads to the landfill amount to 7 to 9 percent of the landfill's business.

On a positive note, the department has had "extremely good years" financially the past two or three years, Edwards said.

"We are in good condition going into this problem time," Edwards said. "At least we are on firm ground to begin with and have some room to move around."

Another item that will need to be addressed is the operation of the county's Material Recovery Facility, Edwards said. LB Trucking had the operating contract, which runs out in a year. Superior could continue to operate the MRF. The contract also gives the board the option to find a new operator.

In preliminary discussions with Superior Services, it has indicated it may dramatically increase the out-of-county recyclables processed at the MRF, Edwards said. Last year, LB processed 450 tons from outside the county and paid the department a fee for the out-of-county materials. Superior Services has indicated it that 3,500 to 4,000 tons are possible this year, but it doesn't want to pay the out-of-county fee. There's also the potential Superior Services could take the recyclables it collects somewhere else.

The tipping fee collected at the landfill has been used to fund the landfill and other parts of the county's comprehensive solid waste management program - recycling, household hazardous waste and sharps (medical needle) disposal programs.

To pay for those programs, the tipping fee has been increased $5-7 a ton, so it is "artificially high" when compared to the tipping fees charged by private companies, Edwards said. Alternative ways to fund the recycling, sharps and household hazardous waste programs might be needed.

"I hate to say this, the most likely source of alternative funding is the property tax," Edwards said.



	Landfill tonnage drops off By BRIAN LEAHY of The Gazette The recent sale of LB Trucking to a Superior Services Inc. hasn't quite pulled the rug out from under the Portage County Solid Waste Department, but it has knocked the department off balance. "It's a hard time for the department with a lot of delicate issues to deal with," said county Solid Waste Administrator Gene Edwards. "I really think the (Solid Waste Management) board and department are facing some tough choices in the next couple of months." Unlike LB Trucking, Superior Services has its own landfill. Instead of taking waste to and paying tipping fees at the Portage County landfill, Superior Services been sending its trucks to its Cranberry Creek landfill in Wisconsin Rapids. The tipping fees paid at the county landfill pay for the bulk of the department's operation, which the county operates as an enterprise fund. User fees and grants fund the department, not property taxes. Based on the first three weeks in January, it looks like tonnage at the county landfill could drop between 15,000 to 17,000 tons this year, Edwards said. At an average tipping fee of $41 per ton, the tonnage reduction would cause a revenue loss of between $650,000 and $700,000. Not all the revenues turn into profit. Costs at the landfill would drop as tonnage drops, but because of the economies of scale, not as fast as the revenues, Edwards said. "If the tonnage does not go down further (than currently projected), my perception is that the landfill could continue to operate cost effectively at the reduced tonnage," Edwards said. The county Solid Waste Management Board was scheduled to meet in a closed session Thursday, Jan. 25, to discuss competitive issues related to the sale of LB Trucking and the conduct of the business of the county landfill. After returning to open session, it may take action. That crucial meeting could determine the future direction of the department, Edwards said. Edwards hopes the board will give him some leeway allowing him to go out and recapture the waste now leaving the county. With the sale of LB Trucking, that basically leaves Deluxe Disposal, the city of Stevens Point and a few smaller haulers taking waste to the landfill, Edwards said. A couple of private businesses have indicated they are interested in now hauling waste, which may fill a niche. Individuals, like those doing remodeling or construction projects, that take pickup truck or trailer loads to the landfill amount to 7 to 9 percent of the landfill's business. On a positive note, the department has had "extremely good years" financially the past two or three years, Edwards said. "We are in good condition going into this problem time," Edwards said. "At least we are on firm ground to begin with and have some room to move around." Another item that will need to be addressed is the operation of the county's Material Recovery Facility, Edwards said. LB Trucking had the operating contract, which runs out in a year. Superior could continue to operate the MRF. The contract also gives the board the option to find a new operator. In preliminary discussions with Superior Services, it has indicated it may dramatically increase the out-of-county recyclables processed at the MRF, Edwards said. Last year, LB processed 450 tons from outside the county and paid the department a fee for the out-of-county materials. Superior Services has indicated it that 3,500 to 4,000 tons are possible this year, but it doesn't want to pay the out-of-county fee. There's also the potential Superior Services could take the recyclables it collects somewhere else. The tipping fee collected at the landfill has been used to fund the landfill and other parts of the county's comprehensive solid waste management program - recycling, household hazardous waste and sharps (medical needle) disposal programs. To pay for those programs, the tipping fee has been increased $5-7 a ton, so it is "artificially high" when compared to the tipping fees charged by private companies, Edwards said. Alternative ways to fund the recycling, sharps and household hazardous waste programs might be needed. "I hate to say this, the most likely source of alternative funding is the property tax," Edwards said.