Memorandum

City of Lawrence

Department of Public Works

TO:	David L. Corliss, City Manager
FROM:	Cynthia Wagner, Assistant City Manager
CC:	Casey Toomay, Budget Manager Charles Soules, Public Works Director Tammy Bennett, Assistant Public Works Director
DATE:	June 15,2010
RE:	Solid Waste Budget – Landfill Rates

On June 9, 2010, staff from the City Manager’s Office and Public Works Department, along with County Administrator Craig Weinaug, met with representatives of Hamm Quarry, Inc. to receive a proposal from Hamm regarding landfill rates.

An agreement between Hamm, Douglas County and the City of Lawrence has been in place since December, 1992.  The current rate of $19.15 per ton for disposal of solid waste has been in effect since 1993.  This includes a base rate of $18.00 per ton and taxes of $1.00 to the State of Kansas and $0.15 to Douglas and Jefferson Counties for maintenance of the access road to the landfill site.

On Wednesday, Hamm proposed an increase in the rate to $24.50 ($23.35 base rate and $1.15 in taxes).  This represents an increase of 27.9% over the current rate of $19.15. 

Staff had developed a balanced 2011 solid waste budget which anticipated a 10% increase in landfill costs for 2011.  This budget includes a reduction in staffing levels, delay in purchasing some equipment and includes an increase in solid waste rates of 4%.  Additional increases to the landfill rates would have an impact on the rates charged solid waste customers. 

Discussions regarding the landfill rate and impact on the budget and solid waste rates continue.  Representatives of Hamm Quarry, Inc. will present information to the City Commission regarding their proposed landfill rate at the June 22 City Commission meeting.  The recommended solid waste budget will be adjusted as necessary to reflect these negotiations and City Commission direction.

Staff estimates that if the full landfill rate increase is applied for 2011, a rate increase of 7.5% would be required.