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Gallia, Jackson, Meigs & Vinton Solid Waste Management District

Policy Committee

Minutes

6/22/11

 

The Policy Committee of the Gallia, Jackson, Meigs & Vinton Solid Waste Management District met Wednesday, June 22, 2011 p.m.

Call to Order

Executive Director, Terri Marchi, called the meeting to order @ 2:00 p.m.  

Roll Call was taken with the following members present:  Gallia County: Harold Montgomery, James Cozza, Jimmy Allen, Barb Bradley, Doug Lester, Randy Halley; Jackson County: Randy Heath, Greg Ervin, Roy Arthur, Tom Carlisle; Meigs County: Tom Anderson, Mike Gerlach, Larry Marshall, Jon Jacobs, Marilyn Anderson, John Musser; Vinton County: Mike Bledsoe, Janelle McManis, Nick Rupert (late for Roll Call), Rex Phillips, Vicki Maxwell.  Guests included: Bruce Downard and Nick Rupert, Jr. of Rumpke; LJ Stewart of Austin Powder; Jim Hall, Milton Township Trustee of Jackson County and Phil Thompson, Milton Township Trustee of Jackson County.  District Staff present were Terri Marchi, Mike Massie and Cindy Saltsman.

 

Election of Officers

Greg Ervin nominated Harold Montgomery to be Chairman, Tom Anderson seconded the motion.  Randy Heath moved the nominations be closed, James Allen seconded the motion.  All were in favor of nominations being closed.  All were in favor of Harold Montgomery being Chairman, with the exception of one no vote by Harold Montgomery.

Harold then took over the meeting and Election of Officers continued.

Tom Anderson nominated Greg Ervin as Vice Chairman, Larry Marshall seconded the motion. Randy Heath moved the nominations be closed, Jon Jacobs seconded the motion.  All were in favor of nominations being closed.  All were in favor of Greg Ervin being Vice Chairman.

Mike Bledsoe nominated Randy Heath as Secretary, Rex Phillips seconded the motion.  Jon Jacobs moved the nominations be closed, Tom Anderson seconded the motion.  All were in favor of nominations being closed.  All were in favor of Randy Heath being Secretary.

 

Old Business

Guests introduced themselves and then Minutes of 9/24/08 were reviewed.  Mike Bledsoe made a motion to accept minutes of 9/24/08, Mike Gerlach seconded the motion.  All were in favor, motion passed.

 

Terri Marchi introduced Mike Massie, Recycling Coordinator and Cindy Saltsman, Treasurer.  Larry Marshall told the Committee that Mike was very instrumental in the cleanup of the tornado last year in Meigs County.  Larry said Mike went way and above the call of duty and thanked him for it.

 

 

 

Overview

Terri Marchi gave a summary of District Overview and Status of 2008 Management Plan. (Attached as part of these minutes)

 

Financial

Cindy explained the Chart of Accounts and Line Item report was as of May and was given just for informational purposes.  No one had any questions.

 

Rumpke

In the absence of Andy Rumpke, Bruce Downard passed out a presentation packet to the Board (Attached as part of these minutes).  

In summary Rumpke wants the District to lower the fee structure from $2/$4/$2 to $1/$2/$1.  Rumpke’s stance is they will divert the out of district tonnage from the Beech Hollow landfill to other landfills if they don’t get what they are asking for.

The following questions/comments were asked/made by some of the committee members:

 

Randy Heath asked if the $760,000 Bruce quoted the District received in 2010 was the total amount or did the District receive half of that amount.  Bruce said Rumpke paid $1,500,000 and half of that was given back to them by the District.

 

Nick Rupert Sr. asked what the net cost for out of state waste and in district waste was. Bruce said $1, out district the net is $2.  Nick wanted to clarify that out of district waste was where the money is at and Bruce said that is correct.

 

Randy Heath wanted clarification on the out of state waste that comes into the landfill being Kentucky and West Virginia and not any other state.  Bruce said that is correct.

