City Council Minutes 2013 07 16 - Laserfiche WebLink

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City Council Meeting Minutes July 2, 2013 Page 5 of 25 with Boulder County communities and the revenue projection for recycled materials as follows: • In 2008 their recycling operations changed from a dual stream to single stream facility, which gave communities the opportunity to provide recycling curb service to their residents. The single stream process has a higher operating expense. • In 2008 the revenue derived for recycling was $5.3 million dollars and 32% was shared with Boulder County communities. • In 2009 the recession significantly reduced revenue by $1.6 million dollars and 2.5% of the revenue was shared with communities. • In 2010 the economy appeared to improve and revenues increased by $1.3 million, increasing payments to communities. • In 2011 revenues increased by another $1.2 million dollars, which increased payments to communities. • In 2012 larger payments were returned to communities in the beginning of the year and then revenues went down at the end of the year. • Thus far in 2013 there has been a very soft market for recyclables, which will result in flat gate fee payments for 2013. He explained the Boulder County Resources Conservation Division is an enterprise fund, so operations are fully funded by the sale of recyclable materials. COUNCIL COMMENT Mayor Pro Tem Dalton asked for a definition of the term "gate fee ". Mr. Callahan explained a "gate fee" is revenue paid back to the community for the delivery of the recyclable material. He explained everyone is paid the same amount. Mayor Muckle asked if it is an issue of the quality of recycled materials, which suppresses the demand, or is it the world economy. Mr. Callahan explained it is both. Their facility produces the highest quality recycled materials possible, but the market is suppressed by the world economy. Council member Loo asked if municipalities are charged for bringing recycled materials to their center. Mr. Callahan explained at this time communities are paid to bring in recycled materials. If the market goes down they may have to re- evaluate their program. Council member Loo asked if Western Disposal covers most of the City. City Manager Fleming stated an HOA can opt out of the program if they have a similar program. Council member Loo stated if everyone is not covered, heavy trash trucks damage the City streets. With respect to customer service standards, she stated residents do not have any choice in the matter and some are subsidizing events and some are not. She asked if postponing the resolution would reduce the fund balance. Public Works