Summary
To: Mayor Katica, Commissioners
From: JP Murphy, Assistant Town Manager
Date: 11/8/2016
Subject:
Title
Discussion of Pinellas County Landfill Tipping Fees
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Summary:
Pinellas County conducted a solid waste tipping fee study that indicated that there is a need for a significant increase in tipping fees at the landfill by 2030 and beyond. Key drivers to the increase are the reduction of revenue from the Purchase Power Agreement (PPA) with Duke Energy in 2024 and the need to begin budgeting for closure and post-closure care of the landfill which is currently an unfunded liability for the county.
The current tipping fee is $37.50 per ton. If left unchanged, tipping fees could drastically climb to $143.21 per ton by 2035. The county subsequently proposed three rate stabilization alternatives to the Technical Management Committee (TMC) to mitigate the impact of such a dramatic increase to its customers. The leading alternative is to gradually increase tipping fees now, so that reserves can be built up and provide continued stabilization to the tipping fee rate. An excerpt from the attached PowerPoint document shows a brief summary of the three models.
Staff will further discuss at the meeting the three alternatives and will be seeking input from the commission to pass along to our TMC representative.
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Previous Commission Action: N/A
Background/Problem Discussion: The capacity payment from the County's Power Purchase Agreement (PPA) with Duke Energy is currently the largest source of revenue for the Solid Waste Enterprise funds. The capacity payment increases 6% per year, by contract, which has offset the impact of inflation and allowed the County to maintain the tipping fee at $37.50 per ton. The PPA expires Dec 2024. Based on the current standard offer conditions (as supported by recent PPA renewals in other municipalities), the County can expect to see a significant decr...
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