Bruce said the reason we can’t charge out of state more is because of the Interstate Commerce.

 

Harold Montgomery asked if Rumpke had a landfill in Mansfield and Georgetown and what those fees were there.  Bruce said yes they did but he did not know what the fees were.  Terri Marchi said the one in Brown County is $1.50/$3.00/$1.50.

 

Bruce said the contract expired May 17, on May 18 it was costing them $1,800 a day with a total of $460,000 a year to remain bringing the out of district tonnage to Beech Hollow.  Tom Carlisle asked if that was a loss in revenue and Bruce said it was an increase in fees.

 

Bruce said Monday, the 20th, he had to divert tons.  Bruce asked the Policy Committee to please lower the fees to $1/$2/$1.  Bruce also stated they would do everything possible to get the volume back up.

 

 

Randy Heath stated that currently up until May 17 it was $2/$4/$2 and with the rebate Rumpke got $1/$2/$1 and the Solid Waste District got $1/$2/$1.  Since May 17 the District has kept all of the $2/$4/$2.  The proposed is $1.50/$3.00/$1.50 to be sent to the Solid Waste District and Rumpke would get nothing back.  Bruce said that is correct.  Randy Heath wasn’t clear on how the lowering the fees to $1/$2/$1 would help Rumpke.

Bruce said the District would receive half of what we were sending them but the District wouldn’t have to send anything back.  Harold Montgomery said it would be a wash.  Randy said for the District it would be a loss and for Rumpke it would be a loss.  Bruce said at $1/$2/$1 they would continue operating as they have the last fifteen years.

 

Greg Ervin asked how long the contract was in place and what prompted it.  Terri said 1996, with the amendment in 2004 to pay $1/$2/$1 to Rumpke.  Cindy Saltsman said the original contract was paid out at $2.50 for the first 500 tons, $1.50 for the next 500 tons and $1.00 for tonnage of 1000.

 

Terri said that in the 2004 amendment, Todd Rumpke had indicated that the money coming back would be necessary for them to grow their company and to be competitive, as Bruce has said now.

 

Nick Rupert Sr. wanted to know if Austin Powder would still receive the same service they needed from Rumpke on Saturdays.  Bruce said he has closed the landfill on Saturdays and the night shift.  Bruce said all he would have to do is call for a pickup and Rumpke would take care of it.  Nick went on to say that he wanted assurance that Rumpke would continue picking up their cardboard and waste.  Mike Bledsoe asked Bruce if the fees were lowered to $1.50/$3.00/$1.50, would that change the working relationship between Rumpke and Austin Powder.  Bruce said he would try for it not to change.  Mike said they (Austin Powder) are in district.  Bruce said unfortunately, if he has to pull a driver in it would not be at the rate that it was.  

 

Nick Rupert Sr. also stated his concern for the individual citizen who works through the week and can’t get his mattress to a landfill during the week.  With the landfill being closed on Saturday, where will it go, over the road and who has to pay for that, the county’s do?

 

Greg Ervin asked Bruce what his Saturday totals were before he shut it down.  Bruce said around 300 tons.  Greg also asked Bruce if he made a similar presentation to the Board and Bruce said yes, the only thing the Board didn’t see was the sheet with current figures on them.

 

Larry Marshall asked why someone proposed this fee increase.  Terri said that the Board of Directors proposed a decrease not an increase.  Harold Montgomery said with after much debate, the Board recommended the fee structure be $1.50/$3.00/$1.50, with no host fee.  That’s an increase to Rumpke by 50¢/$1/50¢, about a 25 % increase.  The Board decided that there were different ways to address it, reduce the expenses or increase the revenue.  As a Policy Committee, we need to decide what kind of program we need to have for the District and what it takes to support and how to generate the revenue.

 

Randy Heath wanted to know if the change in the fee structure would affect the landfill still being there.  Bruce said in May there was 45 years capacity and as of last Friday, today there is 150 years.  Randy Heath wanted to know if the landfill would remain open.  Bruce said as the fees go up, things would slow down.

 

Greg Ervin wanted to know what the volume of the Gallia County Landfill was and Harold said it was only about 150 tons per day.

 

District Funding

Terri continued with a presentation on district funding (Attached as part of these minutes).  Terri stated that the June 9 Board meeting the Board unanimously voted to lower the fees to $1.50/$3.00/$1.50 and did not entertain a contractual agreement at this time.  

 

Randy Heath wanted to know if we changed the fees now, how long are they good for?  Terri said if we change the rate now, we will be doing what is called a revision to the fee structure which will have to go through a ratification process.  At the re-write of the Plan it can change the fees then as well.  Terri said when we do a Plan update we will have to show a budget projection thru 2028.  

Randy Heath asked Bruce if the fees are $1/$2/$1, what is the maximum Rumpke will go and Bruce said their whole business model is based on $1/$2/$1.  Bruce said that is as high as they would go.  Randy also wanted to know if the rate is $1/$2/$1, do we know how much more tonnage needs to come in to meet our financial needs.  Terri said we have not developed that number.

 

Larry Marshall wanted to know if Rumpke could give us a guarantee.  Harold Montgomery said EPA said we could not go into that kind of contractual agreement.

 

Larry Marshall wanted to know what our attorney’s response to EPA regarding no contract was.  Mike Bledsoe said he agreed with them and the District Board recommended to the Policy Committee to lower the fees to $1.50/$3.00/$1.50.

 

Randy Heath wanted to know of the commissioner’s present, if they knew that when they voted on the $1.50/$3.00/$1.50 that Rumpke was going to cut the volume at the landfill, would they still make the same recommendation?  Mike Bledsoe said he would have absolutely voted the same way.  They suspected they would pull the tonnage, more of retaliation.

 

Jon Jacobs wanted to know if they should table this right now and get further information.

 

Janelle McManis did a calculation, if you change from $1/$2/$1 to $1.50/$3.00/$1.50, which doesn’t seem like a lot, it comes to a difference of $381,000, a fifty percent fee increase; personally she said that was a lot.  Harold Montgomery questioned her calculations.  

 

Bruce Downard wanted to comment to Mr. Bledsoe.   Bruce said the pulling of the tons was not in retaliation.  When the agreement went away, he had to shut his night shift down, do away with Saturdays, and cut business to vendors.  Bruce explained that they have corporate purchasing from Cincinnati they would provide everything they needed at Beech Hollow.  He went on to say that he didn’t want to use that, he wanted to use local vendors.  Mike Bledsoe said maybe he used the wrong word there, but he had a vendor come in and complain to the Vinton County Commissioners they had your order and since the vote of last meeting you had cancelled the order.  Mike apologized by using the wrong word.  Bruce said he has to come up with $400,000 and he has to cut wherever he can cut.  Everyday day that they operated it costs them $3,000.  

Doug Lester asked with ninety employees there, how that is going to affect them?  Bruce said greatly, there will be layoffs.

 

Vicki Maxwell asked who was cutting the volume.  Bruce said they are.  Vicki said Rumpke itself is cutting the volume to their own landfill.  Bruce said that is correct but they are taking it into their other landfills.  Vicki stated that whether it was 1/2/1 or not, you would still be taking it to Brown because it was closer.  Bruce said that is not correct, at 1/2/1 they would pay the extra trucking to get it to Beech Hollow.  Vicki said if the fees were $1.50/$3.00/$1.50, you could not do that.  Bruce said that is correct.  Bruce said they win and lose bids by 25¢.  Vicki said she understood that without that contract there is no guarantee, how do we know that that volume of trash is going to come back?  She went on to ask what financially is going to bring it back.  Bruce said 1/2/1.  Vicki said if we give you what you want, 1/2/1, you will bring it back and Bruce said that is correct.  Vicki asked what do we gain, what do we get.  Bruce said if they bring more tons, you get more money.  Vicki said you choose where this volume goes, because these are your landfills, correct?  Bruce said that is correct and Vicki said she feels they are playing hardball.

