Monday, January 2, 2012

Short History of the Solid Waste Management "Power" of the Haines Borough

When residents of the Haines Borough ratified the new consolidated homerule Haines Borough charter, they authorized the power to provide area wide solid waste management services. The charter does not demand that solid waste management services be provided by the borough; it just allows the borough to perform the service (HB Charter, Article VI: Powers).

The Charter specifically retired the Solid Waste Management Service area created by the voters of the Third Class Haines Borough in 1999. HB Charter, Article XX, Notes and References: The Solid Waste Management Service area “…will be administered under the area wide powers of the consolidated borough.” Furthermore, Transition Article (XIX) of the Charter specifically states that the Solid Waste Management Service Area “will be abolished” and powers related to the function “…will be exercised on an area wide basis by the Haines Borough.”

The Haines Borough Charter leaves no doubt that solid waste management is a legitimate area wide power of the Haines Borough. Though this is clear, the Charter is silent on exactly how the power will be exercised, with this exception: if solid waste management is to be delivered through the creation of a municipal utility, then the creation of the utility will have to be ratified by the voters (HB Charter, Article XV).


Neither the former third class Haines Borough nor the first class City of Haines ever exercised the power to provide for solid waste management through the development of a utility. The former City of Haines entered into an exclusive contract with Haines Sanitation (now Community Waste Solutions) for collection and disposal. Ordinances related to improper disposal were created to enforce utilization of the contractor’s services (collection and disposal in a privately owned landfill). Although the creation of the Solid Waste Service Area created the potential for the Borough to take over the contract with Haines Sanitation, the Third Class Borough did not assert its authority to do so. Remember, the authority to assert a power does not require that the power be asserted.


The creation of the Borough Solid Waste Management Service area in 1999 coincided with the closing of the privately operated landfill and a negotiated rate increase for collection and disposal between the City of Haines and Haines Sanitation. Haines Sanitation closed the landfill in the face of increasing regulations and the costs of meeting the regulations. Waste was exported. The rate increase was negotiated to offset the increased disposal costs. The increase in customer charges resulted in a loss of customers and revenue for the company.


The former Third Class Borough did contract with a solid waste disposal management consultant (Sound Resource Management Group, Inc.) to explore options for the structure of the newly formed Solid Waste Management Service Area. A plan was presented to the Solid Waste Management Service Area Board and the Borough Assembly mid-May, 2000. The Haines Borough Solid Waste Management Plan (i.e. The Plan) was unanimously approved as a concept June 5, 2000.


The Plan continued the paradigm of a municipal contract with an operator that specifies fees and includes incentives; enforcement based on regulations established by ordinance; export of waste with the option of the development of an incinerator or local landfill if export prices escalate excessively; implementation of residential and commercial collection programs for recycling and composting; development a half-time Borough solid waste manager position to implement the system and oversee collection, disposal and recycling/composting contracts. The Plan was to be financed by a .5% sales tax estimated to raise $177,000. The Plan was not implemented.


Fast forward to 2012: The contract between the municipality and Community Waste Solutions expired April 31, 2011. As of December 1, Community Waste Solutions once again closed the landfill due to required remediation of its leachate system by the Alaska Department of Environmental Conservation and resumed containerizing and exporting waste; closed its Fair Drive transfer station as of January 1, including its recycling station; and as of January 15, will raise commercial and residential base rates 15% plus they will add a fuel surcharge; and will no longer pick up glass from its commercial accounts.


According to Community Waste Solutions, rate increases and service reorganization (including the free recycling service) are required due to a loss of market share, rising fuel costs, and high fixed costs. Community Waste Solutions is offering a reduced rate for customers who separate their waste.


The loss of market share is attributed to the existence of a second refuse certificate holder (Acme Transfer). High fixed costs include the cost of running a DEC approved landfill. The DEC demand to remediate the landfill’s leachate system resulted in a request from Community Waste Solutions to the Haines Borough for a negotiated purchase of 5 acres; a Borough dedication of the surrounding 15 acres as a permanent buffer for the landfill; and Borough participation in financing the required leachate system remediation.

The current situation directly impacts public and private finances. There is some additional concern that the higher costs of disposal will also lead to improper burning and dumping, and thus impact the environment generally.


The impact to the municipality is two-fold: in early December 2011, the Borough was notified that the landfill was unable to receive its sewage sludge and screenings. The Borough wastewater treatment plant generates about 5 standard dump truck loads of sludge annually. “Screenings” are the non-compostable elements of the sludge. They represent a minuscule portion of the sludge but are highly toxic. Currently, the Borough is working with a sanitation engineer to design a DEC approved in-vessel compost system for its sludge. The Borough wastewater plant operator, Scott Bradford, has been experimenting with proper methods of composting sludge for years and regards the situation as a possible opportunity to officially introduce the community to this method of sludge disposal. Composted sludge can be used as a harmless but helpful soil amendment. Disposal of screenings are more technically problematical and may require upgrading this system in the sewer treatment plant.


Financially, the Borough will avoid the expense of selling its sludge to the landfill for approximately $16,000 annually, but undoubtedly incur expenses in the development of a composting system and in addressing the issue of proper handling and disposal of screenings. The Borough will also incur an increased expense of collection and disposal – along with the private sector. The Borough Chief Financial Officer, Jila Stuart, reports that under the August 1, 2011 CWS rate structure, Borough disposal costs were estimated to be $37,400 annually, not including sludge disposal. Under the new rates, Borough disposal costs are estimated to be $64,900 not separated and $55,900 if separated. Separation, then, is worth $9000.00. Ms. Stuart points out that separation is problematic since 60-75% of the Borough’s disposal fee if for trash disposal to which the public has access. She cites the example of the dumpsters at the harbor that account for 45% of the Borough’s total trash disposal costs.


The role of government is often expressed in terms of the need to provide a service that no one person can provide for him or herself. We have accepted that education, police, fire protection, roads, and ambulance and rescue services fall into that category of services. Waste disposal is clearly a public health and safety responsibility of municipal governments or – as one assembly member has said – of the group. It’s time to step up and figure out what is best for the group.

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