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Regional Waste Board Examines Options

Published Wednesday, March 13, 1996 in the Nevada County Picayune

There could be a layoff in the future for some employees at the Howard County Landfill.

This possibility was discussed at the monthly meeting of the Upper Southwest Regional Solid Waste District in Nashville Friday morning.

Joe Ball, landfill superintendent, said the landfill is experiencing cash flow problems and is about $40,000 in the red.

Ball informed the panel of county judges and mayors, which forms the district, the landfill has been receiving 15 percent to 20 percent less trash than it did at this time last year.

In addition, there is more refuse being sent to the class IV landfill instead of the class I landfill. Dumping fees are about half the price at the class IV landfill, at $13 per ton, as compared to the class I facility, $25 per ton.

Ball said the increase going to the class IV facility is 125 percent over the past year.

He told the panel the operation billed between $25,000 and $30,000 less in November and December of 1995 than during those months in 1994, and there was no $2 tipping fee in '94.

"We are getting in less than we budgeted," Ball said. "This is putting us in a bind with the money situation. The volume (of garbage coming in) is off and there have been changes in the collection systems."

The changes in collection systems is most counties have gone from the green box collection method, as required by law, to door-to-door pickup.

According to Ball, because of the door-to-door method of collection, more refuse is being put in the class IV facility which formerly went in the class I landfill.

In addition, Ball said the landfill operation has a high payroll. This is partly because state law requires all garbage be covered daily before the landfill closes down. This, Ball said, results in massive overtime for the operation's 21 employees.

"We can't stop at 5 p.m.," he said. "We have to stay until we're done, and operate within our plan. But we have no control over when the trash comes in, and have a lot of trucks coming in at the same time."

The landfill operation would be considered to be out of compliance if all garbage received was not buried daily. If the operation was found to be out of compliance, the Arkansas Department of Pollution Control and Ecology (PC&E) could levy stiff fines.

Because of the cash flow problems, Ball said he may have to eliminate one or two positions to cut down on the overtime, and combine some jobs.

He told the board the operation was successfully processing and selling the paper coming into the landfill during the summer and fall, but currently, the market's prices have dropped drastically.

According to Ball, this recycling effort has been operating at a small profit, but not enough to offset the district's budgetary shortfall.

County judges were asked if it would be all right if the district billed them twice per month until this crisis is over. Currently, all counties in the Upper Southwest region are billed monthly.

Ball said March is a bad time for the operation because it's when all the major bills come due. He said all insurance policies are due, as is the worker's compensation bills. In addition, the district has to pay for its dues and permits during March.

"This is the worst time of year for us," he said.

Workers compensation for the district runs about $45,000 annually.

The judges and mayors were informed this is only a short-term "quick fix," which should help the landfill continue paying its bills for the next two or three months.

Ball said collections should pick up after the end of April or May.

Hempstead County Judge W.E. "Buddy" Smith said if the district has to raise the costs, it will just have to do it. "We've got to operate," he said.

It was suggested to raise class IV dumping fees to $25 per ton, the same as class I fees.

This, Ball said, would solve 80 percent of the financial problems, but not all of them. He said the district could also go up $1 per ton on the class I fees to eliminate the financial difficulties.

However, he said payroll will still have to be reduced, and expenses be cut where possible based on the current waste stream flow.

Another suggestion was for the district to raise fees to $30 on class I and IV trash as a method of offsetting the financial difficulties for the long term.

However, board president Clyde Wright, Seveir County Judge, said the district would be overstepping its bounds to arbitrarily raise the dumping fees.

"We need to do all we can to maintain costs before going up," Wright said. "I hate to cut people, but sometimes you have to.

"We must show we're doing all we can in the best interest of the people to manage the money. It's easy to raise the fees."

The board agreed to return in two weeks and study the matter.

Ball said all landfills have the same inherent problem. If people recycle, as they are being asked to do, the waste stream into landfills is reduced. This, therefore, cuts down on revenue coming in.

However, there may be a silver lining in this black cloud after all.

Ball said the landfill has been contacted by Georgia Pacific asking if the district would be interested in making fuel pellets out of its garbage.

He said GP would pay roughly what the company is currently paying per ton for coal.

Another positive, he said, would be this could lead to recycling 75 percent to 80 percent of all refuse which comes in.

Georgia Pacific, Ball said, has agreed to enter into a long-term contract with the district to buy pellets or cubes it can burn. He continued, saying GP official have done some test burns and the pellets shouldn't negatively affect its air pollution permits.

One of the major drawbacks of making pellets, however, is the cost of equipment. Ball said one pellet machine costs about $400,000.

In addition, the Upper Southwest district doesn't currently generate enough garbage to fully supply GP's fuel needs.

But there could be a remedy for these situations as well, he said. The Southwest Central Regional Solid Waste District, composed of Clark, Garland and Hot Spring counties, is in the final two years of its contract with Saline County's landfill.

This district recently won a lawsuit against Saline County concerning an illegal increase in tipping fees, and, most likely, will have to find another place to dispose of its garbage.

Ball said if the Upper Southwest could convince the Southwest Central district to bring its garbage to Nashville, the Upper Southwest could then generate enough fuel pellets to supply the timber company.

Should everything work out and the Upper Southwest district get involved in making fuel pellets, Ball said a picking line would be established to remove other recyclable materials.

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