 

Tom Anderson said they have new figures and recommended that the Policy Committee meet in two weeks and the Executive Board meet in a week.

 

Mike Massie wanted to make a couple of points.  #1: the concept that the amount of trash will continue to increase is not likely, according to Andy Rumpke.  Andy said previsouly to Mike and Terri nationwide garbage generation per household is reduced, recycling is increasing. Don’t assume that the 1/2/1 will allow a continued increase.  #2: The trash that comes into Beech comes primarily from transfer stations from Columbus, Circleville, Chillicothe and Lawrence County.  The bulk of the waste come from those four.  Rumpke has chosen to divert that trash from Beech to another landfill.  There is one in Mansfield, Georgetown which is in Brown County, and there are two in Kentucky.  The Columbus station is closer but they chose to bring it here.  Chillicothe is 45 miles closer, you have to travel 45 miles farther to go to Georgetown than Beech.  Bruce said that was not right.  Mike said he used MapQuest.  The Chillicothe station is 27 miles farther to Georgetown than it is Beech.  Lawrence County, they go to Kentucky, with no fees.  Those two issues, the mileage and the amount of tonnage to project.  Don’t be mislead to think that if you go 1/2/1 that

the tonnage will continue.  Andy has made it quite clear that it is going down.  Franklin County flow has been cut as well.

 

Terri wanted to clarify to Tom Anderson the reason for the different projections the Board and Policy Committee had.  The reason is because the Board met on June 9 and the 17th was when we received information that no out of district would be coming in.  We figured a reduced amount and as information came to us our projections continued to change.

 

Tom Anderson made a motion for the Policy Committee to meet in two weeks and the District Board of Directors Executive Board meet in a week.  Randy Heath seconded the motion.  Jon Jacobs asked for the amendment to the fee structure be tabled unto next meeting and Randy Heath said to add that to his second.  All were in favor of the motion with the exception of one no vote by Mike Bledsoe, who said they had a recommendation from the Board and they should follow it.

 

Greg Ervin wanted to know what the approval process would be if they lowered the fees.

Terri then explained the process:

Policy Committee adopts a resolution setting an amendment to the fee structure.

Every Board of Board of Commissioners, every legislative authority in each municipality and township has to see a copy of that resolution.

Publish a copy of that resolution and notice of time of a public hearing.

Deliver a copy to the Director of EPA, industrial, commercial and institutional generators, largest quantities of solid waste and their local trade association.

It has to be published 30 days prior to a hearing.

We have a hearing and then the Policy Committee meets and considers and revisions that may have come from the hearing.

Policy Committee then adopts the revised fee schedule.

The revised fee schedule is then sent to each Board of Commissioners, Legislative authority and each township trustees.

Within 60 days after receipt of revised fee schedule they have to either approve or disapprove it.

In order to change the fee structure you would need a majority of the County Commissioners, majority of municipal corporations and a majority of the counties.  That would be 3 of the 4 largest cities, combination of the Municipal Corporation and townships of the district of 60% of population.  

Four months would be optimistic; it would more than likely be a six month process.

 

Date of July 6, 2011 was set for the meeting @ 2:00.

 

Randy Heath made a motion to adjourn.  Mike Bledsoe said before they adjourn he wanted to get the recommendation of the Board put on the floor.  Randy Heath stated that as a part of his motion that was approved, the fee structure was tabled.  Jon Jacobs then seconded the motion to adjourn.  Policy Committee adjourned @ 4:05 p.m.

 

 

 

 

 

 

 

 

 

 

Gallia Jackson Meigs Vinton Solid Waste Management District * 1056 S. New Hampshire Avenue * Wellston, Ohio  45692 * 740-384-2164 *