City of Lawrence

Public Works Department

MEMORANDUM

TO: Charles Soules, Public Works Director

FROM: Tammy Bennett, Assistant Public Works Director

CC: David L. Corliss, City Manager

DATE: September 27, 2010

RE: Next steps to complete landfill agreement for 2011

The Public Works Department recommends proceeding with formalization of the amendment to current contract with Hamm’s Quarry, adjusting the per ton rate of municipal solid waste delivered to $24.50 in 2011, with an annual increase of 3.5 percent per ton.

Background information:

An agreement between Hamm, Douglas County and the City of Lawrence has been in place since December, 1992. The current rate of $19.15 per ton for disposal of solid waste has been in effect since 1993. This includes a base rate of $18.00 per ton and taxes of $1.00 to the State of Kansas and $0.15 to Douglas and Jefferson Counties for maintenance of the access road to the landfill site.

Hamm Quarry representatives met with city staff in June, and presented to the City Commission on June 22, 2010. Hamm proposed an increase in the rate to $24.50 ($23.35 base rate and $1.15 in taxes), with a 3.5 percent increase per year beginning in 2012, with a minimum three year agreement.

Alternatives considered:

The City Manager requested a competitive price for landfill rate, per ton delivered, from Deffenbaugh Industries Inc., at a meeting July 14, 2010. Deffenbaugh owns and operates the Johnson County landfill. On September 2, 2010, Deffenbaugh provided a price quote of $17.50 per ton of municipal solid waste delivered to the Johnson County Landfill, as a one year rate. Price adjustments following one year would not exceed 3.5 percent.

Analysis of alternatives:

In August, 2010, the City of Lawrence made over 1000 trips to the landfill, depositing 6011 tons of solid waste.

Hamm’s Quarry is approximately 5 miles north of the city limits of Lawrence. The Johnson County landfill is between 20 and 30 miles to the east, depending on route. For the purpose of analysis, a common point was chosen at the Solid Waste yard, 1140 Haskell Avenue. From 1140 Haskell Avenue, Hamm’s Quarry is 6.2 miles, and the Johnson County Landfill is 23.6 miles. The roundtrip distance to Johnson County Landfill would be an increase of 35 miles per trip.

Weights ranged from one ton per load to over 13 tons per load. The average tons per trip to the landfill by type of collection vehicle are captured below:

Unit type			Tons / trip
bulk truck Average			0.96
front loader Average			9.72
hook-lift Average			1.45
rear loader Average			9.64
roll-off Average			3.01
small packer Average			3.51
Average (all collection units)			5.67

The Fleet Manager provided historical data on fleet operations for maintenance, tires, and fuel costs. Equipment operation costs average $2.73 per mile. Additional costs per trip for equipment only (operator not included) is $95.55 per roundtrip if the landfill destination were Johnson County Landfill versus Hamm’s Quarry, using 1140 Haskell as a common starting point.

City Solid Waste operations disposed of 6011 tons of waste in the landfill in August 2010. Using August 2010 as a common base and applying the 2011 proposed rates from Hamm’s Quarry and the Johnson County landfill, the City would have saved over $42,000 in landfill fees but spent over $95,000 additional costs in equipment expense. Without considering any labor costs or operational changes, using the Johnson County landfill would have cost an additional $53,000 for August 2010 data.

The savings in the per ton landfill fee are not sufficient to account for the increased operational costs, even when operator time is not included. Other operational issues that would have to be evaluated are the increased number of operators and equipment that would be required for “single haul” type operations (e.g., roll-off and hook-lift). Operators who drive roll-off and hook-lift equipment will make 5 to 7 trips to the landfill per day.

The analysis completed is based on delivery of municipal solid waste to two different landfill locations. If a transfer station were available in or near the City of Lawrence, the dollar savings per ton would not be offset so far by operational costs.

Recommendation: